Servias Ministries Blog

Wealth is disappearing at an alarming rate as the markets continue to take a beating.  All investments are down and none are immune.  Wealthy investors with all of their resources were unable to respond from this Black Swan event.

2008 Year to date performance of notable investors:

• Warren Buffett (Berkshire Hathaway): -43%
• Ken Hebner (CMG Focus Fund) -56%
• Harry Lange (Fidelity Magellan): -59%
• Bill Miller (Legg Mason Value Trust) -50%
• Ken Griffin (Citadel): -44%
• Carl Icahn (Icahn Enterprises): -81%
• T. Boone Pickens: Down $2 billion since July
• Kirk Kerkorian: Down $693 million on his Ford shares alone

The crisis continues to gain momentum and there appears to be no real leadership.  This vacuum will be filled by somebody or "something".  As we race to my target date of 1/11/11, articles are beginning to appear with the "2011" year as the focus.  The following article lists 30 reasons for the Great Depression II:

http://www.marketwatch.com/news/story/well-great-depression-2-2011/story.aspx?guid={B28B49B5-EFD1-4941-B57E-A2BA1545BA09}&dist=TNMostRead

These 30 reasons are all plausible.  The arrogance of America is coming home to roost.  We have no fans in foreign countries to bail us out.  It will be a humbling experience to face the reality once the curtains of illusion are drawn back.  The perceived bully who has invoked its national interests above the sovereignty of other countries will receive little or no mercy from its enemies.  Were we right to pursue this foreign policy?  I am not qualified or adequately informed to make an educated guess.  However, I am qualified as a fruit inspector to view the fruit to determine whether it be "good or bad".  We can and should judge the fruits.  We are not equipped to judge the hearts of men, only Our Heavenly Father is.  9/11 should have been a time of repentance, not defiance.  Our covering was lifted then.  The very place where the U.S. was attacked turns out to be the same place where the weapons of financial mass destruction were created.  What an irony!

I expect Prayer Vigils will spring up around the world.  As the U.S. gets deeper into the crisis, all countries will feel the effects and many will suffer its consequences.  Just as Israel turned away from GOD in the Book of Judges, catastrophe brought them back on their knees… over and over.  I suspect a good investment would be in the manufacture of knee pads!

The practice of judgment restricts your perception of life.  There are only two mistakes of knowledge, and both of them are activated by judgment.  The first mistake is knowing "wrongly".  The second mistake is assuming that reality is limited to what you know.  Man’s judgment is flawed. 

An illusion is a distortion of the senses, revealing how the brain normally organizes and interprets sensory stimulation. While illusions distort reality, they are generally shared by most people, a situation of "knowing wrongly".  Those is currently are in power understand the ease by which you can convince the public of any illusion.  Starting in childhood we are convinced the written word is truth and news reporting is accurate.  In the movie "Wagging the dog", this phenomenon is exposed.  Robert DeNiro starred as a Washington spinmaster who needed a war to distract public’s attention from a sex scandal involving the President.  In Alan Greenspan’s tenure at the Fed, he distracted the consumer to raise private debt levels to 300% of the Gross Domestic Product (GDP).  Remember when Alan Greenspan voiced his support of ARM mortgages?  Did you know that Bill Clinton strong armed banks into sub-prime lending back in 1999?  As government leaders (on both sides of the aisle) assured the public "all is well" with the economy, the private sector’s debt levels were growing astronomically.  Risk takers became gamblers as they entered the housing market to flip their investments.  News media reported the successes, never the losses.  The illusion of wealth permeated all walks of life.  Those who could not qualify for a mortgage suddenly bought houses they could only dream about a decade earlier.  ARM mortgages set the trap for future bankruptcy.

