Servias Ministries Blog

I like to post what the experts are saying to media in other parts of the globe where there is less sanitizing occurring.  In a SPIEGEL interview, Harvard economist Carmen Reinhart:

“Reinhart: The best way of dealing with a debt overhang is to never get into one. Once you have one, what can you do? You can pray for higher growth, but good luck! Historically it doesn’t happen — you seldom just grow yourself out of debt. You need a combination of austerity, so that you don’t add further to the pile of debt, and higher inflation, which is effectively a subtle form of taxation …

SPIEGEL: … with the consequence that people are going to lose their savings?

Reinhart: No doubt, pensions are screwed. Governments have a lot of leverage on what kinds of assets pension funds hold. In France, for example, public pension funds have shifted money from shares (on the stock market) to government bonds. Not because their returns are great, but because it is more expedient for the government. Pension funds, domestic banks and insurance companies are the most captive audiences, because governments can just change the rules of the game.”

See: http://www.spiegel.de/international/business/interview-with-harvard-economist-carmen-reinhart-on-financial-repression-a-893213.html

My takeaway:  Savers and Pensions are screwed, the very point I was making last Sunday night.  Everyone who has studied economics knows that there is no painless way out of this financial mess.  The key is to not be the last one to respond.  Roughly 40% of the baby boomers are in deep trouble for they have virtually no savings to take and their Social Security will be minimal with the new changes that are expected to reduce their payments.  Kids, make room for mama and daddy.  It’s going to be cozy.

We are all called to obey the “rule of law”.  Except for Our Heavenly Father’s Law, governments will continually redefine the law to meet their agendas thus they will be inherently lawless.  Politicians sneak in changes to the law to support their upcoming agendas and then hide behind the new law as though they are statesmen.  What a sad commentary.

Concerning today’s smash on gold, the bullion and related shares I discussed last Sunday night suffered a huge drop today.  I want to thank the manipulators for pushing prices down so I could buy a little stock at a lower price. This market is not for the feint of heart.  The volatility is liable to increase from this point forward, maybe to seismic proportions.

Former Assistant of the US Treasury, Dr. Paul Craig Roberts, warned:

“This is an orchestration (the smash in gold).  It’s been going on now from the beginning of April.  Brokerage houses told their individual clients the word was out that hedge funds and institutional investors were going to be dumping gold and that they should get out in advance.

Then, a couple of days ago, Goldman Sachs announced there would be further departures from gold.  So what they are trying to do is scare the individual investor out of bullion.  Clearly there is something desperate going on…. “

Who is buying the gold at lower prices?  I suspect they are agents of the Kings of the East and they are smiling today!

John Williams of Shadowstats.com commented- “Despite Concerted Central Bank and Wall Street Efforts to Tarnish Gold, Gold Does Not Tarnish; It Remains the Primary Hedge Against Looming Fiscal Fiasco and Dollar Debasement”.

Fridays are always a focus on those who want to manipulate the overall market.  Some technical traders use weekly closing prices to determine their actions.  It is a scare tactic to shake out those who are moved by fear and greed.  It you have conviction about your position, you simply go for a walk for add to your position at lower prices.  For me, I like to add to my position whenever I can.  As always I make no recommendations to others and suggest that you seek the advice of a licensed professional.

Yesterday, I shared the Fed’s goal was to keep the public out of the physical gold market.  The following two graphs depict the scenario that scares them:

Source:http://people.hofstra.edu/jean-paul_rodrigue/jpr_blogs.html

Only Our Heavenly Father knows when or if the “Mania Phase” will occur.  If it does occur, the Fed’s investment of Trillions will be wasted.

We saw a coordinated attack on gold today and you can expect continued price volatility.

Goldman Sachs says its time to short gold: http://finance.yahoo.com/news/goldman-sachs-says-time-short-132705633.html

Their job as an agent to the powers that be is to drive down the price of gold.  Privately, I expect them to become buyers at a lower price.

The Federal Reserve has assured us that all is well while behind the scenes they are doing everything necessary to maintain “social passiveness”.  They lower the yields to push up bond prices thus show a wealth effect, they inject liquidity into the financial system that pushes up stock prices AND the wealth effect.  The problem is that they must continue intervening in the market that does not have any economic recovery in sight.

We have had over three years of quantitative easing and other countries are moving away from the Dollar due to this manipulation.  If this continues, the Fed loses control and they will not be able to contain inflation.  The Fed told the brokerage houses that hedge funds were going to sell their gold positions which filtered down to other owners who immediately liquidated their positions, a classic manipulation technique.

The Japanese are creating money to help save the value of the dollar.  This is only a short-term solution and their retirees will suffer.  Physical gold is being removed from the market and at some point there will be no physical gold left to buy.  That may come true for silver as well.

If gold and silver bullion were not a threat, the Fed would not be attacking it.  All they are doing is facilitating a massive transfer of wealth to the Eastern Kings.  It may soon be checkmate.

For those who joined me for Sunday night’s broadcast, I shared some of the investments I personally made.  Also, I indicated that I am not an investment advisor and strongly recommend that you seek wise counsel before you invest.  However, we all know that some people will still “pull the trigger” if they feel comfortable with what they hear.  After all, we are all adults and must accept some responsibility for our decisions.

If yesterday, you bought some of the stocks that I indicated I own and have added to my position as cash flow has allowed, the following screenshot (4/9/2013 10:07AM) provides you with some perspective of how fast prices move:

If you bought Newmont Mining yesterday just before the close and sold it at about 10:07 this morning, you would have made 2% on your investment of 1 day.  Not bad, considering the bank is paying you .7% for an entire year.  Timing is everything.  I didn’t sell.  I am holding on to my position, right or wrong.

As a reminder:

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