It seems as though we are in a period of general fatigue and overload on the troubling news coming out of the global economy.  People just seem to be “tuning out.”  This is caused by cognitive dissonance.  People are hearing that Obama’s spending plans will save the day, yet they see what is really happening to the economy, their neighborhood, and there is a mustard seed of common sense that says “Wait a minute.  I’ve heard that line before.”  So now, they are tuning out at just the time they need to be sharpening their focus and becoming more dedicated to continuing your education process.

Don’t succumb to cognitive dissonance!  Keep your guard up.  Now that the page has turned on the calendar and a new year is upon us, it is tempting to breath a sigh of relief and believe we are going back to the way things were.

We are not.

Here are a few headlines that caught my attention today.

Barron’s cover story - “Get Out Now”

They are calling for the popping of the massive US treasury bond bubble. A few weeks ago I said this would be the next bubble to burst, so I believe they are correct.  The ramifications of this alone will insure that the economic troubles in 2009 will be worse than those we saw in 08′. One cannot have an economic recovery when interest rates are rising.  With rates at 0 (for the short bond), they have nowhere to go?  Use common sense.  Rates have to rise when an economy is faltering.  A recipe for recovery?  No.

The SEC Makes Wall St More Fraudulent

Can’t argue with the facts in the above story.  Our entire system of government, commercial and investment banking has become so incestuous that it is beyond comprehension. This is moving toward a revolt in this country by those who still hold a moral foundation in their beliefs.

Chinese Yuan Set to Replace Dollar

This is what you call a warning shot, while at the same time conducting a real world test to see what life after the US dollar as the world reserve currency will look like.  It is also a step toward preparing for a regional currency.

We are on target for a major US dollar devaluation in 2009.  The system is broken and the major players are all positioning themselves to minimize their pain when it occurs.  It would be wise for you to do the same.

As an aside, work continues on the video series.  I have received good feedback and the next one or two installments should be available by the end of the week.  I encourage you to pass the link to these videos on to a friend!

I cannot say this more clearly and urgently - if you truly wish to see the pain and suffering that results from the destruction of fiat money come to an end in this country, be prepared to fight for it.  Please do not sit by and say “that is just the way it is.”  It does not have to be this way!!

I ask again for you to consider supporting this ministry in one of three ways (all three if you are able).

1) Prayer.  We need prayer cover for this mission.  Lord willing, it is going to step on some big toes.

2) Organize a seminar in your area.  It is easy.  I provide the materials.  You provide a place to have it and distribute the materials.

3) Financially.  As the message and audience broadens, the need for resource grows.  I am committed to do all I can, however that has its practical limits.

Change is coming.  What do you want that change to be?

I the coming age of the destruction of fiat currencies, the country or countries that return to a gold backed monetary system may likely see a significant increase in geopolitical and economic strength.  At first, their actions (moving to use gold to back their currency) will be ridiculed by others still committed to their fiat system.  Then, as the fiat currency crisis continues to unfold in the months and years ahead, those taking these first steps will seem quite prescient in their move as their currency gains international prestige and “safe haven” status.

Sadly, this move is not occurring in the West.  When asked by Ron Paul if gold was being discussed as a backing for the troubled US dollar, Ben Bernanke had the gall to say that the only gold discussions happening were on planned sales.  China, meanwhile, has announced plans to increase their gold reserves by 4000 tons.   They have not come out and said that the yuan will be gold backed, however their actions point to a move in that direction. Russia too is increasing its gold reserves.

What is more troubling is the move currently under way in the Middle East.  The GCC leaders have approved a move to a common currency, and the plans to move in that direction are to be complete by September 2009.  While they too are staying away from openly declaring a gold backing for their new currency, it is a well known fact that Middle Eastern countries have been accumulating gold for the past few years, and their efforts are increasing in the last 12 months.

GCC Leaders Approve Monetary Union

While the West fiddles as Rome (the global monetary system) burns, the East and Middle East are moving toward a solution that includes gold.  This is very troublesome.  The power vacuum that will occur if/when the US dollar looses its reserve currency status will be enormous.  Right now, the sworn enemies of the West are stealthily positioning themselves to take advantage of this both geopolitically and economically.  And the linchpin in their plans is a gold backed currency.

If the west wakes up and makes a similar move, a gold rush of historical proportions will be on.  If they do not, then we may wake up one day to suddenly see the end game is over and check mate declared on the global economy when our enemies simultaneously unveil their new gold backed currencies and dump the US dollar.  We do not want to contemplate the result of such an action. The move toward a gold backed currency is under way.  It just isn’t happening in a way that will be good for the US.  Do you see now why I have such a passion to wake up the church?  Time is increasingly short.

