Understanding Obsessive Compulsive Disorder (OCD)

Unlike other mental disorders that require recognizing anywhere from 4 to 9 symptoms, OCD only requires recognition of two problems, obsessions and compulsions. Therefore, it is imperative to understand these two problems in order to properly recognize and treat OCD.

What is an Obsession?

We as a culture have applied obsessions to many things that are not true examples of the term. For example, a teenager who is "obsessed" with her hair, or his team winning the championship are not what it takes to be diagnosed with an obsessive problem. Thank goodness! Otherwise we would all be obsessed with something!

The term comes from its Latin root, obsidere, meaning "to besiege," as an army would take control of a city for the purpose of forcing surrender. A true obsession is truly , a battle of the mind. According to the official diagnostic manual used by mental health professionals, the DSM-IV, obsessions are "recurrent and persistent thoughts that are experienced as intrusive and inappropriate and that cause marked anxiety or distress." The definition highlights the four main qualities of clinical obsessions: Intrusive, recurrent, unwanted, and inappropriate. Children may not have all these present at once, but they will have some of them.

Intrusive thoughts: Thoughts that pop into a person's mind, interrupting the normal flow of thought. A individual will be thinking along a normal train of progressive thoughts, one naturally leading to another (unless your ADD- Ha!), and all of a sudden, Bam! A new unwanted, unexpected, thought burst into the person's mind.

I don't struggle with OCD but I got a taste of it yesterday. I saw a deer moments after it got hit by a car. It had a badly broken leg and was struggling to walk. It was awful, more gruesome than I will describe. Throughout the day, the images of that event burst into my mind repeatedly, a with no apparent reason. My mind was besieged with these images.

For a person with OCD, thoughts and images invade a person's mind, unwanted, involuntarily, and cause distress. The sufferer feels a sense of loss of control, that the thoughts are unstoppable. The invasiveness of the thought causes a great deal of anxiety.

Recurrent thoughts: The individual experiences the intrusive thought repeatedly, described by one person as a "constant bombardment that never stops." The sufferer feels like that they can't stop them from coming, again and again.

An obsession is not a phobia. A phobia can be avoided and therefore the negative thoughts stop. If I'm afraid of flying, an easy way to avoid the distressing thoughts associated with flying is to stay away from planes. No planes, no obsessive fears. An OCD sufferer experiences the recurrent singular obsessive thought regardless of proximity to the stressor. A person who fears germs can be in a perfectly sterile environment, and know it to be true, and still not stop the obsessive thoughts.

Unwanted thoughts: Try as they might, a individual can't seem to stop the intrusive thoughts. They are the burglar who evades all defenses, the army that can't be stopped. Ironically, the more you resist the thoughts, the more they come.

An obsession is not an addiction. An obsession is always unwanted, 100% of the time. Not so with an addicted thought. It is wanted but being resisted. A gambler wants to gamble, but resist the urge knowing that it ultimately is a bad course of action. With an obsession, there is no enjoyment whatsoever.

Inappropriate thoughts: OCD thoughts are ego-dystonic, meaning "against the person's very nature." They know the thoughts are irrational and illogical. They don't want them, nor believe what they say. Yet, they keep coming. For many, the obsessive thoughts are truly awful, thoughts of smothering their own child, stabbing themselves, being attacked by a horror movie type figure. The thoughts are exaggerated, disturbing, and highly inappropriate.

Obsessive thoughts are not psychotic thoughts. A psychotic individual believes the inappropriate thought is rational, understandable, wanted. The serial killer locked up in Texas who enjoys the feeling of cutting a person's skin open is psychotic. A OCD sufferer who has thoughts about hurting their own child and is horrified by them is not psychotic.

What is a Compulsion?

A person who "compulsively" goes to Starbucks every morning to get their latte, does not meet the criteria for a clinical compulsion. No, it takes more than that. A clinical compulsion is a repetitive act that is clearly excessive and is performed in order to lessen the discomfort of an obsession. The compulsion is seen as the way out of the obsession. They may, and often, work for a short period of time but over time cause more bondage.

Compulsions can take an infinite number of different forms. They are most often logical responses done excessively. Washing to eliminate germs makes sense and is a good plan. Washing repetitively to the point of damaging one's hands or washing the kitchen counter for the 5th time is excessive.

