U.S. Funding Lags by Trillions

As the article says, it looks dismal for the U.S. financial condition.

The federal government's financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.

The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.

The $61.6 trillion in unfunded obligations amounts to $534,000 per household. That's more than five times what Americans have borrowed for everything else —

See it here; http://abcnews.go.com/Politics/us-funding-future-promises-lags-trillions/story?id=13778497

And currently congress can't even agree on how to cut a few billion dollars...how do you think they are going to close the gap on $534,000 per household?  The numbers are simply staggering....and unsustainable.

Missouri River Record Water Flow

Listen to this video as the guy from the Corps of Engineers dude says, "This is the first time in history that we have released this much water.  These high flows are expected to last at least a few months."

Also listen to the reporter say that this is the wettest year in recorded history.

See it here:  http://www.youtube.com/watch?v=b_GAH9Hhe5w

And where is all this water going?  They are going to try and stack it on top of the record flooding that is already taking place along the Mississippi...and it all meets in St Louis....where there was just a freak earthquake last week.

Can you say, "perfect storm"?

U.S. Home Prices Could Slide for 20 Years

So just how bad could this whole downturn be?  As many of you know I am in the financial business so have had lots of opportunities to hear from real people who are attempting to make real decisions on what needs to be done.  One of the most popular things I have heard in the last 3 years is, "We are staying in our house and the value should come back to where it was in the next 2-3 years."

What if you had a crystal ball and you knew that your $250,000 home was going to be worth $200,000 ten years from now and $150,000 twenty years from now?  Would that change any of your present plans?

Recent housing and employment data suggest the U.S. economy is at a tipping point where a double-dip recession is possible and home prices could have much further to fall, a veteran economist said Thursday.

Robert Shiller said the recent uptick in unemployment is not yet enough of a sign as to which way the recovery is heading. But if unemployment continues to rise in the coming months, it could suggest another recession.





"My gut feeling is we might see a continuation of the decline" in home prices, Shiller said earlier Thursday at a Standard & Poor's housing summit.

He added that a 10 percent to 25 percent slump in real home prices "wouldn't surprise me at all," though he cautioned that was not a forecast.

Shiller pointed to the glut of unsold homes on the market and the large amount of homeowners under water on their mortgages as pressuring prices.

As for when home prices might bottom, Shiller told Insider that was unclear and it was possible prices could slide for 20 years.

See it here; http://www.cnbc.com/id/43339262

Boy if that comes true....America will REALLY be in a pickle.  I wonder if 20 years of survival mode would make people turn to Jesus?  Probably not.  The Bible says that in the Last Days before Christ returns to earth, men will be cursing God.

Friends...we better lock into the eternal hope that only Jesus can offer, because the hope of this fallen earth seems to be drying up pretty fast.

Hat tip to Mike S.

Depression Coming?

Have you heard the popular saying about the difference between a recession and a depression?  It is said that you know we are in a recession when your neighbor loses his job.  It is said to be a depression when you lose your job.

According to a CNN Poll the most Americans EVER believe the USA will be sliding into a depression in the next 12 months.

(CNN) – President Barack Obama's overall approval rating has dropped below 50 percent as a growing number of Americans worry that the U.S. is likely to slip into another Great Depression within the next 12 months, according to a new national poll.

Forty-eight percent say that another Great Depression is likely to occur in the next year - the highest that figure has ever reached. The survey also indicates that just under half live in a household where someone has lost a job or are worried that unemployment may hit them in the near future. The poll was conducted starting Friday, when the Labor Department reported that the nation's jobless rate edged up to 9.1 percent.

"The poll reminded respondents that during the Depression in the 1930s, roughly one in four workers were unemployed, banks failed, and millions of Americans were homeless or unable to feed their families," says Holland. "And even with that reminder, nearly half said that another depression was likely in the next 12 months. That's not just economic pessimism - that's economic fatalism."

See it here; http://politicalticker.blogs.cnn.com/2011/06/08/cnn-poll-obama-approval-rating-drops-as-fears-of-depression-rise/

Of course the headline caught my attention for the financial reasons but also because the poll resulted in the "highest number ever reached".  Just one more example of how the pendulum is swinging wildly all over the world in ways that most people have no way to process.  We need to pray that millions will understand that God is shaking the earth to wake up fallen man.

