IS IT ANY WONDER AMERICA IS IN SERIOUS ECONOMIC TROUBLE?

An explosive new analysis published by the Committee to Unleash Prosperity reveals that Democrat President Joe Biden’s administration has very few business-oriented officials in the administration and that the vast majority of people handling economic policy for the United States government under Biden have no business experience whatsoever.

The 15-page report is authored by economist Steve Moore and the executive director of the Committee to Unleash Prosperity.

Starting with both President Biden and Vice President Kamala Harris. Both of them have zero years of business experience. Attorney General Merrick Garland has zero years of business experience. Secretary of Agriculture Tom Vilsack has zero years of experience. Treasury Secretary Janet Yellen, Secretary of Veterans Affairs Denis McDonough, Secretary of Homeland Security Alejandro Mayorkas, Secretary of Labor Marty Walsh, Secretary of Health and Human Services Xavier Becerra, Secretary of Housing and Urban Development Marcia Fudge, Ambassador for Climate Change John Kerry, Office of Management and Budget director Shalanda Young, Secretary of Education Miguel Cardona, U.S. Trade Representative Katherine Tai, and many, many more have zero years of business experience.

Is it any wonder then that in less than two years the US has gone from a respected world superpower to a failing banana republic?  The supply chain, which has efficiently operated for 200 years, is purposely being dismantled, inflation is 9%, the price of gas has doubled, they have gone from an oil export nation to an oil-dependent nation, military leadership has gone woke, and along with the president and vice-president, are no longer respected.  The US Stock market had the worst six-month performance since 1872, and after two consecutive quarters of a sinking economy (which is the definition of a Recession), US market analysts, economists, and even the media are voicing concerns.  The Biden Administration’s answer to the problem is to redefine the definition of recession and raise federal income taxes on its citizens. 

As the world rejects God, His Word, and His values, as prophesied, lawlessness and chaos will escalate leading to a one-world government and the Antichrist. Already we are seeing the World Economic Forum and the U.N. agreeing on The Great Financial Reset. It is only a matter of time before we have a cashless society that will lead to the Mark of the Beast (Antichrist) when no one will be able to buy or sell without having the mark (microchip in the hand or forehead).

THE THIRD SEAL OF REVELATION INDICATES A WORLD FOOD SHORTAGE

Are we watching the governments and global billionaires intentionally trying to crash the economy? Are supply shortages, not enough workers, and hyper-inflation we see now going to cause the economic collapse seen in the 3rd Seal of Revelation?

THIRD SEAL FAMINE AND SCARCITIES

A QUART OF WHEAT FOR A DAYS WAGES & THREE QUARTS OF BARLEY FOR A DAYS WAGES

Are we headed toward that biblical event? What is causing these effects like the worker shortage and what can a Christian do about them right now to PREPARE for the Third Seal? Watch this episode of Last Days Breaking News with Nelson Walters to find out.

When he opened the third seal, I heard the third living creature say, “Come!” And I looked, and behold, a black horse! And its rider had a pair of scales in his hand. And I heard what seemed to be a voice in the midst of the four living creatures, saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and wine!” Revelation 6:5-6

WHAT TO DO NEXT AFTER COVID

In the video below Fulton Sheen believes the world and global economy have been forever altered by Covid-19.  Fear, lack of forethought and inaccurate statistics caused people, governments and businesses to overreact and make short sighted decisions with long-term consequences.  How will we move forward when the basic framework for predicting what will happen next, no longer exists?  Close on the heels of Covid and literally overnight, anarchy broke out and all of a sudden American citizens were declared to be racists and our police officers villains. All these things are sure signs that all things are being shaken.  Matthew 24, Luke 21 & Mark 13, all foretold of these events and warned us to be watchful, ready and prepared, we are also encouraged to be men and women who understand the times and know what to do.  The goal of this message is to define what happened, discuss where we are at the moment and what happens next.
(You can download a PDF with more of Fulton’s thoughts under the video)

q-2-the-post-covid-19-financial-world

FINANCIAL RESET INEVITABLE

How many of you read my post “Covid 19 Coupled with a Major Debt Crisis – What’s Next?” dated June 15th 2020? I thought this to be one of my most important posts for 2020. If you have not read it, can I suggest that you do.

