Category: ‘Finance’

A Soul Saved, and a New Economics Blog Launched

December 27, 2010 Posted by Rich Vermillion


A Soul Saved, and a New Economics Blog Launched

I know, I know. You all are wondering if I ever sleep, with all the new blogs being launched! However, is now the new home of my ongoing Economic Theology™ project. Please check it out when you get a chance.

Now for an amazingly great note regarding my other new financial website,

I just received this afternoon an email testimony of the FIRST person to be born again from the Gospel presentation on that site entitled, The Supreme Value of Righteousness! In fact, the person did even NOT speak English as a first language!

She wrote within her testimony, “I spent the whole afternoon by reading your website, which, due to my poor English, was a heavy work for me, but now I feel reborn and God bless you for it!!!”

Glory to God! A new sister in Christ!

Obviously, I had written the content of that other website in-part to help Christians understand the best way to approach their finances during this ongoing economic meltdown. However, the most important post on that website is the salvation page! Thus, I reference it often within the main text.

That particular article on righteousness is the most comprehensive Gospel presentation that I have written to date. So let me recommend to all my readers that you take the time to read it, study it, and share it with others.

Souls! THAT is what it is all about, folks! Souls! :-D

Always in Jesus,

-Rich Vermillion



Prosperity vs. Theological Error

July 9, 2009 Posted by Rich Vermillion



Prosperity vs. Theological Error


Yesterday, a question was posted on my Ask Rich page by Tyrone Cain. For my reader’s convenience, I have appended his questions here:

So Rich, if these guys [Kenneth Copeland and his buddies] are shams, what’s in it for them? Do not blessings comes with giving [whether] it be [for] them or someone else? Do you have a better means of giving someone hope? The bible says the destruction of the poor is their poverty (Proverbs 10:15). Is not poverty evil? Paul said we are to be delivered from this present evil world (Galatians 1:4). Is he talking about now or when we die? Is not the gospel the good news in which paul said he is “not ashamed for it is the power of god” and that it leads to salvation; and in the Greek and Hebrew is not salvation more than the born again experience?  Is not the “power” God’s word? Does not the bible state that, “All things are possible to those who believe” (Mark 9:23) and that “God is able to do exceeding and abundantly above all that we can ask or think according to the power that worketh in us” (Ephesians 3:20)? If the Holy Spirit in me bears witness with what these guys are saying according to the Scriptures, what then is the problem? Please help a brother out—not with beating and badgering the prosperity teachers, but with Scriptures that will deliver me from this present evil world [and] give me hope. How [does] a regular Joe like me, according to Scripture, live the abundant life that Jesus died for? Thank you very much sir. Waiting for your reply.

Please note that I took the liberty to do a major edit on his comment for the benefit of my readers. However, you can still see his original post unedited on the Ask Rich page with a link to this reply. In the mean time, here is my reply:


Brother Tyrone,

Thank you for posting your questions, though I must admit that you made it a bit hard for me to decipher with your challenging text usage. Please take it easy on me next time you comment, okay Bro?   :•)

As near as I can tell, you must have read my post How I Know (and Why I Rebuked) Kenneth Copeland and missed the full context of my statements. Let me try to clarify things briefly here within this post, and I will also reference herein other posts where you may obtain even more information about these topics. Along the way, I will try to answer some of the questions you posed in your comment.

Prosperity is Good:

Let me begin by pointing out that you appear to think I am against the biblical precept that God loves to prosper His Own children; I am not. If you glance around this website, you will see numerous other articles written by me regarding economics and finance. Would I be anti-prosperity and have included all of those on my own ministry blog?

Please take a few moments to pay special attention to at least three of my articles: Economics, Gold, and the Word of the Lord part 1 and part 2, and Prophets-Come-Lately (and Their Inept Counsel). Through these you will obtain a better idea of where I am coming from in regards to how so-called “prosperity” is taught nowadays by some, such as Copeland and many of his friends. Several other related posts on this blog) will help you to understand a more full picture of how the Bible explains a person can prosper themselves materially, even in a major recession or depression, such as the world is experiencing now.

Abundant Life Properly Defined:

Regarding your question, “How does a regular Joe like me, according to Scripture, live the abundant life that Jesus died for?” Let me first draw your attention to the proper definition of the “abundant life” to which Jesus was referring. It would seem that you think that His reference to the “abundant life” was about material prosperity. However, that is not what the Bible defines it as:

The thief comes only to steal and kill and destroy; I came that they may have life, and have it abundantly. (John 10:10, NASB)

And He [Jesus] said to them, “Take heed and beware of covetousness, for one’s life does not consist in the abundance of the things he possesses.” (Luke 12:15, NKJV)

For the kingdom of God is not eating and drinking, but righteousness and peace and joy in the Holy Spirit. (Romans 14:17, NASB)

And when He was demanded of the Pharisees, when the kingdom of God should come, He answered them and said, The kingdom of God cometh not with observation: Neither shall they say, Lo here! or, lo there! for, behold, the kingdom of God is within you. (Luke 17:20-21, KJV)

My dear brother, the “abundant life” that Jesus came to give us has nothing to do with material prosperity—except a probable side-effect when a righteous person walks in conformity to the Word of God over time.  The “abundant life” Jesus was talking about is the kingdom of God within a believer, which is defined as “righteousness, peace, and joy in the Holy Spirit.’ The “abundant life” is the same Eternal Life that Jesus came to give us through His death, burial, and resurrection.

Did Paul the apostle have “the abundant life”? Most assuredly, yes. However, consider what is written in the Bible about what Paul preached:

[Paul and Barnabas] preached the good news in that city and won a large number of disciples. Then they returned to Lystra, Iconium and Antioch, strengthening the disciples and encouraging them to remain true to the faith. “We must go through many hardships to enter the kingdom of God,” they said. (Acts 14:21-22, NIV)

Notice that Paul “preached the good news” (i.e. Gospel) but also admonished the new believers that hardships were going to occur as well (e.g. persecution). He did not say, “all your problems are over” because Paul knew firsthand that was certainly not the case:

Are they Hebrews? So am I. Are they Israelites? So am I. Are they the seed of Abraham? So am I. Are they ministers of Christ?—I speak as a fool—I am more: in labors more abundant, in stripes above measure, in prisons more frequently, in deaths often. From the Jews five times I received forty stripes minus one. Three times I was beaten with rods; once I was stoned; three times I was shipwrecked; a night and a day I have been in the deep; in journeys often, in perils of waters, in perils of robbers, in perils of my own countrymen, in perils of the Gentiles, in perils in the city, in perils in the wilderness, in perils in the sea, in perils among false brethren; in weariness and toil, in sleeplessness often, in hunger and thirst, in fastings often, in cold and nakedness—besides the other things, what comes upon me daily: my deep concern for all the churches. (2 Corinthians 11:22-28, NKJV)

Not that I am implying that I was in any personal want, for I have learned how to be content (satisfied to the point where I am not disturbed or disquieted) in whatever state I am. I know how to be abased and live humbly in straitened circumstances, and I know also how to enjoy plenty and live in abundance. I have learned in any and all circumstances the secret of facing every situation, whether well-fed or going hungry, having a sufficiency and enough to spare or going without and being in want. I have strength for all things in Christ Who empowers me [I am ready for anything and equal to anything through Him Who infuses inner strength into me; I am self-sufficient in Christ’s sufficiency]. (Philippians 4:11-13, AMP)

My dear brother, if Paul did not consider earthly comforts and material possessions to be “the abundant life” that Jesus was talking about, why should we? The Lord surely wants to bless His children for He “wishes above all things that we would prosper, and be in health, even as our souls prosper” just as John did for Gaius (3 John 2). He also promises to deliver those who will look to Him for salvation (e.g. Psalm 91). However, the key thing is that believers must prosper first in their souls—with the true abundant life. This should occur before material prosperity, because wealth will ruin the fools (Proverbs 1:32). God is too good a Father to let His kids become “ruined” because of a lack of spiritual maturity regarding material things.

So, Tyrone, your definition needs to be biblically-defined…and not Copeland-defined. The latter will get you into trouble doctrinally and otherwise. This leads me into a discussion/biblical analysis of a few of Copeland’s doctrinal errors…

Copeland’s Theological Errors:

To begin, let me note first that the How I Know (and Why I Rebuked) Kenneth Copeland post you read on was intended to do two things:

1 – To set the record straight about my former association with Copeland. (And again, if I were anti-prosperity, would I have ever associated with him in the first place?)

2 – To draw attention to the project. Therein, I am (over time) detailing more and more of the sins from which Kenneth Copeland and his family need to repent.

Please visit the website for additional context and information, and give special attention to the post thereon entitled, Rev. Hagin’s Previous REBUKE of Kenneth Copeland. Therein, you will find therein that the very “father” of the Word of Faith movement himself previously rebuked Kenneth Copeland (and others) for pushing their “prosperity” teaching to extremes that violated Scripture. In other words, even the “founder” of the so-called “prosperity message” said that Kenneth Copeland and many of the other “prosperity preachers” had gone too far and had gotten into error as a result. Thus, I am simply reiterating Hagin’s point in this regard.

Is There a ‘Prosperity Gospel’?:

Now, with regard to the Gospel itself, I recommend you read my post entitled, The REAL Gospel, here on this very blog. Therein I highlight the essential elements of a true Gospel presentation, which Paul expounded to King Agrippa in Acts 26:20 when he said, “that all men should repent, turn to God, and do works befitting repentance.” You will notice Paul did not mention anything about “God will make you rich!!!!” as being a key element to the Gospel message. Thus, by failing to draw sufficient attention to the “repentance” part of the true Gospel, and by turning their message into a “cotton-candy” diet of sugary fluff, the so-called “prosperity preachers” (such as Copeland) have wandered off into heresy. Again, read The REAL Gospel and you will see better what I am talking about.

With regard to the Greek and Hebrew meanings of the words “salvation” and “saved”—you are partly correct (i.e. correct regarding their meaning, but not with regard to their application). One can certainly point out the fact that these words mean “complete salvation, even from sickness and poverty” (which would be true), especially when teaching people who are already Christians. However, with unbelievers, a preacher would need to maintain a Gospel-presentational context of “after you repent, turn to God, and do works befitting repentance, these are some of the benefits you can expect as well….”. Peter did this in his Gospel presentation in Acts 2:14-46, for example. So to illustrate with a metaphor:

The “dessert” is supposed to come after the main “meal” of a true core Gospel message.

Again, read the Book of Acts and compare what the believers originally preached with what these men propagate today, and you will find there is a significant difference. If they want to call it a “doctrine” (errant as it is), that is one thing. To call it a “Gospel” is quite another. To call the perverted “prosperity preaching” of Copeland and his associates “a form of the Gospel” is as much a heresy as anything else to which Paul was referring in Galatians chapter 1 when he said that such tripe, “is NOT a Gospel” and that such people will be “accursed” for saying that it is. Consequently, this is one of the sins for which I am calling on Copeland to repent (I really do NOT want the guy to go to hell, and I am sure you would agree).

“Prosperity” as a Doctrine:

For prosperity teaching directed toward believers to be biblical (i.e. not calling it a “Gospel” message per se, but simply a doctrine for Christians to learn and apply to their lives), it would also REQUIRE the proper inclusion of teaching about obedience to God, hard work, self-sacrifice, discipline, investment, saving, monetary theology, economics, how to “endure hardship as a good soldier of Jesus Christ” (2 Timothy 2:3), and etc.

The so-called “prosperity teachers” have failed miserably to do this, which was one of the major points Kenneth Hagin made when he rebuked them himself years ago for getting too extreme in their teaching. (Again, see the Hagin article on the website mentioned above.) Thus, their errant teaching is way too isolated even from some other related bible teaching on the subject of making money—not to mention from the subjects related to proper Christian service to the Lord.

Since you mentioned the doctrine of giving in your Ask Rich comment, let me also point out that such doctrine is only one part of the scriptural building blocks to biblical prosperity. Further, such doctrine, to be biblical, would by necessity include giving to the poor, giving to local ministries, and even giving to other believers in need—which doctrinal aspects are generally ignored by Copeland and his friends. (They tend to only emphasize giving to them and/or others within their buddy-group—which happens to be something else Rev. Kenneth E. Hagin tried to correct them about).

However, even when properly taught within its full range of application, the doctrine of giving is most certainly not the “whole enchilada” for obtaining biblical prosperity, as these errant ministers often lead others to believe. There is just more to it than that.

Many of the additional biblical elements of obtaining material prosperity (especially the pragmatic ones) can be found within my ministry blog here at (And I do not ask anyone to give me even “a dime” for having made these teachings available).

Again, I firmly believe that God wants His children to prosper materially. I am just biblically balanced in my understanding of how, why, and when, He would choose to financially enrich His children.

Let’s Name that ‘Spirit':

In regards to your question, “If the Holy Spirit in me bears witness with what these guys are saying according to the Scriptures, what then is the problem?” let me be straight, Bro: The Holy Spirit is not going to contradict Himself. He never disagrees with the Word of God He wrote through the apostles and prophets (see 1 John 5:6-8 for example). Thus, whatever is “bearing witness” to you regarding the errant teaching of these ministers is not the Holy Spirit.

Bro, we all need to develop first and foremost a sound understanding of the Scriptures and judge things by the Word of God, not merely by how we “feel” or whatever “witness” we feel we have about it. We must judge things properly by the Word first, and then the “inward witness” second. Personally, I think it is just your emotions agreeing with what they are teaching; much like a child’s emotions agree that he should eat candy as a replacement for regular food. That is carnal thinking, my brother.

To take this discussion to an even higher level: Let’s keep in mind that the church in Scriptures with the most manifestations of the Spirit of God (the church at Corinth) is also the same church that had the most counterfeit manifestations by demons. Paul had to actually explain to them, “Therefore I make known to you that no one speaking by the Spirit of God says, ‘Jesus is accursed'; and no one can say, ‘Jesus is Lord,’ except by the Holy Spirit.” (1 Corinthians 12:3, NASB) This, sadly, is the state of the Charasmatic church in the USA at large: Too caught up into “manifestations” and what some “spirit” says to have enough sense to know the difference between God’s Holy Spirit and demonic manifestations. This unfortunate fact, coupled with the USA church’s tendency to idolize their “celebrity preachers” (which is bona fide idolatry, and an abomination before God) is why so many “sheep” are being led stray by “wolves” today.

The deficiency is the Charasmatic church at large is the same they had in Corinth: A lack of good theology, and a passion for the Word of God equal to or greater than their passion for spiritual manifestations. This deficiency left the Corinthians susceptible to deception and error, and it is still the chief cause of “Charismania” today within the church (i.e. unbiblical teachings and error, coupled with demonic influences). We need to have a firm biblical foundation in which to build our spiritual “houses” upon, and the church needs to stop building upon “sand.” Jesus said that the “rock” on which to build our foundation is none other than the Word of God alone (see Matthew 7:24-28 and Luke 6:47-49).


In summary, Bro, I am not anti-prosperity—but I am firmly anti-error and anti-heresy. In order to understand my positions on these topics more clearly, you would need to first examine my other writings. In the mean time, forget what your emotions or “witness” is telling you about the teachings of Copeland and his friends (or anyone else, for that matter) and get grounded upon the Word of God. The Word, in its full context, is the only measuring stick we are to trust when measuring the validity of doctrine. Further, all topics of doctrine need to be examined thoroughly in the light of the other biblical doctrines, because they are all mutually dependent upon one another.

Lastly, thanks for participating in the Ask Rich page, and for voicing your concerns/questions. I hope I answered them adequately in brief here—especially within the context of my other referenced posts. I also hope that I have given you much to “chew on” and that, as a result of reading my reply, you will reassess your own walk with the Lord and theology—and then press in to follow Jesus through a balanced spiritual life firmly founded upon the Word of God.

Feel free to post another comment to THIS post if you have a follow up question. That will allow us to have an open discussion thread here on this topic, and it will permit others to join in with their own thoughts as well.

Blessings to you and yours, as you follow Jesus and His Word, with a balanced understanding, and with all your heart.

Always in Jesus,

-Rich Vermillion


Monetary Hyper-Inflation Is Already In Progress (Updated)

February 8, 2009 Posted by Rich Vermillion


Monetary Hyper-Inflation Is Already In Progress

I would say that (regrettably) most of the U.S. and global public is blatantly ignorant of the nature and dangers of “hyper-inflation” when it occurs. Worse yet, most have no idea of its cause. This is a dangerous fact, and let me take just a moment to explain what it is, why it is dangerous, illegal, and thus unbiblical, while utilizing both a very alarming chart and video embed in the process. Then I will link you to a few relevant resources that will give you the “big picture” of what is not just going to happen…but what is already in progress in the U.S. monetary system and global economy.

The Term:

First, hyperinflation (which term does NOT always need the hyphen, and from here on will not include it) is defined by in-part as:

A very high level of inflation that tends to result in the breakdown of the monetary system, the hoarding of goods, and difficulty in achieving real economic growth. The classic case of hyperinflation occurred in Germany during the 1920s. Hyperinflation, which tends to motivate people to own real goods, adversely affects security prices.

However, the above definition—though the common understanding—is VERY misleading. It focuses more on the felt effects or perceived results of monetary hyperinflation and not its true cause. This common “definition” emphasizes the sudden explosion in prices of goods and services as the currency collapses in value. However, a better definition would be:

Hyperinflation: The massive inflation (increase) of the supply (quantity) of a currency by a central bank or government, which debases the per-unit value of the currency.

Or in other words, hyperinflation of the money supply is “turning on the printing presses” and increasing the amount of money in circulation to such a degree, that supply/demand dynamics debase (devalue) each unit of the currency at a hyper-deflationary pace. The more money in circulation, the less each unit of money is worth.

The eventual result of the hyperinflation of the money supply is that the markets begin to realize the flood of currency, and then adapt their prices accordingly. This eventually results in the hyperinflation of prices wherein “street prices” can double and even triple (or more) within a single day for goods and services in the marketplace.   -Rich

As bizzare as the above scenario might sound to the average person unfamiliar with monetary history, the fact is that this very set of circumstances has happened MANY times within the Twentieth Century in localized areas within every major section of the globe (Europe, Asia, the Americas, etc.). It is even occurring NOW in places of the world such as Zimbabwe. (I will give you a few links in a moment to give you some examples.)

Nevertheless, it is a fact that hyperinflation has never occurred before on a GLOBAL scale—but it is about to do so, and the process has already begun.

Broken Laws:

The Bible, of course, condemns such devaluation of the money supply as it causes tremendous harm to both individuals and society as a whole:

You shall not have in your bag true and false weights, a large and a small. (Deuteronomy 25:13, AMP)

Diverse weights are an abomination to the LORD, and dishonest scales are not good. (Proverbs 20:23, NKJV)

Those who are behind this practice are using “false weights” as they perform their crimes. I call these things “crimes” because they are in violation of God’s law, as well as all earthly moral, “natural”, and common laws. In the United States, it is also in violation of the U.S. Constitution—which is the “supreme law of the land”—making it a criminal offense of “constitutional proportions” within that jurisdiction.

I state that they use “false weights” because the ones who get to use the new money FIRST (i.e. those running the proverbial “printing presses”) get to use the money at TODAY’S value. Those who are further down the line find the money has already debased as the market has adjusted to the increase in the money supply, and thus, worth a lower value per unit. So Deuteronomy’s edict above is clearly violated in that the one with “the bag” has “unbalanced” the proverbial scales. There is “one large weight” to the money when they printed the new dollars, and one “small weight” to the dollar’s value once it gets into their hands of the rest of society.

Who are these criminals? Well, you can answer that with another question: Who determines the money supply? Generally, it is the central bankers in cahoots with the government. In the United States, that would be the Federal Reserve (which is really a private institution, and no more a part of the government than the shipping company Federal Express) and the U.S. Federal Government. So then who is to blame for the consequent hyperinflation in prices once the market reacts? The same criminals who caused the monetary supply hyperinflation.

What these criminals do, however is attempt to pass the blame off on the “free market” and “forces beyond their control.” They will even try to convince you that they are trying to “alleviate the crisis” and portray themselves as the proverbial “knights in shinning armor” riding forth to slay the “inflation dragon.” However, the OPPOSITE is actually true—they caused the hyperinflation problem, and its terrible results on society. So their propaganda is no more than “smoke and mirrors” intended to camouflage their guilt and self-serving agendas. The reality is that they used “false weights” for their own profit and gain, and destroyed the U.S. currency in the process.

Most people do not realize how serious a problem this really is. However, when it costs a million dollars or more for a single loaf of bread (as it did in Weimar Germany back in 1923, and does in Zimbabwe today) they will realize only too late what a tragic affect on society the greed of these culprits has caused. But do not fear, my friend, you are NOW being properly forewarned—and that is the first step to becoming properly prepared… so please continue reading…

Honest Scales:

The reality is: In a truly free market, with proper and honest “weights and measures” and a commodity-based monetary system (i.e. physical gold, silver, semi-precious metals like copper, and/or paper-money 100% redeemable for either gold or silver) hyperinflation COULD NOT happen at all:

