Sunday, September 30, 2012

Problems are designed not to crush us, but to crowd us towards Christ...........

"Blessed is he whose transgression is forgiven, whose sin is covered." 

                                                                                                           Psalm 32:1

The worst thing that could happen to sinful people would be to live in a perfect environment.

If God had left Adam in the Garden of Eden, Adam would not have known that he had the fatal infection of sin, and he would not have sought the remedy for sin, which he found in the shedding of Christ's blood.

Problems are designed not to crush us, but to crowd us towards Christ who provided the remedy for sin by shedding His blood on the cross. The problem of sin is real and terrible, but it brings with it the possibility that we can be forgiven and clothed in the righteousness of Christ.

When was the last time you thanked God for the problems in your life?

Think of them as vehicles that drive you to the heart of your Lord.


Then shall they call upon me, but I will not answer.........Therefore shall they eat of the fruit of their own way!

Never before has wisdom cried out like it is crying today 

We read in our scripture text, 
Proverbs 1:20-33; "Wisdom crieth without; she uttereth her voice in the streets: She crieth in the chief place of concourse, in the openings of the gates: in the city she uttereth her words, saying, how long ye simple ones, will ye love simplicity? 

And the scorners delight in their scorning, and fools hate knowledge? Turn you at my reproof: behold, I will pour out my spirit unto you, I will make known my words unto you. Because I have called, and ye refused; I have stretched out my hand, and no man regarded; But ye have set at naught all my counsel and would none of my reproof: I also will laugh at your calamity; I will mock when your fear cometh; When your fear cometh as desolation, and your destruction cometh as a whirlwind; when distress and anguish cometh upon you. 

Then shall they call upon me, but I will not answer; they shall seek me early, but they shall not find me: For they that hated knowledge, and did not choose the fear of the Lord: They would none of my counsel: they despise all my reproof.

Therefore shall they eat of the fruit of their own way, and be filled with their own devices. For the turning away of the simple shall slay them, and the prosperity of fools shall destroy them. But whoso hearkeneth unto me shall dwell safely, and shall be quiet from fear of evil". 

Never before has wisdom cried like it is crying today, from in the streets, to the chief places of the concourse. The concourse is the place where a tumultuous and the great commotion of an angry mob resides to the point of great agitation. The chief places speak of those who are appointed, elected, or self appointed, especially those in high places. 

In the streets and in the gates of the cities there is a moan and a crying from wisdom declaring something beyond description is imminent. What is wisdom crying? Listen to the spirit of wisdom as she speaks to the multitudes. Ye simple ones, how long will ye love simplicity? The simple ones are the seducible ones, the silly ones. We read in 1st Timothy 4:1&2, Now the Spirit speaketh expressly, that in the latter times some shall depart from the faith, giving heed to seducing spirits, and doctrines of devils; Speaking lies in hypocrisy; having their conscience seared with a hot iron. We read in 2nd Timothy 3:13, "But evil men and seducers shall wax worse and worse, deceiving, and being deceived". The deceived are those who are deluded, easily persuaded, enticed or allured. They are seduced by the power of fascination, charm, and appeal from Satan's emissaries and they are trapping untold millions. 

We read in 2nd Corinthians 11:14&15, "And no marvel: for Satan himself is transformed into an angel of light. Therefore it is no great thing if his ministers also be transformed as the ministers of righteousness; whose end shall be according to their works". How long will you love simplicity or the sinister way?

The way of evil along with ominous signs are appearing everywhere in this nation. The Romans had a belief that unfavorable omens appear on one's left side. Today, we hear the phraseology all the time, "they are too far to the left". The word sinistral means, "the left side". An ill-omened disaster is about to unfold on this nation. 

Thus, the psalmist declared in Psalms 16:8, "I have set the Lord always before me: because he is at my right hand, I shall not be moved". We read in Hebrews 8:1, "Now of the things which we have spoken this is the sum: We have such an high priest, who is set on the right hand of the throne of the Majesty in the heavens". Simply put, you had better be on the right side. 

Wisdom says to the agitated mob, how long will you scorners delight in scorning, or how long shall the mockers deride in their mocking? We read in Isaiah 28:22, "Now therefore be ye not mockers, lest your bands be made strong: for I have heard from the Lord God of hosts a consumption (a final end), even determined upon the whole earth". 

In the new Testament we read in Galatians 6:7&8, "Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap. For he that soweth to his flesh shall of the flesh reap corruption; but he that soweth to the Spirit shall of the Spirit reap life everlasting". 

Wisdom declares that fools hate knowledge.

The word hate here in the Hebrew means, to hate violently, to be untrustworthy; it also means to show negative preference. Did we not witness at the Democratic National Convention a negative preference toward God and Jerusalem? How openly they booed God and Jerusalem right before the nation without any reservation whatsoever! 

Always remember, love unites but hate divides. 

Thus, we have a solemn warning found in the scriptures in 1st Timothy 5:22, "Neither be partaker of other men's sins: keep thyself pure". Needless to say, the church today has become totally unequally yoked with unbelievers. We are warned in 2nd Corinthians 6:14, "Be ye not unequally yoked together with unbelievers: for what fellowship hath righteousness with unrighteousness? And what communion hath light with darkness". 