In that post some of the best qualified economic/political pundits gave their views on the likely outcome of Covid 19 coupled with the existing debt crisis of most countries. Debt levels are so great that even with interest rates barely above zero, countries cannot pay down the debt. It also means their currencies are next to worthless.

A FINANCIAL RESET IS INEVITABLE WAS THEIR CONCLUSION

In Australia debt is rising fast. No government can stop the inevitable financial crash.

As you would expect, the combination of failing revenue and runaway spending has resulted in a boost to government debt with total government liabilities at $1.3 trillion by the end of May – $300 billion higher than expected.

Net debt has hit a record $463.7 billion compared to $373.6 billion in the previous financial year, virtually destroying the Morrison Government’s stated aim of clearing all government debt by the end of the decade.

The Finance Department numbers are sobering but few are arguing that the Federal Government has been spending too much – indeed much of the economic commentary is urging them to ramp up spending now that interest rates have effectively reached their lower limit and the economy still needs stimulus.

The key to how the Federal Government will react to such calls will be announced by Treasurer Frydenberg in an economic update in late July, with the 2020-21 budget now due to be released in early October.

This is all part of God’s end times scenario. If your trust is in governments, yourself, or anything other than God then it is misplaced. Only He can give you true peace, the peace that comes from realising that He is in control, He has revealed the truth about the world and us in His Word (BIBLE) and we know the end of the story. Jesus will return first to rapture His church and then to rule and reign 1000 years from Jerusalem.

“For the Lord himself will descend from heaven with a cry of command, with the voice of an archangel, and with the sound of the trumpet of God. And the dead in Christ will rise first. Then we who are alive, who are left, will be caught up together with them in the clouds to meet the Lord in the air, and so we will always be with the Lord.” 1 Thessalonians 4:16-17
“when the Lord Jesus is revealed from heaven with his mighty angels in flaming fire, inflicting vengeance on those who do not know God and on those who do not obey the gospel of our Lord Jesus… when he comes on that day to be glorified in his saints, and to be marvelled at among all who have believed, because our testimony to you was believed.” 2 Thessalonians 1:7-10

STOCK MARKET MADNESS

Chart of the Large-cap US Technology Companies. Why is it up 36% in the last two months?

qqq

Christian DeHaemer is the founder of Bull and Bust Report and an editor at Energy and Capital. Christian says he has no idea. As he explains, rational thoughts no longer apply. There was a time when creating money out of thin air was bad, much less creating $6 trillion or 25% of GDP.  

There was a time when 30 million unemployed was bad. One might think a new cold war with your largest trading partner, China, might be bad for stocks. Not to mention, a hundred thousand new dead bodies packing the morgues. But no, it appears that these things are good for stocks. Our thinking has been all wrong. It seems we need more broken stuff and more money printing. Forgive all the student debt. Bailout the universities. Give $2,000 a month to all the folks. A trillion for the airlines –– billions for Ford, Hudson, and Studebaker –– more for Carnival Cruise Lines and Blackrock. Bailout Chicago, Detroit, and West Cucamonga. Heck, all those municipal employees are good hard-working people. People like money and the Fed can just print it! Let’s give the people what they want. It will be fine… 

Christian is right rational thought no longer applies and commonsense tells you the outcome can’t be good. More government control is certain and no longer is the prophesied end times, “Mark of the Beast” fanciful.

HUGE PROPHESIED END TIMES SIGN

Is this how capitalism dies? Through decrees from what once were the ivory towers of capitalism, no less?

The Fed is now up to $6 trillion of liquidity, or free money in the sense that it is taking over the role of large banks at 0% interest.

Go global and we’re approaching $20 trillion of central bank pledges and action.

None of the questions that tempered the start of QE are being raised. There is virtually no one talking about moral hazard. What does it mean for our society that government is pushing so far into what was — and may never be again — the private sector? No one will bother answering.

There is no one standing in the way of the largest transfer of wealth in history. The firewalls built into the system are being torn down, and the free markets are dying with barely a whimper.

