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President Obama's Nightmare U.S. Economy

Economics / Recession 2008 - 2010 Aug 16, 2010 - 01:44 AM GMT

By: Gerard_Jackson

Economics

Best Financial Markets Analysis ArticleSometimes it pays to keep flogging a dead horse. In this instance the horse is Obama's destructive economic policies. Before he was even elected I predicted that as president he would prove to a disaster. In December 2008 I warned that Americans would have to fasten their "seatbelts" and in July last year I alerted readers to the dangers of economic stagnation that his policies would produce.


Americans need to wake up to the fact that Obama is a profoundly ignorant man, a committed leftwing ideologue with absolutely no understanding of how economies work and no desire to find out. What Americans need to do right now is pray that he does not succeed in doing to their country what General Peron did to Argentina. Right now the signs are definitely not good.

Obama would not have been able to get away with any of his economic garbage if it had not been for the dominance of Keynesian thinking. It is this that gave him and his fellow leftists the cover and the excuse they needed to greatly expand government and let loose with a tidal wave of borrowing and spending. However, as I have said elsewhere, I do not believe it was ever Obama's intention to create a massive pool of unemployed. Even this economic illiterate and his fellow travellers know what a political albatross that would be.

He believed his Keynesian advisors when they told him that his spend-and-borrow program would halt unemployment at 8 per cent, after which it would fall. Convinced of this fact (after all, had it not been proved mathematically?) he concluded that the American people would assume that his program of massive interventionism had indeed been successful and that free market economics had failed them, leaving capitalism thoroughly discredited. Instead, it is Obama's presidency and his neo-socialist program that are in tatters.

The Obama presidency inadvertently exposed Keynesianism as a total fraud: a bundle of mercantilist fallacies dressed up in fancy new garb and decorated with meaningless equations, ancient errors and invalid concepts that has degenerated into a cult.

The previous criminally loose monetary policy had been largely rationalised by Keynesian thinking. The result was a boom followed by a bust. Rather than allow the malinvestments created by the monetary expansion to be wrung out of the system the Obama administration -- with the enthusiastic support of Ben 'Helicopter' Bernanke -- has kept these malinvestments on life support, much as the Japanese did with their malinvestments and with basically the same results.

So what we have is massive government support for an economically unsustainable pattern of production. What this means is that there are economic activities that can no longer justify their existence. When this happens Keynesians always refer to it as a case of demand deficiency. (There is no place in their scheme of things for the concept of disproportionalities.) Now it is true that under certain circumstance a monetary expansion can appear to resolve the situation.

What happens is that an expanding money supply raises the monetary demand for the products of these malinvestments and so makes them profitable again. We call this inflation. It continues until the central bank has to once again apply the monetary brakes, after which the cycle once again resumes, at least for the survivors. (The state of the housing market is an excellent example of how an unchecked credit expansion instigated by a central bank can create unsustainable pattern of economic activity.)

What went wrong? Bernanke engineered the most rapid increase in the monetary base in US history and still the economy did not move. Right now he is busy monetising Obama's disastrous borrowing program. You're just going to love this. Central banks bought agency bonds which they are now selling to the Fed in order to buy treasuries. Innocent enough on the surface. In fact, it is a case of outright fraud.

The Fed creates the money to buy the agency bonds: the sellers then use the money to buy government bonds. This is like Obama giving General Motors the authority to print dollars so that it can buy old bombs at outrageous prices in order that the sellers can buy GM volts. (From bombs to lemons, so to speak.) GM then uses the same dollars to pay its debts, suppliers and workforce.

Literally hundreds of billions of dollars have been created by this deceitful procedure -- and it is still continuing. The effect has been to keep bond prices higher then they would otherwise be thereby helping keep rates low. (Last Friday 10-year notes were trading at 2.68 per cent.) Nevertheless, this strategy cannot continue indefinitely. But what is really striking is its total failure to stimulate recovery, despite the expectations of Bernanke and the rest of the Keynesian cult.

