December 29, 2008

War without End

Gaza is now under siege by Israel military in an attempt to stop the continued rocket attacks by Hamas. Hamas became the elected government power of Palestine in 2006 and has only escalated violence since then. According to Israel's minister of foreign affairs, from 2001 through May 2008, Hamas launched more than 3,000 Qassam rockets and 2,500 mortar attacks against Israeli targets. With organizations like the PLO headed by Yasser Arafat bent on destruction, peace is only a figurative dream.

Until the Lord returns, the words of Zechariah continue to ring true:

"And in that day will I make Jerusalem a burdensome stone for all people: all that burden themselves with it shall be cut in pieces, though all the people of the earth be gathered together against it" (Zech12:3).

Israel,the burdensome stone to the nations.

The Shifting Landscape

Why is America not mentioned in Biblical prophecy? Some say it is because the church has been raptured---A more plausible explanation is happening right before our eyes. Financial chaos has shifted power across the oceans, from New York to Shanghai and from DC to Moscow.

December 20, 2008

Is Western Culture Deteriorating?

An intriguing response by Ravi Zacharias to this question: The loss may be far to great before we being on the road to recovery as we have lost the very definitions of life, home, self, and university.

December 15, 2008

Fred Thompson on the Economy

A humorous summary on our current financial situation. AND very accurate.

December 14, 2008

The Cashless Society

First, the gold standard was removed in 1975. Then, the Fed took the dollar off the M3 index(the measure of total debt/dollars/currency in the market) in 2006. At first these moves seemed obscure and insignificant. Then the credit crisis hit. Now, we have absolutely no idea how much money is in our supply. A recent article showed that Bernanke and Paulson won't even bother to give us an idea, a large part no doubt because we may faint when we find out that the collateral the fed has taken in when lending via printing is worth nothing. While our debt has long been viewed as the safest in the world, as evidenced by the three month treasury bill hitting negative this last week---essentially meaning people are willing to take an assured loss , albeit small, in exchange for the safety of the treasury security---the time will come when this will change. Every action has consequences. And the idea that we can print trillions without the world noticing is both dangerous and naive.

December 9, 2008

Oracles of Doom come out swinging

SO what is going to happen to the United States over the next few years?

Are we going to see the dollar plummet and the cost of living skyrocket? Or are we entering into a 30's style deflationary environment where cash under our bed is the safest way to protect it?

Some of the biggest names that called this crisis have come out swinging again. Predictions vary, but all remain on the same page----that this recession still has a long way to go.

((Photo: SuperStock (fortune teller); Pete Turner/Getty Images (bomb))

For the Record:

I believe we are going to see the mother of all inflationary turns as the fed will be forced to print money just as Zimbabwae has done in order to keep its currency from going to zero. The fed has acted recklessly in their attempt to flush the system with cash and has caused the inflation train's motor to start up. It will only be a matter of time before just like the recession train before it, will leave too. Treasury bills may be going out at a zero to slightly negative rate at the current, but the idea that this will continue forever is presumptions. World economies will eventually decide, as Obama has, that pouring money into one's own economy would be better served than putting it in the risky box of American securities that for now remains 'safe'. Recently, the USA has been calling on China to relax restrictions on foreign banks. This is like the UN coming to the Iran's negotiation table and telling them to stop enriching uranium: it may 'work' for a little while but give it time and Iran will be right back at it.

Despite the idea that we control the buying power that China needs to maintain it's export growth, we still do not have the upper hand with this nation. We are subject to them in a way that is much bigger than simply having to buy their tainted dog-food, rather due to the fact they hold a $1.4 trillion trade surplus and counting, going up by about $1 billion per day. In effect, every person in the (rich) United States has over the past 10 years or so borrowed about $4,000

We are going to have to pay for what we have created eventually. It will come.
from someone in the (poor) People’s Republic of China.

December 8, 2008

Dr. Rossi's Parable

From Glen Beck:

"Once upon a time there was a very happy couple. Their names were freedom and capitalism. They married and had many wonderful children. Their names were independence, self-worth, hard work, dignity, charity, faith and hope. They all lived happily for many years and the children respected their parents and loved them both very much. But freedom and capitalism later had several naughty children, very naughty. They weren't so respectful and never appreciated their parents. Their names were wealth envy, environmentalism, animal rights activism, racism, feminism, ultra liberalism.