Even Deutsche Bank, undoubtedly a major beneficiary, seems concerned about where this is going. George Saravelos, global head of Deutsche Bank’s foreign exchange research, just wrote in a report entitled “The end of the free market: impact on currencies and beyond that:

“In a matter of weeks, policymakers have become a backstop for private-sector credit markets. At the extreme, central banks could become permanent command economy agents administering equity and credit prices, aggressively subduing financial shocks. It would be a bi-polar world of financial repression with high real economy volatility but very low financial volatility. A ‘zombie’ market‘.”

The Fed’s most recent announcement — $2.3 trillion in greatly expanded funding — goes as far as dipping into the junk bond market through buying up ETF shares.

A free market this is not. There is no version of capitalism that can divorce risk from profits. There is no version of this that forces society to shoulder the burden while a select few capture the profits.

Never before have we seen such centralised control. For the first time ever, can we see the world being set up for the prophesied Man of Sin (Antichrist) who speaks PEACE and PROSPERITY as long as you take his mark and give him control. Church do you realise where we are in Biblical history. When Jesus told us in the the Olivet Discourse, how it will end before His second coming, He specifically ended with, “SEE, I HAVE TOLD YOU BEFOREHAND” (Matthew 24:25). He told us beforehand so we would not be caught out and be taken in by this man of PEACE.

BIBLE PROPHESIES “END TIMES” CATASTROPHES

Even before this coronavirus outbreak, the global economy was really starting to slow down.  Economic numbers were absolutely dismal all over the world, and many experts were warning that we were right on the verge of the next global recession.

Now that this outbreak has erupted, we definitely have much more momentum in a downward direction. Very challenging times are ahead, although most people still don’t understand what is happening.

We are moving into a time when everything that can be shaken will be shaken.  The global financial system is on the precipice of utter disaster, we we witnessing great civil unrest and political shaking all over the world, the drumbeat of war grows louder and louder, weather patterns are going absolutely crazy and seismic activity is on the rise all over the planet. For born again, Bible believing saints, as events unfold exactly as predicted in God’s Word, it is confirmation that our Heavenly Father’s plan for Jesus to return and rule and reign on this planet for 1000 years is on track and not too far distant. Saints are you preparing to rule and reign with Jesus in the Millennium?

Japan’s biggest contraction in more than five years adds to escalating concerns among policymakers about the length of a likely recession in the world’s third-largest economy as the impact of the coronavirus and a plunge in oil prices causes markets to slide and the yen to gain.

Japan’s gross domestic product was already contracting badly in 2019. It had shrank at an annualised pace of 6.3 percent from the previous quarter in the three months through December, 2019. Economists surveyed had predicted a fall of 3.8 percent, flagging the adverse impact of a sales tax increase, weak global demand and typhoon disruption.

Consumer spending fell 11.1% after the national sales tax was raised in October to 10% from 8%. During the same month,Typhoon Hagibis ravaged a large swathe of the country.

Capital spending declined 14.1% and exports slipped 0.4% due to the fallout from the U.S.-China trade war.

“I’m getting ready for another contraction in Japan’s first quarter. There just aren’t any positive factors to build a positive growth forecast,” said Mari Iwashita, chief market economist at Daiwa Securities Co., flagging her view that the economy is likely falling into recession.

“There is a good chance of Japan’s economy falling into a recession,” Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute, said before Monday’s data was released. He flagged the risks of supply chains being affected if the outbreak was prolonged.

The coronavirus is taking a toll on the number of Chinese tourists to Japan and manufacturing activity due to the economy’s close ties with China, prompting some economists to forecast a contraction lasting two quarters.

The following is how Zero Hedge summarised the recent economic data that we have seen come out of China…

While not perfect, and certainly not a comprehensive view of what is really taking place “on the ground”, the above data is a useful real-time indicator of how the people in China perceive the threat of the coronavirus pandemic, and one thing is abundantly clear: as the pandemic spreads further without containment, and as the charts above flatline, so will China’s economy, which means that while Goldman’s draconian view of what happens to Q1 GDP is spot on, the expectation for a V-shaped recovery in Q2 and onward will vaporise faster than a vial of ultra-biohazardaous viruses in a Wuhan virology lab.