The illusion turned into delusion- an erroneous belief that is held in the face of evidence to the contrary.  People hold to a belief that history is not relevant to their situation hence "experience is the best teacher".  I would suggest that someone else’s history is the best teacher.  My older brother received many corrective interviews by my dad when I was young.  Those interviews were followed by the "board of education".  I learned from his pain.  "Mama didn’t raise no dummy".  The evidence of a disastrous end to the credit bubble surfaced years ago.  It was no different during the Tech bubble.  Technology companies that did not generate profits were going to fail, period!  The investing public operated under an illusion until the bubble busted.  Revelation from Our Heavenly Father provides the evidence to bust our illusions.  We must not be delusional when that revelation comes.  We must seek The Father’s perfect plan, will, and purpose rather than the idols of our hearts.  If we pursue His Heart in love, we will be spared from the trappings of illusion and delusion.

Once illusion and delusion have run the course, confusion sets in.  "How could I have been so stupid?" is frequently asked.  "What was I thinking?’  "How did I let my guard down?"  When our blindness is removed the realities become obvious.  Without revelation, confusion takes the stage.  When confused, people tend to do nothing and make no decisions because they become fearful of the consequences.  This is were the public is today.  They have lost confidence in the current financial system.  It duped them.  They trusted the leadership to look out for their best interest.  Their reality was limited to what they thought they knew.  Their judgment was flawed in their decision making efforts.  This is exactly why you must seek wisdom from above rather than earthly wisdom.  Our Heavenly Father has perfect knowledge of reality.  He knows men’s hearts, we do not.

This credit bubble has burst and we must now deal with the consequences.  By interrupting the natural cycle of expansion, recession, depression, and recovery, the system must be cleansed of non-productive services, products, and assets.  By deferring the pain, it will be more severe.  How severe? Only GOD knows!  You might want to ask HIM.

The Federal Reserve Gold Certificate Ratio (FRGCR) appears to be the only real solution to the mother of all crises.  Currency and financial stability will only come by placing a "stake in the ground".  The FRGCR provides the stability needed.  Businesses will not make long term investments without some stabilization in the financial system.  Trust is eroding on a daily basis and world leaders have not come to an agreement on the solution.  The U.S. Dollar was backed by gold for nearly 30 years which provided global stability of currency markets.  Dollars were accepted around the world as payment for goods and services.  The current destabilization is aggravated by the fact that all global currencies are fiat currencies without any backing by gold.

The "Currency Wobble" is like a spinning top and as its velocity slows down, the equilibrium is replaced by a wobble ultimately resulting in failure.  We may not be at the edge, but I can see if from here.  Stability is what is needed.  By devaluing the U.S. Dollar to a specific supported price per ounce of gold, the globe could then begin stabilization.  China and Russia have been increasing their gold reserves.  Iran has been trading paper assets for gold as well.

The Federal Reserve is already devaluing the U.S. currency by printing excessive amounts of U.S. Dollars in response to the bailout requirements.  The line for the Fed’s begging bowl is increasing.  Credit card companies are becoming "banks" to get their number for the line.  The "little 3" automakers want $50 billion without strings attached.  Their management is playing Russian roulette with 3 million jobs.  Toyota began its Prius project in the 90’s but GM was so short-sided in its world view of energy demands, it was busy investing in gas guzzlers.  America’s dominance in business appears to be dying a slow death.  We are losing our "edge".

The G20 met this last weekend to solve the global financial crisis.  It appears that nothing much happened at the summit.  I imagine the competing super egos at the meeting were busy attempting to control the outcome with little or no consensus.  This crisis will not be solved without pain.  The opiate of gain promoted this addiction to a quick and easy buck.  The very people who are attempting to solve the crisis benefited from the profits made in the crisis.  You don’t expect them to clean house do you?

