Servias Ministries Blog

In Tokyo, there are people waiting in three hour lines to buy gold.  They see a train wreck coming to their economy.  Michael Pento was erased this week from a CNBC financial market clip because of his assessment that the Fed is insolvent.  John Williams of shadowstats.com reported:

“There has been no economic recovery since the crisis broke almost eight years ago, there is no recovery pending, and official economic reporting likely is turning down anew.  Accordingly, economic reporting in the month ahead should be increasingly negative and distressing to the domestic and global financial markets.’’

To subscribe to John’s newsletter: www.shadowstats.com/subscribe

Japan’s debt load is ever-increasing.  The same is true for the United States.  The 100 year experiment using a central bank went awry when the powers that be left the gold standard.  That is the day they disconnected from “truth”.  Why?  Currencies could now be manipulated by men in a “self-interest” fashion.  Thus the ego of man controlled the financial affairs of the entire population.  Once again, men thought they knew better than Our Heavenly Father.  Sounds a little bit like the same motivation in the Garden of Eden.  Same song, different verse.

I report these events not to tickle your ears or provide small talk for parties.  I hope these realities will move you toward a closer relationship with Our Heavenly Father.  There are many credible men who have the same concern as mine in regards to the state of the current economic system.  The one thing nobody knows is exactly when and how the current system will disintegrate.  They all know in part.  Not one of them can comprehend the whole complexity of the current system.  Neither can those who are currently in power.  There is only One who can fully grasp how the entire system is currently operating… Our Heavenly Father.  HE is the only One WHO can navigate you and me into safety as the current system falls into complete disarray.  None of us should be led by fear of the coming events however they unfold.  Our trust should be based on our relationship with Our Heavenly Father.  Suicides of bankers around the world are now in epic proportions.  Their trust in money to keep them above the law has failed them.  Their world is coming to an end.  They opted for the coward’s way out.  The empty promises of greed were realized.

The geopolitical picture is getting ugly as well.  The U.S. is once again threatening to use economic weapons of mass destruction.  I am not optimistic about the path they are on.  It definitely looks like they are playing into the historic demise of Mystery Babylon, without any conscious intentions of course.  Men’s greed and egos have once again moved towards destruction of an economic system.  This time however, the system is truly global.  Never before has there been such a far-reaching scenario with the advent of technology.  There are no truly isolated economies now.  There is nowhere to run and hide.  In HIS Wisdom, Our Heavenly Father placed you right where you are at.  You should rely on HIM to guide you through the economic minefield ahead.

According to financial expert Jim Rickards, the Federal Reserve Bank’s leverage is currently 80 to 1, a truly insolvent condition.  For each dollar they have, there are 80 dollars of liability.  He expects the dollar to drop 80 to 90 percent in value.  On a relative basis, gold will appear to go up in value.  Silver is expected to do the same.

Jim is adamant that the collapse of the dollar is coming.  This is not the end of the world, just the U.S. Dollar.

The Fed is not transparent so there is no way to predict how severe their situation really is.  The top five banks who were at risk in 2008 are now bigger and riskier than they were then.  There are less community banks now than there were in 2008 thus the system’s risk is more concentrated.  In addition, other major countries such as Russia, are threatening to dump the dollar as their standard payment medium.  You can see why Obama is so vocal about Putin.  I believe it is really about protecting the dollar’s reserve status.  Obama is charged with keeping the party going as long as possible.

All the major central banks have the same problem.  Their rationalization is that they can simply print more money.  The problem is that as they print more money, inflation heats up to a potentially “hyper” state.  Gold keeps everyone honest because you can’t just go create more to accommodate your policy.  $8,000 to $10,000 gold is not an unreasonable expectation.  It isn’t that gold’s value is up, the value of the dollar will go down further.  It is all about protecting purchasing power.

How long do we have before the dollar collapses in value?  What will precipitate the destruction the dollar?  The reality is that we have an unstable complex system.  Only Our Heavenly Father knows the one event that will trigger the domino effect of financial destruction.  Sixty year financial veteran Richard Russell says:

“In the investment world, of course, peace of mind is a particularly rare commodity.  The rise in the stock market since its 2009 low has now exceeded five years.  Common sense tells us that the longer an advance continues, the nearer it is to its conclusion.  In the low area of 2009, fear was the dominant emotion.  As the advance pushes into its sixth year, fear has given way to boldness and greed.  On this thesis alone, I have elected to move out of common stocks.  After long consideration, I have concluded that the area I prefer to be in is pure wealth.

By pure wealth, I mean physical silver and gold.  That’s my best advice for subscribers today. “  To subscribe to his newsletter: https://ww2.dowtheoryletters.com/ServicesOnline.nsf/Subscription+Form?OpenForm

The system is now so unstable that the collapse can occur at any time.  There is no need to be afraid of this event.  Simply prepare as best you can.  Maintain extra food supply and rotate it.  Buy gold and/or silver as you can afford it.  Keep enough cash available in case there is a bank holiday.  Stay liquid.  Revenue producing agri-land is always a good investment if you have sufficient liquidity otherwise.  Minimal monthly obligations will also provide for weathering the coming financial event.  Most of all, be Spiritually prepared.  Those who hear Our Heavenly  Father will be guided through these times in peace.  Others will be looking to you since their world has collapsed.  They will need assurance that they will survive and you will be able to direct their attention to Our Heavenly Father, their Creator.

The globe is financially interconnected, so what happens in other major countries affects you and me.  Many of our cars in the garage are produced in Japan and some of the parts to keep them operational come from their homeland.  Japan has the worst demographics of aging population of all the major countries.  There are not enough young people coming into the workforce to support the elderly.  People are living longer and their are more adult diapers sold in Japan than infant diapers.  Japan’s bond market is getting worse by the day.  Europe and the U.S. are not far behind.

Interest expenses of Japan’s debt (Japanese Government Bonds- JGBs)  as a percentage of total government revenue will reach 56% this year.  What if you personally had to pay over half of your paycheck to the bank for interest?  That is where Japan is at now.  How are they managing that feat?  By printing more money, backed by nothing but perception.  We are moving in the same direction.  Japan is leading the way to show the other nations what will happen shortly.  Japan’s Central Bank is focused on creating mild inflation in a contracting economy.  This will ultimately result in default of sovereign debt.  The bondholders are often large pension funds holding individuals’ future cash payments in their care.  In the end, the average person will be affected.  This should provide you a better understanding why Russia and China are acquiring gold reserves to back their currency as they prepare to depart from the U.S. Dollar reserve currency standard.  At some point, a monetary crisis will occur.  Only Our Heavenly Father knows the day and the hour:

Revelations 18:1 After these things I saw another angel coming down from heaven, having great authority, and the earth was illuminated with his glory.

2 And he cried mightily with a loud voice, saying, “Babylon the great is fallen, is fallen, and has become a dwelling place of demons, a prison for every foul spirit, and a cage for every unclean and hated bird!

3 For all the nations have drunk of the wine of the wrath of her fornication, the kings of the earth have committed fornication with her, and the merchants of the earth have become rich through the abundance of her luxury.”

These verses describe the coming global events as well as any time in history.  Our Heavenly Father is keeping the masses in a blinded state so the current system will continue while HIS Remnant is being prepared.  Until the firstfruits are ready for inspection and ready to illuminate the earth with HIS glory, the current system will be allowed to operate.  The fruit are ripening now.  We discussed this in our Bible study yesterday.  Due to Internet transmission problems, the Bible study had “live” issues but the “two-part” recordings appeared to be captured without issue and can be watched at:

http://www.ustream.tv/recorded/45262968

and

http://www.ustream.tv/recorded/45263692