No amount of borrowing can reduce the rate of unemployment. There is no way that taking money from Joe Sixpack to spend on a Democrat's favourite constituents can increase the demand for labour. All that happens is that purchasing power is transferred from one group to another, leaving total purchasing power unchanged. Monetary expansion is another matter, even when disguised as borrowing. And this is where we must look. Keynesians have forgotten the old the wisdom about horses and water. Professor Robertson was far from being alone at the time he pointed out that

while there is always some rate of money interest which will check an eager borrower, there may be no rate of money interest in excess of zero which will stimulate an unwilling one. (D. H. Robertson, Banking Policy and the Price Level, Augustus M. Kelley, 1989, p. 81, first published 1926).

It doesn't matter how low interest rates are, if there is too much political uncertainty about making profits then investment and spending will be severely curbed. Unfortunately the dismal expectations of business regarding Obama's policies are founded entirely on reality. There is no escaping the fact that the Democrats are about to strike the US economy with a blizzard of costly regulations and a barrage of high taxes. It is the prospect of this onslaught that is causing business to batten down the hatches.

And the moronic Axelrod still cannot figure out why non-farm payrolls fell 131,000 last month and payrolls had to be revised down by 97,000 for May and June.

By Gerard Jackson
BrookesNews.Com

Gerard Jackson is Brookes' economics editor.

Copyright © 2010 Gerard Jackson

Gerard Jackson Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Rick
16 Aug 10, 11:21
A Valid Solution As To What Ails America

None of the Washington politicians including President Obama has ever addressed the repatriation of the millions of good paying manufacturing jobs that were exported out of the country. When confronted by the media, those politicians will typically circle around the issue or just echo the usual 'canned' response: "Those jobs are never coming back". In that case, what then are we trying to accomplish with all of those out of control spending programs besides prolonging the inevitable and bankrupting the entire country in the process? A solid industrialized base is a vital component as to creating any true sustainable economy.


Shelby Moore
17 Aug 10, 02:17
Bring jobs back?

Rick wrote:

"bring the jobs back"

I am growing tired of explaining this over and over again.

How do you expect the get the jobs back? You will enact some decree or erect borders? Coase's theorem insures that you can't succeed, because nature always routes around any extra costs.

The only way to bring the jobs back, is let gold price rise so that the dollar lie is destroyed:

http://www.marketoracle.co.uk/Article20263.html

and thus the wages in the west will be drastically reduced and competitive with those in developing countries. This is of course going to happen and it is called hyper-inflation (aka devaluation).

If you try to avoid it by erecting artificial barriers which keep wages high, then the market will simply stop trading with your country, and then your country will implode because I can tell you that USA can not support its current inflated dollar illusion with internal production. You have to reset and start building from a very low level all over again, because of the decades of mis-allocation due to the westerners feasting on an orgy of debt:

http://www.marketoracle.co.uk/Article21650.html

The damage has already been done, it is way too late to stop the hyper-inflation and implosion of real wages. We are only trying to delay it, and that will just make it worse.

But you will never learn, so why do I bother telling you?


Rick
17 Aug 10, 12:19
Ronald Coase et al

The first thing that you should learn is that the whole concept of economics (as written in the text books) is false so you should never bear credence to economists. They can only be spreading falsehoods based on the fallacies contained in those books. John Maynard Keynes is a prime poster child in that regard.

Now, as you have said: "The damage has already been done". I wholeheartedly agree. Therefore, the point that I was trying to make is that we have absolutely nothing to lose then by slapping a hefty tax on multi-national corporate profits gained through the importation of their goods and services into this country. Another option would be to revisit the 1930 Smoot-Hawley Tarriff Act and impose across the board tarriffs on all goods and services entering this country. By implementing any or all of the above options, I can absolutely guarantee you that this country's manufacturing base will be restored; and this you will not find in any text book.


Shelby Moore
17 Aug 10, 13:49
Wrong

Rick sorry but you are flat out wrong, because taxes the multi-nationals is a tax on yourself, they simply pass the cost on to the consumer.

You really don't comprehend Coase's Theorem.

I agree the economists don't have a clue. In fact most of them don't understand or apply Coase's Theorem either.

There is only one way to fix this problem. Buy gold and silver continue to be as productive as you can. Mother nature is going to take care of it. We will go into a period of severe chaos and poverty, but we will come out of it. The more people that put their savings into honest weights and measures, the less chaotic it will be.