There was an article making its way through the Internet concerning a new gold standard.  It suggested that a currency devaluation of 10 to 1 take place and if you had $1,000 of the old currency, you would be given $10,000 of the new currency.  This would immediately cause everyone to have more money to spend.  All creditors would take a 90% writedown on their loan portfolio.  I’m sure they would lobby against this plan.  If their loans did not depreciate in value then the revaluation would be of no consequence.  On the other hand if the Federal Reserve marked the U.S. Dollar to gold at a ratio of $3,000 per ounce, global stabilization would begin to occur.  Why $3,000?  That is a rough estimate of gold held by the U.S. relative to its current balance sheet.  If the Fed continues to print money in reckless abandon, the stabilization price could hit $5,000.  This would be a windfall for those holding gold but that is a small percentage of the population of the world.

In about 49 months we will be at December 21st, 2012.  The Long Count Calendar of the Ancient Mayans ends on December 21st 2012. There isn’t much information regarding what the Mayans thought would occur in 2012, but the consensus of opinion is that there will be great change. To some people this means a positive, spiritual change.  Could this be tied to the "mother of all crises" we are currently dealing with?  Could this be the culmination point of man’s current view of control and exploitation being replaced by Love?

There should be no question that Wall Street with the aid of the last two Administrations (both political parties) and Congress have sowed seeds of financial mass destruction.  Bill Clinton promoted sub-prime lending and strong armed banks to comply, Congress wrote law omitting credit default swaps (CDS) from being classified as insurance thus promoting exorbitant leverage and reckless financial instruments to be distributed globally, and the Bush Administration kept the party alive.  The party is over and there is a mess to clean up.  The decision has been made to sacrifice the taxpayer rather than the corporations that were complicit in creating the problem.  Where were the independent thinkers?  Why did no one pay attention to Warren Buffet’s warning about the financial weapons of mass destruction when he bought a company and analyzed the problem on March 4th, 2003?

The U.S. Treasury and the Fed will create new money to deal with the evaporation of capital and it will create a tsunami of oncoming US Treasury debt. This will 1) crowd-out private sector funding of debt, 2) force the US Treasury yield curve to steepen, 3) put downward pressure on the real economy, 4) undermine the US’ AAA rating, 5) and weaken the US dollar.

Other countries really want out of a dollar denominated world.  They have been bamboozled by the U.S. and Wall Street.  We have seen the repercussions of a poor monetary policy in other countries never considering it could happen to the U.S.  The seeds of greed, power, and the love of money have been sown.

Last week, the morning after the election (November 5th), I started a blog titled "666" but kept delaying its completion.  Later I read a blog at http://www.gods-kingdom-ministries.org/weblog/WebPosting.cfm?LogID=1229 where the number popped up in Barak Obama’s home state of Illinois.  If you have been reading my earlier blogs you may remember that I am focused on 1/11/11 as being a "watch date" for an economic event, the culmination of the perfect storm, or the beginning of a new era.  We shall see.  We are 25 months away from this date and it currently appears that the perfect storm may happen then based on the actions being taken by world leaders.  It is time to get your house in order.

Consider and ponder the following words of Jesus:

Luke 6:35-38

"But love your enemies, do good, and lend, hoping for nothing in return; and your reward will be great, and you will be sons of the Most High. For He is kind to the unthankful and evil.

"Therefore be merciful, just as your Father also is merciful.

"Judge not, and you shall not be judged. Condemn not, and you shall not be condemned. Forgive, and you will be forgiven.

"Give, and it will be given to you: good measure, pressed down, shaken together, and running over will be put into your bosom. For with the same measure that you use, it will be measured back to you."

Our Heavenly Father created a global equilibrium.  The Spirit resides everywhere, there is no void or nothingness on earth.  Each of us prays to The Most High God without regard of time or space knowing that He hears our prayers.  Jesus commanded us to give and assured us that the giving would be fruitful.  If you sow judgment, you will reap judgment, if you so condemnation, you will reap condemnation.  However, if you sow love, you will reap love.

