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Yahoo_Limit Down_2020_03_22_802pm

Yahoo finance reports US stock futures in ‘limit down’ status on Sunday, 3/22/2020.  Worth noting is Yahoo’s attribution of the crisis to the “coronavirus crisis.”  This is incorrect.  Our financial crisis is the responsibility of the Fed and those who justify and encourage its ungodly practices of debt creation, monetary debasement and bailouts.

“And we know that all things work together for good to those who love God, to those who are called according to his purpose.”

Romans 8:28

That was an interesting week.  Last week, I’m talking about.  The one where, if we are still working, we’re doing so from makeshift home offices, the one where governors are locking down the citizenry of entire states and shutting down their economies, the one where the financial markets continue of crash at a rate comparable to, or even exceeding, that of 1929, and this at a time when the Fed is printing more funny money faster than it ever has.

It would seem that Humpty Dumpty indeed has fallen, and all the king’s horses and men are working feverishly to put him back together.  Will they succeed?  That depends on your definition of success.  It may well be that by printing enough money and bailing out not just individual companies, but entire industries, the powers that be may succeed in extending the current politico-financial system a bit longer.  Maybe another year of so.  Who knows?  Longer term, it is doubtful that the current governmental and financial structures currently in place will be able to survive in their current form.  Change is going to happen.

Just to give you a idea about how desperate some in the political establishment haver become, last week a member of Congress suggested  that the federal government provide every person in America – she did not say citizens, but every person in America, which includes, among others, illegal aliens – with a pre-loaded debit card in the amount of $2,000, which would be renewed with $1,000 per month for a year.  That works out to $660 billion for the first month, then $330 Billion for the next eleven months.  If I’ve done my math correctly, this works out to almost $4.2 trillion.

How does she plan to pay for it?  This Congresswoman, Rashida Tlaib (D-Mich.), wants the Treasury to issue two $1 trillion platinum coins, have the Fed purchase the coins, then have the Treasury sweep the funds into the Treasury General account, from which the money would be disbursed to “every person in America.”

This is nothing but a massive dollar devaluation scheme, not unlike what FDR did in 1933-34 when he forced everyone to turn in his physical gold, then devalued the dollar about 70% against gold.  The biggest difference is that Tlaib’s scheme would be far more aggressive in devaluing the dollar, meaning it would be massively inflationary.  This can easily be seen if we consider the current price os platinum and the amount of investment grade platinum that is currently available.  The current price of platinum in US dollars is $618.61.  According to this article, there are about 8 million total ounces of investment grade platinum bullion available in the world.  At current prices, this means the total value of all investible platinum is about $5 billion.  If the US federal government used this entire 8 million ounces to mint two huge coins weighing 4 million ounces each, this implies that the dollar would be devalued against platinum to approx. 1/400 of its current value.  Put another way, platinum would go from $618.62 per ounce to around $247,444 per ounce.  Other prices would rise accordingly.  Put another way, the dollar would lose 99.75% of its value against platinum.  This is even enough to make an inflationist such as FDR blush.

Of course, it’s highly doubtful that, even if Tlaib’s scheme were put into practice, the coins – if you can call a 4 million troy ounce object a coin at all – would almost certainly be far smaller than in my example above.  This means that the devaluation of the dollar would be far greater than 99.75%

Further, Tlaib claims that her scheme is deficit-neutral, not requiring any new debt to be issued.  Perhaps I’m missing something here or have done my math wrong, but the cost of her program for one year is more than double the $2 Trillion value of her two proposed coins, so where does the other $2 trillion plus come from?

I went through the above exercise in some detail just to give you an example of the sort of absurd nonsense that passes for thinking among our leaders in Washington.  And while Tlaib’s scheme is ridiculous, it’s really not all that much more absurd than proposals being floated by the Trump administration.  Trump is talking about bailing out whole industries, having the federal government own stock of bailed out companies and sending checks to everyone as well.  President Trump himself has gone on record arguing for negative interest rates and quantitative easing.

As in 2008, so it is in 2020.  Government officials are running around with their hair on fire desperately trying to fix a debt crisis by, wait for it…taking on more debt!