But it is really too late for the masses. They don't have any savings. And that is world war is very likely. Prepare.


Nadeem_Walayat
17 Aug 10, 14:33
Jobs

you can't get the jobs back but you can incentivise business to manufacture at home.

One way is to say all investment in 100% domestic manufacturing industry would attract zero tax on capital gains and profits for 10 years.

That would generate a lot of jobs. It would take time, many years but the manufacturing base would be rebuilt.


Shelby Moore
17 Aug 10, 14:36
Multinational corruption

Rick, one thing that would help and would go after the multi-national corruption, is if people would end the BLM and Dept of Interior, and auction off the lands to the private sector instead of letting the multi-national play with these lands at pennies on the dollar:

http://www.abovetopsecret.com/mustangconspiracy/part2-low.html

They are killing all the wild horses too.

That would be much more productive than taxing yourself by taxing the multi-nationals.

I feel the same anger you do, but taxing ourself or blaming the poor people in Asia is not going to work.

The most important thing we need to do is stop stealing from ourselfs and that means stop using fiat and savings accounts and interest rates:

http://www.marketoracle.co.uk/Article21650.html

Good luck brother.


Shelby Moore
17 Aug 10, 14:38
tax reduction

Nadeem yes tax reduction is a solution. Great point! You can outcompete for business by lowering taxes and starving the socialism of funding. But most people go the other way and want to tax themselves even more. People don't realize that any tax is harmful to themselves. There is no such thing as a good tax.


Rick
17 Aug 10, 15:33
Made In The USA

It would be foolhardy if the multi-nationals should elect to pass on the cost (tax) onto the consumer. That would just drive up the prices of goods and services to a point where new factories will spring up overnight across America to manufacture those same products cheaper.

The only viable alternative open to them would be to pull up their stakes and move their operations back to the United States.

And this is Rick's Theorem.


Shelby Moore
17 Aug 10, 23:09
Coase's Theorem

Rick,

You still don't understand.

The multi-nationals will simply go produce in Asia at $8 per day per person, instead of $400 per day per person in USA (wages + insurance + higher overhead etc).

So then you still will have taxed yourself, because the rest of the world is buying products up to 50 times lower prices.

You go ahead and do that, because I will not pay up to 50 times more for products. That is a tax. I will leave the USA (well I already did!) and keep my freedom to buy lowest priced products and not tax myself by erecting tariffs.

So then you might be tempted to argue that by paying higher prices for your products in order to artificially inflate your wages behind a protectionist tariff border, that you will have higher prosperity in USA. Well again I would explain that you don't understand. If you pay more for products, it means you are giving people more $ than they deserve for their skills, which means you will de-motivate people to strive to get higher skills that can earn more money. And that is exactly the situation now in the USA. Rich, fat, stupid white people are not motivated to get engineering degrees. Why should they? Bubba can earn a nice fat paycheck with universal health care, simply by doing some repetitive manual labor.

Coase's Theorem always applies, you are just not intelligient enough to understand it unfortunately. Which as I said, is the problem with taxes, it makes people stupid, thus mis-allocates human capital, and thus causes massive failure and misery.

Don't worry, there are lot of stupid people like you, and so the USA will end up trying tariffs, and the elite will be grinning from ear-to-ear as you all repeat the same mistakes (non-solutions) from the Great Depression and impoverish yourselves even worse.

Nadeem had the correct answer, the only way to improve is to compete in the FREE market. But I am confident you will instead ignore Coase's Theorem and find some way to steal (tax) yourself. Sad but true brother.


Rick
18 Aug 10, 13:18
Bangladesh Laborers et al

"If you pay more for products, it means you are giving people more $ than they deserve for their skills..."

Hmmmm......Well, I suppose that if you are alluding to the productivity of a typical impoverished Bangladesh laborer with that of an American laborer in providing the same identical output, any number cruncher could win that argument hands down.

"Nadeem had the correct answer; the only way to improve is to compete in a FREE market".

