Sound The Trumpet : Is Economic Collapse Imminent?

Must Listen

Must Read

What Art Thinks

Pre-Millennialism

Today's Headlines

Sorry... Not Available

Locally Contributed...

Audio

Video

Special Interest

Daily News

25219

“Is Economic Collapse Imminent?”
by Prophecy News Watch
November 18th, 2014

Will the U.S and the global economy survive the end of Quantitative Easing (QE)? Or will the stock market plummet as a result, finally pushing the financial markets over the edge? The pattern since 2008 stocks is that stocks have risen dramatically throughout every stage of quantitative easing, but have always declined substantially when the various QE phases have ended. These progressions over time have been demonstrated by charts based on the S&P 500 market index.

Michael Snyder, in a recent report for the Economic Collapse blog, laments: “…many Americans still don’t understand what quantitative easing actually is. Since the end of 2008, the Federal Reserve has injected approximately 3.5 trillion dollars into the financial system. Of course the Federal Reserve didn’t actually have 3.5 trillion dollars. The Fed created all of this money out of thin air and used it to buy government bonds and mortgage-backed securities. If that sounds like “cheating” to you, that is because it is cheating. If you or I tried to print money, we would be put in prison. When the Federal Reserve does it, it is called “economic stimulus”.

Snyder argues that to make matters worse, the overall economy has not been helped much at all by these QE phases; rather what all of this “easy money” has done is fuel “the greatest stock market bubble in history”, unbacked by economic fundamentals in any way, shape or form. Matters are not helped by the deflationary pressures already said to be starting to take hold around the rest of the globe. He concludes that the Federal Reserve and other global central banks have merely put off the inevitable and made long-term US problems even worse by printing money to postpone a global deflationary depression.

Other key symptoms of the underlying economic disease can be seen in the banking sectors where:

• The European Central Bank (ECB) says 13 of Europe’s 130 biggest banks must increase their capital buffers against losses by 10 billion euros ($12.5 billion);

• Right now, the “too big to fail” banks account for 42 percent of all loans and 67 percent of all banking assets in the United States that are an integral part of the U.S economy. Five of these banks each have more than 40 trillion dollars of exposure to derivatives.

Snyder concludes: “The big banks have transformed Wall Street into the biggest casino in the history of the planet, and there is no way that this is going to end well. A great collapse is coming. It is just a matter of time.”

Predicting similarly dire outcomes, the Guardian.com puts it this way: “The concerns raised by the Fed’s stimulus still exist: has it helped the economy? (Probably, but not enough). Has QE made banks more profitable? (Yes, and that will continue). Has QE created an expectation that the Federal Reserve can now meddle in the markets with trillions of dollars of muscle, complicating things for normal money managers? (Yes, and that expectation, too, will continue).

In other words, by ending QE, the Fed is not filling up the financial hole left by its stimulus. It has only stopped digging itself deeper… With the upcoming challenge of its exit, QE is proving a truth of even the most well-intentioned bailouts: getting the financial system out of trouble doesn’t mean ending a crisis for good; it means only delaying the reckoning until the economy is strong enough to take it.”

The trouble seems to be that there is no guarantee that the economy will be strong enough any time soon, or that it will ever recover in good enough time to avert a national and global economic disaster.

Other analysts also agree that a global economic crash is imminent, but emphasize other contributory factors. An example is financial expert James Rickards, quoted in a recent edition of rt.com suggesting that the desire of powerful countries such as Russia and China to break free from reliance on the U.S dollar as the world’s reserve currency will be a major catalyst towards the predicted economic collapse. Rickards sees a transition to gold and eventually Special Drawing Rights (SDRs) as viable alternatives emerging as the new world global currency after “the death of the dollar”.

So what would such an economic crash look like, and what would it mean to the average family? A report from infowars.com earlier this year suggests that “primary events” would include: major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US dollar. “Secondary events” would include: increased unemployment, currency controls, protective tariffs, severe depression, travel restrictions, confiscation of wealth, food shortages, squatters rebellions, riots, and martial law.

In a nutshell, economic mayhem and chaos, followed by hardships at virtually all levels of life and society, which will then be brought into control by martial law and a centralized economic system, certain to be assisted by the advanced biometric and RFID technologies available today. That’s one clear roadmap to the fulfillment of the prophecy of Revelation 13:16-18:

He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.

Looking for His glorious appearing! Titus 2:13