Warren Buffett is known as America’s wisest investor. He is no doubt the most successful investor in the twentieth century. Our times, however, are changing and changing fast.
In the last 15 months Americans have lost over $2.8 trillion of their hard earned savings. Thousands of people will not be able to retire. They will continue to work. Their savings is gone, their IRAs and 401Ks wiped out and dreams of sandy beaches and sunshine are shattered.
People have been optimistic since the start of the market meltdown since its height in October 2007. As the market began to sink they were told to hang in there. The “r word” (recession) was avoided like the plague on tout TV and not mentioned until March 2008. Then stock holders were told to remember long term investing is the key to financial wealth building. As the market continued to burn away the savings of the American people month by month they were told that Warren Buffett was buying. Wow, did that turn heads. And since Buffett’s buying “with his own personal money,” spending $8 billion then surely investors should follow his sage advice. After all, he is the sage of all sages. Well, let’s look at his advice for the 30 days after his first purchase.
- September 25th, 2008 Buffett purchased $5 Billion in Goldman Sachs stock. If you followed his lead you would have paid $135.50 a share for the common stock. On Friday close October 24th the shares sold for $100.40, a 25.9% loss.
- October 2nd, 2008 Buffett purchased $3 billon in General Electric stock. Granted he got the preferred shares with a guaranteed 10 percent interest but if you followed his lead to buy, buy and buy you would have paid $22.15 a share for the common stock. Right at 30 days later on Friday October 24th the shares closed for $17.83, a 19-1/2 % loss.
This means that Warren Buffett lost over $1.6 billion in 30 days.
“So what’s the point Jonas,” you ask? The point is that Mammon and Christ are leaders of two very different kingdoms and some of us have sought the wisdom of the wrong king. When Jesus talked about this he didn’t pull any punches. He said his disciples could not serve two masters. Maybe we don’t bow down to Mammon but some certainly seek his wisdom. It’s obvious that we need to put Christ first. As our Sovereign God, Christ has sent His Word as a guide for life, wisdom and victorious living. As already said the Kingdom of God and the kingdom of Mammon are very different. In fact they war against each other. The kingdom of Mammon, for example, is a kingdom built on debt and scarcity. In contrast Christ’s kingdom conquers debt and is full of abundance.
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Scripture declares that everything that can be shaken will be shaken. Some have grown comfortable, lukewarm and apathetic. Others have looked to the wisdom of secular humanists that don’t know our God. It’s time to wake up. It’s time to “put first the Kingdom of God and His righteousness.” It’s time to break out of the dumbing down process of the Church and time to turn away from putting the wisdom of the world ahead of the wisdom of our God. Karl Marx said that religion was the opium of the people. He meant that Christians were disarmed by their religion, ineffective, easily controlled and no threat to the advancement of his demonic agenda. Yes, there is a shaking going on as the battle of kingdoms continues. I am convinced, however, that our God will lead us and guide us in all truth. He will lead His people through this time of shaking too.
As born again believers, we can trust the wisdom of Christ. I am reminded of this scripture, “Of the increase of His government and peace there shall be no end upon the throne of David and upon his kingdom, to order it and to establish it with judgment and with justice from henceforth even forever” (Isaiah 9:7). You are part of His kingdom and it’s His Kingdom that He will order and establish. Have you ever heard it said that Jesus is the King of kings and the Lord of lords? You are one of those kings and one of those rulers. As the Sovereign God our Christ has given us authority and power to perform His covenant. That covenant is a covenant of increase, a covenant of dominion and a covenant of establishing His Kingdom on earth. So how should we prepare for recession?
- Get out of debt and stay out of debt. Debt feeds the beast of Mammon.
- Take on no payments. Pay cash or don’t buy.
- Stay away from the stock market. In other words, don’t buy stocks! Again, over two trillion dollars have been lost in the last 15 months. Take action.
- Consider saving your dollars in another currency like Yen or Swiss Francs. Get diversified and safe. Check out www.everbank.com for a basket of currencies. The Euro is now in the same category as the U.S. dollar because of the European banker’s bailout and massive fiat monies. Massive! Inflation will hit us after the recession is over. Learn what a recession means to you. Learn what inflation means to you like higher interest rates, diminished purchasing power of money and higher rents. As a hidden tax, inflation will affect you! You can, however, benefit from inflation and protect yourself if you know how. Study God’s Word. Study economics. Start. Read my book on "Kingdom Living."
- Tithe and give offerings that support the causes of Christ. (God rebukes the devourer for you.) This is your right as a child of God. Tithing activates the biblical economics of your covenant with God.
- Most important too, mind your job. Maintaining your job is vital. Get to work early and leave late. Your boss will notice. Do a good job and help your company make money.
- Keep educating yourself by studying one hour per day on what you love.
Partners, this is no time to stop sowing into Kingdom causes (Matthew 6:33). We recently purchased, for example, motorcycles for some of our network pastors in Nicaragua. To see good men have to walk or take the bus year after year is more than I can bear. Your support empowered the right people. In the months ahead we will start a scholarship fund to help poor children in our churches get into University, more on that later. Thank you for your continued prayer and support. Together, we are making a difference.
Your partner,
Jonas Clark
p.s. See you at the Global Cause Network Conference for refreshing, equipping and impartation in Hallandale Beach, November 20th.