The funds my wife and I have represent our fruit of working, saving, giving, and discerning what and where to distribute.  There is a tendency to dwell on the bad news and hoard, an act of fear.  Our Heavenly Father promoted buying and selling of goods.  Jesus spoke of this in the Parable of the Talents.  Jesus also promoted giving motivated by love.  In recent decades the "church" has misused the Scriptures in order to extract and exploit the congregation.  Frankly, it left a bad taste in everyone’s mouth.  Further, it gave people an excuse not to give, due to the abuse.  It is time to shed that mentality.  There are people hurting and in need.

Servias Ministries was set up as a conduit for giving and receiving, often anonymously.  We have people and projects that need money.  We distribute 100% of all contributions received.  Our Officers and Directors pay for all administrative and operational costs.  We are not interested in exploiting the poor and hungry, we give to those in need.  We have a special heart for children as did Jesus.  If you are interested in sending your tithe and/or charitable contributions to us for distribution, we would welcome your participation.  Sowing in Love produces good fruit.  To send a contribution of any amount, mail it to:

Servias Ministries, Inc.

PO Box 1471

Bethany, OK 73008

At yearend we will send a summary contribution letter for tax purposes.

The coming era will be motivated by love, not lust.  The lust of the current era will be judged by Our Heavenly Father and be corrected in the appropriate fashion.  We will continue to give in love expecting love to grow and consume the earth.

November 15th, 2008 may go down in history as the beginning of the end of the U.S. Dollar’s global supremacy.  The G20 nations will meet and discuss the global financial crisis.  Since the Bretton Woods Accord, the Dollar has operated as the global reserve currency, the currency of business.

In 1944, the Bretton Woods system of monetary management established the rules for commercial and financial relations among the world’s major industrial states. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states.  Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944.  Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton Woods established the International Bank for Reconstruction and Development (IBRD) (now one of five institutions in the World Bank Group) and the International Monetary Fund (IMF). These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.

The Russian Rouble has depreciated in value and the Russian Central Bank has raised its key lending rate to 12% to strengthen the currency.  The U.S. cannot do that without thrusting the U.S. into a deep depression.  What is the alternative for the U.S.? A devaluation of the Dollar.  As the world’s reserve currency the Dollar needs to show stability.  This was accomplished by pegging the Dollar to gold for 25 years until Richard Nixon took us off the standard.  Without a firm relationship with gold, a fiat currency is destined to depreciate which causes the economy to hyper-inflate.  Your dollars will be worth less. 

What is the solution?  The U.S. Dollar should be pegged against gold again.  The equilibrium price is currently between $3,000 and $5,000 per ounce.  However, that will change as the Federal Reserve continues to create money out of thin air… mighty thin air!  The Gold Ratio would then create stability and other currencies would begin to reach an exchange rate equilibrium.  I don’t see any other acceptable solution for all parties holding U.S. Dollars.  Other alternatives are failing thus the need for a "G20" meeting.  The following graph provides a perspective of the Fed’s actions:

What do the following have in common:

Freddie Mac, Fannie Mae, AIG, GM, Ford, Chrysler, American Express, Wall Street Investment Banks?

They all need cash and are going to the Fed’s begging bowl.  The following graph provides a look at Greenspan’s crisis vs. Bernanke’s.  What a difference in the magnitude.

Gold and silver are both depressed from the de-leveraging and selling of assets to raise cash.  Let us not forget the continued manipulation efforts to keep the true barometers of financial health from skyrocketing.  Once the general public has figured out that the only solution left for the leaders is to devalue the U.S. Dollar, there will be a buying tsunami of gold and related gold stocks.  The manipulation, illusion, and deception will cease.

The term "addiction" is used in many contexts to describe an obsession, compulsion, or excessive physical dependence or psychological dependence, such as: drug addiction, alcoholism, compulsive overeating, problem gambling, computer addiction, etc.

