Roundtable Discussion

Is modern day capitalism consistent with what the bible teaches about money and business?

Let’s start out with Webster’s definition of Capitalism:

Capitalism is an economic system where private individuals or organizations own and control the means of production, and where the free market determines prices and the distribution of goods.

Webster’s Dictionary

Sounds pretty good so far.

#1 Private ownership was embraced in the bible by allotting land in Israel to families. Read Numbers 26:53 “the land should be divided for inheritance based on population”

#2 Free markets are also in the bible as an extension of the free-will of man. “For this is what the Lord Almighty, the God of Israel, says: Houses, fields and vineyards will again be bought in this land.” Jermiah 32:15

However, there were numerous prohibitions tempering this freedom by God. For example, the allotment and inheritance of land was made in proportion to need. It was followed by the concept of Jubilee (returning land to original inheritors, no matter the pledge or debt). Similarly, there was the freedom to lend money, but not to charge interest. Plus, there was a requirement to forgive debts every seven years. Also not to work the land every seven years. No buying and selling of goods within the walls of Jerusalem on the Sabbath. Etc.

Now, let’s take a look at some of the writings of the “Father of Capitalism”, Adam Smith.

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest

Adam Smith

Adam Smith points out here and in his writings that self-interest is what provides for our families – not the benevolence of man (nor the benevolence of God – note connection with Deism below).

Now, lets look at what the bible says about this :

Let nothing be done through selfish ambition or conceit, but in lowliness of mind let each esteem others better than himself. Let each of you look out not only for his own interests, but also for the interests of others.

Philippians 2:3-4

And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through him.

Colossians 3:17

The one who is unwilling to work shall not eat

2 Thessalonians 3:10

Seek first the Kingdom of God and righteousness, and all this (dinner, drink, clothes, needs, etc.) shall be added unto you

Matthew 6:33

Which begs the question: what is true work?

My food is to do the will of the Father

John 4:34

Not exactly the same as what Adam Smith suggests. Note the important differences. Its not all about self-interest leading to our provision. Its about trusting God for provision, loving others, working with diligence as unto God, and for God. Where there is need, let us pray and ask for help and wisdom, not trying to scramble, scrape, or horde money, income, profit and gain as though God never assured us.

Not that I speak in regard to need, for I have learned… to be content: I know how to be abased, and I know how to abound… I have learned both to be full and to be hungry, both to abound and to suffer need. I can do all things through Christ who strengthens me.

Philippians 4:11-13

I will be with you always, even unto the end of this age

Matthew 28:20

Every individual… intends only his own gain, and he is… led by an invisible hand to promote an end which was no part of his intention.

Adam Smith, Wealth of Nations (1776)

Mmm, who or what is this invisible hand??

We need to put things into context. Adam Smith was part of the Scottish Enlightenment. Which was connected to the French Revolution and Deism.

In the… Age of Enlightenment or Age of Reason, deism emerged as a theological position that attempted to define the natural world and man’s relationship to God through the application of Enlightenment ideals such as reason, rationality, and order.

The Influence and Legacy of Deism in Eighteenth Century America, Piland

To understand what those movements stood for, we can look to Voltaire, an 18th century French philosopher who believed god was uninvolved in the day-to-day affairs of men, as he was only the “clockmaker of the universe”, leaving men to their own interests. This type of thinking leads down a slippery slope to another enlightenment philosopher’s ideas…

I think therefor I am

Descartes 1637

Fast forward to the 20th century, and we have Milton Friedman, a modern day Adam Smith adherent (that’s an Adam Smith tie he’s wearing).

Here are some relevant Friedman quotes:

The business of business is business

Milton Friedman

A corporation is an artificial person and in this sense may have artificial responsibilities, but ‘business’ as a whole cannot be said to have [social] responsibilities, even in this vague sense.

Milton Friedman

Here’s the thing: If a corporation is an artificial person, shareholders are also artificial people – or perhaps better said, nameless faceless people who have no soul – no regard for fellow man. Real people can therefore “hide” behind the shareholder “strawman”.

Famous NYT Article: A Friedman doctrine‐- The Social Responsibility of Business Is to Increase Its Profits

There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.

Capitalism and Freedom, Milton Friedman 1965

But what of deceptive advertising? Hidden fees? The ol’ bait and switch? The free trip, if we can sell you a condo. There are many such deceptive things permitted “within the rules of the game” today.

