Edition 39. May 10th 2010
In this edition:
●Coming massive world economic meltdown
●News makers and items.
Recent news items of prophetic significance.
●Obama recently assured European leaders that if the Israel-Palestinian peaces process is not moving by September, he will convene and international peace summit. Sources say that this would only be to force Israel's hand.
●Obama sends letter to Palestinians assuring them that he blames Israel for the the lack of peace. "Israel is the obstacle" he said.
●Palestinian officials are preparing to unilaterally declare independence by October. Such a move would be welcomed by the UN, says the Arab media.
●French President Sarkozy calls for world economic regulation and reform, after recent discussions with Obama.
●Former Nazi bank to rule the global economy. European Central Bank chief Jean-Claude Trichet said a few days ago at the Global Economy Meeting (GEM) that The Bank of International Settlements will become "the primary engine for global governance." Trichet also said in a report carried by Forbes that "global governance is extremely necessary if we want to prevent another world credit crisis."
●Behind the news of the Iranian leaders visit to Zimbabwe last week, lurks the unreported and main reason for this odd-couple tie up. In return for a regular supply of oil, Zimbabwe's evil dictator, Mugabe has promised and assured Iran of huge supplies of uranium, of which it has large reserves.
World financial disaster coming soon.
The world of high finance and global macro-economics is not your normal spiritual subject, but it's inextricably linked with Bible prophecy and is of far greater importance than many imagine.
I now want to break this down into a simple easy to understand article. It is of profound importance now.
The world has just emerged from a huge economic crisis, which was caused by stupid US bank managers and the equally as stupid US sub-prime system. This was designed to fulfil the American dream of life, liberty and happiness (on credit) to everyone, even the likes of Jerry Springer guests, who had no hope of paying back their loans. US bank managers were responsible for the entire meltdown which spread around the world like falling dominoes.
We are now seeing worldwide economic recovery from that US- created nightmare that was inflicted on the world, or are we?
There is no doubt that economic recovery is on the go in the US and many other countries. The most recent earnings season in the US indicated that about 80% of corporate America beat analysts' expectations. The economies of China and India have been surging very strongly and in fact swinging the balance of world growth into the green. Commodity prices have been flying high in anticipation of this world recovery.
"Ah, all is well with the world! Everything is going to continue as normal. My family and I can now sleep well."...Not so fast, buddy!!
Imagine survivors of the Titanic being rescued by a big airship called the Hindenburg!
A new monster:
The first economic crisis that the world went through, and is now recovering from was created by US. We are now facing a new and more severe economic crisis. This time it's primarily been caused by stupid politicians. But bankers aren't off the hook. Central banks (government controlled) and private banks are just as responsible again, as we will see. Bankers + politicians = one big satanically driven monster.
Before we go on let me share with you a very simple basic lesson in economics.
If you spend more than you earn, you are in trouble. You can borrow more, but then you need to service that debt and pay interest on the loan as well as pay the loan back at some point. It's fine to spend more than you earn for a short time if for example, if it's for new machinery (capital expense) to make more and better products. But if debt gets to a level where you can't service it, you're finished. What awaits then is default or bankruptcy. Essentially, can't get out of debt by borrowing more and going deeper into debt.
The rocketing world empire of debt!
Debt per say is not the problem, it's debt out of control that is. Once debt reaches a level of un-sustainability it brings down all involved. If I owe the bank $1000 it's my problem. If I owe the bank $10 million it's the banks problem. If I default on the big amount, it will damage me, the bank and many others. On a world or national scale, there is no fixed level, where debt hits the un-sustainable, breaking point. There are too many variables for a one-size-fits-all position.
Essentially, excessive US debt has been sold on to the rest of the world. It has spread from the banks to the public sectors and now Humpty is about to fall.
Right now everyone is worried about the contagion of debt in Europe, and rightly so, but there are much larger problems lurking in the dark. They have not yet come to light, but they soon will. When they do, you can be sure that a new world economic melt-down will be underway.
Gross Domestic Product (GDP) is what a nation earns its money from. The deficit level is the spending side of things. Now just like a business, if a country spends more than it earns, it's not good. The country can go and borrow more, but then it has to pay back the interest on the loan and the loan itself. Some countries just print more money, which brings nasty inflation further down the line.
Right now we are seeing about 15 nations worldwide with debt levels that are unsustainable and still growing.
Debt as a percentage of GDP is the all important number. If a nation has a debt to GDP ratio of 100% it means that it is unsustainable.