The global economy led by the Americans are pursuing an addiction to complexity and the end game of complexity is total collapse.  With over 35 years of technology expertise I have seen many aspects of the technology revolution: mainframes, 80 column card readers, 96 column card readers, mini-computers, Apple II and IBM DOS systems, 8" floppy disks, 2.5 MB removable hard drives, etc.  Each advancement was seen with excitement.  Miniaturization of components added to an expectation of improving our lives, reducing the work week, and providing for a more stable environment.  The problem with that expectation is an increase in technology breeds and increase in complexity resulting in an exponential increase in energy to support this type of ecosystem.

An increase in complexity moved to the balance sheets of global financial institutions.  Computer models have replaced rational thinking.  The IRS code is so complex that there is no one person who could claim full understanding of the tax law.  Current tax returns must be done by "tax software" if they contain any sophisticated investments at all.  Stock trading can be done by a click of a mouse now.  This eliminates "dwelling" on an investment prior to the act of investment and that is why that 90-95% of day traders lose money.

Don’t get me wrong, proper use of technology is beneficial just as a glass of wine is in line with Scripture.  Excess is where the problem lies.  Who determines excess?  The one in authority.  How should the determination be made?  By seeking revelation from above.  I met a man who was a CEO of a Minneapolis manufacturing company.  At lunch, he shared that all of his major decisions came in the early morning as he was seeking the Lord’s perfect will for the company.  He was highly successful and retired at the top of his game.

Wall Street is preparing to hand out bonuses.  Those bonuses are based on performance, creativity, and impact to the bottom line.  Everybody is looking for an edge and they think additional technology is the answer served up as new financial models, faster computers, more monitors, and quicker communications lines.  It has been shown that an investor could have made 3 or 4 major investments in minutes at critical points in the last 40 years, and would have outperformed all of the major investment strategies publicized today which utilizes computer modeling trading strategies scrutinized hourly for years.

At various times throughout history Our Heavenly Father has placed society into an intervention program.  Withdrawal can be tough.  People have become "addicted" to idols, power, conquests, quail, murmuring to name a few.  Judgment became necessary as the children of Israel continually looked away from their relationship with Jehovah and pursued other avenues.  The Book of Judges provides a great example of this recurring problem.

Addiction requires intervention to break the cycle.  The enablers must be removed from the equation for an interruption to occur.  Frequently the addicted person (or society) must hit bottom in order to come to the realization of exactly what got them to the place they are at.  Up cycles are balanced out by down cycles both in length and severity.  Seven years of plenty are followed by seven years of famine.

It appears that most economic thinking about the current crisis assumes we want to retain the current status quo or way of life.  I believe a paradigm shift must occur to rid ourselves of this system destined to fail.  People think they are entitled to things and services without working for them in an honest manner utilizing the gifts they have been given by our Creator.  A reduction in complexity and an increase in revelation will solve the problem!

Phl 4:8  Finally, brethren, whatsoever things are true, whatsoever things [are] honest, whatsoever things [are] just, whatsoever things [are] pure, whatsoever things [are] lovely, whatsoever things [are] of good report; if [there be] any virtue, and if [there be] any praise, think on these things.

Honesty is the human quality of communicating and acting truthfully.  If there is anything we learned from the recent financial crisis is that there appears to be no honesty at any level of leadership.  Men have perverted the definition of honesty by replacing "truth" with "sanitized facts".  Truth contains revelation, facts may not.  Leaders use double speak to tickle the ears of the listener and utilize the deep imbedded fear of appearing stupid to restrain the listener from asking for clarification to what he or she just heard.  For example, Alan Greenspan was giving a report to Congress and was known for his "double speak".  He used the word "conundrum".  Why didn’t he just use one of the words: puzzle, riddle, or problem?  Isn’t communication about mutual understanding of the subject being conveyed?  He did not inform Congress in an open and honest fashion but hid the truth hoping that the Fed’s theories would just work out.