Yet, even if we give Friedman the benefit of the doubt here: Is the only requirement of God to commit no fraud or deception? These scriptures contravail such claims:

“Do not oppress the poor because he is poor” – Proverbs 22:22

“And if you sell anything to your neighbor or buy from your neighbor’s hand, you shall not oppress one another.” – Numbers 25:14

“If you lend money to the poor among you, you are not to act as a creditor to him; you shall not charge him interest” – Exodus 22:25

“Do not charge a fellow Israelite interest, whether on money or food or anything else that may earn interest.” – Deuteronomy 23:19

“If a wicked man gives back what they took in pledge for a loan… they will not die.” – Ezekiel 33:15

“When you reap the harvest of your land, do not reap to the very edges of your field. Leave them for the poor and for the foreigners.” – Leviticus 23:22

So, in effect Adam Smith’s philosophies, evolved into the Friedman doctrine, which essentially has created a wall of separation between faith and business – and therefor a moral vacuum, since “corporations are not people” and shareholders are a abstraction, rather than personal reality.

Capitalism looks similar to God’s principles of free-will of man, land ownership, and freedom. But is this, especially in its modern day interpretation, really the same as God’s covenants with men? Or, is it more a like a close cousin?

Perhaps like a butterfly compared with a moth? Both start off as caterpillars, but…

Or sheep vs. goat?

This moral vacuum rationalization of hiding behind corporations, shareholders and profits, echoes of the stories told in the Bible of the Pharisees, who had a form of Godliness, but Jesus labeled them hypocrites and white washed tombs. Their hearts were far from God. They were also identified as lovers of money. Everything looked fine on the outside, but the inside was filthy dirty.

“Woe to you, scribes and Pharisees, hypocrites! For you cleanse the outside of the cup and dish, but inside they are full of extortion and self-indulgence.” – Matthew 23:25

5 Points of how Capitalism differs from God’s Economy

• Capitalism embraces Capital as King. The bible says Jesus is King.
• Publicly traded corporations have taken Christianity and Judaism out of the board room and any official business. HR enforces such policies.
• Capitalism is a structure where capital and shareholders demand a return, without need for personal regard or accountability to human impact – rich or poor, healthy or sick.
• Capitalism has been sometimes described as “survival of the fittest”. Wall Street is like that. But did God ever say that men were to behave like animals?
• Modern capitalism has depersonalized business. It hides behind “shareholders” and “returns”. It strictly enforces debt “covenants” through litigation. Etc.

Free-market capitalism is the best path to prosperity

Larry Kudlow

Remember the Lord your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers

Moses

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

Jesus

Choose this day whom you will serve

Joshua

Resources

Bank of Japan Warning Follow-up

Read / listen to prior posts and podcast here:

• Watch Japan (1/4/23)
• Watch Bank of Japan (12/12/23)
• Japanese Suzu Earthquake (1/10/24)
• 1st raise BOJ (3/27/24)
• Yen Intervention (5/1/24)
• 2nd Raise BOJ Warning (8/7/24)

Since the BOJ raised rates at the end of July, and the Nikkei tanked 20% / the rest-of-world markets dropped by 10%, and the VIX spiked to multi-year highs, everything now seems to have settled down and the market has hit new highs. Is it over? Was it no big deal? Just a hiccup? (spoiler alert: no)

We are here to discuss that and do a live Q&A.

Just this morning this line caught my attention in a Bloomberg article:

Japanese monetary policy could be the San Andreas fault of global finance

Arif Husain, head of international fixed income and chief investment officer – T. Rowe Price

Full Article Here: Manager Who Predicted Yen Shock Sees Another Coming. Apparently he started saying this back in June 2023.

Why is this interesting?

T. Rowe’s Husain is tying the Bank of Japan actions to the San Andreas fault (think West coast quake). Is this prophetic?

I know the BOJ is conscious of the effect it could have on global markets, but it’s a real and present danger, in my view. I certainly think it’s something that should be on our radar as investors

Husain. T Rowe Price

If you recall from prior discussions, Bob Jones and Rick Joyner are both on record as essentially saying: Once the Japanese quake of 3/11/11 happened, the worldwide economic meltdown AND a West Coast US megaquake can hit at any time. Read post here: Watch Japan – Bob Jones Earthquake Prophecies (scroll down to get to the earthquake and economic shaking prophecies, including videos).

God Send? Or Judgement Coming?

One other thing to pay attention to is when retail participation in the stock market reaches highs, it is a historical indicator of a market top.

Shoe Shine Time?

In the winter of 1928, Joe Kennedy’s shoeshine boy famously offered Kennedy a stock tip: “Buy Hindenburg.” Kennedy soon sold off his stocks, thinking:

You know it’s time to sell when shoeshine boys give you stock tips. This bull market is over.

