Archive for the ‘Biblical Economics & Money’ Category

Toxicity in Life

Sunday, May 3rd, 2009

A toxin (Greek: τοξικόν, toxikon, lit. (poison) for use on arrows) is a poisonous substance produced or consumed by living cells or organisms.  My close friend Dr. Vince Speckhart, a highly successful oncologist who practiced medicine for forty years, once told me “the human body is designed to live forever”.  His success rate for treating cancer improved dramatically when he found a methodology that detected “toxic” interferences in the body thus allowing him to isolate a remedy for their removal.  Once the toxic substance or “signal” was removed, the body began to heal itself.  If you get a splinter in the finger, it will not heal until the splinter is removed.  The needle and tweezers used for the removal are not the cure, they simply facilitate the cure by removing the “toxic” substance.  In Dr. Speckhart’s practice, this simple understanding led him to an alternative way of treating his cancer patients.  Rather than promoting consumption of a toxic pharmaceutical, he focused on the removal of what appeared to be “triggers” or precursors to cancer.  Once he began to focus on toxin removal rather than “treating the symptom”, his success rate notably improved.

I had a friend who served as a medic in Vietnam and was exposed to Agent Orange (dioxin).  Within twenty years he was diagnosed with cancer in the lung area where his lungs were fusing with the wall around them (a layman’s description).  He went through the standard treatments and the doctor confirmed that Agent Orange was the trigger.  His immune system ultimately became overloaded and those “rebellious” cells began growing as cancer.

Dr. Sherry Rogers, another physician who began to search for alternatives to the current medical traditions, became deathly sick from her exposure to chemicals used on her parents’ farm.  Like Dr. Speckhart, she found that “detoxification” methodologies were her only solution.  Once she detoxified her body, her health returned.  She has written several books on using detoxification methodology to restore your health.  In her writings, she provides proof that chemicals ingested through commercially supplied means are poisoning our bodies on a daily basis.  Plastics are leached into our drinking bottles and are being stored in our bodies causing abnormalities.  Herbicides and pesticides used around the house are adding to the immune system burden of the body.  At some point, sickness and disease spring forth.

“Toxins” are occurring in our society as well.  Gradual introduction of perversity in society promotes illicit sex, violence, and destruction of the family unit.  With this path comes the consequences of death and destruction to society.  With the hippie movement of the 60’s and 70’s came open sexual relationships.  The 80’s brought unbridled greed.  The 90’s ushered in the demise of business ethics.  The “I’m OK, you’re OK” attitude meant that any act can be redefined as being acceptable.  This lawless attitude is promoting cancer to form and mastisize where only major surgery can remove it.

In the economics picture, removal of restrictions in the area of finance created a toxin-rich environment.  In the Great Depression, leaders found that the absence of regulation and allowing banks to be both commercial and investment banks created an environment conducive to lawlessness.  In 1933, in the wake of the 1929 stock market crash and during a nationwide commercial bank failure and the Great Depression, two members of Congress put their names on what is known today as the Glass-Steagall Act (GSA). This act separated investment and commercial banking activities. At the time, “improper banking activity”, or what was considered overzealous commercial bank involvement in stock market investment, was deemed the main culprit of the financial crash. According to that reasoning, commercial banks took on too much risk with depositors’ money. (See: http://www.investopedia.com/articles/03/071603.asp)  Under the direction of President Clinton and Treasury Secretary Lawrence Summers, the Glass-Steagall Act was repealed in 1999.  This was the first step to lifting protection of risky banking practices that have led to the current crisis.

The Bush’s administration continued to provide an environment that would lead to a toxic environment by removing or reducing regulation of the financial industry.  This photo from 2003 shows two regulators: John Reich (then Vice Chairman of the FDIC and later at the OTS) and James Gilleran of the Office of Thrift Supervision (with the chainsaw) and representatives of three banker trade associations: James McLaughlin of the American Bankers Association, Harry Doherty of America’s Community Bankers, and Ken Guenther of the Independent Community Bankers of America.

Cutting Red Tape

Once you remove the rule of law from any subset of society, greed and self interest will prevail.  Lawlessness and rebellion will prevail until the organism becomes toxic and ultimately perishes.  Only by removing the toxic origin will the organism repair itself.  By feeding the organism with an opiate, you simply provide it with a temporary “high” while it continues to die.

