We’re continuing a series of economic updates which we started yesterday, today’s will focus on the possibility of an imminent stock market crash. Several economic indicators point towards a stock market crash. Things like extremely low volatility and a very high percentage of financial newsletter writer and mutual fund managers being bullish. Signs like these are usually seen right before a stock market crash.
We hope you enjoy the video. Note, if you receive this blog in a reader or email, we’ve noticed some don’t send the video, so you might need to click the title to come watch it on the website. Also, we highly recommend that you watch the Coming Storm video if you have not already to understand the full context of the very difficult economic season ahead of us so that you can prepare. You can do that by signing up here.
It’s been a while since our last Economic Update Video and today’s will focus on bank failures. I’ve been sick (or had allergies) for a couple weeks and so we have alot of economic news to cover because there’s been a tremendous amount going on in the world. We’ll be showing several videos in a row to capture each of the main economic areas that have seen change.
Today we’ll look at what information can be gleaned by recent bank failures. Karl Denninger did a study on these recent bank failures and from them we can see that banks across the country are not nearly as healthy as they seem. We hope you enjoy it.
"Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?"
Here are some scripture we felt were strongly relevant to this topic, the Kingdom of God. We put them here for your reflection.
“Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? 26Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27Who of you by worrying can add a single hour to his life?
28″And why do you worry about clothes? See how the lilies of the field grow. They do not labor or spin. 29Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you, O you of little faith? 31So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32For the pagans run after all these things, and your heavenly Father knows that you need them. 33But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.” (Matthew 6:25-34) [click to continue…]
Have other countries already started to figure out that buying our debt is a pyramid scheme?
We’ve been discussing inflation and deflation and today we’ll dig more into hyperinflation. If the world has figured out that buying our debt is a pyramid scheme and that they will be left holding nothing, they will no longer finance our massive deficit each year. This could happen in the blink of an eye and come like a thief in the night!
The best thing for the government to do in this scenario would be to allow rates to rise, slash spending and get the budget under control so that the world can once again trust us. But this would surely lead to more difficult economic times and what group of politicians is going to head in that direction? None.
So what they will do is print more money to buy the debt that they have decided we need to float the borrowing we need to do. If you’re thinking that this will just cause hyperinflation to spin out of control, you are correct! [click to continue…]
How can Inflation be worse than Deflation? We described deflation Friday which you can read here, and that seems pretty awful! What’s worse? Hyperinflation! Let’s look at what inflation is, how it can affect you, its two causes, and what can push inflation into hyperinflation.
The usual reason for inflation is an increase in the money supply. It’s very simple. There would be no inflation if the government would not continue to print new money.
However, most people have felt that a small amount of inflation greases the wheels of the system and keep things running smoothly. After more than a century of no inflation, the US government started increasing the money supply beyond the gold and silver that we had to back our currency and inflation was born. For most of that time it has been a slow steady erosion of your wealth that the government has perpetrated. Your money is worth a little less every year, but they tell you it is for your own good. [click to continue…]
Deflation or Inflation? We mentioned we’re holding an event on Tuesday to prepare you for either. Let’s begin with Deflation. What is a deflationary depression? What does it feel like? How will it affect you? Unless you’re around 90, you and I have never suffered through really difficult times. But our country has seen a deflationary depression before. We call it…the Great Depression. You’re much more likely to be old enough to remember significant inflation. So let’s talk about just what could happen because the more you understand what’s ahead, the better you can prepare! [click to continue…]
We said in the Coming Storm presentation that a new season was upon us and we talked about the fact that Jesus told us to be aware of the signs of the times. We said that the changes that were coming were not just financial and economical, but that these signs would be of every kind.
Since then we’ve seen an incredibly devastating earthquake in Haiti. If you think that Haitians have been idolatrous and that God is cleaning this up, you are correct. The next question is, have we been idolatrous and is God going to do some cleaning up? We’ve seen severe rain on the west coast and the most snow our nation has ever seen, but this is just the beginning.
None of this is without purpose. God has not forgotten His plan! He will bring it to pass. It is a glorious plan and the best part is reserved for those who love Him!
After we’ve discussed all these things, we want to leave you with a few questions to ponder and seek the Lord about. [click to continue…]
When Jesus came, He entered a highly religious society. This was not a time like the one where people half thought about God’s Law and spent most of their time visiting temples to other gods. This was a society who knew their theology better than anyone. They knew God’s ways better than He did!
They had certain expectations about who the Messiah was, How He would come, and what sort of changes He would bring. They expected a great prince who would come and bring an end to Roman rule and a mighty empire such as Rome’s which Jerusalem herself ruled. They had studied the scriptures and had now doubt about what they foretold!
But they missed it. All their learning, all their knowledge, was useless and even debilitating when the realities of God’s Chosen One came. They were blessed by God, so what bad could happen to them, right?
Jesus brought a hard message which was more than their flesh could bear. They would have to give up their prestigious positions. They would have to give up material wealth. They would have to give up their ideas of who God was, who they were in God’s eyes, and what kind of life they could have in God’s order. It was simply too much to bear for most of them. [click to continue…]
Next Event: “How to be a Steady Investor in Turbulent Times”
Tuesday, March 16th at 7:30pm (one week from today!)
700 E. 11th St, Austin, TX 78701
Sign up Here
Most economists today see us entering a protracted deflationary depression similar to the Great Depression. Others (including many of the most spectacularly successful investors of all time) see a very serious inflation (and perhaps Hyper-Inflation) on the horizon. Most of the talking head economists on the TV however assume that we’re in just another recession that will move into one more recovery as we’ve always seen before (in our lifetimes).
So which is the truth? What facts are there that would lead you to believe one over the other? And why does it matter to you? [click to continue…]
1) Let’s say that you live in a hot real estate market and values have been driving up. You’re considering buying one of three properties.
The first is a single family home in a market that has been appreciating faster than any other in town. Your idea is to buy it and hold it for a year so that you can sell at a much higher price after it has appreciated even more.
The second is a single family home that needs a lot of work, but you calculate that you could repair and renovate and then be able to sell it at a reasonable price to a new home buyer for substantially more than what you have put into the home at that point.
The third is a single family home that you realize you could buy and then rezone into a duplex and rent out each side for a handsome profit each month. [click to continue…]
Next Event: “How to be a Steady Investor in Turbulent Times” 
