GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 2: Why is gold such an undervalued asset?

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Financial truth is very difficult to come by these days especially when it comes to gold.  The mere role gold plays in global finances is completely misunderstood by most financial advisers and talking heads because the truth has never actually been revealed to them.  They don’t have a truthful financial basis to operate from.

Truth in gold history has never been taught in any school of global economics.  It’s not made available for public consumption.  It’s one of the many hidden secrets possessed by the powers that be for their use, not ours.  That’s why the media and so-called experts of modern day economics never even take into consideration who truly runs the higher and deeper aspects of our totally controlled and manipulated financial system.  They have no idea really who controls the world’s gold, ancillary accounts, and other valuable precious metals, and how that really plays out when our financial system finally does bottom out.  The truth pseudo economic experts don’t understand and therefore are incapable of telling us about is this:  The key to global finances is in possessing the world’s gold supply, and then controlling all forms of income derived therefrom.

When you play by marketplace gold, for instance, in today’s modern world rules you know that Comex is a major player in gold paper trading.  Comex is the primary futures and options market for trading metals such as gold, silver, copper, and aluminum, and did you also know that Comex is run by the banks?  Which means the banks control the inflation and deflation of fiat currency and the paper that controls the price of gold.

Something else that’s not programmed into our box of understanding: the banks have all the financial control, and we do not. 

“The interesting thing about the Comex is if you understand that it’s run by the banks who have market making monopolistic power then you know they’re going to lead the speculators into the wrong footed positions all the time,” says Craig Hemke, Sprott Money News.

That’s how the banks control the average investor and this is something most people who invest in gold never realize.  What they’re being told is part of the financial smoke and mirrors financial game of fraud.  Paper gold is not the same as precious metal stored in a safe deposit box, and its prices are manipulated by the banks.  Paper gold is actually worth little more than the paper it’s not written on.

As for silver, many experts believe the banks are not going to be able to deliver as promised on the open interest in December because there’s not enough recorded silver in their possession and under their control.  “Is there not like a billion ounces of open interested silver.  Like nobody has a billion ounces,” Eric Sprott says in Hemke’s weekly Wrap-Up interview called, What”housing Armageddon” means for gold and silver

The gold exchanges are not going to be able to pay off the contracts and they’re going to be scrambling to get precious metals on the open market that are not going to be there.  The reality is gold and silver are being bought out of global marketplace existence at a record pace by the East as we in the West suffer through financial misunderstanding and blindness and the worst financial crisis in our lifetimes.  The media is telling us our economy is booming while our family’s inability to make financial ends meet tells us otherwise.  And it’s not just us.  All the markets are reeling for everyone across the world at the same time.

“We seem to be having, one, economic weakness across the board,” Sprott says.  “German GDP was down, Japanese GDP down, Hong Kong GDP weak.  We’ve got stress in housing pretty well in all developed countries.  Auto sales are weak, and more notably in Europe.  That and travel data seems to be weakening off here.  And we’ve seen a lot of concerns about that.  And two, you have the signs of market that’s under a lot of stress here.  The fact that it’s almost flat on the air now.  Bonds have been weak.  No pension fund can be making money.  It’s almost impossible,” Sprott says.

America’s top shelf corporations are also taking a beating and we can see the bailouts are coming to corporate America while the rest of us starve.  “You got GE getting hammered.  You got PGE getting hammered.  Of course Apple’s in there.  Goldman Sachs is getting hung out here because of their involvement with Malaysian fraud that cost the Malaysian government $4.5 billion dollars,” Sprott says.

Malaysian people go hungry and the Malaysian King marries the former Miss Moscow after visiting a fertility clinic as financial debt continues to mount with internationally coordinated answers seemingly nowhere in sight.  We have a lot going on in the world that’s not very good from a market perspective and nobody’s offering viable solutions.  Companies are being negatively affected by the trade war, which doesn’t look like it’s going to be resolved anytime soon, and the media is not focused on what that has to do with our economy, jobs, or ability to feed our families.  The media is part of the disinformation campaign.

We have global humanity issues like Ebola raging its ugly head again in Africa.  Warnings from the CDC can cause chaos in the global economy, certainly affecting travel.  

We’ve got Brexit and nobody’s pricing that in if all of a sudden that goes south and the Euro rallies and the dollar falls. Who’s going to tell us the truth of how we play out that potentially catastrophic scenario?

“We’ve got major potential problems with the commercial paper market,” Hemke explains, “and all the GE short term debt that’s out there and held by people.”  One look at all of what’s happening around the world in the financial markets and we realize factors that are not being priced into real time economics. 

Do we have any idea that interest rates are going to kill us?  Mortgage rates have gone from 3.6 percent to 5.2 percent.  That’s almost a 45% increase in interest costs alone.  “Welcome to housing Armageddon here,” Eric Sprott says.

We’re seeing major signs of stress in the bond market.  “Some of the best commentators are suggesting that there’s fundamental weakness.  In fact, one of the best says, ‘You know, we all knew it was phony.  Zero interest rates and the printing of money.’  The whole nine-year rally from ’09 to today, we knew it was phony.  It was the elephant in the room.  But because the markets kept going up, we didn’t worry about it.  Well, you know what?  Now that we’ve reversed things, we see the elephant in the room.  Which is higher interest rates and restricting money,” Sprott says.

So what happens when the Fed raises interest rates even more?  They’ve scheduled four Fed rate hikes for next year.  Even the Wall Street Journal said the Fed should hold off on hiking interest rates, which will send bond prices plummeting, with our families stuck in the middle with nowhere to live.  The housing market is crashing in all four corners of America.  Rising interest rates and low paying jobs are preventing families from being able to buy new homes or cars and our future is being left up to the Fed raising rates which only benefits them. 

They’re going to begin printing more money than ever at some point with real risks of hyperinflation kicking in and we have no idea what we’re going to do to have a prosperous future with the U.S. dollar.  Which is why we keep hearing talk about a return to the gold standard.

