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Where's It All Headed ? ? ? |
| Lesson 7 |
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Where's It All Headed ? ? ? |
| Lesson 7 |
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The Bible states that perilous economic times will come. In 1933 money was replaced with Federal Reserve Notes (Debt) which were declared to be "legal tender." |
The Bible is clear in warning us that
perilous times will come. There will be perils to our health, our families, our finances,
and even our lives. This section addresses those perils pertaining to our individual finances and on a
national scale, to our economy. Up to here in this series we have seen that, during the early part of the 20th century, honest money (money with intrinsic value) was replaced with debt. Federal Reserve Notes were, by government order, declared to be MONEY or legal tender. We learned, also, that this fiat money is created by United States banks (which are required to be a part of the Federal Reserve.) |
| Abandonment of the gold standard was the act that made it possible for endless creation of worthless Federal Reserve Notes | Look at any bill in your purse or wallet and you will notice it says "Federal Reserve Note." In other words our money is nothing more than an IOU or debt obligation of the Federal Reserve. In the early 1900s a $20 bill was not a Federal Reserve Note but rather a Gold Certificate which clearly stated that it was redeemable in gold. The presence of such honest money came to an end when our legislators allowed the recall of gold, replaced the Gold Certificate with the Federal Reserve Note, and removed all reference to redeemability in gold. Since that time the Federal Reserve has relentlessly inflated this currency by printing more and more worthless paper to finance uncontrolled government spending. In so doing, it has sliced the value of the dollar to a fraction of what it was. |
| INFLATION - An increase in the money supply | Contrary to what we are taught, inflation is not rising prices. Prices rise as a result of inflation. Inflation, by definition, is an increase in the money supply - a process that can be accomplished by only two sources: counterfeiters and the Federal Reserve. As we have already learned, these terms are synonymous. |
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The Fed: A private cartel |
Note also, that the Federal Reserve is not a governmental entity but, rather, a private enterprise. A private source assuming the duty of government to coin money violates Section 8 of the US Constitution which charges Congress with the power "to coin Money . . " and "to provide for the punishment of counterfeiting the securities and current coin of the United States. |
| Runaway Inflation foretold in the Bible | In Amos 8:5 we are told that: "the ephah will become small and the shekel great, falsifying the balances by deceit." This is a biblical portrayal of what economists call "runaway inflation." Such intense inflation will come about as a result of dishonest, paper systems finally being manifest for what they truly are - a lie, a deception, and a fraud |
| Inflation steals purchasing power. It benefits the "players" (i.e. the borrowers) at the expense of those who refuse to borrow - at least temporarily | There is more to be said about this subject than can be covered here. Suffice it to say, however, that through the process of inflation the wealth of Americans has been systematically stolen over many decades. For many who would enroll themselves as "players" in the financial markets of the world, temporary gains have been realized and the pangs of inflation have been avoided. Those who shun the glitter of fast-paced, speculative, leveraged investment strategies are chided for being "old-fashioned," foolish," "missing the boat," etc. They have, in fact, been swindled through the declining value of their monetary assets that has resulted from years of uncontrolled money supply expansion. While they have not benefited from the temporal gains realized by those who have enjoined themselves to the system, their refusal to yield to a dishonest money system will ultimately be rewarded as fiat money is seen for what it really is. |
| Up to now the "benefits" of an unjust money system have been sufficient to divert closer scrutiny. | For a number of reasons the extent of the grand larceny of fiat money and fractional reserve banking has been hidden from public view. For one, fiat money's long run with seeming impunity has enabled it to avert public scrutiny. Secondly, the fascination of potential capital growth through the money multiplication measures afforded by a fiat money system is taken by most as a competitive challenge and, in fact, viewed as a "benefit." Lastly, the majority of the public is totally unaware that fiat currencies around the world have been falling like dominos in recent years - leaving in their wake a swath of financial and economic devastation that has robbed millions of their hard-earned savings. And this is just the beginning of what is yet to come. |
