Servias Ministries Blog

The average American citizens are waiting on the latest economic data:

Whew!  All is well, we dodged another bullet:

Thankfully, Ben Bernanke and Wall Street have our best interests at heart.

Banks continue to inventory unprecedented numbers of houses on their balance sheets.  They are controlling foreclosure volumes to keep houses off the market thus propping up property values.  If values decline further,  their portfolio loses value and they take a greater hit to their suspected insolvent state.  The Central Bank will accommodate this behavior in order to keep the current system afloat.  Low rates provide buyers with incentives for these larger houses that were built during the boom.

1% increase in bond rates would mean an increase in $500 billion in interest on an annual basis.  There is no reason to let the yield rise on bonds until the market demands action.  Debasing the currency will continue and the purchasing power will diminish, moving toward zero.  Physical assets will skyrocket when the public wakes up and attempts to trade dollars for physical assets.  The only plausible response would normally be to increase interest rates.  With current debt structures in place, that will not happen.  It looks like they are between a rock and a hard place.  The public will suffer and the truth of the matter is extremely difficult to find.

The interest rate would normally follow the inflation rate.  Below is the calculated rate (in blue) by shadowstats.com.  If broad inflation is at 5% and you are being paid 1% on your bank savings, you are losing 4% in purchasing power per year.  Depending on what you buy, your inflation rate may be higher.  In 25 years, you will have nothing left in savings thanks to the money printing philosophy that is currently in place.  If at the same time you had a 1 oz silver coin, 25 years from now you would still have 1 oz of silver and could trade it for something else of value.  How simple is that!

Paper (Fiat Currency) is being printed like there is no tomorrow.  Japan has entered the fray.  The Chinese are building aircraft carriers and accumulating gold, silver, and rare earth metals.  The sequester in Congress has stopped any view to the future.  What will happen?  Probably a crisis will arise whether real or manufactured.  In the meantime the precious metals appear to be at a screaming buy level.

Technical charts showing dramatic activity during off hours are a clear sign that somebody big is manipulating the market downward.  You must ask the question- Why would there be manipulation downward?  One can only conclude that they fear a sudden rise in the price of gold and silver.  Why?  It would alert the general market of the sustained devaluation of the U.S. Dollar.  In turn, that would have a major negative impact on the Dollar and create a run on the banks.  People would flee the Dollar and move to other currencies and to the precious metals.  It is all about protecting wealth.

The battle lines are actually hidden on the technical charts and only seasoned traders truly understand the endgame.  The rest of us must discern what is best for our own situation.  Most of all we must place our trust in Our Heavenly Father Who truly understands the ultimate endgame.

Gold get knocked down during the thinly traded hours, a classic move by the central planners.  At some point, people will no longer allow a small group of elitists to manipulate and plunder the wealth of the masses.  Our Heavenly Father will remove the blindness and there will be weeping and gnashing of teeth by those who trusted and placed their faith in the riches of the world.

The gold and silver “smash” is just about over.  The big investment banks have been smashing the price in the paper market in an attempt to move the market on an emotional basis by discouraging metals investors.  For those of us who believe that the macroeconomic pictures demands higher gold and silver prices, this was an excellent week to add to our positions.  The big buyers such as China must have been smiling this week.  Underlying gold stocks were smashed as well.  If you believe that reality will prevail, you were not moved by the depressed prices but looked to add to your position, however little it may be.

$4,000 to $5,000 is the range for gold to achieve.  The current price is not reflective of a top in the market but best reflects a bottom of the current wave before the next move upward.

Currency wars will continue to support price increases in gold.  Quantitative Easing (QE) will continue as we will probably see the official 2nd dip of the Great Recession admitted by those analyzing the rearview economic mirror.  Buying gold, silver, oil, gas, and other physical assets is a bet against the value of the U.S. Dollar and acts as an insurance policy against the further devaluation of the purchasing power of the Dollar.  If the economy was truly rosy as the talking heads suggest, we would not have unemployment at a staggering 22% according to shadowstats.com.  The emperor has no clothes… really!

Let’s face the facts, governments, politicians, corporations, and people are lying about everything.  Less and less integrity is to be found among the major power players around the globe.  The subtlety of the “love of money” or greed is so widespread, only discernment from Above can protect us from certain financial destruction.  With the Federal Reserve Bank purchasing U.S. Debt at such staggering rates, we must conclude that the U.S. is technically in default.  The Fed is creating money out of thin air then buying debt instruments issued by the U.S. Treasury.  In turn, the Treasury pays interest on bonds that were purchased with worthless fiat currency.  What a deal!

The Libor scandal where major banks colluded to fix the primary interest rate paid worldwide has had little impact on reform.  Why?  The very people who enforce the law have friends who broke the law.  It’s all about having friends in high places.

The Plunge Protection Team (PPT) is alive and well and manipulating markets for their “greater good”.  Insider trading continues to reap large profits with only a few scapegoats sacrificed to placate the public.  In the meantime, technical charts are being manipulated to extract money from the masses to benefit a few “privileged” trading banks.

The Financial Accounting Standards Board (FASB) was forced to relax and compromise its requirements that banks properly account for fair market value of assets thus allowing insolvent banks to continue in operation in hopes that their profits would cover up their true losses and return to minimum capital requirements.  Housing is in recovery only because foreclosed properties are being kept off the market to paint a false picture of reality.  The news media is accommodating by reporting a “recovery” in housing.

The Fed has kept interest rates lower than the market would otherwise require in order to re-liquefy the banks.  Effectively, this has been the greatest theft of personal wealth of private savers in history.  Coupled with the understatement and manipulation of the Consumer Price Index, senior citizens on Social Security are being robbed of their cost of living increases, another method of theft.

The above sums up why investment in gold, silver, and other physical assets is focused on defending yourself against the fraud that permeates today’s society.  The Chinese know this and that is why they continue to accumulate gold reserves.  When the day of reckoning finally occurs, physical assets will prevail.

The vessels of honor are being raised up for the day of reckoning.  Ultimately, the Elect will not be deceived but will have the Wisdom from Above to deal with the coming crisis… thankfully!