Joe Kennedy Sr. 1928

Practical Steps You Can Take

Learn how to trust God not money as never before. Read more about this here:

1. God’s Economy
2. Am I a Slave?
3. Come out of Babylon and
4. Storehouse Vision

Short-term

• Sell paper based market investments (stocks, bonds, ETFs, mutual funds, annuities, futures, options, whole life policies, mutual funds, closed-end funds, hedge funds, private equity funds, etc.)
• Pay off all debts, especially mortgage debt
• Withdraw money from the banking system: cash-on-hand
• Buy convenient physical stores of value, such gold, silver, oil, grain, water, food

Long-term

• Help friends and family pay off their credit cards, student loans, debts and mortgages where you become the bank to them instead. Lend biblically. It creates an income stream back to you. Forgive debt periodically. Don’t charge interest. Those who borrowed can also provide a dividend to you as they are blessed to do so.
• Buy land
• Invest in local businesses
• Invest in agriculture and farms
• Invest in food-supply production, packaging, transportation and economy
• Invest in local energy sources, clean water, other essential needs, tools and equipment.
• Seed a local Storehouse (community co-op – bank like private pool of funds) to do all of the above with your friend

Roundtable Discussion

BOJ raises rates for 2nd time leading to Nikkei 225 implosion and a global market sell-off

So, what happened this week?

Japan’s stock market dropped 20% in 3 days. The US and Europe, almost 10% over the same period. These are some of the largest market drops ever in such a short time span.

For those of you following the New Breed of Business, you will recall our several discussions about the importance of Watch Japan and the Bank of Japan’s monetary actions:

• Watch Japan original discussion (1/4/23)
• Watch Bank of Japan (12/12/23)
• Japanese Suzu Earthquake (1/10/24)
• 1st raise BOJ (3/27/24)
• Yen Intervention (5/1/24)

If you have time to refresh on those discussions, it helps put into context this week’s market plunge and what is coming – likely over the next several months into 2025.

Much of the conversation has to do with “First Japan, then the US/Europe”.

Basically Japan was set up as a little America post WWII, less the foundations of faith. Their economy is more “Western” than “Eastern” in how their markets and banking are setup. The Yen is closely tied to the Dollar markets.

In a sense, Japan is just doing what we helped teach them to do, but on steroids. Hense, more debt. More money printing. Etc. They pioneered those things. To deal with their financial crash in the late 80s, which led to depression / deflation.

Japan was by some measures was the #1 economy in the 1980s. Now they are the fourth largest economy. They have greatly shrunk.

Japan is essentially like a beta test of Modern Monetary Theory. How far can they (the BOJ and Japanese government) stretch the bounds of monetary policy, quantitative easing, and debt borrowings with a major fiat currency (Yen).

Here is that chart:

	FIRST – JAPAN		FOLLOW – USA / EURO
STOCK MARKET CRASH	1989		2008
0% SHORT RATES	1995		2009
0% 10Y TREASURY	2016		2019
DEFLATION	1998		2009
DEBT TO 100% GDP	1999		2013
DEBT TO 200% GDP	2010
CENTRAL BANK QE – GOV DEBT	2001		2009
CENTRAL BANK QE – ETFS	2010		2020
CENTRAL BANK QE – 50% OWN GOV DEBT	2022

We have previously discussed one of the key global market dynamics: “Why? Because it portends a setup like we had in 2007, whereby the BOJ raises rates prematurely again. Because the Yen carry trade is still “on” in the hedge fund macro world.” (1st Raise BOJ discussion – March 2024)

What is the Carry Trade?
Carry Trade Example:
– Borrow in Yen at 0% interest
– Buy Mexican bonds at 11%

The sharp reversing of the carry trade by hedge funds likely begins a cascading of events which can lead to bursting all sorts of asset bubbles.

Why was/is the 2nd BOJ raise “bad for the economy / markets”, both back in 2007 and again in 2024? “It was premature for their economy, which was still greatly depressed and had just turned positive for the first time in a long-time.” (Watch Japan discussion – January 2023). Same reason today. BOJ made the move because they were trying to strengthen the yen and punish speculators. This is like cutting off your nose to spite your face.

Here is the case study from which the “Watch Japan” word has been based on:

These words are now in the process of being fulfilled.

• Article on Global Sell-off
• Article about why other assets outside Japan are unwinding
• Article on BOJ raises rates

A Sign

The market drop post the 2nd BOJ move was a sign in 2007 (down 10%), and sense again it is a sign in 2024 (down 20%). It was a sign in February / March 2007 leading to a full blown financial crisis in 2008. Will this recent move and market drop lead to the next financial crisis? Will it be even bigger this time?

We continue to WARN about why the US dollar led global financial markets are being judged – for pride, fear, greed, love of and trust in money, the depersonalization of finance, exploitation of the poor, etc. among many other reasons, just as ancient Egypt and Pharoah were judged for similar issues (read: Ezekiel 29-32). It is a BLIND-SPOT in the US church because of the more recent focus on prosperity, individualism and a no-suffering theology, post WWII.

