Zero Hedge: Whereas some members of the governing council of the European Central Bank were hinting the monetary policy would return back to ‘normal’ sooner rather than later, Mario Draghi, the president of the ECB, had a completely different opinion when he testified at the European Parliament.
According to Draghi, all stimulus measures need to remain in place until the Eurozone returns to a normalized inflation rate, and reducing the efforts of the ECB aren’t even being discussed.
Draghi did confirm the economy of the Eurozone is getting stronger thanks to domestic consumption and investment (rather than seeing a boost caused by external investment and export increases), but it’s still too soon to reduce the asset purchase program which will now very likely be extended. more …
Opinion: It has been 10 years since the great recession began and 8 years since the Obama economic team declared it over.
Since World War II, the average recession lasts 10 months and comes around every 7-8 years. Recessions have been happening since Genesis 41:1-4, seven years of plenty and seven years of famine.
“Then it came to pass, at the end of two full years, that Pharaoh had a dream; and behold, he stood by the river. Suddenly there came up out of the river seven cows, fine looking and fat; and they fed in the meadow. Then behold, seven other cows came up after them out of the river, ugly and gaunt, and stood by the other cows on the bank of the river. And the ugly and gaunt cows ate up the seven fine looking and fat cows.”
But this latest recession really has not ended. This recession has been masked by central bankers in the EU, US, China, and Japan creating trillions of new currency to stimulate economic growth.
The normal ebb and flow of economics has been interrupted by central bank experimentation, while most people only see rising financial markets telling them all is well.
Here is how well it’s (not) working:
- Average GDP growth in Europe for 2016 = 1.9%
- Average GDP growth in the US for 2016 – 1.6%
For the first time since WWII, US Gross Domestic product did not reach 3% in any year of the Obama administration. It takes 3% economic growth just to keep up with new people entering the work force.
Central bank stimulus continues:
There is nothing to compare this with historically since artificial stimulus (money created to hold down interest rates) has never happened before on a global scale.
Anyone who says they know how this ends is only guessing. But we know from Revelation 6:5-6 that it will end badly.
John’s description of the Black Horse paints a hyperinflation scenario. One day’s labor buys only enough food for that day. The prophet Haggai 1:6 describes it as a purse with holes.
There is nothing to be worried about for those who have accepted the pardon that the cross of Christ provides (John 3:16).
Revelation 4:1 comes before Revelation 6:1-8. It’s that simple.