As far as the coronavirus is concerned, the key will be what happens to the number of confirmed cases outside of China.  Over the past week that number has roughly doubled, and if that keeps happening every week we will soon have a full-blown global pandemic on our hands.

THE MARK OF THE BEAST IS NOT TOO FAR OFF

The biggest asset bubble in history and booms always bust.

U.S Household Net Worth As A Percent of GDP - 11-07-19

In expectation of the next bust, there was this warning from the ‘central bank of central banks’…

Bank for International Settlements (BIS) chief Agustin Carstens has urged top central banks to preserve their ammunition for more serious economic downturns rather than deplete it chasing higher growth.

How much interest rate ammo does the IMF think the average central banker should have in reserve?

Severe recessions have historically required 3–6 percentage points cut in policy rates.

And as if we didn’t already know, the IMF tells us…

If another crisis happens, few countries would have that kind of room for monetary policy to respond.

Without the three–six percentage point buffer, how do our central banker bandits get out of this pickle?

Back in February 2019, the IMF released a paper titled…

Cashing In: How to Make Negative Interest Rates Work

The obvious problem with negative rates is that no one wants to be charged to deposit their funds with a bank…it goes against everything we’ve grown up with.

Better to take out the cash out and keep it under the mattress or in a safe-deposit box.

The banks are well aware that customers have this option…and have used this option.

This has been the experience in Europe. In their efforts to discourage customers from withdrawing cash, banks have been caught in a real bind.

The banks have elected to not pass on the negative rates to customer accounts…instead, they’re absorbing the costs. Not good for the bottom line. Hence, we can expect to see more Deutsche Bank scenarios; “European banking giant axes 18,000 jobs” BBC News,  10th July 2019.

The system has become so dependent on debt and central bank intervention that it’s incapable of functioning on its own.

The dire economic and social consequences of a collapsing system will force policy makers to act…do something, do anything.

And that something and anything, is most likely going to be deeply negative rates and the monetising of government deficits.

Modern Monetary Theory is nothing more than printing money to finance government deficits…allowing governments to go on an unlimited spend-a-thon.

Of course, we’ll be told this officially counterfeited money will be spent responsibly. The chaos we see unfolding in our time is exactly what God has told us in His Word will happen in the “end times”. Jesus said, “See, I have told you beforehand.” Matthew 24:25

Much of this post was taken from the article; “A Glimpse into the Future… It’s nor pretty” 10th July, 2019 by Vern Gowdie editor of The Rum Rebellion.

LIVING IN LA LA LAND

The World Economic Forum reported that in 2015, worldwide pensions were underfunded by $70 TRILLION. That is larger than the top 20 economies in the world, combined.  In the US alone, federal, state, and local government pensions are $7 trillion short on the funding they need to pay what they have promised.  And none of this includes Social Security’s almost $50 trillion of unfunded obligations.  And the private sector isn’t in great shape, either. US corporate pensions are a combined $553 billion in the hole. And one quarter of those funds are expected to go broke within a decade.” Simon Black Wall Street Journal

Well, as we enter 2019 the situation is worse and those in the know are preparing for a recession so may I suggest you prepare likewise. Get out of debt as quickly as you can.

There is much political turmoil across the world; the battle between globalism and nationalism is on centre stage and nationalism has clearly gained the upper hand.  There are many internal and external international conflicts going on at the same time, and even more agendas.

VENEZUELA: In the first few weeks of 2019, the US recognised the Venezuelan opposition leader who, along with the Venezuelan parliament, declared the current leader Maurado a usurper and himself to be the legal and rightful leader of the country.

GREECE: Greece is edging toward political uncertainty with the Macedonia agreement which is being rejected by various factions and is resulting in many internal conflicts.

Image result for pictures of political turmoil in France

FRANCE: French citizens have been demonstrating in mass for the last nine weeks and the government has capitulated to their demands.

ITALY: Italy ignored the EU and passed a budget which the EU condemned.

