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Tag: finance

  • Credit Score

    Credit Score

    Discussion – Credit Scoring Systems with the Rhode Island Storehouse Team

    The FICO credit score is used for all sorts of purposes nowadays. It is checked when you apply for a job. It is checked by governments and municipalities for appointments and civil service positions. By the police during investigations even private detectives. It is checked when you rent a house or apartment. It is checked when you apply for any bank or finance company credit. This is far beyond the original envisaged purpose. History of the FICO Score.

    So, is it a good thing or a bad thing? Should we endeavour to increase our credit score to get what we want from those who check it, or is that a mistake? We discuss.

    This is what we call “mission creep”. Or, we could say, perhaps this is how “the frog got boiled in the kettle” slowly but surely ?

    We also discuss the credit bureaus and credit history. How it is created. How difficult it is to get an error or misunderstanding straightened out.

    In a partial acknowledgement of how unfair credit scoring can become, and how even the sick and poor get left out in the cold, the government recently changed the regulations to remove all medical debt from people’s credit score

    Credit Score Apps

    So what about the numerous apps that are not available for people to obsessively check their credit score, but attempt to improve it by clicking on buttons like a video game!

    Boiling it all Down

    So, what about all of this considered in the totality of society? Sure, capitalism and profits benefit from algorithms and statistics – even turning people into numbers. But is that a good thing? A healthy thing? A biblical thing?

    Thesis

    Credit Scoring and relation-less lending enslaves people.

    Credit Scoring is a way people are being conditioned to take the “mark of the beast” Rev 13:17

    God’s Perspective: People should be relationally evaluated on the content of their character in the communities they live and are a part of. If they need financial help, we should work with them and give help. It can be more empowering to have someone borrow and repay than just giving gifts only.

    Strategic Lie

    Your credit score is a reflection of your character.

    Truth

    Your credit score reveals how good of a slave to debt you are.

    More Truth

    Proverbs 22:7 The borrower is the slave of the lender

    Psalm 37:21 The wicked break their promises, borrowing money but never paying it back

    Deut 15:1 At the end of every seventh year, cancel all debts

    Ezekiel 18:7 The righteous does not oppress anyone, but returns what he took in pledge for a loan and does not lend to them at interest or take a profit from the poor

    The Twisted Truth

    If you can’t pay back because you ran out of money you are wicked

    Scriptures on Predatory Lending

    My people, your leaders are misleading you, so that you do not know which way to turn. Moneylenders oppress my people, and their creditors cheat them

    Isaiah 3:12 

    Nehemiah 5:1-12 Now the men and their wives raised a great outcry against their fellow Jews. Some were saying, “We and our sons and daughters are numerous; in order for us to eat and stay alive, we must get grain.” Others were saying, “We are mortgaging our fields, our vineyards and our homes to get grain during the famine.” Still others were saying, “We have had to borrow money to pay the king’s tax on our fields and vineyards. Although we are of the same flesh and blood as our fellow Jews and though our children are as good as theirs, yet we have to subject our sons and daughters to slavery. Some of our daughters have already been enslaved, but we are powerless, because our fields and our vineyards belong to others.” When I heard their outcry and these charges, I was very angry. I pondered them in my mind and then accused the nobles and officials. I told them, “You are charging your own people interest!” So I called together a large meeting to deal with them and said: “As far as possible, we have bought back our fellow Jews who were sold to the Gentiles. Now you are selling your own people, only for them to be sold back to us!” They kept quiet, because they could find nothing to say. So I continued, “What you are doing is not right. Shouldn’t you walk in the fear of our God to avoid the reproach of our Gentile enemies? I and my brothers and my men are also lending the people money and grain. But let us stop charging interest! Give back to them immediately their fields, vineyards, olive groves and houses, and also the interest you are charging them—one percent of the money, grain, new wine and olive oil.” “We will give it back,” they said. “And we will not demand anything more from them. We will do as you say.”

    We discuss. We share testimony. We evaluate. We pray.

  • Debt Problem

    Debt Problem

    Discussion – Government Debt Problem Globally

    As we focus on the Storehouse Vision and establishing Cities of Refuge (part of which is in preparation for future coming economic and political storms) we know the scripture says: “everything that can be shaken, will be shaken” (Hebrews 12:27). We also know what happens in the end-times leading up to Jesus’ return is recorded in the book of Revelation. It includes massive economic disruption, scarcity, famine, even the fall of global trade (Rev 6 + 18) and then the rise of a global system of control, and without pledging allegiance to this “beast” people won’t be able to “buy or sell” (Rev 13:17). Where we are on the end-times timeline is often debated, but what we do know is that these things are close, given the reestablishment of Israel in 1948. We also know these economic prophecies haven’t yet been fulfilled on the world stage, but they are coming as sure as the scriptures say. And are likely coming soon

    Background

    How Countries Go Broke

    Link to the Book (free online through Linked In)

    Ray Dalio is about to release a book (September 2025) that caught my attention. It explains – based on his analysis – that the US and the world is at risk for a catastrophic “de-leveraging” event within 3 years time if governments don’t radically change their taxing and spending (especially the US). Such an “80 year” event is at least on the levels of 1930s global depression and destruction of various forms of money (the German Papiermark’s failure during the Weimar republic was one). These events historically have included the central bank printing too much money and losing the position of the world’s reserve currency, which would make it doubly bad for the USA.

