Zero Hedge: Falling equity markets this week are likely to signal the onset of a bear market, responding to a combination of the coronavirus spreading beyond China and persistent indications of a developing recession.
This has provoked a flight into US Treasuries, with the ten-year yield falling to an all-time low of 1.31%. This will prove to be a mistake, given US price inflation which on independent estimates is running close to ten per cent, exposing US Treasuries as badly overpriced.
After this short-term response, much higher US Treasury yields are inevitable. Foreigners, who possess more dollars and dollar investments than the entire US GDP will almost certainly sell, driving bond yields up and the dollar down, leaving the Fed the only real buyer of US Treasuries. Read More …
Opinion: If/when the Federal Reserve becomes the only buyer willing to finance US debt …
- Money creation (QE) will explode
- Interest rates will rise
- The US dollar will plunge
- The depression the world temporarily avoided in 2008-9 by printing money will begin
I say if because the Federal Reserve has been unable to stop money creation (stimulus/QE) with the US economy growing over 2%. What will happen with a global slowdown?
From the article:
- Economic destabilization arises from a cycle of bank credit expansion always followed by a credit crisis.
- The expansion of the global money quantity since 2008 has been unprecedented, not only numerically, but in proportion to the size of underlying economies.
- While their relative magnitudes to each other were different ninety years ago, a combination of trade tariffs and the top of the credit cycle mirrors the conditions that led to the Wall Street crash between 1929 and 1932.
The Bible predicts world-changing money events after the Church is removed (1 Thess. 4:16-17). Like the Book of Revelation itself, the events happen chronologically, and like the birth pangs (Mat. 24:8 NIV), each event grows in intensity and severity upon a Christ-rejecting world.
The first is hyperinflation (Rev. 6:5-6) which can happen suddenly and will greatly burden the poor and middle class.
It is entirely possible that the removal of millions of believers will be the cause of the collapse.