Archive for the ‘Biblical Economics & Money’ Category

New Exchange System replacing the Euro

Tuesday, April 17th, 2012

We should pay close attention to what the average town is doing in Greece.  They have been decimated by the previous “borrow and spend” economy.  They have returned to a system that worked in the old days: bartering.  It now uses a computer system to track it.

http://www.bbc.co.uk/news/business-17686384

Hmmm!  Selah!

A Call to Unity

Sunday, April 8th, 2012

We believe that now is the time to come together in unity.  We are in the midst of building a website that will allow interested brethren to join us in moving toward unity.  You will be able to identify yourself and provide a list of gifts and your calling as well as other personal information and resources that will allow us to facilitate the manifestation of various aspects of the Kingdom.  We only do this in response to what we have heard Our Heavenly Father direct us to do.

As the resources come forth, we expect to deploy those resources in a productive manner.  Each of us has been prepared for such a time as this.  We have been trained and directed by Our Heavenly Father in the various vocations, gifts, and callings to supply the needs of the Body of Christ.  Deep down in our spirit we know that there is more to do than what we have been doing in the past.  Some of us have local callings, some in the national arena, and some internationally.  Some have tangible callings, some intangible.  Each calling is important.

When the 153 fish were summoned to be eaten, they were brought forth in a net.  Likewise, we will utilize a “net” of a global nature.

A little history: Last November I was minding my own business and in a simplification process.  I wanted to consolidate servers for the business.  I could upgrade an existing server and eliminate an older server thus reducing hardware maintenance cost.  The upgraded server would be more than adequate for what I was doing.  Simplification and reduction of costs made pure business sense.  Our Heavenly Father intervened and told me to buy a new server rather than upgrade the old one.  The new server was 20 times the cost and 400 times the speed.  I knew then that HE had other plans.  It became clear that there would be an activation of some type to come forth soon.  As it turns out, the development of a Kingdom Resource database is at hand.

There are many around the world who are called to bring forth the Kingdom.  It is now time to “connect the dots”.  Just as Gideon made the call to overcome strife and confusion, we will be making the call.  We expect to have the website operational in less than 90 days.  You will be able to sign up as an interested individual to become a part of this calling to bring forth the Kingdom.  Do we know all the details?  No, Our Heavenly Father will provide those details as we move forward.  I would expect Kingdom Enterprises to come forth with the resources at hand.  I would expect “Kingdom healthcare”’ to materialize.  I would expect a ministry infrastructure to come forth that preaches the fullness of the message of Truth in Love.  I would expect us to be known by our ministry to others rather than building another aspect man’s attempt of “Christiandom”.

We have reserved the URL name of unity153.net.  We are in the midst of building the database for capturing the information.  We will walk this out as we are given revelation.  I expect to have the secure site up by as early as June 1st.  We use world class servers in a world class secure server site.  Thy Kingdom come, Thy Will be done!

Honest Money

Thursday, April 5th, 2012

Gold and silver represent honest money.  It puts value in the hands of the person who generates the value the money represents.  In the current electronic system, money is stored by a system that can manipulate its value.  This lends itself to dishonesty.  If you work hard and save your money, you want your savings to represent the productivity of your labor.  In the current electronic system, the value of your savings is diluted by the excess printing of money.  Inflation eats away at your savings and the productivity it represents is transferred out of your control into the hands of the central bankers.  In turn, they enrich selected banks, government programs, and others who have found favor with them, all at your expense.  This system becomes dishonest as they encourage the transfer of wealth.  We are to love thy neighbor as ourselves.  Can anyone honestly say that this transfer of wealth is an act of Love?

By eliminating gold and silver as money, the central bankers have taken control of the monetary system.  Can they really know what is best for me?  Do they really care about my future, my retirement, or the inheritance I want to leave my loved ones?  They coin the term “greater good” to justify their actions.  Often it means for their own “greater good”.

Gold and silver place value in the hands of the people and decentralizes control of value.  This is a good thing.  It allows individuals to make decisions in their own best interest without any interference from those who know nothing about their situation.  What happens if the central bank makes a mistake in the handling of the monetary system?  If individuals have their value in their own pockets, they are protected from human error.