What mankind needs now is honesty but most really don’t want it.  What most people want are answers that are in line with their beliefs and motives, right or wrong.  In Ezekiel chapter 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;", Our Heavenly Father reveals to us that He will allow the perpetuation of idols as a judgment.  This is critical to our understanding and growth.  The sub-prime mortgage crisis had people with idols on both sides of the transaction- the mortgage banker with money as an idol and the borrower with the bigger house as an idol.  Ego was at the center of the problem.  The ego promotes idols in one’s life.  Be careful what you pray for.  Check your heart.

The world leaders are trying to restore confidence in the market but confidence requires honesty.  Scriptural Laws require equal weights and measures which are attributes of honesty.  The current financial system was originally founded on equal weights and measures called "the gold standard" but removed it in 1971 because leaders believed it hindered their ability to control the system.  That was the beginning of the current financial crisis.  Once the creation of money had its "governor" removed, men couldn’t resist being dishonest.  Dishonesty is so prevalent that it is difficult to naturally discern who is telling the truth.  Society has allowed dishonesty to permeate every level of government and the current crisis has caused this reality to be exposed.  With subtlety Hank Paulson wanted no judicial review of the bailout participants.  Why?  He knew that regulators would expose the magnitude of dishonesty inherent in the system.  Investment banks used dishonesty and deception to spread toxic paper around the globe.

There is a dramatic shift coming.  In Isa 28:17 "Judgment also will I lay to the line, and righteousness to the plummet: and the hail shall sweep away the refuge of lies, and the waters shall overflow the hiding place." we are told that hail (truth) shall expose the lies.  Honesty is coming soon!

The disconnect continues.  Today, the real price of silver is $17.03 whereas the paper market price is $8.94.  Something has gotta give!  The U.S Congress, Paulson, and Bernanke need to reread the story of the Great Depression.  They are effectively paralleling everything done in the 1929-1934 time frame.  The increase in market volatility adds to the fear spreading around the globe.  The Bernanke helicopter drop of money did not work.  The staging area is now being prepared with a squadron of B-52’s to drop enough cash into the global economy which will guarantee an eventual devaluation of the U.S. Dollar.

All prices are in decline as a full paper asset liquidation is at hand.  There will be no asset left untouched by this mass liquidation.  Investors are running for the door and the music has stopped.  I believe that once the liquidation is complete, hard asset prices will skyrocket.  Oil in the ground is a real liquid asset.  Gold bullion has no liability.  The premiums for bullion are unbelievable.  Dealers cannot get the product at the stated paper price.  Nobody is selling!  Gold and silver prices will reconnect with supply and demand soon.

The next president will have monumental problems to deal with.  If the next president raises taxes, the economy will dip deeper than currently projected.  Just as in the Book of Judges, people repeat history because they continue to do what is right "in their own eyes" rather than seek Our Heavenly Father’s Wisdom.

The Ten Commandments, Laws, and Statutes were given to us for our safety.  Those laws, if followed, would ensure a peaceful and productive society.  The basis of the entire 613 commandments, laws, and statutes is Love.  Society has departed from love.  Technology has promoted separation and isolation of relationships.  Face to face communication has been replaced by the telephone, email, and text messages.  Complexity has replaced simplicity in business.  Everyone is just too busy!  Customer service is "history" and technology is a pathetic attempt to replace the needed human assessment in problem determination.  Market traders have based their views on computer programs, technical indicators, and an abundance of facts.  They were wrong!  Technology is to serve man but man seems to be serving technology.  Alan Greenspan was grilled by legislators this week and he called the current crisis a "financial tsunami".  (Hmmm!  I wonder if he has been reading our blogs?  Our view is based on the Laws of GOD, not man.)  His excuse was that none of the Fed’s sophisticated computer models predicted the crisis.

From a macro view, the U.S. is heading towards default.  Next year the U.S. deficit will exceed $1 Trillion.  The U.S. cannot guarantee everything under the sun. Only our Heavenly Father could do that.  The global market is larger than any government.