The Significance of 40000

Both the Dow 30 and the Nikkei 225 interestingly reached new highs this year, both surpassing 40000 points. When this happened I was reminded of the number 40 in the bible. Jesus was tested in the wilderness for 40 days. The Israelites were tested in the wilderness for 40 years. So the number 40 is a biblically significant number with the meaning “testing”. I believe too, the world is about to go through a great period (1000 biblically) of financial and economic TESTING.

Come out of Babylon

Now, more than ever is time to seek shelter through repentance. We are commanded in Revelation 18:4 to “Come out of Babylon”. Practically, coming out of Babylon is coming out of partnership/ownership of any investments, companies and markets that have drunk the “cup of her abominations”. This includes the stock market.

If I sell my investments, what do I do with the money?

The Storehouse Vision is an economic framework that embodies this repentance (in deeds not just words) and we encourage all to pursue what scripture teaches us about trusting in Jesus, not money. There is no “easy” answer, but it requires the messy reality of relationships. Investing personally. Investing locally. Investing cooperatively. Investing actively. It requires listening to Jesus at times “Do not expect anything in return” instead of always demanding an earthly return (or have recourse to claw-back, or sitting back and collecting interest).

To focus on loving one another rather than only or first looking after self. To “not store up treasure on the earth where moth and rust will destroy – where thieves break in and steal”, but instead to “store up treasure in heaven” (Matt 6:19-24). This means relationships in the local and broader community are key. The wealth is in people, not gold, silver, money or stuff. It is fostered in the community. “Investment” takes on a whole new meaning when you look at “not the money that I need in the future”, but the opportunity to invest in the discipleship of people, and the calling God created them to develop into. This includes investment in local businesses owned by people you know. This also means “community banking” that is not part of the Federal Reserve / FDIC fractional banking structure.

Let us Come out of Babylon. Stop trusting in a “money black box” for profit and income. Take down the golden calf.

You have to think “outside the box”.

You have to become an “active investor” where you get involved with people’s lives. Yes, its messy.

You have to learn how to trust God for miracles of provision, even in the desert.

Practical Application

Short-term

• Sell paper based market investments (stocks, bonds, ETFs, mutual funds, annuities, futures, options, whole life policies, mutual funds, closed-end funds, hedge funds, private equity funds, etc.)
• Pay off all debts, especially mortgage debt
• Withdraw money from the banking system: cash-on-hand
• Buy convenient physical stores of value, such gold, silver, oil, grain, water

Long-term

• Help friends and family pay off their credit cards, student loans, debts and mortgages where you become the bank instead. Lend biblically. It creates an income stream back to you. Forgive debt periodically. Don’t charge interest. Those who borrowed can also provide a dividend to you as they are blessed to do so.
• Buy land
• Invest in local businesses
• Invest in agriculture and farms
• Invest in food-supply production, packaging, transportation and economy
• Invest in local energy sources, clean water, other essential needs, tools and equipment.
• Seed a local Storehouse (community co-op – bank like private pool of funds) to do all of the above with your friends and fellow believers

Read/listen/watch more on Come out of Babylon and the Storehouse Vision

Confirmation

And they went out and preached everywhere, the Lord working with them and confirming the word through the accompanying signs.

Matthew 16:20

The day after this discussion (8/8/24) and presentation of the warning, the second largest earthquake of the year hit Japan. 7.1 on the scale in Kyushu, Japan. Seven tsumani warnings were also issued. Let the reader understand.

Here too, was a warning of a mega earthquake (8-9 on scale) to come to Japan at any time.

https://www.nbcnews.com/science/environment/japan-megaquake-advisory-meaning-reason-rcna165976

Good Book

Roundtable Discussion

Fair Pricing with Joel Frazier

Back in April, Joel Frazier shared with the group some thoughts he had about how he was praying about how to price things in his business. Like a prayer sanctuary space. Or shelter for the homeless. Or working for those in need for material costs only, providing the labor for free or reduced.

Here is a video clip from that April 3rd discussion

With the price of everything going up, and our income/savings often feels like it’s not keeping up, what are we as Christian business owners and ministries to do? How should we price things? Should we pass along the increases and add on our own increase as well?

Or does God have a better way?

What is a fair price anyway, according to the word of God?

If Jesus was a carpenter, what did he charge for his work?

Did he do things for free?

We will discuss what the scriptures say about pricing goods and services in any business context.

Proverbs 16:8,11,16,19:

Better a little with righteousness than much gain with injustice.

– thought: we should be careful not to rationalizing gouging people

Honest scales and balances belong to the LORD; all the weights in the bag are of his making.

– thought: it would be better to err on the side of undercharging rather than overcharging

How much better to get wisdom than gold, to get insight rather than silver!

– thought: if I make less money but get more favor and wisdom from God, am I better off?

Better to be lowly in spirit along with the oppressed than to share plunder with the proud.