The obsessive-compulsive cycle is a vicious cycle that is exhausting and debilitating. If you or your child suffer with OCD, seek help. Cognitive behavioral therapy has been shown to be very effective in the treatment of OCD. Medication has also been shown to provide much relief, and in conjunction with therapy has been shown to be the most effective. For children, we developed Turnaround: Turning Fear into Freedom to help them overcome OCD. Visit www.myanxiouschild.com for further information.

Love expressed through PURSUIT

I am convinced that one of the greatest wounds many of us experience in childhood and throughout life comes from the lack of pursuit. We know we are loved when we are pursued. A child knows they are loved when they have a parent pursue them, when a parent stops and asks them how they are doing, ask them what they need, inquire about their friends, etc. A spouse knows they are loved when their spouse sits and talks with them, cooks them their favorite meal, gives them a card for no special reason other than to say "thanks" or "I love you."

Last month I was at a church function and talked to a few guys that I did not know or only met maybe once before. As a counselor, I easily ask questions of others and inquire about their lives. What often amazes me is how poor men are at pursuing another person, except for some selfish gain. I talked with one guy for at least 40 minutes, asking about his job, his family, etc. Not once did he ask me any questions about my life. I left that conversation feeling un-pursued and uncared for. I later learned from my wife that that man's marriage is in major trouble. Is it any wonder! I then sat next to another man. As a golf pro, he had a very interesting life and could have gone on and on about his experiences, but he didn't. He pursued me with a passion that was impressive. His questions showed a genuine interest in me and my pursuits. I left that conversation feeling energized, happy, and wanting more. I felt pursued.

The Bible spends a great deal of time stressing how it is God that pursues us and not the other way around. He knows our heart's desire to be pursued and he goes after it. Take for example the three parables that begin in Luke 15, the parable of the lost sheep, the lost coin, and the lost son. All clearly show that God is a God that will do whatever it takes in pursuing the lost soul in order for them to experience the joy of the Father's love. God finds us and heals us through pursuit.

What's your story? Do you have wounds from your childhood due to not being pursued? How good are you at pursuing others? Do you walk closely with God in order to feels his love? Meditate and pray over this theme of pursuit. Allow the Lord to heal your heart in this area, to open your eyes to His pursuant love, and to learn how to love others better through the means of pursuit.

Longing For Heaven

I recently worked with a young female who was deeply bothered by the media's portrayal of women, pornography, and all the sexual images displayed nearly everywhere. She feared it would affect her boyfriend's view of her and sex, that it was damaging the minds of her guy friends, and that it may cause her marriage to fail in the end. She has a beautiful heart and a Godly passion for purity. She wonders how she can join the fight against porn and sex in the media. It was very refreshing to see!

I asked her what she wanted, what she hoped for. She said she wanted the world to be free of all this filth, for it to be banned somehow so that people would not be affected by it. She wanted a world that was purer, cleaner, and safer for her to live in. She wanted... heaven.

Many people's deepest longings, which oddly enough show up in their obsessions, are longings for heaven. She longs for a world that is safe and secure, a world that she can be free to be herself and not have to worry about how guys are viewing her or what her boyfriend might be stumbling upon on the internet. This is a common longing for women, a world that is safe, ordered, and where relationships can be truly intimate. They want what Adam and Eve had; "they were naked and unashamed" (Gen. 2:25). I once pointed out to a woman that her OCD tendencies, her obsessing over having a clear house and everything in its place, was a longing for heaven. She said it was one of the most profound things she had ever heard. It made complete sense to her. The challenge for both these women, and for us all, is to find peace living in an imperfect world while longing and hoping for a perfect one.

Men's longings are not so much for a safe world but for one that is free from futility and the endless struggle to make things happen, work, and function well. Women were cursed with loneliness, heartache, and vulnerability (Gen. 3: 16). Men were cursed with futility and the endless toil of pulling weeds (Gen. 3:17-19). Men want a place that works and doesn't require their endless sustainment of it. This is why men long for wealth and success. They hope by having that, they will be able to rest and enjoy the fruits of their labor. Here are some dysfunctional behaviors that are really longings for heaven:

**Porn use by men is the desire to feel adequate, competent, and good enough. Sport and hobbie obsessions by men are longings for adequacy, competency, and adventure. Men are often bored. They want something to make them feel alive and strong. Those are longings for heaven, for a world where those longings can be fulfilled.