Did I understand you right when you reiterated that the correct answer is to give industry a windfall across the board 0% flat tax on all capital gains and profits for 10 years? Please open up your macroeconomics textbook and review the chapters on price, supply and demand. What do you think will be the end result of this giveaway program to industry? Answer: 1. Precipitously higher taxes for the consumer so as to make up the difference. 2. Virtually zero spending power for the consumer. 3. Additional inventory backlogs rotting at the docks and freighters 4. Uptick in unemployment and wage concessions 5. Etc.etc.

Before it slips my mind, let me revise part of your response so as to read: "....the only way to improve is to compete in a FAIR market".

Oh yes. While we're broaching the subject on tarriffs, I'm well aware that the history books, the corporations, the politicians and the media had forever brainwashed the populace through the years into believing the fairy tale that the 1930 Smoot-Hawley Tarriff Act was the cause of the Great Depression of the 1930's. Well, if one really takes a good analytical view at the statistics during that time, the level of trade between the United States and other partners was simply too low as to have any measurable effect on the economy. Even if this was not the case, the only thing that President Hoover did right for Main Street during his entire administration from my perspective was to sign onto the Smoot-Hawley Tarriff Act. Certainly the corporations and the unions were not complaining about the Act at that time so why should we now?


Shelby Moore
18 Aug 10, 16:19
Very sad

The productivity of a Chinese factory worker in one of their modernized factories is on par with the American worker, yet the labor cost of the value-added is 1/10 if not 1/50th.

Point remains if you force "made only in USA", then you are going to pay incredibly high prices. The American workers will have no incentive to make any concessions on union wages and benefits, because they will have a captured market.

Any way, I suggest you try it. And I have great news for you, the USA is going to try that, so you will get to find out just how unpleasant it will be. Stay tuned.

There is no windfall tax on any one by allowing the market to be free and allowing business produce and invest freely. The giveaway was caused by the barriers. For example, I can not go compete in Asia, because I as a foreigner are not allowed to freely invest here on the same footing as a citizen. Whereas in USA, everyone is welcome to invest and own property, if they are foreigners. You would get much better results if you would refuse to let any foreigner invest and own property in our country, if they won't let us invest and own property in theirs. In other words, fight to remove the barriers that are causing free give aways. Don't erect more barriers that intend to redistribute give aways back to others. You should just like Obama:

http://www.wnd.com/?pageId=79225

You and he both want to "redistribute" (free giveaways).


Nadeem_Walayat
18 Aug 10, 18:47
jobs and taxes

Rick

You need to appreciate, that the 9.5% in the US who are unemployed and in reciept of benefits which if in work would instead be PAYING taxes. Therefore zero tax on 100% domestic manufacturing businesses for 10 years is not a cost to the economy but would be a huge benefit!

And similarly you fail to understand that the government would NOT be giving anything to the business but allowing them to retain their profits that they will then INVEST to GROW their businesses and thus aACCELERATE economic activity.

In the UK we now have a business focused government that is trending in the right direction on the economy, public spending and deficit.


Shelby Moore
18 Aug 10, 22:29
labor cost & taxes

Nadeem, you may know that U-6 is 16% in USA (26% under 26 age). ShadowStats.com estimates 21% if calculated the way it was originally. Participation in job sector is 58% (51% under 26 age) down from 70% recently and down from 80% in the 1950s. In short, the jobs crash is already in full swing, which is why you are seeing commentators like Rick appearing.

Agreed that lowering taxes increasing prosperity, but lowering one tax while erecting a tariff barrier will actually raise unemployment because it will drive domestic prices skyhigh. And this reveals a fallacy in your argument that lowering domestic taxes will produce any benefit before an implosion of real wages-- specifically that even if you lower tax overhead to 0, the wages in western are still several times higher than in developing world, and they are not justified because westerners are not several times higher in productivity.

No matter what you do with taxes, the implosion (hyper-inflation) is inevitable. The lowering of taxes would help after the implosion, once the world wages are re-balanced by the hyper-inflation. But taxes adjustments will do nothing to stop the implosion. So don't get so confident about the UK. Also afaics, the UK is raising taxes, not lowering them, but it doesn't matter even they were lowering them to 0.

However, lower taxes on the high-tech and finance sectors, could indeed bring in jobs to the west, because our productivity is so much higher in those sectors. But nothing we do can bring manufacturing jobs back to west, as long as real wages are so much higher than developing world.


