Thursday, January 31, 2013

"End of the Road for the Dollar?"

Despite unprecedented government spending, the U.S. economy contracted in the 4th quarter of 2012. That's right, the GDP (Gross Domestic Product) is very close to negative at 0.1% growth. The Fed is blaming everything but the kitchen sink.

The truth?

The economy shrank from October through December (the peak shopping season) because the so-called 'recovery' is really just an illusion. It's important to remember that the stock market is not a reliable indicator of economic health. One runs on facts and figures, the other on emotion. They are often divorced from each other.

John Williams, an expert at analyzing government statistics and founder of, says, "We haven't had a recovery and we're not about to have one, and it's getting worse...Nations usually don't go bankrupt, they print money. That creates inflation. They can't raise enough in taxes and unless they cut social programs, they can't cut enough (spending). I'm looking for hyperinflation by the end of 2014. Hyperinflation is virtually assured." Williams believes if Congress does not get its financial house in order by the new deadline in mid-May, "it will be the end of the road. They are not going to have another opportunity."

Michael Paterson of the Paterson Foundation contends they "may have prevented the immediate threats that the fiscal cliff posed to our fragile economic recovery, but we haven't remotely fixed the nation's debt problem." He went on to say, "The primary goal of any sustainable fiscal policy is to stabilize the debt as a share of the economy and put it on a downward path, and yet our nation is still heading toward debt levels of 200% of GDP and beyond." According to SIGTARP (Troubled Asset Relief Program) Quarterly report to Congress, the economy remains vulnerable to a "house of cards collapse."

These aren't just rumors; the dollar is under attack.

The dollar declines when it loses value in relationship to foreign currencies. As a result of the $16 trillion U.S. debt (much of it borrowed from China and Japan), the dollar has declined 54.7% against the euro between 2002 and 2012! Why would the United States permit its currency's value to slide?

Because it allows us to repay the debt with cheaper money.

In other words, a devalued dollar helps the government, but hurts everyone else.

Does this mean they will allow the dollar to collapse?

According to U.S. Economy, several conditions must be in place before the dollar could collapse:

  • an underlying weakness
  • a viable currency alternative for everyone to stampede into.
  • a triggering event would need to occur
The first condition is definitely in place. No one can deny the dollar is losing its mojo.

But a collapse?

It's hard to say because there are as many opinions as there are experts. Our advice? You do the math. Be ready for anything. Trust in God.

A wise man once said: "Any government, like any family, can for a year spend a little more than it earns. But you and I know that a continuance of that habit means the poorhouse." -- Franklin D. Roosevelt

"For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future" Jeremiah 29:18.

  • FNC: Deadly tornadoes demolish houses and buildings in Georgia
  • Debka File: Syria and Iran threaten retaliation for Israeli air strike on military site near Damascus; move strongly condemned by Moscow. Western intelligence agencies predict more military action between Israel, Syria, Hezbollah, and possibly Iran.
  • CNBC: Aetna CEO anticipates job cuts due to Obamacare; health bill written too quickly and not vetted enough, he says.
  • MSN: Rioting in Egypt intensifies; Egyptian Defense Ministry warns political violence could lead to country's collapse if riots continue.

Thursday, January 24, 2013

"Economic Chaos?"

It's official, people. This country really is unraveling. The wheels are coming off and there's no one in charge. The Government Accountability Office (GAO), responsible for auditing the federal government's books, released its annual report last week. The news is actually worse than the rumors flying around the internet.

It seems our government is incapable of providing accurate financial information. The GAO "must have ready access to reliable and complete financial and performance information" in order for an audit to be done. But guess what? The federal government hasn't bothered to keep track of the money!

The report states, "Absent policy changes, the federal government continues to face an unsustainable fiscal path." Translation: If they don't do something quick...put a fork in us 'cuz we're done.

The GAO report, which borders on the pathetic, cites the following 'weaknesses':

  • serious financial management problems at the Department of Defense
  • an "inability to adequately account for and reconcile intra-governmental activity and balances between federal agencies"
  • an "ineffective process for preparing consolidated financial statements"
The incompetence of our government staggers the imagination. Where is the media? How is it we've barely heard a word about it? It seems the mainstream media won't touch this story with a 10-foot pole. Why are they so committed to painting a rosy picture? You'd think they'd want to expose what's going on, but you'd be wrong.