**Shopping, chick-flicks, romance novels, and the like are ways women seek to feel valuable and worthy of attention. "If I look good, I can keep the man and be accepted by other women," goes the thought. Through fantasy, "I can have the man and the deep relationships I want."

**Drug and alcohol addictions are escapes from pain and a longing for a world that is less painful, simpler, and one that allows for more fun. It's often longing for relationships to be easier and less anxious producing (the whole idea of how "after a couple of drinks I'm able to lighten up and relate better").

What are your obsessions, your "must haves," your strivings all about? Are the really longing for heaven? Maybe you need to quit striving and hope in the Lord, for not only life eternal but also the ability to live life with hope and joy as you wait for heaven. I strongly encourage you to read Romans 8:18-39. I close with two verses from that passage.

"For I consider that the sufferings of this present time are not worthy to be compared

with the glory that is to be revealed to us. For the anxious longing of the creation

waits eagerly for the revealing of the sons of God" (Rom. 8:18-19).

Finding life apart from God (Genesis 12:10-13:4)

"It is refreshing to meet a real pilgrim in the midst

of our secular, security-loving age with its

continual emphasis upon comfort, convenience, and compromise."

Ray Stedman of Abraham

Abram was this type of pilgrim before Genesis 12:10. He was walking with God, walking in the Spirit. He was journeying with Him and finding life totally dependent upon Him, symbolized by living in a tent and the building of altars. But then a famine came upon the land and everything changed.

The famine in this passage represents a threat to one's life, something that causes us to panic because we fear our life will be changed for the worse. In such times we can choose to call upon the Lord for strength and life, or we can take matters into our own hands. Abram chose the latter and we can learn a great deal from results of this choice by reading his story.

Abram comes up with a plan to find life in the midst of this trial. There is no evidence that the Lord told him to go to Egypt as He told him to go to Canaan. This is Abram's plan. He took matters into his own hands. When our lives feel out of control and we fear losing our "lifestyle," we take matters into our own hands instead of calling upon the Lord. This is Abram's first mistake.

As he travels to Egypt, he tells his wife Sarai (both Abram's and Sarai's names will change later in the story) to say she is his sister rather than wife since she is a beautiful woman and he fears they may kill him for her. As is often the case when relying upon one's own plan, small lies must be told in order for the plan to be properly executed. Such is the case with Abram. He solicits Sarai to join him in his plan, to tell a lie in order to keep him safe. Mind you the cost of this lie is huge, putting not only Sarai in danger but all of Abrams offspring forever more, as you will soon see. This is Abram's second mistake. What are the consequences of these two mistakes, two mistakes that all of us tend to make when we take matters into our hands instead of relying upon the Lord?

First, Abram's character is compromised. He is intentionally deceiving others and taking on the lifestyle of the worldly cultures around him.

Second, Abram's decision put his loved ones and offspring at risk. Sarai was taken into the Pharaoh's harem. Who knows what she was subjected to. Abram's nephew Lot was also with them. He grew to like the things of Egypt and later when faced he the temptations of Sodom and Gomorrah, he could not resist them for they reminded him of "the plains of Egypt."

Third, Abram acquired great wealth. The problem with wealth, especially when gained through deceitful means, is that is can lead a person away from the Lord (Mark 4:19). Additionally, the things gained through wealth can negatively affect a person, and possibly their offspring as well. Abram acquired maidservants by Pharaoh through his relationship to Sarai. One of the maidservants was Hagar! Abram later conceived a child with Hagar and their son Ishmael became the father of the Arabs who have fought with the Jews for centuries up to this very day. Incredible! We could call this the second greatest mistake ever made! Adam's and Eve's mistake of choosing independence from God plunged the whole human race into darkness. Abram's and Sarai's choice of independence from God caused a sibling conflict (Ishmael and Isaac) that has brought misery and heartache upon mankind for centuries! It will lead to the final battle at Armageddon and the return of Christ! Living life apart from God can lead to serious consequences!

Fourth, it produces a bad testimony that does more harm than good. Abram's witness to the Egyptians was greatly compromised by his choices. The same thing happens with us. As someone once said, "the greatest evidence against Christianity is Christians." It's true! Double-minded Christians living a life not in step with the spirit but by the flesh do great harm to the testimony of the gospel.