Protecting the "Status Quo"

Wednesday, April 22nd, 2009

As I have written in the past huge amounts of bailout money have been made available to financial institutions.  Some local institutions were forced to take the money, and expect to send it back as soon as possible.  It would paint the picture that bailout money is being widely distributed rather than targeting a narrow audience.  Over time, we have consistently seen the “paint a rosy picture” scenario by various administrations tinkering with government statistics- employment numbers, consumer price index, core index, money supply, etc.  The latest “tinkering” is the accounting standards applicable to the banks’ valuation of toxic assets.  Effectively, the banks can play with their balance sheets thus effecting a drastic improvement of income and painting a better financial picture.  If you or I did the same in an effort to receive a loan from the bank, we would be convicted of fraud.  If those banks with toxic assets were to value the toxic assets at current market value, they would be “insolvent” and that is a scary prospect for the current financial system.

Why are the world leaders pursuing this path?  They are attempting to protect the counterfeit reality that keeps them in power.  The current structure promotes and protects its power structure from any outside interference.  Students of history know that this will not last indefinitely.  Rome fell, the British Empire lost its status, and the United States is on the same road to ruin.  There is no way in the current system to pay back the money committed other than defaulting on future obligations or inflating the currency thus devaluing individual wealth.  Either option will be devastating to the American taxpayer and future generations.  It is important to remember, government has no real money of its own, all the money it spends or commits comes from the taxpayer or is created out of thin air.

In the current system, economies require energy to grow and the “easy” energy is gone.  All of the easy to reach oil has been discovered and is being extracted.  We have not run out of oil but it is now more expensive to find and extract.  The same is true for the other commodities.  Cheap prices mask the problem and the current leaders have mechanisms in place to paint a rosy picture.  How unfortunate is short-term thinking!

2Kings 7:1 THEN Elisha said, “Hear the word of the LORD. Thus says the LORD: ‘Tomorrow about this time a seah of fine flour shall be sold for a shekel, and two seahs of barley for a shekel, at the gate of Samaria.'”

This story reflects a “black swan” event.  The Samarians were living life as usual, expecting the linear progression of their lives to continue.  “Then suddenly” Our Heavenly Father evoked a change to the Syrians’ future.  HE told Elisha to expect the change to the local economy and it happened as expected by the prophet who heard the voice of THE LORD.  The Book of Job reminds us that there are larger cycles in the universe than what we can comprehend and that when sudden change comes, don’t be surprised.  Job had everything stripped away so that he could prepare for a greater ministry.  That method goes against what most believe is optimum but we must shed the counterfeit realities that we have created in order to clear the way for Our Heavenly Father’s plan.

Below is a little humor to offset the dismal financial picture described above:

$1,600 Gold by 1/11/11

Saturday, April 11th, 2009

As people attempt to protect their life savings, they are constantly bombarded by market noise of where to invest.  Although I do not believe in the “all in” investing strategy, I do believe in increasing the weighting of investments toward precious metals and related stocks.  The following video clip provides perspective on gold versus other investments:

 

12 Minutes to Understanding

Wednesday, April 1st, 2009

The following video provides you with the understanding of how Wall Street and the financial community could contrive a way to extract taxpayer money and stay in business.

The Geithner Plan provides a back door to bank re-liquification without grossly affecting the stockholder, bondholder, or current bank management but shifting the bulk of the loss to the taxpayer without Joe the taxpayer realizing it.  I guess these guys think we’re all stupid and that assumption will turn out to be a strategic error.

Preparing the way for the Kings from the East

Monday, March 30th, 2009

Revelations 16:12 Then the sixth angel poured out his bowl on the great river Euphrates, and its water was dried up, so that the way of the kings from the east might be prepared. (NKJV)

Euphrates mean “fruitfulness”.

The Revelation of John has many applications to our lives and world history.  I do not claim expertise in either area.  However the Spirit of God is an expert in both areas and HE resides in me.  There is so  much information and opinion circling the globe today, it is impossible to discern the truth versus lies except by the Holy Spirit and the voice of Our Heavenly Father.  The complexity of finance, technology, government, and the actions of 6.5 billion people surpasses human understanding.  This Scripture just keeps surfacing in my consciousness as I read about the actions of the world leaders.

“Flexibility to the point of collapse” is where we are at today.  Increased complexity is designed to fail.  Long gone are the days where a teenager could repair his own car.  Complexity designed to tickle our logic has replaced the beauty of simplicity.  Society is forcing us to move away from paper records in favor of electronic shadows of “on” and “off”, + or -, 1 or 0.  Why?  Because of convenience.  I am amazed at the mentality of society today.  It falsely assumes that every person in an organization that has access to your debit card information is trustworthy.  Your information is only as good as the weakest link in the information chain from retailer, retailer bank, clearinghouse, your bank, and all the subcontractors in between.  It is more convenient and profitable for the bank when you use a debit card rather than a check which provides a perfect audit trail of the commercial transaction.  Customer Service is replace by Supplier Servant.

