Friday, October 4, 2013

Is Dollar Collapsing?...or is it Gold That's Collapsing?

On the one hand we have many analysts saying that the massive U.S. money printing scheme will collapse confidence in the US BUY GOLD AND SILVER!  They say that massive inflation is a forgone conclusion, now it's just a matter of determining how massively awful it will be?

So obviously something has to give. On the menu will be hyper-taxation, take-your-breath-away inflation, or nation-destroying hyperinflation. Consider: As the current Kakistocracy in Washington continues to embrace out-of-control spending and the dollar-debt numbers continue to skyrocket, the obligations for America to manage its debt (never mind, actually paying it back) will become increasingly onerous and more difficult with each passing year. Even now...right now, it has become impossible for the US to grow itself back to sustainable recovery and solvency. Raising taxes is a fool's game, but Washington will do it and that will only make matters worse.  National solvency in America is a thing of the past.

For the sake of argument, let us consider what would happen if America chose to default on its massive debt; although the implications are too terrible to really contemplate. As America is already the largest debtor nation on the planet the problems would begin immediately. Within hours of announcing debt default, the worth of the US dollar would plummet. Within days, no one would trade with America and no one would lend the US a dime. Around the world there would be a virtual stampede to dump US dollars, accelerating the collapse of dollar value. Even our current level of post 2008 reduced consumption would slow to a trickle and then cease entirely as an economic depression that would begin in America before reverberating around the world like a tidal wave. The debt defaults that wreaked havoc upon Argentina and Zimbabwe would be small spuds compared to what would happen in America - massive shortages of all the essentials of life. Within a week there would be chaos, riots, and military law. And OBVIOUSLY...the current brand of in-country fiat currency (US dollar) would no longer function as a store of value in the face of such punishing systemic instability. If you had matches you might want to use your Benjamin's to start a cooking fire in a nearby park. 

So if default is out of the question (and it truly is), we must face up to the fact that we will have to suffer through inflation. With hard work and determination and a change of direction in Washington, we will prevail. We can beat inflation. We will be dented, but not broken. But what if our inflationary period jumps the fence and morphs into hyperinflation?
If the only point left to discuss is the severity of the pending bout of inflation (and the  collapse of the US dollar) through either severe inflation or hyperinflation, why are you still holding on to your stock of US dollars? The ideal would be to hold fully half of your liquid assets in gold and silver coins. An inflationary period will be part of our, so if your only concession to this looming challenge is to hold gold and silver, I guess that is better than nothing.
Yes!!  That makes perfect sense!!
But we have another team of analysts saying, "Yes, no doubt America is in trouble, BUT the dollar will remain strong and GOLD WILL PLUMMET."
They go on to tell us that when gold plummets SO WILL THE STOCK AND REAL ESTATE MARKETS.
Despite the yellow metal’s (gold) unceremonious and painful meltdown since October 2012, gold bugs continue to forecast a price of $5,000 and a collapse of the U.S. dollar to zero.
How could they be so stubborn AND wrong?
Because they’re basing their views on ideology and the last economic war, the fight against inflation in the 1970s.
They’re completely ignoring all the facts, especially the one that the economic war we’re fighting now is about deflation and debt deleveraging (as it was in the 1930s).
So let’s set the record straight. Here are the seven reasons gold will continue to sink like a mafia boss with cement shoes in the river… and why the dollar will continue its resurgence like a rising hot air balloon.

Gold is an inflationary hedge. Gold bugs have assumed that the Fed’s unprecedented money printing, Quantitative Easing (QE) and stimulus programs would lead to inflation and, ultimately, hyperinflation.

Mark my words: That’s not going to happen!

Gold collapsed in the second quarter of 2013 when our QE3 ramp up and Japan’s off-the-charts QE saw inflation rates fall from around 2% to as low as 1%.

Leveraged hedge funds have been dumping gold ever since then to meet margin calls.

The first principle to understand here is that the U.S. created more debt than any other country or region in the world during the great boom from 1983 to 2007. Total debt, private and government, grew at 2.54 times GDP for 25 years. Private debt grew even faster at 2.7 times GDP.

Debt is how we create or print money. The Fed’s money-printing programs are just a sideshow we see during emergencies like World War II and the recent great recession.

$3 trillion in quantitative easing is a drop in the ocean when compared to the $42 trillion in private debt and the $17 trillion (and growing) of government debt in the U.S.

When we deleverage or write off debt, money is destroyed. That makes the U.S. dollar scarce and, therefore, more valuable.

The truth is that we debased the U.S. dollar in the boom with unprecedented debt creation. Compared to our trading partners, the dollar declined 58% from 1985 into early 2008.

