Archive for the ‘Biblical Economics & Money’ Category

Money from thin air

Thursday, March 31st, 2011

The following graph provides us with a view of what the Federal Reserve has done over the last three years precipitated by the banking crisis (or disclosure).  The crisis did not begin on a particular day but was the inflection point of years of poor monetary management and regulation:

 

image

Hard assets such as gold, silver, energy, agricultural land, etc. are the only insurance that I know of to offset this huge amount of money printing.  The deficit continues to grow and unfunded obligations are out of sight.  The toughness found in depression-era Americans has been lost by attrition.  We are heading for the harsh realities soon and will get the opportunity to find out what we are made of.

Simplify…

Tuesday, March 29th, 2011

As a technology-oriented professional for the last 38 years, I am fully convinced we’re heading for a “technology collapse”.  How will this materialize?  I do not know yet but once it occurs, we will look back and say “That collapse occurred due to our reliance on technology”.

Technology does not create energy it only enhances release or recovery of existing energy sources.  Enhanced oil recovery simply drains the reservoir quicker and possibly more completely.  Most medical technology doesn’t heal, it only identifies possible sources of sickness and disease.  Killing cancer cells with radiation, chemicals, or surgery does not identify the source the problem.  That is why relapse often occurs.  Our EDS project should simplify wellness and wellness reduces cancers that arise in the body.

iPhones, iPads, iThis, and iThat are leading us away from fullness of communication.  Yes, I have a high powered phone for business purposes.  However, an email, text message, tweet, facebook comment, etc. desensitizes from the fullness of face-to-face communication that allows all of our senses to work together and enjoy the bouquet of sensory perception that is generated by the other person.  These day to day acts of communication help us develop our ability to express our thoughts and revelation from Our Heavenly Father to serve others.  My generation will not be affected because we did not grow up with technology other than two cans and a string.  The newest generation will be the ones who will become challenged in their ability to “read” people.

Global economics is out of control.  There is no wizard of Oz to pull the levers and each country is working overtime to insure its survival and current paradigm of control.  Leaders will say what ever is necessary to keep their position.  The “greater good” excuse is no longer acceptable.  Lies and deceit create a house built on sand and as soon as another economic earthquake occurs, the house will fall.

World energy needs exceed our current capacity to supply.  With the Middle East unrest and reduction of oil output, expect prices to continue upward.  West Texas Intermediate Crude at $10-$11 below Brent Crude prices is an indication of manipulation by those in control.  Manipulation cannot occur for an indefinite period of time.  It is believe that $120 oil in the U.S. will begin shutting down the economy again.

By reducing the complexity in our lives, we can focus on what Our Heavenly Father is saying.  Noise drowns out a melody.  Too much stuff simply creates a slave of the owner.  Those of us that owned a boat know this all too well.  The 2nd best day of owning a boat is the day you bought it.  The best day is the day you sold it.  Intentions are costly.  How many of us own exercise equipment doubling as clothes dryers or storage?

As we reduce our economic “footprint”, we position ourselves to serve others instead of trying to maintain a complex lifestyle.  Is technology helpful?  As long as it serves us and not the reverse.  Don’t be a servant to complexity, be a servant to mankind! 

Being a Blessing

Thursday, March 24th, 2011

The average person wants a free ride, especially the “Church”.  Their prayer usually starts out with a petition to remove the pressure, stress, etc.  “I need more money, more this, more that… I need a jubilee!”  There is much time and energy devoted to finding the easy way out of past actions and decisions as long as it is the “easy” way.  Over the years, the “faith” movement focused on the prosperity Scriptures to name it and claim it.  It was always about “self”.  Ministries were very accommodating to teach what the ego wanted to hear.  People would “give to get” only to find they were worse off than before.  Evangelists would boast about their fleet of planes and justify them because of their important schedules.  Their mansions were supposed to be examples for the average person of what was awaiting him or her once an adequate faith level was achieved.  At their meetings, people would wait in line for the doors to open and then run to the front hoping to get close enough for some of this faith to overtake them by osmosis.

In Deuteronomy 28 we find the Our Heavenly Father provides us with understanding about blessing and cursing.  However, that word “if” seems to get in the way.  There are conditions for blessing and we are called to make a choice.

1 "Now it shall come to pass, if you diligently obey the voice of the LORD your God, to observe carefully all His commandments which I command you today, that the LORD your God will set you high above all nations of the earth. 2 And all these blessings shall come upon you and overtake you, because you obey the voice of the LORD your God:

How do you carefully observe all HIS commandments?  By Love!  What is a great way to observe all HIS commandments?  By being a blessing.

