This was just too good not to share. What really happened in the stock market on August 5, 2011 when the US was downgraded to AA+, when everything literally broke, who is intervening constantly in the stock market, and why are they doing so via various HFT (High Frequency Trading) intermediary mechanisms? Take note of date in lower left hand corner.
The gaming industry is in the business of perpetuating illusion. Illusion by itself isn’t bad. It can be a precursor to individual reality. When you have a dream of a life’s work it is in the illusionary stage. As it moves from illusion to reality, fruit is produced. Illusion that moves you away from reality is ultimately destructive. This escape from reality satisfies the cravings of the ego and results in an addiction. There is a temporary euphoria associated with an addiction that temporarily wipes away the harsh reality the individual is in the midst of.
There is no place to hide in the financial economy and it is dangerous out there. Inflation is running rampant even though the official numbers would tell us otherwise. The risk of hyperinflation is increasing with every attempt to improve the economy through quantitative easing. Services such as healthcare and college education cannot be imported and their costs are going up substantially above the stated inflation numbers. How long will some of the currencies be any good is anybody’s guess.
Automation and technology may be connecting us in theory but are disconnecting our relationships. How many people do you see in a restaurant sitting across from another who has his or her head down. No, they are not praying, they are either texting, playing a game, or surfing the net. They have chosen technology over their interpersonal relationships. They are losing the art of listening. The ego gets tweaked every time you get a call or text when in a crowd. Body language is an important aspect of communication that gets lost when using technology to communicate.
The mainstream media(MSM) has been promoting the disconnect from reality as well. We are told how good it is in the job market and that the recovery is showing signs of notable improvement. But if you look at the statistics in an apples to apples comparison, people are hurting. The following chart compares the reality against the illusion:
The consumer is still tapped out and more baby boomers are figuring out they don’t need all the trappings that were once necessary. There are 242 million working age Americans. Only 142 million Americans are working. The labor force participation rate and employment to population ratio are at 30 year lows. Corporations are hoarding cash rather than beginning any notable expansion plans.
Those Americans who saved their money for retirement and were counting on interest income to augment their retirement check got thrown under the bus by the Fed:
What happened to the 5% savings rate? Mr. Bernanke has assured us that the above graph will continue its near zero march for another eighteen months. You weren’t counting on interest on you bank CD’s or savings accounts were you? With a true inflation rate of about 10%, your dollar is losing about 7-8% per year. At this rate in twelve years you won’t have any value left in that savings account. LORD come quickly!
I look forward to a Great Awakening of mankind that will sweep away the refuge of lies. We will require the anointing of the Holy Spirit to cleanse the earth of the illusions that have propagated themselves around the globe. Love will overtake the world in this great awakening!
In these days of manipulative economic practices I felt like sharing a positive story of hope and expectation. As my friends are aware, I focus heavily on economics and financial investments. In the gold & silver arena there are many stocks that have done well over the years. Behind those stocks are visionaries who understand both mining and business and their track record supports their beliefs. Rob McEwen is one such visionary. He is the CEO of McEwen Mining Inc. and the stock symbol is MUX. See his biography: http://www.robmcewen.com/biography/
Rob is the largest shareholder of MUX and takes no salary. I call that commitment. His goal for MUX is for the company to be listed on the S&P 500 by the year 2015. For this to occur, the company must grow to about 7 times its current size. The current share price is $5.80 so at the current number of shares outstanding, a $40 price would satisfy the growth requirement.
You can see his presentation at: http://www.mcewenmining.com/Theme/McEwen/files/doc_presentations/mcewen20120120_2.pdf He outlines his strategy for achieving his target.
It must be obvious to the reader that I am invested in MUX. Rob’s integrity and business prowess sent Goldcorp into the stratosphere and I will be cheering him on as he applies the same principles to McEwen Mining. As I have mentioned in the past, I prefer to take possession of my stock certificates or at least have them directly registered with the stock transfer agent.
Disclosure and Disclaimer Statement: The author has personal investments in gold, silver, uranium and base metal mining shares. Potential investors in this stock are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell any stock, currency or commodity. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions. The author has neither been paid nor received any other inducement to write this article.
Brinkmanship is the practice of pushing dangerous events to the verge of disaster in order to achieve the most advantageous outcome. Israel uses this strategy often and once again is using it to steer they U.S. into achieving Israel’s goals. In the Middle East, Israel is thought to be the most equipped country from a nuclear arsenal standpoint. Its goal is to dominate its neighbors and acquire land held by the Palestinians. Love is not the primary motivator, control is.
After WWII, the U.S. dictated the global economic system and has most of the official gold of other countries stored in New York City. In the 1940’s, NYC was the safest and most secure place for gold to be held. The same is not true today. Other countries have the ability to protect their own gold. As fiat currencies around the world continue to depreciate, those gold deposits are more likely to be requested back to their owners’ home countries. Will the U.S. casually return the gold? I doubt it. It’s all about control.
