What Will You Do When Financial Chaos Happens?

Each Wednesday I publish one of my previous columns that I hope will be interesting, informative, instructive if not inspiring. This column was published in 2006.

DUMPies are Destitute Unprepared Mature People who had “confidence in the system” and who were “sure everything will work out all right.” However, their faith was in the wrong place.

My view of the immediate future is one of gloom but long-term it is glory! However, we must live in the here and now, and Christians would be wise to plan for “hard times” because hard times are coming.

The financial experts (those talking heads who never told people to sell before the dot.com crash and the present popping of the real estate bubble) always put a positive spin on every negative problem. It is always a “buying opportunity.” However, when you look at the unemployment figures, plunging real estate values, consumer spending, manufacturing, savings, bankruptcies (personal and corporate), credit-card debt and loan defaults, it is obvious that the nation’s economy is in deep trouble.

Those of us not trained in economics can understand a simple fact: when falling income and rising debt converge on the same family or business, the result is financial disaster. We are at that juncture today, even a Harvard professor knows we are in a recession and speeding swiftly into a major depression! Yet the wise guys on Wall Street and media pundits tell us “we are in recovery.”

However, remember that not one famous Wall Street oracle told us to SELL before the market started sliding. No, it is always a “buying opportunity.” You see they are called “brokers” because if you deal with them very much you will be broke! Do you know that none of the Wall Street hot shots or television pundits told us to sell Enron even as close as a couple of weeks before it sank! As the ship was going down, it was time to buy more shares of the Titanic!

I expect many large corporations, banks, S & Ls, and insurance companies to go belly up. If one has money, he should diversify. In fact, rather than have savings or CDs in banks, I would have some in Swiss annuities.

Swiss insurance and annuities are 100% funded by a currency not backed by gold but “as if it were.” There is no reporting to the IRS or any other agency and no taxes are paid until one receives payments, usually when one is much older and is required to pay less taxes. These financial instruments are easily purchased (at the present time) from US representatives—at no commission although Swiss companies may not solicit business in the U.S. One may buy directly from Swiss companies or use a U.S. rep. The interest on Swiss annuities is higher than what U.S. companies are paying.

My point is to do what the very wealthy have done for 300 years: send some of your money where it is safe. Often the very wealthy are greedy but they aren’t stupid. They send their wealth outside the states before the blood flows in the street—Wall Street, that is.

Our problems are not exclusively American. Japan had been sinking into recession for many years after many of their high dollar U.S. investments went south a few years ago. You may remember that Japan walked away from their investment in Rockefeller Plaza. Recently, Japan’s large banks have improved their financial standing.

Japan is the lender to the world—the source of 60% of the world’s loans. Where will the money come from when Japan dries up like an old Jersey cow?

The party is over in South Africa and disagreement, disdain, and distrust rule the day. The silver lining is gone and a dark cloud hangs over the nation in which liberals had put much hope. Mandela promised homes and jobs and was not able to produce, and the natives are restless on the reservations. It is a nation of malcontents, and any small spark could set off a powder keg that would reverberate around the globe.

Mexico has problems in at least 14 states besides Chiapas. Two political assassinations and about 200 extortion kidnappings have not helped stabilize the nation where the peso was devalued in 1994. The U.S. bailout was too little too late. I expect massive bankruptcies, social unrest, assassinations, political corruption and general turmoil. Moreover, it is folly to think it will not cross the Rio Grande. Everything else has!

Putin may lose control of Russia and a new “strong man” may appear who will try to reconstruct some of their losses after Communism’s collapse. I see many more problems between Russia and former members of the Soviet Union. Many of the “republics” have “former” Communists in the driver’s seat, and they can’t drive since they always turn left! In addition, the Russian mafia is almost running the nation. It is sure running many of the banks. Bribery, political corruption and intimidation are widespread. Not only could the economy collapse, but also anarchy could be their future.

Of course, there are massive problems in France, England, Germany, etc. The dark cloud covers most of the world indicating a storm is coming. Make reasonable preparations, and lash yourself to the Mast. Finally, be of good cheer for the Son is above the storm!

I am suggesting that the party is over. Difficult days are ahead for all of us. It is time to save, cut back, make do, do without, plant a garden, fill a large pantry with food and water, and buy some gold and silver. Abraham did!

EVOLUTION

Fact, Fraud or Faith?

by Don Boys, Ph.D.

Only an uninformed fanatic says that evolution or creation can be proved scientifically. Christians believe in creationism because we believe in the veracity of the Bible but we also have scientific evidence to support our position. In every debate I’ve had with evolutionary scientists, the arrogant, asinine accusation is made, “Well, evolution is scientific while creationism is religion.” Evolution is about as scientific as a voodoo rooster plucking ceremony in Haiti. Almost.

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