Servias Ministries Blog

How can a central bank manipulate the price of gold downward?  Let’s assume that you have 8,134 metric tons of gold in the depository.  Recently, a 50 ton sales order was issued.  The following table provides the latest estimates of official reserves (http://en.wikipedia.org/wiki/Gold_reserve):

As you can see, only a handful of countries could back a single sale of 50 tons.  From a practical matter, the U.S. is the only country that could put 50 tons on the market without a notable outcry.

Step 1:  Create a contract to lease 50 tons to an agent such as Morgan Stanley or Goldman Sachs.  With a lease in place, you can still claim ownership of the 50 tons of gold on your balance sheet.  The leasing price is set at 1% per annum.  The return of the metal is “indefinite” or on demand.  (Wink, Wink)

Step 2:  The agent bank sells 50 tons into the market causing the price to plummet.  The market is overwhelmed with such a large sell order thus the price goes down until more buyers enter in.

Step 3:  The agent bank allows the momentum of price decline to take hold as “momentum traders” jump on board to ride the price downward.  They sell short into the gold futures market and push the price down further.

Step 4:  Once a new price level becomes stable, the agent bank starts buying back the original gold (with the proceeds in Step 2) at a much slower pace, booking a profit and hoping to keep the price at the lower level.

So, what is the problem?  Gold has been rising in price for over a decade and the agent bank cannot recoup the gold sold into the market.  The central bank may not be able to get the gold back into its physical possession.  The gold reserves then only represent what is on paper versus what is physically in inventory.  Some observers believe that there are virtually no reserves left in some countries.  The Germans want their gold back from the New York Federal Reserve Vault but have been told it will take years to get it back on their soil.

China is ranked #6 with 1054 tons but there are sources who claim that China has at least 4,000 tons, possibly up to 8,000 tons.  Add India to the mix and you can see how the Kings of the East could move the world’s reserve currency to their control.  Both countries continue to aggressively accumulate gold, especially at these low prices.

If the U.S. Dollar loses reserve currency status, the price of gold will skyrocket in terms of the U.S. Dollar.  Paper wealth will substantially decline for those who hold the Dollar.  The only thing keeping the Dollar from tanking is the perceived safety of holding Dollars.  If that perception changes, volatility would occur overnight.  Why do you think that the media is so focused on managing the perception of the populace?  Why do you think that there are so many Executive Orders in place to handle a widespread upheaval?  What reason did the authorities put in place capital controls so wealth could not flee the borders?  Why do you think the military is now being used for domestic police assistance?  The central planners are concerned that they will lose control.  If they only realized that Our Heavenly Father is really in control, they could rest easier at night.  Love will prevail.  Yes, it is counterintuitive to what a person thinks is needed.  However, Love framed the universe.  I think it can resolve a few economic issues.

P.S.  If gold is such an ancient relic, why do countries keep their reserves?

Deconfliction is a military and engineering term that refers to the process of avoiding mutual interference, or outright hazards, among systems under the control of one’s own sides. It is most often used in the context of preventing fratricide, or having weapons hit one’s own troops, but it has broader implications.

This clip provides a perspective of the long reach of the various agencies.  Wouldn’t it be nice to have some revelation from Above?  We wouldn’t need all this infrastructure and its associated costs thus we would not be the largest debtor nation in the world.

This clip appears to be from the CBS TV series NCIS starring Mark Harmon.  Mark supports the Children’s Center in Bethany Oklahoma.  This center focuses on treatment of children with severe illnesses.  Thanks Mark!

I recommend a subscription to www.shadowstats.com to the Finance/Economics-oriented readers for all the detail of what the true economy is doing.  John Williams does the work there and he saves the rest of us a lot of time by tracking the trends of the U.S. macroeconomic picture using the government’s own raw data.  The following graph says it all:

How long can this country live in denial?  Clearly longer than a passenger on the Titanic.  The 2008 crisis continues to erode the country’s ability to recover economically.  The bubbles created since 9/11 continue to prop up the markets but at a cost to the middle and lower classes.  What unemployment rate must we hit before the stage of denial moves to the stage of anger?  The prisons are full but there will be a greater surge as the unemployment rate increases and the frustration and desperation of the population grows.  The number of baby boomers without any form of retirement is substantial.  Those unemployed with retirement are dipping into their nest egg to make ends meet now.  The financial infrastructure has mortgaged the future of millions in order to conduct a monetary experiment that is sure to backfire.

Our Heavenly Father is the Master Economist.  HE created a productive planet to handle the population.  Seedtime and harvest are fundamental to the planet’s ongoing economy.  Energy is locked up for the Remnant to access at the appropriate time.  Sons are being matured to handle the next phase to occur on this earth.  Will this be the culmination of time?  The unrighteous are playing out their parts in a robust fashion.  Lawlessness will continue to grow but grace will abound also.  Don’t be concerned about the circumstances becoming extreme.  It only shows us that the level of maturity of the Remnant will also be “extreme” when it is all said and done.  In the meantime, focus on hearing and meditating HIS Word.  Let it be written not only on your heart but on your mind as well.

To subscribe to ShadowStats.com CLICK HERE.

The purpose of profit is to support expansion.  There are two general types of profit (or gain): just and unjust.  The moment you spend money, you are supporting one of these two types of profit and in today’s world you are most likely supporting a lot of unjust gain.

I find it interesting how quickly Christians want other Christians to forego profit which is needed for expansion in order that they receive free benefit from their calling. Let me explain.  Most of us have no problem in buying gasoline from any of the major oil producers around the world.  The moment we pull up to the pump and pay for gasoline, we support the further expansion of Exxon, Chevron, BP, or some other commercial entity.  We take no thought that we have just supported the further expansion of their motives throughout the earth.  We provided them with profit for expanding their agenda whether it be for righteous or unrighteous intent.  However, when the entity is tagged as being “Christian”, many set a different standard and expect a special concession which is most often a lower price, preferably “free”.  This creates a subtle form of unrighteous judgment by the buyer of goods and services.

What would happen if righteous companies were rewarded for their motive of furthering the Kingdom on earth?  What would happen if “unity” among the brethren began to spread and allow the economic power to be focused to companies with righteousness as a focus rather than the prevailing unrighteous activities of many of the large corporations of today?  Everyday we support unrighteous activities when we spend our hard earned wages and we think nothing about it.  At some point that will change.

Jesus promoted profit in the parable of the talents.  He would not have promoted growth and expansion if it were lawless.  Instead, the parable made a point that unfruitfulness was the issue.  The Kingdom is geared toward expansion, not contraction, yet we have failed to place any emphasis on the economic side of the Kingdom.  I expect that to change soon.

When the Kingdom comes and overtakes the world’s systems, do you think that business will cease?  Will farmers abandon their tractors and quit producing grain for consumption?  Do you think all the current tangible callings will be retired and we will simply sit on a cloud playing a harp all day?  Not a bad “gig”!

I have a business calling.  My job is to make a profit.  With part of that profit, I support the Ministry of spreading The Gospel.  Is it better to support a business like mine or support a business where the profit helps pay for a butler on a private jet and all the profit is consumed on the lust of the flesh, the lust of the eyes, and the pride of life?  Do you think that my gifts are substandard to that of the heathen?  Our thinking must change.  The teaching that we are just biding our time until a whole new system replaces the current environment has caused us to do nothing except expand unrighteous companies around the world.  Our job is to “occupy” until HIS return.  We are to be profitable, not unprofitable.  We should be promoting profit among those who pursue righteousness.  We should be less concerned about saving a buck or two while we are effectively promoting unrighteousness.  Hello?  Are you there?

When we returned home last night, we settled in for the evening and watched a couple of recorded episodes of “Zero Hour”.  This TV series is centered around 12 clocks representing the 12 Disciples and the storyline focuses on the “end of time” and the Cross of Jesus Christ.  While watching the first episode, I checked the time.  Next to my chair is a world clock which runs on a battery.  Evidently the battery finally lost its charge during our week long trip and the clock had stopped at 11:53 and 51 seconds, after years of running on that battery.  With the number 153 embedded in the time as well as 51 which means Divine Revelation, I believe that this was meant as a double witness of “Now is the time”.  On our trip I reread Kemper Ditzler’s book on Raising a Remnant (www.unity153.net) and had been pondering the theme that the job of the vessels of honor are to play their part in converting the vessels of dishonor.  The vessels of honor must increase in the earth.  Profit will play a part.  More to come!

Friday saw another smash of gold and silver by the not-so-secret agents of the Fed. The employment numbers were spun to present the illusion that all is well. Not so.
The Germans want their gold. The Chinese are acquiring tons of gold. Nobody wants to accumulate Dollars or U.S. Bonds, except for the Federal Reserve. The Dollar as a reserve currency is disintegrating at a rapid pace.
In 2008, gold was the best performing asset but in 2013 the central planners are trying to keep investors from gold. They are desperate. The big question now is when gold goes to 5 digits. The smash looked like this:
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Although the mainstream media reported a rosy U.S. employment picture, the raw numbers reflect a different reality. Instead of the reported 190,000 increase in jobs, shadow stats.com reports a loss of 240,000 full-time jobs. Further, unemployment remains high at 23.4% according to John Williams.
I report U.S. centric numbers since the American economy has such a dramatic impact on the rest of the globe.
This week I have been re-reading Kemper’s book “Raising a Remnant” and he does a great job of reminding us that lawlessness will increase as the Remnant is being prepared. The above numbers may only get worse as we move forward in preparation.
Men like John Williams provide us with facts that are hard to acquire by other means. His work is an act of Love whether he realizes or not. As Kemper stated “the love of the truth will bring us to the fulfillment of walking in the truth”. May the truth prevail!