    US Debt Problem

    Importantly, Dalio points out in the book that the level of global debt in absolute terms and in relative terms (% of GDP) are at unprecedented levels, so that makes it even more unpredictable of how big the “big one” will ultimately be.

    In essence, Ray is saying unless we get our current projected deficit down from 7.5% of GDP to something like 3% GDP, we will enter the danger zone of where the government is issuing new debt just to service the interest on the old debt. He describes this as a no-turning back moment, because the debt and the money printing that goes along with it just spirals out of control from there. And as such, the risk for an economic “heart attack” goes way up. Again, we are 3 years away from that unless we radically change.

    Department of Governmental Efficiency  

    What about DOGE? Can DOGE and Elon Musk save the day?

    Maybe. But not necessarily. DOGE is hoping for an at best amount of annual cuts of cost to be $1Tn per year. That would get us to maybe a deficit of $1Tn, which is 3-4% of GDP. However, it is likely, many of these savings will be one time, therefore going forward annually it will likely be less. BUT – and this is a big BUT, President Trump has outlined he wants to repurpose the savings for other spending priorities. AND then the plan is ALSO to extend the tax-cuts (costs maybe $0.4Tn annually net of GDP pickup). So, net-net will DOGE reduce the deficit much? Maybe not much. We will see.

    Ray Dalio

    image.png

    Ray Dalio, found of Bridgewater

    Who is Ray Dalio? He is the founder of the biggest hedge fund ever to exist, known as Bridgewater Capital, right here in Westport, CT. Ray cut his teeth in fixed income (bonds) and global-macro (currencies) investing . So, he knows a thing or two about governments and debt, the history of modern finance. failure of currencies, etc.

    Trump Dump?

    We had the Trump Bump when President Trump was elected. Now those gains have been given back in a “Trump Dump” or correction (down 10%) given uncertainty of the tariffs’ impact on the economy and inflation.

    Screenshot_20250311_060123_WSJ.jpg

    We discuss the debt problem in the context of the recent market route, described here as “Wall Street Fears Trump Will Wreck the Soft Landing“. Still others are writing about how President Trump’s America First policy risks undoing the world order post-WWII and therefore post 1944 Bretton-Woods dollar dominance: Has American Exceptionalism Come to An End?

    Referenced in Discussion

    Bill Gross, Pimco declares Treasuries headed for default:

    World’s largest bond investor Pimco dumps US Treasuries

    Warren Buffett:

    Warren Buffett: Tariffs are ‘an act of war’

    Berkshire Hathaway long cash, bearish on housing:

    Warren Buffett’s Berkshire Hathaway sounds the alarm on housing market

    David Stockman, Budget Director under Reagan

    Resigned the administration in 1985 protesting the lack of will to cut spending and the deficit…

  • Aaron Reeves Debt Testimony

    Aaron Reeves Debt Testimony

    reeves.jpeg
    Aaron and Katie Reeves

    Testimony – Aaron Reeves Coming Out of Debt Slavery

    Aaron served as a YWAM base leader in Boston for over a decade. He is a worship leader. And we have labored together in the New England harvest fields as part of NE Alliance and 10 Days of Prayer. He is a faithful warrior!

    ywamboston.org
    bostonworshiphouse.org

    Aaron is now transitioning into the marketplace, starting a newco called North East Audio. His company works as sound engineers and consultants for churches and others to serve their audio needs. We could even call it a New Breed of Audio company…

    https://northeastaudio.co/

    Better yet, the Reeves have just had their sixth child… Baby Quinn Declan! Congratulations man!!

    The journey with the NECAP and Aaron started with a truck. Yes, the desire and need for a work truck. Originally envisioned, Aaron was asking God for a Toyota Tundra if I remember correctly. But that didn’t come together, so the opportunity came to buy back his old Honda Element, which served well as a work + family vehicle instead.

    Testimony of Coming out of Debt

    Hear how the New England Storehouse (aka the N.E.C.A.P.) helped Aaron and his family get out of debt. They had credit card debt and a car loan. We prayed, gave testimony, and advised them on the possibility of debt forgiveness and debt reduction. You probably are aware that credit card cos go for broke in charging fees and interest until you drown. They don’t really have the Reeves’ best interest in mind. (Reeves who? they better pay up!)

    Citizens Visa, $6800 outstanding balance

    Similarly, auto loan companies and banks have the repo man at the ready if they ever miss a car payment. The tow truck is around the corner ready to take away the family truckster.

    2016 Honda Odyssey 110,000 miles $4300 outstanding

    The Plan

    We refinanced the two loans and helped the Reeves pay them down. How? The NE Storehouse (NECAP) has a fund to help seed such projects. We encouraged Aaron to negotiate with his creditors to settle the credit card debt and pay off the car loan. After several rounds of back and forth, people through the NECAP refinanced the balances with a no-interest (Deut 23:19), non-recourse (Ezekiel 18:7) loan package, then further reduced by any gifts. That’s right! A loan like Jesus said to do it in the bible (Matt 5:42). Not the way the world does it.

    As part of helping the Reeves, they committed to cut up the credit cards and not go back to ‘Egypt’ with respect to CC debt. They also have no interest in ever getting another traditional car loan. They want to become the lender, not the borrower (Deut 28:12-13). They are out of debt slavery (Prov 22:7). We the Church; we the NE Storehouse community (NECAP) helped disciple the Reeves into this vision.

    Result

    Original debt:                      $ 11,100
    Negotiated Discount:          $  4,454
    Payoff with creditors:          $  6,646
    NECAP Gifts:                      $  5,025
    Non-recourse, 0% Loans:   $  1,621

    How did People Participate?

    That’s easy, everyone decided whether they wanted to lend and/or give to the Reeves, and how much. That was combined with the seed capital from the Storehouse Fund. The NECAP community administered the loan(s) receiving payments from the Reeves and crediting the account of whoever lent the Reeves money. For those who gave a gift, they got a tax receipt and a tax deduction. Anyone who later wanted to forgive a loan, would also get a tax deduction. If people wanted to transfer their interest in a loan, that was a possibility as well.

    The Reeves finished paying off the last bit of their NECAP loan just recently Jan 2025! Yey! So they were able to pay off the loan in about a year.

    In fact, remember that original desire for a pickup truck? Well, that too has now been realized in the form of this Chevy Silverado. Paid-in-full. God is good. He gives us the desires of our heart.

    Hear Aaron’s testimony and questions answered about how the Storehouse process worked!

  • Financial Market Update

    Financial Market Update

    Roundtable Discussion

    We discuss what has been unfolding in the financial markets since the end of last year through the election and inauguration cycle.

    If you are interested or have questions about the New Breed of Business perspective on the Stock Market, you can access these 2 previous podcast:

    Five Macro Trends

    1. Trump Bump – Higher Stock Valuations

    Ever heard of “don’t fight the Fed”? Well, we could now say, “don’t fight Trump.” The reasons for the market going higher post election are loosely founded on profit growth optimism of a Trump administration. But the short-term trading reality has more to do with the momentum behind “meme-stock” Trumpian Robinhood investors and the Wall Street Bets – Reddit crowd. Which institutional investors might say: don’t sell/short for fundamental reasons, because the FoMo (Fear of Missing out) crowd-speculation and “going to the moon” hype-train is going to run you over.

    The “Trump Bump”

    Ok, so as fundamental reality started to set-in we saw a market pull back in January. Only to rebound again leading up to the Inauguration.

    Why are valuations difficult at these levels? It’s because the average PE (Price – forward Earnings) ratio of the market is at the top of historical range (roughly 22x for S&P 500). As well as expected earnings growth is quite high year over year for this year and next (roughly 15% expected growth for the entire S&P 500 in 2025 and 14% in 2026).

    Animal Spirits

    John Maynard Keynes’ “Animal Spirits” (The General Theory of Employment, Interest, and Money 1936) are again being quoted with more frequency in the press, because there is no other way of explaining many company’s valuations other than naked greed. Underscoring a new period of “irrational exuberance” to quote former Fed Chair Alan Greenspan.

    Also worth understanding is the “value” of Stocks vs. Bonds. Meaning investing in treasury bonds (according to the chart above) has an identical yield to stocks at these valuations – yet worth noting that treasuries by definition are considered the “risk-free” rate of return. Interpreted: stocks are so expensive right now, there is no additional yield for the additional risk you are taking (future interest payments from the US government are more likely than forecasted future earnings of any given company). As you can see from this chart, the last time this “up-side down” situation happened was when the tech bubble burst in the early 2000s.

    2. Bonds Pointing to Higher Inflation

    Bond sell-off and a yield curve steepening have led to higher mortgage rates and lower expectations of the Fed cutting rates. While the most recent CPI reading came in at expectations, it is still historically high (3.2% core) and we are running into a new reality of high (3%+) inflation which has stubbornly resisted Fed rate hikes (think famously of Paul Volker’s rate hikes to 20% killing inflation in the early 80s). The Fed has continued to state 2% as its inflation goal, but we haven’t seen that since pre-pandemic and no one is offering up any new solutions for how to get it down. Instead it has been we need to wait-and-see.

    As Pres Trump wants to stoke economic growth, watch for renewed calls and saber rattling for Jerome Powell to lower rates. This could backfire into higher inflation, even hyperinflation.

    3. Wildcard of US Tariffs

    Trump is threatening new tariffs on friends (Mexico and Canada) and foes (China). Is he bluffing? No one knows exactly what will happen and when. The financial markets are taking bets…

    Elon Musk wants to buy TikTok, but congress scheduled shutting it down given the China spying threat. But, Pres Trump just issued an executive order suspending enforcement of the ban for 75 days. Is it even possible to override already-passed legislation?

    4. Crypto on a Tear

    Did you know that President Trump created his own crypto currency? Yep. Much like Truth Social taking advantage of his reelection, President Trump, his business empire and his family have harnessed the Trump induced Crypto frenzy by issuing their own “meme-coin.” Smart business move or conflict of interest?

    What a meme-coin you ask? Well, like a “meme-stock”, it is designed for the masses of followers of Trump to “invest” in Trump and Trump’s variant of crypto currency, which essentially has a gold-rush mentality of getting in early. It’s going to the moon because Trump is making crypto great! “$Trump” is the name (lol). Not joking. $Melania is the other.

    This is a bit like “DogeCoin” if you are familiar with it.

    5. The Bank of Japan Factor

    Is this another warning sign of the BOJ potentially raising rates prematurely? Is it global inflation that is neutralizing deflation in Japan? Or is it true economic recovery? We haven’t seen rates this high in Japan since the previous financial crisis 2008.

    Also fueling the drive to raise rates is that the Yen is weakening once more to intervention levels. Read relevant Bloomberg article here.

    We discuss.

    So, what’s the Net Net?

    We are in uncharted territory in terms of debt levels, tariff levels, equities valuation levels and crypto speculation.

    If you believe that President Trump will carry the US economy and financial markets to new and unprecedented heights (a “golden age”), you buy and/or hold stocks and crypto.

    If you believe markets are priced for perfection or are over-hyped, and we are in at best a period of reprieve or at worst might be headed for troubled waters, you “take some money off the table” or sell.

    If you believe more in God’s economy than Babylon’s economy, and you are more interested in helping people than profiting from them – and if you want to advance the Kingdom of God on the earth, consider the Storehouse Vision as an alternative Biblical way of investing to the financial markets and traditional investing.

    And I say to you, make friends for yourselves by unrighteous mammon, that when you fail, they may receive you into an everlasting home. He who is faithful in what is least is faithful also in much; and he who is unjust in what is least is unjust also in much. Therefore if you have not been faithful in the unrighteous mammon, who will commit to your trust the true riches? And if you have not been faithful in what is another man’s, who will give you what is your own?

    Luke 16:9-12

    We are in the works of launching a monthly Storehouse Briefing and Q&A, hosted by the Storehouse leadership team, so Stay Tuned for that.

    The Storehouse Vision is liken to the parable of the Minas, Luke 19…

    The Parable of the Minas

    Now as they heard these things, He spoke another parable, because He was near Jerusalem and because they thought the kingdom of God would appear immediately. Therefore He said: “A certain nobleman went into a far country to receive for himself a kingdom and to return. So he called ten of his servants, delivered to them ten minas, and said to them, ‘Do business till I come.’ But his citizens hated him, and sent a delegation after him, saying, ‘We will not have this man to reign over us.’

    “And so it was that when he returned, having received the kingdom, he then commanded these servants, to whom he had given the money, to be called to him, that he might know how much every man had gained by trading. Then came the first, saying, ‘Master, your mina has earned ten minas.’ And he said to him, ‘Well done, good servant; because you were faithful in a very little, have authority over ten cities.’ And the second came, saying, ‘Master, your mina has earned five minas.’ Likewise he said to him, ‘You also be over five cities.’

    “Then another came, saying, ‘Master, here is your mina, which I have kept put away in a handkerchief. For I feared you, because you are an austere man. You collect what you did not deposit, and reap what you did not sow.’ And he said to him, ‘Out of your own mouth I will judge you, you wicked servant. You knew that I was an austere man, collecting what I did not deposit and reaping what I did not sow. Why then did you not put my money in the bank, that at my coming I might have collected it with interest?’

    “And he said to those who stood by, ‘Take the mina from him, and give it to him who has ten minas.’ (But they said to him, ‘Master, he has ten minas.’) ‘For I say to you, that to everyone who has will be given; and from him who does not have, even what he has will be taken away from him. But bring here those enemies of mine, who did not want me to reign over them, and slay them before me.’ ”

    Luke 19:11-27