Anarchy Arriving Soon to a City Near You

We understand that budget cuts in the cities means less police officers.  We also understand with high divorce rates and broken families comes more criminals.  And with 70% of black children in this country being born out of wedlock, it's only a matter of time until violence takes over our cities.

It appears that in Chicago that is exactly what is going on and is most certainly a foreshadowing to what is coming for a city near you.

This year, all hell has broken loose in downtown Chicago. Years of under-hiring have resulted in a police force that is unprepared for wildings and gang violence. Moreover, concealed carry in Chicago is illegal, unless one follows the Constitution.

Tourists and residents have been attacked by mobs of youths on buses, on beaches, on bicycle paths, near the shops of the Magnificent Mile, and outside their homes. Mobs of shoplifters plagued "Mug Mile" stores. The irony is that these disenfranchised youths are turning to crime -- and if justice is done, prison sentences --against innocent targets. Their focus is misdirected. Participating in a peaceful five million man march -- a true show of force and power -- against elected culprits in Washington would get them better results for lasting change.

It is still technically spring in Chicago, and wildings have made Chicago and its beaches unsafe. Poorer neighborhoods have long been war zones. The murder rate and gang violence in Chicago has been unacceptable for years. 

Read article here; http://www.huffingtonpost.com/janet-tavakoli/chicago-gang-violence-_b_873200.html

She uses the word "wilding" in this article.  If you are unfamiliar with that word, it means droves of young men just roaming around vandalizing, beating, robbing and abusing...just for fun...because they have nothing better to do.

Jesus said that in the Last Days men will be lovers of violence and brutal.  We have most certainly arrived.  How long until all the inner cities of LA, Atlanta, Dallas, Oakland, etc...  have bands of young men roving around causing chaos?  Who will stand to stop them when the police force is gone?

Can you see the TIME OF JACOB'S TROUBLE coming into focus?

Next Financial Crisis Will Be Hellish

I believe we have all heard of Forbes Magazine.  Today they had this headline;
THE NEXT FINANCIAL CRISIS WILL BE HELLISH AND ITS ON ITS WAY

“There is definitely going to be another financial crisis around the corner,” says hedge fund legend Mark Mobius, “because we haven’t solved any of the things that caused the previous crisis.”

We’re raising our alert status for the next financial crisis. We already raised it last week after spreads on U.S. credit default swaps started blowing out. We raised it again after seeing the remarks of Mr. Mobius, chief of the $50 billion emerging markets desk at Templeton Asset Management.

Speaking in Tokyo, he pointed to derivatives, the financial hairball of futures, options, and swaps in which nearly all the world’s major banks are tangled up.

Estimates on the amount of derivatives out there worldwide vary. An oft-heard estimate is $600 trillion. That squares with Mobius’ guess of 10 times the world’s annual GDP. “Are the derivatives regulated?” asks Mobius. “No. Are you still getting growth in derivatives? Yes.”

See it here;  http://blogs.forbes.com/greatspeculations/2011/06/01/the-next-financial-crisis-will-be-hellish-and-its-on-its-way/

Friends...we are crashing towards disaster.  Some that I talk to in our industry tell me if everyone would quit talking about bad news...then the bad news would disappear.  That's funny.  It's a little bit like closing your eyes as a tiger is charging you because if you can't see it, nothing bad will happen.

Can you even imagine what is going to unravel if $600 trillion in derivatives come crashing down?

Hope we all have a .22 rifle because we all might be out hunting squirrels until a new financial system gets cooked up!  Hopefully none of us will be here when that happens because all signs are pointing to that new financial system being the one that will be run by the Anti-christ.

"When you see all these things begin to happen look up for your redemption is near."  Jesus

Nation Will Rise Against Nation

Jesus told us that nations would be rising against each other and kingdom against kingdom.  Obviously the "Arab spring" we are currently witnessing falls under this Last Days prophecy spoken by Jesus.

But how about Scotland splitting from the United Kingdom?  That would certainly qualify.

LONDON — It is the nation that once ran the largest empire the world has ever known, a country so powerful that it claimed to "rule the waves" in a patriotic anthem.

But last month a "political tsunami" struck the United Kingdom and this once-mighty state faces being broken up.

An astonishing victory for nationalists in the Scottish parliamentary elections means it is almost certain that a referendum will be held within five years on whether Scotland should leave the U.K. and become an independent country.