What is the solution?  A paradigm shift in thinking must occur and it will.  As in the Book of Judges, the people will repent and turn back to The Lord.  Fear and greed are alternatives to Love.  Love will be sought by the repentant heart.  Peoples’ eyes will be opened to understand what is really important.  McMansions will no longer be the focus.  Technology will lose its luster as people finally realize that technology will not solve the core problems confronting them.  Less will be more.  Anything classified as "high maintenance" will be purged.  People will look back in disbelief as they ponder their failures in nurturing relationships with family and friends.  The good news is that Love forgives and wipes the slate of history clean.  As Love sweeps through a country, Heavenly Wisdom will provide solutions to those "unsolvable" problems.  I believe the revelation of unlocking "free energy" will be given to those who will not exploit it but as an expression of love, they will propagate the technology for all to enjoy. 

The medical field will embrace the revelation of "Biological Conductance" methodology as a core strategy for improving overall health of the population thus reducing their reliance on pharmaceutical protocols.  Removal of toxins and other interferences from the human body will promote health and reduce the need for an ever increasing healthcare infrastructure.  Anyone who has been healed by the anointing of GOD of a disease can appreciate the fact that disease responds to other external, non-pharmaceutical factors.  In 1984, I was healed of hepatitis in 7 days versus the 6 to 8 weeks projected by my physician.  He could not understand the miracle of healing.  Researchers are discovering the "GOD" particle and will be given further revelation as they pursue love rather than exploitation.  The ultimate result will be a dramatic decrease in health insurance and related healthcare costs.

Our debt based society will experience a jubilee but it will not occur as most predict.  Cursed time is followed by a time of cleansing ultimately resulting in a jubilee.  The temple must be cleansed of the unrighteousness and lawlessness.  However, the temple cannot be left empty.  Love will fill the temple and the Glory of The Lord will shine forth!

With all of the volatility in the market, people are looking for an oracle.  What is an oracle?  An oracle is a person or agency considered to be a source of wise counsel or prophetic opinion; an infallible authority, usually spiritual in nature. 

To become an oracle to a select group of people, do the following:

Step 1.  Select 10,000 people and send half of them a letter stating the the stock market will end up next week; to the other half, send a letter stating that the market will be down during the same time period.  Keep track of which people get the letters.

Step 2.  Once the projected time has passed, divide the group of 5,000 who received the successful prediction in half.  Once again send half of them a letter stating the the stock market will end up next week; to the other half, send a letter stating that the market will be down during the same time period. 

Step 3. Repeat step 2 with the remaining 2,500.

Step 4. Now with the remaining 1,250 recipients, tell them it is time to pay for a $1,000 investor newsletter subscription since you have proven to them you were right 100% of the time in calling the last 3 market moves.

The media is constantly quoting pundits who were correct in calling tops and bottoms of various markets.  If Warren Buffet was right in every investing decision, he would have all the money in the world.  He simply looks at fundamentals and trends, puts money in, and then waits for success.  He jumped out of silver way before it hit its recent peak.  He made money, just not as much as he could.

In a structured eco-system, the structure itself defends its borders.  Our goal should be to pursue GOD’S Will and Plan.  We should seek a Word from Heaven to help guide us in this structured world.  HE created this world of structure but is not limited by it.  Our Heavenly Father is not restricted to time and thus has revelation directly relating to our future.  HE speaks to His people called by HIS Name.  Those people who have been given eyes to see and ears to hear are able to hear revelation specific to their callings.  A true Oracle will be motivated by love, not money!

This term "Great Depression II" is getting more publicity in the general media.  It would appear that the U.S. Government is falling into the same trap as they did in the 1929-1933 time frame.  The U.S. is teetering on what might be called the "Great, Great Depression".  The reason is that the U.S. is a different country now.  Contraction is ahead!

