GOD can be in control, we just have to let HIM

By , August 24, 2010 9:28 pm

24 August 2010  If you have read my latest post on the state of our economy (Now and then 1929,2009, the coming depression, part XII) you would ask I’m sure, what hope is there if things are really that hopeless. If America found the perfect Congress and President to preside during these dark times, it would still take over 12 years for America to get on its feet and it would hurt. I have found over the years that when we trust God first and throw ourselves at his mercy that all things work out for the best; and that thinking applies to nations also.  {II Chronicles 7:14…If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.} Just prior to his death Moses gave some last words of encouragement to the nation of Israel in Deuteronomy 31.6: “Be strong and of a good courage, fear not, nor be afraid of them, for the LORD thy God, he it is that doth go with thee; he will not fail thee, nor forsake thee”. Though some could possibly make the argument that the scripture applies only to the Hebrews of the Old Testament; we are reminded in Hebrews 13.5: “Let your conversation be without covetousness; and be content with such things as ye have; for He hath said, I will never leave thee, nor forsake thee” As we are faithful to seek first the kingdom of God, then He will be faithful to meet our every need

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Now and then//1929,2009//the coming Depression, Part XII

By , August 24, 2010 8:52 pm

August 24, 2010Everything is not alrightNow and then//1929, 2009//the coming Depression. Part XII Since writing Now and then//1929, 2009//the coming Depression Part XI back in January things have only gotten worse, the lies and outright arrogant dismissal of what the American People want from our Government is appalling at best. I accept that no one President or Congress could possibly fix the economic mess we are in, certainly not in a short 18 months. What is so sad about the “fixes” coming from the Congress and President is the fact all of them have been for giant corporations, Wall Street and the labor unions, EVERY program for the middle class has not only failed but actually benefited the financial institutions. I wouldn’t feel so bad if there was some glimmer of sun light ahead of us; but, there isn’t. DO NOT, DO NOT allow anyone (of either party) tell you that everything is going to be alright. We are headed towards a full blown Depression; I have been saying this since May of 2008. There were many reasons stated throughout the series (all posted) Now and then//1929, 2009//the coming Depression.Here are some more reasons which support my thoughts that there is nothing with substance in our economic health and the Stock Market. (1) Washington is telling us that there is no inflation; actually there is ONLY the appearance that there is no inflation. For one thing, economically, the whole world is on life support-business aren’t spending(except for mergers and investment), consumers are doing with less, and unemployment will only go higher; with no spending there is no economic growth and we see what appears as deflation. Inflation is probably at about 10-12 per cent. (2) The greedy traders on Wall Street are sitting on $670 Trillion “high risk securities” called “derivatives”. If these contracts go bad, who buys them (remember-according to the Democrats in Congress and the President-there is no longer bailouts for “to big to fail”); we’ll see. (3) Without an economic recovery and some jobs the debt will soon require a Trillion dollars a year in interest. (4) America and the Dollar no longer dominate; China bought 47% of our debt in 2006, 20% in 2008 and only 5% in 2009. Last year, China bought a lot of oil from Saudi Arabia and for the first time ever Dollars were not used, same thing happened with Russia, Brazil, and India and on and on. Slowly at first, the Dollar will matter less and so will its value. How low will the Dollar be driven? If no one buys our Treasury Notes (debt), the interest on our debt is one Trillion a year, the debt is over 13 Trillion and unemployment stays at 10% (actual unemployment is 19%) or goes up the Dollar could drop 70-75%. Think about it, think about it hard; your retirement 401K of $100,000.00 would still be $100,000.00 on your statement but only purchase roughly $25,000.00 worth of goods or services. All of this could happen before the end of 2013, about a year into the Depression. (5) My grandchildren will be the first generation in over 100 years that will NOT have it better than the previous generation, what have we become? Everything we are facing today is the result of misguided and deceitful propaganda of collectivism and progressive policies of the last 24 years. In all fairness to Obama, he hasn’t done anything different that was not in place during the last 24 years, he simply has done in a short 18 months what three presidents did over 24 years and at an accelerated rate which has already destroyed our economic might and suppressed almost all individual rights. A study was done by some academics who studied 25 countries over a period of 800 years which found that EVERY TIME a nation’s debt went above 90% of GDP…the nation failed. Where is our nation’s (America) debt-to-GDP ratio today? It is above 90%. I don’t write these things carelessly, I try and choose my words with much thought and many times the truth is so ugly, so sad, so hopeless and so unbelievable that I don’t post what I wrote. Do not let anyone, not the Democrats, not the Republicans, not the President and his advisors (certainly not the Treasury or the FED), not your financial advisor, not Wall Street or anyone that is pushing the thought that everything is alright or getting better; folks, we are looking at 2017-2020 before the good times START to come back. I wrote as far back as late 2009 that the “Real Estate Bust” was far from over at a time when Obama and his people were telling us that things were picking up and that the recession was almost over, I stated then that “Commercial Real Estate” would bust and many banks would fail. Today on the news we learned that home sales fell 27% in July creating the biggest one month drop in history and the lowest we’ve been in 15 years. Is America too big to fail? Not anymore, and even if we were, who would bail us out?