Rick
19 Aug 10, 12:03
Sad (But True)

"And that is exactly the situation now in the USA. Rich, fat, stupid white people are not motivated to get engineering degrees. Why should they?

Bravo! Yes, why should they? Are they supposed to bury themselves in a mountain of student loans to get some frickin' engineering degree just so they can now earn $16.00-18.00/hr? Sounds like a very poor return on the dollar to me. But wait. There's more. Now here's the clincher. Companies such as Microsoft do not want to hire their engineers domestically; they would much rather import their engineers since they'll work on the cheap. Ding dong?

"Point remains if you force "made only in USA", then you are going to pay incredibly high prices. The American workers will have no incentive to make any concessions on union wages and benefits, because they will have a captured market."

We're paying high prices already for foreign made junk that's begging to be set aside at the curb. At least if we buy American, we're liable to get some return on the dollar. Now why should American workers make any type of concessions? If anything, shouldn't they be entitled to at least a "living wage"? Unless two and two no longer makes four, they do have a family to feed. Now of course a captured market may not be ideal but other countries have been practicing it for years; that's the grim reality.

The multi-national corporations have been lavished with tax breaks and loop holes for years and we now have a virtual complete decimation of our manufacturing base to show for it. I should have thought that the failed "trickle down economics" policies of the Reagan administration and the Bush tax cuts would have taught us something. Why continue to pad the pockets of the wealthy and the corporations and create a world of despair and poverty in the process?

You guys really need to get your noses out of the textbooks for once and look at the state of affairs with a clear open mind. There is a human factor involved here and that by definition must be included in any formula if one is to expect a valid result. Ask any family of four.


Nadeem_Walayat
19 Aug 10, 12:25
domestic production

Yes it is obvious that real term wages will converge between east and west, which means higher inflation in the west.

To become prosperous economies have to manufacture domestically, otherwise its an accelerating trend towards hyperinflation. Manufacturing is the only answer that I can see and without it the governments are fighting a losing battle against deficits that cannot be bridged.


Shelby Moore
19 Aug 10, 14:46
lower wages or hyper-inflation

Nadeem your concise summary is spot on. Keeping the wages artificially elevated will simply insure it ends in hyper-inflation instead of inflation. Lowering taxes can help lower that rate of inflation and maybe ease the transition by preventing hyper-inflation (but I doubt it as the fiscal time-bomb is already intractable). Rick's comments (and others) seem to indicate that the westerners can't tolerate the inflation (and worse the hyper-inflation they will get in the end if they keep resisting the real wage adjustment).

Rick, actually I used to think like you do back in 2006, when I used to comment on Stein Report. I was against immigration, against NATFA (even volunteered for Ross Perot in 1992 in Newbury Park, CA office), H1-B visas, etc..

Then around 2007 it hit me. I became a Libertarian. I realized mathematically that I was wrong, and that all the barriers I wanted to erect would actually cause more misery.

It is not that I don't feel your pain, heck I lived in a squatter area, had to borrow $1 to eat, and had dysentery every third day living in a 3rd world country back in mid-1990s. So it is difficult for me to weep about westerners who think nature owes them a "living wage". Yes nature will give you that, but not if ALL OF YOU HAVE BEEN STEALING FROM EACH OTHER:

http://www.marketoracle.co.uk/Article21650.html

The part you forgot Rick is in that link above. Every single American person (and every westerner) has been stealing via their use of the usury system. It was fun while you were stealing, and now comes nature to make you pay it back. You don't realize it Rick, but mathematically the fiat system was used to rape the developing world of natural resources and feed it to the Westerners as debt. And we gorged on it. And now there is nothing mathematically possible to stop the pay back.

It is not a lack of empathy on my part. I am a very empathetic person, but not to thieves, and even if I could, I couldn't stop what is coming. It is mathematically assured. Are you prepared? That is the only thing that matters. Take care of yourself.

P.S. The corporate and govt fraud was caused by the Westerners gorging on debt, which was caused by the Fed manipulating interest rates and suppressing gold:

http://www.marketoracle.co.uk/Article20263.html

Until we stop using usury money system, then we will not stop these kind of horrific booms and busts. But we can't stop using usury money systems for as long as human beings want to borrow and save and insure at compound interest rates. Mathematical fact.