Eric Sprott believes it’s the only thing that makes any financial sense.  “If you can own gold at twelve-hundred-and-twenty-bucks and a year from now it’s still 1220 and the markets are down forty percent, that’s one great move on your part, “Sprott says.

HOW MUCH WILL GOLD REALLY BE?

Some financial experts believe gold is going to explode in value once the banking control mechanisms, financial restraints, corruption, and price manipulation have been reversed and the criminal bankers arrested and/ or intentionally retired, with some pricing a future ounce at five figures.  “The $10,000 announced number comes from people calculating – based on the amount of fiat currency that exists in the world – what it would take to go back to the gold standard as it used to be structured,” financial writer John Rubino says.

In other words, if you have that much gold backing of the existing fiat currency in the world, what price of gold makes that balance?  “You know, makes the equation balance.  And $10,000 an ounce pretty much does it right now,” says Rubino who founded dollarcollapse.com, a financial blog and news aggregation site. 

One of the major problems however with trying to calculate the future value of gold is that the amount of global debt increases dramatically with every passing day.  So the number of debt is rising along with the amount of paper currency in the world.  That’s a major part of what keeps the fiat currency system expanding and afloat.

So if we own gold Rubino is saying that the $10,000 figure is right now what we’re looking at for the future.  When the economy crashes at some point the value of gold will be $10,000.  But on the other hand, it may be higher.

If the U.S. dollar dies to zero, gold could shoot to infinity, Rubino says.  “And if you assume that the fiat currencies that are out there today are not just going to fall and then be devalued – but they’re going to fall to zero.  If they’re just going to evaporate then your number for gold is infinity,” he says.

So somewhere between $10,000 an ounce and infinity is probably where gold will end up in the next monetary system, after we have the reset.  After everything has crashed.  If we’re still alive.

The experts keep saying that we can’t know the timing because we can’t know the exact progression of global events.  Gold and silver are good to own because their trajectory is going to be upward regardless of what happens geopolitically and to global currencies.

That’s a lifetime of investing right there, some experts say.  That’s all we really need to do is buy a bunch of gold and silver right now and ride it until this thing plays out, and we’ve basically done our financial thing for a lifetime.  So long as we can avoid confiscation.

What the mainstream media fails to tell us is that if we don’t want to be owned by the financial markets right now we will probably want to be as safe as possible.  We will want hard assets that we either own or store in a very safe place, that won’t just evaporate in a financial crisis or be confiscated when the government is desperate for funds and starts to go crazy. 

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GOLD WARS: TRUE HISTORY OF GOLD AND THE GLOBAL FINANCIAL SYSTEM, Vol. 1: Have our minds been programmed into boxes of limited understanding?

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Have our minds become programmed boxes of limited understanding?  Is that why we don’t know anything about truth in economics?  If so, how do we solve the problem?

Truth can be very difficult to ascertain these days.  It is being censored from the Internet at an unprecedented rate.  Our history books have been recorded with false insight dictated by the victors and survivors of centuries of calculated wars, population control, and the nonstop deadly assault on all living creatures, that has left the average human suffering interminably and filled with false ideas of just about every important concept known to man. 

We are being poisoned through our food, water and air and the threat of nuclear annihilation, burning by firestorm, or freezing to death in one of America’s East Coast storm cycles has become more terrifying and real each killing season.  We have been bullied and dummied down into a slave generation by governmental overreach and bound by the mind-programming leash of the iPhone, Internet, social networks, AI, and controlled-message technological programming. 

We know nothing of bio-engineering, multi-dimensional beings, global geo-engineering, or lost civilizations of God-like giants.  Our minds have been shrunk into boxes of manageable and finite data-knowledge, constituting our world of limited understanding, with some people’s boxes of data-knowledge being bigger than other’s.  All we know is what they tell us which isn’t much as we become just another brick in the wall.

Truth in money has never been a part of our programmed learning.  We don’t know about finances because it has never been intended to be a part of our history classes of life’s learning curriculum.  For those who can afford a seat at one of the universities of higher education to learn about economics, they are subjected to a mind-box-expanding but falsified history of pseudo financial theory combined with a fraudulent understanding of what has essentially always been a controlled and corrupt financial system.

Besides, global economics is complicated and who has the time to mess with it.  Does anyone really care how the life cycle of a fiat currency works and how its end is going to affect their families?  How hedge funds survive on algorithms and who controls all the financial markets are not usually the subject matter of family dinnertime discussions.  Many big questions with truthful answers are lost on the perplexed and fooled financial talking heads, who then misinform the masses who have either already shut off and become immune to the drone or taken the bait and invested and lost everything in manipulated and corrupt markets.

For others, tackling the major issues of the day is something that’s in their blood.  They’re modern day truth-warriors who take the world’s plight very seriously for the sake of humanity and try to solve problems for all of us.  They’re the bright headlights of a dim basement who look at gold as not an inconvenient truth but as the world’s future of prosperity.

These individuals understand that the truth is about national sovereignty, individual sovereignty, and freedom versus globalization and the total blackout enslavement of mankind forever.  Gold and financial truth is at the center of all of it.  Which is what they’re trying to awaken us to.  He who has the gold controls the world.

It’s about time we awaken.  Our families’ lives depend upon it.  Sh*t is beginning to hit the proverbial fan at a very hard velocity and solutions need to be found fast or a lot of us could end up not making it.

DISCLOSING TRUTH BEHIND LIES OF BANKERS

Greg Hunter of USAwatchdog.com doesn’t mince words as he blows up boxes of limited understanding.  Hunter recently started digging deeper into the dark world that is secret American government debt, in this case the verified missing $21 trillion from the Department of Defense (DOD) and Department of Housing and Urban Development (HUD), and he didn’t like what he was hearing from financial talking heads not knowing what they’re not talking about.

“You hear these people talking about, we’re wealth managers. Yeah, have you factored in this extra 21 trillion?  What 21trillion?  I mean this is stupid.  This is real.  People better factor this in,” says Hunter in his recent interview with Rob Kirby.  “They’re going to be asking, why weren’t we told about this?  A lot of mainstream media people are ignoring this; Fox Business, CNBC.”

