Prophetic Observer November 2008
November 2008 PROPHETIC OBSERVER — 1
November 2008—Vol. 15, No. 11 Keeping Time On God’s Prophetic Clock L–092
Go, set a watchman,
let him declare what
he seeth. —Isa. 21:6
The Coming Greater Depression?
The Law and Charity
You say: “There are persons who have no money,” and you turn to
the law. But the law is not a breast that fills itself with milk. Nor
are the lacteal veins of the law supplied with milk from a source
outside the society. Nothing can enter the public treasury for the
benefit of one citizen or one class unless other citizens and other
classes have been forced to send it in. If every person draws from
the treasury the amount that he has put in it, it is true that the
law then plunders nobody. But this procedure does nothing for
the persons who have no money. It does not promote equality of
income. The law can be an instrument of equalization only as it
takes from some persons and gives to other persons. When the
law does this, it is an instrument of plunder.
With this in mind, examine the protective tariffs, subsidies,
guaranteed profits, guaranteed jobs, relief and welfare schemes,
public education, progressive taxation, free credit, and public
works. You will find that they are always based on legal plunder,
There are a couple of time–worn proverbial sayings that apply
to the present economic turmoil that has not only invaded our
nation, but also has brought financial fears in nations around
the world: “What goes around, comes around,” and “The only
lesson that men learn from history is that they never learn from
I was born in 1922, and remember quite well the Stock Market
Crash of 1929. My dad was a farmer, and the price of cotton fell to
3¢ a pound, which did not even pay for the picking and ginning;
corn fell to 10¢ a bushel, and there was not even a market for
other cash crops like peanuts and potatoes. I remember the huge
piles of cotton that were left out in the fields to rot. My dad lost
everything, and I went to live with my Grandma Askew. During
the ensuing era known as the Great Depression, my dad worked
as a sharecropper and part–time as a WPA worker during the
Franklin Roosevelt administration. My older brother went to a
CCC camp where millions of young men in their late teens and
early twenties were sent to save the nation from unrest, crime,
We read in Acts 17 that in Paul’s dissertation to the wisest men
of Athens the apostle explained God’s sovereignty in the realm
of human government. Human government basically is to keep
citizens of any particular nation from killing each other, stealing
from each other, and permitting the citizenry the freedom
and safety to enjoy the blessings that the Creator has by grace
provided for mankind, including salvation by His grace through
faith in Jesus Christ who suffered and died for the penalty of sin
in our place.
Frederic Bastiat on his deathbed wrote the greatest document
on human government and its failures outside the Bible.
This French parliamentarian wrote this treatise in 1849, some
14 years before the American Civil War. Just one of the many
errors of government downfall that this French parliamentarian
covered was the main reason for our present national economic
trouble—Socialistic Philanthropic Plunder.
Quoting Bastiat from pages 18 and 21 of The Law:
Three Systems of Plunder
The sincerity of those who advocate protectionism, socialism,
and communism is not here questioned. Any writer who would
do that must be influenced by a political spirit or a political fear.
It is to be pointed out, however, that protectionism, socialism,
and communism are basically the same plant in three different
stages of its growth. All that can be said is that legal plunder is
more visible in communism because it is complete plunder; and in
protectionism because it is limited to specific groups and industries.
Thus it follows that, of the three systems, socialism is the
vaguest, the most indecisive, and consequently, the most sincere
stage of development.
But sincere or insincere, the intentions of persons are not
here under question. In fact, I have already said that legal plunder
is based partially on philanthropy, even though it is a false
With this explanation, let us examine the value—the origin
and the tendency—of this popular aspiration which claims to
accomplish the general welfare by general plunder. . . .
2—November 2008 PROPHETIC OBSERVER
and a possible revolution.
During the Great Depression between 1929 and 1939, the family
moved at least once a year, a total of 16 different houses, some
so old and rotten they would barely keep out the wind and rain.
In 1998, while I was on a visit to my older sister who still lives in
the Hugo, Oklahoma, area, my three sisters and I got in my car
and we revisited sites of all 16 places. There was not a single house
left on any one of the sites.
In my first year in high school in 1935, my Civics teacher
was the coach of the Hugo High School football team, Mr. Os
Doenges. Mr. Doenges did not approve of the economic policies
of Franklin Roosevelt, who called Joseph Stalin “good old Joe.”
He was convinced that the New Deal was just an introduction to
Communism, and being a great admirer of my teacher, I began
to believe that FDR was a Communist. On a Saturday, my mom,
dad, and myself got in my uncle’s old Essex and drove up to Cloudy
Mountain north of Antlers to visit Uncle Henry, who was a food
distributor for the FDR program. As we drove up to Uncle Henry’s
house, there on the front was a 6'×6' picture of Franklin Roosevelt.