In the end, Abram is forced to leave Egypt and returns to Canaan where he repents and follows God once more. Chapter 12 and 13 of Genesis represent two ways of living. Chapter 12 tells the story of Abrams's doubt in God and choosing to live by our own plans. Chapter 13 shows Abram once more living by faith and the blessings that come. The consequences of ch. 12 do not leave him, but his repentance allows for his life to be guided by God once more. May we learn from Abraham's life how to walk with God and the from the consequences when we don't.

Powerful Speech from Columbine Victim's Father

Guess our national leaders didn't expect this, hmm? On Thursday, Darrell Scott, the father of Rachel Scott, a victim of the Columbine High School shootings in Littleton , Colorado , was invited to address the House Judiciary Committee's subcommittee. What he said to our national leaders during this special session of Congress was painfully truthful.

They were not prepared for what he was to say, nor was it received well. It needs to be heard by every parent, every teacher, every politician, every sociologist, every psychologist, and every so-called expert! These courageous words spoken by Darrell Scott are powerful, penetrating, and deeply personal. There is no doubt that God sent this man as a voice crying in the wilderness. The following is a portion of the transcript:

"Since the dawn of creation there has been both good & evil in the hearts of men and women. We all contain the seeds of kindness or the seeds of violence. The death of my wonderful daughter, Rachel Joy Scott, and the deaths of that heroic teacher, and the other eleven children who died must not be in vain. Their blood cries out f or answers.

"The first recorded act of violence was when Cain slew his brother Abel out in the field. The villain was not the club he used.. Neither was it the NCA, the National Club Association. The true killer was Cain, and the reason for the murder could only be found in Cain's heart.

"In the days tha t followed the Columbine tragedy, I was amazed at how quickly fingers began to be pointed at groups such as the NRA. I am not a member of the NRA. I am not a hunter. I do not even own a gun. I am not here to represent or defend the NRA - because I don't believe that they are responsible for my daughter's death. Therefore I do not believe that they need to be defended. If I believed they had anything to do with Rachel's murder I would be their strongest opponent.

I am here today to declare that Columbine was not just a tragedy -- it was a spiritual event that should be forcing us to look at where the real blame lies! Much of the blame lies here in this room. Much of the blame lies behind the pointing fingers of the accusers themselves. I wrote a poem just four nights ago that expresses my feelings best.

Your laws ignore our deepest needs,
Your words are empty air.
You've stripped away our heritage,
You've outlawed simple prayer.
Now gunshots fill our classrooms,
And precious children die.
You seek for answers everywhere,
And ask the question "Why?"
You regulate restrictive laws,
Through legislative creed.
And yet you fail to understand,
That God is what we need!

" Men and women are three-part beings. We all consist of body, mind, and spirit. When we refuse to acknowledge a third part of our make-up, we create a void that allows evil, prejudice, and hatred to rush in and wreak havoc. Spiritual presences were present within our educational
Systems for most of our nation's history.. Many of our major colleges began as theological seminaries. This is a historical fact. What has happened to us as a nation? We have refused to honor God, and in so doing, we open the doors to hatred and violence.. And when something as terrible as Columbine's tragedy occurs -- politicians immediately look for a scapegoat such as the NRA. They immediately seek to pass more restrictive laws that contribute to erode away our personal and private liberties. We do not need more restrictive laws. Eric and Dylan would not have been stopped by metal detectors. No amount of gun laws can stop someone who spends months planning this type of massacre. The real villain lies within our own hearts.


"As my son Craig lay under that table in the school library and saw his two friends murdered before his very eyes, he did not hesitate to pray in school. I defy any law or politician to deny him that right! I challenge every young person in America , and around the world, to realize that on April 20, 1999, at Columbine High School prayer was brought back to our schools. Do not let the many prayers offered by those students be in vain. Dare to move into the new millennium with a sacred disregard for legislation that violates your God-given right to communicate with Him. To those of you who would point your finger at the NRA -- I give to you a sincere challenge.. Dare to examine your
Own heart before casting the first stone!

My daughter's death will not be in vain! The young people of this country will not allow that to happen!"
Do what the media did not - - let the nation hear this man's speech..