It’s been rising ever since, and it surged 27% in the financial crisis of late 2008 while gold was down 33% and silver was down 50%. Holy crap!

Yes, the gold bugs were wrong. Gold didn’t protect them or you from a deflationary crisis. The U.S. dollar did the protecting.

(this was an email so I don't have a link to attach)

SO NOW WHAT ARE WE SUPPOSED TO THINK??  Is it gold that will save us or the USA's printed dollars??  We have some very smart people telling us two very opposite things!

"I will confound your wise men, I will frustrate your intelligent men," says The Lord.

Boy...isn't that the truth...

Thursday, October 3, 2013

First a Default, Then a Depression?

This headline appeared today on NBC's website;

First a default, then a depression? Some think so

Damage from a U.S. credit default would be more than bad public relations—it could affect everyone from bankers to pensioners to holders of supposedly sacrosanct money market funds.

In a research note analyzing the various consequences of a debt default, banking analyst Dick Bove pointed to a variety of areas:

Money market funds, which would "break the buck" and deliver negative returns; banks, which would not be able to lend because of the plunging value of the debt securities they own; and Social Security recipients and pensioners, for whom there would be a shrinking pool of funds, also because of the declining value of Treasurys, which are heavily owned by SS funds and institutional retirement plans.

For the first three days of the shutdown, equity market prices experienced just a mild net selloff while bond yields held tight.

Thursday brought a change to that trend, though, as investors heeded a dire message from President Barack Obama, who intimated in a CNBC interview Wednesday that Wall Street was taking the crisis too lightly.

Consequently, stocks sold off sharply and the Treasury Department warned of the dire consequences that might result from a full-blown debt default.

Picking up on that message, Bove said the situation could be more dramatic: A Depression that would cause severe and lasting economic damage.

"The devastation to the United States would be so severe that it would take decades to recover from the Depression caused by a default and the attendant dumping of trillions of dollars of U.S. Treasury securities on the global financial markets," said Bove, vice president of equity research at Rafferty Capital Markets.


Can you believe we are living in a day when the President of the USA tells Wall Street that they should take the financial crisis more seriously??

For our system, based on confidence, this type of chatter is not good.

Remember, the Mighty and Powerful Wizard of Oz lost ALL his power when Toto pulled the curtain away to reveal a pudgy man standing on a stool pulling levers.

What if that happens here??

When is Hyper Inflation Coming to America?

How many times have we talked about money in the past 5 years that I have been blogging?  Quite a few to say the least.  So for any long time readers we all KNOW that a fiat money system is when a nation prints paper money that is backed by FAITH AND CONFIDENCE alone!

So what happens when people's CONFIDENCE wanes in that paper?  It's like rats jumping off a ship!  People start trying to get rid of their paper money and exchange it for something that isn't plummeting in value.

And if the nation's citizens don't want the paper issued by their government....just imagine how little interest that OUTSIDE investors would have in holding that currency.

Zimbabwe has been experiencing this as of late.  Post WWI Germany experienced it...and it led to the rise of Hitler.

You see when chaos comes to a nation and everything is going crazy the people beg for ANY LEADER that can come and offer them solutions and comfort from the insanity.

One day (maybe soon?) the world will beg for the Antichrist to come and save them from their global-economic-mess.