While Uncle Henry was showing my parents to the building in the
back where all the FDR goodies were stored, there just happened
to be a black crayon on a bench on the front porch. To express
my true feelings, as I am often wont to do, I drew Uncle Henry’s
messiah a huge moustache, spectacles, two horns on his head,
and wrote “The Harebrained Idiot.”
Upon returning from the back shed, my Uncle Henry took one
look at the cardboard picture that was now defamed and started
yelling and screaming. He ran into the house, only to appear again
with a double–barrelled shotgun, screaming that he was going to
kill the so–and–so who dared to do such a thing to his beloved
president. The three of us, mom, dad, and myself, quickly appraising
the situation, jumped into the Essex and sped away down the
mountain. After the war, Coach Doenges coached the Oklahoma
City University football team, which was nationally ranked, and
then ran for the U.S. Senate. He came to the office of the ministry,
which was only two blocks from OCU at the time, and Dr. Webber
wrote the Oklahoma listenership in favor of his candidacy, but
regretfully he was not elected because at that time, Oklahoma was
a yellow–dog democratic state. At that time there was not 501(c)3
status for churches or Christian organizations.
Good Old Days to the Bad New Days
In my junior and senior years in high school I did work part–time
in the FDR farm conservation program by taking a measuring
chain and a large photograph to appraise how much cotton, corn,
potatoes, etc., that farmers were planting, and then instructing
them on how much they had to plow up. And once again, I often
found myself staring down the barrels of double–barrelled shotguns
and being chased by bloodhounds. However, in 1938 nations
in Europe began arming for the next war, and the U.S. profited
in some respects. As the U.S. citizenry began accumulating a
little pocket change, the FDR administration decided to try to
put homeless people back into some of the empty homes. Thus,
banks were encouraged through a new federally–created mortgage
program called “Fannie Mae.” Although the National Recovery Act
(NRA) had to be dropped because too many Christians thought
it was the mark of the beast, the Fannie Mae program was in the
beginning seemingly successful. Investors were not reticent to
back it because it was backed by the federal government, and even
foreign investments began to pour in to get in on the profits from
expanding home mortgages in a U.S. growing economy.
In 1968 another Democratic president, Lyndon Johnson,
amended Fannie Mae, evidently because the Vietnam War had
placed additional burdens on the national budget. Federal guarantees
for secondary mortgages, or sub–prime mortgages, were
removed and Little Orphan Fannie became a stock company
offering profits to stockholders, yet maintaining its non–profit
501(c)3 status, a newer version of “you can have your cake and eat
it too.” So successful was the new no–taxed for–profit corporation
that investments came pouring in from gay Paris, to Mandalay,
to Timbuktu. Wall Street was rolling in easy dough as the Twin
Trade Towers got higher and higher.
So successful was Fannie Mae that she attracted a new friend,
Freddie Mac in 1970. Fast Freddie gained international popularity
rapidly, and a 2002 report by Freddie Mac stated that annual
compound interest rates were 19 percent a share—WOW! A paragraph
out of this report proposed expanding sub–prime or poor
man’s mortgages further:
Anticipating a housing expansion during the first decade of the
21st century, Freddie Mac in July 2001 announced plans to raise
$2 trillion in funding. Favorable interest rates and a refinance
boom had been already fueling the mortgage industry. With
home ownership at an all–time high, Freddie Mac planned to
capitalize on the positive trend. By increasing distribution of
its Loan Prospector tools it hoped to capture even more of the
market. Freddie Mac was exploring growing its sub–prime loans
and was testing and adapting underwriting technology to grant
mortgages in that segment of the market. Plans to draw in new
investments from overseas, particularly the euro market, were
already in the works.
Four paragraphs later in this 2002 Freddie Mac report we read:
Concerns such as this led to an agreement under which Fannie
Mae and Freddie Mac would register with the Securities and Exchange
Commission for the first time. Additional calls for further
restrictions were likely to come up before Congress down the line.
Republicans, who gained ground in the 2002 national elections,
had been among the sharpest critics of the GSEs.
November 2008 PROPHETIC OBSERVER — 3
Notice that this Freddie Mac report did not say their worse critics
were Democrats, but Republicans.
The September 30, 1999, edition of the New York Times, not
exactly a conservative publication, carried the headline:
FANNIE MAE EASES CREDIT IN AID MORTGAGE LENDING.