Again we read in 2nd Corinthians 6:17, "Wherefore come out from among them, and be ye separate, saith the Lord, and touch not the unclean thing; and I will receive you". It is a truth, no man can serve two masters. Wisdom says that they hate knowledge; for we read in Romans 1:28, "And even as they did not like to retain God in their knowledge, God gave them over to a reprobate mind, to do those things which are not convenient". The knowledge of God allows one to refrain from error. God says if you loathe my knowledge then you will go into captivity.

We read in Isaiah 5:13, "Therefore my people are gone into captivity, because they have no knowledge; and their honorable men are famished, and their multitude dried up with thirst". (VERSE 23) Wisdom says turn at my reproof: in other words turn at my pleading, at my chastisement, and turn to me because of my righteous argument. If you will turn, I will pour out of my spirit upon you, the spirit of Revelation, the spirit of knowledge, and the spirit of understanding. If you will turn, I will make known my words and my will for your life says the Lord. (VERSE24) I have called and preached, as well as summoned you into my holy court, the court of my word. 

God said my court is holy. My call is a specific call and not some mere random call. It is a call to get your attention so that spiritual contact can be initiated by my Spirit. As I called Adam, I said, "Adam where art thou"? Today, I call out to you, where are you? But you have refused and you are unwilling. I have stretched out my hands, my nail pierced hands. My hands are a symbol of power, of assistance, and hands of deliverance. Now that you have refused my hands of mercy and my hands of grace, and have no regard for my hands, ,my hands will now become like an angry man shaking his hands in your face! My hands will now cause you to quiver, you will vibrate up and down and my hands will be like a sickle in the earth, says the Lord. (VERSE 25) 

You have set at nought all my counsel and you have ignored all my words and all my messages. Just like in the days of Moses, my people of Israel had gotten out of hand and began running wild, so has your nation. Israel was having their drunken orgies and had forgotten my hand of deliverance, so you too have forgotten me. (VERSE 26) Wisdom now says, I will laugh at your calamity, your destruction, your ruin, and your disaster. There will be great oppression and I will stir many fires among you.

Wisdom says, I will mock your fear when it comes. When your terror, dread, and panic arises I will mock you, mock you as someone who is stammering. (VERSE 27) Your fear will come as desolation, like a crash, a rushing devastating storm, so shall the tempest be around you. For you have sown to the wind and you shall reap the whirlwind. (Hosea 8:7) Anguish shall come upon you and you will be constrained as in a strait, it will be a place of distress and of great need, a place of difficulty, says the Lord. (VERSE 28) 

Wisdom says, many shall call upon me but I will not answer. They shall seek me early, but they will not find me. Have I not said that my Spirit shall not always strive with man? Have I not said seek me while I can be found and call upon me while I am near, saith the Lord? Many of you have mocked my messengers and despised my words and misused my prophets until my wrath has risen up against you, and there is no remedy, but repentance, repentance, repentance, and repent now! (VERSE 29) 

You have hated my knowledge and chose not to fear the Lord God of heaven and of earth. You did not choose to fear me saith the Lord. Did I not declare that the fear of the Lord is the beginning of knowledge, but fools despise wisdom and instruction? (VERSE 30) You would none of my counsel, you despised my reproof, you once received my favorable attention but you have rebelled and will now see and witness my unfavorable side and my disdain. For many who could have received me have chosen to reject me? (VERSE 31) Those who reject me will now eat the fruit of their way and of their own doing? You will now be filled with your own devices and counsel and that will be all that you will know.

Your advice and resolve is far too little in measure to deliver you, saith the Lord. (Verse 32) for the turning away of the seducible and seduced shall slay them. Homicide, murder, and killings will now fill your land. Just as Cain murdered Abel, so shall it be in your land. The prosperity of the seduced shall destroy them. 

Your security and peace is a false peace and security, saith the Lord. Your days of tranquility, security, and of successfulness is now terminated. Abaddon, Apollyon the king of evil, mongrel, and hybrid spirits will soon be released to bring this destruction upon the whole earth and they will be the downfall of many nations. The withering of your crops, your fading strength, hope, wisdom, knowledge and wealth will perish, says the Lord. (VERSE 33) But those of you who have hearkened unto me shall dwell and reside permanently. For you shall be made to lie down in green pastures. 

It is I who gives stability for heaven and earth shall be moved, saith the Lord. For I say to my people, fear no evil for I am with thee. I am your refuge and your comfort. I am your security and your success. For the work of righteousness shall be your peace, and the effect of righteousness is quietness and assurance forever. My people shall dwell in a perfect habitation and in sure dwellings and in quite places. My son Jesus is your tabernacle, he is your refuge and strength when the day of trouble is manifested. Fear not for behold I am with my people, says the Lord and like a mighty army I will fight for you, saith the Lord.

LAW vs GRACE..........

The Law and the Gospel of God's Grace

"Therefore it is of faith, that it might be by grace; to the end the promise might be sure to all the seed; not to that only which is of the law, but to that also which is of the faith of Abraham; who is the father of us all."