– thought: help the oppressed even if it costs you
– thought: it’s not good to partner with questionable gain that plunders others

[Sodom] is very much like contemporary American culture: pride, fullness of bread, abundance of idleness, neither did she strengthen the hand of the poor and the needy

Derek Prince

Should we price things differently for the oppressed, the poor, the widow, the orphan?

When you reap the harvest of your land, you shall not reap to the very corners of your field nor gather the gleaning of your harvest; you are to leave them for the needy and the alien

Lev 23:22

Do not go over your vineyard a second time or pick up the grapes that have fallen. Leave them for the poor and the foreigner. I am the LORD your God

Lev 19:9

– thought: leaving free crops in the field decreases your gross margin but helps people

You shall not lend [the poor] your money for usury, nor lend [the poor] your food at a profit.

Lev 25:37

– thought: be careful not to enslave the poor for profit after offering help

He who oppresses the poor to increase his riches… will surely come to poverty.

Proverbs 16:22

– thought: be careful not to take advantage of the poor for sake of profit

The ground of a certain rich man yielded plentifully… I will build greater [barns]… he [is a fool] who lays up treasure for himself, and is not rich toward God.

Luke 12:21

– thought: what should we come upon the blessing of excess gains?

If God’s Economy is giving and receiving, how do we find a fair price between parties in a business exchange that pleases the Father?

Should we give people goods and services for free? Will they or others return the favor in kind or in trade for something else? Will God see it and help us in other ways? Other business opportunities?

Price Transparency

Joel brings up the example of how the Quakers implemented a reform in their owner’s stores – everything marked with a fixed price – as a way of preventing price gouging based on who is shopping in your store. While today such transparency is commonplace, apparently back then it was not. A store owner can always lower the price unilaterally to help someone or promote a sale, but should guard against temptation to exploit someone by charging more just because they can in the fog of a lack of transparent pricing.

Lack of Transparency: Medical

Like in the medical industry, how services and treatment pricing is always after the fact. In fact, most medical practices and hospitals will have people sign a financial responsibility contract, without even knowing what they will be on the hook for later. It’s a trust us, while we don’t trust you situation. Based on a power dynamic where by you need the medical attention, so we have you “over a barrel”. Leading to injustices and price gouging. Often rationalized by “insurance will pay for it”.

Join the conversation…

Roundtable Discussion – Scenario Planning: Civil War

Background

We have in the past looked at various geo-political and economic scenarios that have prophetic words associated with them on the New Breed of Business. Here is a past such discussion that well describes the exercise: Economic Scenario Planning.

So, the other day I saw news that Texas was establishing a new Stock Exchange to compete with the New York exchanges. Unusual.

I also recalled how recently Elon Musk’s salary and bonus at Tesla famously was struck down by a judge in a Delaware court, where Tesla is incorporated (as well as most corporations). What was the solution? Get shareholders to vote to move the company legal HQ to Texas. The Musketeers got it done and now Musk will now once again receive a huge payday (estimated at $56 Billion).

I wondered: Is this a sign of corporate, legal and financial infrastructure being established in the “Red States” in a potential precursor to secession? The traditional home of exchanges in NYC and legal HQs in Delaware in the United States are now firmly “Blue States”. I’m thinking back to the civil war and how the confederate states wanted to seperate from the Union primarily for economic reasons which slavery was entangled with.

Today is Juneteenth. I didn’t get the inspiration for this discussion because of this day. It happened to be the same day, which I didn’t realize until this week. But I think that it’s interesting. Juneteenth is a remembrance and a celebration of the freeing of slaves and the end of the civil war, originating in Galveston, Texas almost 3 years after the end of the civil war!

Most people know there is undeniable data which reveals economic disparity between blacks and whites in terms of income and wealth. Which leads to questions about systemic racial inequities coming out of the African slave trade, civil war and Jim Crow. It’s complicated by how families were ripped apart as part of that slavery past, leading to similar disparities racially in single mothers vs. married couples, disparity in educational opportunities, the reality of “white flight” out of inner city neighborhoods., etc.

The Asbury Outpouring 2023

Here is something fascinating that our friend Joel Frazier brought to my attention. Did you know the history of the Asbury revival last year 2023? It was preceded by repentance over slavery, where a group of Christian leaders and students were reading the wills of slave owners and repenting. Here is the story of George Dumaine at Asbury: https://craigkeener.com/a-backstory-to-the-2023-asbury-revival/

“Every kingdom divided against itself is brought to desolation, and every city or house divided against itself will not stand.”

– Jesus, Matt 12:25

Did you know that Abraham Lincoln actually quoted this verse at the Illinois Republican State Convention on June 16, 1858?Gettysburg Address

Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal. Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure… that we here highly resolve that these dead shall not have died in vain — that this nation, under God, shall have a new birth of freedom — and that government of the people, by the people, for the people, shall not perish from the earth.