David Buckner, the founder and CEO of Bottom Line Training and Consulting, an adjunct professor at Columbia University, and the author of “Permission to Think,” explained on the Glenn Beck Program Wednesday why America hasn’t yet seen hyperinflation — but why it could be just around the corner.
Buckner said that in discussing hyperinflation, people often refer to the Weimar Republic, Zimbabwe, and Bolivia, but say “it could never happen here” because a “certain kind of layering has to occur” that America hasn’t seen.
That layering, he said, or the “recipe” for hyperinflation, is:
1) Economic Implosion
2) Collapse in tax revenues
3) Raise taxes
4) Lenders unwilling
5) Austerity or print
Beck seemed shocked by the list, saying all five have occurred.
But Buckner said some still squabble about certain points in the list — and regardless of whether we satisfy the recipe, people still say three things in America are “different,” and set us apart from the standard formula.
First, it is said that “everyone wants to buy our debt,” and no one will ever stop wanting to do so.  But Buckner countered that China is already quickly shifting our debt quickly to gold, and analogized the situation to a restaurant where China, the chef, lends the United States money to eat at its establishment.  Pretty soon, he said, there will be other customers, like India, who can pay outright.
Second, some also claim that “we’re not printing money” because “we’re exchanging an asset – a bond – for cash.”
“What they’re not saying is where that bond’s coming from – treasuries.  As soon as the government puts it out there, the Fed comes and takes it,” Buckner said.  “It’s circular, it’s absolutely circular. So we are printing money.”
“And everybody says, well you’re not seeing hyperinflation,” Buckner said, but that’s because, “the interest rates are so low, nobody’s putting that cash back into investments in the United States.  But they are putting it into desperate countries in Europe. They’re putting it into other investments. And the money’s going out there, so the second Bernanke raises the interest rates, all of the sudden the money sucks back into the United States and we have hyperinflation.”
Beck asked Buckner if we need an “event” of some sort to trigger such a meltdown.
“We’ve had an event, but…we’ve become comfortably numb,” Buckner said.  “So there’s been a lot of hidden stuff that’s going on.  The treasuries continue to go out, and Bernanke continues to buy debt. [But] anytime he starts to back off the markets freak out, because they know. The markets know. But we don’t, the people don’t. People who are retired, pensioners, elderly, people who are holding money are going to be devastated.”
Ouch!!  Now just imagine Social Security checks and how you are waiting for your $1500 check only to find out that $1500 is what your food bill is EVERY MONTH!!  Yep!....that would certainly meet the definition of "devastating."
I do realize that SOME PEOPLE believe that Babylon spoken of in Revelation 18 is speaking about the United States (New York City, specifically)....I do not make that claim.  However, reading this passage as you contemplate America and all the crap we bought from China, and the luxuries we have surrounded ourselves with while our pulpits preach puke, our Bibles remain unread and our Federal Government is shut down....makes one wonder....
“When the kings of the earth who committed adultery with her and shared her luxury see the smoke of her burning, they will weep and mourn over her. 10 Terrified at her torment, they will stand far off and cry:
“‘Woe! Woe to you, great city,
    you mighty city of Babylon!
In one hour your doom has come!’
11 “The merchants of the earth will weep and mourn over her because no one buys their cargoes anymore 12 cargoes of gold, silver, precious stones and pearls; fine linen, purple, silk and scarlet cloth; every sort of citron wood, and articles of every kind made of ivory, costly wood, bronze, iron and marble; 13 cargoes of cinnamon and spice, of incense, myrrh and frankincense, of wine and olive oil, of fine flour and wheat; cattle and sheep; horses and carriages; and human beings sold as slaves.
14 “They will say, ‘The fruit you longed for is gone from you. All your luxury and splendor have vanished, never to be recovered.’ 15 The merchants who sold these things and gained their wealth from her will stand far off, terrified at her torment.

Wednesday, October 2, 2013

Biblical Prophecies Are Being Fulfilled

Of course we are all watching Israel.  She is the apple of God's eye.  I honestly can't understand how some very nice, very smart, biblically educated people come to the conclusion that "God is finished with Israel when the Church came along." (replacement theology)

Every day more headlines come out showing that Israel, is indeed, at the center of basically everything going on.

Here is some of what Netanyahu just said at the United Nations as reported by Joel Rosenberg;

Washington, D.C., October 2, 2013) -- “In our time the Biblical prophecies are being realized,” Israel Prime Minister Netanyahu declared before world leaders gathered at the United Nations General Assembly on Tuesday.

“As the prophet Amos said, they shall rebuild ruined cities and inhabit them,” Netanyahu said. “They shall plant vineyards and drink their wine. They shall till gardens and eat their fruit. And I will plant them upon their soil never to be uprooted again. Ladies and gentlemen, the people of Israel have come home never to be uprooted again.”

I don’t personally recall a single other Israeli leader in the modern era who has spoken so clearly of the fulfillment of Bible prophecy. Perhaps David Ben Gurion did, for the first Israeli premier had a great interest in the Scriptures. But Netanyahu’s own interest in the Scriptures has been growing significantly in recent years, as I have noted on the blog, and increasingly pronounced in his public statements. At a speech at the Auschwitz death camp in 2009, for example, Netanyahu declared that the prophecies of Ezekiel 37 -- the dry bones of the Jewish people coming back together miraculously to form the State of Israel -- had come to pass in his lifetime.

Netanyahu also alluded in the speech to the Biblical prophecies of a Persian king named “Cyrus” would rise up one day and set the Jewish people free from captivity.

“The Jewish people’s odyssey through time has taught us two things: Never give up hope, always remain vigilant. Hope charts the future. Vigilance protects it,” Netanyahu said. “Today our hope for the future is challenged by a nuclear-armed Iran that seeks our destruction. But I want you to know, that wasn’t always the case. Some 2,500 years ago the great Persian king Cyrus ended the Babylonian exile of the Jewish people. He issued a famous edict in which he proclaimed the right of the Jews to return to the land of Israel and rebuild the Jewish temple in Jerusalem. That’s a Persian decree. And thus began an historic friendship between the Jews and the Persians that lasted until modern times.”