  • The limitation of the money-supply to only the amounts of PURE gold, silver, and semi-precious metal money in circulation, would prevent monetary hyperinflation. (Note: the pure content of the commodity within the coinage would have to be accurately marked, and protected under penalty of law, as well. Otherwise, the government could debase the currency by debasing the coinage with baser metals and reducing their purity, as the ancient Roman government loved to do. Better yet, keep coinage a private industry and get the government out of the money-business completely, except to ensure accuracy of purity claims by private mints and bullion bankers.) Such limitations prevent the government and central bank from “turning on the printing presses” and oversupplying the monetary system. If commodity-backed and fully redeemable paper money is also used (e.g. a gold or silver “standard” monetary system), then the printing of “paper” is limited by the amount of commodity in the warehouse to back it (as long as the laws are enforced, of course).
  • The enforcement of the law of “honest weights and measures” throughout society would prevent fraud, and thus further protect the markets from criminal activity that could cause shortages and/or inflationary pressures. This l would include the requirement of 100% bank reserves for customer deposits, because banks can artificially inflate even a commodity-backed monetary system through fractional reserve banking. If we require the banks to keep 100% of their depositor’s money in the vault (since a “demand deposit” is always still the property of the depositor) then the banks cannot expand the effective monetary system through “fiduciary media” in the form of bank loans, checks, and “digital” transactions.

(Note: To learn more about how fractional reserve banking can expand the money supply regardless of the actions of government and central banks, download this chapter from Jesus Huerta de Soto’s outstanding book, Money, Bank Credit, and Economic Cycles. The entire book is available in both English and Spanish at For the English version, click “libros” in the left menu, then “money…” when the submenu appears. All chapters are then listed for individual download in PDF format.)

So in effect—though they pass “laws” to try to “legalize” their immoral and unbiblical activities—the actions of the government and central banks are in violation of both God’s laws and all sound legal principles. (Note: Actually, this includes all bankers in general because of credit expansion practices, but most bankers with in society fail to realize the illegal and immoral nature of their daily activities). These criminals “print money” and spend it at the current market value, and thereby increase the money in circulation, which causes the unit value of money to diminish for everyone else in society. Thus, the bankers and government profit at the expense of everyone “lower on the food chain” within the financial system and society as a whole. Thus we can clearly state:

Hyperinflation is a crime propagated upon a nation by its government and bankers (especially the bankers of the central bank), and NOT an accidental or unavoidable consequence of “market forces” as they would have you believe.

Further, the most concerning fact concerning hyperinflation is this: It has already begun in the United States of America, and will soon spread throughout the world. Do you doubt that? Let’s look at the facts…

A Crime in Progress:

Remember in the above definition that hyperinflation begins FIRST in the monetary supply, then when the markets realize what is going on and confidence in the currency erodes, it begins to manifest SECOND in the marketplace by a rapid increase in the prices of goods and services. With that in mind, look at the following chart produced by the St. Louis Federal Reserve concerning the Adjusted Monetary Base (i.e. supply):

Notice the near-prefect vertical line to the far right of the graph. That is the explosion in the money supply since only September, 2008—which exceeds anything that has ever been done in the history of the FED since its inception back in 1913. Also, do you notice any similarity between the above monetary-supply chart and the following monetary-supply chart from the most infamous hyperinflation of the Twentieth Century—Weimar Germany in the 1920s?


To put the above chart into an understandable light, by late 1923 it took 200 BILLION (with a “B”) German marks to buy a single loaf of bread at the bakery.

Since the monetary supply has ALREADY begun to hyperinflate, it is only a matter of time before the markets loose confidence in the U.S. dollar and prices begin to hyperinflate as well.

This is a short-fuse time-bomb ticking within the U.S. and global economy…and about to explode. Moreover, the U.S. government and Federal Reserve (and the individuals running both) are FULLY to blame.

More Research:

Now for more clarity regarding this topic, I recommend the following links where you can find additional data:

Be informed, avail yourself also of the data within the right-most Financial Column found on every page of this blog, and do NOT be afraid. Rather, keep in mind the following VERY important truth:

This is an economic time for the properly informed and positioned to PROFIT beyond their wildest imaginations, while those who stumble forward without taking these issues to heart will suffer tremendously.

The Bible puts it this way:

A prudent man sees the evil and hides himself, but the simple pass on and are punished [with suffering]. (Proverbs 22:3, AMP)

The key is to take these things seriously, to do your due diligence, and get in position to profit rather than to suffer.

Again: Hyperinflation in the United States has already begun in the monetary supply, and will soon begin in the prices of the marketplace. Since the U.S. dollar is the “world’s reserve currency” and sits as reserves backing most of the other paper currencies of the world, hyperinflation is likely to spread rapidly on a global scale. Gold and silver is your best and most secure way of protecting your savings and preparing for the economic tsunami that is soon to come.

Stay informed, and get prepared.

Lastly, please post your comments below.

In Jesus,



Gold, Jobs, And the U.S. Economy (In A Nutshell)

February 6, 2009 Posted by Rich Vermillion


Once in a while, you run across an article on the web that just “sings.” On February 4th, 2009, Señor Hugo Salinas Price wrote such a piece (in English) about gold and its significance in international trade, economics, and the history behind the current U.S. economy meltdown. It is simple, concise, and very accurate. Please avail yourself of the following reposted article, and I will have additional comments of my own further below.

If you have not already read them, be sure to visit my own posts listed at the bottom of this page for additional insights from complimentary but different angles. Also, please widen your browser window to see the Financial Column to the far right of this web page for additional data and resources.

Gold: the protector and creator of jobs, by Hugo Salinas Price

Some readers may ask themselves, “What has gold to do with protecting jobs? Gold hoarders are certainly not creating jobs, and hoarding more gold will not help at all.”

Gold has everything to do with the loss of jobs in the US, and gold has everything to do with recovering jobs for the US economy.

Let me go back to the 1960s. During those years, the US and the world were on a gold-and-dollar Standard.

Back in the ’60s, countries were very careful about maintaining a constant monetary balance between their exports and their imports. They all wanted to be in a situation where they would export more than they imported, so that they would have increasing balances of gold or dollars in their Treasuries.

To state this more correctly, they all wanted to export more than they imported, except the United States.

The US didn’t care very much about maintaining a balance between exports and imports, because the US was able to pay for its deficit in trade (more imports than exports) by simply sending more dollars overseas.

Many economists warned about this trend, which was accompanied by a constant loss of gold during those years; some countries, notably France, refused to hold more and more dollars. The French asked for their gold — at $35 an ounce — and this caused great disgust in Washington and New York.

Nothing was done to stop the trend. In 1971, Henry Hazlitt, a good conservative economist, warned that the dollar would have to be devalued — that it would be necessary to raise the number of dollars which would be needed to obtain an ounce of gold — some months before the dam broke and the US was faced with the need to devalue, because the US stock of gold had become much too small.

What Mr. Hazlitt never imagined, was that instead of devaluing — which was the advice of economist Paul Samuelson, Nobel Prize winner, published the week before August 15, 1971 — Nixon followed the advice of Milton Friedman and simply “closed the gold window.” The US would henceforth not deliver any gold, at any price, to any foreign Central Bank who might wish to invoke the right to redeem its dollars for gold, according to the Bretton Woods Agreement of 1944.

Since that date, all world trade — or the better part of it — is carried on in dollars which are nothing more than fiat money. Since the rest of the world’s currencies were tied to gold through the dollar, all the currencies of the world also became fiat money — fictitious money, backed by nothing. That includes the Euro, of course.

What happened after that fateful date has overturned all order and harmony in economic relationships between the nations of the world.

Countries around the world began to accumulate more and more dollars as credit expansion in the US went forward, implacably. Central Banks had to accumulate these dollars in their Reserves, whether they wanted to or not. (Not having sufficient dollars would force other countries to devalue and destroy savings. The US cannot run out of dollars, it manufactures them.)

With no loss of gold to restrain the US and force it to stop expanding credit, US imports surged and exports waned. The monetary difference was “paid” in dollars.

Free trade was extolled by the US; every country that wanted to be in the good graces of the US had to bow to “free trade.”

Free trade is a good thing — but not for a country that is providing the world’s fiat money. This “free trade” was called “globalization,” meaning that the US could, and did, buy everything it wanted in the world, in any amount, at any time, by simply paying dollars for it.

There was no restraint to US credit expansion. It was a lovely time to be young and an American.

However, free trade means you buy where it’s cheapest, and the cheapest place to buy, in recent decades, was China, southeast Asia, and India; the oil required to fuel the US economy was cheap and bought with dollars which it cost nothing to produce.

Thousands upon thousands of products and floods of oil came across the oceans to the US, and to Europe, which began to pay in euros for some of its imports — euros that also cost nothing to produce.

US manufacturers, facing this competition from Asia, decided to move their factories to Asia instead of waiting for certain bankruptcy by competing against much lower-cost production.

That was how the US was de-industrialized.

It happened because gold was eliminated as a limit on credit expansion and money creation.

Had Nixon not gone off gold in 1971, China would have taken generations to create its industrial base. It would have been necessary for China to accumulate capital slowly, because its exports to the US would have been limited by the need for the US to pay up with gold for the amount by which Chinese exports exceeded its imports from the US.

The Chinese would have had to buy as much from the US, as they sold to the US; and since they were so terribly poor, there was not much they could have bought from the US.

Their growth would have been slower, but they would not now be facing over 20 million unemployed, as their markets dry up.

The US would never have allowed China to drain US gold from the Treasury by selling more to the US, than the US sold to China. But since payment was in fiat dollars and not in gold, the destructive effect of huge Chinese imports was not considered important by policy makers. And so the US sailed into unemployment and had a great time doing it. Only now that the party is over are the grim facts visible: no jobs! Manufacturing is decimated.

The fiat dollar — unanchored to gold — was the greatest strategic gift that the US could have made to China. Now, they have a huge industrial base and the US has oh, so little!

The damage is done. How to recover the industrial base of the US? Not by slogans such as “buy American,” nor by protectionism.

What is required is to recover economic balance between the nations of the world so that they all can balance their exports with their imports. This is not done by protectionism, a false remedy to joblessness.

The world needs to return to gold as the international means of payment. All imbalances must be paid, monthly, in gold. No fiat money “payment” allowed!

If a nation does not have gold to export, it must do without or manufacture what it needs itself: There you have the clue to restoring jobs in the US and in Europe. This is not “nationalism”; it is simply good economics.

The US has to limit its imports drastically, not by protectionism and tariffs, but by returning to the gold standard. Jobs will mushroom in the US beyond what anyone can dream as soon as its market must buy locally or not buy at all for thousands upon thousands of articles. A return to gold will achieve that aim very quickly, to be sure.

The gold standard is the friend and protector of the worker and of the investor, as well as the basis for harmonious relations between the nations of the world.

And by the way, the current financial disaster in the US is directly attributable to Nixon’s decision to “close the gold window,” because a monetary system based on gold is an obstacle to the criminal credit expansion perpetrated by the bankers. Gold-based money puts shackles on bankers, forcing them to be careful. A fiat money system enables financial criminality — it’s as effective in restraining criminality in finance as tying up a dog with a string of sausages.

