Aug 192016
 

Zero Hedge: “As Singer admits in Elliott’s Q2 letter to investors, what the fund, up 6% YTD, is seeing, is “the most peculiar period we have faced in 39 years.” The details are familiar to those who have read Singer’s previous laments (most recently here) on central planning: too much central bank power, too much monetary debasement, inevitable inflation, and “when it happens it could be swift and impossible to tamp down.”

Not surprisingly, Singer touches on a very popular topic in a world of nearly $14 trillion in negative yielding bonds, namely the scramble for safety, and surprised by the “continued stampede” to buy such bonds, he says that today’s environment marks “the biggest bond bubble in world history”, leading him to declare that “the global bond market is broken.”

Opinion: Paul Singer is an American hedge fund manager, activist investor, and philanthropist. His hedge fund, Elliott Management Corporation —specializes in distressed debt acquisitions.

Paul Singer, like most investors, is perplexed. How can the equity and bond markets continue rising on printed (fiat) money?

How can the Fed raise interest rates, when the only rise in a decade was .25%, and it almost cratered the equity and bond markets?

Typically, stocks and bonds go in opposite directions making balanced mutual funds a safe conservative investment. But is anything safe if interest rates were to suddenly rise because foreign investors lack faith in US monetary policy?

Newsflash: Both US presidential candidates are talking of increasing debt.

Bible prophecy students know that at some point there will be a sudden global economic collapse (hyperinflation) like Paul Singer is worried about, albeit for different reasons.

Bible Prophecy students also know that a financial collapse is prophesied in the third rider of the apocalypse (Rev. 6:5-6) meaning that the advent of Antichrist (Rev. 6:1-2) and war (Rev. 6:3-4) will have already occurred.

And Dispensational Theology students can be confident that before the judgments of Revelation 6, Jesus gave John the words of Revelation 3:10 “Because you have kept My command to persevere, I also will keep you from (Greek ‘out of’) the hour of trial which shall come upon the whole world, to test those who dwell on the earth.”

As Paul, the Apostle to the early Church, said “Comfort one another with these words”.

(Thanks to Vason for sending this in)

Share

Fed's Mester Says Helicopter Money "The Next Step" In US Monetary Policy

 Election 2016, End Times, Finance, GLOBAL ECONOMY, National security, New World Order, QE, US Economy  Comments Off on Fed’s Mester Says Helicopter Money “The Next Step” In US Monetary Policy
Jul 142016
 

sheister

Zero Hedge: “Think “helicopter money” is/will be confined only to Japan, which has been sending conflicting trial balloons about this unprecedented next step in monetary policy for the past two days (first Japan’s Senkei reported that the government will be adopting “helicopter money” followed by a government spokesman denying the report, then followed by a separate Bloomberg report about a 10T yen stimulus plan, the concluding with Abe advisor Koici Hamada saying that “boosting fiscal and monetary stimulus at the same time would be effective” in Japan)? Think again.

Speaking overnight in Australia, the Fed‘s Loretta Mester said helicopter money” could be considered to stimulate America’s economy if conventional monetary policy fails.”

ddrop

Opinion: That from the same Federal Reserve that says the economy is doing well enough to consider raising interest rates.

Time to review some definitions:

  • Inflation – a general increase in prices and fall in the purchasing value of money.
  • Deflation – a general decline in prices, often caused by a reduction in the supply of money or credit.
  • Hyperinflation – price increases are so out of control that the concept of inflation is meaningless.
  • Quantitative Easing (QE) – monetary policy/printing money that is  used by central banks to stimulate the economy when standard monetary policy has become ineffective.
  • Helicopter drop, also known as helicopter money, is a hypothetical tool of monetary policy that involves printing large sums of money and distributing it to the public in order to stimulate the economy.

Helicopter money was first coined by famed economist Milton Friedman in 1969, and repeated by former Fed Chairman Ben Bernanke in 2002 as a tool to fight deflation.

So three rounds of QE didn’t work, a decade of zero interest rates didn’t work, and negative interest rates are not working in Europe; instead of fixing the problem by making government spend only what it takes in, another scheme of giving away money is making the rounds.