Honest money eliminates exchange rate issue with other countries.  In a recent trip to Australia, I was in sticker shock of the cost of a meal.  In terms of U.S. Dollars, an Aussie lunch was roughly 30% higher than its American equivalent.  With honest money, sticker shock would be a thing of the past.  Once ounce of silver has the same value around the world.

Banks would become depositories of gold and silver and could act as settlement facilities or clearinghouses for trade.  A transaction fee could be developed to cover the cost of acting as a depository for excess gold and silver beyond the working capital needed for day to day exchange.

Honest money will reemerge once the current system has collapsed.  Obviously I would prefer an orderly conversion from the current system to a bimetallic system.  I just don’t think the current debt-ridden system can sustain itself much longer.  Its days are numbered.  Only Our Heavenly Father knows when the inflection point will occur.  Until then, stay liquid, stay out of debt, and stay in prayer for guidance.

The Current Depression

Wednesday, April 4th, 2012

In 1968, the U.S. has $1 Trillion in debt.  Today the U.S. debt is now estimated at $50 Trillion.  Money had gold backing back in 1968 but today it is only a credit instrument, no different than a Treasury Bond.  Gold restrained credit from being created and minimized bad investment decisions since there was a limit on what could be lent.  With a restriction in lending, only the best opportunities would be funded.  Risk was therefore minimized by the lender.  Borrowers had to qualify and their projects had to prove they could cash flow the loan.

Debt and credit are two sides of the same coin.  One person has an asset and the other person has the offsetting liability.  The dramatic expansion of credit caused the strong pace of globalization.  The financial sector has become the largest borrower within the U.S. debt structure.  In 1945, it accounted for 1%.  Now it accounts for over 30%.  In the 1950’s the U.S. was a manufacturing based economy but now we are a service-based economy.  China now has many of our manufacturing jobs.

Over the last 45 years, this transition was accommodated by rising home prices and Americans were extracting “equity” from their homes to fund their lifestyle.  This minimized the pain of transition from a manufacturing-based to a service-based economy.  But now, the environment is changing.  Housing is no longer assumed to be forever growing in value.  The Fed is desperately wanting to keep inflation alive but the average American is no longer buying into the plan.  This 4 1/2 decade sustained expansion brought about by credit expansion is now at the end of its cycle.  A bust cycle is needed to cleanse the system.  Generally speaking, the bust must be similar in breadth to the boom cycle.  Either the length or depth must compensate for the extended boom cycle.

The private sector can no longer handle any more credit and this began in 2008.  Inflation is currently masking the reality by distorting the numbers.  The transition of the market to globalization brought forth a 95% drop in labor costs.  This is a one-time event and it impacted the prices of manufactured goods during the transition.  This is why the price of a PC has moved from $2,800 to $500.  The labor factor is the major ingredient in the decline of the price.  American workers built the first PC’s and now those same PC’s are built in China at 5% of the labor cost thus the consumer price index (CPI) has appeared to be reasonable but does not reflect the future challenges.

If we weren’t in dire straights, the Fed would not keep the interest rates at 0% through 2014.  Global stock and asset prices have been the beneficiary of the credit expansion policies of recent years.  Last year’s budget deficit of 8% kept the economy looking better than it would have with a balanced budget.  This deficit is keeping the U.S. economy on life support.  As long as the government spends on consumption, the hole will only get deeper.  The constituency does not want their consumption payments to drop and Congress will accommodate that request.

Low interest rates can only be supported by massive money printing.  This cannot be sustained forever.  Unless honest money arrives on the scene soon, Our Heavenly Father only knows how ugly this will get.  We must get back to honest money that cannot be manipulated.

The Battle for Control

Sunday, April 1st, 2012

The move toward making money all electronic is the essence of control.  This computerized environment enables a select few to control the masses in very short order.  Without personalized money, i.e. currency and coinage, those in control of the banking system can evoke stifling power at a moment’s notice.  An all electronic environment can control communications by shutting down cell towers, the Internet, and major telecommunications trunk lines.  When people conduct business with currency and checks, they bypass the controlled system hence the move to eliminate those mediums of exchange.

