Servias Ministries Blog

In talking with Thom Mills, we believe this would be a good time to have a Finance and Economics-based broadcast in light of the global events now occurring. 

You can ask questions during this live session and I will give you my personal opinion as a response. Of course my opinion does not necessarily reflect the views of Servias Ministries, Inc. nor am I a licensed, qualified investment professional.

To participate and ask questions, go to  http://www.ustream.tv/channel/the-baptism-of-love 

Select the Chat tab to enter your questions or comments.  Hopefully you will find  this broadcast informative and timely.

We expect to return to our normal Bible study broadcast next week on Sunday at 3PM CDT.

The material in the broadcast and on the website have no regard to the specific investment objectives, financial situation, or particular needs of any visitor or participant in any broadcast. This site is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments.

References made to third parties are based on information obtained from sources believed to be reliable, but are not guaranteed as being accurate. Visitors should not regard it as a substitute for the exercise of their own judgment. Any opinions expressed in this site are subject to change without notice. Servias Ministries, Inc. is not under any obligation to update or keep current the information contained herein.

Servias Ministries, Inc.’s officers, directors and associates may have an interest in the securities or derivatives of any entities referred to in this material and accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. Our comments are an expression of opinion. While we believe our statements to be true, they always depend on the reliability of our own credible sources. We recommend that you consult with a licensed, qualified professional before making any investment decisions.

Yesterday was a day of investment banks attempting to scare the holders of gold, silver, and related stocks into submission.  Why would the Federal Reserve target such a small aspect of the financial system?  It is simple.  The price of gold determines the health of the U.S. Dollar.  In the short term the Fed can manipulate the price in hope of the public giving up on holding it as insurance against future chaos.  The problem is that gold is a global market and the Fed is not infinitely powerful though they seem to act like it at times.

What do David Stockman and Paul Craig Roberts have in common?  Both are former government officials in the area of Federal finance and both see a dollar collapse coming.  Neither are on the payroll of some institution paying them to keep quiet.  Both are concerned about our children’s and grandchildren’s future.  As the watchmen on the wall continue to cry out the Fed will continue to pull out all stops in attempting to keep the Titanic from sinking.  They will continue to fund investment banks for the purpose of pushing down gold, silver, and related stocks in the paper market by selling short.  This will only serve to cause the greatest short squeeze in financial history.  When this happens, the fat lady will be hitting the highest of notes and it will be deafening.

I have been putting my money where my mouth is.  Yesterday, I added to one of my stock positions with what little extra cash I had.  This stock was a screaming buy.  You must remember that when someone is selling in a down market, someone else is buying.  I am sure China and Russia are giddy about the price of gold dipping under $1,600 so they can add to their stockpiles with the devaluing dollars they are holding.  The Fed’s “Hail Mary” pass will be seen as the last great act of desperation before a new currency comes on the scene, whether it be backed by man or Our Heavenly Father.

Yesterday, the central planners orchestrated a coordinated takedown of gold, silver, and related shares.  Why?  It is my belief that they are extremely concerned that the current system is crumbling and they must first and foremost manage “social order”.

If the current system was strong, would the Federal Reserve need to inject $85 Billion per month into the system?  No.

If the current system was strong, would the central banks of China, Russia, and others be stockpiling gold?  No.

If the current system was strong, would the $222 Trillion of unfunded liabilities in U.S. be of a concern?  No.

If the current system was strong, would overall unemployment in the U.S. be at 22%?  No.

If the current system was strong, would savings rates be at epic lows for this long?  No.

If the current system was strong, would the velocity of money be at a 50 year low?  No.

If it is this bad, why aren’t people outraged?  One of the primary reasons is that the world is so complex it is hard for the average person to comprehend an underlying weakness in a complex system.  I see this all the time in the world of Information Technology (IT).  Inexperienced decision-makers promote their theory without any history to back them up.  When the unexpected occurs, their decisions will typically cause their system to crash or at least slow way down.  If you can dumb down the population and have them focus on entertainment, then they will be unaware as the system around them crashes.

Independent reporting by the major networks has gone astray.  In the 1950’s and 1960’s you could be assured that the 6PM newshour would report relevant topics uncensored by “big money”.  Now the “big money” owns the media outlets and sanitizes the news to fit their agenda.

One aspect of the “love of money” or greed is the fear of financial loss.  If you own silver and gold and you purchased them at higher prices, your emotions kick in and convince you that the investment was not wise.  This is where courage must kick in.  In spite of everything your being told, is the system really that solid?  We only have to look back at history and see that those in power misled the masses in order to carry out their agenda.  How many financial bubbles must pop before you finally conclude that you must think for yourself and understand that the motives expressed in the mainstream media are only a facade?

Gold is the primary financial barometer of what lies ahead and the central planners know it.  They have a nearly unlimited checkbook to push down the price of gold.  On the other side are all of those people who have similar concerns in the fragility of the current financial system.  Russia and China are among them.  The U.S. Dollar continues to depreciate and sink similar to that of the Titanic.  Instead of taking action to survive the coming pain, most people are moving their deck chairs closer to the band.  What song would you like to hear next?

Heavenly Father, we need help!

This article summarizes the hundreds of blogs that I have written over the last few years and demands ten minutes of your time:

http://www.nytimes.com/2013/03/31/opinion/sunday/sundown-in-america.html?pagewanted=all&_r=0

I wish I had better news but it is better not to live in denial.  At least you can do something in preparation of what is ahead.

What is counterparty risk?  It is the risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk is a risk to both parties and should be considered when evaluating a contract.

Are you involved in a counterparty risk contract?  If you have a bank account you are.  When you signed your signature card, you entered a contract with the bank.  When you deposit money in the bank, it becomes a liability of the bank, they owe you money.  Until you have all the money from the bank in your hand, there is counterparty risk.  But wait, I have FDIC insurance to protect me from the insolvency of my bank.  For those with less than $250,000 in the bank (that is most of us), this statement is true.  However, the FDIC is grossly underfunded and if there were a major banking solvency event, you are at risk just like the big boys.

The powers that be have moved us away from currency in our pockets to digital forms of money they can control.  The convenience of credit and debit cards has lulled us into a position of greater risk… and control.  As things get dicey with the greed running rampant through the financial system over the last few decades, we will find out who really trusts Our Heavenly Father when the fragility of the current banking system is fully exposed.  Corporations and other large depositors are at notable risk.  We are living at a time where there is no past example of deliverance of such a system.  Those in charge are more interested in their personal survival than the good of the people.

The only long-term solution to problem of this size and complexity lies with Our Heavenly Father.  No man walking the earth has enough wisdom, understanding, knowledge, and skill to bring forth a successful conclusion to the epic events that lie ahead.  It would appear the Love has exposed and initiated this sequence of events.  Cyprus means Love in Scripture.  How appropriate that the counterparty risks of simple bank deposits would be exposed in such a fashion!