Tag: disaster

Financial Crisis Deferred?

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A few weeks back, we posted an article summarizing the very real fears of the World Bank and IMF about the upcoming Federal Reserve interest rate rise.

Since then we have been tracking updates as it happened on this page

It seems that two of these potential flash-points have been deferred till December.

1. Interest rate hike – deferred till December

Why is the world so worried about an interest rate hike?

Since the 2008 global financial crisis, many central banks have pumped money into the economy to create economic stimulus. That economic stimulus has failed unlike past occasions, but in the process it has also created a great deal of “cheap debt” – lots of high risk loans that are dependent on a low interest rate.

The IMF is concerned that once the rate goes up, that defaults will begin to occur around the world, and particularly in emerging markets.

But the problems don’t stop there. The Telegraph explains more:

2. US Government Shutdown – deferred till November

Congress may have averted a government shutdown until December 11, but lawmakers will be under the gun to raise or suspend the debt ceiling long before then.

Treasury Secretary Jack Lew said Thursday he now estimates that “on or about” November 5, Treasury is likely to exhaust special accounting measures that are keeping the country’s debt below its legal limit.

At that point, the Treasury Department would only be able to pay the country’s bills with the cash it has on hand — which Lew expects to be roughly $30 billion.

And that would not be enough to cover the bills on some days, which can amount to $60 billion.

“We anticipate that our remaining cash would be depleted quickly,” Lew wrote in a letter to House Speaker John Boehner.

Lew stressed if that happens, it would be the first time in the country’s history that the United States could not meet all of its obligations.

“There is no way to predict the catastrophic damage that default would have on our economy and global financial markets,” he added.

 

World Bank Warns that the Fed is about to cause “Panic and Turmoil”

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The US Federal Reserve is likely to lift interest rates for the first time next week in almost 10 years.

However, both the IMF and the World Bank have been consistently warning the US Federal reserve against such a decision.

“the World Bank and IMF are urging the Fed not to raise rates until 2016 because the U.S. economy isn’t strong enough yet”

– CNN money

Today, the World Bank stepped up its rhetoric:

The Federal Reserve will cause “panic and turmoil” if it raises interest rates in the next few weeks, the World Bank’s chief economist has warned.

~ The Telegraph

It was during this time that the Central Bank of Central Banks (The BIS) had also warned that the world is defenseless against the next Financial Crisis:

Further to this, the leading financial markets news site in the US (Wall Street Journal) reported the following as the Greece crisis began to unfold a few months back:

“Talk to almost any banker, investor or hedge-fund manager today and one topic is likely to dominate the conversation: It isn’t Greece.

The fear is that a Fed rate increase could unleash such disruptions on a grand scale.”

~ Wall Street Journal

The picture couldn’t be clearer; this is an event that has had many people worried for many months.

Will there be turmoil and panic next week? We dont know.

Many US evangelical pastors have been warning of a Shemitah collapse. Whether a financial crisis does or doesn’t happen, we have little reason to believe that there is any scriptural precedent for applying the Shemitah cycle to the US instead of Israel as it was originally intended.

One thing is for sure, this month wont be lacking in financial crisis flash points. Here are at least two coming up in the next few weeks:

  • The Greek Prime Minister is up for re-election on the 20th of September. Polls suggest that he wont be voted in as originally expected which will put the latest round of bailouts under significant risk. This could also be a flash-point for significant change in the geopolitics of the Eurozone.
  • Remember the Government Shutdown of 2013? Well the US House of Representatives passed a bill a few years back to end the crisis temporarily until the 30th of September 2015. Once again, republicans are gearing up to see if they use a shutdown as political blackmail.

Other posts about a Financial Crisis:

Isaiah speaks of a financial crisis which will end all monetary systems.

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As I write, Asian financial markets are easing from a night of financial turmoil in the US, although the Shanghai is still taking a beating.

The Dow Jones dropped 1000 points last night and closed down 588 which is the 8th biggest daily drop in the history of the Dow. It was also the first time that the Dow has ever fallen by more than 500 points on two consecutive days.

The Shanghai index had its biggest drop since the Financial Crisis, the Australian markets lost $70 billion yesterday and Europe also dropped at a record speed not seen since the GFC in 2008.

A big question hangs over the heads of world governments and experts alike – How bad can this correction get?  No doubt the next few days will tell.

However, what we have seen over the last few days, is a mere sneeze in global financial markets compared to the financial cataclysm which will hit around or after the return of Christ.

Isaiah gives us some insight;

The buyer will be like the seller,
the lender like the borrower,
the creditor like the debtor.

