The Trumpet: Financial Reckoning – Here’s What You Can Do Right Now

Timothy Oostendarp of The Trumpet has an article up on the many people facing difficult financial times as a result of the pandemic and some basic things that you can do to regain your financial footing and stay sane – Financial Reckoning Now Confronts Millions

Whether you live in America or somewhere else, right now the biggest problem you’re likely facing is paying your monthly bills. The forced shutdown of the global economy has pulverized national and family budgets. In Canada, it is reported that federal unemployment insurance claims have rocketed to Great Depression levels.

Ding-dong, Dorothy, the economy is dead.

Last month, many Americans were living paycheck-to-paycheck. This month has seen that paycheck taken away.

There is no sense citing endless statistics. Tens of millions of Americans can’t even handle a $400 emergency. Banks and credit card companies are preparing for a tsunami of payment deferrals and loan defaults as consumers buckle.

Like boozy wastrels drunk on prosperity, millions have squandered precious time and money in the face of mounting evidence a crash was coming. Instead of having savings for a rainy day, Americans are now facing a financial reckoning that’s going to burn. The toll isn’t only financial; it’s physical, emotional and spiritual. And authorities are seeing a corresponding spike in suicides and substance and domestic abuse.

The fiscal grim reaper is here. In all fairness, he did send us many notices of his impending arrival, like the Great Recession in the late 2000s. That financial bloodbath was as long as Wall Street and up to the businessman’s belt.

Since that tender time, federal reserve banks have made themselves hoarse yelling into deaf ears. They have repeatedly warned about gross government and corporate debt, the perils of endless quantitive easing (printing money), and escalating household debt.

More than 10 long years have lapsed since the Great Recession. What did we learn? What is this latest economic jolt teaching us? We learned that we are thoroughly addicted to materialism. We learned that decadence defines our daily living. We learned we lack character. Even the poor among us live like feudal kings, yet millions are now beyond broke.

Prosperity is bankrupting us in more ways than we think. If you are suffering financially, the good news is that, if you are willing to correct your living, there is a little time left to set your financial house in order.

Here is what you can do right now.

The first step is to understand God has set basic financial laws into motion. When those laws are broken, penalties result. The penalty is a sign that laws are being broken—and signs are meant to be heeded! God has put penalties in place for broken law to help correct our thinking and our living. When God’s laws are obeyed, great material and spiritual blessings result—including freedom from anxiety, worry and fear.

When someone becomes physically sick with a cold or the flu, the body begins to immediately discharge poisons through mucus production, the eliminative system and by rest. That is the human body trying to bring itself back into alignment with God’s laws governing health. Likewise, financial poison comes in the form of debt, budget deficits (not enough money to cover your bills), and burdensome interest payments. These poisons must be ejected! This is the second step!

Without jeopardizing your health or that of your family, reduce your standard of living to pay off your debts and balance your budget as soon as possible! This means doing everything practically possible to avoid consumer and business debt. A well-considered loan will produce above its principle and interest—meaning it should profit! The wise earn interest while the foolish pay it.

Right now, many governments are offering no-strings-attached money to help small businesses and citizens. If you need to, you might have to take advantage of the assistance your taxes have already helped to pay for or will help to pay for later. God is not against accepting help in time of need. In certain well-advised circumstances, it is the prudent thing to do. There is no shame in taking a handout in a time of need—especially when we are determined to go on and use that help to correct the cause of the problem.

Consider seeking wise counsel before taking on long-term debt or loans for what could be a short-term employment problem. A bad loan will be a poison, which will seriously aggravate your financial problems! Get creative—use drive and initiative. These are some of the laws of personal and financial success. Talk to a rich uncle who might be willing to give you a hand (not handout) during these difficult times. Offer to work for the help. Take odd jobs doing handiwork. The point is, make your opportunities.

The next principle is to set a budget and track your spending. Herein we see another basic law of God: Don’t spend more than you make. Budget! Our financial problems don’t usually revolve around not having enough money but not managing it properly. Slipshod financial management is a reflection of a breakdown in character. We all have to learn to manage our prosperity—especially those who haven’t learned the first principle of working hard.

Examine your attitude toward materialism. God’s law forbids lust and coveting, but coveting drives the world economy. Is it driving your spending? God’s Word says a person trying to get the best of his employer or trying to get riches will not prosper in the end. It often leads to owning substandard possessions and always leads to substandard character.

We all must come to learn the first lesson of life: Seek God’s Kingdom and His character above riches. That is the only way to financial prosperity. Strive to better yourself in an effort to give to your employer, your family and to God—but also strive to learn to be content in your circumstances.

Get creative. Housing, transportation and food are major line items in personal budgets. Excessive car loans that stretch into five to seven years are financial folly. Maybe it’s time to evaluate cutting these areas without jeopardizing your ability to work, and without jeopardizing your health and your family’s well-being.

Another financial law of success is persistence. Don’t throw in the towel! If you’ve recently been laid off, realize many hundreds of thousands have been laid off too. Most of them will begin to waste time. Don’t waste time.

Sloth is stealing, even if it’s only stealing time that can’t be recovered. Put your time to profitable use. Stay productive. Read a good book; improve your skills; refinish some old furniture; play games with your children; go for a walk; breathe in fresh air.

“Chomp at the bit” to get back to work. A robust work ethic is at the heart of building righteous character. Begin calling prospective employers. Line up interviews. Make a job out of getting a job.

This can be a time to advance your career! Employers will start hiring again. Make sure your name is at the top of the list. God is a producer. He expects the same from us. He doesn’t waste a moment or an opportunity. Hiring may be at a momentary freeze, but you don’t have to be frozen in time or frozen in one spot. Be zealous and work hard!

Next, when you get back to a solid financial footing, start saving for a rainy day. There are two types of savings to aim for: operational savings and reserve savings. Operational savings are for emergency repairs and other out-of-the-blue expenses. Reserve savings should equal three times your monthly net income—or at least enough to cover your expenses for three months. If need be, put your budget on a diet, because austerity may be the order of the day to achieve the results you need. The old saying applies: Make hay while the sun shines. Time is fast running out.

When tragedy strikes this world, God is often accused of loafing on the job. Mankind shakes his collective fist at God. He is accused of being heartless, unwilling to lend humanity a helping hand. God gets blamed for nearly all tragedy, pain and suffering. But if He were to stop you from chasing your pleasures that lead to such destruction, you’d soon accuse Him of interfering in your life. When the tragedy strikes, who is to blame? We can’t have it both ways.

Related:

Motley Fool: What to Do If Coronavirus Cuts Your Income

CNBC: How to Build a Cash Reserve If Coronavirus Causes You to Miss Work

USA Today: How to pay the bills during the coronavirus pandemic

Fox: Coronavirus financial concerns: What to do if you can’t pay your bills

Liberty Blitzkrieg: Monetary Looting

Michael Krieger of Liberty Blitzkrieg has written this article about the corrupt and predatory state of our financial system and Federal Reserve banking system – Monetary Looting.

The United States has historically bragged about its free and transparent markets. But what the Fed is doing today is pulling a dark curtain around the financing of this so-called free and transparent market. The public has no idea which Wall Street firms have received this $3 trillion or why they can’t borrow it elsewhere. This kind of obfuscation by the Federal Reserve could actually stimulate distrust in the U.S. banking system. The Fed admitted as much in its most recent Federal Open Market Committee (FOMC) minutes, writing that participation in the Fed’s loan program “could become stigmatized.”

Wall Street on Parade: Is the Fed’s $3 Trillion in Loans to Trading Houses on Wall Street Legal?

The business model of Wall Street is fraud.
– Bernie Sanders

Financial services as currently structured is the most pernicious, predatory and corrupt industry on earth. Moreover, it’s the deliberately complex and opaque nature of the industry which then limits public debate when some problem arises and governments and central banks are called upon to take emergency measures to “save the system,” which is just a euphemism for enormous sums of corporate welfare being funneled to people and institutions who couldn’t survive otherwise.

It is systemic looting on a massive scale and the primary patrons of this ongoing and seemingly endless scheme are central banks. In the U.S. this means the Federal Reserve, which recently came back into the “market” with enormous new interventions in both the repo market and via renewed balance sheet expansion. I’ve read many of the smart takes on the repo crisis and still don’t feel confident I know precisely what’s going on. This is intentional.

One of the main reasons big finance is able to pull off scam after scam in plain sight relates to the complexity, opacity and esoteric jargon associated with the industry. Repo is a perfect example. The market had a spasm in September and the Fed immediately rushed in with billions to bring the rate down without offering any transparency or a credible explanation of what was going on. Meanwhile, as the crisis continued over subsequent months and the central bank response grew larger and larger, we actually seem to be learning less with each passing day.

Instead of providing the public with the transparency it deserves, Fed officials run around pretending to be financial surgeons called in to perform an unexpected emergency operation on a patient after a freak accident. In reality, central banks are merely pumping billions into an already dead body while enriching connected and powerful individuals and institutions in the process. They know exactly what they’re doing and we need to stop pretending otherwise.

While I’m grateful to those who’ve spent time trying to thoughtfully explain the mechanics of the repo crisis and why it happened, I think that’s a sideshow at this point since nobody who really knows what’s going on is talking. Instead, we should focus on the absurd and unconscionable lack of transparency with regard to Federal Reserve actions. As far as I know, we have no idea which parties are taking up this expanded central bank funding. Think about how criminally insane that is. We have no idea if it’s driven by a troubled institution like Deutsche Bank, hedge funds with over-leveraged trades, treasury issuance, a combination of these factors, or something else.

We don’t know because they don’t want us to know, and they don’t want us to know because they don’t want the public thinking or talking about it. It’s at times like these when the totalitarian nature of central banking comes into crystal clear focus. What we have is government via unelected, unaccountable bankers. It’s the opposite of self-government, and understanding this simple fact blows apart all the myths about our so-called democracy and freedom. Nothing of the sort exists in reality, and when push comes to shove, you’re just a peasant living in an imperial oligarchy…

Click here to read the entire article at Liberty Blitzkrieg.

Kittitas County Democrats Settle AG Campaign Finance Lawsuit

From We The Governed,

Kittitas County Democrats settle AG campaign finance lawsuit for $28k in fines and penalties.

Kittitas County Democratic Party State Committee members (source: Facebook)
Washington State Attorney General Bob Ferguson

Last week, the Kittitas County Democrats settled a lawsuit filed last July by the Washington State Attorney General’s office for a wide variety of campaign finance violations.  The final settlement included payment for $6,740 in AG attorney fees and costs, forfeiture of $5,217 of illegal anonymous contributions, and a fine of $15,825 (with half suspended for good behavior for the next few years).  It also appears that a previously suspended $400 fine imposed by the Public Disclosure Commission was forced to be paid last year by these complaints and this lawsuit since the Kittitas County Democrats were still not complying with the state’s campaign finance laws (see previous PDC fine/letter linked here, and Reported payment of suspended portion of that fine linked here)

Click here to continue reading at We The Governed.

Ben Yu: Cryptocurrency 101

Over at Medium.com, Ben Yu has written a cryptocurrency primer called Cryptocurrency 101. It is a long read, but it has much good history and other background information to enhance your understanding of the reason for and value of cryptocurrencies.

Bitcoin was designed, essentially, as a better ‘digital gold’. It incorporates all of the best elements of gold — its inherent scarcity and decentralized nature — and then solves all the shortcomings of gold, in allowing it to be globally transactable in precise denominations extremely quickly.

How does it do this? In short, by emulating gold’s production digitally. Gold is physically mined out of the ground. Bitcoin is also ‘mined’, but digitally. The production of bitcoin is controlled by code that dictates you must find a specific answer to a given problem in order to unlock new bitcoins.

In technical terms, bitcoin utilizes the same proof-of-work system that Hashcash devised in 1997. This system dictates that one must find an input that when hashed, creates an output with a specific number of preceding zeros, among a few other specific requirements.

This is where the ‘crypto’, incidentally, in cryptocurrency comes from. Cryptographic hash functions are fundamentally necessary for the functioning of bitcoin and other cryptocurrencies, as they are one-way functions. One-way functions work such that it is easy to calculate an output given an input, but near impossible to calculate the original input given the output. Hence, cryptographic one-way hash functions enable bitcoin’s proof of work system, as it ensures that it is nigh-impossible for someone to just see the output required to unlock new bitcoins, and calculate in reverse the input that created that output.

Read the entire article by clicking here