Shelby Moore
21 Aug 10, 01:43
Rich eaten by the richer

Rick, don't worry the rich (Wallstreet, insurance salesmen, etc) who helped the masses steal from each other, will also be punished, because richer eat the rich. It is a mathematical truth, that is also mirrored in scripture:

Haggai 2:8 All silver and gold belong to me, [says the Lord God]

There is a scripture in bible (can't find it right now) about how if you guard your wealth with an army, someone with a bigger army will attack and stealth your wealth. Big fish eat smaller fish. Only way to win is to come out of the carnal system into God's system.

Revelation says the rich will become very rich and be attacked by the people:

http://www.bibleprophesy.org/rev1718.htm#8

(the people will be following the Anti-Christ when they do this, see the bottom of this comment of mine for more about that)

Psalm 62:10 “Do not trust in extortion or take pride in stolen goods; Though your riches increase, Do not set your heart on them.”

Psalm 109:11 "Let the creditor seize all that he [the wicked] has; and let strangers plunder the product of his hand."

1) Gold will increase in value and be stored up by many in the last days. This will be a witness against those who trusted in riches rather than God (James 5:1-3).

2) Men will be “lovers of money” rather than lovers of God. They would have an appearance of godliness but it would only be a religious veneer (2 Timothy 3:1-5).

3) The wealthy of the world will not only store up gold as a hedge against all the global turmoil, but many will even “worship…idols of gold” (Revelation 9:20). In other words, their confidence will be in gold and materialism rather than their Creator.

4) The Antichrist will honor a false god with “gold and silver, with precious stones and pleasant things” and he shall have control over much of the world’s gold, silver and wealth (Daniel 11:38-43).

5) The last days apostate church will be decked with gold and wealth (Revelation 17:4). Not surprisingly, the Roman Catholic Church has huge reserves of gold and silver treasure.

6) Neither the world’s silver nor their gold shall deliver or save them in the day ofthe Lord’s wrath (Zephaniah 1:14-18).

Deuteronomy 7:25 “You shall not covet the silver or the gold that is on them [graven images], nor take it for yourselves, lest you be snared by it, for it is an abomination to the Lord your God.”

Psalm 10:3-4 "The greedy man curses and spurns the Lord"

Luke 6:30 (Jer) "Give to everyone who asks you, and do not ask for your property back from the man who robs you."

Luke 16:19-31 (NIV) "There was a rich man who was dressed in purple and fine linen and lived in luxury every day. At his gate was laid a beggar named Lazarus... The beggar died and angels carried him to Abraham's side. The rich man also died... In hell, where he was in torment, he looked up... 'I am in agony in this fire.' But Abraham replied, 'Son, remember that in your lifetime you received your good things, while Lazarus received bad things, but now he is comforted here and you are in agony...' 'Then I beg you... I have five brothers... warn them so that they will not come to this place of torment.' 'They have Moses and the Prophets, let them listen to them.'"

Luke 12:15-21 (Phi) ..."Be on your guard against covetousness in any shape or form. For a man's real life in no way depends upon the number of his possessions... A rich man's farmland produced heavy crops. So he said to himself, 'What shall I do, for I have no room to store this harvest of mine?' Then he said, 'I know what I'll do. I'll pull down my barns and build bigger ones where I can store all my grain and my goods and I can say to my soul, Soul, you have plenty of good things stored up there for years to come. Relax! Eat, drink, and have a good time!' But God said to him, 'You fool, this very night you will be asked for YOUR SOUL!...' That is what happens to the man who hoards things for himself and is not rich in the eyes of God."

Prov 28:20 (NIV) The faithful man will be richly blessed, but one eager to get rich will not go unpunished.

Ecc 5:10-15 (NIV) Whoever loves money never has enough; whoever loves wealth is never satisfied with his income. This too is meaningless. As goods increase, so do those who consume them. And what benefit are they to the owner except to feast his eyes on them? The sleep of a laborer is sweet, whether he eats little or much, but the abundance of a rich man permits him no sleep. I have seen a grievous evil under the sun: wealth hoarded to the harm of its owner, or wealth lost through some misfortune... Naked a man comes from his mothers womb, and as he comes, so he departs...