The article read in part:
In a move that could help increase home ownership rates among
minorities and low–income consumers, the Fannie Mae Corporation
is easing the credit requirements on loans that it will purchase
from banks and other lenders.
Fannie Mae, the nation’s biggest underwriter of home mortgages,
has been under increasing pressure from the Clinton Administration
to expend mortgage loans among low and moderate
income people and felt pressure from stockholders to maintain
its phenomenal growth in profits.
In moving, even tentatively, into this new area of lending,
Fannie Mae is taking on significantly more risk, which may
not pose any difficulties during flush economic times. But the
government–subsidized corporation may run into trouble in an
economic downturn, prompting a government rescue similar to
that of the savings and loan industry in the 1980s.
When Obama before a national television audience points his
finger at John McCain and shouts, “You are responsible with
George Bush for this economic mess,” he is not exactly being truthful.
Franklin Roosevelt, Lyndon Johnson, and Bill Clinton—all
Democratic presidents—are the ones responsible.
But John just gulps and changes the subject to global warming.
Having been in the South Pacific in WWII, serving in New Caledonia,
New Guinea, and the Philippines, no one can possibly have
more respect for John McCain and what he did for this country
in the Vietnam War than I. Yet, I feel he must be among those
my mama used to say were behind the door when the brains were
passed out and got only what was left in the bucket.
George Bush is responsible for pouring billions into a tar–baby
Iraqi war when that situation, if handled correctly, should have
been concluded in two years. And although the Bush administration
has prevented another major terrorist attack since 9/11, for
which it should be given credit, nothing has been done to prevent
the illegal immigration problem or the continual shipping of U.S.
jobs and factories overseas with the outsourcing of millions of jobs
desperately needed here in order for our citizens to make their
house payments, feed their children, and send them to school.
According to a Harvard University study (where Obama went
to school), from 1993 to 1998 Hispanic mortgages increased by
87.2 percent, and black American mortgages increased by 71.9
percent, while white citizen mortgages increased by only 46.3
percent. And some still wonder why banks are closing and stock
shares are becoming worthless and 401K savings that citizens
have been counting on for retirement are being used to pay for
deadbeat mortgages that never should have been granted in the
first place. According to one national banking report on October
9, 2008, loans made to 5 million immigrants are bad, probably
amounting to approximately $1 trillion.
The perpetrators of this, along with the CEOs who have parachuted
out of failing financial institutions with billions of dollars,
along with those in Congress who added $150 billion in pork to
the $700 billion financial rescue bill, can be put in a category just
a little below Benedict Arnold.
The Kenya Connection
In the March 2008 edition of the Prophetic Observer, I made
reference to a Daily Telegraph report that Mr. Obama continued
to have communications with Odinga (widely reported to be
his cousin) in Kenya. Odinga had run for president of Kenya on
the platform of returning Muslim sharia law and stopping all
Christian evangelistic meetings and radio programs. I was sent
copies of records by missionaries that an employee in Odinga’s
office had taken showing that a contribution of $1,050,000 had
been received from B.O., evidently meanings Friends of Obama.
One of the items I received concerned the campaign strategy for
Odinga including class hatred, resonate with poor youths and
“elevate their emotions.” In the event that Odinga did not win
the election, then the plan in the campaign chronology brief
called for class warfare. When Odinga was not elected by popular
vote, he declared voter fraud and his Muslim leaders started
riots that burned or damaged over 800 churches and killed over
1,000 Christians. Most of those killed, according to missionaries
I talked with, were trapped inside their churches and were burned
to death. These were black Christians.
I actually recorded an interview by telephone with one of the
Christian leaders in the churches in Kenya. Jerome Corsi did make
a trip to Kenya to verify the Obama/Odinga connection and did
obtain a couple of e–mails that, according to his report, were
either from Obama or one of is staff members. Before Corsi could
investigate further, he was arrested and put on a plane back to
England. More information can be obtained from WorldNetDaily
in the October 7 and October 10 reports: www.worldnetdaily.
James Carville, a noted liberal critic, stated on October 7 on
national TV that if Obama was 5 points ahead at the time of the
election and lost, there could be serious trouble. But President
Reagan was ten points behind two weeks before the 1980 election
and won. Polls reported by the liberal news media cannot
be depended upon. Was Carville warning that what happened in
Kenya when Odinga lost and 800 churches, but not one mosque,
was burned, could happen here? The Christians I have talked with
in Kenya certainly have this concern.
