Zero Hedge: Earlier this week, Deutsche Bank’s credit strategist Jim Reid suggested that the Covid recession might persuade policymakers that there is no need for a recession again: as Reid put it, so aggressive has been the policy response that the US Covid recession is likely to be the shortest on record in spite of a savage global pandemic. Well, “if you can restore growth so quickly in a period when lockdowns are prevalent, then surely a normal recession will now hold no fear and be quickly reversed.”
Indeed the graph shows other long cycles all coincided with large deficits largely around wars and the New Deal in the 1930s. If it was this easy to avoid recessions why wasn’t it done all the time? Read More…
Opinion: On March 23, 2020 the reality of the Covid-19 lockdown began to crater the global equity markets. On April 9, 2020 the Federal Reserve announced $6.8 trillion in new money along with a pledge to backstop every sector of the market: stock prices, corporate bonds, municipal bonds and commercial real estate.
In addition, the Fed has been pumping $150 billion new money per month into the market ever since. Don’t worry, the debt does not show up in the exploding national debt. It kinda, sorta, vanishes into the Fed’s balance sheet.
Times of plenty and times of recession are as old as the Bible itself.
“This is the thing which I have spoken to Pharaoh. God has shown Pharaoh what He is about to do. Indeed seven years of great plenty will come throughout all the land of Egypt; but after them seven years of famine will arise, and all the plenty will be forgotten in the land of Egypt; and the famine will deplete the land.”
Suppressed interest rates (ZIRP – zero interest rate policy) and money printing (QE -Quantitative Easing) were designed by central bankers to smooth out the economy and avoid the natural economic order – times of a slow down, or recession.
“So the plenty will not be known in the land because of the famine following, for it will be very severe. 32 And the dream was repeated to Pharaoh twice because the thing is established by God, and God will shortly bring it to pass.” Genesis 41:31-32
The nations have accumulated so much debt that the only way to keep the global economy going is to create more money. It does not take a PhD in economics to know NEW money debases the value of money already in circulation.
Hyperinflation can come suddenly, caused by the collapse of a nation’s currency Revelation 6:5-6:
“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.”
In the 3rd of 21 judgments of the 7 year tribulation period, a person will have to work a full day to earn enough to buy food for the day.
The rich are represented by oil and wine. Expensive commodities will be out of reach for the masses. The rich will not be affected for a time.
See “The 1% and Revelation” Here