Creation of money is now done on a pure electronic basis.  In a stroke of a key, money is created out of nothing and this allows those in control to do what they think is best even though they do not have the perspective of Our Heavenly Father.  How much money is enough?  Only Our Heavenly Father knows.

The control of money can now be administered from a central location.  Commerce could be shut down in a matter of minutes or hours.  Emergency Executive Orders are in place to initiate such an act in the U.S.  What are we to do, move to another country where there is more individual freedom?  The answer lies in the Heavenlies.  We must pray for Thy Kingdom come, Thy Will be done.  The physical will ultimately line up with the spiritual.  The less money you have, the less control man can have on you.  Jesus’ ministry was not known for the size of His ministry funds.  If He needed to feed the multitudes, He expressed enough Love over a small sample of food to multiply it enough to satisfy the thousands.  He was in command of the “GOD” particles and those particles cannot be controlled or manipulated by man.  The Kingdom economy looks like a more efficient system to me AND it eliminates man’s quest to control.  Selah!

Contraction/Expansion Cycles & Waves

Saturday, March 31st, 2012

A fundamental expression in nature is a wave.  The following image provides a simple expression of a measurable wave:

However, waves can also rotate as shown below:

Cycles are a reality of life and at the most fundamental level we observe expansion and contraction.  Muscles are developed by expansion and contraction, stress and rest.  Our sleep patterns are cycles to allow us to be restored on a daily basis.  Economies work the same way.  Men do not make perfect decisions on expanding their business.  Some ideas simply fail.  Financial capital is directed toward those ideas and pursuits and they don’t produce the expected fruit.  Just as with a plant, you must prune away the unproductive branches for they are using resources the fruitful branches need.  It is also true with a nation’s economy.  Extended expansion needs an offsetting contraction.  However, politicians in their quest for power try to keep the economy in an expansionary mode in order to get reelected.  Since most citizens don’t understand the need for contraction, they oblige by reelecting the politician who promises them a rosy future.

As an entrepreneur for the past 27 years, I have grown accustomed to the cycle.  There have been lean years and there have been exceptional years.  Throughout those years, we have learned to live below our means.  It is easy to live up to a higher income but it is brutal when you attempt to contract your family budget.  However it can be done.

America has over-expanded for the last few decades and the piper wants to be paid.  The only question will be how much economic carnage will occur.  Historically, other economies crashed and burned after they attempted to do the same thing.  The world did not end but there was extreme pain.  This time looks no different.  Those who have followed this blog have been encouraged to downsize their needs and budget, get out of debt, and minimize financial risk (if possible).  Only Our Heavenly Father knows the timing when the unraveling will be in full swing.  That is why I encourage readers to seek HIS Face.  HE can and will guide each of us through the tumultuous times.  Love and peace will sustain us individually as the contraction gets into full swing.

Reckless Endangerment

Sunday, March 25th, 2012

The following podcast explores the most fundamental Biblical aspect of economic exchange in society, equal weights and measures.  Biblical Law demands impartiality, independent of your financial status and influence.  Once the imbalance occurs, the rule of Law is compromised and once that occurs, deterioration of society accelerates.  The Rule of Love will ultimately replace the environment in which we find those imbalances.  Our Heavenly Father will ultimately reconcile the “books” and evoke judgment based on righteous Love.  The following interview is but one aspect of the imbalances that plague society today:

 

Comprehending the breadth, and length, and depth, and height

Friday, March 23rd, 2012

These are tumultuous times.  The economy is in a slow motion train wreck and it is mathematically impossible to sustain our current economic course.  There are many with good intentions attempting to muster up a solution to the crisis.  The problem is simply too big to grasp.  There will be carnage when the train concludes its destruction.  People are trying to return to the idea of the original republic here in the U.S.  Though a noble cause in itself, I am convinced that going back is not the answer.  We must move forward and whatever we move to must meet certain criteria.  It must consider every man, woman, and child.  Food, shelter, and clothing are basic fundamentals required to sustain life and every person should have those necessities.  But how?  Where can we find the answer to all of the complex issues we face today?  Our society has become so complex that no one person can cover all of the bases in charting a path of restoration to the values we all hold dear.

