August 17, 2022
BIBLE PROPHECY & THE COMING FINANCIAL CRISIS
– WHAT YOU NEED TO KNOW
The purpose of this posting is to help you see that we are all interconnected and to inform you of the coming economic crisis. Many Christians have the sense that the world economy is on the verge of a major economic crisis and that we are in this end time financial mess just prior to Christ coming in the air to take His church home to heaven (the Rapture). We will have the 7-year Tribulation period and God’s wrath being poured out on the earth starting right after the Rapture where the Bible predicts a coming day when one person (the Antichrist) will take control of the entire global economy and you will not be able to buy or sell without his authority (Rev.13:16-17). What we are seeing today (global financial crisis) is God setting the scene for the end time ruler (the Antichrist) to come unto the world stage with solutions to clean up the financial mess and all of the world’s problems.
What is happening with the conflict in Europe, high inflation, chain supply issues, high gas prices, food shortages, aggressive interest rate hikes, rising mortgages, strong US dollar, etc. will affect all of us and we need to be prepared. The financial storm clouds are gathering on the horizon and the time to prepare is now for what is coming very shortly, maybe as soon as this September, and going into 2023. Yes, things are coming at us from all angles and converging together – the perfect financial storm. Every day it is looking more and more like we may not have to wait until next year to see extreme stress and upheaval in the financial system – it’s staring us in the face now as we speak. Next year (2023) definitely does look like it is going to be a year for the record books with widespread geopolitical fallout (political unrest) coming to Europe, to emerging countries and other nations as well – major civil unrest, riots, protests, even revolution in some countries, etc. Why? The coming escalation in the conflict in Europe along with high inflation, rising commodity prices and food shortages, gas prices that could more than double what they are today and a strong rising US dollar that has devastated countries as well as other borrowers of debt worldwide.
The economic pain is already here and getting worse, especially overseas where Europe is in dire straits with their economy tanking and the euro currency steadily declining. Just recently the President of Hungary said that Europe is committing economic suicide by her actions against Russia which is hurting Europe. You have to understand that 20% to 40% (depending on the country) get their gas from Russia. This winter will be very tough for the citizens of Europe with the rationing of gas for heating their homes and factories. All of this is likely coming to a head shortly and certainly going into 2023 as the euro is tanking more as the US dollar gets stronger. Only 10 or so years ago the euro was worth $1.50 US and has declined dramatically. Today, it’s pretty much on par with the US dollar and the euro bonds are being shunned by US banks where these banks refuse to accept any European sovereign debt as collateral. You see, things get worse in the world as the US dollar goes up. Why? Because these emerging markets and other nations issue debt in dollars. Now, why would they do that? They were borrowing in dollars because it had cheaper interest rates and they had no concept of the foreign exchange risk which could suddenly move 20 to 40% in a year or even in the matter of months. With such currency swings these emerging markets and other nations could suddenly owe 20 to 40% more and get into deep financial trouble and that is exactly what we’re seeing today with the strong US dollar causing havoc around the financial world. As an example of turmoil in the world, one can look at Sri Lanka and what just recently happened as millions of its starving citizens stormed the president’s palace forcing the president to flee the country.
Now, one has to understand why the US dollar is going up. Well, when you have a war in Europe and the European economy about ready to tank you have capital fleeing Europe and rushing to America and that is what has been happening. The more they beat the war drums over in Europe, the more capital will come to the US making the dollar stronger. The strength of the US dollar is all about capital flows that are going on, on a global scale. You had the same thing happening in World War I and World War II with money fleeing Europe and coming to the shores of America seeking safety. This is why after World War II the US had 76% of the official gold reserves of the world. Yes, things are not looking very good for Europe but like I said in my opening statement that we are all interconnected and it’s going to affect everyone of us to a certain extent as well and we need to prepare for this economic tsunami heading our way. Also, on this side of the Atlantic things are not looking so rosy either with high inflation, gas, food prices, and home mortgages that have doubled in the last 10 months.
WINTER OF ANGER – WIDESPREAD GEOPOLITICAL FALLOUT IN 2023
Some things are so simple in life that you can’t come to grips with the fact that many people just don’t see them. You don’t have to be a rocket scientist to see that the actions taken by the European Union are really hurting themselves. Europe is sleepwalking into their own demise. They are the instruments of their own destruction. Europe needs Russian resources. Europe is a consumer of materials with a debt-based financial system financed by negative interest loans that make no sense whatsoever. Russia on the other hand is gifted with valuable natural resource (gas, oil, grains, fertilizer, rare earth minerals, etc.) materials that Europe must have to compete on world markets. Germany is the economic powerhouse of Europe, and we know that Germany and other European countries run on cheap gas provided by Russia. Watch Germany and see how it manages through this gas crisis this winter because the rest of Europe will follow and the result of this will be major geopolitical fallout and civil unrest in Europe coming next year.