Straight-talking Bill O'Reilly at the Fox News Channel broke the trend and said the unthinkable in his Talking Points Memo on January 18th: "If the feds do not stop the wild spending, the U.S. dollar will collapse."  (see for yourself at -- Talking Points Archive).

  • Government debt is now 73% of GDP
  • National debt is roughly $52,000 per U.S. citizen
  • Feds continue to monetize $85 billion every single month
  • There has been no budget whatsoever in 3-1/2 years
Boston University Economics Professor Laurence Kotlikoff warns, "The situation is getting worse and worse and worse. We are actually in worse shape than any developed country...we are using accounting that would make Bernie Madoff blush." Financial analyst Karl Denninger says, "The truth of what we have to do is still politically impossible. All you are seeing now is the tap dance around the fact we have to accept a 7, 8, maybe 10 to 15% fiscal contraction in GDP in order to come back into balance." The contraction in 2008 when the financial crisis began was only about 3%. Investment manager Tom Cloud warns, "People are starting to pull away (from U.S. dollar) and take care of don't want to be the last guy holding the bag."

Neither political party is acting like grown-ups. The Dems whine the GOP won't cooperate and the GOP claims they have no one to negotiate with. All they seem to do is point fingers at each other and complain. Worst of all, they keep pulling in revenue from the future and count it as spending cuts!

Both parties are equally responsible. All spending bills originate in the House of Representatives and the Republicans have had the ability to cut off spending for over 2 years now. So, what exactly are they doing--rearranging the deck chairs?

It's time for us to wake up and face the music.

When governments take in less than they spend, unchecked, year after year after year (without even keeping tabs!) and then print money ad nauseum, there is bound to be trouble. Big trouble.

Clearly, there are no adults in the room. We're on our own.

Where will you be when the music stops?

A wise woman once said: "You can avoid reality, but you cannot avoid the consequences of avoiding reality."-- Ayn Rand, author of Atlas Shrugged

"A prudent person foresees the danger ahead and takes precautions; the simpleton goes blindly on and suffers the consequences." Proverbs 22:3

  • CNN: Israeli PM Benjamin Netanyahu wins re-election by the skin of his teeth and is significantly weakened politically. Not likely to strike Iran.
  • Huffington Post: House of Representatives votes to raise nation's debt ceiling by an unspecified amount, suspending the federal government's restriction on borrowing until late May
  • MSN: Pentagon lifts ban on women fighting in combat
  • Fox News Channel: U.S. sends gift to Egyptian Muslim Brotherhood: 20 F-16 Fighter jets
  • NBC Dangerously cold temps cause serious health concerns and several deaths in Mid-west and Northeast

Thursday, January 17, 2013

"America in the Cross-hairs"

The debate over gun control reveals a lot about our nation. Number one? We are a divided people.

Pro-gun advocates, suspicious of any attempt to infringe on their 2nd Amendment rights, accuse the administration of taking advantage of recent events, while Joe Biden counters with the threat of using Executive Orders. The NRA (National Rifle Association) released an ad Tuesday labeling President Obama a "hypocrite" for allowing Secret Service protection for his daughters while dismissing the idea of putting an armed guard in every public school in America to protect other people's children. The White House called the NRA "repugnant and cowardly" for mentioning the President's children in the ad. The right accuses the left of being motivated by emotions and feelings rather than by facts, so anxious to "do something" that they often end up making matters worse. The left has become openly hostile to anything proposed by the right. A GOP Congressman threatens impeachment if Obama uses Executive Orders for gun control.

Really? Who's running this country--a room full of 12-year olds?

It's becoming increasingly clear that our once-great nation is in the cross-hairs of a spiritual attack.

The strategy? Divide and conquer. It's as old as the hills and diabolically effective.

Unrealistic? Not if you believe what Paul says in the Book of Ephesians:

"Be strong with the Lord's mighty power. Put on all of God's armor so that you will be able to stand firm against all strategies and tricks of the Devil. For we are not fighting against people made of flesh and blood, but against the evil rulers and authorities of the unseen world, against those mighty powers of darkness who rule this world, and against wicked spirits in the heavenly realms" (Ephesians 6:10-12).

Chapter 10 of the Old Testament book of Daniel also touches on this theme with a spooky, behind-the-scenes look into the spiritual world. Read the entire chapter to get a feel for what is happening all around us without our being aware of it (and while you're at it, read 2 Kings 6:14-17 for another eye-opening look).

It's time to pray, people. This country faces a myriad of problems and none of them can be solved because our government is too busy going at each other's throats. We are divided already, let's not allow ourselves to be conquered, too.

A wise man once said: "Congress is so strange. A man gets up to speak and says nothing. Nobody listens and then everyone disagrees." - Boris Marsholov

"If a kingdom is divided against itself, that kingdom cannot stand. And if a house is divided against itself, that house cannot stand. And if Satan has risen up against himself, and is divided, he cannot stand, but has an end" (Mark 3:24-26).


  • Debka File: Tehran has developed a rocket with a payload capacity of 330 kilograms, capable of placing nuclear warheads anywhere on the face of the earth.
  • Reuters: IMF's managing director, Christine Lagarde, says the global economy risks "catastrophic" consequences if the U.S. fails to raise its debt ceiling.
  • Jerusalem Post: Google Store provides free app with "inspiring" Hitler quotes, including a quote comparing Jews to blood-sucking mosquitoes.
  • Daily Intelligencer: Obama signs 23 Executive Actions relating to gun violence.

Thursday, January 10, 2013

"RFID Alert"

What do Mickey Mouse and the Son of Perdition (aka the Antichrist) have in common?

You guessed it--RFID technology! That's right. Big Brother has invaded Disney World, "The Most Magical Place on Earth".

Sigh. It was only a matter of time.

This week, in an effort to "push the boundaries of creativity and innovation," Disney announced their intention of "taking the Disney guest experience to the next level." Yes indeedy, friends and neighbors, the day of the E-ticket is looo-oo--ng gone. (If you don't know what an E-ticket is, ask Grandma).

Disney's billion dollar NextGen project features "Magic Bands", a wristband containing radio frequency identification. Designed to make life in the Magic Kingdom even more magical, Disney hopes the change will be a welcome one.

NBC reports "the wristbands will enable theme park officials to collect information such as purchasing and riding patterns as well as location data. Linked to customer's names and credit card information, the bands will function as room keys and park entry passes." Patrons will have the option of loading as much personal information into the chip as they like, depending on how "customized" they want their park experience to be. And get this--you can even send gifts ahead to be presented to your child by their favorite Disney character. Imagine the squeals of delight! The New York Times celebrated the idea of Disney characters "roaming the park, able to greet visiting children by name, and even being able to wish them a happy birthday." Sound fantastic?

Not everyone is thrilled, of course. Some commentors on the Stitch Kingdom Disney fan site said they felt "a bit creeped out" and "not terribly comfortable with the idea." Others believe it's "a blatant attempt to acclimatize kids to being tracked."

We believe it's an idea whose time has come; and, oh yeah...just one more example, one more tiny baby step in the direction the Bible indicates technology will eventually take us.

"Then Jesus turned to the crowd and said, "When you see clouds beginning to form in the west, you say, 'Here comes a shower.' And you are right. When the south wind blows, you say,  'Today will be a scorcher.' And it is. You hypocrites! You know how to interpret the appearance of the earth and the sky, but you can't interpret these present times" (Luke 12:54-56).

A wise man once said: "The new birth, or regeneration, is the act by which God imparts spiritual life to one who trusts Christ. Without this spiritual birth, a person cannot perceive spiritual things, nor can he enter the Kingdom of God."--H. Wayne House, Th.D., J.D.


  • NOAA: 2012 historic year for "extreme" weather with 11 disasters that surpassed $1 billion in losses in contiguous U.S.
  • CNN: USDA designated 597 counties in 14 states national disaster areas due to severe drought for crop year 2013 sparking fears of food inflation.
  • New York Times: Unemployment hits new high in Eurozone: 56% for Greece's youth.
  • New York Post: Estimated 25% of welfare recipients withdrew cash in strip clubs, liquor stores, and casinos.
  • Fox News Channel: 45 million Americans now on food stamps; up from less than 3 million in late 1960s.
  • KFI Radio: NRA up-in-arms over Veep Biden's comment that president could change gun laws by Executive Order.
  • Daily Mail: Survey of current crop of college students think they are the "Greatest Generation ever"
  • Centers for Disease Control: Boston declares public health emergency as 700 confirmed flu patients overwhelm hospitals; Many thousands unconfirmed cases. CDC says 29 states reporting high numbers of cases and vaccine shortages.