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I’m still saying “Depression

By , August 10, 2010 7:50 pm

August 10, 2010Since I wrote the below nothing has changed for the good, we’ve had the Financial Bill passed which at best simply picks “winners and losers” on Wall Street and their financial giants and opens our daily financial transactions to the government. I have, however, underestimated the effect that Billions of Government Money has on the economy. I will revise my timeline for the upcoming Depression; I now believe that it will start in early 2011. By the end of 2011 or early 2012 we will be in a full blown depression. Keep in mind that if the government was listing all unemployed in their “unemployed rate” unemployment is actually close to 20 per cent. This upcoming “Depression” will probably last until 2020 no matter what party is in power. The damage this Congress and President have done to our economy will not repairable in four years. History teaches us that the Republicans rule during times of innovation and great economic upturns; the Democrats have normally ruled the country (with very few exceptions) during recessions, depressions and otherwise slow economic growth. After the “Great Depression” the Democrats controlled the House and the Senate for 40 years. This time history will NOT repeat itself because it is not Democrats in the Congress and the White House. What few REAL Democrats still in Congress have surrendered their vote and responsibility to the demands of the extreme radical progressives and the labor unions? The only question after the “mid-term elections” will be: did Congress bring down Obama or did Obama bring down the Democrats?    Now and then//1929, 2009//the coming Depression. Part XI//January 5, 2010We just lost 10 years; lost because as we come to the end of another decade it will be a decade of complete totally “negative” numbers in all areas of our economic health. I’ve been saying since May that we were heading towards a “depression” worst than the “Great Depression” of 1929. (Read all my writings on this series). As 2009 came to an end a few days ago the stock market actually ended positive and a nice 9 month upward rally; as I’ve stated more than once there is still nothing substantive about this market for it to maintain any meaningful growth. I stated back in May that upswings in the markets would be temporary, that another round of “real estate” foreclosures would precede a final “commercial real estate” bust which will result in many bank failures. I’m ready at this time to put a time table on this second round of foreclosures and the commercial real estate bust. This second blow to our economy will start in mid-march and run through September 2010. This round of real estate foreclosures, the failure of commercial real estate, office buildings and ensuing bank failures will be rapid and stunning. Now I’ve been saying that we were surely headed towards a depression since last May; now I believe that we are actually in the very beginning of that depression and would be surprised if we don’t start hearing the word “Depression” bounced around soon. Don’t be surprised if we finally hear Washington use the word “Depression” sometimes this summer. Let’s get back to the “Lost Decade”, the new millennium (2000-2009) ended with the DOW at somewhat over 10,000 (a rally of nine months) helped keep it there (but the DOW first reached the 10,000 mark in March of 1999), the S&P 500 index ended with a minus 9% and the NASDAQ took a negative to the tune of 40%; with numbers like that its fairly easy to call the last 10 years a “Lost Decade”. I also have some other numbers for you liberals out there that like to change history, manipulate data or simply spin fact with other data. During these 10 years (and particularly since Obama), our national debt has doubled, employment since Bush to Pelosi/Reid/Obama went from  4.9% to 10.2%, dollar has fallen, government stimulus efforts have failed and our leaders in Washington are doing things behind closed doors without regard to the wishes of the folks that elected them. [At the end of the “Great Depression” the 40’s ended with GDP growth of 72%, the 50’s end with GDP growth of 51.3%, the 60’s end with GDP growth of 53.1 and household net worth growth of 44%, 70’s end with GDP growth of 38.1 and household net worth growth of 28%, the 80’s saw GPD growth of 34.9% and household net worth of 42%, and the 90’s had GDP growth of 38.6% and household net worth of 58%. 2000’s end with household net worth of minus 4% and GDP only grew 17.8%] and we must remember that 14.6% was accomplished 2000-2006; the bottom line here is that things started going downhill when Pelosi/Reid  took control of Congress in late 2006 and intensified in severity during the last 12 months with Obama in office. Never in history has growth coming out of a decline (recession) been as weak as what we going through at this very moment and when you consider the Trillions in Government intervention it is more than sad and dismal, it is a disaster.

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