It won’t work either. It will create an even bigger mountain of debt that cannot be paid back and make existing money worth much less.

At the risk of repeating myself, these schemes are setting the stage for an economic shock. I don’t mean to run out and sell assets because I really don’t think that when the big collapse comes we will be here.

Revelation 6:5-6 comes after Revelation 3:10, 4:1, 6:1-2, 6:3-4.

Maranatha

Share
Jun 142016
 

negativity

CNBC: “The yield on the 10-year benchmark German bund fell into negative territory for the first time ever on Tuesday morning, amid global growth concerns and jitters over the U.K.’s upcoming referendum on its European Union membership.

At around 8.30 a.m. London time, the yield hit zero and briefly fell into negative territory as investors continued to flock to safe-haven assets. Bond prices and yields move in opposite directions and a negative yield implies that investors are effectively paying the German government for the privilege of parking their cash.

A spokesperson for the German Federal Debt Agency spoke immediately after the milestone was reached, stating that the tradability of federal securities is “still very high.”

Opinion: The effects of Socialism/open immigration are killing the biggest economy in Europe.

List of nominal GDP for European countries (in billion USD)
2014 Rank Country 2010
1 Germany 3,418.371
2 United Kingdom 2,409.409
3 France 2,651.772
4 Italy 2,130.586

The 10 year bond is the benchmark used to gauge the health of the economy of a country:

10-Year Government Bond Yields
Country Yield 1 Day
Germany » -0.02% -4
United Kingdom » 1.15% -6
France 0.39% -1
Italy 1.49% +4

By contrast the US Treasury 10 year yield is 1.6% placing the economic health of the US just above Italy.

The causes of the 2007-9 economic recession were covered over by dishonest politicians and central bankers using money printing schemes that created a mountain of debt and a manufactured economic recovery.

In Revelation 6:5-6 John prophesied what looks like hyperinflation. John said it would take a day’s pay to feed a person that could be caused by the sudden collapse of one or more reserve currencies.

“So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand.  And I heard 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 the wine.” Rev 6:5-6

The stage is being set.

Share
Jun 062016
 
Divine Retribution as Paris Middle-East Conference Gets Flooded

BIN: “Divine retribution struck Thursday nights as world powers gathered in Paris for talks that could end in attempts to pressure Israel to accept a Palestinian state. The conference ended and a divine reaction was almost immediate as the Seine River rose 20 feet overnight. Parts of the Metro system shut down, as did major landmarks. The

[...]
Share

ECB’s Draghi Fears ‘Entrenched’ Low Inflation Despite Stimulus Measures

 Bible prophecy, End of the age, EU, GEO POLITICS, GLOBAL ECONOMY, New World Order, US Economy  Comments Off on ECB’s Draghi Fears ‘Entrenched’ Low Inflation Despite Stimulus Measures
Jun 032016
 
ECB’s Draghi Fears ‘Entrenched’ Low Inflation Despite Stimulus Measures

Investors: “Mario Draghi unveiled largely unchanged inflation forecasts for the euro zone even as its latest stimulus measures start to take effect, and called on governments to play a bigger role in cementing the region’s pickup. “The economic recovery continues to be dampened by subdued prospects in emerging markets, the balance-sheet adjustments in a number

[...]
Share
Jun 022016
 
To Brexit or Not

Breitbart: “CNBC senior contributor Larry Kudlow discusses the British vote to exit the European Union with Breitbart News Daily, as SiriusXM host Stephen K. Bannon noted the vote for exit is now ahead by a few points in some polls, producing a “tectonic plate shift and shockwave in London. “In terms of Brexit, I think

[...]
Share
May 252016
 
State Dept. sets single-day record for Syrian refugee approvals, renewing security fears

The Washington Times: “The State Department admitted 80 Syrian refugees on Tuesday and 225 on Monday, setting a new single-day record, as President Obama surges to try to meet his target of 10,000 approvals this year — sparking renewed fears among security experts who say corners are being cut to meet a political goal. Officials

[...]
Share
n2 sh