Facing The Economic Giants

It appears that we are facing a severe economic crisis, a crisis that many believe will be with us for several years, and several others believe will cause a depression that will take a decade or more to recover from. Regardless of the specific outcome one thing is for certain, your life will change. The prosperity of the nineties is gone and there are many giants that you must now face in order to cope with this crisis.

The Israelites faced giants of their own after they left Egypt and were told to trust God and move into the promised land of Canaan (Numbers 13 & 14). The Amalekites, Hittites, Amorites, and Canaanites occupied the land and they were strong and powerful, giants compared to the Israelites. The Lord wanted them to trust that He would be with them as they faced the giants, that He would not abandon them but cause them to be victorious over their enemies. The people rebelled and refused to trust God. They did not want to face the giants. In fact, they wanted to go back to Egypt and return to slavery, thinking that would be better than having to face the giants. God forgave them of their sin of unfaithfulness, but the consequence of their sin was that they would wonder the desert for 40 years. Only two men and their decedents would enter the land at the end of the 40 years, Joshua and Caleb, because they “had a different spirit and followed (God) wholeheartedly” (Numbers 14:24).

In order to face the giants of an economic downturn, the giants of a potential job loss, the loss of a discretionary income, the increase violence that is predicted to occur, the loss of conveniences and necessary supplies, the potential loss of a home, the loss of retirement savings, and so on, you must do several things:

1.) Trust God. Trust that God has not abandoned you but will be with you through whatever you face. God does not promise freedom from suffering but that He will be with us through the suffering. You may suffer greatly through these next years due to your own past poor choices, or because of the poor choices of a collective nation. Because our nation has abandoned God, He very well may have given us over to the consequences of our sin (Romans 1:21-32). Turning away from God causes minds to become futile and hearts to become darkened. This is what has happened to the US over the last few decades and now we have “trouble and distress” to face (Rom. 2:8-9). But to the believer, he promises His presence and guidance to see us through.

2.) Prepare. Placing your faith in God does not mean you become passive. Doing nothing and expecting God to bail you out is not faith but foolishness! The Israelites had to prepare themselves for battle! They had to physically train, prepare their battle weapons and gear, and strengthen their minds for war. So to you must prepare. You must get your finances in order, focusing on the preservation of capital. You must begin saving money and saving supplies. You would do well to read material that helps prepare you for worse case scenarios, such as Michael Panzner’s Financial Armageddon. As he says, “Assume the worst, hope for the best, and be prepared for whatever happens” (p. 143), and, “People will underestimate the severity of the dangers ahead and fail to take the necessary steps at the outset… being left penniless.” Preparation is key to successfully deal with a crisis. Many people will falsely blame God for abandoning them while the fault for their troubles lies squarely on their own heads! One of the most important things to do is to prepare your mind (Rom. 12:2)! Those who deny the crisis, maintain a rigid inflexible stance regarding living expectations, or believe they will be able to think on their feet and handle things as they come without proper preparation, could get so stressed out when reality hits that they literally fall apart.

3.) Execute. When wisdom or God’s spirit tell you to go, go! Many people will have regrets for not listening to wisdom or their own internal promptings. Faith is active. Faith requires risk taking. Faith requires change. Part of the Israelites problem was that they were not willing to push into change. Their failure was not only a spiritual failure to trust God, but a mental failure to properly deal with the Limbic brain. The Limbic part of our brain controls our emotions and desires. It likes patterns and routines best, so when change is required, you will feel fear and resistance because the Limbic part of your brain does not recognize the new pattern. It will tell you something is wrong simply because it does not recognize the new pattern and does not want to change. It will even tell you go back to an old pattern even if that pattern was very bad. This is why the Israelites wanted to go back to Egypt. It was bad, but at least it was familiar! A great book re: mental preparation is Victor Frankl’s book, Man’s Search for Meaning. He is a psychologist who survived 3-years in a German concentration camp. It is a fascinating read. As he says (paraphrased), “In times of crisis, life does not owe something to you but rather life is requiring something from you” (see also the quote from Lord of the Rings at the bottom of the post titled, “Wake UP!”). In order to deal with a crisis, you must push past internal resistances and execute change.

