Bloomberg: The Epic China Meltdown

 Bible prophecy, Economy, End Times, EU, Finance, QE  Comments Off on Bloomberg: The Epic China Meltdown
Jul 112015
 

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Bloomberg News: “The Shanghai Stock Exchange Composite Index has lost 28 percent since its peak on June 12, the worst selloff in two decades. About $3.9 trillion in market valuation has evaporated, more than the total annual output of Germany—the world’s fourth-largest economy—and 16 times Greece’s gross domestic product. The benchmark is still up 82 percent in the past year, the most among the world’s major markets.

As shares tumbled, companies rushed to apply for trading suspension. More than 1,400 companies stopped trading on mainland exchanges, locking sellers out of 25% of the market. The China Securities Regulatory Commission also banned major shareholders, corporate executives, and directors from selling stakes in listed companies for six months.”

Opinion: Traders report that the Chinese brokers are refusing sell orders.

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Control. I never thought this could happen on such a large scale and at the same time be so obvious . Governments and central bankers are in collusion to control markets.

It is very simple to do if you refuse sell orders, make short-selling illegal and suspend 1400 stocks from trading on the Shanghai Stock Exchange. It also makes it very easy to hide government scandals and their cover-ups when equity markets are being propped up by electronically created money – and the wealthy get much wealthier.

So when the four largest economies and their central bankers (USA, EU, China, Japan – not necessarily in that order) decide to end the bull market party, it will end in a big way:

There are several viewpoints among our readers on the timing of the Black Horse Rider of Revelation 6:5-6, as well as an interesting theory that the black horse has already appeared (The Seven Seals in Prophecy and in History).

And we have different opinions as to whether the rapture is pre or post-trib, but what is becoming abundantly clear is who will set the economic calamities in motion.

The dynamic duo is not Batman and Robin but presidents and bankers.

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Mario Draghi Doubles Down On Eurozone Failure

 Bible prophecy, Economy, End Times, EU, Finance, National security, QE  Comments Off on Mario Draghi Doubles Down On Eurozone Failure
Jan 232015
 

euroInvestors Business Daily Op-Ed:Economics: Despite the opposition of the European Union’s most powerful nation, Germany, the European Central Bank has launched a massive quantitative easing program. It’s not what the stagnant EU needs.

Yes, markets rallied on the news, largely cheering the fact that someone, anyone, seems to be doing something about the eurozone’s fast-deflating and slumping economy. But the giddiness isn’t likely to last.”

Opinion: 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 – Sudden price increases out of control rendering the concept of inflation meaningless.

Central bankers are convinced that the world’s economies are deflating and it is their job to jump-start inflation. In order to make controlled inflation happen, bankers have been experimenting since 2008 with quantitative easing (QE), or creating money to buy back the nation’s debt (bonds).

When bonds are purchased in massive quantities interest rates go down, and conversely when bonds are sold in massive quantities interest rates go up.

Yesterday, Mario Draghi, the European Central Bank president announced a new QE of bond purchases to the tune of 60 billion euros per month. Draghi, whose name translates to dragon, is a Harvard educated, Goldman Sachs banker who is either lying or ignorant of the commonsense economic principles regarding counterfeit money.

Someday the bill for the created debt will have to be paid. Economies have two natural cures for excessive government: spending and debt.

Recession: period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Depression: a severe and sustained long-term downturn in economic activity; an extreme recession that lasts two or more years.

The recession of 2008-9 should have resulted in depression. Government tinkering in the housing market forced lenders to sell mortgages to people who had no hope of paying them off, packaged up those mortgages and sold them to banks all over the world.

But, instead of allowing the depression to cleanse the market, government tinkered again and created more money called stimulus, or QE.

Chairman Draghi’s new QE caused euphoria yesterday in the world’s stock markets, much like a 5 year old on too much sugar.

Someday, that 5 year old will get a real bad tummy ache.

Hyperinflation is sudden and prophetic, Revelation 6:5-6.