Each and every country that has attempted to circumvent the U.S. Dollar in recent decades has fallen into misfortune. This is not conspiracy theory, just the facts. When Iraq attempted to move away from petrodollars, they were targeted. When JFK attempted to circumvent the Fed with Executive Order 11110, he suddenly died of lead poisoning. Iran is now wanting to trade oil in with payment of gold. The focus is now on their future ability to create a nuclear bomb and how they must not be allowed to produce one. Israel is using brinkmanship to manipulate the U.S. into airstrikes in Iran. In the next 120 days, we will see who will win this game. Manipulation is at the source of the current moves. Man’s ego is self-destructive and the only lasting solution is Love.
The Lord’s Prayer expresses the solution. Thy Kingdom of Love come, Thy will be done on earth as it is in Heaven! Let this revelation be the awakening we are expecting soon!
The International Swaps and Derivatives Association (ISDA) is the “regulatory” body who determines when a default occurs for a financial instrument backed by credit default swaps (CDS). Why is this so important? The five largest banks in the U.S. control 97% of all CDS’s. If a default on a Greek Bond occurs, the CDS or “insurance” must pay up. Each bank’s liability of credit default swaps exceeds their capital structure. They would owe more than they could pay thus they would have to file for bankruptcy. Therefore, it is in the banks’ best interest for there to be no “default” proclaimed. Get the picture?
Who is the ISDA? From their brochure:
Since its founding in 1985, the International Swaps and Derivatives Association (ISDA) has focused on making the over-the-counter (OTC) derivatives markets safe and efficient.
Who is the current Chairman of ISDA? Stephen P. O’Connor is global head of the Counterparty Portfolio Management division at Morgan Stanley. O’Connor also serves as a member of the board of directors of the International Swaps and Derivatives Association. It was announced that he would be named chairman of ISDA on Apr. 14, 2011 at the organization’s annual general meeting in Prague. Mr. O’Connor is charged with oversight of the very institution he works for?
Here’s the short story of the problem. Greece is in dire straits and it is negotiating with the bondholders of its national debt to take a 50% haircut (loss) on the bonds they hold. These bondholders bought insurance (CDS) for this very reason. They wanted to be insured in case Greece defaulted and they paid their premiums for these swaps. The issuers (large banks) booked the profit and took bonuses for the money they made on issuing the swaps. Sweet!
All is well with the banks unless a default of the Greek bonds is declared. Who determines this? The ISDA Determinations Committee. Who makes up the Determinations Committee? Generally the banks who issued the swaps! Here is a recent decision made by the Determinations Committee: http://www.isda.org/dc/docs/AEJ_Determinations_Committee_Decision_01052012.pdf If a default occurs, the insurance pays and makes the bondholder whole on the investment. Otherwise, the bondholder assumes the loss even though he paid his insurance premiums.
From the outside looking in, this is the epitome of unbalanced weights and measures AND partiality of judgment, both acts of sin from a Scriptural standpoint. If the Determinations Committee who is charged with deciding the fate of Greek Bonds will not declare a default at 50%, at what level will a default occur? It may have to go to 0. By that time, we will be in full global meltdown of the financial house of cards. Complexity will give way to simplicity.
Do you think the wolf will really guard the hen house?
People strive to get wealth and influence. Often their motivation is due to an orientation of scarcity and the current economic system promotes this view. Advertisers attempt to convince us that we lack something and must purchase their product to be fulfilled. People are sucked into debt by this scarcity mentality only to see themselves in greater scarcity. The current economic system would have us believe that wealth will solve our problems. But time and time again we hear stories of lottery winners leading disastrous lives after they receive their windfall.
How is wealth obtained? Deuteronomy 8:17 "then you say in your heart, ‘My power and the might of my hand have gained me this wealth.’ Men believe they have a special gift to acquire wealth that sets them apart from others. They exalt themselves as being entitled. Their arrogance sets them up for a fall. Why? They don’t understand the purpose of wealth.
What is the purpose of wealth? It is to establish the Covenant of Our Heavenly Father on earth: Deuteronomy 8:18 "And you shall remember the LORD your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day.”
HIS Covenant is based on Love and Love serves mankind. We are called to be good stewards of the wealth HE had directed our way. Stewardship implies acquiring and maintaining assets for current and future use. If you want to establish the Kingdom of GOD on earth, you must be prepared to mobilize the wealth you have been given to steward.
Every paycheck is a prosperity test. If you don’t honor Our Heavenly Father first, how can you expect to participate in establishing HIS Covenant. Every farmer know you must plant seed in order to reap a harvest. It must be planted in good ground. Giving into man’s kingdom does not produce fruit in Our Heavenly Father’s Kingdom. You must ask Our Heavenly Father where to give your firstfruits. Each and every month my wife and I ask Our Heavenly Father where HE wants HIS finances to go. Not all of the firstfruits will be tax deductible. HE may have you bless an adversary. HE may have you give a server at the local restaurant an exceptional tip. HE may have your bless a widow in another state. Servias Ministries was set up to be a conduit of blessing to mankind and to establish The Kingdom of GOD on earth. If HE tells you to send us the firstfruits to distribute, we will. If HE tells you to send money directly to an individual or other organization, do it.