 – Abraham Lincoln, November 19, 1863

The political discourse in the United States between parties and their Presidential candidates is highly likely to reach new lows of anger and division this fall. We may have riots again like we did in 2020.

Of course, we pray for Jesus – the Prince of peace to come in the midst and heal our nation. But what if what is happening is a judgment on the United States? And we must go through some type of revolution or civil war like we have in the past – which also incidentally was tied to the first and second great awakenings?

And what if it isn’t so clear for Christians as Red v Blue? What if there is a “third column” that we need to be part of – that is the Kingdom of Jesus…

Here are excerpts from Rick Joyner’s book.

Have a read / listen to the Francis Scott Key Bridge discussion we had a few months ago for more understanding of all this.

Here too is an excerpt too from John Paul Jackson’s writings, The Coming Perfect Storm.

Bob Jones 2010 Shepherd’s Rod – The Eagle

related excerpts…

Key Videos that Lend Understanding

Other relevant dreams, writings and discussions
Train Wreck Dream

JPJ Coming Perfect Storm in Banking System Risks

Chris Reed’s $50 Dream

Friend or Foe double dream

Kamala Harris dream – I am from Concord 

Roundtable Discussion

Another bank has failed.

Republic Bank had about $6 billion in total assets and $4 billion in total deposits, as of Jan. 31, 2024. The FDIC estimates that the cost to the Deposit Insurance Fund related to the failure of Republic Bank will be $667 million.

Why does this keep happening?

What does it portend for the system as a whole?

Now also…

What’s going on with the Yen? It hit its lowest point in 34 years this past week. Many speculate the Japanese government had enough and intervened early Monday, aggressively buying Yen. Since they don’t announce their movement in Yen, it remains murky. Some believe the government is signaling a ceiling of 160 Yen/Dollar.

Why is this happening? 

It has to do with the policy of the BOJ which may be poised to raise rates from 0% in the near future and that the Federal Reserve is now no longer planning to cut rates from 5.25%. The yield difference creates tension and downward pressure on the value of Yen/Dollar.

Watch CNBC video on US Japan yield differential causing Yen weakness

Why is this a problem?

As in 2007, if the BOJ raises rates or the Japanese government makes decisions based on pride rather than sound policy, it could trigger another global asset value crisis (2008 was a collapse in mortgage-related debt value). See more below.Relevant Articles

Regulators Seize Republic First – NYT Article

BOJ Intervenes Monday – WSJ Article
Background Discussions

Banking System Risks – April 2024

Bank of Japan (BOJ) raises raises rates for first time in 15 years – March 2024Prophetic Perspectives

1. First Republic failed and now Republic First fails. Coincidence?

How about this? When we put our “Republic” first – ie ahead of God and what Jesus said about true religion – are we in danger of failing? Similar to the phrase “America First”. Mmm…

2. Government of Japan makes aggressive Yen intervention move to hit carry trade based on national pride in Japan and to protect the Yen. This is a very similar dynamic we saw in the beginning of 2007 and portends the danger of another financial crisis we saw in 2008/9.

“It is difficult to ignore the bad effects that these violent and abnormal movements [in currencies] will cause for the nation’s economy”

– Masato Kanda, finance ministry’s top currency official

Yen stats:

– 11% drop against dollar since beginning of year

– Volatility over the weekend of 2% swings highly unusual for major currency

3. Commodity prices are starting to take off again

Like the Yen BOJ issue, the recent price spikes in all commodities is very similar to what we saw in 2008. Additionally, inflation is not cooling as expected. It remains stubbornly high (4%) vs. the planned inflation of the Fed (2%). One reason for this is housing remains at an near all time high both for purchase and for rent.

Source: IMF Primary Commodity Prices. Note: 2016=100

4. Housing prices remain at all-time highs both in rental rates and price

WSJ: Wall Street has spent billions buying homes

WHAT TO DO?

We talk about solutions.

We talk about the Storehouse strategy.

We also talk about practical preparation steps you can take (lending as investment, cash, metals, land).

Background Discussions:

Banking Crisis March 2023
Banking Crisis Over? May 2023
Pennies on the Dollar? August 2023

Roundtable Discussion

Important Terms to Understand

– Federal Reserve System aka “The Fed” – Was commissioned by Congress in 1913. The Fed acts as the US “Central Bank”, but does its operations via 12 regional Fed Reserve banks. Run by the “Board of Governors”, who’s members are appointed by the President and confirmed by the Senate. 

– Federal Reserve Banks – 12 private regional banks (not part of the US government) that is owned by its member banks. All US Treasury (part of the US Government) activity that relates to printing and coining money, does so as “Federal Reserve Notes” (a debt instrument). Regulates US Commercial banks, but also secondarily regulates all other banks, thrifts, or credit unions, whether state or federally chartered. Any depository institution is ultimately regulated by “The Fed”.