Germany could solve their gas problems tomorrow just by turning on the Nord Stream 2 ($3 billion pipeline) that they announced cancelling on the 1st of March. Would they do that? No! How many governments can ever actually admit they made a mistake? They would rather have their citizens freeze this winter than admit they made a mistake, but this is what’s happening. Now Russia will turn eastward to Eurasia and expand their trade with India, Pakistan, China, and other emerging Asian countries. Watch Europe’s industrial complex and trade growing weaker on the international stage and being replaced by the emerging Asian countries (South Korea, Vietnam, Malaysia, Indonesia, etc.).
THE WEST IN DISARRAY
The West is in disarray, and it does not have a clear direction in where to go or what to do. Western leaders are not taking this conflict in Europe seriously. When Rome was burning some 2000 years ago the Senators were discussing if angels were male or female. It’s the same situation we have here today. With the possible escalation of war in Europe and the possibility of nuclear confrontation just look at what politicians are discussing in Washington today – “What is a woman” or “What kind of sign do you have to put up in a public restroom.” Unbelievable! How does that logic compare to the real possibility of nuclear war? This nuclear threat is real when you have nuclear nations involved. Seriously, we could be on the verge of a major confrontation the longer this conflict continues, and no one is taking this seriously.
There are no peacemakers around. No talk of peace anywhere and the only thing you hear from our political leaders are them beating on war drums. So, the only outcome can be more skirmishes and a further escalation of the conflict. With billions of dollars of weapons sent to Europe and rockets and bombs flying back and forth the calculation for error is there – an accident just waiting to happen that will further escalate the conflict. What is needed is peace. What is needed is to have politicians with guts and courage that can bring both parties to the table to negotiate a settlement and not to further escalate the dangerous current situation.
I have no pleasure in bringing you such grim news, but I can’t sugar-coat things and I have to call it the way I see it. The possibility of this war in Europe escalating is very high because six months into this conflict we see no desire or interest from any government even trying to bring negotiating parties to the table to try and find a settlement. This seems to me as if governments of the world don’t seem to care and this is very dangerous, and they need to take this war seriously. We are dealing with the nation Russia who have the largest nuclear arsenal on the planet and if we back them into a corner with no other option but to use their nuclear arsenal what do you think is going to happen. These politicians are just playing games thinking and hoping that this will all be conventional and not nuclear but when you back an enemy into the corner with no other option, they will use the (nuclear) weapons that they possess. If this were to happen it would be game over for all the major cities of Europe because they would be wiped out in a matter of an hour or less. The same goes with North American cities because the US would also be involved. Not only that but China would not sit idly by but align with her ally Russia and to add more fuel to the fire just recently (Aug.10) North Korea asked to join the war volunteering 100,000 soldiers to fight alongside Russia.
Can you see where this can lead to more war very fast? Yes, we need world leaders with fortitude and diplomacy that can step up to the plate and bring all parties to the negotiating table to work on some kind of peace arrangement. This is what we need to see very soon before things really do get out of hand, and we are not seeing any leaders stepping up to the plate to diffuse this dangerous situation so the possibility for further escalation of the war in Europe is very real. This is something that I wanted to draw to your attention because you’re not hearing this from the press or news media. You need to be prepared as this economic tsunami, economic meltdown, is heading directly towards us. (In a future post I will discuss things we could do to prepare ourselves for this coming Financial Crisis).
A WORLD ECONOMICALLY DIVIDED WITH TWO OPPOSING SYSTEMS
What we have seen and witnessed this year is that the sanctions against Russia have divided the world and ended the global economy. The actions imposed on Russia confiscating private assets have not just violated international law but has divided the world economically and put an end to globalization. The Western foundation of ethics and economy as we have known it has come to an end. The powers that be are pushing the world into a serious geopolitical confrontation that will not end nicely and this has created a dangerous situation. This does not speak well for what we face in 2023 and the years beyond.
Because of the conflict in Europe and the actions that were taken we now have a world that is divided into two competing financial systems. We now have China (and Russia) setting up a separate system away from SWIFT by setting up their own system as an alternative for international transactions called CHIP. You have the United States, Europe, and most of the rest of the world for now on the SWIFT system. You will have very shortly the BRICS countries (Brazil, Russia, India, China, and South Africa) on the CHIP system with other countries already asking to join them.
The BRICS countries are challenging the US dollar global reserve status. It shouldn’t be any surprise to those paying attention that Russia and China are strengthening their economic ties. What may surprise some people is that these countries are officially working on their own “new global reserve currency.” They want to back their reserve currency with hard assets such as gold and maybe some other commodities such as oil and gas. This could arguably be called the biggest shift on the global macroeconomic playing field over the last half-century since the Bretton Woods Agreement in 1971, when Nixon took the US off the gold standard. There is definitely a coordinated global challenge to replace the US dollar as the reserve currency and this should be very big news but it’s not being reported on. Over the years both Russia and China were buying up most of the gold on the free market in anticipation of this as both countries have been working on, and preparing for, this situation for years. It will be interesting to see how this all plays out and unfolds over the next few years.
ARE YOU READY FOR $8 A GALLON GAS?
With the scenario that I have just laid out with the real possibility of war escalating in Europe, I could see crude prices doubling from where they are today and going to $175 – $200 a barrel. Things could get very ugly very fast after the midterm elections. Why? Gas in the US is being released from the strategic reserves to keep prices down before the election. I can see this scenario reversing with the war escalating and high gas prices unfolding in probably the first half of 2023. I don’t know what $175 – $200 a barrel oil will equate to in dollars per gallon for gas at your local pump but I’m guessing it will be around the $8 – $9 range. This is something that motorists need to be aware of so they can be prepared to budget for this expense. I just googled gas prices in Europe, and they range from $7.65 to $9.49 (depending on the country) and that’s with today’s $92 per barrel oil. Just imagine the shock and what it’s going to cost motorists in Europe when the oil price doubles as war in Europe escalates. We could be looking at $14 – $18 a gallon gas. Can you now see why Europe is in such dire straits. Only low to negative interest rates and QE has kept them above water so far but this all will change next year with the gas crisis they are facing plus high inflation and high food costs.
CENTRAL BANKS IN A BIND
INFLATION + DEFLATION = STAGFLATION
We are in a situation today where we have the signs of a start of a recession but at the same time, we have inflation rising greater than the economic growth, so we have what is called “stagflation.” Look, the world’s financial system has run its course. The economy is collapsing. The debt structure we have is unsustainable – it’s as simple as that. There is no intention from any government for paying off the debt. They just borrow year after year and this has been going on in earnest since 1971 when Nixon took the US of the gold standard – no accountability, just borrow and print more money (spend and pretend everything is okay, but it’s not). Europe went into negative interest rates in 2014 having now wiped-out pension funds because pension funds are required by law to own 70 to 75% of government securities but when they took interest rates to negative that killed the pensions funds because a pension fund to be viable generally needs a 6% to 8% return (interest rates in Europe were 0.25%). Governments know that the social safety net (pensions, healthcare, welfare, etc.) is broken and may only have a few years left before they declare bankruptcy. This is the reason for all this talk we keep hearing about regarding the great reset and their idea of a guaranteed basic income because they (governments) know the pension funds have been wiped out.
Now, with interest rates being forced to rise more aggressively because of high inflation worldwide, the debt situation becomes even more dire. If the truth be known, we basically are sitting around and watching the decay and collapse of the West. Its social security safety net has collapsed because governments have done nothing year after year but borrow money to bribe voters to vote for them and we have come to this point in time that this crisis is unraveling as we speak. Unfortunately, this is going to end very badly and will affect almost everyone in some way.
On top of what’s all going on in the economy we have inflation as measured by the consumer price index at around 8% to 9% range which is at a 40 year high. The new Fed funds rate of 2.5% won’t do much to squash consumer price inflation. The problem is that inflation is systemic, and the central banks are unable to prevent this type of inflation because this is a shortage crisis, not a speculative boom where raising rates would reduce the buying. The risk of the markets discovering that the central banks cannot control the economy anymore will raise the crisis to extreme levels as we head into 2023.
The liquidity crisis this time is complicated. This time we do not have the traditional speculative boom which has produced inflation. This time we have shortages and there is no way that a central bank can prevent this type of inflation by raising interest rates. If anything, it will only propel the shortages so we have the ironic situation of economic decline unfolding now and in 2023 but the shortages will get worse causing even higher inflation – what a quagmire the Fed finds itself in. Consequently, prices will rise even in the coming recession because it is a shortage of supply, not a decline in demand.
Six years ago, when I wrote “The Coming Economic Meltdown” I said that I didn’t think interest rates (10-year treasuries) would get much past 4.5% and I still feel that way today. Why? Because that’s going to have an impact on nearly every single derivative out there and there are quadrillions of dollars of derivatives out there. This would create a scenario of a 1929 type depression and no government would ever chance that. Warren Buffett, one of the world’s richest men, called these highly complex derivative instruments “time bombs” and said they were “financial weapons of mass destruction” that could harm not only their buyers and sellers but the whole economic system.