When we fail to trust God and deal with the giants in our lives, we end up wondering aimlessly for potentially many, many years, just like the Israelites. It’s best to face the giants and find freedom, confidence, security, and God’s pleasure in doing so.

Putting Our Hope in Keynes

President Obama and the Democrats are dealing with this economic crisis by following the economic theory of John Keynes, published in 1936. Much could be said about his theory, specifically that it really is unproven. In fact, textbooks in the 1980s used several pages to show how it was bad theory to follow and for a decade or more, it was considered a washed up theory. Now it’s back in vogue, and it fits perfectly with socialist agendas because it is viewed that the way to get out of a recession/depression is for the government to spend if people won’t (due to fear and wanting to save). Democrats now have a justification to spend away due to Keynes’s economic theory, and they are. The stimulus package is filled with pork, but it’s ok, this is what we need to do according to Keynes. Keynes model would say that by spending 700 Billion, you’ll raise GNP by 1 Trillion dollars. One economist says this is the first time in history that the theory is being tested to this degree. He is concerned that we are relying upon a theory that has never been proven and that we are taking a huge risk. If it works, Obama and Keynes win. If not, we’re all in huge trouble. Huge national debts must be paid back some day. As our currency becomes less valuable because of high national debt, interest rates will rise.

What’s additionally interesting is to consider the man himself. He was an elitist, bigoted, perverse man who believed Americans were idiots and that manipulating human genes to improve the race was a beneficial and imperative thing to do (a eugenicist). He lived an openly gay lifestyle for years before marrying a woman whom he stayed with until he died (I wonder what the pro-gay crowd that says you can’t change your sexual orientation think of that!). He hung out with upper-class liberals who promoted living with no moral constraints. But even among this group, Keynes was considered extreme in his behaviors and beliefs. His peers wrote that Keynes was too dirty even for them. He loved the spotlight and would say outrageous things just to get the attention of the press. He thought the only people smart enough to run a country, including the US, were graduates from Cambridge. Everyone was inferior. Great! We have a dirty, bigoted, elitist British snob setting the pace for our economic policy! Lord help us!

Reference: NPR: This American Life: The New Boss

Addicts and Enablers: US Citizens and the Federal Government

My brother made an interesting remark when he said that Americans felt so bad after 911 that they over spent to make themselves feel better. It’s parallel to a person using eating or shopping as a way of coping with stress. What an interesting insight!
I often say in counseling that often our biggest problem is not the problem or fear we have, but how we choose to cope with it. The strategies and solutions we implement to deal with “the problem” become bigger problems than the problem they’re trying to help. Becoming obese from using food as a stress reliever becomes a huge problem. Accumulating a large amount of debt from using shopping as a coping behavior balloons into a huge problem. Drinking to cope causes huge problems. These solutions are not helping a person, they’re just making things worse!
Maybe we were so traumatized by 911 that we (the government and citizens) spent away to try to make ourselves feel better. Now we need to pay off our debt, and like any reduction plan, starting and sticking to the plan is the hardest part. Will America make the commitment to get out of debt or will we just open up another credit card so that our lifestyle does not have to change? It appears that we just applied for another credit card, with a $1.5 Trillion dollar line of credit (the 2 Stimulus packages)!
There’s a saying in Alcoholics Anonymous that a person is not ready to change until he hits bottom, until he is so desperate for change that he’s finally ready to do the tough work required to change. By the accumulating evidence, America hasn’t hit bottom yet and is not ready to change. The government is just an enabler. Not only does the addict have to change (we the people) but the enabler (the government) must change as well. Obama, Pelosi, and the Democrats (if not most Republicans) are the nicest enablers in town, feeding the patient exactly want he or she wants, more money to fuel the addiction. The first step of the AA 12-step recovery program is to admit you have a problem and that you’re powerless to deal with it. Clearly, we are not there yet.

A MUST WATCH series

I just finished watching a series that was very informative and thought provoking. Chris Martenson, a trained scientist, having both a PhD from Duke University, as well as a MBA from Cornell in Finance, developed an educational series regarding the realities our world will face in the next 20 years. He focuses on three arenas- the economy, energy, and the environment, that are converging into a "perfect storm" of huge consequences. His training and expertise make him uniquely qualified. This is a MUST WATCH series. It will take you about 3.5 hours to complete in total. It is broken out into 20 individual segements, giving you the flexibility to watch as your time permits. He takes no political side, and his lectures on the environment are not about global warming. Our way of living is changing... rapidly... and we ALL need to prepare for these changes.
Go to chrismartenson.com or google "the crash course."