– FDIC – Federal Depository Insurance Corporation (US Government Corporation) established as part of Glass-Stegal act of 1933

– NCUA – National Credit Union Association – regulates Federal Credit Unions (US Government entity)

– NCUIF – National Credit Union Insurance Fund – like the FDIC for credit unions

– Credit Union – “affinity” banks that are either State or Federally regulated and are member owned (cooperatives)

– State Chartered Bank

– Thrift / Savings and Loan – mortgage banks regulated through the OCC

– OCC – Office of the Comptroller of the Currency (part of UST that regulates banks)

– OTS – Office of Thrift Supervision (government agency regulating thrifts)

– Non-Banks – Finance companies that loan money usually funded through the capital markets  (Wall Street) and are not regulated as banks because they do not take deposits which are insured

– Insured deposits – all deposits of traditional banks are insured through one agency or another 

– Loan underwriting standards – all loans of traditional banks must be written according to the underwriting standards of the banks regulator, ultimately the Fed

***Key takeaway – any “bank” in the US that takes deposits, and separately makes loans based on its own decisions is ultimately regulated under The Federal Reserve System, whether directly or indirectly.

Current risks to the US Banking System

– The inherent 10-1 leverage built into our fractional reserve banking system means that if the value of the bank’s loan portfolio goes down by roughly 10%, the bank becomes insolvent.

– Commercial lending exposure to commercial real estate. CRE has steeply declined in value since offices became less occupied during and post COVID-19 with the work-at-home and work-remote trend. While some returning to the office has lessened vacancy rates, there has been an unforeseen step-wise change in demand, which has not snapped back, which now has put loans made to various office buildings at risk of default post any further governmental COVID relief/stimulus monies. Read article here: Mezzanine Lending – Commercial Real Estate in Trouble and here: US Commercial Real Estate Weakness

– Electronic transfers causing runs on the banks – See Fed Now discussion and Banking Crisis discussion

– Interest rate exposure – See Banking Crisis Over discussion

– Exposure to the US Dollar which is a fiat-currency (nothing backing it) – See Break-Away Bridges discussion

Prophetic words about the US Banking / Financial System

David Wilkerson’s “Bank Holiday” Prophecy
David Wilkerson’s “America’s Last Call” book

John Paul Jackson’s Coming Perfect Storm prophecy
JPJ Prophetic Headlines – “Too Big to Fail Fails” – B of A Nationalized; “Funds will Dry Up” – US Govt / Fed

Rick Joyner / Bob Jones Economic Earthquake Prophecy
Bob Jones Perfect Storm

John Mulinde – The Foundations Have Been Broken

What’s the answer? How do we prepare?

Why don’t we just create a Christian Bank or Credit Union?

The Storehouse Vision

Not your usual “bank”

Here is an AI generated summary of our website that I thought was actually pretty good:

Storehouse: A Christian Community Economic Network

• The Storehouse vision aims to create local Christian communities that facilitate economic relationships based on biblical principles.
• It involves forming a “Storehouse Community” where members exchange goods and services, support each other, and invest in local businesses, reducing reliance on traditional banks and financial markets.
• The community promotes “in-sourcing” by encouraging local production and exchange, and establishes a “savings club” to lend to those in need and support Kingdom initiatives.
• Coming out of Babylon and divorcing Baal are seen as forms of repentance, freeing individuals from cultural distractions and temptations that hinder Kingdom principles.
• The Storehouse Community acts as a “bank” for its members, providing non-recourse, no-interest loans to help people in financial need and promote economic productivity.

Roundtable Discussion – Bank of Japan ends negative rates and Francis Scott Key bridge collapses

Bank of Japan

We have our eye on this latest BOJ rate hike which happened last week and ended the last central bank to scrap negative yields (institutions get paid interest to borrow). Why? Because it portends a setup like we had in 2007, whereby the BOJ raises rates prematurely again. Because the Yen carry trade is still “on” in the hedge fund macro world.

Bloomberg article: What the End of Japan’s Negative Interest Rates Means

Background Discussions:

Watch Japan
Watch BOJ
Japanese Earthquake 2024

A Sign?

Breaking News – Francis Scott Key bridge collapses in Baltimore

Container ship name: Dali (named after Salvador Dali, the Spanish surrealism artist)

The ship belongs to Singapore-based Grace Ocean Pte Ltd, which is owned by a Hong Kong group, and was carrying containers on behalf of Danish shipping giant Maersk. Synergy Marine, the Singapore company that operates the Dali.

Francis Scott Key – Author of our national anthem – The Star Spangled Banner

Prophetic Take

Bridge collapse

The Civil War was fought in the state of Maryland. The FSK bridge actually bridges the North to the South in so far as slavery was concerned (South Maryland held the most slaves and was the most sympathetic toward the Confederacy).