As you can readily see after having read the above article,  Señor Hugo Salinas Price has done us all a tremendous favor in writing such a marvelous and simple piece. Now, please consider reading the following articles here on as well in order to expand your thinking in these areas further. Take special note also of the “to do” articles that help you to determine your own strategy for preparing for the inevitable and imminent U.S. economic collapse:

In Jesus,



Forty to One: The ‘Odds’ Favor Gold and Silver

November 4, 2008 Posted by Rich Vermillion


THERE IS A MYSTERIOUS DYNAMIC at work in Western gold and silver markets in that “paper” precious metals seem at times to be falling in price, while “street” prices for in-your-hand bullion is constantly rising. The real fact of the matter is that the “spot” prices reported on the Internet and elsewhere are regarding bullion futures contracts, and not actual physical gold and silver. Those prices do NOT include additional costs like fabrication and delivery… and they certainly do NOT contain the “premiums” being charged on the street for the real thing.

The people on the commodities exchanges (from where we get “spot” pricing of gold and silver) are simply trading paper around. Consequently, these figures are misleading—especially with Western central banks manipulating the markets (with the aid of their cohorts) in order to prop up their worthless currencies. Even though an increasing number of investors are requiring physical delivery of the bullion their “paper” contracts promise, the exchange rates still reflect fictional pricing dynamics at best.

In the Western nations: On the “street” there are shortages of both gold and silver bullion in any form, but especially coins, ingots, and small bars.

Therefore, dealers in the West are finding that they have FORTY buyers for every ONE seller who is willing to part with their precious metals in exchange for declining paper currencies (see the article further below).

Meanwhile, in other parts of the world like the Orient and Middle East, gold is readily available in shops. As the following picture (sent me by one of my friends) of a “gold souk” in Dubai clearly shows, the “on the street shortages” are a Western phenomena alone as the Western economies collapse themselves from their own debt weights:

Gold in abundant display within a Dubai shop window

Gold in abundant display within a Dubai shop window


Gotta Have It

So with the shortages here in the Western nations as people scramble to acquire real money in the form of gold and silver, the dealers are tacking higher and higher premiums on the REAL gold and silver to reflect the true supply/demand dynamics they see every day in their shops—even while the “paper” traders play games within the commodities markets.

But remember: When the dollar and Western economies collapse, “paper” bullion with be worth no more than what their then-undeliverable promises are printed on.

The only real protection against the Economic Tsunami that is to come is physical gold and silver in hand. Period. Those wise enough to realize the biblical and historical truth of that statement will well-position themselves to be recipients of the coming wealth transfer. Those that do NOT, will find themselves suffering the loss that the wise then inherit. (Hint: Proverbs recommends you be counted among the wise, and not among the foolish who inherit destruction.)

Moreover: To confirm what I have stated above and in other articles, consider the data revealed in the following article excerpt about what is happening today in the gold and silver markets. I will pick up below it with my final comments and recommendations:

The New Gold Rush: Supply of Coins Tight at Tucson Stores

By Dan Sorenson
Arizona Daily Star, Tucson
Sunday, November 2, 2008

The price of futures contracts for gold surged to more than $1,000 per ounce earlier this year, then dropped back before surging again as the financial crisis rocked stock markets in September. Then the price of gold futures started slipping again.

In October, Bloomberg News reported, the price dropped 18 percent, the most it has in a single month since 1980. Gold for December delivery closed at $718.20 an ounce Friday on the New York Mercantile Exchange.

Your college Econ 101 course may not help you understand the latest gold coin rush.

Banks have been on wobbly knees, the stock market has been plunging, and 401(k)s are as deflated and sad as four-day-old party balloons.

But, oddly, gold has been both falling in price and in short supply for those looking for a safe haven during the stock market storm. Some Tucson dealers say gold coins are scarce at best, even as gold—and silver—prices are falling.

There is even more complexity within that scenario, local dealers say.

Retail gold coins generally sell for the current price of the metal they contain, plus a “premium”—the dealer’s fee—on each coin. Of late, the premiums have risen significantly to reflect the shortage of supply of some denominations, the dealers say.

“I get 10 to 20 calls a day, ‘Do you have any gold or silver?’ We don’t have any, and we can’t get any,” said Peter Spooner, a coin expert at American Stamp & Coin, 7225 N. Oracle Road.

“There are people who are selling their stocks to get into gold and silver because they fear we are going into a tremendous depression,” said Spooner. Yet, he noted, the “price of paper (futures contract) gold is dropping while the price of owning actual hold-in-my-hand gold is going up” when the seller’s premium is added.

Historically, it would be cheaper to buy an ounce of gold in one coin than to buy an ounce as four quarter-ounce coins. But the price for an ounce of gold is actually cheaper if you buy it as four quarter-ounce coins than in a single 1-ounce coin—if you could find one, said Brett Sadovnick, owner of Tucson Coin & Autograph, 6470 N. Oracle Road.

In this case, a classical supply-and-demand situation is at work: There’s more demand for the 1-ounce coins than the quarter-ounce and other smaller coins, so it’s driven up the price of the 1-ounce coins.


Buyers Might Be Newcomers

Sadovnick isn’t quite sure why buyers are fixated on the 1-ounce coins. Gold is gold, purity being equal.