 

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Jan 172015
 

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Investors Business Daily Op-Ed: “Currency Crisis: The abrupt move by Switzerland’s central bank to remove the cap on the franc-euro exchange rate has created turmoil from Europe to Wall Street. This is what you get when monetary policy runs amok.

The move caused an unprecedented 18% one-day surge in the Swiss currency’s value against the euro. Since Switzerland’s franc is one of the world’s major currencies, the sudden surge has impacts far and wide.

Opinion: On November 30, the Swiss population overwhelmingly rejected a referendum to force the Swiss National Bank to hold some 20% of its reserves in gold in a landslide vote, with about 78% voting against what AP politely termed “protecting the country’s wealth by investing in gold.”

The biggest winner, of course, was the Swiss Central Bank who was then free to print money in the same way that the European Central Bank, the Bank of Japan, and the US Federal Reserve have done since the start of the great recession of 2008-9.

When a nation’s currency is pegged to gold, money printing is prohibited.

The move this week by the SNB to un-peg the franc from the euro caused an 18% rise in the nation’s currency, making the country’s exports much more expensive which will severely damage their tourism business.

Swiss interest rates plunged making bank deposits an unbelievable negative .75% return to depositors.

Bottom line: Switzerland, like every nation on earth, has unsustainable debt that causes a drag on growth due to constant increases in income taxes.

Central bankers began experimenting with money printing to stimulate economic growth. The result is even more debt, still sluggish economic growth and high unemployment.

The US has fared better (the best horse in the glue factory) mostly because of fracking, which makes energy cheaper and the dollar stronger, despite crushing debt.

Common sense dictates it won’t work. The Bible confirms in Revelation 6:5-6 that it won’t work and at some point and for some still unknown reason, global currencies will all come crashing down forcing the world to agree on a global electronic currency exchangeable only under the control of a still unknown dictator.

Isn’t it fascinating to watch it unfold (Isaiah 46:10)?

 

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If QE Works, Why Has It Failed to Kick-Start Inflation?

 Bible prophecy, Economy, End Times, Finance, Jesus Christ, National security, New World Order, QE  Comments Off on If QE Works, Why Has It Failed to Kick-Start Inflation?
Jan 052015
 
If QE Works, Why Has It Failed to Kick-Start Inflation?

Zero Hedge: “Quantitative easing (QE) was supposed to stimulate the economy and pull us out of deflation. But the third round of quantitative easing (“QE3″) in the U.S. failed to raise inflation expectations. And QE hasn’t worked in Japan, either. Opinion: Perplexing? Not really. In simple terms, two of the economists in the article have

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Dec 312014
 
“Everything is Awesome” in America? So Says Liberal Writer

The New American: “Everything Is Awesome!” is the title of a recent Politico piece on the American economy by liberal Michael Grunwald. And although it’s not followed by LEGO song lyric “Everything is awesome when we’re living our dream,” some would say he certainly is dreaming. Much like the children’s movie Grunwald seems to be

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Swiss Central Bank Enters NIRP, Sends Deposit Rates Negative

 Bible prophecy, Economy, End Times, EU, Finance, National security, QE  Comments Off on Swiss Central Bank Enters NIRP, Sends Deposit Rates Negative
Dec 182014
 
Swiss Central Bank Enters NIRP, Sends Deposit Rates Negative

Zero Hedge: “Everyone thought that any major monetary policy surprises and/or capital controls today would come from Putin during his annual press conference. Boy were they wrong: just after 2 am Eastern, none other than the Swiss National Bank joined the ranks of the ECB in scrambling to stem the wave of capital flight, not

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Dec 132014
 
Boehner’s Spending Deals Increased Debt $3.8T in 3.8 Years

CNS News: “The federal debt has increased by $3.8 trillion in the 3.8 years that have passed since House Speaker John Boehner cut his first spending deal with Senate Democrats and President Obama. That works out to $32,938.38 for every household in the United States—including those taking federal welfare benefits—and $42,783.20 for every full-time year-round

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