These evil children blamed their parents for everything and hated their parents' freedom and capitalism. In fact, these unappreciative children began to hate their parents since they didn't realize their parents gave them everything they had and didn't realize that they wouldn't even exist without their parents. They hated their parents so much, they began to plot with their neighbors to kill their parents and to keep their home. Their neighbors' names were socialism and communism who on the outside were a very lovely couple but inside they were very, very ugly.

They and their children, whose names were despair, poverty, suffering, and repression had been welcomed into every neighborhood they had lived in. But then thrown out after years of suffering and the loss of many lives. So late one night in total darkness because socialism and communism did everything in darkness and the way from the light of the truth, while everyone was asleep, wealth envy, environmentalism, feminism, animal rights, by their younger obnoxious brother, Hollywood, disguised by socialism and communism and let them into the house, freedom and capitalism. It wasn't hard for the two parents, freedom and capitalism, always left their gates and their door open for everyone. Wealth led the way because he knew the house oh, so well. The evil children led socialism and communism throughout the house, one room at a time. And one at a time they killed hard work, then dignity, then independence, self-worth, charity and faith. They finally found the room of freedom and capitalism and killed them as well. It wasn't hard to do, since freedom and capitalism always left their door unlocked and open for everyone. Only hope survived. Hope survived hiding in the closet. She ran out during the ensuing celebration. After socialism and communism moved in, things went well for a while but then they decided they didn't like freedom and capitalism's evil children, either.

They wanted their own children to have the rooms in their new house. So late one night in total darkness because socialism and communism did everything in darkness and away from the light of the truth, they sent their children to kill freedom and capitalism's remaining evil children. Poverty and suffering killed environmentalism and animal rights first, for they were so hungry, they had to kill all the animals for food and the trees for their wood. And besides, why should animals have rights if people don't? Hopelessness killed liberalism, the retarded brother of communism. Then poverty, suffering, and repression killed feminism. The retarded sister of liberalism. And Hollywood, the young obnoxious son of freedom and capitalism, was also killed. Finally, wealth envy, who led the attack on his parents, died at the hands of poverty since there was nothing left to envy.

December 7, 2008

Lukewarm Decay

It looks like all it takes is a promise of bailout money to bring together the church. Detroit-area religious leaders -- including Christian, Muslim and Jewish leaders convened by Cardinal Adam Maida -- have urged Congress to approve an auto aid package.

BUT: What they're praying about and how they're going about doing it brings to mind the lukewarm church of Revelation 3. The The Lukewarm church stands as the church of materialism, the church of great lack. Rolling SUV's to the pulpit illustrates more clearly how the church of spiritual lack abounds today.

This church assumed having wealth meant they had need of nothing else. They identified riches as being righteous, wealth as holiness, and having a great abundance of “material gain” as special favor from The Lord. While outwardly they were possessors of much, inwardly where true wealth really mattered, they were spiritually poor.

December 3, 2008

A world upside down

The amount of debt held by foreigners keeps growing, and now we are begging them to keep buying our debt.

The US is "begging" China to buy parts of US banks after Chinese government put limitations on such purchases. A couple of years ago, the US would be wondering if it should allow foreign investment from China in US banking system. China and Japan are the two major purchasers of US Treasury debt. If China is stopping bank ownership, how long before it stops buying US gov. debt? We are trying to push interest rates down and cajoling everyone else to do the same. If we can't sell our debt, then interest rates would have to rise, possibly a great deal. The bonds tank if that happens.

December 2, 2008

Revolution, Food Riots in America by 2012

Extreme Prognostics, but possible. The scenario disclosed in this article by the man who accurately predicted the 1987 crash is startling.

Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week.

The huge injection of dollars, creation of dollars, has grossly inflated the monetary base. If this finally makes it out of the hoarding in bank reserves, the inflation itself would be enough to tank the dollar by 90%, and the scenario might play out. We are reflating the currency. The results could indeed ultimately be a Zimbabwe or Wiemar, Germany. Look what happened to their GDP's and values of their currency.