That’s a lot of dollars to just go missing for the mainstream networks and media not to even talk about it.  We are being lied to and the financial experts and talking heads are not applying the math correctly when they predict the next big investment for us.  Why are they doing that?

“Greg, the issue is it seems too big to believe.  People cannot wrap their heads around how big 21 trillion is,” Kirby says.

A thousand times a billion times 21 equals 21 trillion.  That’s how much is missing in this particular instance that we’re not being told about by our government or the media.  This is what happens to truth in media when it comes to financial history and convenience of memory.  It gets buried under layers of piles of lies and half-truths.  Truth is something to be withheld from us and understood only by those who control our finances.  In this case, truth being too big to even believe.

GOLD WARS

Same thing with all the missing gold.  We’re being lied to about gold and that lie has been pervasive for as long as governments and banking have been working together behind the scenes to control mankind.  That’s why Greg Hunter, Catherine Austin Fitts, and Rob Kirby are desperately searching for the hidden truth of missing trillions from our government, where it’s been taken, and what that means for our future financial system.

We at  Family Law and Wealth Preservation Mediation Center are adding to that discussion as it relates to gold and global finances by posting this first of its kind ongoing series called, Gold Wars: True History of Gold and the Global Financial System

We’re going to dig deeper in examining what some of the world’s most renowned experts are saying through loud speakers about missing money and gold from our global financial system and how that affects your financial present and future.  We’re going to bring to light what Rob Kirby has been saying about the endless amounts of stolen money used to fuel our totally corrupt financial system and Federal Reserve Bank and why the central bankers should be hung by their necks.

We’re going to examine precious metals analyst and financial adviser Gerrit Visser’s explosive expose regarding the truth behind the world’s gold reserves and America’s slim chances of ever having access to any of it.  We’re going to explore financial expert Catherine Austin Fitts’ claims that $21 trillion to $50 trillion is missing from two U.S. governmental agencies alone and why the government is shifting massive amounts of money out of the U.S. government and out of the U.S. economy and taking it into the “dark.”

WE’RE GOING TO HAVE TO LEARN THE TRUTH ABOUT GOLD AND THE GLOBAL FINANCIAL SYSTEM

We are also going to analyze our country’s present financial predicament and whether the United States actually has any gold.  Our future financial system depends on us having enough gold to solidly back a new U.S. currency.  We know President Trump wants America to return to a gold standard but do we have any, and if not, why not and who does? 

Who really owns the world’s gold supply and what is the true history of gold in global commerce and wars, and how does that play out in America’s future? are important questions we all need to be asking.  The truth might shock you. 

In a wildly informative e mail forwarded to me recently by my former client, an international banking and economics expert named Rita R, in response to one of my previous articles called, What Happened to HR 5404 – and the New Gold Backing of America’s Currency?, Gerrit Visser issues this dark warning regarding supposed U.S. gold holdings:

“FINALLY A STRONG WARNING TO EVERYONE.  BE CAREFUL WHEN AMERICA STATES IT WILL BACK IT’S NEW DOLLAR WITH GOLD.  IT’S A VERY WELL STRUCTURED MAGICAL TRICK BY AMERICA THAT WILL GET YOU EXCITED AND SUCKED IN.  IT’S NOT REAL.  ITS A MIRAGE.  IT’S AN ILLUSION AND THE PEOPLE WILL END UP BEING THE LOSERS BECAUSE AMERICA HASN’T GOT THE GOLD IT CLAIMS IT HAS.”

Learn the truth about gold and our financial system.  Read Gold Wars: True History of Gold and the Global Financial System.  Don’t miss this running series of historical financial significance.  Our families’ survival is dependent upon it.

THANK GOD FOR GOLD, PART 2

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The Western financial system as it is tied to the U.S. dollar is saddled with so much debt and unfunded liabilities that it is on the verge of total collapse.  It’s difficult to tell when or what could trigger it.  It could be a single major event risk, or a corporate, state, or major municipality bankruptcy, or untimely hot war.  It’s not a matter of if but when

The question for our family is when it all melts down how are we going to find our way back from the ashes of a broken financial system to have a prosperous future?  We go back to some form of a commodity based currency, says financial writer John Rubino, co-author of The Money Bubble and The Collapse of the Dollar and How to Profit From It.  A currency that is linked to something real, and exchangeable for that real thing. Something that is not fiat currency.

“It limits the government’s ability to increase the money supply,” John Rubino says of valuable commodity backing of national currency.  “It ties it to the increase in supply of that commodity.”

This is where God and gold merge into a new financial system similar to what we used to have.  The kind of global economics that had United States finances running abundant and clear for two centuries.  “With gold, the reason it worked for 200 years, during the classical gold standard, was that the supply of gold goes up to about 2 percent a year,” Rubino says.  “So the supply of money linked to gold was stable for 200 years with no inflation.”  This was all wiped out by World War I, and the last 100 years of war. 

A global financial reset looks to be accomplished through devaluing the dollar relative to gold, which is where God comes in, backing our currency with lots of precious metal. “So we’ll announce on some Sunday night when all the markets are closed that henceforth the dollar now is just a name for one-ten-thousandth of an ounce of gold, or some number in that ballpark,” John Rubino tells USAwatchdog.com.  “And going forward we’ll be able to exchange dollars for gold, via the government.  We’ll have a sound money system.”

WHAT IS GOING TO BACK OUR NEW FINANCIAL SYSTEM?

Debt is going to be wiped out and fiat currency is going to be devalued or replaced.  So what’s going to trigger it? 

“Event Risks” are rare but they can impact markets harshly.  Event risks can brew for along time.  People know it’s out there,the one triggering event, but it’s unquantifiable, virtually impossible to time.  “A key reason is that one can never be sure of the outcome, the implications and more importantly, from a market’s perspective: The reaction once the event unfolds,” reads an article entitled Event Risk. 