Back in 1929 we were a creditor nation, not a debtor nation, and this allowed us to buy gold and prop up our Dollar.  Until the early 70’s we were an exporter of energy whereas now we are the largest importer of energy with a coming energy crisis on the horizon.  In 1929 we were a manufacturing/agricultural based economy and now we are a services oriented economy.

In the last six weeks, the Federal Reserve has doubled its balance sheet.  This is hyper-inflationary.  Eventually, the result of this dramatic increase in money supply will result in higher prices.

Tax increases will occur.  Federal, State, and Local governments will see a shortfall of tax receipts with the decline in the Gross Domestic Product (GDP).  Housing price declines will lower real estate tax receipts and the downward spiral will cause the various agencies to request higher tax rates.

Loose Credit has ended.  Banks will return to historic lending practices requiring cash flow, good credit, and good character, the 3 C’S.  These lending practices were sidelined in recent years.  What were they thinking???

The consumer is re-trenching and the sentiment will promote reduced credit requests.  As consumers get increasingly pessimistic about the economy, their jobs, their retirement, their ability to generate cash, they will move into "protect mode".  Only conservative and necessary purchases will be made.  The good times are over for most consumers.

Investors will seek out "insurance" to park their money.  It is becoming increasingly difficult to retain value.  The Federal Reserve has double its balance sheet in record time.  This will ultimately lead to a devaluation of the U.S. Dollar within 12 – 18 months.  Where do you park your money, the storehouse of value?  They keep attempting to "fix" the problem by throwing more U.S. Dollars at it.  As the world’s reserve currency, the U.S. inflationary measures affect the entire globe. 

In my opinion, gold is the only viable insurance. There are too many dollars being created for the US dollar to be a viable insurance option.  Clearly equities (with the exception of precious metals shares) are not a viable option especially with all the volatility.  Am I saying to sell your equity positions? No.  You must decide if your stocks fit your long term plan.  US Treasury bills are not viable insurance because they might get downgraded due to this huge influx mentioned above.  General commodities have been viable, but they are too volatile.  Banks cannot offer insurance as they are insolvent in some cases.  Insurance companies cannot offer sound insurance as AIG has proven.  Money market funds are not insurance. They are being propped up by the U.S. Government on a temporary basis.  Retirement programs are no longer insurance, corporations are attempting to remove any and all responsibility to retirees.  Jobs are no longer insurance since many companies are run by lawyers and accountants who have no interest in the individual employees, only the bottom line.  Equity in your home is not insurance because in many cases, it simply does not exist.

Once the masses figure this out, gold and silver will move up in notable fashion.  In the meantime, I expect consumer credit to contract and major purchases will be delayed to protect cashflow.

On the lighter side, New Stock Market Terms:

CEO –Chief Embezzlement Officer.

CFO– Corporate  Fraud Officer.

BULL  MARKET — A random  market movement causing an investor to mistake himself for a financial  genius.

BEAR  MARKET — A 6 to 18  month period when the kids get no allowance, the wife gets no  jewelry, and the husband gets no sex.

VALUE  INVESTING — The art  of buying low and selling lower.

P/E  RATIO — The  percentage of investors wetting their pants as the market keeps  crashing.

BROKER — What my  broker has made me.

STANDARD &  POOR — Your life  in a nutshell.

STOCK  ANALYST — Idiot who  just downgraded your stock.

STOCK  SPLIT — When your  ex-wife and her lawyer split your assets equally between  themselves.

FINANCIAL  PLANNER — A guy  whose phone has been disconnected.

MARKET  CORRECTION — The day  after you buy stocks.

CASH  FLOW– The  movement your money makes as it disappears down the  toilet.

YAHOO — What you  yell after selling it to some poor sucker for $240 per  share.

WINDOWS — What you  jump out of when you’re the sucker who bought Yahoo @ $240 per  share.

INSTITUTIONAL  INVESTOR — Past year  investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in  use.

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