Now is the time we should be seeking the Face of Our Heavenly Father in earnest!  It is time to quit going through the motions and shed the persona of being a politically correct Christian and seek the fullness of Our Heavenly Father!  But how?  We must be rooted and grounded in Love.  Right now, we are mentally challenged with the illusion of permanency of the current path of complexity.  We are being bombarded with technology that demands our time, time better spent seeking the Face of Our Heavenly Father.  We are like the proverbial frog in the soon to be boiling water.  The outcome on its current course will not be pretty.  Mothers will be crying in their pillows when the dung hits the fan.   Desperation will replace peaceful logic when men can no longer provide for their family.  Pain is coming, the only question is “How much?”

To comprehend the breadth, and length, and depth, and height of the Kingdom of GOD, we must be rooted and grounded in Love and walk in faith.  Our faith responds to Our Heavenly Father’s Word and we act upon His word in faith.  By responding in Love, we will open Heaven’s door with the Key of David.  Our comprehension of Our Heavenly Father’s plan will come into focus.  We will no longer seek some intellectual think tank for answers, for theirs was simply a carnal opinion with the bias of their upbringing and education.  The only true solution to the future of this complex planet is found in Heaven.  There is but one path to take, it is called “The Way”.  It is the way of Love.  It is found by seeking the Character of Our Heavenly Father and as we do, He is quick to respond with the needed wisdom, understanding, knowledge, and skill to navigate through this time of transition.  Ephesians 3 states:

14 For this cause I bow my knees unto the Father,

15 from whom all fatherhood in heavens and on the earth is named,

16 that he give you, according to the riches of his :glory, to be made mighty through his Spirit unto the inward man;

17 that the Christ dwell in your hearts through faith in love, rooted and grounded,

18 so that ye be strong to apprehend with all the saints what the breadth and length and depth and height,

19 and to know the love of the Christ which passeth knowledge, that ye be filled unto all the fullness of God.

Buying Scarcity with Infinity

Thursday, March 15th, 2012

Warren Buffett recently posed the question, “Would you rather own all the farmland in the U.S. or own gold?”  Most of us would say farmland since we know that it would produce food to be consumed by society.  However the better question to ask is, “Would you rather sell your farmland for gold or a fiat-based currency that was printed out of nothing?”  Would you rather auction off a scarce commodity and receive gold or US Dollars or Euros?  Since the US Dollar has lost over 90% of its value in the last 50 years, why would you want to sell a producing asset for a declining asset?

The recent drop in gold, silver, and related stocks is a buying opportunity for those who believe the above paragraph.  With the long term decline of a fiat currency, gold becomes a productive asset in its relative rise in value.  Gold and silver mining companies will soon return to the “utility company” status they once held during the Great Depression.  Their dividends will be similar to utility companies.

There is total denial that the Greek default will have a substantial impact on the global banking system.  The Euro is in deep crisis.  Portugal and Spain are the next targets for this contagion.  The losses are a real threat to the banking system.  Youth unemployment in Greece is at 51.4%.  80,000 Greeks attempted to storm the government buildings recently.  Greece has contracted by 15% and is contracting by 7% this year.  How many countries can contract by 25% and reasonably recover in the short term?  The Rule of Law is disintegrating in Southern Europe.  People are now terrified of the unknown.  The mainstream media would have us believe that all is well.

The Greek Tragedy: Part 2

Sunday, March 11th, 2012

Now that one bond group of Greek obligations has defaulted, we must consider the other groups that have yet to experience a cash transaction requirement.  Until a bond is at redemption or an interest payment is required, it has not legally defaulted for nonpayment.

Bank bonds, Hellenic Railway bonds, Urban Transportation bonds, etc. will all be impacted by default.  How big will the line be tomorrow as all Greek bondholders seek to make their insurance claim?  This reminds me a slow motion train wreck.