We can expect secret indictments with many arrests and high political resignations anticipated by experts from both ends of the political spectrum.  There have been major allegations of voter fraud in the recent Midterm Elections and buildup toward exhaustive political investigations heading both left and right, north and south.  And how about the president’s constant Twitter attacks.  How soon will it be before one of these events has a direct, irreversible market impact? 

Political uncertainly does not breed confidence in financial markets.  “Waning confidence breeds more waning confidence and before you know it you’re in a bear market,” zerohedge.com says.  “From the time of Nixon’s re-election to his resignation markets dropped 29%. It was a wild roller coaster ride with ripping rallies and steep sell-offs, but all within a downward trend that lasted until the event concluded.”

Or it could be war. John Rubino says politics and geopolitics and war tend to follow major financial crisis.  If this plays out according to history the world could go crazy on every level imaginable.  We in America have basically, including the Cold War, been at war ever since 1914, and this isn’t expected to change anytime soon.  In fact, it could get much worse.

America has been on course to turn World War III into a nuclear exchange with named and unnamed enemies alike.  We presently have major geopolitical issues with China in the South China Sea.  Russia and the U.S. have been bombing each other’s proxy armies and advisors in Syria.  Israel is again fighting in the Gaza strip.  We’re still unsure of how the major powers will line up when the next round of major Arab / Israeli wars flare. 

Then you throw in all the blood incinerating new weapons including hypersonic missiles, drone submarines that can be equipped with nuclear weapons, and Terminator robots designed for the battlefield.  Bio warfare and chemical warfare are the most deadly they’ve ever been.  We have lasers, microwaves, and other types of directed energy weapons that fry humans alive but leave trees standing.

This can all play into our impending financial crash.  “Once they’re used there’s no way to predict what’s going to happen,” Rubino says.  “That’s another thing that’s completely terrifying from the point of view of an over-indebted, over-leveraged system.  See, when you borrow too much money you get very fragile.  And any old thing can destabilize you.”

So a new hot war could easily be the catalyst that sends us into a financial crisis like we’ve never seen before.  Or vice versa.  A financial crisis could cause a major outbreak of war.  These are the things that happen when you borrow too much money and can’t pay back your debts.  These are the issues President Trump’s tweets can cause.

SO WHAT DO WE HAVE TO BE THANKFUL FOR?

It is not all doom and gloom.  There is much to be grateful for this Holiday Season.  We have much to be thankful for.  Like what?

God.  A sound future financial system backed by precious metal.  Family.

We have truth to lead us to spiritual growth and gold, well chosen farmlands and rental properties to invest our hard-earned savings into.  Things they can’t make anymore of.  “Because that’s where capital will flow when the things that governments can make more of are inflated away,” John Rubino says.

As we look ahead there is a prosperous future for those who prepare for it correctly.  We wish all of you a happy and healthy Thanksgiving from everyone here at the Family Law and Wealth Preservation Mediation Center of Ventura, California.  We encourage you to fill up with not only nutritious food this Thanksgiving but plenty of healthy food for thought.  Read, research, and at all costs find as much spiritual, financial, and political truth as you can wrap your mind around.

Understand the direction the world is heading when it comes to potential financial prosperity.  John Rubino’s bottom line is that at some point the world financiers are going to have to acknowledge that the fiat currencies are going to be called into question.  “We can’t know the timing of this, but we can know what will do well when this happens, and that is gold and silver.”  Prepare intelligently.

Thank God for gold and silver.  Thank God as often as possible and pray for healing for American veterans and the elderly, and may you and your family have a safe, healthy, and prosperous Holiday Season.

THANK GOD FOR GOLD, PART ONE

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Why do we say, “Thank God”, when the world is on fire?  Do we really have anything to be thankful for this Thanksgiving?  And why is gold such an undervalued asset?

While we fight our way through numbness and Weimer hyperinflation posing as a 1930s depression I’m not dumbfounded to learn that debt continues to mount exponentially everywhere I look.  It’s in the tea leaves of global financial stress and it’s the bottom line of every paycheck we earn.  Everybody’s heading for bankruptcy, and nobody seems to have a really solid answer on how to avoid it.

No business or governmental entity appears to be immune.  Financial writer John Rubino says nothing demonstrates the “imminent bankruptcy” problem for cities, states, and countries that are swimming in unrepayable debt better than the financial obligations of New York City.

“They just announced that they have unfunded liabilities for retiree healthcare, just retiree healthcare and not the rest of their pensions, of $100 billion,” Rubino, founder of blog and news aggregation site dollarcollapse.com, says.  “That’s for a city, not a state or a country, and if you add their unfunded liabilities for their pensions, which is another $50 billion or so, and their official debt, which is $50 billion or so, you get $200 billion that New York City is on the hook for that they have not put money away for.”

Across our nation many cities are having major financial problems that run parallel to debt.  Unfunded liabilities for pension funds are a real liability.  Unfunded liabilities for retiree healthcare alone, not the rest of their pensions, can be astronomical, as the New York City example illustrates. 

We’re talking about a city filled with generations of unlimited healthcare for life for those who retire at age sixty, which is a really big expense.  Then you add in the pension fund unfunded liabilities, that cities and states are on the hook for, but have not put the money away for. 

So if you’re a fireman, cop or school teacher, and you worked ten years for New York City, you got health care coverage forever.  Baby Boomer cops, firefighters and teachers are retiring in greater numbers now and they’re going want to get the benefits of that healthcare coverage and retirement pension as cities’ finances fail into bankruptcy, so where’s it going to come from?

Major cities like New York and Chicago and Los Angeles are facing bankruptcy because of these unfunded liabilities, and who’s going to be the first one to blow and how will that affect your family and state?

The city of New York’s problems aren’t my city’s problems, exactly, yet, but they are the type of problem facing pretty much every major city and state tied to every country in the world that’s tied to the U.S. dollar.  Think Puerto Rico, Turkey, and Chicago, Illinois.  Who is going to pay their debt bond holders when their revenue streams dry up?  Who’s going to pay to haul the trash and clean city streets?  It can be difficult trying to be thankful in a world that seems to be at war with everyone while we all go bankrupt.