Friends, I will be very, very surprised if the Bride of Christ is still here on earth watching and waiting for the Bridegroom for another 30-40 years.  The birth pangs and events that Jesus and the prophets told us to watch for seem to coming at a fantastic pace!

Are you ready to hear the trumpet call of God?

Are you EXCITED to hear the trumpet call of God?

Are you EAGER to meet the Bridegroom?

Are we living pure and chaste lives, showered, dressed and ready?

Maybe tonight.......

Tuesday, October 1, 2013

Could Israel be the First "Cashless" Society?

Readers of the Bible know that a day is coming when everyone will need some sort of mark on their body to buy and/or sell anything.  Even as recent as 30 years ago, Bible readers assumed this must be some sort of 'spiritualized' passage because they couldn't imagine how one system could EVER track most of the folks on earth.

Of course now that technology has exploded, today we all know that a $300 lap-top purchased at Best Buy would have enough computing power to keep a log on all 7 billion folks on earth!!  Simply amazing!!

We also know that for the 190+ countries on earth to all have their own cash is VERY expensive.  It needs to be printed, counted, banked and ultimately cashed in and shipped back to its country of origin.  It carries disease and germs and MOST IMPORTANTLY cash is the medium used by drug dealers, sex workers, slave traders and every other illegal business.  If cash vanished and all transactions had to be done with plastic cards or fingerprint scans.....those underground businesses would virtually dry up overnight!  They would have to start engaging in a barter system which would be much harder to maintain.

So how and where will this cashless society start?

Well, here's one headline and article of interest....

Will Israel be the World's First 'No Cash' Society?

The government on Tuesday authorized establishment of a committee that will examine ways to eliminate cash from the Israeli economy – the better to prevent citizens from cheating on their taxes. The committee will be chaired by Harel Locker, director of the Prime Minister's Office.

Cash is easily passed from individual to individual, and transactions using cash can take place without the tax man's supervision. Not so electronic transactions; with modern computers, banks can keep tabs on how much people deposit into their accounts and how much they withdraw, while credit card companies have an up to the second record of how much people spend.

Members of the panel will include top staff from the Israel Police, the Tax Authority, the chairman of the Government Authority on Money Laundering and Terror, the Bank of Israel's income and payments director, State Attorney's office officials, and more.

According to many of these officials, cash is bad – because it allows individuals to get out of their tax payment responsibilities. Today, an enterprising tax collector cannot easily compare income and outflow. While he may suspect that a person living beyond his reported means is cheating on his taxes, there is no way to know for sure, without solid evidence. In a cashless economy, all records will be electronic, and checking who makes what and how much they owe in taxes – and collecting it before it gets to their account – will be a much simpler matter, the theory goes.

Officials in the Prime Minister's Office declared that “around the world, it is recognized that cash is a key element of the illegal economy and money laundering. It allows a wide gap between reported and actual incomes, with the corresponding effect on tax revenues.” By eliminating cash, the PMO said, “it will be possible to expand the tax base, and prevent money laundering.” The committee will study the issue from all its perspectives and make recommendations, the PMO said.


Yes!  Cash is bad!!  Just think of the folks who get tips in cash and never claim it as income!  Just think of the guy who fixes your brakes in his garage and you give him $200 cash....and he never claims it!!  Just think of the $billions that our bankrupt government could collect in LOST INCOME TAXES if every transaction that you ever did was logged into an electronic system!

So how could you pay your neighbor for doing your brakes?  Well, you would need to log into a system and transfer $$ from your account into his...maybe using your smart phone?  And of course once that is on the system it would be just the snap of a computer to figure out your income and the taxes you owe.

Of course it makes perfect sense.  I totally get it and would probably even encourage it to streamline a lot of systems.

But it seems to be one more SIGN OF THE TIMES as to where we are in God's prophetic calendar....and maybe Israel will be at the center of this sign too??

Guess we will need to watch and see.....

Monday, September 30, 2013

Iran is Playing Obama for Time to Make Bomb

Hey!  Didn't this new Iranian President seem like quite a peach on his Charlie Rose interview?  He seemed very moderate!  Very logical!  He made a lot of sense!!

Ummm....most likely he is lying through his teeth while his scientists continue developing a nuke.

Iran's new president, Hasan Rouhani, is telling President Barack Obama what he wants to hear while buying time to build a nuclear bomb, says John Bolton, former U.N. ambassador and current senior fellow at the American Enterprise Institute.