The container ship represents commerce and consumerism and economy. Is it a sign of that our outsized consumerism and 24/7 greed for increased commerce lead to collapsing the fragile unity we have today among races, religions and political ideology in the USA?

The fragility of things…apparently dirty fuel was what caused the engines of the container ship to fail, and thus the propulsion and electricity to also fail. The margins for error both in the ship size, and in the bridge construction ended up in complete collapse of the bridge. It reminds me of the World Trade towers collapsing in NYC – how the total collapse was surprising. In the same way, you can see through video how the entire span of the bridge failed when the ship struct just one stanchion of the bridge. Fragile. Likewise, is our peace and unity between parties and factions very fragile and can be brought down by the smallest of calamities? And if we had a big fissure, how bad could it get?

Is this bridge collapsing a sign of coming civil war?

Rick Joyner had a dream about a coming second civil war in the US. You can read it here: https://a.co/d/aAqW6iH. One of the things mentioned on page 36 is this:

In 1987, I was shown in a prophetic experience that we had been turning to the left as a nation for a long time. I was also shown a coming sharp turn to the left. I was not shown whether this was good or bad, just that it would happen. I was then shown a reaction to this and a turn back to the right. I saw that we would never again make a sharp turn to the left, but there was a danger we would go too far to the right.

Rick Joyner, Second American Revolutionary War, page 36

In fact, Fort Carroll – a hexagonal fort build between 1848-1852 was built by none other than Robert E. Lee, then a Colonel in the US Army.

Dali

Ship named after Salvador Dali the surrealism artist – are we in a period of surrealism when it comes to economic strength? Market highs? Optimism is low, but yet everything is at peak valuations – real estate, bitcoin, gold, stocks, etc.

Dali is a hunting goddess in Georgian mythology. Are we in the age of the gods (Johnathan Cahn’s book – Return of the gods) – which is to say the worship of false gods? Are we in the age of the hunter to bring God’s people back to Him through times of difficulty (and God’s people back to Israel according to Jeremiah 16:16)?

Jeremiah Johnson’s Prophetic Take:

The body of Christ is called to be “bridge builders” according to John 17:

I in them, and You in Me; that they may be made perfect in one, and that the world may know that You have sent Me, and have loved them as You have loved Me.

John 17:23

And a house divided cannot stand…

Every kingdom divided against itself is brought to desolation, and every city or house divided against itself will not stand

Matthew 12:25

Roundtable Discussion – AI

Daniel, shut up the words, and seal the book until the time of the end;
many shall run to and fro, and knowledge shall increase

Daniel 12:4

What is Artificial Intelligence exactly? And what is all the hubbub about anyway?

We discuss it from a technology standpoint.
We discuss the hype.
We discuss the valuations of AI stocks.
We discuss the moral and ethical questions.

We marveled at our own magnificence as we gave birth to AI

– Morpheus

The Tech

Machine Learning

Neural Networks

Generative AI vs. Text Completion AI

Facial Recognition and Biometrics

AI Products

ChatGPT – Openai – Microsoft

Grok – Musk X

Gemini – Google

The Hype

WSJ Heard on the Street : AI

One quarter of the US stock market value is now concentrated in these 7 tech stocks – all chasing the “AI” story

AI-Fueled Rally Continues As Nvidia, Bitcoin, S&P 500 Hit New Records!

Recent Bitcoin Rally – AI driven?

NVIDIA represented 15% (2% out of 13% increase) of the gains of the entire US stock market last year

Nvidia investors fawn over the artificial intelligence chip designer’s growth story

Nvidia closes above $2tn for the first time to lead AI-fuelled market rally

The richest 1% of people amassed almost two-thirds of new wealth created in the last two years – Oxfam

And how about “Big Brother”?

Is AI in the Bible? Will AI be part of a global anti-Christ beast government?

Our own Guerney Hunt joins us, who is a technologist for IBM. IBM works on some of the most advanced computing and software on the planet, so it will be great to get his perspective on AI. You may recall his contributions on our Bitcoin discussion and on the Mully movie discussion from a few years back.

Scriptures referenced on the call:

Mark of the Beast

He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name

Revelation 13:16-17

Worship Adonai

The Lord upholds all who fall,
And raises up all who are bowed down.
The eyes of all look expectantly to You,
And You give them their food in due season.
You open Your hand
And satisfy the desire of every living thing.
The Lord is righteous in all His ways,
Gracious in all His works.

Psalm 145:14-21

Meeting Face-to-Face Important

And let us consider one another in order to stir up love and good works, not forsaking the assembling of ourselves together, as is the manner of some, but exhorting one another, and so much the more as you see the Day approaching

Hebrews 10:24-25

Ear Test Words

Does not the ear test words
And the mouth taste its food?

Job 12:11

Also Mentioned in the discussion…

David Hernandez Ministries (Texas)

Encounter Podcast