See it here; http://www.msnbc.msn.com/id/43077321/ns/world_news-europe/

Of course we realize that Scotland and England have a long history of being anti-Israel and anti-Jew.  Could this be judgment starting against the nations that scattered HIS people and divided HIS land?

The "once-mighty" state faces being broken up!

Will this happen?  We will have to watch and see.

One thing for sure, "political tsunamis" seem to be happening on a daily basis...with increasing frequency and increasing violence...just like birth pains.

Small Quake Shakes St. Louis

We continue to watch for noticeable movement along the New Madrid fault and today we see some that made the headlines.

A minor earthquake rocked the St. Louis, Missouri area overnight. Some Missouri residents said they felt their home shaking for 5 to 30 seconds.



There are no reports of damage or injuries. The epicenter of the quake, which had a 4.2 magnitude, was roughly thirty minutes southwest of St. Louis.


See it here; http://www.weather.com/outlook/weather-news/news/articles/st-louis-quake_2011-06-07
 
We realize that there is historic flooding all along the Mississippi and that river flows right over the New Madrid fault.  We also realize that there are trillions of cubic feet of water that are currently flooding South Dakota, North Dakota, Montana and Iowa...and that all the water has to make it's way into the Mississippi river.  Millions of acres of floodplains in Missouri have already been flooded in an attempt to save the cities along the Mississippi.  Where is the water coming from the Missouri River supposed to go?
 
How catastrophic would it be for the USA if the New Madrid happens to break with a huge quake right at the very moment these historic floods are taking place right over the fault?
 
Is it possible that a "perfect storm" of destruction is being set for the USA?  Is it possible that if we continue to press for the division of Jerusalem that God will use this "perfect storm" of quake and flood to divide our country right up the middle?
 
What this country needs is for all of us to be sitting in sackcloth and covered in ashes (as the people of Nineveh did when Jonah gave them warning) and repent of our Mammon worship and turn back to God.  Maybe then he would hear our prayers in heaven and heal our land?
 
But as I look around here...all I see is a nation that is desperately clinging to Mammon and hoping that soon things will get back to "the way they were"....which really means a time of fat stock accounts, huge home equity appreciation, unlimited vacation funds, new trucks, trailers and ATV's...and totally ignoring Christ's clear call to "MAKE DISCIPLES!"
 
"You say, 'I am rich; I have acquired wealth and do not need a thing'.  But you do not realize that you are wretched, pitiful, poor, blind and naked."  Revelation 3:17
 
According to this passage, it may be that God is getting ready to spit us out.

More on Circumcision Ban

We blogged on this when it first came out and thought it funny/sad/interesting that the residents of San Francisco care SO MUCH for the foreskin of a penis, but are adamant about the right to kill a baby as long as it is still somewhat in the mother's body.  It makes no logical sense.

We also wondered if this was going to be another case of Anti-Semitism rearing its ugly head as The Tribulation draws close.

Now we have proof that this proposed ban is Anti-Semitic...and as you look at the cartoon pictures of the Rabbi monsters you will soon figure out just how offensive this is.  They even create a super hero called FORESKIN MAN who swoops in and saves the day (and the foreskin) of the baby boy.

See it here; http://www.theblaze.com/stories/proof-that-s-f-s-circumcision-ban-is-anti-semitic/

Amazing!  Also is it just me or does Foreskin Man look an awful lot like a pure-Aryan race that Hitler was so fond of?

Hat tip to Lisa H.

China Divests Itself of Treasury Bills

We have been watching for this...signs that tell us China says it has had enough of U.S. debt.  It looks like that day might be here.

(CNSNews.com) - China has dropped 97 percent of its holdings in U.S. Treasury bills, decreasing its ownership of the short-term U.S. government securities from a peak of $210.4 billion in May 2009 to $5.69 billion in March 2011, the most recent month reported by the U.S. Treasury.


Treasury bills are securities that mature in one year or less that are sold by the U.S. Treasury Department to fund the nation’s debt.


See it here; http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdin

Of course we know that what China owns is hundreds of billions is U.S. Treasury Bonds...and this article is referencing Treasury Bills which are short term paper.  But what happens if they start dumping the bonds?  Who will step forward to buy them?  We have about $14 trillion worth of bonds which will all have to be refinanced in the next 5-6 years.  So who has $14 trillion to help us keep the Ponzi scheme alive?