Prov 11:4,28 (NIV) Wealth is worthless in the day of wrath, but righteousness delivers from death... Whoever trusts in his riches will fall...

Mat 6:24 (NIV) Jesus said "No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money."

Job 31:24-25,28 (NIV) [Job:] "If I have put my trust in gold or said to pure gold, 'You are my security,' if I have rejoiced over my great wealth, the fortune my hands had gained... then these also would be sins to be judged, for I would have been unfaithful to God on high."

James 1:9-11 (Phi) The brother who is in need may be proud because God has raised him to the true riches. The rich may be proud that God has shown him his spiritual poverty... Just as surely will the rich man and his ways fall into the blight of decay.

Mark 4:18-19 (Phi) "Then there are the seeds which were sown among the thorn bushes. These are the people who hear the message, but the worries of this world and the false glamour of riches and all sorts of other ambitions creep in and choke the life out of what they have heard, and it produces no crop in their lives."

Luke 9:25 (NIV) "What good is it for a man to gain the whole world, yet lose or forfeit his very self?"

Luke 12:29-34 (Phi) "You must not set your heart on what you eat or drink, nor must you live in a state of anxiety. The whole heathen world is busy about getting food and drink, and your Father knows well enough that you need such things. No, set your heart on his kingdom, and your food and drink will come as a matter of course... Sell your possessions and give the money away to those in need. Get yourselves purses that never grow old, inexhaustible treasure in Heaven, where no thief can ever reach it, or moth destroy it. For where your treasure is, you may be certain that your heart will be there too!"

1 Tim 6:8-10 (Phi) Surely then, as far as physical things are concerned, it is sufficient for us to keep our bodies fed and clothed. For men who set their hearts on being wealthy expose themselves to temptation. They fall into a trap and lay themselves open to all sorts of silly and wicked desires, which are quite capable of utterly ruining and destroying their souls. For loving money leads to all kinds of evil, and some men in the struggle to be rich have lost their faith and caused themselves untold agonies of mind.

=====================

It depends if you got rich by helping prosperity or by theft or by idling (burying) capital in the ground:

Luke 16:9-11 (Phi) Jesus said, "Now my advice to you is to use 'money', tainted as it is, to make yourselves friends, so that when it comes to an end, they may welcome you into the houses of eternity. The man who is faithful in the little things will be faithful in the big things. So that if you are not fit to be trusted to deal with the wicked wealth of this world, who will trust you with true riches?"

Matthew 25: Jesus said, 24Then the one who had received the one talent came and said, ... 25 so I was afraid, and I went and hid your talent in the ground. See, you have what is yours.’ 26 But his master answered, ‘Evil and lazy slave!... 28 Therefore take the talent from him and give it to the one who has ten. ... 30 And throw that worthless slave into the outer darkness, where there will be weeping and gnashing of teeth

1 Cor 4:8-21 (NIV) Already you have all you want! Already you have become rich! You have become kings--and that without us! How I wish you really had become kings so that we might be kings with you!.. We are fools for Christ, but you are so wise in Christ! We are weak, but you are strong! You are honored, we are dishonored! To this very hour we go hungry and thirsty, we are in rags, we are brutally treated, we are homeless... Up to this moment we have become the scum of the earth, the refuse of the world. I am not writing this to shame you, but to warn you, as my dear children... I will come to you very soon, if the Lord is willing, and then I will find out not only how these arrogant people are talking, but what power they have. For the kingdom of God is not a matter of talk but of power. What do you prefer? Shall I come to you with punishment, or in love and with a gentle spirit?

Genesis 6:5 The Lord observed the extent of human wickedness on the earth, and he saw that everything they thought or imagined was consistently and totally evil. 6 So the Lord was sorry he had ever made them and put them on the earth. It broke his heart. 7 And the Lord said, “I will wipe this human race I have created from the face of the earth. Yes, and I will destroy every living thing—all the people, the large animals, the small animals that scurry along the ground, and even the birds of the sky. I am sorry I ever made them.” 8 But Noah found favor with the Lord.