The U.S. Leadership has been taken over by the major financial institutions.  The threat of systemic failure has caused the leaders to mortgage the future of the U.S. in favor of keeping 20 banks from failing.  The other 7,000 community banks in the U.S. will suffer from the action of a few.

AIG’s bailout money is re-capitalizing a few very large multi-national banks who are also receiving assistance;

Goldman Sachs received $12.9 billion

Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion

Barclays of Britain ($8.5 billion)

Merrill Lynch ($6.8 billion)

Bank of America ($5.2 billion)

UBS of Switzerland ($5 billion)

Citigroup ($2.3 billion)

Wachovia ($1.5 billion).

See: http://dealbook.blogs.nytimes.com/2009/03/26/cuomo-widens-his-aig-investigation/

As you can see, the money did not go down a black hole at AIG, they simply paid out contract obligations that were written by their London “casino” office who had absolutely zero regulatory oversight.  The Fed knows where this money ended up but does not want the public to realize the pass through “double dipping” by those banks.  If the public was upset by $165 million in bonuses, what would happen if they understood the preferential treatment of the above list? 

All of this has put China in a position to demand global change favorable to their agenda.  While Western Leaders are printing money to bailout financial services institutions, China continues to invest in infrastructure for the future.  In the 80’s we looked to Japan for their manufacturing prowess.  It appears in the 10’s we will look to China for their governing ability.  The West is certainly preparing the way for the Kings from the East.

vi [dīfang]
watch out!

AIG Counterparties

Friday, March 20th, 2009

Everyone is outraged by the AIG bonuses in the millions.  However, AIG had to make good on its contracts in the derivatives arena (insurance claims).  So, The U.S. Government gives our money to AIG who then pays out these claims so that the system will not fail.  Some of this $180 Billion appears to have gone to banks who were also given direct bailout money by the Treasury.  Double Dippin’ makes taxpayers very angry!

See: http://www.slate.com/id/2213942/   

 

Psalms 106:36  And they served their idols: which were a snare unto them.

Predicting the Future: A Dollar Crisis

Wednesday, March 18th, 2009

Predictions fall into two basic categories: physical and spiritual, or seen and unseen.  The physical realm of cause and effect includes the economic principles we use to navigate through the muck and mire.  Economic principles address supply and demand of rational human behavior given a set of circumstances with a little culture mixed in.

When a group of people create a problem, do you think that same group can solve it?  Only by a new revelation can the problem be solved by the people involved.  However, the people involved are not known for their revelatory abilities.

Let’s look at the economic players “of change”:

Barack Obama is a graduate of Columbia University and Harvard Law School, where he was the first African American president of the Harvard Law Review. He worked as a community organizer in Chicago prior to earning his law degree, and practiced as a civil rights attorney in Chicago before serving three terms in the Illinois Senate from 1997 to 2004. He also taught constitutional law at the University of Chicago Law School from 1992 to 2004.  Following an unsuccessful bid for a seat in the U.S. House of Representatives in 2000, Obama was elected to the United States Senate in November 2004. See: http://en.wikipedia.org/wiki/Barack_Obama  President Obama has no background or experience in economic or financial matters and he is the final decision maker.

Treasury Secretary Timothy F. Geithner spent six years as the President of the New York Federal Reserve, the most influential of the twelve banks. Since the founding of the Federal Reserve banking system, the Federal Reserve Bank of New York in Manhattan’s Financial District has been the place where monetary policy in the United States is implemented, although policy is decided in Washington, D.C. by the Board of Governors of the Federal Reserve System. The New York Federal reserve is the largest, in terms of assets, and the most important of the twelve regional banks. Operating in the financial capital of the U.S., the New York Fed is responsible for conducting open market operations, the buying and selling of outstanding U.S. Treasury securities.  See: http://en.wikipedia.org/wiki/Federal_Reserve_Bank_of_New_York.  Geithner is not new to the problem, he help create the problem.

Lawrence Henry “Larry” Summers (born November 30, 1954) is an American economist and the Director of the White House’s National Economic Council for President Barack Obama.  Summers is the Charles W. Eliot University Professor at Harvard University’s Kennedy School of Government. He is the 1993 recipient of the John Bates Clark Medal for his work in several fields of economics and was Secretary of the Treasury for the last year and a half of the Bill Clinton administration. Summers also served as the 27th President of Harvard University from 2001 to 2006. Summers resigned as Harvard’s president in the wake of controversy over a talk in which he speculated that women may have lesser aptitude for work in the highest levels of math and science. Summers has been criticized by some liberals for the centrist economic policies he advocated as Treasury Secretary and in later writings.

