Life in a fallen, rebellious, Satanically controlled world that is under God’s curse is full of difficulties, trials, problems and hardships – even for the sons and daughters of God. Here in the state of Michigan we are experiencing many hardships. Our unemployment is the highest in the nation. Tens of thousands have lost their jobs, including quite a few members of Shema. Some families have had to leave the state; one had to leave the country. One family has had to separate and live in different states. Times are difficult for many, and I am sure that things are likely to get more difficult in 2010. Why?

The government adopted a foolish kind of economic philosophy that was doomed to fail called Keynesian economics. Instead of letting the forces of a free market adjust on their own – which is a healthy thing, since recessions function to cleanse the economic body – Keynesian economics calls for government intervention whenever there is a recession. Stimulate the economy! Lower interest rates! Deficit spend! Create more credit and money!

This perfect storm has been building for decades and includes such outrageous policies as going off the gold standard in 1971, which allows un-backed paper money to be created at will; ever-expanding big government spending programs; running increasingly huge deficits for 40 years through every administration, both Republican and Democratic; encouraging the off-shoring of manufacturing and other good paying jobs; and government regulators being negligent and allowing insane quantities of insurance derivatives and sub-prime mortgages to be created and bundled together and sold. The government has been buying up the bad debts of private banks and companies, which transfers the losses from private parties, who were negligent and should take the losses, onto the public. The government responds to every crisis by distorting how bad things really are, and by creating more money and credit and debt to delay the day of reckoning – pretending and extending – which only makes a bad situation worse.

All of these economic errors have brought us to the point where we are headed into an economic winter. Because of all of these things, the dollar, no longer backed by anything, is headed much lower and may even completely collapse. I am convinced that we are headed into a hyper-inflationary depression. It has already started, and in 2010, I think it will start hitting with much greater force. I have been warning you about this for years, and it is happening.

A word to the wise: Take steps to protect yourselves from a profligate and corrupt government that creates money out of nothing. Be prudent with your finances. Be frugal. Cut your discretionary spending. Save as much as you can. Get out of dollars and US bonds and other fixed income instruments like corporate bonds denominated in US dollars. Get into real money that can’t be printed by a corrupt government. Get your wealth and savings into gold and silver. We are headed for all kinds of troubles – very serious economic and political and social troubles.