WHO WILL BE THE FIRST DOMINO TO FALL IN THE PUBLIC PENSION CRISIS?

A hundred other states and cities are in the same position, says John Rubino to Greg Hunter on usawatchdog.com.  When one goes they all go.  At some point, the whole thing blows up.  We’re talking about our financial system here, and it’s all interrelated through debt.

Unfunded liabilities in many cities and states are greater than the amount of official debt.  They are real obligations.    

Financial stresses are cyclical, Rubino says, and the question for New York is will they be able to raise the revenue needed to continue to keep the city going and to pay off their bonds?  Running a city or government is expensive.  Where will NewYork – Chicago, LA, Illinois, Turkey, Puerto Rico or the US – continue to get their revenue from to pay their growing debt?  New York has Wall Street, and New York does well when there’s a bull market and everyone’s making money and paying taxes.  But what happens when there’s a bear market? Where then do they raise the capital to pay their bills? 

Ongoing expenses can eat up a tax revenue quickly, and then you throw in massive public sector obligations like pensions and healthcare that will break the bank for these municipalities.

 States and cities must have the money to take out the trash and keep the water running which can pose tremendous conflict when it comes time to pay their bond holders.  If they don’t they will be closed out of debt markets forever.  Forced to live within their means.  Make cuts, or raise taxes.  Taxes go up, services diminish, and everyone leaves.  The tax base moves out, which is what we see here in the Golden State.  Think San Francisco.

In California our problem is that we rely on Silicon Valley and tech IPO capital gains and when that goes away during a bear market our tax revenues plunge too, Rubino says.  What happens when the cash flow simply isn’t there for us anymore?  Do we all have to move to Reno?  If we get to the point of where nobody can pay their debts and the bondholders get stiffed, then what?

The government comes and bails everybody out, right.  When major companies like GE or a state or locality goes bankrupt the government usually steps in and assumes the bankrupt balance sheet of that company, municipality or state.  This has been the American way of doing business for many decades.  The taxpayers take on the burden, having assumed all of the risk, and our national debt expands.

WHAT IF NO ONE BAILS THEM OUT THIS TIME?

We don’t have to bail out failing cities or corporations.  We can allow them to go belly up and learn their lessons.  That’s how it goes with capitalism.  There’s room for failure.  It’s called bankruptcy. 

Of course even if the federal government doesn’t bail them out the Federal Reserve could step in with loan guarantees or some other kind of tools to bail out bankrupt entities, Rubino says.

President Trump can help teach a lesson to those who control the financial system, but will he?  Or are the numbers too great and will the threat to destabilize the entire system be too scary to most?  Everyone wants to know who will be the next Lehman Brothers.  Will it be Chicago?  Goldman Sachs?  Apple?  PG&E?  New York City?

Due to all the debt America has taken on we’re going to see a collapse in the U.S. dollar, the financial writer tells Greg Hunter.  That much is clear.  There’s too much pressure on the system.  That pressure has to be released somehow.  It could be released through the deflationary path, where we let them go bankrupt.  Or we could bail them out.

But is that a legitimate solution to our financial issues at this time?  Rubino says that it only masks the problem.  “If you bail out all that debt, you shift the pressure over to the currency markets,” Rubino says.  “In other words, we’re creating trillions and trillions of new dollars, dumping them in the system propping up the bond market.  And then people realize the currency itself is in oversupply.”

That’s when people convert their currencies into hard assets like farmland, rental properties, or gold and silver.  The currency has collapsed and smart investors want value.

But the economic model is still going to have to be replaced.  The present system is destroyed beyond repair.  That’s why Russia, China and other Asian countries are bailing on the U.S. dollar and buying up all the gold.

“You reinstitute some kind of sound money,” Rubino says.  “So that is the most likely way out of this for us.  This is what happens when people understand fiat currencies and that giving government an unlimited printing press is a bad idea and we have to rectify that.”

How we rectify that will be discussed in part two of Thank God for gold.

TAX CUTS AND JOBS ACT (TCJA) OF 2017 COMPLICATES POTENTIAL SETTLEMENT OF DIVORCE CASES

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The Tax Cuts and Jobs Act of 2017 (TCJA) enacted dramatic changes to several tax issues that directly impact how divorces are settled. If you are a high wage earner, or you’re married to one and you’re contemplating getting a divorce, there’s almost a sense of urgency toward you understanding the financial aspects of your divorce and when to file your marital settlement agreement, should you and your spouse reach one.

Heather L. Locus, an owner and wealth manager at Balasa Dinverno Foltz LLC in Chicago, defines on her Website why this could be important to you. “Many high-net-worth couples may want to move quickly in order to preserve some important financial options,” Locus writes. “Couples who finalize their divorce agreements this year have many more options since the most significant rules impacting divorce go into effect on New Year’s Day 2019.”

In a previous blog we dissected how the Tax Cuts and Jobs Act of 2017 dramatically affects spousal support payments. After January 1st, 2019, all payments between former spouses in executed divorce agreements will be treated in much the same way as shared income was during their marriage. In other words, spousal support and unallocated support payments of any kind will no longer be tax deductible by the payor spouse nor will they be taxable to the recipient spouse. It is similar to how child support payments have always been dealt with in family law. No deductions permitted.

An article written for familylawyermagazine.com entitled, New Tax Law Helps & Hurts High-Net-Worth Divorce Cases, Locus, CPA, CFP, CDFA, reminds us that there are other changes to the new tax laws and how they will impact the way divorces are settled, and they should be kept in mind when negotiating a divorce settlement. They are:

  • The Personal Exemption. It was reduced to $0 for all taxpayers this year but may return to a $4,000 exemption in 2026 unless laws change again.
  • State and Local Taxes. Deductions for state income and property taxes above $10,000 combined are gone. However, this results in fewer taxpayers being subject to the AMT.
  • Moving Expenses. Unless one of the divorcing spouses is a member of the Armed Forces, expenses incurred separating one marital household into two are no longer deductible.
  • Legal and Professional Service Fees. Tax preparation, investment advisory fees, and your legal fees incurred for tax planning and to obtain taxable alimony are also gone. Some other changes — such as the raising of estate values subject to inheritance taxes — may indirectly impact high-net worth divorce negotiations as the need for advance estate planning vehicles such as Life Insurance Trusts and Grantor Retained Annuity Trusts (GRATs) are reduced.