So often people strive to be a recipient of a blessing rather than be the giver of a blessing.  People want to be jubilee’d out of their debt rather than believe that Our Heavenly Father could provide the funds to retire the debt.  People constantly look for loopholes to get out of contracts they signed and agreed to.  If things go their way then they want the contract enforced.  But if things don’t work out, they look for ways to get out of the contract including litigation.  Their god isn’t big enough to provide them the means to keep their word.  For years in my neck of the woods, a man’s handshake was as good as a contract.  Not these days.  We measure a good contract based on the weight of the document.  Loopholes must be closed yet sly attorneys continue to find ways around contracts.

Deut 28:12  The LORD will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow.

Do you think Our Heavenly Father would promote “lending” if the borrower’s plan was to default on every loan?  Doesn’t righteous lending expect righteous borrowing?  Did Jesus go borrow a bunch of money then default?  We must repent of our fleshly attitudes and draw near unto Our Heavenly Father.  It’s time for us to be a blessing to mankind and be an example of what Our Heavenly Father can do through us to bless all the families of the earth.  Be an example of Love.  Selah!

Thinking the Unthinkable

Wednesday, March 23rd, 2011

Those who have been reading this blog know about a “black swan” event, an unexpected and unanticipated event that has a negative impact on lives and/or financial markets.  It appears that we are finding a flock of black swans around the globe.  There are so many unusual events happening around the globe that reporters must choose which event to focus on.

Japan’s triple catastrophes will be felt for a long time to come.  In the current paradigm, nuclear energy must be developed but the images from Japan will cause an uphill battle for the industry.  I find it interesting that the Japanese do not trust their government to tell them the truth about the exposure risks.  It seems like the people around the world all have the same mistrust of their governments.

Meanwhile, President Obama’s pledge to get us out of war seems to be put on hold while the U.S. and its allies bomb Libyan targets and begin enforcing a no-fly zone over the country.  Only time will tell when we can close down this latest campaign.  Last weekend Saudi Arabia sent 1,000 troops to Bahrain to enforce martial law and keep the unrest in check.  That did not make the network news but is probably the most significant piece of news of the weekend.  If Bahrain falls, the Saudi’s could be next.  If that happens, oil could shoot up to the $200 range.

While the geopolitical turmoil rages on, the Fed continues to print money which will ultimately show up as price inflation.   They have been successfully re-liquefying the banks.  That means they have provided the banks with money and means to create risk-free profits to offset past losses… what a deal!  They have successfully robbed from the savers of America to give to the banks who in turn issue ungodly bonuses to management.  This act of unequal weights and measures will receive a harsh judgment at some point.  Our Heavenly Father has an excellent memory.

So we are seeing natural disasters with greater frequency, geopolitical upheavals in energy sensitive areas, and potential economic tsunamis heading our way.  What should we do about all this?  First and foremost, draw near to Our Heavenly Father for HE will lead and guide each one of us through the upheavals.  Secondly, do what you can to prepare for worst case scenarios.  Those of us who bought and stored potassium iodate were prepared when the news reported the nuclear event in Japan.  With an indefinite shelf life, the pills provide a simple, low cost “insurance” policy against global events such as what we have recently experienced.  Buy enough for your loved ones too.  Buy extra non-perishable food.  With inflation expected, it would be a good investment anyway.  Keep extra cash in case of an emergency.  ATM’s in Japan were shut down thus people were unable to get cash.  Have an evacuation plan drawn up in case you have to leave your city unexpectedly.  Most of all, deal with your denial that something could not happen to your locality.  Think the unthinkable!

Collapse of Government Debt and the 9th Sign of Elisha

Friday, March 18th, 2011

With 80% of the U.S. Government’s expenditures as being non-negotiable spending, the collapse would appear to be certain.  Why?  The politicians and the people do not have the will to cut back before it is too late.  Sustained low interest rates served only to mask the problem of huge debt and deficits.  Once the market requires higher interest rates due to the increase of inflation, the proportion of the U.S. budget to support interest payments will rise substantially.  This will be an economic tsunami that will rival any event in history.

Can we keep the wheels on the wagon through 2016?  Only Our Heavenly Father knows.  Lobbying groups have successfully manipulated the course of the country into economic suicide.  The greed of powerful industry groups will be their ultimate downfall.

What are we to do?  We can take our cue from 2 Kings chapter 4 and the Gospels.  Elisha performed 16 miracles, a sign of Love.  The 9th sign was the feeding of 100 men with barley loaves of bread and corn.  Barley is always associated with the overcomers or “sons of GOD”.  Often we get in a spiritual “rut” and no longer walk in faith and expectation.  Multiplying fish or bread seems out of reach for most of us.  But wait!  We must ask ourselves why these miracles were placed in the Biblical record for us to read.  Surely Our Heavenly Father is no respecter of persons.  Love can command the “GOD” particles to form whatever is necessary to bless mankind.  Multiplying loaves and fishes is not out of the realm of possibility.  Jesus commanded the particles and fed the multitudes.

