As I have written in the past huge amounts of bailout money have been made available to financial institutions. Some local institutions were forced to take the money, and expect to send it back as soon as possible. It would paint the picture that bailout money is being widely distributed rather than targeting a narrow audience. Over time, we have consistently seen the “paint a rosy picture” scenario by various administrations tinkering with government statistics- employment numbers, consumer price index, core index, money supply, etc. The latest “tinkering” is the accounting standards applicable to the banks’ valuation of toxic assets. Effectively, the banks can play with their balance sheets thus effecting a drastic improvement of income and painting a better financial picture. If you or I did the same in an effort to receive a loan from the bank, we would be convicted of fraud. If those banks with toxic assets were to value the toxic assets at current market value, they would be “insolvent” and that is a scary prospect for the current financial system.
Why are the world leaders pursuing this path? They are attempting to protect the counterfeit reality that keeps them in power. The current structure promotes and protects its power structure from any outside interference. Students of history know that this will not last indefinitely. Rome fell, the British Empire lost its status, and the United States is on the same road to ruin. There is no way in the current system to pay back the money committed other than defaulting on future obligations or inflating the currency thus devaluing individual wealth. Either option will be devastating to the American taxpayer and future generations. It is important to remember, government has no real money of its own, all the money it spends or commits comes from the taxpayer or is created out of thin air.
In the current system, economies require energy to grow and the “easy” energy is gone. All of the easy to reach oil has been discovered and is being extracted. We have not run out of oil but it is now more expensive to find and extract. The same is true for the other commodities. Cheap prices mask the problem and the current leaders have mechanisms in place to paint a rosy picture. How unfortunate is short-term thinking!
2Kings 7:1 THEN Elisha said, “Hear the word of the LORD. Thus says the LORD: ‘Tomorrow about this time a seah of fine flour shall be sold for a shekel, and two seahs of barley for a shekel, at the gate of Samaria.'”
This story reflects a “black swan” event. The Samarians were living life as usual, expecting the linear progression of their lives to continue. “Then suddenly” Our Heavenly Father evoked a change to the Syrians’ future. HE told Elisha to expect the change to the local economy and it happened as expected by the prophet who heard the voice of THE LORD. The Book of Job reminds us that there are larger cycles in the universe than what we can comprehend and that when sudden change comes, don’t be surprised. Job had everything stripped away so that he could prepare for a greater ministry. That method goes against what most believe is optimum but we must shed the counterfeit realities that we have created in order to clear the way for Our Heavenly Father’s plan.
Below is a little humor to offset the dismal financial picture described above:
