The Fulcrum and the Lever
September 22, 2022 6:31 PM
September 22, 2002
A month ago, I was driving through a lovely mountain valley in the country and suddenly the Holy Spirit downloaded the words, “Credit Default Swap” into my brain. The words of knowledge were so random and out of place from what I had been thinking as I was driving that I couldn’t help but pay attention.
I know nothing about finance, and when the Holy Spirit gives me knowledge regarding finance, I feel rather out of my league. I’m a high school English teacher! According to Investopedia.com, a credit default swap is “a derivative product that serves as a form of insurance against the default of an underlying borrower or debt instrument.” Because I don’t have a head for finance, I sat on this word of knowledge and waited for more confirmation. But in the light of recent world events, I asked the Holy Spirit to explain what He was trying to tell me to warn the people.
Even as I type these words, the Holy Spirit tells me, “You don’t need to know finance to tell when and where a weak and dying tree will break and fall. Look to the trees in your yard. I showed you what is going to happen through the trees.” This past week, I have had two trees break and fall over, blocking the back part of my driveway. The first tree that fell was very large, over 50 feet, and its rotten trunk broke about six feet up from the ground. Several of the tree’s branches did not fall all the way to the earth, but came down hard against a midsized tree, pressing weight against it. Within two days, the second tree came down in the same spot as the other one. One large rotten tree brought down another healthier one in its path.
Earlier today, the Holy Spirit downloaded the word “Fulcrum” into my mind. He showed me a fulcrum and a lever placed upon it and pointed to the fulcrum. He said “So much of what the lever can do depends not only of the length of the lever but on the placement of the fulcrum.” He said the Credit Default Swap is the fulcrum and it is placed in such a way that the lever will do maximum damage when it comes down. He then downloaded the word “leverage” into my mind. According to the dictionary (Oxford Languages) the financial definition of leverage is to “use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.” The Holy Spirit showed me that the profits made, if any can be made this year, WILL NOT be greater than the interest payable, and a cascade of defaults—supposedly insured by Credit Default Swaps that will not work as intended—will make sure the debts are never paid back. The levers, just like the trees, will crash to the ground. One large tree will bring down others. They won’t all fall down at the same time, but the larger falling ones will put pressure on the smaller ones that cannot bear the weight long and they will snap. Just as in the case of the trees in my yard, it can be a matter of only two days before the secondary trees fall.
The Holy Spirit warns, “Guard your purse.” These days, our purses carry little money because so many of our financial transactions have gone digital. Our ‘purses’ include our (unsecured!) bank accounts, investments, and retirement funds. Our ATM machines…
The rich rule over the poor, and the borrower is slave to the lender.
You have sown much, but harvest little; you eat, but there is not enough to be satisfied; you drink, but there is not enough to become drunk; you put on clothing, but no one is warm enough; and he who earns, earns wages to put into a purse with holes.”
“Sell your possessions and give to charity; make yourselves money belts which do not wear out, an unfailing treasure in heaven, where no thief comes near nor moth destroys.
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”
Then Jesus asked them, “When I sent you without purse, bag or sandals, did you lack anything?” “Nothing,” they answered. He said to them, “But now if you have a purse, take it, and also a bag; and if you don’t have a sword, sell your cloak and buy one.”
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