US Stocks Soared Wednesday, Because Nothing’s Fixed In Europe & US Growth Slowed


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Opinion: The headline says it all. On Tuesday the world’s stock markets cratered due to a sudden rise in interest rates in Italy’s bond market. Equity investors panicked and ran to buy US Treasury Bonds for safety. Here’s why:

Image result for stock and bond seesawOn Wednesday the markets reversed but nothing much had changed. Italy is still a mess and the US actually showed slowing growth in the economy.

What gives?

My take is that the Federal Reserve kept interest rates too low for too long and the net effect was rising stock prices giving the impression that all was well, but with little to no wage growth, stagnant inflation in the US, and economically weak southern EU nations drowning from socialism. It was all an illusion.

Now the Central Banks want to raise interest rates but there is still no inflation or wage growth in the US, and Europe is a mess. The markets are signaling that if the US continues to raise rates, a global recession will happen within the next year. Of course a recession could happen much sooner if any one of the EU nations’ bond markets were to continue to slide, forcing interest rates up and stock prices down (see seesaw).

Why is this important for a prophecy blog? Because when economies collapse nothing else matters to people (see Venezuela). And Revelation 6:5-6 tells us that a global meltdown is coming.

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