It could be that the buyers driving the demand for the 1-ounce American Eagle coins are newcomers fleeing the wild uncertainty of the stock market for the relative calm of the world’s longtime favorite precious metal. Maybe they feel better about owning the hefty full-ounce American Eagle, rather than a handful of smaller gold coins—half-, quarter-, or tenth-ounce — that weigh just as much. Sadovnick isn’t sure.

“I’ve been a coin dealer in Tucson since 1998, a professional since 1974. I haven’t seen a situation quite like this,” said Sadovnick. Not even the crazy precious metals roller-coaster days of early 1980—when gold hit $850 an ounce for one day—compares, Sadovnick said.
And it’s not just gold, he said.

“I placed an order a month ago, 1,000 1-ounce silver bars. I paid him spot (the spot price), plus $2.50 an ounce premium,” Sadovnick said. That order might not arrive until January.

“Three months ago I could have bought it from them for the price of silver, plus $1.50 an ounce, and I would have had delivery in a few days.”

Even Jim Ganem, owner of the venerable Arizona Stamp & Coin, 4668 E. Speedway, is baffled.

The shop is the only Tucson dealer mentioned on the U.S. Mint’s Web site as dealers of American Eagle coins, and Ganem says he can’t get any Eagles, or anything regularly. He said the U.S. Mint sent out a notice saying it isn’t making the coins because even they can’t get the gold blanks to stamp.


40 Buyers to One Seller

Ganem said hedge funds are dumping billions of dollars worth of gold contracts they hold, driving down the price of gold. But to actually get gold, not just a contract, buyers are having to pay a premium—a higher premium than he can recall in the past.

Some of those contract holders are asking for the gold they represent, instead of just trading in the paper. But that gold is disappearing in an instant on the spot market, said Ganem. He said he gets a few chances a day to buy gold that becomes available, but that it disappears in a matter of minutes.

“Typically,” he said, “we’re running 40 buyers to one seller right now coming into the store to purchase. People don’t want to be in the stocks, real estate, and they don’t trust the banks—three typical havens for large amounts of money. The other one is metal.”

One would think the skidding stock market and real estate decline would be driving up gold and silver prices. And while it did initially, in September, the price of precious-metal futures plunged in October.

An industry expert in Phoenix said the gold market isn’t behaving in a traditional manner.

David Henry of Arizona Coin Exchange Inc. in Phoenix is a wholesaler who sells to coin and precious metals retailers. He said most people who buy paper gold, contracts, never physically possess the gold, choosing instead to resell the contracts, hopefully for more than it cost them.

“You can get it, physically, but it’s complicated,” Henry said.

Physically possessing gold is an entirely different mechanism, Henry said, something that is done for security—a way to safely hold value, often for a very long time.

Unfortunately, he said, this is an occasion for a “Perfect Storm” scenario.

The price isn’t high enough to bring sellers into the front door of coin and precious metal shops, and the main source of new gold, the federal government, can’t deliver.
Spooner said the vagaries of the current gold market don’t change his view of gold.

“I don’t present gold as an investment,” said Spooner. “Buying a half- to 1-ounce piece of gold every month is like insurance… like portfolio insurance. In economic turmoil, it’s a flight to safety.”


Decline in Gold Futures

The price of futures contracts for gold surged to more than $1,000 per ounce earlier this year, then dropped back before surging again as the financial crisis rocked stock markets in September. Then the price of gold futures started slipping again.

In October, Bloomberg News reported, the price dropped 18 percent, the most it has in a single month since 1980. Gold for December delivery closed at $718.20 an ounce Friday on the New York Mercantile Exchange.

As you see in the article above, these artificially low prices on the commodities exchanges are merely illusions. So the key is to obtain gold and silver anywhere you can while the prices are relatively low (though dealer premiums are so high) while you still are able to do so. Once the dollar collapses nobody will part with their silver/gold… except when they may be buying up all your worldly possessions in return.

So let me be blunt: Buy gold and silver bullion in any form—but especially coin form—anywhere you can get your hands on it—while you still can. You can move your IRAs and 401(k) offshore outside of the USA and UK into gold and silver (see my note at the bottom of this article about AFE). Even sell your sports gear, Longaberger-basket collection, jet ski—and even a few of your TVs and iPods if you have too—to get liquid with your money, and then buy all the gold and silver you can obtain. And let me add: Do so VERY QUICKLY.

As I have said before in other blog posts, I also highly recommend you take a firm look at Joseph Wealth Systems (JWS) as a reliable supply source for gold bullion coinage. While the dealers in the Western nations (like the ones in the article above) are desperate for precious metals coinage to meet the phenomenal demand, JWS is reporting a fully-fluid coin supply that is still abundant in the face of the increasing demand. Their prices for their gold shekels and quarter shekels are also very competitive with the increasingly high-premium coin prices being found through other dealers (and again, you can actually GET coins!).

Add to this fact that you can become an online gold coin merchant yourself (if you so choose) and you can readily understand how JWS can be a very lucrative source for your gold coin acquisitions. (Note: JWS does not offer silver coins at this time, so you will simply have to get silver anywhere you can find it.)

Lastly, I highly recommend you study the information I provided for you in my blog article God’s Money and Private Coinage. That article will help you to see both the biblical/historical aspects of owning gold and silver as bona fide REAL money, while also providing you an understanding (through an excerpt from Murray Rothbard wise counsel) in the benefits of owning privately minted coins.

God bless you as you earnestly seek God’s Wisdom… and not merely the gold and silver He created.

In Jesus (Yeshua),



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