                 Romans 4:16

There are more than six billion people on the face of this earth. If you extracted from each one the very best character traits and put those things into one man, that one man would still have to bow before God and cry out for mercy to be saved.

We've got to quit trying to be saved by doing good things or being a moral person or even by keeping the Ten Commandments.

The law says "if." The gospel says "therefore."
The law says you must earn salvation. The gospel says salvation is a gift.
The law demands holiness. The gospel provides holiness.
The law says run, but it doesn't give us legs.
The gospel says fly, and it gives us wings of grace.

God, Our Provider................

God, Our Provider

"For every beast of the forest is Mine, and the cattle upon a thousand hills." 

                                                                                                               Psalm 50:10

Do you remember when it was rare to hear of someone whose job was either threatened, or actually lost, due to changes or cutbacks? Well, that's hardly the case anymore.

These days it seems that almost everyone is struggling with financial problems related to job security.

You may be struggling and asking, "What good can possibly come from my financial problems?" They are wonderful opportunities to trust your Heavenly Father for your daily bread. I've always said that it's better to have a Father who owns a bakery than to have a warehouse full of bread!

Are you having financial woes? 

Do you know someone who is? 

Share with them the Good News of God's provision and faithfulness.

Trust in the Lord with all thine heart; and lean not unto thine own understanding.

 In all thy ways acknowledge him, and he shall direct thy paths.

                                                                                             Proverbs 3:5-6

Fully Trusting in the Lord Jesus Christ.............

Fully Trusting in the Lord Jesus Christ

"But without faith it is impossible to please Him: for he that cometh to God must believe that He is, and that He is a rewarder of them that diligently seek Him." 

                                                                              Hebrews 11:6

John G. Patton was a Bible translator in the South Sea Islands. While translating, he came to the word "believe" and searched for a word that the native people could truly understand. He wanted something that meant commitment and trust, but he couldn't think of a word. Then one day, a messenger rushed into Mr. Patton's room out of breath. Needing to rest, he flung himself into a big chair and leaned back in complete relaxation. Patton asked the native for a word to describe what he did when he sat down and completely trusted in the chair to hold him so he could relax. That's the word he used for "believe."

When a person quits trying and begins to trust the Lord Jesus, that's "belief."

Loving God with All Your Mind..............

Loving God with All Your Mind

"And thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind, and with all thy strength. . ." 

                                  Mark 12:30

Jesus said of Satan, "He was a murderer from the beginning, and abode not in the truth, because there is no truth in him. When he speaketh a lie, he speaketh of his own: for he is a liar, and the father of it" 

                                                                                                                                                          John 8:44

Satan is a clever liar. In fact, many of his lies sound like the truth. He plays with our minds to confuse us. He lies about the biggest subject of all  God. Satan wants to deceive you about God. 

If he can distort your idea of God, then beyond the shadow of any doubt, he has you in everything else.

What does it mean to love God with all your heart, soul, and mind?

Friday, September 28, 2012

You've got to take 2 minutes to watch this......... THIS NOVEMBER IS ABOUT AMERICA AND FREEDOM NOT POLITICS!


This says so much . .. . people know when a person genuinely cares about them and it shows dramatically in this video . . .

It would seem the U . S . Marines know something that many of the civilian population do not.

You've got to take 2 minutes to watch this comparison between George Bush's visit to the Marines vs . Obama's recent trip . It is incredible . 

There is word this will be removed from YouTube so go now . Pass it around quickly.

Radio Shack; out of business.................

A US of A bedrock company.................out of business.  With this kind of thing happening, it's only a matter of time.  These guys weren't put out of business by Walmart or Target; this is bedrock kind of economics here.  This is not good.

Radioshack has burned through $150 million of cash in the last three quarters. They have $355 million of debt due in the next twelve months. They had $500 million of cash left at the end of the last quarter. Their CEO quit today, 4 days before the end of this quarter. He was on the job for one year. I'm sure that bodes well for the next earnings report. Their stock has plummeted from $13 to $2 in the last twelve months. They operate 6,200 stores in the U.S. and employ 34,000 full time Americans.

Not for much longer. This dying company will go bankrupt in the next year, leaving 6,200 strip mall and regional mall vacancies and putting 34,000 more people on food stamps. The retail death march will continue as the MSM proclaims recovery. So it goes.

Chart forRadioShack Corp. (RSH)

