the worst week for capital markets since the 2008 financial crisis , we warned that markets are about to go full tilt for the simple reason that “there is no liquidity “, something we first highlighted at the start of the month when we pointed out “Two More Problems For The Bulls: Market Liquidity And Short Interest Are At All Time Lows.”
Why our constant focus on liquidity? Because as Goldman explained on Thursday, “liquidity and volatility are interconnected, creating a self-reinforcing loop, and as a result liquidity conditions have been an important contributor to the velocity of recent S&P 500 moves.”
As Goldman further explained, as volatility spiked, electronic futures liquidity has fallen. Read More …
Opinion : On Thursday the Federal Reserve announced $1.5 trillion of fresh new money would be injected into the market to provide LIQUIDITY and the global market kept dropping. It wanted more.
On Friday the president provided more in the form of liquidity for businesses and the market skyrocketed. But were the moves by the Fed and the administration the right moves?
Work backwards from what we know will happen in the final 7 years after the church is caught up (1 Thess. 4:16-17):
Prophecy : The apostle John gives us a peak at hyperinflation in Revelation 6:5-6, as the first of 3 economic upheavals affect the global economy.
Economic trend : Nothing demonstrates economic shock better than the recent stock market turmoil caused by the coronavirus. In 28 days markets have plunged, $7 trillion in net worth has disappeared, pension plans hemorrhaging, while the government is bailing out the cruise industry, airlines and who knows what else when bigger more urgent problems need to be addressed:
Oil Price crash : In September 2018, the US became the world’s largest oil producer thanks to the miracle of fracking and a US president who put the technology to good use. Russia wants prices to stay low to hurt the American shale oil industry. On Wednesday March 12, CNBC reported that only 4 out of 100 shale producers are profitable at $30 oil – most shale producers need 48-54 oil just to break even. Without fracking the US could be at the mercy of OPEC once again.Prescription drugs: Manufacturing moved to China during the Clinton administration and made worse by Obama/Biden (here ). Today China makes up to 97% of our prescription medicines and they have threatened twice to cut supply in recent weeks.
Prophecy: In Revelation 13:16-17 John gives us a look at how a future dictator will get control of the global economy. No one may buy or sell without a mark.
Digital currency: The Federal Reserve is looking into confiscating paper money coming in from Asia because of contamination, adding fuel to the fire of a coming central bank digital currency.
Prophecy : In Revelation 18 John give us the final economic event that takes place just before the return of Jesus Christ. The kings of the earth mourn the fall of (literal) Babylon:
Rev 18:4 And I heard another voice from heaven saying, “Come out of her, my people, lest you share in her sins, and lest you receive of her plagues…” Rev 18:9 The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning…Rev 18:11 And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore…
Thanks to Vason for contributing to this post.
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Zero Hedge: On the first day of this week, which would soon mutate into the worst week for capital markets since the 2008 financial crisis, we warned that markets are about to go full tilt for the simple reason that “there is no liquidity“, something we first highlighted at the start of the month when we pointed out “Two More Problems For The Bulls: Market Liquidity And Short Interest Are At All Time Lows.”
