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Moving Forward into 2011
publication date: Jan 4, 2011
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author/source: Brad Hamill
As we journey forward into 2011 I have taken some time away from writing, in
order to more fully reflect upon my economic ministry. I’ll be honest – I’ve
been frustrated.
We live in a world that demands all answers be delivered yesterday. The media assaults our senses with blazingly fast image transitions, loud sounds with a quickened beat, and “news” headlines that are condensed into two minute radio spots at the top of each hour. Why have I been so frustrated? Many people might think I’m a nut for saying this – but I have very little doubt that we’re heading into a major international war within about ten years. This will be a war caused by the international banking institutions fanning the existing political sparks and hot embers into a major conflagration. Why do I say this? It’s because history has shown us the signs, and the citizens of the developed nations are largely ignorant of them. Have you ever seen a painting that contained a solid background color with some geometric object painted in the foreground? It’s easy to describe to anyone who might have interest. The description fits quite easily into a short blog post. Readers can spend a few minutes of their hectic schedule perusing it and come away with a solid understanding of what was written. Now imagine a mural that shows a pictorial timeline of economic events dating back to the Middle Ages - and proceeding through to current times. This mural is intricate in detail and weaves a common thread that can be studied and understood. A description of this mural cannot fit in a blog post. Even a series of blog posts fail to do it justice, since continuity in thought is easily lost. Numbers don’t lie. My tracking numbers from newfamilyeconomics.com clearly show that my readers want current data, and they want to know how to best protect the possessions which they own. It is for this reason that I will be reverting back to a writing style which covers “headline” stories and market numbers – in order to present an interpretation that is not forthcoming from our established media and talk show hosts. I’m still not backing away from wanting to teach economic theory as it relates to history and present times. Because of this, I’m toying with the concept of writing a book on the subject. The tentative title would be: “Squeeze Play : The Coming Economic World War”. If the book idea proceeds along then I will need a group of people to read the various manuscripts and act as a sounding board during the project. If any of my readers are interested in this possibility then please let me know via return email: brad@newfamilyeconomics.com. I was recently encouraged by a Christian brother to stop beating around the bush and just state the facts as I understand them. I’ve previously been reluctant to do so, instead desiring to build a group of individuals where we could “chew” on all that is occurring on the economic front. So, without further adieu, here are the “facts” as I see them moving forward. 1) We are going to continue hearing about “improving” signs of economic conditions in the year ahead. This will occur even though people will continue to feel economically squeezed more and more as the months progress. 2) The nation’s overall money supply will continue to drop, as the international banks continue to freeze lending - and loan defaults, foreclosures, and bankruptcies continue unabated. Notice how I’m referring to the macro money supply – not just currency. 3) Our shrinking money supply will cause companies to continue employee reduction. We will also see reduced wages and benefits as businesses strive to stay afloat. Many companies will raise the prices of their products, or reduce package sizes, in a last-ditch effort to generate enough revenue. 4) The amount of currency (part of the shrinking money supply) circulating in our economy will increase marginally. Most of the newly created currency will instead be held in the excess reserve accounts of international banks – collecting interest. This increase of currency will bring about moderate price inflation, even though the overall money supply is in a deflationary downturn. This will serve to further squeeze the consumer and will send more into bankruptcy. 5) Housing prices will continue to fall, causing more people to go “upside-down” on their mortgage, owing more on the loan than the house can be sold for. 6) Commodities are building a major bubble. Watch for a very possible second crash, with gold, silver, oil, and equities taking steep downturns. This would cause the public to lose all hope, and turn to the various levels of government as their savior and redeemer. 7) Western Europe will see a continued trend towards “austerity” measures. This will contribute to feed anger and strife amongst nations, governments, and citizens. The pot will boil for a number of years as new “leaders” emerge to “rescue” their followers through international warfare – funded on all sides by the international banks. 8) The US Dollar will spike upwards – not downwards – as Western Europe continues to suffer hardship. Look for the Dollar Index to surpass 100 as Portugal, Spain, and Italy face their own bank-caused and bank-directed austerity hardships. 9) The US government will keep pursuing massive amounts of deficit spending – between $1.5 and $2 trillion dollars annually. The Republican Party will issue forth a lot of rhetoric in the House of Representatives, but any effort to balance the budget will result in a much faster public realization of the Greater Depression that we are currently in. Spending as fast as possible will be the name of the game. 10) The various US states and municipalities will continue to be decimated economically. Their only recourse will be to raise taxes and seek to issue more bonds that investors will not want to purchase. 11) Government pension funds will continue to deteriorate. At some point there will need to be an effort to seize 401K plans into an annuitized government-run program, much like Social Security. Government will then use these stolen funds to relieve some of the pressure of having to issue so many Treasury securities. 12) Look for the US government to create a “cap and trade” program – possibly being mandated through the Environmental Protection Agency (EPA) instead of Congress. Our government needs to create a new “green technology” industry to take the place of a manufacturing base that has moved overseas. Cap and Trade will force homeowners and businesses alike to achieve a particular standard of “green-ness”, or face large penalties and/or imprisonment at the point of a government sword. Companies will be able to trade their carbon credits on a new financial exchange operated by the international banks. 13) Watch for China to continue buying US and European securities. They have no choice. China is a factory nation that completely depends upon Western Europe and the US for its economic survival. 14) The international banks will continue strangling credit (money) for a certain period of time. History shows the average to be around ten years. During this time, the banks will amass the underlying assets of the defaulting loans. At some point they will decide that they have had their fill, and will institute an inflationary trend across the developed world. History shows that this has always occurred through warfare – since that is the quickest way for nations to regain productivity. Nations will borrow money for the war effort from the international banks – who will gladly loan to any and all sides of the fighting. Your comments and questions are welcome… or visit www.newfamilyeconomics.com If you are not currently on the Economic Update email list you can email me at: brad@newfamilyeconomics.com to be added. There is no charge and your email address will never be shared.  Christian Economics, Christian Finances, Christian Money, Christian Wealth, Christian Mortgage, Christian Mortgage Advice, Christian Mortgage Counsel, Christian Mortgage Consulting, Christian Investing, Biblical Economics, Biblical Finances, Biblical Money, Biblical Wealth, Biblical Mortgage, Biblical Mortgage Advice, Biblical Mortgage Counsel, Biblical Mortgage Consulting, Biblical Investing, Creating Wealth, Mortgages For Christians |
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