This is what has consumed much of the last three days.  Shooting video isn’t easy, and I’m getting through the learning curve of new video editing software.  Feedback on this video is desired, including constructive suggestions on how to make it better.

Ask the questions - will it help others to get involved and begin their search for the truth?  What areas (if any) are not clear?

The series of educational videos will be shot over the next few weeks and posted on the web site as well.

Please bear with me as I balance working on new content to help broaden the reach of the ministry, and keeping my current readers informed of what is happening.  My daily reading has dropped off only marginally and I am still keeping my finger on the pulse of what is happening out there.  If anything major happens, I will comment on it.  If I miss something, email me and get my attention!

 

 Exposing the Monetary Traditions of Men - Intro: Play Now | Play in Popup | Download

We’ve all heard about the recent downturn in the economy being responsible for the collapse in the entire commodities complex.  “Demand destruction” is said to be responsible for sub $40 oil, $5 wheat, $3 corn, $1.5 copper, etc. etc.  To be sure there is some demand softening in some of these markets (although I don’t see how economic hard times causes significant demand destruction in food).  However, the result of the plunge in commodities prices portends something much more ominous for 2009 and beyond.

Because the price of these commodities collapsed in spectacular fashion - some of them saw drops as much as 70% in just over 4 months time - it has decimated the desire of the people running the companies producing these goods to go out and explore for new resources and open new mines and oil fields.  In the case of grains, farmers have cut back on acres planted due to high costs and shrinking profits.

The speed of the recent decline in prices will keep exploration dollars on the sidelines long after prices rise again.  And rise they will.  Yet producers will be reluctant to spend money on the most risky aspect of their businesses - exploration.  The junior exploration companies who survive (and the number will be relatively few) will be competing for a limited amount of capital that is willing to fund exploration projects. There is now a fear in the board rooms of these companies that they cannot count on rational price behavior in the markets.

This is all due to the gross manipulation of nearly all markets over the last 6 months.  When companies cannot rely on fundamental business conditions to provide a market for their goods based on the basic laws of supply and demand (i.e. free markets), then they will become very conservative in their decisions until such time government policies clearly will not cause them to lose their shirts due to manipulation.

This is but one of the unintended consequences of mass market intervention by the government.  Low production and low prices lead to shortages.  After this deflationary scare subsides and investors move into hard assets to protect themselves from inflation, they will find themselves competing for a shrinking supply of these hard assets, not an expanding one.  The axiom that prices rise when too many dollars chase too few goods will be in full force, adding more fuel to accelerate the crossover from deflation, to inflation, to hyper inflation.

The government’s desire to quell price increases and control inflation through intervention in the markets was a result of Sophie’s Choice.  Faced with either the destruction of the dollar or the implosion of the economy, they chose Kobyashi Maru instead.  They tried to rig the game by changing the rules.  The result is, they will lose both the US dollar and the economy.   Demand destruction, supply destruction, you name it.  Destruction is the inevitable consequence of fiat money.

A quick look back at 2008 and ahead to 2009.  Look for more audio and video in 2009.  Short 10 to 15 minute clips rather than 30 to 40 minute “programs.”  Enjoy…

 

 A Look Back and Ahead [15:59m]: Play Now | Play in Popup | Download

The economic situation in the world is certainly dicey to say the least. And because the economy directly affects our livelihood and our “standard of living”, it gets the press and our attention. However, the rate at which the economy declines as we go through this much needed cleansing process, and indeed how deep/quickly it will reach the proverbial “bottom” and begin the repair process, is highly influenced by geopolitical events.

We can, to some degree, foresee how an economy will respond given a consistent and somewhat predictable set of variables. What makes this particular crisis very difficult to get a handle on (as far as timing and duration) is the unpredictable nature of how the current power grab in the banking system and government will play out along with events transpiring in the Middle East.

Israel Will Expand Gaza Air Strikes “As Necessary”

Pakistan/India Conflict

You and I cannot fully appreciate the seriousness of what is transpiring in the Middle East.  Nor can we fully appreciate the impact the onset of a regional war will have on the world economy.  The entire world is on a razor’s edge.  The leaders of the world know fully that economic difficulties nearly always lead to war.  Check history and you will find that to be true.  Thus each leader is looking to, at a minimum, protect their own soil, and in many cases they are looking for ways to expand their influence and conquer new lands.

Historically, the end of hard economic times comes after a period of intense war involving the nations who are experiencing the economic hardship.  Today’s global economic downturn throws off ominous signs as to just how widespread any war will become.  It just happens that the catalyst for the next war is likely the Middle East.

This has biblical implications to say the least.  Are we moving toward the fulfillment of the prophecies of Ezekiel 37-39?  It certainly is possible. What we can take comfort in, is that the time period that appears to be directly ahead must be fulfilled before Christ returns. That is good news indeed! Whether His return is in 6 months, 6 years, or 6 centuries is a calendar that only God has access to. Thus, as we move through these times, we do so with the grace that God bestows upon us - always standing for truth - always keeping the faith - and always looking toward the heavens for the return of our Lord and Savior, Jesus Christ.

Taken from an online newsletter I subscribe to….

Submitted by cpowell on 06:37PM ET Wednesday, December 24, 2008.
Section: Daily Dispatches 9:30p ET Wednesday, December 24, 2008

Dear Friend of GATA and Gold:

And when they were come into the house, they saw the young child with Mary his mother, and fell down, and worshiped him: and when they had opened their treasures, they presented unto him gifts; gold, and frankincense and myrrh.

– Matthew 2:11

Matthew doesn’t spell them out, so we can only guess at the reasons of the Magi. The first gift to the holy child was gold. But jewelry or monetary gold? The noble metal of sovereign kings, the wealth preserver of sovereign individuals, or the currency of the persecuted and the refugee, such as the child and his parents shortly would become? Scripture seems to affirm only gold’s universality. But that is quite enough — indeed, the whole point.

Those of us who pursue gold’s ancient monetary purposes do not worship the cold, dead metal, no matter how beautiful its presentation; we are not idolaters. We pursue what the metal’s monetary function advances: individual liberty and fair dealing irrespective of nation or tribe. We would grant that to all regardless of whether this holiday means anything to them. And far from rooting for or betting on the end of civilization, as apologists for the current international monetary system accuse us of doing, we pursue a better day — a day, for those who can envision it, with nice capital gains, to be sure, but capital gains that do not have to be spent on guns, ammunition, freeze-dried food, and ventilation equipment. For we like living above ground; we are not the gnomes of Zurich. And of course what has driven the world into the ground lately is not gold but a system of central banking that has sought to destroy gold. Gold, the gift of the Magi, increasingly looks l ike a big part of the world’s way back up.

So merry Christmas to our Christian friends, happy Hanukkah to our Jewish friends, and fraternal greetings to all our other friends in the golden circle around the world. The Magi had their reasons and we have ours.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Even during tumultuous times, the markets calm down around Christmas and into the new year.  My activity on the blog will slow (as you have noticed, it already has).  It is time to enjoy the season of Christ’s birth, friends and family.  If anything of significance happens, I’ll be here.  But for the next week, don’t expect too much to be posted.  Time to remember the reason for the season.

“Then the angel said to them, “Do not be afraid, for behold, I bring you good tidings of great joy which will be to all people. For there is born to you this day in the city of David a Savior, who is Christ the Lord.”

Hi is born!
Doug

That is what the Bush administration is considering for US auto makers.

Bush Statement on Auto Makers

Interesting. That is what they are attempting to do with the US government and financial system even if they don’t know it - bring about an orderly bankruptcy.

On another topic, one explanation of why there exists the conundrum of a crashing US dollar and soaring long bonds was given this week by Peter Schiff.  According to Schiff, it is possible that “foreign creditors are selling their US treasuries to the Federal Reserve and taking their dollars and selling them for other currencies.”  Without Fed buying, we would see a crashing bond market along side a crashing dollar.  That is how normal markets work. However, we no longer have free markets in this country.  We have manipulations.

Whether or not Schiff is correct in why the bond and dollar markets are acting as they are remains to be seen.  However, what is certain is that manipulated markets always end badly.  What this nation needs if it wants to remain a free market country is to let the banking and auto industries go bankrupt, a deep one or two year purging process that would border on depression, and the return to an asset backed currency.  Upon this foundation a new era of prosperity could emerge that has its basis on sound money and sound economics, including production and savings.

What we are moving toward today is a socialized financial industry, along with a quasi-socialized economy.  This is closer to the Russian model of the 1990’s than it is to what we enjoyed in this nation for nearly 200 years.  Again people, this is the reality that is unfolding before you today.  I don’t know about you, but I am forming a plan of action to do my level best to begin to reshape the debate in this country.  We do not have to stand by while the elite gut our Constitution and move us toward socialism - all in the name of avoiding paying for our past sins.

Thomas Jefferson said “When the government fears the people it is liberty, when the people fear the government it is tyranny.”  Choose today. Right now our government does not fear the people.  We are experiencing tyranny. I think it’s time to change that.  Do you?