Here is the debt to GDP breakdown of countries headed for financial catastrophe:
The US is at 96%, Canada is at 74%. Most European countries are at or just below the 100% mark. Greece is at 170%, Japan is at 200%. India is at 62%, Singapore is at 117%. The UK is at 65%
Some countries that are just fine (but will be hit by the domino knock on effects of meltdown elsewhere.) South Africa at 35%, Australia 18%.
Current global public (government) debt is $38trillion and rocketing. It will be at $43 trillion by 2011. The problem is that these excessive debt levels are growing too fast to be sustainable.
Remember that we have been seeing a lot of troubles recently over the debt contagion threat of just one nation, Greece. When many begin to hit the fan simultaneously, the domino effect will cripple the world economy.
Stock markets are forward looking. They anticipate the economic or earnings environment by about six to nine months or so. World markets have now fallen from their recent highs by 10% or so in a matter of days! Some like the all-important Shanghai market of China has fallen by 25% from its high of a few months ago.
World markets are unable to continue in an upward trend (with the exception of a few bounces). They are now forming a new downward trend. Markets are saying that world economic troubles are coming in six to nine months or so.
At the time of writing, we have just seen a significant bounce in world markets on the news of a huge rescue package for Greece and others in Europe. This will stabilise world markets, but it's a bailout bucket, which hasn't fixed the source of the leak. We may well see world markets recover for some time, but the underlying structural problems remain and will surface soon. The European rescue package itself is fundamentally flawed and will not work for more than a short time.
But, remember that there are many other countries that are heading for economic disaster at great speed as well.
Many financial advisors, fund managers and stock market participants say that to be successful in the markets you need to be a long-term investor. That was quite true in the past, but now we are about to see a major paradigm shift. 'Long-term' is out of the window!
How can you bailout the world?
Living beyond your means on a personal, corporate or national level is not very clever! In fact it's root is pure greed mixed with pride!
By-products of economic disaster:
The austerity measures that will need to be introduced to save the world economy will have to be very severe. These will lead to many new problems. These measures may include: Raising taxes, spending cuts, salary cuts, reduction in pension payouts, reduction in municipal services, and similar. These then lead to rising inflation, unemployment, a fall in property prices, tanking world stock markets, and social unrest as well.
Banks feel the pressure and stop lending to each other and tighten up credit controls. This reduces the velocity of money in the system and causes all sorts of hardships. As we have seen before, this can also lead to a run on banks as people withdraw their money. All in all, this creates a new recession.
Most are not aware that an enormous crippling drought is now affecting large parts of China. Some estimate that it will knock a few percentage points off GDP. On its own this isn't a major world event, but there are rising fears of food and water shortages brewing in many other third world countries as well.
World economic collapse will exacerbate famine. The Bible speaks of large end- time famines in many lands.
Luke 21:25 "...And on the earth, distress of nations with perplexity." This is a tribulation verse, but we will see forerunners.
Babylon then and now:
The modern banking system was first birthed in the city of Babylon thousands of years ago. It's not the main subject here, but just to mention it.
Babylon was also where people of many mixed, occult religions tried to reach up to God to become one with Him. God destroyed it all and them all. This was also the origin of independent nations with their own languages.
With this in mind we need to understand that there are many things within the Bible that have a secondary "type" as well as a literal meaning. Babylon is one of them. There is much in the Bible about the city of Babylon and its evil multi-faith ways, it's commercialism, its destruction and so on. But there is much in Bible prophecy where Babylon is also used to represent various aspects of the modern world. In the book of Revelation (and elsewhere), Babylon is used in type to show the destruction of the modern world system, including it's religions.
Religious modern Babylon will be spear-headed by an apostate leader, most probably Catholic He will accommodate a multi-faith mix. This world religious organisation will become the "false prophet" who will work in collaboration with the antichrist in the tribulation period. This religion is called "The whore."
Revelation 17:5 "Mystery Babylon the Great, the Mother of Harlots and of the Abomination of the Earth." This whole chapter deals with this false, counterfeit religion.
What is interesting though, is that the very next chapter also deals with Babylon the Great, but here it is typed with the kings and merchants of the commercial, socio-political world.
Revelation 18:2-19 "Babylon the Great is fallen is fallen and has become a habitation of demons...for all the nations have drunk of the wine of her fornication...the kings of the earth and merchants have become rich through the abundance of her luxury...therefore her plagues will come swiftly, death mourning and famine...she is made desolate."
Babylon (in type) refers to the massive godless end-time world, it's religion as well as the banking system and the socio-political world. In the days we are soon to enter, religious Babylon will team up with political Babylon to form the tragic end-time players. These will be the satanic trinity or what the Bible calls the false prophet (religious), the antichrist (political) and the beast system (computerised control)
Some incorrectly believe that the references to Babylon in the book of Revelation refer only to the original city of Babylon. There is a huge weight of evidence (which I'm not going to deal with now) that Babylon has many prophetic applications to our day in both the spheres of religion and politics.
Jeremiah 51:49-57 "As Babylon has caused the slain of Israel to fall, so at Babylon the slain of all the earth shall fall...The sound of a cry comes from Babylon and great destruction...because the Lord is plundering Babylon and silencing her loud voice...all her mighty men are taken...and I will make drunk her princes and wise men and governors, her deputies and her mighty men and they shall sleep a perpetual sleep and not awake ever."
This happened just as proclaimed, but it also has a powerful secondary, prophetic application to today.
When will all this happen?
There have been many world economic crises in the past. Israel is God's time clock though. The generation that saw Israel become a nation again will be the last before the tribulation begins. This generation started in 1948, so it is only events since then that are of prophetic importance. We are now right at the tail end of this generation!
I've mentioned a number of times that Europe in its present form is not ready to fulfil its hell-born end time role. This could be the start of the shake-up that will prepare Europe for it's tragic future role.
Have a look again at the news item at the top titled "former Nazi bank to rule..."
We can be very sure that 2011 will see many of these things reach explosion point, if not before.
The economic work of the antichrist:
The coming world economic crisis will be just the sort of environment that is ripe for the arrival of a super-wise, whizz-kid... a Superman-saviour who will come along with a staggeringly brilliant socio-economic rescue-plan. It WILL be just that, but it will be born in hell and Mr. Superman will be none other than the antichrist. He will introduce the "beast system" which will be one of control and domination on a worldwide scale. Of course, all of this will be in the tribulation period, but we are seeing the forerunners of it now.
As he consolidates his power in the tribulation period, this is what he will do in terms of the world economy:
Isaiah 10:13 "By the strength of my hand I have done it and by my wisdom, I have removed the boundaries of the people and have robbed their treasuries...my hand has found like a nest the riches of the people and there was no one who moved his wing nor opened his mouth with even a peep."
Revelation 13:16-17 "He causes all both great and small, rich and poor, free and slave, to receive a mark on their forehand or forehead and that no one may buy or sell, except one who has the mark or the name of the beast, or the number of his name."
Both of these verses (as well as some others) speak of a time of worldwide socialistic, financial control and domination on a grand scale! The tragedy is that those who go this way will seal their eternal destiny in hell.
The debt levels of many of the large developed economies are at breaking point. There is no easy way out. It's all going to explode soon. Some of the smaller emerging nations are just fine on their own, but because the world is a global village, they will all be affected. There will be hope and economic recoveries here and there for a while, but these will be false. The upward trend of mid to longer-term sustainable world economic growth has been dealt a mortal blow.
We are close to the start of a horrific melt-down. The full impact of it all will take place in the seven year tribulation period. We will be gone by then!
By nature I'm an eternal optimist. I have no optimism for the world, but plenty for our Messiah, His ways and His people. We will be forever victorious!
Matthew 6:24 "No one can serve two masters for either he will hate the one and love the other...you can't serve both God and money."
Ecclesiastes 5:10 "He who loves abundance (materialism) with increase, this is also vanity."
Heaven or hell:
Isn't it amazing that unbelievers almost always call on God at funerals. "Oh Gawd, we know that he was such a good man, receive him now." Well, why didn't he receive God when he was alive? Why, should God receive him now? One thing I've noticed is how desperate and hopelessly sad all funerals of unbelievers are. Most times the priest at the unbeliever's funeral is as dead as the person in the coffin and nothing he prays or says will make any difference with God. It's too late! "Into God's hands we commend his spirit", they say. To the dead unbeliever God will say; "depart from me, I never knew you" Hell is that individual's new home, believe it or not.
Funerals of true believers are sad yes, because the person is gone from us for now, but there is an element of lightness and hope and even joyfulness to them. I've been to some that were a celebration. God will say to that person; "well done good and faithful servant". Don't wait until you're on your death bed to make right with God. You need to be born into His family to be accepted by Him and you need to do it now.
In closing this edition here is a marvellous painting by Marc Chagall done in 1954. It represents a beautiful happy world. Enjoy it because it won't last. The glorious Kingdom of our risen Messiah, Yeshua / Jesus will last forever.
Kind regards and many blessings...Shalom and grow in grace!