THANK GOD FOR GOLD, PART ONE

Leave a comment

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.

Advertisements

VICTORY FOR THE RIGHTEOUS IS JUDGMENT FOR THE WICKED

2 Comments

According to a prophet, author, and former fireman, we’ve got a great future ahead of us here in America, and we’ve got to recognize it and work hard to make it happen for everyone. For twenty years Mark Taylor was a first responder in Orlando, Florida, where he witnessed up close and personal all the horrors a fireman could ever imagine. Then his world took a giant leap into the unfathomable when he authored the popular book, “The Trump Prophecies”, where he told us Donald Trump would win the White House along with the first GOP primary. Trump became President and Mark Taylor instantly became part myth and a part of our modern historical narrative.

In an interview with Greg Hunter at USAwatchdog.com, the former firefighter said that he gets all his information and prophecies from God the Father. This allows Taylor to champion causes like for firefighters everywhere, of whom he says PTSD, anxiety, and depression run deep. He says their suicide rate rivals that of military and law enforcement personnel.

And if you’ve been reading the news lately, you know that many top Obama government officials were involved in framing Donald Trump in an effort to remove him from office, while exonerating Hillary Clinton of serious crimes. Taylor predicts Obama is going to end up in prison for treason as a result thereof. There are many in this country who might agree. Taylor also says Hillary Clinton, Eric Holder, and Loretta Lynch, among many others, are going to jail.

Taylor warns us that these people are not going to go quietly, however, and civil unrest is going to ensue. We’ve already seen examples of this taking place in one form or another practically everyday in our depressing mainstream media. We need to be praying against and prepare for the civil unrest, Mark Taylor says. We need to protect our loved ones and our communities.

TRUMP PROPHECIES TURNED INTO A MOVIE

The Trump Prophecies has been turned into a movie. It will be released for two dates only, October 2nd and 4th. The former firefighter turned author calls this a positive movie with a positive outcome. The positive outcome is Trump becoming president. When asked, Taylor says Brad Pitt will not be playing him in the movie.

The former first responder is humbled that God chose him to be the one to deliver awesome messages like these. He is just a “vessel” or a “tool” through which God speaks, he says, and he takes no credit for any of it.

Mark Taylor hopes the movie, the book, and their prophetic words will open up the eyes and ears of people. He wants to bring people hope. “We live in a society that robs people of hope” the prophetic Taylor says, “and when you rob people of hope you rob them of the will to fight. But if you have hope, there is something to fight for.” We definitely have plenty to fight for.

FEAR NOT

In the past Mark Taylor has also predicted that the U.S. dollar would get stronger and the economy would improve, and by all indications he appears to be correct on both accounts. There’s still much work ahead for us but America seemingly is once again on the right economic track. We’ve had major tax cuts, there are regulation cuts, and people are pouring money back into America. The U.S. dollar is being repatriated. Trump is battling the international trade deficits and unconscionable foreign tariffs that have plagued our economy for years.

“We are living in some of the most dynamic times in the history of mankind right now,” Taylor says. “The Luciferian Reign is coming to an end. All the corruption is being exposed.”

The modern day prophet believes America is about to have her harvest. America has never had her harvest.

“America is going to receive its harvest, now,” says Mark Taylor. “Because there’s sowing time, there’s reaping time … America has got to have her harvest because America is going to be the hub from which the End Time spiritual assault will be launched. Like England was the hub from which the D Day assault was launched, America will be the hub by which the spiritual assault will be launched.”

And things are only going to get better for all of us, in time. “We’re going to have money, we’re going to have manpower,” Taylor says. “We’re going to have clothing, food … it’s going to be a time of prosperity for America. We’re going to reap 7-fold what has been stolen from America for decades from all these other countries.”

We are going to get what’s coming to us? We are going to see very prosperous times? Here in America? Pinch me when this dream is over. Prosperity in America for all of us would be something I’ve never seen in my lifetime.

There’s no reason to feel guilty about any of it either. Taylor says we as Americans are not being judged, it’s the system we live in. “The wicked are under judgment,” the author says. “Victory for the righteous is judgment on the wicked.”

Happy 4th of July America!!!