4—November 2008 PROPHETIC OBSERVER
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weatherman for the U.S. Air Force and NASA, presents absolute
proof that when the earth warms up, so does the moon and Mars
correspondingly. Our nuclear fusion operating sun is cyclical, as
Sarah Palin correctly brings out. Heat comes from the sun, not
CO2. In fact, this past year there has been the greatest reduction
in global temperature than in the last 20 years, and possibly the
last 200 years. Joe, John, and Barak need to go back and take a
ninth grade science course or quit lying to the voters. At the very
least, they need to quit confusing greenhouse gas with pollution.
If Beijing is having trouble with pollution, then let the government
of China put catalytic converters on the millions of cheap
cars it is producing.
Here Comes the Messiah?
In 1984 Rev. Jeremiah Wright, Senator Obama’s pastor for 20
years, accompanied by Louis Farrakhan, noted leader of the Nation
of Islam organization, went to visit the Muslim dictator of
Libya, Muammar Qaddafi. In 1988, Qaddafi was linked to engineering
the crash of an airline in Lockerby, Scotland , that killed
287 passengers, mostly Americans. I personally heard Qaddafi
speaking on the internet from Libya saying that Obama is the
hope for the future and that his Christian religion was just a front
to fool the American people. While we would expect this dictator
to say this, the endorsement of Senator Obama by so many world
Muslim leaders is troubling.
Louis Farrakhan is quoted in the October 10, 2008, edition of
WorldNetDaily as saying of Obama:
You are the instrument that God is going to use to bring about
universal change. . . . That’s a sign. When the Messiah speaks,
the youth will hear, and the Messiah is absolutely speaking. . . .
Would God allow Barak to be president of a country that has been
so racist, so evil in its treatment of Hispanics, native Americans,
blacks? Yeah! . . . The stone the builders rejected has become the
headstone of the corner. This is a sign to you. It’s the time of our
rise. It’s the time we should take our place.
I see no evidence that Americans really know why they are being
tested and judged at this time. As with Israel, we have forgotten
God and are looking for man to deliver us from our problems.
According to Daniel 4, God sets over nations the basest of men.
Perhaps that is what will occur on November 4.
Giant Oaks from Little Acorns
The activities of ACORN in its voter registrations have been widely
reported in the last few weeks of the presidential campaigns for
both major parties. At the writing of this article, ACORN is under
indictment or investigation of voter fraud charges in nine states.
These are serious charges, especially in view of the fact that the
present administration is trying to encourage democracy in Iraq,
Afghanistan, and several other despotic or theocratic national
governments. This crime, if true, makes a mockery of honest
citizens going to the trouble of casting their votes.
ACORN was formed in the wake of the widespread protests,
especially among college students, to the Vietnam War. There were
also multiple social concerns connected with these protests. The
originator of ACORN’s genesis seems to have been Wade Rathke,
a community organizer who unified welfare recipients in Little
Rock, Arkansas, concerning social justice complaints. ACORN
began as the Arkansas Community Organization for Reform
Now. ACORN also applied considerable pressure against Harvard
University for reasons too involved to explain in this brief article.
If this had any influence on Obama, who later graduated from
Harvard Law School, is unknown. In any event, it appears that
after law school Mr. Obama became an organizer for ACORN and
represented the organization in putting pressure on banks and
corporate boards to grant loans and mortgages to low–income or
no–income groups. Some of the methods used to accomplish this
goal seem to have been unorthodox, to say the least. Therefore, Mr.
Obama seems to have been a part in the creation of the economic
mess to which he now claims to have the answer, and for which
he seems to blame Bush and McCain.
Hillary Clinton, with Joe Biden on one side of her and her
“devoted” husband on the other, was charging that to put McCain
in the White House would be comparable to putting the bull
back in the china closet. Methinks that Hillary is trying to put
the wrong bull back in the closet. Senator Obama, according to
reports, gave an $800,000 contribution (probably from campaign
funds) to ACORN, and he now, since ACORN is receiving adverse
publicity, is trying to disavow any connection, which is ridiculous.
Nonetheless, the adage is proving true: “from small acorns giant
oak trees grow”—for better or worse.
Global Warming or Political Hot Air?
Senators McCain and Obama have both stated before national
television audiences that they will make reducing “greenhouse
gases” (CO2) a priority. Greenhouse gases is what greenhouse
owners put into their greenhouses so that plants will grow bigger
and better vegetables. Joe Biden shouted before a national
TV audience, to embarrass Sarah Palin, that “global warming is
100% man made.” Over 31,000 scientists have signed a petition
that there is no such thing as global warming and that we need
not less, to feed the exponentially increasing population.
Dr. Edward F. Blick, a ministry Trustee, who has served as a