Are you preparing yourself for strange times?  Are you holding the things of this world loosely?  Are you ready to let them go?  Or are you laying in bed at night wondering how you are going to protect all the treasures we have laid up for ourselves in the big barns we have built to hold all our stuff?

Are you being prompted by the Holy Spirit to lay up your treasures in heaven where moth and rust will never destroy them?

Federal Reserve Flies Gay Pride Flag

Friends...seriously....how long will God let this go on?  You simply MUST see this photo and article of the Federal Reserve branch in Richmond, VA now flying the Gay Pride flag right under the stars and stripes.

Here it is; http://www.onenewsnow.com/Culture/Default.aspx?id=1359642

President Obama has declared June "Lesbian, Gay, Bisexual, and Transgender Pride Month" -- and to the dismay of a pro-family group based in Richmond, Virginia, the Federal Reserve Bank is joining in the celebration.


In an interview with the website Richmond.com, Sally Green -- identified as the bank's chief operating officer -- says the institution "strongly support[s] a diverse and inclusive culture" and has "learned it is important to value and embrace differences -- both seen and unseen. We are flying the 'Pride' flag as an example of our commitment to values of acceptance and inclusion."


Nice!! Acceptance and inclusion!!  


Now read Genesis where God smote Sodom and Gomorrah.  I wonder if they also were into acceptance and inclusion?  I wonder if America may end up being a heap of ashes sometime in the not distant future?


God is NEVER CHANGING.


Hat tip to Tom F.

Israel Kills 20 in Golan

The angry Arabs continue to push on the Israeli borders from all sides.  Today it was in the Golan Heights, which Israel took when they drove the invading army of Syria all the way back to Damascus.  Syria has NEVER had a peace agreement with Israel and they say they NEVER will as long as Israel has the Golan Heights.

For it's part, Israel says it will never give back the Golan Heights.  The territory is simply too strategic to be in the hands of the Syrians...who hate Israel.

Israeli soldiers fired on protesters trying to breach the country’s frontier fence with Syria on the anniversary of the 1967 Middle East War. At least 20 people were killed, according to Syrian state television.


Some 277 people were wounded, including 12 in critical condition, the television said. An Israeli soldier could be heard telling protesters through a loudspeaker in live Syrian television coverage: “If you cross the fence you will be killed.” Israeli soldiers shot at demonstrators’ legs after firing warning shots, Brigadier General Yoav Mordechai, Israel’s chief military spokesman, said on Channel 2 television.


See it here; http://www.bloomberg.com/news/2011-06-05/israel-fires-on-protesters-at-golan-border-killing-three-syrian-tv-says.html

Can you see how the tension is building on all sides?  Can you see how Israel's enemies all have the same idea on their minds....that Israel needs to be destroyed?  Can you see how this is ultimately leading to another major war in the region?

With cunning they conspire against your people; they plot against those you cherish.  "Come," they say, "let us destroy them as a nation, that the name of Israel be remembered no more."  Psalm 83:3-4


I wonder if the war described in Psalm 83 is close to being a reality?

Dark Horse for IMF?

There was an interesting (and possibly prophetic) article in the WSJ on Friday.  The headline reads; DARK-HORSE RIVAL DRIVES FOR IMF JOB.  As we all know the IMF stands for International Monetary Fund and many have heard me comment how they are showing up in headline news every single day.  Of course we believe this may be for-runner for the one-world-currency that the Bible says is coming in the very last days.

You can read the article in the WSJ here; http://online.wsj.com/article/SB10001424052702303745304576361921164207658.html?mod=googlenews_wsj

Now let's go to the book of Revelation and turn to chapter 6.  We read in verse 5, "When the Lamb opened the third seal, I heard the third living creature say, "Come!"  I looked, and there before me was a black horse!  It's rider was holding a pair of scales in his hand."

The passage goes on to describe a day coming when most men on earth will work the entire day only to earn enough food to eat...but that the rich people may not be damaged just quite yet...because the black horse is told not to damage the oil and the wine...which only the rich will be able to afford during The Tribulation.  So this black horse of Revelation has SOMETHING to do with the control of the financial system during The Tribulation.

So could the Dark-Horse Rival headlined in the WSJ have anything to do with the black horse of Revelation who damages the wages of most working men but leaves the rich intact for a later day?

I don't know, but it is interesting to ponder and watch.