Matt 24:37-39 Jesus says, “When the Son of Man (Jesus) returns, it will be like it was in Noah’s day. In those days before the flood, the people were enjoying banquets and parties and weddings right up to the time Noah entered his boat. People didn’t realize what was going to happen until the flood came and swept them all away. That is the way it will be when the Son of Man comes.”

Rev 3:15-20 Jesus says, “I know your Deeds, that you are neither Cold nor Hot; I wish that you were Cold or Hot (Good Water). So because you are Lukewarm (Iindifferent / Bad Water), and Neither Hot nor Cold, I will Spit you out of My Mouth (Perish in Hell).”

1 Tim 5:24 “Remember that some people lead sinful lives, and everyone knows they will be Judged. But there are others whose sin will not be revealed until later.”

1 Peter 1:17 “And remember that the heavenly Father to whom you pray has no favorites when He Judges. He will Judge or Reward you according to what you do. So you must live in Reverent Fear of Him during your time as foreigners here on earth.”

2 Cor 5:10-11 “For we must all stand before Christ to be Judged. We will each receive whatever we deserve for the good or evil we have done in our bodies. It is because we know this solemn fear of the Lord that we work so hard to persuade others. “

2 Thess 1:7-12 “God will provide rest for you who are being persecuted and also for us when the Lord Jesus appears from heaven. He will come with his mighty angels, in flaming fire, bringing Judgment on those who don't know God and on those who refuse to obey the Good News of our Lord Jesus. They will be punished with everlasting destruction, forever separated from the Lord and from His glorious power when He comes to receive glory and praise from His Holy People. And you will be among those praising him on that day, for you believed what we testified about Him. And so we keep on praying for you, that our God will make you worthy of the life to which He called you.“

Rom 14:10-12 “Remember, each of us will stand personally before the Judgment Seat of God. For the Scriptures say, "As surely as I live," says the Lord, "every knee will bow to me and every tongue will confess allegiance to God." Yes, each of us will have to give a personal account to God.”

Matt 16:27 Jesus says, "I will come in the glory of my Father with his angels and will Judge all people according to their deeds."

John 5:22 Jesus says, “The Father leaves all Judgment to His Son (Jesus).”

Matt 7:21-23 Jesus says, "Not all people who Sound Religious are really Godly. They may refer to Me as `Lord,' but they still Won't enter the Kingdom of Heaven. The decisive issue is whether they Obey My Father in Heaven. On Judgment Day Many will tell Me, `Lord, Lord, we Prophesied in Your Name and Cast out Demons in Your Name and Performed Many Miracles in Your Name.' But I will reply, Depart from Me, I Never knew you. You who Broke My Laws."

http://www.biblegateway.com/passage/?search=Rev18:4;Mat7:13;1John2:15;Exo23:2;Isa5:8;John15:18-19;2Cor6:14-17;2Tim3:1-5,7;Rev22:11;Rev13:10;Rom13:4;Judg7:22;Rom13:8;Deut15:1-2;Prov22:7;Lev25:10,13,23;Pro23:5;Rev18:11-12,16-17;Ezek7:19;Rev3:15-21;Mat28:19-20;&version=9;

The Anti-Christ is not one entity, it is all the people who love and idol carnal knowledge (worldly pursuits), here is the scripture proof:

http://goldwetrust.up-with.com/biblical-f3/how-to-come-out-of-the-great-harlot-t97.htm

More:

http://www.wisdomonwealth.org/Table/Scriptures/


Rick
22 Aug 10, 15:16
Rich (Or Poorer)

Amen. Alas, lest we forbade mention: "Again I say to you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God" (Matt 19:24).

As per gold, silver and other commodities including other capital holdings, allow me to quote a verse from the House Of Rothschild Sacred Scripture: "Woe I say onto them! He who has the gold makes the rules".

Some who have promoted the purchase of precious metals and the like may have had the best of intentions, but have no illusions. They had inadvertently placed a wager against the House (of Rothschild) but of course the House (of Rothschild) in this hand holds all the Aces.


Shelby Moore
22 Aug 10, 19:46
Amen

Here is a song to listen while reading your post again Rick. Describes the feeling/reality well I think?

http://www.youtube.com/watch?v=GqmRDV0a_70

Amen.


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