Bible Prophecy and Why It Matters. “The Coming Economic Collapse, Reset and How to Prepare”. Part 2
Firstly, I want to say I am not giving financial or investment advice and this blog is for educational purposes to help you understand the current events and what I strongly believe is soon coming after over 10 years of broad and extensive research. I am also quick tell you I do not see 100% clearly, nor will I ever go down the road of foolish predicting timing; but what I can tell you from my heart and my research I believe things will change dramatically in the near future (meaning could be days, months or the next year or two). I think it is extremely important to discern our times economically and develop a solid plan. But, before we do that I will cover the most probable things that will begin the next crash of the global financial system as we know it. Most likely it will be a combination of the below described circumstances created by central banks and governments.
• Geopolitical Risks are growing and tensions between East and West superpowers are nearing a boiling point. Hopefully cooler heads will prevail.
• Trade Wars have historically often transitioned into to physical wars when the tensions between nations becomes too great. These are lose-lose government created dilemma’s; sadly, we are in the midst of a significant trade wars between west/east Nations predominantly.
• Cyber warfare will be a precursor to actual war and serious cyber attacks happen in the thousands weekly. Thankfully all major countries have counter cyber teams protecting all major infrastructure and financial markets; however, a hole in a countries system can create huge havoc. This is a very serious global problem!
• The flattening of the yield curves in the US Bond markets. Because the US bond market is the largest in the world, what happens in the US markets effects the entire financial world. This has been a very accurate warning sign of a major recession or crash is coming. This is the current reality as the spreads between 30-year, 10-year and 2 -year yields continue to become closer and closer in yield. If the 30- year yield inverts and provides a smaller yield than the 10-year or even 2-years we have a serious problem. This tells markets that big investors/funds do not trust the US Government and big problems are on the horizon!
• As yields go down and interest rate rise this causing SERIOUS Problems in the Bond markets. For ever 1% rise in interest rates, this cuts the value of existing bond values by approximately 50%...that is a huge problem since all major pension plans have significant exposure to bonds.
• There are EXTREME problems in underfunded PENSIONS globally. With the massive baby boomers retiring and poor management by many governments there is an estimated four hundred TRILLION short-fall over the next 2 or 3 decades. This will create all kinds of serious social issues as the elderly will not be able to afford to live. This is already happening in countries like Japan.
• If you listened to Mike Maloney’s video, you already know how over-valued the stock, bond and real-estate markets are…the BIG THREE BUBBLES. All bubbles pop, and this time will NOT be an exception. Honest math always wins the day eventually and fair market pricing normalizes! This mean BIG drops from current pricing. I have a friend in Calgary, AB, who is a cycles expert. I recently called him to ask where we are in financial markets and the cycles based on his research. He said, “we are every near to the market top (he felt May)”. Then I asked Peter, “how far do you believe the 3 bubbles will collapse in price?”. He said, “90% fall in stocks, bonds and real-estate”. I have heard other respected financial experts have similar opinions. No one knows 100% for sure including me, however, whether it is 70% or 90% I do believe it will be BIG and BAD for most people. Taking action BEFORE the FULL CRASH is critical!
• Major banking crisis. We are seeing incredible stresses in the EU banking system with too many bad loans and huge leverage created by the banks themselves. All banks use fractional reserve banking practices; which allows them to create DEBT out of thin air and loan it out. The second major problem is that many banks globally are using extreme leverage (derivatives) to chase huge profits. Many people are NOT aware that the 2008 financial Great Recession was initially triggered by both Bear Sterns and then Lehman Brother’s who where using derivatives that went against them and they became insolvent. The next domino to fall were the deceptive CDO’s and then the real-estate followed. Every month I hear of several banks in trouble, especially in the EU right now!
• Fiat Currency Crisis’s have happened 100’s of times historically; especially when governments remove hard assets like gold and silver from backing their currency. Since 1971 ALL Fiat Currency worldwide have NOTHING backing them, and all are created by central banks “out of thin air” and they get to charge you interest on all borrowed money! Let that sink in. When people realize their government has created too much currency and they lose confidence in the fiat dollars their currency collapses. Paper money returns to it intrinsic value of “0” and there is NO exception in all of human history. Just observe what has happened in Venezuela in the last few years, it is tragic with the social breakdown, violence and hyper-inflation. That is what happens when a fiat currency fails.
• I remember about 10 or 15 years ago, we were having once very 50-year extreme weather events or earthquake/volcano events, etc. Then after a couple years later it became common to hear of 100- year weather events. In the last few years it has not be uncommon to hear the weather analysts talk of 500 or 1000- year historic extreme weather. If a country has too many of these types of multi-billion dollars crisis it can seriously impact the economy of that Nation and trigger an even bigger financial crisis. I lived in Calgary Alberta a few years ago when we experienced a 500- year flood event. The damage was crazy and over 100,000 people in the city had to evacuate their homes. I believe in the end it was the costliest natural disaster recorded in Canada’s history with over a 5-Billion-dollar price tag. Think of poor southern Texas and Houston last year.
• Then there is a the “Black Swan Events” which comes out of left field that nobody saw or predicted. It could be an asteroid smashing into the earth, an EMP attack or an earthquake of 10 on the Richter scale in a highly populated region or a super volcano. All through history and frequently recorded in the Bible, these types of extreme and not known circumstances have taken down Nations and even Empires.
So, what I am really telling you is there are dozens of realistic possibilities of what will trigger the next global market crash. I have only mentioned a few. Because I am actively and daily monitoring these types of things, what I can say is they are becoming more frequent and intense. One of the analysts I have followed for years who is brilliant and a prolific bestselling author is Jim Rickards. One of his frequent sayings is “the snow flake phenomena” and he says no one knows which snow flake will trigger the avalanche. He uses this in context of the next market crash, and I agree with him. But Jim is also on record of saying that a serious financial crisis is at hand, as well as over 150 plus experts I follow.
One day in the future we will both awake and our world will dramatically change. It will not be the end of the world, but for many who are not walking closely with Jesus it just may fell like it. How we have done business, banking and daily transactions for goods will change. Our current system in seriously broken which has become the greatest DEBT BUBBLE in of our human existence. All financial markets are rigged and manipulated by the powers to be. You cannot create sustainable wealth by incessant DEBT, nor provide a healthy and balanced economy. Free markets and capitalism is an illusion for the most part. Finally, I have never believed you can solve a debt crisis with more debt. Though central bankers and governments keep trying; these fiscal and monetary experiments ALWAYS END BAD for the regular person. If you are not AWAKE yet, I truly pray you wake up and start preparing.
I will transition in my next blog Lord willing on the coming RESET. Then I will conclude with what is most important to know and how to prepare before the next BIG ONE. It will truly be EPIC due to the massive global debt levels and as a hint “get out of debt as fast as you can and stay out of debt”. Pay cash or do not buy it period.
From a friend, Bill W…if you have found these studies insightful and encouraging pass them on to a friend! Maranatha…Our Lord, come!