Wake Up! You must deal with what IS to survive this ECONOMIC CRISIS

In my counseling practice, I often use this phrase, “Deal with what IS!” People get themselves in trouble because they won’t deal with the realities of their lives. They hold onto to hopes that have no evidence to support they will come true, or plans (solutions) that they obsessively think will work. When an individual does this, they fail to deal with the facts that are before them. It’s chosen denial, or ignorance, or even insanity. It is much better deal with what IS, to deal with the facts and truth of a situation, relationship, or reality. In my work, I try to help individuals do this. For some, they get it and turn things around. For many others, they reject my counsel and continue to live in blind faith or cling to obsessive, faulty solutions that they are convinced will work. Ignoring reality can have serious consequences upon your life and the lives you influence! Therefore, it’s always better to deal with what IS!

“…and do not lean upon your own understanding… do not be wise in your own eyes…”
(Proverbs 3:5-6)

As a country, we are facing an economic situation that not only have we not seen since the great depression, but for two-hundred years! In England, they are going back 300 years! You think I’m crazy? The Bank of England’s interest’s rate is now at a 300-year low (Dohmen). It's best to deal with what IS! The longer you wait to deal with this reality, the more you could be hurt by it… just like in personal issues that I see in my practice.

The world market lost $60 trillion last year. That is a figure we can’t even fathom. C. Martenson illustrates this way: One million dollars would equal a stack of $1,000 bills 4 inches high. Notice, it’s a $1,000 bill, not a $100. One-billion dollars would equal a stack of $1,000 bills stacked about 360 feet high. One trillion dollars would equal a stack of $1,000 bills about 67 miles high! 67 miles! Now, multiply that by 60 and you’ll have an idea of how much wealth was lost last year globally. Oh, and by the way, the US debt obligations, both federal and state, are about $60 trillion (Martenson).

When I was a securities representative (“stockbroker”) in the mid-nineties, I always heard that 2009 would be a pivotal year for the economy because that is when the baby-boomers would begin to retire and pull their investments out of the market economy. It was predicted then that 2009 would bring in the era of bull markets, when the stock market would decline more than rise. What we didn’t know then was the impact of runaway credit upon the market. Never before in history have we seen so much money owed on credit, by governments, corporations, and individuals. It was the availability of credit that gave us the boom years of the 80’s, 90s and early 2000s. For example, from 2003-2006, 80% of the GDP growth (how much the US economy grows per year) was from mortgage refinancing! It was coined the “home-ATM” (Dohmen).

Credit spending is spending money from a loan of some sort. That is what we have been doing on the federal, state, corporate, and personal level for decades now. At the end of 2007, we maxed out. Now it’s time to pay for all that spending. But when we’ve been using debt to pay for things (once again, on a federal, state, corporate, and individual level), how do you pay for things when you can no longer get a loan? The Fed’s answer is to make more credit available so that more loans can be made and to keep the game going. But where does it end? You can’t keep doing this forever, can you? No you can’t, and during the last quarter of 2007 lenders began saying, “Enough! We can’t play this game anymore.” The end of this crazy, experimental game has arrived and this is the reason for the crisis. We can’t live in denial anymore. The house of cards can no longer be supported and has started to fall. We have lived far beyond our means, like never before in history, and now we must pay.

“But those who want to get rich fall into temptation and a snare, and many foolish and harmfuldesires which plunge men into ruin and destruction.

For the love of money is the root of all sorts of evil…”

(I Tim. 6:9-10 NASB)

Credit has dried up in an economy that is dependent upon credit. It first hit the banks last fall, now it’s hitting corporations and we will be seeing massive layoffs and bankruptcies this year. As people loose their jobs not only will they no longer spend, which will deepen the crisis further, but they will have less taxable income. Less taxes from corporations and individuals means less money for government. Next to greatly struggle will be local and state governments (Dohmen). Massive reduction in services will take place. In California, the Governor is proposing tax increases and additional fees. Expect a mass exodus from that state! Next to go will be small foreign governments, than larger ones. It’s already happening! Some Europeans countries tried to sell government backed bonds to raise money and they couldn’t get enough buyers (Dohmen). Dubai, the famous city in the middle of the desert currently building the world’s tallest building and largest indoor ski mountain, will become the symbol of hubris, of a world given over to insanity! Google Dubai and look at the real estate projects. It’s incredible… incredibly insane!

