We are living in exciting times. The Signposts point to Jesus soon return.

Wednesday, October 1, 2014

Mass default looms as world sinks beneath a sea of debt

Prophecy Sign:  The coming economic collapse, (and reset)


All the economic signs seem to be shaping up for yet another great market tumble.  You may have heard of the 7 year cycle of the Shemitah.  The coming year of 2015 marks another Shemitah.  The previous Shemitahs of 2008, (market collapse), and 2001, (9-11 and market collapse), speak for themselves and may be harbingers of something coming of equal of worse proportions for 2015. Certainly the following reports can be considered signs of warnings.

Now listen, you rich people, weep and wail because of the misery that is coming on you.  Your wealth has rotted, and moths have eaten your clothes.  Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. James 5:1-3 NIV

Mass default looms as world sinks beneath a sea of debt
As if the fast degenerating geo-political situation isn’t bad enough, here’s another lorry load of concerns to add to the pile. The UK and US economies may be on the mend at last, but that’s not the pattern elsewhere. On a global level, growth is being steadily drowned under a rising tide of debt, threatening renewed financial crisis, a continued squeeze to living standards, and eventual mass default.
Contrary to widely held assumptions, the world has not yet begun to de-lever. In fact global debt-to-GDP – public and private non financial debt - is still growing, breaking new highs by the month. There was a brief pause at the height of the crisis, but then the rise in the global debt-GDP ratio resumed, reaching nearly 220c of global GDP over the past year. Much of the more recent growth in this headline figure has been driven by China, which in response to the crisis, unleashed a massive expansion in credit.

Stocks head for worst quarter since euro crisis, dollar soars
A new trough in euro zone inflation pushed the euro to a two-year low on Tuesday, leaving the dollar on course for its biggest quarterly gain in six years and world stocks facing their largest drop since the peak of the euro crisis. Falling food and energy prices saw euro zone inflation slow to 0.3 percent this month, piling the pressure on the European Central Bank to make clear when it meets Thursday that it is ready to take more preventative action. World markets had already been in a hesitant mood as investors wondered what China's response would be to civil unrest in Hong Kong, and as the dollar's strength dominated the end of what has been a choppy third quarter.
http://www.reuters.com/article/2014/09/30/us-markets-global-idUSKCN0HP01P20140930

The U.S. Government Is Borrowing About 8 Trillion Dollars A Year
I know that headline sounds completely outrageous.  But it is actually true.  The U.S. government is borrowing about 8 trillion dollars a year, and you are about to see the hard numbers that prove this.  When discussing the national debt, most people tend to only focus on the amount that it increases each 12 months.  And as I wrote about recently, the U.S. national debt has increased by more than a trillion dollars in fiscal year 2014.  But that does not count the huge amounts of U.S. Treasury securities that the federal government must redeem each year.  When these debt instruments hit their maturity date, the U.S. government must pay them off.  This is done by borrowing more money to pay off the previous debts.  

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