Larry Summers is Geithner’s mentor.  Mr. Summers is calling the shots for the Administration and he is not even elected or approved by Congress.  Mr. Summers worked under Bill Clinton who promoted the current path of economic failure.  Clinton’s Administration promoted sub-prime lending, tinkering with unemployment numbers, and other fiscal components to manage public perception of the economy.  Barack Obama’s promise for change and fresh thinking is simply to re-install the players who were involved to some degree in the current economic crisis.

Obama has called on these two men who were involved in creating the problem, to solve the problem.  That is not going to happen.  Their level of “awareness” is at the same level of the problem.  Only someone with a higher level of awareness could solve this problem.  This is precisely why married couples go to a counselor after exhausting their attempts to restore their marriage.  They assume the counselor has a higher level of awareness.  When you are sick and are not improving after taking all of the remedies at your disposal, you finally go to a doctor expecting him or her to have a higher level of awareness in the area of health.

Larry Summers has all the accolades one can have in the area of Economics.  Unfortunately, he needs something else- revelation.  Revelation provides a higher level of awareness from Our Heavenly Father’s point of view.  From His “point of viewing”, He knows the entire big picture and has all of the wisdom, knowledge, and understanding required to resolve this crisis.  Globally, it looks as though we are quickly moving toward a Dollar Crisis.  The Premier of China now wants reassurance that our government will protect China’s investment in Dollars.  China is concerned about the solvency of the U.S.

As we have predicted, the credit card black hole is increasing in size and credit card companies are now reporting substantial credit card defaults.  Commercial real estate is not far behind.  Fannie Mae and Freddie Mac will need more cash infusions.  AIG now 80% owned by the taxpayer will need more cash beyond the $180 Billion already injected.  Tax receipts will shrink this year while demand for cash will increase.  Several pension funds are now in trouble and will need cash infusions.  California may need to file bankruptcy before the end of the year.  The baby boomers will want their promised benefits and healthcare costs are climbing.  The retail sector will continue to suffer a decline except in the area of “do it yourself” goods.  There will be an inflection point when hyper-inflation will take over.  Nobody at the current level of awareness knows where that point is or when it will occur.

I find it interesting that Americans are focused on $165 million in AIG bonuses when Washington throwing around trillion’s of taxpayer dollars hoping something will stick to the wall.  Washington knows that someone needs to be the “whipping boy”.

It is clear that we as individuals must enter our prayer closets and seek Our Heavenly Father’s Face!  We must prepare for the tumultuous times ahead.  It will not be business as usual.  So you wanted to be an Overcomer, it looks like you are going to get the opportunity to overcome!

The Irresponsibility of "Words"

Tuesday, March 17th, 2009

Proverbs 6:2  Thou art snared with the words of thy mouth, thou art taken with the words of thy mouth.

Words have lost their value in America.  Leaders have become magicians with their terminology.  Former President Clinton attempted to redefine the word “is” and phrases such as “sexual relations”.  Alan Greenspan used the term “irrational exuberance” to explain away the economic conditions that led to the current crisis.  Fed Chairman Ben Bernanke spoke to the media prior to the financial meltdown as though there was no imminent danger to the economy.  NBC talking heads promoted financial institutions’ stock days before their collapse.  Now they wonder why consumer confidence is so low!

The globe is spiraling into a depression necessitating the de-leveraging of debt.  In the past, recessions tended to be regional.  But with the recent globalization experiment, economies of countries are interconnected to the point that when one major economy is in trouble, they are all in trouble.  The dominoes are falling.

 

image

– AIG’s latest $30 Billion bailout will not be its last.

-Citibank is on its last leg.

-GM is on the brink of bankruptcy.

-The stock market is down more than 50%

-Every CEO of a failing public corporation seems to be in another universe when asked about the financial condition of their company.

-True unemployment is above 10%

-There are over $1 Quadrillion in derivatives now.

-China is now worried about all of the U.S. Dollars they are holding.

The media does little to promote the truth about the situation we are in now.  Rather than promoting journalistic integrity, reporters are promoting the agendas of those who control the purse strings.