| Fiat currencies promote speculation and greed. | Fiat currencies open the door for speculators - especially elite, insider, opportunist-speculators - to profit handsomely by trading one currency against the other. Well known hedge funds such as the Quantum fund headed by George Soros and the Long Term Capital Management fund led by John Merriwether made handsome profits for their clients - at least for a while. But even the so-called experts ultimately find themselves snared by multiple, concurrent events that they never anticipated. |
| As prophesied, economies are already beginning to unravel | In recent years continually mounting evidence has surfaced that this prolonged financial blight upon our land is already beginning to unravel. The Bible prophecies recorded thousands of years before are coming to pass right before our eyes. While the American public is gleefully distracted with such entrapments of modern-day financial phenomenon as "the new economy," day trading, margin buying, futures, options, and general investment euphoria, the fundamental soundness of our moral, political, spiritual, and economic systems continues to be steadily dismantled - totally unnoticed by most. |
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Don't ignore the signs of the times. Global currency crises have already begun in Mexico and in many Asian countries. Following the world's counsel will bring us to financial destruction. Deception and greed will entice us and ensnare us in the world's ungodly system. |
Scripture admonishes us to understand
the signs of the times. Yet despite the clear counsel of God's word, the injunction
of His prophets, and obvious evidence everywhere before us, the people of God continue to blindly follow the ways
of the world. Consider the following aspects of our current economy and financial markets:
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| Reckless easy-money policies end up in credit "bubbles" that are destined to burst. | History shows us that such relentless
irrationality and greed can feed itself just so far before a reversal sets in.
And the more extended the period of irrationality and greed, the greater will be the downturn
when the euphoria has ultimately run its course. The simple basics that are overlooked in extended periods of apparent economic strength are that for stock, bond, or real estate markets to maintain abnormally high levels requires proportionately greater infusions of money and credit. In order for someone to buy your 1000 shares of Microsoft or your house that has tripled in value over recent years, for instance, there must be an "open spigot" from which this money is supplied. The Federal Reserve is the entity that turns the valve and since 1999, the Fed began to shut off this spigot through a series of hikes in the fed funds rate. After the NASDAQ stock market crash of 2000 and the drying up of venture capital following the dot.com meltdown, however, the Fed has opened the floodgates once again to avert the proverbial "hard landing." |
| We are on the verge of a credit "implosion." | Because of profound changes mentioned
the Fed's "tightening" of monetary policy will begin to downward circular pattern which might be
likened to a dragon eating its tail. If a bear market mindset sets in, for instance investors
may decide to cash out and spend their gains before prices rise further. As price inflation is perceived as an
ongoing threat, spending will increase to avoid losing purchasing power. This will cause the Fed to raise rates further
which will begin to sharply curtail the real estate buying resulting in falling real estate prices; and on, and on.
Just as a runaway train may successfully negotiate a few curves in the track it is only a matter of time, as it picks
up speed, before it jumps the rails in a disastrous wreck. |
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God is not mocked Those who pursue wickedness will receive their just reward. |
At Royal Bounty Financial the central
focus of all that we do is the word of almighty God - The Holy Bible.
The fact that modern society, by and large, rejects it and that our government takes every
opportunity to eliminate it from our lives makes it no less true. God is God and he will not be mocked.
His truths obeyed bring blessing; his truths rejected bring cursing.
Of the wicked the bible says: |
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God always provides an "ark" of safety for his people To be protected, however, you need to be in the ark. |
But for the righteous - those who have accepted God's free gift of salvation that was purchased by the precious blood of Yeshua, Jesus the Messiah - God has provided a place of safety. This place is not found among the places occupied by those who give God no place in their lives. Rather, it is in the secret place of the most high. It is a "set apart" place; a holy place and only those who are willing to come out of the world's financial system and conduct their finances according to God's holy plan will know God's protection when the financial systems of this world see destruction. |