Is the US federal government immune from this? No! We’re at the top of the food chain, with Japan (due to their strong currency… for the moment), but eventually it’s going to effect us. Just like individual who can’t get a loan because of too much debt, a country can experience the same fate, even the US Federal Government! Keep your eye on foriegn countries. We are a world economy now so we need to watch whats happening overseas as well as in the US.

“They know nothing, they understand nothing. They walk in darkness”

(Psalms 82:5).

This downturn is going to be bad, potentially really, really bad! You need to prepare now! Don’t put your hope in the Federal government to solve this problem. It doesn’t matter who the President is, this problem is way too big to be fixed by one man or Federal spending (Dohmen, Martenson). In fact, all this government spending will make thing worse, not better. Our currency could be at risk of collapse by the excessive printing of money! You can’t just print money without consequences. It will become worthless and no one will want it. This has happened to the US before during the Civil War and times before. This is probably the biggest threat we face, yet the politicians from both sides of the isle are ignoring it, believing it will all turn around if we just throw enough money at it. Are they dealing with what IS? No! They haven’t been for decades and there’s no reason to believe they will now! They got us into this mess beginning decades ago, long before Bush and Clinton, who just made the growing problem worse.

The bottom line? Now is NOT the time to put your head in the sand and hope it will all turn around in a year or so. There is no credible evidence of that reality (Dohmen, Martenson). We are being lied to by the government and media so that we don’t panic. I’m not endorsing panic, but I don’t think ignorance is a wise option either. It’s time to investigate more, to read up on what’s really going on. It’s time to become a financially informed citizen. Read experts, people who are educated and who think outside the classic mindset. I’ve reference two that I think are pretty good, but there are more. Many a financial planner is leading his or her people astray! Don’t trust them just because of their title. I use to be one, and I know that many of them don’t have any idea how to handle a true crisis. They just push the party line, holding to beliefs that are based upon an expanding market… that to hold and wait for the upswing is the best bet. What if an upswing doesn’t come for years and years to come? Wouldn’t it better to deal with what IS than to wait and see, to hope on a future that is not credibly supported? Faith is based upon something solid, something that has shown to be legit and true. To exercise blind faith is not faith, but foolishness.

My advisor thought I was crazy to pull out when the DOW was at 9500. I couldn’t ignore the facts anymore and decided to park my assets on the side than continue to see them fall. I’m not telling you what to do. You have to make that choice… and get enough info. to do so… but don’t just sit around and hope for better days or trust one person’s opinion. That could be a very costly mistake! And don’t just trust CNBC either (the TV financial channel). There are some who are worth listening to, but as a whole, they probably are too optimistic and fearful of making the tough calls. When Jim Crammer of Mad Money told people in late September to sell 20% of their portfolio to be safe, critics thought he was crazy and only causing a panic. Turns out he was right, but most people on TV are not willing to stick their necks out like that.

We may entering THE end times as described in the Bible. I don’t know, but one thing is for certain, we are certainly in the end times of prosperity build on credit. Dealing with that reality, that IS, may very well feel like THE end times, even if it’s not. These are dangerous times. You need to draw closer to the Lord and to become a financially informed citizen. Be an informed citizen of both kingdoms, the Kingdom of God and the financial kingdom, so that you can speak with wisdom and lead yourself, your loved ones, and others through these impending dark times.

I leave with the wisdom of Gandolf… spoken to Frodo in the dark caves of Mornia-

Frodo: “I wish the ring had never come to me. I wish all of this would have past.”
Gandolf: “So do all who live to see such times, but that is not for them to decide.

All you must decide is what to do with the time you have been given.”
The Lord of the Rings: The Fellowship of the Ring

References:

Dohmen, Bert (2009). 2009: The year of pain, disillusionment and challenges. The Wellington Letter, 32(1). For subscription, see: http://www.dohmencapital.com/
Martenson, Chris (2008). The Crash Course. http://www.chrismartenson.com/