It appears to be only a matter of time before the chickens come home to roost.  Food shortages are the reason that the Middle East is in turmoil.  When people are hungry, government control goes out the door.  After all, what do hungry people have to lose.  None of us are thrilled about these turbulent times but that is the reality.  What can we do?  Build up our faith and believe Our Heavenly Father for the daily bread that we may become blessings to all men.  Continue to press in and draw near to Our Heavenly Father.  Offer up ourselves as living sacrifices unto THE LORD.  Go out and bless the people and expect the Glory of HIS Presence to fill our temples.  Read Leviticus 9.

Let’s Be a Blessing to the Japanese!

Wednesday, March 16th, 2011

Servias Ministries offers a way for you to give anonymously to tragic events such as the triple black swan events in Japan.  When you give directly, you are added to a donor list and get perpetual mailings.  Some even add you to a call list and sometimes sell your name.  At Servias, we simply direct your giving to the disaster relief organization of choice.  I personally prefer to give to the Red Cross due to their international infrastructure of distribution.  Yes, I know they have a lot of overhead, but they are early responders and must have the structure to be there when disaster strikes.

Our Heavenly Father knows our hearts and rewards us as vessels of giving.  We have an opportunity to display our stewardship by helping those we don’t know in their hour of deepest need.

Oil, Gold, & Silver poised for an upward rise

Sunday, March 6th, 2011

image

The events in the Middle East are not due to a sudden desire for democracy. It would seem to have a concerted effort behind it.  The uprisings in the Middle East appear to have planning and organization behind them.  Since Iran is the obvious benefactor behind destabilization, one would have to consider a connection.  The quick deployment of mercenaries and protester armies defy a “growing” revolution evolution curve.

What will result in destabilization of the area?  Higher oil prices and higher gold & silver prices.  Western civilization requires cheap oil to thrive.  2008 has already shown what $147 oil can do to Western economies.  From Iran’s point of view, $200 oil would benefit them and destroy the U.S. and Europe economies and their ability to sustain war in the region.  U.S. Forces are stretched thin already and our 1.6 Trillion Dollar deficit cannot be permanently sustained.  Man is it ugly out there!

$1,600 gold is now well in striking distance and if silver is drawn to its historic 16:1 ratio with gold, $35 silver may be looking cheap.  Solid mining companies may provide the savvy investor with a windfall of profits.  Hopefully, those with windfall profits will help those in need rather than “rathole” the profits under the mattress.  We will soon see who is committed to walk in Love.

$7 to $8 Billion per day

Saturday, March 5th, 2011

The Federal Reserve is injecting $7 to $8 billion into the financial markets on a daily basis.  This is scheduled to end in June.  Right now, everything is starting to feel good.  Even though unemployment is subsiding to whatever level you believe to be the real number to be, the second half of the year is what we must pay close attention to.  Look for QE3 to be implemented.  QE or “quantitative easing” or “printing a bunch of money out of thin air” will put further inflationary pressures on hard assets.  How much longer can the Fed inflate the U.S. Dollar without the markets and other countries retaliating?  Only Our Heavenly Father knows.

$100 Silver?

Thursday, March 3rd, 2011

Referenced is an interesting video clip concerning the expected rise in silver (silver is money):  http://watch.bnn.ca/the-street/march-2011/the-street-march-1-2011/#clip425669

Also mentioned is the historic 16:1 ratio of the silver price to gold’s price.  In Scripture the number 16 represents Love.  Sounds like a ratio made in Heaven to me.  I have been projecting a $1,600 gold price for some time now.  Ben Bernanke and Congress almost assure us of this level with the continuing efforts to inflate the U.S. Dollar thus making it easier to pay off debt with debased currency.  The price volatility of the precious metals will certainly scare the feint of heart.  Until there is a serious outbreak of Love and peace, I don’t expect price volatility to subside.

$220 Oil?

Friday, February 25th, 2011

See: http://www.telegraph.co.uk/finance/financetopics/oilprices/8344133/Oil-could-hit-220-a-barrel-on-Libya-and-Algeria-fears-warns-Nomura.html

Are you prepared for such an event?  If oil hit this level, food prices would soar at the same time the American economy would take a nose dive.  I continue to recommend increasing food purchases to have some food stored in case of unexpected shortages.  Hopefully, this will never happen but if you simply rotate your food supply you will have “insurance” against disruption.

Gas guzzlers will get pretty cheap if oil shoots up to these levels.  Who really needs a 400 HP motor under the hood?