Prosperity has been given a bad name. However, Our Heavenly Father specifically deals with prosperity and its intent. If we will “get to give” rather than “give to get”, we will be found worthy to steward over greater wealth.
Is Our Heavenly Father first in your life? “Tithing” removes the curse of scarcity. Men want to argue the legality of tithing or that tithing is no longer necessary or required. Love does not require you to tithe, Love simply gives you the choice. Giving of your firstfruits is a straightforward way to allow Our Heavenly Father to broaden your influence. Am I telling you to bypass paying your bills? No. I would suggest that you adjust your lifestyle and live below your means rather than living on the edge. If you simplify your life, you require less and can invest more in the Kingdom. Our Heavenly Father is looking for obedience, not sacrifice. As you develop an obedience to honor HIM first with your productiveness, you allow Love to respond.
1. The next phase of problems will come about because of a loss of confidence in currencies themselves.
2. Regulators are totally ineffectual in dealing with what is occurring.
3. If we have a failure of Greek debt it will be catastrophic and you and I will pay. If Greece does not fail, we will have money printing (quantitative easing is the buzz word) to infinity.
4. China is actively seeking control of the resources of the world.
5. To balance the US balance sheet, gold would have to go to insane numbers. The mechanism is in place to drive gold to incredible numbers.
6. Sovereign debt is the next bomb to implode.
7. The only currency that will sustain what is coming is gold.
8. We are headed for a one world currency with a central bank of central banks. The world is going to change dramatically.
9. The individual states in the US, which are bankrupt in many cases, will be attacked next. Big money is already hugely short of state debt. Ultimately this will take down the US dollar as well.
10. A one world government is coming.
11. Hyperinflation is a loss of confidence in paper currency.
12. Gold is money without liability on the other side. It stands alone. Make your balance sheet as good as it can be.
13. Gold is an insurance policy.
14. Focus on simplicity in your personal life. Be focused, balanced, and go back to basics. This is not a time to get fancy.
15. Hold any stocks you happen to own in certificate form in your hand, and don’t lose the certificate. If you are a stock player, check out true custodial accounts. Make certain that your holdings are in fact yours and NOT on the books of the bank. Direct registration is an alternative.
16. Expect mining company consolidations to greatly accelerate.
The Federal Reserve Bank has provided us a roadmap for gold to move to $2,100 and $4,500 and it isn’t that far off. The global debt problem is as big now as it was in 2008. If a default is declared that affects the credit default swaps, five major U.S. banks will go under as well as three Euroland banks. This is why those in power are trying to avoid the legal trigger of “Default”. We are extremely close to the edge of financial mass destruction. In an election year, do you think that the Fed will simply hold back printing of money?
The Federal Reserve committed to low interest rates through 2014. What was the impact?
My Yahoo Finance tracking screen went green:
![CropperCapture[91]](http://www.servias.org/wp-content/uploads/2012/01/croppercapture91.png "CropperCapture[91]")
UXG was up 12.45% in one day. for those who recently bought the stock at 2.99 in mid December.
Wealth brings with it a great challenge. The ego especially feeds on greed whereas greed is the root of all evil. Hoarding is the ugly sister to greed. When people find their value of identity in possessions the outworking is to get more and more. What you have is never enough. Consider all of the offsite storage buildings in the U.S. Many are full of possessions that are slowly deteriorating. Don’t get me wrong, the size of your house, car, or bank account does not mean that you are greedy. Each of us has a ministry that requires different assets to fulfill. We all don’t need to be driving a Smartcar to show we are not being led by greed. We are also to be good stewards over what we have been given. Lack of stewardship isn’t a good testimony to those who are watching your walk while you are “talking your talk”. In Luke 18:22 Jesus said:
So when Jesus heard these things, He said to him, "You still lack one thing. Sell all that you have and distribute to the poor, and you will have treasure in heaven; and come, follow Me."
What an unpopular thing to say in America, the wealthiest country on earth. This affluent society has elevated itself to the point where it no longer needs GOD in the center of its society. The children no longer recite The Lord’s Prayer in school. Since this happened, the discipline problems in schools have risen exponentially. Those children, now adults, are no longer restrained in their behavior. Corporate greed is at an astronomical high. The loyalty to the employee is all but gone. Defined benefit plans designed to reward long term service by employees have been disemboweled by corporate greed. Politicians bought off by lobbyists have thrown the average man and woman under the bus. The moral fiber of this country is in dire straits but not for long.
This year I expect an awakening of men and women who are called to be the “elect”. I expect this awakening to bring forth a new paradigm of business thinking. Many in the past have given lip service to serving mankind. As this awakening materializes into a Kingdom structure. men and women will be given the opportunity to be a part of this new paradigm. No longer will greed and self interest dictate the direction of an organization. Kingdom principles resulting from the revelation of Love will be the guiding force. Serving mankind will be the burning desire in the bellies of the people who are called to participate in Kingdom companies. Accumulated wealth will be mobilized as men and women see that their calling is being summoned by the Most High God. Dysfunction of the masses will no longer be exploited by those who have been in power by exploitation.
As the Body of Christ is fitly joined together, each part will truly supply the other parts… really!