RadioShack's CEO quits after one year

By Roland Jones, NBC News
Struggling electronic retailer RadioShack said Wednesday James F. Gooch, its chief executive officer, will step down from his role, effective immediately.
The retailer said the decision was made by mutual consent with the company's board of directors. The board will now begin searching for Gooch's successor, and Dorvin Lively, RadioShack's executive vice president and chief financial officer, will assume the role of acting CEO.
"We thank Jim for his service to the Company and wish him well in his future endeavors," said Daniel R. Feehan, non-executive chairman of the board for RadioShack, in a statement.
RadioShack is working to turn around its results as electronics buyers increasingly turn to the Internet to make their purchases instead of shopping at brick-and-mortar retailers.
In July, RadioShack reported a net loss for its second quarter and suspended its dividend.
On Tuesday, Staples, the number-one U.S. office supply retailer, announced a major restructuring as it faces fierce competition from online retailers.
Staples said it plans to shut 30 stores in North America, downscale 30 more and take a pretax charge of up to $1.1 billion during its fiscal 2012 year. The retailer said the shake-up is designed to better serve the needs of customers and accelerate growth.
More broadly, Staples said it plans to integrate its retail and online offerings, spend more on its online businesses, reorganize its operations, implement leadership changes, initiate a multi-year cost savings plan and restructure its international operations.
RadioShack's shares have tumbled more than 80 percent since Gooch took up the CEO role last May.
Michael Pachter of Wedbush Securities said one problem facing RadioShack is its name, which conjures up images from another era.
"Radio is a concept from a hundred years ago, and a shack is a place that essentially homeless people lie in," he said.
RadioShack also faces a demographic challenge, he said.
"(Older customers) are not being replaced by 30-year-olds," said Pachter, who has an underperform rating on the stock.
Finding a new CEO may not be easy, Alan Rifkin of Barclays Capital wrote in a note, saying the new leader would need "unique strategic vision" to fix all of the retailer's problems.
"Furthermore, the duration of the search is uncertain, thus leaving RadioShack in a state of transition," he said.

Bubble Formation And Bubble Bursting........... A Flowchart So Simple Even An Economist Can Get It

The entire FOMC, is still clueless about the two most critical processes of modern fiat-based economics, namely bubble formation, and its counterpart, bubble bursting, we decided to give them a helping hand, and to explain just how these two fundamental events occur, with flow charts so simple, even an Economics PhD can get it.

Bubble Formation: start at the bottom left...

How Hedge Funds Work [Infographic].............

How Hedge Funds Work [Infographic]

WHO OWNS OUR DEBT?..............





Thursday, September 27, 2012


17 stupid statements bulls make to deny a bear recession

March 1999: Harry S. Dent, author of "The Roaring 2000s." "There has been a paradigm shift." The New Economy arrived, this time really is different.  HE WAS RIGHT BUT NOT LIKE HE THOUGHT!

October 1999: James Glassman, author, "Dow 36,000." "What is dangerous is for Americans not to be in the market. We're going to reach a point where stocks are correctly priced … it's not a bubble … The stock market is undervalued."  A COMPLETE MORON SPOUTING WHAT PEOPLE WANT TO HEAR!

August 1999: Charles Kadlec, author, "Dow 100,000." "The DJIA will reach 100,000 in 2020 after "two decades of above-average economic growth with price stability." 

December 1999: Joseph Battipaglia, market analyst. "Some fear a burst Internet bubble, but our analysis shows that Internet companies … carry expected long-term growth rates twice other rapidly growing segments within tech." THIS GUY ISN'T JUST ANOTHER MORON HE IS A GREEDY WALL STREET WHORE! 

December 1999: Larry Wachtel, Prudential. "Most of these stocks are reasonably priced. There's no reason for them to correct violently in the year 2000." The Nasdaq then proceeded to lose over 50%.  DO YOU THINK HE WAS TALKING HIS BOOK AND PERSUADING PEOPLE TO DO WHAT KEEPS ON PAYING HIM? YOU THINK!


February 2000: Larry Kudlow, CNBC host. "This correction will run its course until the middle of the year. Then things will pick up again, because not even Greenspan can stop the Internet economy." This guy is still hosting his own cable show and spreading all the happy bullshit.  NOTHING BUT A CLOWN SHILLING FOR THE WALL STREET ESTABLISHMENT! 
And CNBC wonders why their ratings are down. 

April 2000: Myron Kandel, CNN. "The bottom line is in, before the end of the year, the Nasdaq and Dow will be at new record highs."  AND STILL NO CIGAR........

September 2000: Jim Cramer, host of "Mad Money." Sun Microsystems "has the best near-term outlook of any company I know." It fell from $60 to below $3 in two years. HE HAS COST PEOPLE MORE MONEY THAN ANYONE ELSE AND CNBS KEEPS HIM ON BECAUSE HE IS ENTERTAI
NING NOT WORTHY. BREAD AND CIRCUSES!   And CNBC wonders why their ratings are down. 

November 2000: Louis Rukeyser on CNN. "Over the next year or two the market will be higher, and I know over the next five to 10 years it will be higher." HOPE HE IS DOING BETTER IN THE AFTER LIFE!

December 2000: Jeffrey Applegate, Lehman strategist. "The bulk of the correction is behind us, so now is the time to be offensive, not defensive."  THIS IS ONE REASON LEHMAN IS GONE. OTHERS WILL FOLLOW SOON BECAUSE THEY ALL PEDDLE LIES, COMPLETE BIASED BULLSHIT PACKAGED FOR IGNORANT FOOLS WITH HIGH HOPES AND MONEY.  

December 2000: Alan Greenspan. "The three- to five-year earnings projections of more than a thousand analysts … have generally held firm. Such expectations, should they persist, bode well for continued capital deepening and sustained growth."  NOTHING BUT A COMMON THIEF WITH A HUGE EGO IN A VERY HIGH, POWERFUL POSITION. HIS ADVICE AND LACK OF HONEST LEADERSHIP HURT MORE AMERICANS THAN ANY FOREIGN ENEMY EVER HAS!