Thursday, January 3, 2013

"How Close Are We?"

Back in 1993, author Dave Hunt challenged readers to evaluate their lives in light of Christ's promise: "I will come again." Hunt wrote an excellent book titled, "How Close Are We? Compelling Evidence for the Soon Return of Christ."

The evidence was compelling back in '93...but Jesus didn't return. Here we are twenty years later and yes, the evidence is infinitely more compelling. But as the years pile up, many of us have lost that urgent sense of expectation. The early church eagerly hoped Jesus would come at any moment. Do we?

Before answering that question, let's take a moment to consider How close are we? Not to Jesus' return, but to Jesus. Deuteronomy 16:5 says: "You shall love the Lord your God with all your heart, with all your soul, and with all your strength."


Imagine demanding that kind of commitment from someone...unless of course, we planned to spend the rest of our lives with them. Under those circumstances, we'd feel we had a right to expect genuine devotion. Few of us would be content with a half-hearted, lukewarm commitment. It would be demeaning, insulting even. But isn't that what so many of us offer to God?

The Bible calls Jesus 'the Bridegroom' (John 3:29) and the Church 'the Bride'. It says He has chosen us to spend eternity with Him. In John 14:23, Jesus said: "If anyone loves Me, he will keep My word; and My Father will love him, and we will come to him and make our home with him. He who does not love Me does not keep My words."

Is loving God a feeling? It can be, but the word translated as 'love' in Deuteronomy means "to make one's choice in." God commanded His people to choose Him with all their being, and in the process, to deny  themselves (Matthew 16:24). Oh. So that means loving God isn't all warm fuzzies. It costs something.

Yep. And God will hold us accountable for how we live this life (1 Corinthians 3:14-15). After all, He left us detailed instructions in the Bible and commanded us to follow them. If we choose not to, we probably haven't chosen Him with all our being.

Someday Jesus will return for His Bride. How close are we? In terms of world conditions, we are undeniably very, very close. In terms of the heart? You be the judge.

"Finally, there is laid up for me the crown of righteousness which the Lord, the righteous Judge, will give to me that Day, and not to me only, but to all who have loved His appearing" (2 Timothy 4:8)

"There is no judgment awaiting those who trust Him. But those who do not trust Him have already been judged for not believing in the only Son of God. Their judgment is based on this fact: The light from heaven came into the world, but they loved the darkness more than the light..." (John 3:18)

"...there are many whose conduct shows they are really enemies of the cross of Christ. Their future is eternal destruction. Their god is their appetite, they brag about shameful things, and all they think about is this life here on earth. But we are citizens of heaven, where the Lord Jesus Christ lives. And we are eagerly waiting for Him to return as our Savior. He will take these weak mortal bodies of ours and change them into glorious bodies like His own, using the same mighty power that He will use to conquer everything, everywhere." (Philippians 3:18-21)

"For in just a little while, the Coming One will come and not delay." (Hebrews 10:37)

"Let us be glad and rejoice and honor Him. For the time has come for the wedding feast of the Lamb, and His Bride has prepared herself...these are true words that come from God." (Revelation 19: 7-8)

A wise man once said: "The key to being able to participate in the wedding banquet is faithfulness to God."--Earl D. Radmacher, ThD.

  • Fox News Channel: New Gallop Poll reveals the majority of Americans believe the nation's best days are behind it.
  • CNBC: 2% tax hike slated for all Americans who earn a paycheck starting January 1st as payroll tax holiday expires; roughly $100 per month for median income group.
  • MSN: Moody's threatens to downgrade U.S. credit rating if no effort is made to control debt.
  • Fox News Channel:  White House makes massive document dump on Friday before Christmas containing thousands of new regulations and riddled with errors.