Fiscal Cliff, Debt, & Gold

220 kg Gold brick displayed in Taiwan

Received several emails related to gold today. There is an increased international interest in the shiny metal, mainly because of international currency and economic concerns. The situation in the USA with its pending “fiscal cliff,” its latest round of “quantitative easing” (QE3), and its debt are all factors:

11/23/12 — Gold stocks surged Wednesday as gold futures gained nearly $20 an ounce to settle at a 1-month high on optimism that lawmakers could make a deal which would avoid the upcoming “fiscal cliff”…

The “fiscal cliff” is a combination of government spending cuts and tax increases set to take effect at the beginning of 2013 unless lawmakers reach a compromise on a new budget deal. The Treasury Department has recently reported that the October deficit, which is the first month of the new fiscal year, grew 22 percent to $120 billion. Gold historically has gained in times of economic uncertainty as investors look to it as a safe haven. http://www.stockhouse.com/news/canadianreleasesdetail.aspx?n=8676237

The price of stocks and gold will fluctuate (for more current gold quotes, check out the Financial Information link, which also has links to stocks, currencies, and other financial valuations). Many are going for gold as a type of reserve currency. Notice that many are increasing their holdings of it:

Brazil raised its gold reserves for a second month in October to the highest level in more than 11 years as emerging nations from Kazakhstan to Russia boosted holdings by more than 40 metric tons…Central banks have been expanding reserves as the metal heads for a 12th straight annual gain…

“The IMF figures showed continued strong buying by central banks,” said Dan Smith, a commodities analyst at Standard Chartered Plc in London. “This continues the trend of recent months and we expect this to support gold prices.” http://www.bloomberg.com/news/2012-11-21/brazil-boosts-gold-reserves-to-the-highest-in-more-than-11-years.html

Gold’s 12-year rally, the longest in at least nine decades, is poised to continue in 2013 as central bank stimulus spurs investors from John Paulson to George Soros to accumulate the highest combined bullion holdings ever…Central banks from Europe to China are pledging more steps to boost growth, raising concern about inflation and currency devaluation…

“We see gold as a hedge against the follies of politicians,” said Michael Mullaney, who helps manage $9.5 billion of assets as chief investment officer at Fiduciary Trust in Boston…

Gold rallied 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011. Investors buying bullion as a hedge against inflation and a weaker dollar generally earn returns only through price gains, increasing its allure as interest rates decline…

“It looks as though global monetary stimulus is likely to continue, particularly in the wake of growing fiscal austerity,” said Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion of assets. “That puts pressure on the monetary authorities to stimulate the economy and that will debase the currencies and put a bid under gold.” http://www.bloomberg.com/news/2012-11-20/soros-buying-gold-as-record-prices-seen-on-stimulus-commodities.html

Now there is a campaign under way in Germany to bring the metal back home — and it is gathering strength all the time…What does the campaign tell us about the state of the global economy?…trust in financial institutions is dwindling all the time. http://www.marketwatch.com/story/why-do-the-germans-want-their-gold-back-2012-10-31

Call to bring Austrian gold back home from the UK

Austrian Times – Nov 22, 2012

There is heated debate in Austria after it was revealed that the country’s National bank (OeNB) is storing its gold reserves in England. http://austriantimes.at/news/Business/2012-11-22/45593/Call_to_bring_Austrian_gold_back_home_from_the_UK

In 2010, China became the world’s biggest gold producer, mining 340 tonnes…Chinese gold imports are increasing as well. Most come through Hong Kong. Between 2010 and 2011 they tripled…If gold was a meaningless, antiquated metal whose only use is for jewellery, why would China be doing all this? http://www.moneyweek.com/investments/precious-metals-and-gems/gold/chinese-demand-could-send-gold-price-soaring-61500

World banks are increasingly concerned about US debt, political problems, and the ultimate value of the USA dollar. That is one of the reasons that the central banks of many countries have been increasing gold reserves (their own debt and political goals are also reasons).

The idea of gold could be accumulated to support a new currency, while the US dollar tanks, is discussed on page 333 of my book 2012 and the Rise of the Secret Sect. as well as page 133 my book Barack Obama, Islam, and the Destruction of the United States:

It seems since many are now questioning the role of the U.S. dollar as the world’s reserve currency, more are looking into other currencies as well as gold. Gold will set records in U.S. dollar terms. When the U.S. dollar totally collapses people all around the world will consider that even if the Euro (or something similar) is strong, having a more gold-backed currency would be safer. The collapse of the U.S.A. dollar will shake a lot of the world’s confidence in non-gold backed currencies.

Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe.

The financial policies of the Obama Administration (which are a massive acceleration of the previous policies of the Bush Administration) are heading the world into the direction that something other than the U.S. dollar will be valued as its reserve currency. (Thiel B. Barack Obama, Prophecy, and the Destruction of the United States. 2012 Edition 1.1, p. 133)

Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro) may greatly increase European credibility, prosperity, and influence around the globe. (Thiel B. 2012 and the Rise of the Secret Sect. 2009, p. 333)

The Bible is clear that the final King of the North and his revived Babylonian empire will accumulate and use gold (Daniel 11:38,43; Revelation 18:12,16; cf. 17:4). And I have long believed that part of the reason for this would be because of devaluation of the USA dollar. The devaluation of the USA dollar has begun and gold has been regularly increasing in value relative to the USA dollar.

Does this mean that gold will go up higher next year? No, it does not. How USA taxes and debt are dealt with, food stocks, international matters, energy production, etc. all play a role. And the role may raise or lower the value of gold in USA dollar terms in the short run. But in the long run, the USA dollar will be worthless and for a while gold valuable–though even it will be considered less than worthless for a while per scripture (cf. Ezekiel 7:19).

The financial world is somewhat starting to understand some of this–but few really know how bad it will get. While Europe will have problems and ultimately must restructure (Revelation 17:11-13), the biblical reality is that US dollar will ultimately be worthless and the USA ultimately taken over because of its sins and debt. Increased interest gold (and silver) suggest decreased interest in the US dollar. Of course, with the rapid rise in the price of gold in the past few years, it may go down–though I believe that after the US dollar is worthless, gold still will have value (Daniel 11; Revelation 18).

The fact that Germany and Austria keep talking about taking their gold out of the UK, and for Germany also out of the USA, may also be of prophetic interest–they will probably prefer to have their gold out before the USA and UK are taken over, which according to various scriptures, such as Daniel 11:39, they will be. The King of the North will accumulate gold (cf. Daniel 11:43), possibly as part of a move to increase confidence in the new economy that he and the false prophet will promote (Revelation 13:16-17; Revelation 18).

Of course, gold and an improved economy will not save humanity, only Jesus can do that, but it may be prudent for people to consider the signs of the times.

For additional information, check out the following articles:

The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value, but they also have carnal value. Inflation/deflation? What do Christians need to know about gold (and silver)?
Are You Saved? Do You Love Jesus? What is a True Christian? What is the Gospel? Evangelist Richard Ames answers those important questions.
Can the Great Tribulation Begin in 2012, 2013, or 2014? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?
2012 and the Rise of the Secret Sect This is a link related to a book by Bob Thiel (COGwriter). This link also has YouTube videos. This book documents and explains hundreds of prophecies. And since it was published, world events have aligned with at least 23 predictions in the book and many more will to come to pass. Those who purchase the book at the www.thesecretsect.com website receive a lengthy bonus report documenting world events that aligned with the book.
2012 and the Rise of the Secret Sect (English Kindle edition). This is the 2nd edition of the book, released in January 2012, and includes a summary of many of the predictions that world events have aligned with since the book originally came out in September 2009.
2012 y el surgimiento de la secta secreta 2012 libro del Dr. Thiel en Español.
2012 und das Auftreten der geheimen Sekte (German Edition) 2012 Buch von Dr. Thiel in deutscher Sprache. 2012 und das Auftreten der geheimen Sekte (German Kindle Edition)
2012 e o Surgimento da Seita Secreta (Portuguese Edition) 2012 livro do Dr. Thiel em português. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 23 já começaram a acontecer.
2012 e o Surgimento da Seita Secreta (Brazilian Portuguese Edition) 2012 livro do Dr. Thiel. Edição em português do Brasil. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 23 já começaram a acontecer.
Barack Obama, Prophecy, and the Destruction of the United States This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about Mitt Romney. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic, Catholic, Kenyan, and other America-Related Prophecies? What About Mitt Romney?
Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon’s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States–Amazon Kindle edition.)