~Isa 24

This quote is one of many verses in Isaiah 24 which describes the state of the world after the return of Christ, and before He is enthroned in Zion. Its a state of affairs where the value of currency has become worthless, where the global economy and financial system have been destroyed.

Think of what that entails;

  • Collapse of equities, bonds & FX markets
  • Collapse of commercial and central banks
  • Collapse of government
  • Collapse of local & national economies
  • Collapse of small and large business

The message of Isa 24 is that that time will come. When, we ask?

There seems to be a precursor, a preface if you like to Isa 24, and that preface can be found in the Olivet prophecy.

There are at least four parallels between the Olivet prophecy and Isa 24 which begs the question, did Christ have Isa 24 in mind when he spoke to his disciples?

Luke 21 Mat 24 Isa 24
The Shaking of the Earth v11 – earthquakes in various places v7 – earthquakes in various places v19 – The earth is exceedingly shaken, violently broken, split open, reels to and fro.
Signs in the Moon and Sun v11 – signs from heaven v29 – the Sun will be darkened and the Moon will not give its light v23 – The Moon is disgraced, and the Sun ashamed.
The Gleaning of Fruit v30 – when they are already budding v32 – Parable of the fig tree – when the branch becomes tender and puts forth its leaves v13 – It shall be like the shaking of an olive tree, the gleaning of the grapes.
Mirth & Drunkenness v3 – Take care that your heart be not weighed down by carousing, drunkenness, cares of this life v38 – Eating and drinking and giving in marriage – until the coming of the son of man v7-9 – Merry hearted sigh, the mirth of the tambourine ceases. The noise of the jubilant ends, the joy of the heart ceaseth. They shall not drink wine with a song, strong drink is bitter to those who drink it.

Note that Christ alludes to aspects of Isa 24 in the future tense, whereas Isaiah speaks of these parallels in the present tense because Isaiah was speaking as he envisioned it.

But its not until we come back to Luke 17 that we find Christ expanding more on what the world would be like prior to its destruction. We find that the world will be generally prosperous;

And as it was in the days of Noe, so shall it be also in the days of the Son of man. They did eat, they drank, they married wives, they were given in marriage, until the day that Noah entered into the ark, and the flood came, and destroyed them all.

Likewise also as it was in the days of Lot; they did eat, they drank, they bought, they sold, they planted, they builded; But the same day that Lot went out of Sodom it rained fire and brimstone from heaven, and destroyed them all.

 Even thus shall it be in the day when the Son of man is revealed.

If we compare these phrases with Isa 24 they are a remarkable contrast;

Prosperity in Luke 17
 Destruction in Isaiah 24
v28 – “Eating and Drinking” v9 – “Strong drink is bitter to those who drink it”
v28 – “Buying and Selling” v2 – “As with the buyer so with the seller”
v28 – “Planting and Building” v7 – “The vine languisheth”

Luke 17 warns of general prosperity in the last days before His return. Isaiah 24 describes the devastation that has been brought upon the global economy after the return of Christ.

Lets not forget our Lords message to those living in prosperity in the last days:

Take care that your heart be not weighed down by carousing, drunkenness, cares of this life.

Massive Losses on Global Financial Markets.

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Overnight, the Dow Jones has dropped over 1000 points & the NASDAQ has dropped almost 9%

Luke 17 suggests that our Lord will return during a time of general prosperity.

And as it was in the days of Noe, so shall it be also in the days of the Son of man.

They did eat, they drank, they married wives, they were given in marriage, until the day that Noah entered into the ark, and the flood came, and destroyed them all.

Likewise also as it was in the days of Lot; they did eat, they drank, they bought, they sold, they planted, they builded;

But the same day that Lot went out of Sodom it rained fire and brimstone from heaven, and destroyed them all.

Even thus shall it be in the day when the Son of man is revealed.

Is that general prosperity about to cease? The next few days and weeks will tell

Watch the story unfold here:

The Dow has plunged 530 points

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CNN Money reports:

The Dow plummeted 531 points, concluding its worst week since 2011. Around the world, major indexes also fell for the week and most are negative for the month.

Three big factors are driving this week’s worries:

  1. Concerns are growing that China’s economy is slowing down faster than its government has said.
  2. Investors had been preparing for the U.S. Federal Reserve to raise its benchmark interest rate in September. However, the central bank has been sending mixed signals. That’s dredging out the market’s worst enemy: uncertainty.
  3. Oil prices dropped below the key $40 level for the first time since 2009.

Read more here: