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

Wednesday, January 14, 2015

The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds

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

If oil prices continue to drop it may set the stage for everything from another global economic depression to perhaps even war.  From the ashes of this future economic tsunami will come the new economic world order of the Antichrist.

For he has oppressed the poor and left them destitute; he has seized houses he did not build.  “Surely he will have no respite from his craving; he cannot save himself by his treasure.  Nothing is left for him to devour; his prosperity will not endure.  In the midst of his plenty, distress will overtake him; the full force of misery will come upon him. Job 20:19-22 NIV

The Crashing Price Of Oil Is Going To Rip The Global Economy To Shreds
If you were waiting for a “black swan event” to come along and devastate the global economy, you don’t have to wait any longer.  As I write this, the price of U.S. oil is sitting at $45.76 a barrel.  It has fallen by more than 60 dollars a barrel since June.  There is only one other time in history when we have seen anything like this happen before.  That was in 2008, just prior to the worst financial crisis since the Great Depression.  But following the financial crisis of 2008, the price of oil rebounded fairly rapidly.  As you will see below, there are very strong reasons to believe that it will not happen this time.  And the longer the price of oil stays this low, the worse our problems are going to get.  At a price of less than $50 a barrel, it is just a matter of time before we see a huge wave of energy company bankruptcies, massive job losses, a junk bond crash followed by a stock market crash, and a crisis in commodity derivatives unlike anything that we have ever seen before.  So let’s hope that a very unlikely miracle happens and the price of oil rebounds substantially in the months ahead.  Because if not, the price of oil is going to absolutely rip the global economy to shreds.

Dangerous Yield: Canadian Banks
On Monday, the Bloomberg Commodity Index fell to a 12-year low. This is bad news for economies dependent on commodity exports, particularly Canada and Australia. In fact, the Australian banking system is as unsafe as ever due to the global commodities rout and an overpriced housing market. In March 2014, I listed six dangerous stocks with tempting yields, including Westpac Banking (WBK), one of Australia’s largest banks. However, this edition of “dangerous yield” focuses on our neighbors to the north, who are in serious trouble. According to an analysis of global housing markets conducted by Deutsche Bank, Canada’s housing market may be the most overpriced in the entire world relative to historical averages of home price/rent and home price/income.

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