PERSONAL EXEMPTIONS HAVE BEEN ELIMINATED

As Locus stated above, the new tax laws eliminate personal exemptions for the tax years beginning after December 31, 2017, and ending December 31, 2025. During this eight-year period, divorcing parents will not be able to utilize the personal exemption for dependent children, which means there will be no more negotiating which parent will be eligible to take it.

Before this year, tax filers received a deduction from income for their personal exemptions, including themselves, their spouse, and their children. In divorce and separation agreements it was common for parents with children to negotiate who could use the personal exemption deduction for income and in which year, but not anymore.

CHILD TAX CREDIT INCREASES

Even with the changes in the tax laws divorcing parents will still be able to negotiate which parent will be allowed to claim the “Child Tax Credit”, and which parent will not. Similar to negotiating for personal exemptions, someone involved in a divorce would want to negotiate which spouse gets to claim the “Child Tax Credit”. An income deduction merely reduces taxable income. A “Child Tax Credit” provides a dollar-for-dollar reduction of tax owed. It is an important negotiating tool, and the TCJA doubles the “Child Tax Credit” from $1,000 to $2,000 for children under the age of 17.

Possibly of more importance, $1,400 of the $2,000 credit is refundable to the filing spouse, whereas in prior years the “Child Tax Credit” was not refundable. The “Child Tax Credit” might now be more useful than ever in divorce settlement negotiations because it immediately reduces taxes owed and it is partially refundable.

FAMILY RESIDENCE BECOMES MORE EXPENSIVE

The new limits on deductions imposed by the Tax Cuts and Jobs Act of 2017 will make the prospects of being able to afford to keep the family residence a more challenging proposition. If you took out a home mortgage to acquire your home after December 15, 2017, the TCJA now requires mortgage interest deduction to only be available for interest paid on up to $750,000 of debt on first and second homes combined. However, if your loans for first and second homes combined was created prior to December 15, 2017, you are grandfathered in. This means you have a $1 million limit for interest deductions.

The 2017 tax laws also affect how divorcing spouses will deduct their home mortgage interest payments. According to the IRS the new law suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.

This means the deduction for home equity indebtedness has been repealed, unless the home equity indebtedness qualifies as “acquisition indebtedness” — ie. it was used to acquire, build, or improve a primary or secondary residence. As written, the repeal of the home equity interest deduction does not have a grandfather provision. This means all equity loan interest, regardless of when the loan was originated, will no longer be deductible if the proceeds of the equity line were not used to buy, build, or improve the primary or secondary residence.

THE WINDOW IS CLOSING

Due to the many changes in the tax laws suffused with much confusion that surrounds the new rules, your ability as a divorcing spouse to tailor your divorce agreements to suit your particular financial needs will disappear in 2019. That’s why you might want to seek guidance from a family law specialist now. Please be warned that many otherwise competent divorce lawyers are not up to speed on many of the new tax changes. So don’t assume that just any family law attorney is capable of guiding you to the best tax results in your divorce. Contact a specialist in family law who is up to date on the latest tax changes that might affect you.

 

 

WILL GOD’S AGENDA STIFLE DIVORCE AND REMARRIAGE IN CALIFORNIA?

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Ah, us liberal Californians, you got to love us or leave us, but we’re going to look good either way. That’s because we work hard at it. It takes time and ambition to soak up sun like George Hamilton and remove lines in our faces like Jane Fonda. We like buttocks surgeries because they make us look like Ms. Bumbum and vegan diets because they make us look thin in our mirror’s reflection. Some of us spend lifetimes and fortunes never succeeding but always finding better ways to look even better in our quest to entice the other side.

California lifestyles say “rich” while we work endless hours to make the kind of money it takes to attract a like inclined individual from the opposite sex. This is how it was taught back in the 70s and it’s how it’s still being played out by many today. Once we set our magnet tentacles into this new person of interest, we can then work on what we’ve spent a lifetime being programmed into dreaming about — tying the proverbial knot with a White Knight and living happily ever after.

We see it happen all the time on the Disney Channel. It’s embedded into the romantic subplot of inane stories designed to program underdeveloped minds. Of course eventually, after we’ve grown up and had our own kids and family dissension has set in and everyone’s kind of gone off in different directions; when the lightening juice of love and lust of overrun hearts that got us together in the first place has simply dried up, stark reality can be very painful. That’s when we put the alcohol and pain medications down and get on our PC or mobile phone device and hire the best divorce lawyer our money can buy. We pay her handsomely to undue “it” at all cost. For many, divorce is by far the easiest segment of the cost of doing life here on the Gold Coast.

HAVE THE WINDS OF DIVORCE SHIFTED IN CALIFORNIA?

The skies have changed in California and it has nothing to do with the smell of sun tan lotion and chemtrails. There was a Red Tsunami of Evangelical Christian proportion that has swept through our state along with the 2018 Midterms, overturning tiny little blue umbrellas and flooding castles made of champagne sand. Liberals have been diagnosed with spinning heads and PTSD. With this overtaking of Biblical proportion comes an attempted reform of values centered around Christian Doctrine, of which many Californians generally aren’t really that familiar.

Thus it seems like a good idea for all married Californians – or non married Californians who are thinking about getting married – and all divorce attorneys to understand the divorce game is undoubtedly about to change forever. No matter how we look at it Jesus and Church inspired voters are back in town and there’s no reason to believe they’ll be leaving anytime soon. Thus they promise to spread tremendous influence affecting all aspects of our lives.

THE EVANGELICALS HAVE SET UP SHOP

The New York Times talked about how the Evangelicals have set up shop in and are fighting to retake California. That’s a fact. They say they’re tired of being stepped on and they’re aiming straight for our hearts.

Try to imagine Jesus espousing conservative political undertones, while bringing back his messages to a state with vast evangelical pockets of population. This equated to many Christians recently running for city council seats, mayorships, and every level of government to help effect change in California. Change is happening whether we voted for it or not.

The mission is pretty simple. It’s about faith and Jesus with a parallel message of conservative cause. The conservative approach opposes hot button issues like same sex marriage and abortion. It supports conversion therapy which is intended to change a person’s sexual orientation or gender identity. In 2012, California passed a law restricting the practice on minors.

How does that bode for other conservative values supported by the Evangelical Christians, and the Catholic Church, that intersect with contradicting liberal values practiced by many longtime Californians? We know those who support abortion and same-sex marriage are willing to march into the streets and protest in support of their beliefs. We also know what Jesus and the Church have always taught about divorce and remarriage, and that makes for great conflict for many who like to divorce and remarry quickly in California.

The teachings expressed by Jesus, the Church, and Evangelical Christians similarly offend many core liberals. Jesus is about sanctity of matrimony. Many Californians are about looking tanned, making money, divorcing and moving on to new relationships, and not necessarily in that order. Something is going to have to give eventually here and no matter what it is we are going to witness change, on many levels, marriage and divorce being a major one.

JESUS, THE CHURCH, DIVORCE AND REMARRIAGE

It is taught that Jesus elevated the act of matrimony to the status of a sacrament. This means a valid marriage between two baptized people is considered a sacramental marriage that cannot be dissolved, writes Fr. Richard Heilman at romancatholicman.com. Divorce is out of the question if you belong to the Catholic Church.

In an article entitled, What Jesus And The Church Have Always Taught About Divorce & Remarriage, Fr. Heilman writes that if “anyone so married attempts to divorce and remarry, he enters a state of perpetual adultery which is a mortal sin.” This of course can lead to many family problems for Catholics. But how many mortal sinners would those rules make out of us ordinary citizens who live and marry in California? Do we really have to be a church member to be a mortal sinner? Could these rules some day apply beyond the Church into everyday life? And does the rule apply equally to men and women?

Jesus appears to speak on behalf of men when he said: “Everyone who divorces his wife and marries another commits adultery, and he who marries a woman divorced from her husband commits adultery” (Luke 16:18, cf. Mark 10:11-12). That’s a lot of adultery for men to watch out for, transgenders need not apply. This is about a “man” and “woman” who have commingled their lives through holy sacrament. Through the Church’s eyes they are bound for life.

According to God’s law once we make the sacrament of marriage we are bound to it for the life of either party. Paul seems to have spoken for women on the issue when he said: “Thus a married woman is bound by law to her husband as long as he lives … Accordingly, she will be called an adulteress if she lives with another man while her husband is alive” (Rom. 7:2-3).

“Adulteress” is a situation for the Church to be handled from within the institutional framework. It has been through the turn of many centuries and cultures. This does not apply to California divorce courts or “man’s” laws. Fr. Heilman notes that these strictures only apply to sacramental marriages – those between baptized people. For marriages involving an unbaptized party, a different rule applies (1 Cor. 7:12-15).

Although various cultures have allowed for divorce legally Jesus and the Church have always been consistent with their message. The Greco-Roman culture, for instance, allowed for easy divorce and remarriage although Church Fathers proclaimed Christ’s teaching on the indissolubility of marriage. This is the same thing the Catholic Church has done today in our over-the-counter divorce culture (cf. Catechism of the Catholic Church 1614-1615), Fr. Heilman writes. Many churches have modified their teachings to accommodate the pro-divorce ethos that dominates modern culture, but the Catholic Church remains consistent in teaching what Jesus taught.

Under marriage today a baptized couple can “remarry” after divorce only if the Church finds that a valid sacramental marriage never existed in the first place (a decree of nullity; see CCC 1629), Fr. Heilman writes. The “remarriage” is actually their first marriage. If, however, the parties were genuinely and sacramentally married, they may in some cases live apart and even obtain a legal separation, but they are not free to remarry (CCC 1649). A divorce is simply out of the question.

AN ACT OF GOD

This is “not a command of men”, but one that “comes directly from Jesus Christ”, Father Heilman writes. As Paul said: “To the married I give charge, not I but the Lord, that the wife should not separate from her husband (but if she does, let her remain single or else be reconciled to her husband) – and that the husband should not divorce his wife” (1 Cor. 7:10-15). This is an important issue that many Californians will be looking at under an entirely different light than they have in the past. Times have changed. “American culture” is transforming back to American culture. After all, we were once a nation created under God.

Divorce will never again be looked at with the same liberal attitude we in America have displayed since the 1960s “cultural revolution”. Things have changed since then and that continued transformation just might begin to accelerate for the good of us all.

 

 

2018 MIDTERMS: CIA DEMOCRATS VERSUS GOD’S AGENDA. WHO YOU VOTING FOR? PART 2

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As if the 2018 Midterm Elections aren’t complicated enough consider this factor: The Central Intelligence Agency is in league with the Democrat Party to take control of the United States House of Representatives. At least that’s how economist, columnist and former Reagan Administration Treasury Assistant for Economic Policy Paul Craig Roberts, who was recently banned by Twitter for expressing the wrong opinion publicly, frames it in a guest contribution piece he posted at paulcraigroberts.org entitled, “The CIA in league with the Democratic Party is Moving to Take Control of the House of Representatives.”

This is a very serious issue facing Americans who believe in something called “Freedom”. We do need to come to terms with those with whom we are truly dealing, once we identify who they are.

“An extraordinary number of former intelligence and military operatives from the CIA, Pentagon, National Security Council and State Department are seeking nomination as Democratic candidate for Congress in the 2018 midterm elections. The potential influx of military-intelligence personnel into the legislature has no precedent in U.S. political history,” writes Patrick Martin in the original article posted by Roberts called, “The CIA Democrats: Part one.

Writing for something called the World Socialist Web Site Martin notes the Democrats have gone the way of the military intelligence candidate. If the Democrats capture a majority in the House of Representatives on November 6 candidates drawn from the military-intelligence apparatus will comprise up to half of the new Democratic members of Congress. They will hold the balance of power in the Congressional lower chamber.

Democratic party leaders are known to have actively recruited candidates with a military or intelligence background for competitive seats where there is the best chance of ousting an incumbent Republican or filling a vacancy, frequently clearing the field for a favored “star” recruit, Martin writes. “The Democratic leaders are promoting CIA agents and Iraq and Afghanistan war veterans,” he writes. There are far more former spies and soldiers seeking the nomination of the Democratic Party than of the Republican Party.

The military-intelligence candidates are disproportionately favored by the party apparatus, encouraged to run in districts that are the most likely takeover targets. Military-intelligence candidates account for 10 of the 22 districts selected for the most high-profile attention as part of the “red-to-blue” program, or nearly half, Martin writes. In some cases, military-intelligence candidates have amassed huge campaign war chests that effectively shut out any potential rivals, an indication that the financial backers of the Democratic Party have lined up behind them.

WHAT WOULD A CIA INDUCED DEMOCRAT VICTORY IN 2018 MIDTERMS LOOK LIKE?

Democrat and House minority leader Nancy Pelosi is described as already “plotting her return to the speakership,” laying out an agenda for “when – if – she wins,” Breitbart News reports. The former speaker of the house promises to introduce a package for campaign finance reform as the first bill of the 116th Congress.

Should the Democrats take the 2018 election Pelosi’s next priorities as speaker, she told Politico, would include new gun control laws and amnesty for illegal aliens. “After that, Democrats are looking at lowering drug prices and then will try to work with Republicans on a gun background check bill and protecting so-called Dreamers, undocumented immigrants who were brought to the U.S. as children,” Pelosi told Politico.

If the Democrats win the House we can expect more gun control measures, open border policy, amnesty and sanctuary cities. The Politico article does not mention impeachment, but other Democrats have, so we can expect that too.

A Democrat victory in the 2018 Midterms promises an attack to impeach President Trump while others like Rep. Jerrold Nadler (D-NY), who will likely head the House Judiciary Committee if Democrats take over, will continue investigating United States Supreme Court Justice Brett Kavanaugh.

If November’s elections put the chairman’s gavel in Nadler’s hand he expects the House Judiciary Committee to immediately subpoena records from the White House and the F.B.I. and try to interview Justice Kavanaugh’s accusers and the dozens of potential witnesses they identified.

BUT WHAT IF GOD WINS THE 2018 MIDTERMS?

All the Democrats have planned for this 2018 election is to gang up with the mainstream media to terminate Trump’s agenda. They have no other platform.

If “God’s Agenda” were to actually affect the 2018 Midterms what might that look like for the average homeless layman on the American street? According to the President of the United States it would begin with more tax cuts. “We are looking at putting in a very major tax cut for middle-income people. And if we do that it’ll be sometime just prior to November … “, POTUS is quoted on Twitter as saying.

Fortune.com cites the president as floating the idea of a 10% middle income tax cut. Critics argue that might be a better idea if there were actually a middle class left in America to tax.

President Trump has also told us that we can expect this election to be about law and order which means he will continue his quest to drain the Washington D.C. swamp. There have also been less than subtle indications that Trump could maneuver to break up corrupt monopolistic institutions like big media, the Silicon Valley, and big pharma.

And what about the national debt that is almost $22 trillion strong and growing, exponentially? We can only imagine how steep the debt will climb after America’s next qualitative easing binge which we are quickly approaching. How much more debt will we then be printing up just to keep our central banks afloat?

President Trump was brought aboard the revolution by American patriots and U.S. military leaders so he could deal with a country in bankruptcy and at never ending war. With tremendous backing he is using a multi-prong attack on our economy by bringing back to the U.S. manufacturing, employment, and tax cuts for the average citizen. He is instilling strength into what would otherwise be a truly bankrupt domestic economy. That’s why we will continue to see heavy finger pointing at the Fed by our presidential Tweeter.

President Trump holds the Federal Reserve Bank directly responsible for our country’s financial problems. He’s been heavily critical of the Fed for raising rates and acting way too independent for any of our good. The central bank operation acts on behalf of central bankers only. There’s no consideration given to us the people of America or the world or the economic realities we face every day. That’s why Trump blames the Federal Reserve for badly damaging the American real estate and automobile markets by pricing out consumer loans.

So what is going to happen to America’s debt problem with the Fed after the election? One option is to default on it. Completely erase the debt like Trump is said to have done with Puerto Rico. But that would wipe out central banking as we know it here in the U.S. and that’s probably not going happen if Democrats win the House and impeach Trump.

So does prosperity ever come into play for our families in all of this? Do we have to drain the swamp in the financial system too just so our children will have a future to live for? And does that mean getting rid of the Federal Reserve might be a good idea?

American politician and former businessman David Stockman believes it does. “There is no need for central bankers at all when it comes to economic growth, jobs, incomes and prosperity,” Stockman writes via contra corner blog.

If there’s no need for the Federal Reserve Bank then what will American families need to do to succeed financially? “Work, effort, production and enterprise are what create both current income and future growth,” Stockman writes. “Demand flows from supply and spending flows from income; capitalism doesn’t need any U-3 obsessed central bankers to make it all happen.”

Simple economics of which President Trump seems well aware. We need to bring U.S. dollars and manufacturing back home, with jobs to run them, of which we are beginning to see the results.

Which is probably why the Chicago Tribune recently called the United States the most competitive economy on the planet. We are beginning to witness prosperity and the mainstream media is reluctantly telling us about it. Maybe that’s how God planned it the whole time.

Like the New York Times declaring in a major headline: “Competitiveness Rank Of No. 1 Makes It Official – U.S. Economy Is Great Again”. God is talking through Trump to the people of the world and the mass media is starting to take notice.

Did you see the World Economic Forum just named President Trump’s America as having the best economy in the world. That’s our America too. Yours and mine. And maybe we will be great again some day. The Midterm Elections are going to play a big part in that. Especially if there’s a “Red Tsunami” that’s all part of “God’s Agenda.”

 

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