Servias Ministries Blog

The Federal Reserve has added yet another bubble to the current list of bubbles:  the Current Assumption Bubble.  This one is based on several other bubbles staying inflated.  Let me explain.  Historically, a corporate financial officer needed about a 15% return on investment (ROI) to agree to a capital expenditure.  This ROI had underlying assumptions of revenue flows, cost of money (interest rates), future cost of materials, etc.  Now enters the Fed who manipulates the cost of money, props up the revenue flows, and inflates the cost of materials.  The CFO is now basing his decision on assumptions that have been manipulated by the Fed.  Once the Fed quits stimulating the economy, the current decision is no longer valid.  If the assumptions change rapidly then the CFO not only scraps the project but then moves into a full defensive posture and shrinks all cash outflow to cover the costs of the bad decision.  By extending the Quantitative Easing (in its fifth year), the business cycle has been totally distorted.

This is true for individuals as well.  As we are lulled into believing all is okay, there awaits a day of reckoning.  My goal is not to induce fear but to warn of potential harm that may come to the brethren if we do not remain vigilant.  The financial institutions managed to virtually eliminate the jubilee of bankruptcy of individuals in the U.S.  Why did they do this?  The saw what was coming and wanted to protect their interests by changing the laws to hurt the average borrower.  This change in the law resulted in further enslavement of the masses to the financial institutions.  Could this be one of the reasons for an overall increase in the suicide rate versus the Great Depression?

People continue to feel the pinch of the current economic environment while being told that the nation is in a recovery.  The numbers don’t confirm the recovery.  Live simpler, be careful of additional debt, and ask Our Heavenly Father for guidance in your expenditures.

The physical parallels the Spiritual and the current gold market is no different.  The current gold market is made up of the paper market which is a manipulated, exploitive, worldly system and a physical market where the actual metal changes hands and is based on “equal weights and measures”, an ounce of gold for a specific price.  In Scripture, gold represents Divine Nature and just as there are counterfeits who would have us believe they are Divinely inspired, the paper market wants to manipulate us into believing it represents the physical market.

The current price in the paper market would have us believe there is no longer high demand for gold.  In the physical market it is just the opposite.  When I went to a local coin dealer Friday to purchase a silver coin for a person who was unable to get a Census coin locally, the dealer indicated that there are no local sellers of gold.  Everyone that walks through his door is a buyer.  There is a substantial lead time for him to acquire more gold through his suppliers.  It is no different around the globe.  Governments and individuals are all buying the physical precious metals at these low prices, thanks to the Western central planners who are trying to manipulate the public by suppressing the price of gold.  Why?  Gold is the best barometer to reflect fiat currency depreciation which is happening at an epic pace.

There has been over $17 Trillion in fiat currency printed since the crisis of 2008 and it has not produced a global recovery.  I have kept you abreast of what I believe to be the most honest representation of the U.S. economy reported by shadowstats.com.  This unprecedented printing of fiat currency will ultimate have to be reconciled.  Historically, it has never ended well and this time it will only end worse be some magnitude.  Mankind has always believed that the current generation was smarter than the previous who failed.  The Great Depression of the 1930’s was the primary focus of study by Ben Bernanke.  His actions are based on what he believes should have been the corrective actions to prevent the Great Depression from happening.  The problem is that the state of all of man’s systems have changed and the remedies of the 1930’s do not necessarily correlate to the remedies needed today.  The systems today are much more complex than the 1930’s.  Computer-based banking, stock trading, communications, etc. is a 1930’s economy on steroids.  Interest rates are at records lows and the global economy is not responding.

Gold prices should be at record highs.  If they were at record highs, nobody would put any of their wealth in the fiat currencies that are backed by nothing but perception.  As a bank depositor, you are an unsecured creditor to that bank.  If the bank goes under and the FDIC or similar insuring agency is overwhelmed with claims, kiss you deposit goodbye.  Plans are being put in place to reclassify your deposits and issuing bank stock if a bank goes under.  That converts a liability to equity and “voila” the bank is back in business.  These are tumultuous times in the financial arena and the average man will be the loser in the end.  The ultra-rich have been stockpiling gold, silver, and other tangible assets as a guard against collapse, insurance of sorts.

The Spiritual warfare has been on the rise lately.  It would indicate a change is at hand.  The Divine always trumps the worldly as will be the case this time as well.  There will be a separating of the sheep and the goats.  At some point the paper market will be separated from the physical market.  When that happens gold will reflect its true value at much higher levels.  Silver will do the same.  I expect silver to move back to its historic ratio to gold:  sixteen to one, a Love ratio.

Interest rates have been at near 0% for four years.  Our elderly who have saved for retirement all their lives have paid dearly for the greed of a few.  The central planners have tried to compensate by inflating the stock market and reward people for taking risks with their retirement funds.  People who invest in the stock market are subject to the large hedge fund managers who have enough cash to move a stock down for a quick derivative profit.  Right now, dividend stocks are the preferred stocks in that their return on investment exceeds the savings rate by multiples but the risks are also multiples versus a standard savings account… until Cyprus came along.  There is no safety in the current system.  The current system is set up to fail.

What is the solution?  Focus on your calling.  Our Heavenly Father supports your calling and will ultimately provide you the resources to meet that calling.  HE expects you to grow in faith, to listen to HIM, and to walk in Love.  If you are weak in those areas, then pursue a greater understanding by meditating on the Word day and night.  By practicing the revelation you receive.  Become Love.  Sacrifice your “self” on the altar.  Be a blessing to those around you.  There are needs all over your country that can be met by those who listen to Our Heavenly Father.  These are times of great change and we should expect that Our Heavenly Father will bring forth deliverance from Mystery Babylon as it falls.  HE will not leave a vacuum but will fill it with HIS Glory.  The time of judgment of greed and avarice must run its course.  The flesh must consume itself as the lusts become fully exposed just as Sodom and Gomorrah.  The Sons of GOD have been in an extended training program that is surely bringing them into full maturity.

The elderly will continue to suffer and this will be offset by those who are called to assist them.  The greed of Wall Street will continue until its judgment has fully come.  We must be sensitive to the leading of the Holy Spirit.  Those with financial callings will be empowered to attract funds and resources to support the Kingdom.  The waters can be treacherous but we have HIS Spirit to guide us to the fullness of our calling.

Socialism is not in the least what it pretends to be. It is not the pioneer of a better and finer world, but the spoiler of what thousands of years of civilization have created. It does not build, it destroys. For destruction is the essence of it. It produces nothing, it only consumes what the social order based on private ownership in the means of production has created.
– Ludwig von Mises (1881-1973) Economist and social philosopher

Selah!