January 2001: Suze Orman, financial guru. "The QQQ, they're a buy. They may go down, but if you dollar-cost average, where you put money every single month into them, I think, in the long run, it's the way to play the Nasdaq." The QQQ fell 60% further.  HER INVESTING ADVICE IS PATHETIC AT BEST!

March 2001: Maria Bartiromo, CNBS anchor. "The individual out there is actually not throwing money at things that they do not understand, and is actually using the news and using the information out there to make smart decisions."  HER TOTAL LACK OF UNDERSTANDING CONTINUES TO AMAZE! A WELL CONNECTED, MEDIA SHILL AT BEST!  
And CNBC wonders why their ratings are down. 

April 2001: Abby Joseph Cohen, Goldman Sachs. "The time to be nervous was a year ago. The S&P was overvalued, it's now undervalued." Markets fell 18 more months. WHY THEY PAY HER I STILL DON'T KNOW, SHE IS NEVER RIGHT, NEVER, AND GOLDMAN PAYS HER MILLIONS. BETTER LUCKY THAN GOOD!

August 2001: Lou Dobbs, CNN. "Let me make it very clear. I'm a bull, on the market, on the economy. And let me repeat, I am a bull."  ALSO LONG AND WRONG!

June 2002: Larry Kudlow, CNBC host. "The shock therapy of a decisive war will elevate the stock market by a couple thousand points." He also predicted the Dow would hit 35,000 by 2010.  THE MOST DISGUSTING, THOROUGHLY IGNORANT FINANCIAL MEDIA PUNDIT ON THE AIR! 
And CNBC wonders why their ratings are down. 

Note:  The Dow didn't bottom until October 2002 at 7,286, down from 11,722.

There's some very strange social psychology being demonstrated in the markets and in politics, nowadays.

In looking back on some of humanity's darker moments, it's easy to ask how people allowed what was obviously ruinous behavior to continue without taking corrective action.

Short term benefit to a handful of people seems to trump the catastrophic, systemic downside, every time.





The valuation indices that track stock values indicate that we have been in an extraordinary period of historical over-valuation since 1998. The Fed has pulled out all the stops over the past decade to keep assets inflated. Should the confidence in the Fed's ability to do this disappear, these valuation indices would plunge to the levels of the early 20s, 1940s-50s and 1970s-80s. We are living through a grand experiment and the professors have gone mad!



The world’s most important debate?........... AN ABSOLUTE MUST READ!

The world's most important debate?

Last week the Bernanke Fed recommenced its interventionist tendencies and announced QE3. The world's most important central bank will be able to buy its previously targeted range of securities to the tune of $40bn a month.

The Fed probably felt newly empowered by the ECB's recent promises to action, and the deliberately awe inspiring words of 'Super' Mario Draghi. The world's most systemically important central banks are building their balance sheets and with it an even bigger hand in the world's most important financial game of poker.

The financial system gets more 'managed' every day, as the stewards at the helm implement their wrongheaded policies and corrupt ideologies.

What the debate is all about

There has been hot debate since the unfolding of the Financial Crisis in 2008 about the actual causes, the symptoms and necessary prescriptions.

The Neoclassical economists, who maintain numerical ascendancy in educational and research posts, central bank committees and political inner-circles, are convinced that we need to stimulate, borrow and spend more to prevent catastrophe, increase aggregate demand and monetary velocity, and generally protect and create jobs and wealth. This mainstream view, dominated by Keynesianism, is generally echoed in journalist circles and the mainstream media, and is still believed by the electorates in the Western hemisphere who hope the political and financial establishment can deliver on their ever increasing promises.  TRILLIONS HAVE NOT WORKED YET, TRILLIONS MORE WON'T HELP TO CHANGE ANYTHING EXCEPT TO MAKE THE EVENTUAL OUTCOME EVEN WORSE! 

The Classical school of economic thought thinks that this way of thinking is a sham, and that the crash of 2008 was firm evidence that the intellectual emperor of the status quo had no clothes. Hedge fund manager Kyle Bass echoed these sentiments succinctly when he urged that: 'Alan Greenspan traded the tech bubble for the housing bubble'. Concerns that central bankers trigger bigger and less manageable bubbles run high in this intellectual camp – you might have heard it referred to as the Austrian school of economics.  THIS GROUP IS SO FAR AHEAD IN BEING RIGHT ON THIS ISSUE THAT IT ISN'T EVEN A RACE. THE PROBLEM IS THAT POLITICIANS CAN'T AFFORD TO BUY INTO THIS TYPE OF THINKING BECAUSE REALITY WILL BRING PAIN AND PAIN DOES NOT BUY MANY VOTES! WHAT A TANGLED WEB WE WEAVE....... WHAT A SCREWED UP SYSTEM!

These Austrians argue that Keynes' multiplier is generally illusory and that his theories were special theories not general ones. They argue that monetary velocity is the joker in the pack, and cannot be controlled as Monetarists like Milton Friedman would hope. This way of thinking, that real wealth is created by hard work and enterprise – not by debt and spending, has real concerns with the current modus operandi of our political establishment and central bankers.