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Costco

Signs hanging inside a Costco store notified customers that they were out of supplies on Monday, March 2. (Photo by Jeff Gritchen, Orange County Register/SCNG)

“Martha, Martha, you are worried and troubled about many things.  But one thing is needed, and Mary has chosen that good part, which will not be taken away from her.”

  • Luke 10:24

What’s my topic?  That’s the first question every writer must answer before starting. Sometimes topics suggest themselves easily.  Other times, coming up with an appropriate subject can be a bit daunting.

With all the events of last week – coronavirus, and the stock market crash to name two – you’d think that finding a topic would be easy.  But it’s been more of a challenge than may seem at first.

I had a number of ideas coming into today and had even written an outline for a possible series addressing ways in which entrenched vested interested manipulate events and the reporting on those events, giving people a false sense of reality and allowing them to surreptitiously advance their own hidden agendas.

Lord willing, I hope to be able to write that series.  But today, it just didn’t seem right.

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NYSE

The New York Stock Exchange. Jeenah Moon for The New York Times

But when he had spent all, there arose a severe famine in that land, and he began to be in want.

Luke 15:14

Coronavirus live updates:  Washington state weighs mandatory measures to contain outbreak” is the most recent headline on CNBC. As has been the case with countless other headlines over the past few weeks, it announces another possible government action, this time by the State of Washington, to combat the spread of coronavirus in the U.S.  My point in citing this headline is not to commend or to criticize Washington for its program, but merely to illustrate that coronavirus continues to be the lead story in the American press, a position that for the most part it’s held for at least a month.

Admittedly, the coronavirus story has proven difficult for this author to assess.  A big part of the problem is the lack of credible sources.  The Communist Chinese government is not necessarily the most reliable source of information concerning the state of affairs in the country.  Then again, the Western press, specifically the American mainstream media, is no better, at least in the opinion of this author. For example, two weeks ago the New York Times ran a “helpful” opinion piece titled “Let’s Call It Trumpvirus” which attempted to lay the blame for the current coronavirus crisis on the president.

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Coronavirus_Trump Pence

“Mike Pence literally does not believe in science.  It is utterly irresponsible to put him in charge of US coronavirus response as the world sits on the cusp of a pandemic.”

Believe the Bible?  Then shut your deplorable, science denying mouth!  That’s what our friends on the progressive left think.  Of course, these also are the same folks who will tell you with a straight face that men can become women, that women can become men, and that there are more genders than Heinz has varieties of ketchup, all which flies in the face of science, the very thing they claim as their source of truth.  But in the minds of the Marxists like Ocasio-Cortez, Christians are science denying Luddites, while they are paragons of scientific rigor.

Not that the secular left’s intolerance is at all surprising.  They’ve made clear their hatred of Christians for years, decades really.  Maybe even longer.

But while one would expect those whose god is government to dislike and hate those who worship the Lord, what this author finds somewhat surprising is the crushing confidence they have in the rightness, and righteousness, of their arguments.

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Coronavirus

CNBC headline on 2/21/20.  They want you to think it’s the Coronavirus that’s behind the stock market selloff, but the truth lies elsewhere.

“But we will certainly do whatever has gone out of our own mouth, to burn incense to the queen of heaven and pour out drink offerings to her, as we have done, we and our fathers, our kings and our princes, in the cities of Judah and in the streets of Jerusalem.  For then we had plenty of food, were well-off, and saw no trouble.”

  • Jeremiah 44:17

In his book Logic, Gordon Clark noted a number of informal logical fallacies.  On page 17, he mentioned, among others, a fallacy called in Latin post hoc ergo propter hoc, or as we would say it in English, “after this, therefore because of this.” This logical error, hereafter the post hoc fallacy, involves asserting that, because event B took place after event A, that A is what caused B.

Now it’s true that there can be a cause and effect relationship between an earlier event and a late event.  In Jeremiah 44, the prophet, speaking for God, states, “You have seen all the calamity that I have brought on Jerusalem…because of their wickedness which they have committed to provoke Me to anger.”  God makes it entirely clear in this passage that the prior disobedience of the people of Judah was the cause of his bringing judgment on Jerusalem.  We don’t have to guess at why the Babylonians leveled Jerusalem and burned the temple in 586 BC, God tells us explicitly both the cause and the effect.