"Just as Vladimir Putin had played him for a fool over Syria, Mr. Obama was initially snubbed by Iranian President Hasan Rouhani despite frantic White House efforts to produce a handshake," Bolton writes in a Sunday op-ed in
The Wall Street Journal.

It's not the first time Rouhani has played the West, Bolton writes. Rouhani was Iran's chief nuclear negotiator from 2003 to 2005, when he successfully followed the same playbook.

It's not the first time Rouhani has played the West, Bolton writes. Rouhani was Iran's chief nuclear negotiator from 2003 to 2005, when he successfully followed the same playbook.

"By offering what appeared to be concessions, Iran acquired precious time and legitimacy to overcome scientific and technical glitches in its nuclear-weapons program, particularly at Isfahan's uranium-conversion facility," Bolton wrote.

Bolton ticked off a list of what he described as Obama's failures over the past year.

"Mr. Obama failed in his stated objective to oust Syria's Assad regime from power; failed to impress Assad that his 'red line' against using chemical weapons was serious; failed to exact retribution when that red line was crossed; failed to rally anything but small minorities in either house of Congress to support his position; and failed to grasp that agreements with the likes of Syria and Russia prolong, rather than solve, the chemical-weapons problem," Bolton writes.

Iran's ayatollahs know, Bolton said, that the Obama's "all options on the table" threat against their nuclear program carries no weight.


I seriously doubt that Israel believes that Iran now has a "moderate" Islamist as their new president...and assume that war plans are continuing to be drawn up in Israel.  One thing that Israel has learned FOR SURE about Obama....he has no clue what he is doing.  

If a CEO of General Mills had no clue how the cereal and grains business long would General Mills stay on top of their business?

When the President of the USA has no clue how foreign policy, taxes, insurance finance long can the USA stay on top of our game?

Sadly, America has elected the leaders that we deserve.

Assad Posesses Weapons to "Blindside" Israel

Assad had quite an interview last week!

First off he said they have some serious weapons they could hit Israel with anytime they want.

Then he went off on Obama saying how weak he was.

And finally he promised that Russia would enter any war waged against Syria....of course meaning this as a threat to the U.S.

Syria has deterrent weapons, more advanced than anything in its chemical arsenal, that could blindside Israel in mere moments, Syrian President Bashar Assad claimed Thursday.

"Originally, we produced chemical weapons in the 1980s as a deterrent to Israel’s nuclear capabilities,” Assad said in an interview with the Hezbollah-affiliated, Lebanon-based Al-Akhbar newspaper, adding that “today, we have weapons that are far more important and sophisticated and that can blindside Israel in the blink of an eye.”

Referring to his regime’s chemical weapons arsenal, which, under a US-Russian agreement reached earlier this month, is due to be destroyed by mid-2014, Assad said that his stockpile, of about 1,000 tons, is a burden and will be costly and time-consuming to dispose of.
The Syrian president went on to mock President Barack Obama as “hesitant” and “weak.” He called the US administration’s handling of the threat to attack Syria — in response to the regime’s alleged chemical attack in Damascus on August 21 that killed over 1,400 people according to US officials — an “embarrassment.”
“The steps we’ve taken embarrassed the US government in the eyes of the American and European publics. Obama lost in his own home [turf]. where [he] lost the ability to maneuver internally,” Assad added.
In a previous interview with Venezuelan television, the Syrian president accused the Obama administration of lying to US citizens by claiming it had proof that Assad’s government was responsible for the August 21 gas attack.
Assad told Al-Akhbar that the level of Syrian cooperation and coordination with Russia was “unprecedented” and that should a US attack on Syria occur — a possibility he did not rule out — he had Moscow’s assurances that Russian forces would be sent to back the regime.
“We have a full Russian pledges that Russian troops will enter in any war waged against Syria,” he was quoted as saying.
Does it feel like we are losing our swagger as a super-power?  Does it feel like the bad guys on planet earth are soon going to operate with impunity?  Does it feel like the wicked are getting ready to prosper?  Does it feel like we have a commander in chief who really has no clue what he is doing and simply can't fathom why the world's leaders refuse to fall in line with his "reset" agenda?
Do you get the idea that Obama has no clue who Jesus Christ is....yet probably knows much more about the false religion of Islam than he lets on?
No doubt America has been made weaker in the eyes of the world.  Like any good parent, Obama needs to understand that drawing red lines while having no intentions of enforcing those lines....only makes you look bad and makes all the children more willing to misbehave when they realize the threats are all talk and no action. 
Let's all continue to be in prayer for the revival of this country.  We need Holy Spirit filled people to keep the evil at bay.  And as always, continue to pray for she is being surrounded by evil men.