The Code of the West was that a man was as good as his word and his word was his contract.  A handshake sealed the deal.  Now, that is the exception, not the rule.  We must now filter through all of the rhetoric to assess what was really said or meant.  Politicians believe that their words do not require any truth behind them.  Only tell the people what they want to hear and they will quickly forget the lies and the doublespeak before re-election. 

Pharmaceutical companies advertise products with worse side effects than the symptom being treated, all in the name of profit.  Do these guys really believe that they are promoting a better standard of living?  Do they really believe their own words?  Are they being drugged?

The U.S. has more lawyers per capita than any other major nation on earth.  Why?  It is because of the irresponsibility of words, written, spoken, or heard.  Words have intent behind them and we are to understand those words in the context of their presentation.  Often, the best attorney wins the case at the expense of truth.  What a travesty this country has promoted.  What happened to the ethics of doing the right thing? 

Words can promote life, death, destruction, reconciliation, trust, mistrust, love, hate, and the list goes on.  What do your words convey- life or death?

The consumer confidence index is at a record low of 21.2 (1980 = 100).

consumer confidence

How can we be confident when we finally realize that we have been lied to by the leadership of the country?  What is the truth?  Who can we trust?  The people have been abused and misused by Wall Street and Washington passed laws that encouraged the ravaging of the average guy.  On top of that, the regulatory agencies looked the other way while schemes by Wall Street insiders such as Bernie Madoff were being implemented against the unsuspecting.  There were many individuals who blew the whistle on sub-prime mortgage lending practices only to be squelched.  Billions of dollars in bonuses have rewarded this unrighteous behavior and the victims are required to ultimately pay.

The power of the office caused the politicians to throw out their moral values and promote the status quo.  Special interest groups and lobbyists exacerbate the situation with campaign funds and other perks.  Our Heavenly Father has answered us according to the idols of our hearts:

Ezekiel 14:4  Therefore speak unto them, and say unto them, Thus saith the Lord GOD; Every man of the house of Israel that setteth up his idols in his heart, and putteth the stumblingblock of his iniquity before his face, and cometh to the prophet; I the LORD will answer him that cometh according to the multitude of his idols;

You reap what you sow.  If you manipulate words to promote deception, you will be deceived.  If you pervert words or contracts in an attempt of unrighteous gain, you will lose what you have.  Utter destruction is not far behind and Our Heavenly Father will reconcile the accounts.

Home Mortgage Jubilee Numbers

Friday, March 6th, 2009

According to the Federal Reserve, the total outstanding Home Mortgage Debt on September 30th, 2008 was $10.571 Trillion.  See: http://www.federalreserve.gov/releases/z1/Current/z1r-4.pdf  Page 94.

The U.S. Government as of this writing as committed $9 Trillion to the Financial System.  See: http://www.nytimes.com/interactive/2009/02/04/business/20090205-bailout-totals-graphic.html

Just add a little more and pay off everyone’s home.  That will immediately increase consumer spending and fix the problem.  It’s simple!

This would eliminate the sub-prime mortgage issue, the drop in asset value of borrowers, and the derivatives tied to non-performance of bonds issued against Fannie Mae & Freddie Mac.

With no mortgage payments, families would begin to ease up on their fear of losing net worth.  Savings would increase across the board and provide banks with a new source of cheap money to lend out.

Oops! Wait a minute, we really need to take care of Wall Street instead.  Sorry America.

1 oz of Gold = $10,000

Thursday, March 5th, 2009

 

When the U.S. was on the gold standard, other governments could demand payment in gold.  Under the regime of the French President Charles de Gaulle up to 1970, France reduced its dollar reserves, trading them for gold from the U.S. government, thereby reducing US economic influence abroad.  This led to President Richard Nixon eliminating the gold standard in 1971.

As of today, it is reported that the U.S. has Official US Gold holdings = 8,133.5 tonnes or 260,272,000 ounces. See: http://en.wikipedia.org/wiki/Official_gold_reserves  Of that, 147.3 million ounces are held at Fort Knox.  See: http://www.usmint.gov/about_the_mint/fun_facts/index.cfm?flash=no&action=fun_facts13  I suspect the balance is held in New York.

The U.S. debt held by Major Foreign Holders is $3,076,900,000,000 ($3.0769 Trillion)  See: http://www.treas.gov/tic/mfh.txt

If we were under the gold standard today, our gold would be valued by Foreign Holders of Debt as follows:

 

$3,076,900,000,000 divided by 260,272,000 ounces = $11,821.86

As U.S. Dollars continue to get created at breakneck speed, this disparity will be addressed by the marketplace.  Will a 200 year currency defy a 5,000 year currency?  You be the judge.