Later in chapter 44, we get the reaction from the people to whom Jeremiah was prophesying.  As it turned out, they didn’t much care for his sermon. Part of their response to Jeremiah was a classic case of post hoc fallacy.  See if you can spot it.

But we will certainly do whatever has gone out of our own mouth, to burn incense to the queen of heaven and pour out drink offerings to her, as we have done, we and our fathers, our kings and our princes, in the cities of Judah and in the streets of Jerusalem.  For then we had plenty of food, were well-off, and saw no trouble. But since we stopped burning incense to the queen of heaven and pouring out drink offering to her, we have lacked everything and have been consumed by the sword and by famine (Jeremiah 44:17-18).

Did I say, see if you can spot it?  Reading this passage further, it seems to me that there are two post hoc fallacies to be found.  In the first place, the people argue that their burning incense and pouring out drink offerings were the cause of their prosperity when they were in the land, when, in fact, it was God’s grace that provided for them.  Second, they attributed their current state of exile to their worshipping the queen of heaven, when, in fact, the cause of their exile was God’s punishing them for their disobedience.

I bring up the preceding Biblical example of post hoc fallacy to introduce the main point of this post, which is to refute the linkage, put forward by mainstream financial reporters, the outbreak of the Corona virus in China is reason for the recent stock market sell off and spike in the price of gold.

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Eccles_2

The Eccles Building, the main office of the Federal Reserve in Washington, D.C.

And this is the condemnation, that the light has come into the world, and men loved darkness rather than light, because their deeds were evil.  For everyone practicing evil hates the light and does not come to the light, lest his deeds should be exposed.

  • John 3:19-20

The words from John at the top of this post are readily recognized by Christians as coming from Jesus’ dialogue with Nicodemus, the Pharisee who came to inquire of him one night.  The immediate application of Jesus’ words is, of course, to himself as the light who came into the world and was rejected of men, for they loved evil and feared lest their deeds should be exposed.

But while Christ said these words in the context of explaining his person and purpose for coming in the flesh to Nicodemus, his comments have a wider application.  They are a specific case of a broader principle we see in Scripture, that of the Christian principle of openness and honesty.  Those who love the truth do what they do in the open.  They let their light shine before men that others may see their goods works and glorify their Father in heaven.  On the other hand, those who practice evil, those who have something to hide, they do their work in the dark, fearing to be seen by men.

One application of the principle of openness and light is the Christian idea of government as a servant of the people, not as their master.  When the disciples argued about who was the greatest, Jesus explained the Christian concept of leadership, which was radically different from the model the world offered.  Christ explained that the rulers of the Gentiles “exercised lordship” (lorded it over) them, but such was not to be the case among his followers.  Following Jesus example, those who would be first in the Kingdom of Heaven were to be servants of all.

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Impeach_Acquittal

Donald Trump holds up copy of Washington Post with headline announcing his acquittal by the Senate, Feb. 6, 2020.

Facing an impeachment hearing and senate trial for his part in the cover up related to the Watergate burglary, then President Richard Nixon chose to resign from office in August 1974.  Upon being sworn into office, President Gerald R. Ford gave a brief 850-word address in which he uttered the now famous line, “My fellow Americans, our long national nightmare is over.”

Being all of eight years old at the time, I didn’t have a super sophisticated understanding of all that was going on, but I did get the gist of it.  President Nixon had done something wrong and tried to hide it.  Now, he had to resign.

But more than the particulars related to the case, what I recall from that period was the overwhelming sense of boredom I had with hearing about Watergate and anything Watergate related.  It really did seem like along national nightmare that went on year after year after year.  No doubt, some of that was due to my age.  When you’re eight years old, six months seems like a lifetime, because, in a way, it is.

In truth, the whole Watergate saga took about two years and two months to play out.  On June 17, 1972, the Watergate burglars were arrested.  On August 9, 1974, Nixon resigned.

That was then.

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