However, I do expect the Federal Reserve to aggressively raise rates up to maybe 3 ½% – 4% while the economy and the jobs numbers today are still relatively strong. Then I can see them pivot and change course when the markets start to tank and the Fed coming to their rescue by lowering rates to save the financial system by instituting more QE again. This is what they have consistently done in the past and I don’t see anything different this time around. Seriously, if they did raise rates past 4 ½ – 5% % then watch out because I think it would be intentional on their part to bring the whole system down – default on all debt – issue a new digital currency and start all over again type scenario based on total authoritarian rule. Like I said earlier we are basically all sitting around and watching the decay and collapse of the West. What I can tell you is that capital will be fleeing Europe and other countries of the world to the United States seeking safety. This flow of capital to the US will make the dollar strong for now and I don’t expect the US to collapse anytime soon because America will be the last man standing.
IN CLOSING
This is by no means something I am pleased to even have to write about, but it needs to be said as people need to understand that we are living in unprecedented times. Scripture reveals a grand design that’s unfolding in our day and in our generation. According to Bible prophecy, the earth is careening towards its final act. God is assembling the cast of characters and making preparations for the final scene. We face the worst economical crisis imaginable, with the distinct risk of moving into a state of economic totalitarianism. We are charting new territory almost every day and many of us fail to grasp the enormity of the global financial crisis that is now before us. This global financial crisis needs to take place before the Rapture with God setting the scene for the Antichrist to come unto the world stage with the economic tools that he is going to need to rule the world where “no one may buy or sell except one who has the mark of the beast (Rev. 13:17).” There is no stopping destiny and there is not a thing that anyone of us or governments can do to stop this. Things are going to happen just as God’s prophets said it would. Never before in history have all the factors been present for the fulfilment of prophecy relating to end time trends and events. It was only possible in our generation to understand prophetic biblical end time prophecies. History is headed to a divinely designed and revealed end. Readers need to be reminded that God did not give us Bible prophecy regarding the end times to scare us but to prepare us for what is coming and this one of the best witnessing tools that we can use in furthering God’s kingdom – in reaching out to unbelievers because this financial crisis will affect everyone’s lives.
The coming financial collapse is not necessary an event, it’s a process that unfolds over decades. I have been hinting of this economic collapse a number of times in previous postings over the past number of years but now it’s getting very serious as this financial crisis is already upon our doorstep. The time to prepare is now for the chaos that is coming in 2023 and beyond. From what I see now happening in the financial markets we may not have to wait till 2023 as things could start to unravel shortly even as early as this coming September. Our world financial structures now hang by the thinnest of threads. We must be on guard for what is unfolding is the total collapse in confidence in Western governments.
Six years ago, when I was doing research on my book “The Coming Economic Meltdown” as a biblical witnessing tool for my unbelieving friends, relatives, and family members I stated in the book that we would probably be able to see with some clarity the start of this economic meltdown by 2024. So here we are today with it staring us right in the face. This economic crisis didn’t just start yesterday or a few years back but over the years it was slowly coming where we can today recognize it for what it is. It’s like the approaching storm clouds gathering in the far distance and you can see them slowly coming towards you but there is nothing you can do to stop it. People need a wake-up call and I know I’m repeating myself, but I can’t emphasize this point enough – you need to be prepared. This is not a time to take on debt and this is not a time to take on financial risk. This is a time to hunker down for the hard times ahead of us and to use this financial crisis (seeing prophecy unfolding before our eyes) as a great opportunity to witness to unbelieving loved ones – neighbors and friends.
What can we expect? Widespread geopolitical fallout especially in Europe and other emerging markets, worldwide civil unrest (protests and uprisings), wars and skirmishes, high inflation, food shortages and high food prices, starvation in many countries (Africa, Asia), etc. In America with what recently took place in Florida it now has the country divided even more so to the point that years down the line we could possibly see states separating but for now after the midterm elections with this division in the country I can see widespread civil unrest coming in 2023. Major conflict would erupt if they granted illegal immigrants the right to vote a few weeks before the election. You can’t have a society that functions with both sides hating the other. To have a strong country you need people to come together for a mutual benefit and this is not what I see happening now in both houses of government. In fact, the country is getting more and more divided with more hatred on both sides which makes the country weaker not only economically but morally as well. So, hang on to your hats as it’s going to be a volatile ride and you need to start preparing to protect yourselves and your families from the economic hard times that are on the horizon and heading our way.
Oscar