Jim Rickards' argues in his best-selling book, Currency Wars: The Making of the Next Global Crisis, the Fed has engaged in 'the greatest gamble in the history of finance… by printing money on a trillion dollar scale'.  AND FROM GREENSPAN ON THE FED HASN'T BEEN RIGHT YET!

Looking up at the Lords of finance

Back on Main Street and it all feels highly disconcerting.

The alternatives each side presents to its proposed way forward to the buzzwords of 'growth' and 'prosperity' are highly undesirable, and the differences of opinion (eg – on gold and money) are marked. It feels like we are ants looking up at giant protagonists in the US Congress, European Parliament or UK Houses of Parliament, with storm clouds circling overhead.  THERE REALLY IS NO DEBATE AT ALL, THE KEYNESIAN CROWD HAS COMPLETE CONTROL AND IS DESTROYING OUR ECONOMY. YES, SHORT TERM THEY HAVE PROPPED UP OUR LEANING TOWER OF ECONOMIC FOLLY. THE PROBLEM IS THAT THEY HAVE ADDED MANY FLOORS TO THIS ALREADY DOOMED STRUCTURE. 

What is difficult to ignore is that public debts continue to build (even if some private sector deleveraging has taken place), currencies continue to be printed and debased, confidence is weak, banks remain highly leveraged, financial repression tactics are openly pursued by central banks, economic growth and activity are worryingly sluggish (imports and exports are down), unemployment levels are high, and gold prices are still rising.  THE CRISIS IS CLEARLY GROWING NOT RECEDING!

This debate must be about the biggest and most pressing issues, as the implications and costs of being wrong are so huge. Our futures, jobs and livelihoods are collectively at stake. UNFORTUNATELY THE PUBLIC IS ECONOMICALLY ILLITERATE, EASILY LED IN THE WRONG DIRECTION AND APATHETIC AS ALL GET OUT.

It feels like we are living through the run up to an unavoidable reckoning for economics,politics and our soulless way of life. We should all carefully note what both sides have argued before 2008 (look decades further back to – perhaps to 1971), continue to propose now, and will argue as the Financial Crisis continues to unfold.

One side is likely to be proved definitively more correct than the other. It is obvious which side will be correct. The sad fact is that there won't be much left to gloat about with our economy in ruins and chaos in our streets.   

Which snowflake causes the avalanche?

Debts grow, and money is being printed, at staggering rates. This might be compared to the falling of snowflakes, by the classical economists, akin to the piling up of snow prior to an avalanche.


Whilst this might not be a comfortable era to live through, the results and changes to how we manage our economies will be fascinating. Will currencies collapse as confidence evaporates? VERY LIKELY! Is the founding collateral the financial system operates from irrevocably impaired? ALMOST CERTAINLY! VALUATION GUESSTIMATES AREN'T JUST WRONG, THEY ARE ABSURD AND THE PROCESS OF PRODUCING THEM IS COMPLETELY CORRUPT! CRIMINALS RUN OUR BANKS AND FINANCIAL INSTITUTIONS. THERE IS NO WAY OUT OF THIS MESS EXCEPT COLLAPSE FOLLOWED BY SOCIAL UPHEAVAL. WHEN LEADERS FIRST ORDER OF BUSINESS IS TO LIE IN ORDER TO SERVE THEMSELVES THERE CAN BE NO OTHER OUTCOME.   

We may understandably be suffering from issue fatigue, have become prone to tune out from the chatter of 'talking heads', and perhaps be drifting down the path of apathy and cynicism. Yet, amidst all that do take a moment to generally understand what the proponents to the mainstream debate would have you believe. NOTHING BUT COMPLETE BULLSHIT AND LIES AND THE PUBLIC IS TO DUMB TO GET IT!  HOW DOES THAT EVER WORK OUT ON THE PLUS SIDE? 

We're all aboard a roller-coaster ride that is old, unstable and has many broken parts. We are living through a truly unique moment in financial history. The forces of inflationary stimulation are doing battle with the financial system's apparent desire for debt destruction and deflation. 

The outcomes will be shocking to most people, not because they are hard to see but because of the level of greed and ignorance within our society. 

The Next Panic.........AN ABSOLUTE MUST READ!

The Next Panic

Europe's crisis will be followed by a more devastating one, likely beginning in Japan.


This summer, many government officials and private investors finally seemed to realize that the crisis in the euro zone was not some passing aberration, but rather a result of deep-­seated political, economic, and financial problems that will take many years to resolve. The on-again, off-again euro turmoil has already proved immensely damaging to nearly all Europeans, and its negative impact is now being felt around the world. Most likely there is worse to come—and soon.

But the economic disasters of our time—which involve big banks in rich countries, call into question the viability of government debt, and seriously threaten the reach of even the most self-confident nations—will not end with the euro debacle. The euro zone is well down the path to severe crisis, but other industrialized democracies are hot on its heels. Do not let the euro zone's troubles distract you from the bigger picture: we are all in a mess.

Who could be next in line for a gut-wrenching loss of confidence in its growth prospects, its sovereign debt, and its banking system? Think about Japan.

