Many of the brethren will be meeting in Gap, Pa. this weekend. Sixteen (Love) years ago, our daughter got a job “standing in the Gap”, a prophetic sign. She was a greeter in the Gap clothing store. In the same year, the Promise Keepers went to Washington, D.C. for a rally titled “Standing in the Gap”. In a recent interview, Economist Dr. Laurence Kotlikoff indicated that the fiscal “gap” of the U.S. is now a $222 Trillion deficit. This is the culmination of a 30 year denial that the U.S. has a spending addiction problem. This number is not Kotlikoff’s number, but a basic economic calculation accepted by all economists. There is no way to get out of this hole. The U.S. is technically insolvent. 19 out of 20 segments that make up the $222 Trillion are kept “off the books” by using language that conceals and misleads the American public. All future spending must be covered by all future taxes. The difference is the fiscal gap. Social Security is 31% underfinanced by itself as indicated in the Social Security Trustee’s Report of 2012.
The Bond market will crash when the bondholders finally wake up to this economic reality. Interest rates will rise. Money printing will increase thus hyperinflation is the only alternative. The system is extremely fragile. The Fed’s actions confirm this fact. 12% of the U.S. Government’s spending is being printed by the Fed. That will fuel inflation in a dramatic fashion.
We are moving quickly to a breaking point. 2015-2017 appears to be the current timeframe for a fiscal crisis to come to fruition in the U.S. It could be earlier. The price of gold and silver continue to be manipulated to cover up the brevity of the problem. How wide can the gap grow before the crisis spreads? Only Our Heavenly Father knows. Gold will ultimately rise in terms of the U.S. Dollar. $3,500, $4,800, to $6,000 and above. We should think about Mandarin Chinese language skills by 2020 if Our Heavenly Father does not install the Theocracy by then.
Cyprus (Love) Update
Big depositors face cut of 40%, minister says. See: http://www.bbc.co.uk/news/business-21936554
Banks to stay closed until Thursday. See: http://www.bbc.co.uk/news/business-21933473
The one thing men cannot do is predict a change in the psychology of a population. The Cyprus situation cannot bode well for the psyche of other countries in Southern Europe. The “Rule of Law” was placed in jeopardy during the crisis and the average depositor knows that this revealing attitude of those in power cannot be forgotten. Once the crisis is over, assuming it ends with minimum fallout in other countries, the average person should look at protecting his or her economic well-being from the unexpected.
Cyprus will suffer tremendously from this event. Small businesses will close, unemployment will rise, and there will be a decade or more of economic pain as a result.