MIDDLE EAST: US sanctions on Iran is crippling the economy and could trigger drastic action. Israel has been carrying out military strikes on Iranian targets, and there is mass public unrest and demonstrations against the Iranian government. The US withdrawal of troops from Syria may only embolden Iran to step up its hostile actions. Beginning with Trump recognising Jerusalem as the capital of Israel and moving its embassy there, tensions in the middle east have escalated with direct missile attacks on Israel by Iran from Syria, provoking a stronger response from Israel. Iran sponsored attacks by Hezbollah from Lebanon and Hamas from Gaza will only heighten the tension and bring on the prophesied war in Daniel 8. For more on this, I suggest Mark Davidson’s book Iran’s Great Invasion.

CHINA: China has declared war on both its Christian & Islamic populations, attempting to eradicate these faiths, and if they deem it necessary, even the citizens who hold them.

The Chinese technology company Huawei and the Chinese government have been universally condemned, their business executives arrested in many nations for espionage, and the use of their services declared illegal.  Forbes wrote: “The arrest of Huawei CFO Meng Wanzhou in Canada last month for breaking U.S. sanctions law, followed by the firing of Huawei sales executive Wang Weijing in Poland last week shows China can be a bad actor, exactly as Washington believes. The Poland story centres around spying allegations, where Wang allegedly sought trade secrets from the government.’  China is losing the PR battle, for years, U.S. companies have been complaining that China does not honour intellectual property rights. Washington believes tech powerhouses like Huawei owe much of their growth to IP theft.” 

China’s growth estimates don’t look good and are getting worse.  They are clearly losing the trade war and its about to get a lot worse for them.  Quite simply, 90% of China’s GDP comes for exports, so the US affecting 90% of their trade with our country and exports account for only 15% of US GDP, thus China is only affecting 15% of our trade with them.  No matter how you look at it, the US easily wins any trade war between China and the US.

RUSSIA: The Russians and the Chinese have been pushed together into an uneasy alliance, something the US has always tried to strategically prevent.  The US has always attempted to work with China against Russia or Russia against China.  President Trump tried to do this with Russia to prevent an ever aggressive China from gaining more ground, but was prevented from doing so, by Congress and the inept Mueller investigation.

“And you will hear of wars and rumours of wars. See that you are not troubled; for all these things must come to pass, but the end is not yet. For nation will rise against nation, and kingdom against kingdom. And there will be famines, pestilences, and earthquakes in various places. All these are the beginning of sorrows.” Matthew 24: 6-8

The current world situation, with an unprecedented economic crisis, governments now unable to resolve the mounting political unrest, increasing God ordained natural disasters, apostasy in the church, all indicate we are in the Biblical prophesied “end times” Can I suggest you prepare for Jesus return by going to my other website http://www.powerpointsermons.net  and download the Power Point Sermon Are We Ready for Jesus – How to Prepare for His return.

 

CHURCH – PREPARE FOR ECONOMIC CRASH

Further to my previous post which looked at who owns global assets, this post looks at the appetite for investment and the fact it is heading into panic territory.

The Global Risk Appetite Index compares the performance of 64 global assets to judge how willing or unwilling investors are to take additional risk. The index last entered panic territory in October of 2015, when global recession seemed a threat as China’s capital markets threatened to meltdown.

This time around, the issues are manifold: trade disputes, the Italian budget, Fed tightening and emerging market turbulence all “contend to be the main driver of this risk appetite slump”, the Credit Suisse analysts write.

Some big investors are taking action. Check out this chart:

It shows that some very big guns are starting to cut exposure to stocks.

According to the AFR this week, the behemoth that is Australian Super just cut back on local and international equities. Could this be the start of the giant, global ‘risk-off/sell off

Church are you preparing for what’s coming? It will be church as described in the Book of Acts that will be a blessing.

“Now when the multitude of those who believed were of one heart and one soul, neither did anyone say that any of the things he possessed was his own, but they had all things in common. And with great power the apostles gave witness to the resurrection of the Lord Jesus. And grace was upon them all. Nor was there anyone among them who lacked; for all who were possessors of lands, of houses sold them and brought the proceeds of the things that were sold, and laid them at the apostles feet; and they distributed to each as anyone had need.” Acts 4: 32-34