Japan's post-war economic miracle ended badly in the late 1980s, when the value of land and stocks spiked dramatically and then crashed. This boom-and-bust cycle left people, companies, and banks with debts that took many years to work off. Headline-growth rates slowed after 1990, leading some observers to speak of one or more "lost decades."

But this isn't the full picture: after a post-war baby boom, population growth in Japan decelerated sharply; the number of working-age people has declined fairly rapidly since the mid-'90s. Once you account for that, Japan's economic performance looks much better. The growth in Japan's output per working-age person—a measure of productivity for those who have jobs—has actually kept up with most of Europe's, and has lagged only slightly behind that of the United States. Japan is a rich country with low unemployment. Its private sector is by no means broken.

So why is Japan's government now one of the most indebted in the world, with a gross debt that's 235.8 percent of GDP and a net debt (taking some government assets into account) that's 135.2 percent of GDP? (In the euro zone, only Greece has government debt approaching the Japanese level.)

After World War II, Japan built a financial system modeled on those of Europe and the United States. Financial intermediation is an old and venerable idea—connecting people with savings to other people wanting to make investments. Such a sensible use of savings was taken to a new level in Japan, the U.S., and Europe in the decades following 1945—helping to fuel un­precedented growth for entrepreneurs and a genuine accumulation of wealth for the burgeoning middle class.

But such success brings vulnerability. Modern financial systems also permit governments to borrow large sums from investors, and as finance has evolved, that borrowing has become easier and cheaper. In the most-advanced countries, governments have increasingly taken advantage of expanding markets for short-maturity debt, whose principal is due soon after the loan is made. This has allowed them to borrow far more, and at cheaper rates, than they otherwise would have been able to do. Typically, these governments then take out new loans as the old ones come due, "rolling over" their debts. This year, for example, the Japanese government needs to issue debt amounting to 59.1 percent of GDP; that is, for every $10 that Japan's economy generates this year, the government will need to borrow $6. It will probably be able to do so at very low interest rates—currently well below 1 percent.

Devastating crises characterized the pre-war global financial system; these would typically raze banks and other institutions to the ground. In the whipsaw economy of those times, the widespread bankruptcy of borrowers would also ruin a generation of creditors. Over and over, these disasters repeated; some featured sharp inflation, others deflation.

Repeated financial ruin limited the buildup of savings, and the rising middle class was wary about borrowing and lending. The idea that government debt was a safe investment was also typically viewed with skepticism—and for many countries, correctly so.

New policies (and some good luck) dispelled extreme crises from the core of the world economy after WWII. Governments found ways to insure individuals' deposits, regulate financial markets, and press for banks to become better-managed—and thus less prone to collapse. Central banks became more willing and able to provide emergency assistance. The big financial innovations of the immediate post-war period strengthened the public backstops behind private financial arrangements, and these arrangements proliferated.

So too did publicly provided pensions. These pensions were initially an amazingly good deal for retirees, who paid in little. And as life expectancies increased, retirement benefits were extended. Throughout the rich world, these benefits were predicated on rapid economic growth powered by ever-expanding populations; workers were not expected to put in as much as they would eventually take out. The demographics began changing years ago, but the political incentives did not, nor did the availability of cheap, short-term financing, rolled over regularly.

About half of the Japanese government's annual budget now goes to pensions and interest payments. As the government has spent more and more to support its growing elderly population, Japanese savers have willingly financed ever-increasing public-sector debts.

Elderly people hold their savings in the form of cash and bank deposits. The banks, in turn, hold a great deal of government debt. The Bank of Japan (the country's central bank) also buys government bonds—this is how it provides liquid reserves to commercial banks and cash to households. Similarly, Japan's private pension plans—many promising a defined benefit—own a great deal of government bonds, to back their future payments. Few foreigners hold Japanese government debt—95 percent of it is in the hands of locals.

For ordinary Japanese, public promises about retirement benefits and price stability will be broken just as their private savings collapse.

Given Japan's demographic decline, it would make sense to invest national savings abroad, in countries where populations are younger and still growing, and returns on capital are surely higher. These other nations should be able to pay back loans when they are richer and older, supplying some of the funds needed to meet Japan's pension promises and other obligations. This is the strategy that Singapore and Norway, for example, have undertaken in recent decades.

Instead, the Japanese government is using private savings to fund current spending, such as pensions and wage payments. With projected annual budget deficits between 7 and 10 percent of GDP, Japanese savers are essentially tendering their savings in return for newly issued government debt, which is not backed by hard assets. It is backed only by an aging, shrinking population of taxpayers.

Japan's taxpayers are already rebelling against small tax increases needed to limit escalating deficits. This leaves little room for hope that future taxpayers will accept the larger tax increases needed to repay debts.  DISASTER IS COMING!

Japan's demographic decline will be hard to reverse—and even in the best-case scenario, the positive effects of a reversal would not be felt for decades. The economy, roughly speaking, is as healthy as it is likely to become. Yet the government seems incapable of steering away from the cliff, a characteristic that should strike no one as uniquely Japanese—just look at how the Euro­pean leadership has behaved over the past half decade, or how you can polarize American politicians with the phrase debt ceiling.

A crisis in Japan would most likely manifest as a collapse of confidence in the yen: At some point, Japanese citizens will decide that saving in any yen-­denominated asset is not worth the risk. Then interest rates will rise; the capital position of banks, insurance companies, and pension funds will worsen (because they all hold long-maturing bonds, which fall in value when rates rise); and fears of insolvency will surface.

Japan has some buffers against calamity—­particularly, its assets held outside the country (including more than $1 trillion in foreign-exchange reserves) and its unmatched ability to export. Nevertheless, the real value of the roughly $14 trillion in government bonds will fall significantly once people fully realize that the tax base is aging and shrinking. Presumably, the yen will also depreciate, perhaps sharply.

The fact that government debt is held mostly by Japanese citizens is not sufficiently reassuring. The same was true in Germany during the 1920s and Russia during the 1990s, yet in both cases the elderly lost their savings to high inflation. Today, Italian and other European savers who hold their own government's debt are already nervously edging toward the exits. As in Europe, the financial system in Japan could face a wave of insolvencies, triggering a broader loss of confidence.

The shock felt around the world will result not just from the realization that Japan is unable to meet its pension and other social obligations. Investors will also be horrified to see the disappearance of the private savings previously used to buy government debt, whether through debt defaults and bank failures or through high inflation. For ordinary Japanese, public promises about retirement benefits and price stability will be broken just as their private savings for retirement collapse.

No one can predict the timing, but without radical political change that creates a more responsible fiscal trajectory, this will happen.

The most worrisome implication of Japan's increasingly precarious position, particularly in the wake of the 2008 crash and Europe's ongoing crisis, is that our financial systems appear to be returning to their inherently unstable nature, which plagued the 19th and early 20th centuries. Financial institutions back then were not too big to fail—they were too big to save. Their balance sheets dwarfed most governments' ability and willingness to provide support.

Through the development of central banks and active fiscal and monetary policy, the rich world has managed to avoid serious depression for seven decades. Yet big finance—which tends to grow ever larger when crises are rare and credit risks seem muted—hides deep political flaws, the costs of which compound over time. Relative to the size of the world economy, global debt markets overall are two to three times their size in 1970.

Bankers and politicians seem to enable the worst characteristics and behaviors of the other. The past few years have led us to focus on half of that phenomenon: the degree to which government guarantees have facilitated irresponsible risk-taking on Wall Street. And this is, of course, an issue that demands continued attention.

But Japan illustrates the other half of the phenomenon—the extent to which finance has allowed and encouraged politicians to make attractive short-term decisions that are eventually damaging. This may ultimately yield worse crises than the one we faced in 2008 or the one now unfolding in Europe. 

Greece, Ireland, Portugal, Spain, and Italy found their own ways to eco­nomic devastation, but each road was paved with easy credit. Those whom the gods would destroy, they first encourage to borrow cheaply.

Of course, the U.S. is not immune. The immediate problem is not Social Security: that program's promises can still be covered by modest taxes, and significant immigration has helped prevent a demographic decline like the one Japan is seeing. Nonetheless, the U.S. needs to issue government debt worth about 25.8 percent of GDP this year, to roll over its debts and finance the deficit. About half of the federal government's debt is already held by foreigners. And a tax revolt has been building since the mid-'70s. Today, one side of the political spectrum refuses to consider rebuilding revenue to the pre–George W. Bush levels—and proposes to cut taxes further. The other side resolutely defends spending programs and middle-class tax breaks. Health-care spending, meanwhile, keeps rising—­largely because powerful lobbies can veto meaningful cost control.

Perversely, interest rates on U.S. government debt are lower than at any other time in living memory—the result, largely, of economic dangers elsewhere. The Europeans have ruined their economies—­and we have benefited from the consequent inflow of capital to our government debt, which has pushed rates down. When Japanese investors begin abandoning their home country, we will benefit again.

These benefits are temporary. Yet politicians have a hard time paying serious attention to fiscal deficits while foreign capital floods in. 

The financial sector is a powerful lobby. What policies does it demand? Financiers want pro-bailout policies kept in place—particularly the massive implicit guarantees against failure that they receive. And they want continued deficits. Our financial titans pay lip service to fiscal responsibility, but they primarily want to pay fewer taxes—­irrespective of what this means for government debt. Indeed, bigger deficits create larger markets for government debt and all of its derivative products, which in turn allow the financial sector's profits to grow larger. Many politicians are only too happy to oblige.

Elderly Japanese refuse to consider changing their pension system. The euro elite have closed their eyes to the unsustainability of their currency union. And the U.S. has Wall Street in the driver's seat.

We all have political systems that have figured out how to promise far more than can ever be repaid, and how to work with the financial sector to opaquely transfer resources to powerful groups—at a cost, it is often said, to be paid by future generations.

Increasingly, however, it appears that future generations will not be the only ones harmed by our decisions; we are already feeling the negative impact. In recent decades, financial sectors throughout the rich world grew at historically unprecedented rates; now they are dangerously outsized relative to the rest of the economy. Changing that dynamic in any orderly way looks extraordinarily difficult. Yet history suggests it will change, and soon. The era of large-scale, uncontrolled financial booms and busts—last seen in the 1930s—is back.