Business Insider: We just witnessed the worst week for the US stock market in four years. The blue-chip Dow fell more than 500 points Friday and entered correction territory on an intra-day basis — defined as a 10% drop from recent highs. Major stock markets across Europe and Asia also closed sharply lower.
Opinion: The chaos on Wall Street in three bullets:
- August 10-11, 2015: China shocked global markets by devaluing the yuan twice in two days
- August 20, 2015: Federal Reserve minutes indicate no rise in interest rates in September citing weak data
- August 22, 2015: Oil breaks key support levels indicating massive supply glut and global slowdown
1. Candidate for president Donald Trump called the move by China devastating: “They’re just destroying us. They keep devaluing their currency until they get it right,” he said. “They’re doing a big cut to the yuan, and that’s going to be devastating for us.” (By devaluing the yuan, US companies are at a huge disadvantage to Chinese companies).
2. The Federal Reserve has been saying they they would raise short term interest rates every month for the past two years based on obviously flawed data of a US recovery from the 2008-9 financial crisis. By delaying a rate increase again, it showed that the Fed has lost control of the economy.
3. The plunge in oil indicates slowing global demand that could signal the onset of another recession or worse.
From a Biblical perspective, the US and Europe are buried in debt. The Bible clearly warns that the borrower is slave to the lender (Proverbs 22:7).
The US is the economic engine of the world. If the US had its debts controlled, we would not be at the mercy of China’s currency manipulations, the Federal Reserve would not be pumping out phony financial reports to prop up a failing economy, and the price of oil would be stable due to increased demand.
Moses knew that 3500 years ago:
“For the LORD your God will bless you as He has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.” Deuteronomy 15:6