The Bible says very clearly that the entire global financial system will collapse in an hour. (Revelation 18:17) The good news is that this event WON'T happen until The Tribulation...which means we followers of Christ will be gone in the rapture before this happens.
But, none the less, we should expect to see some foreshadowing today of this great event that will take place in the future.
The first warning we had was Bernie Maddoff. He took $billions of dollars in a Ponzi scheme. Then we had Tom Petters here in Minneapolis, some "Christian" financial planner in Burnsville followed him, then last February Robert Markmann a famous money manager from Edina killed himself rather than watch his Ponzi scheme be revealed.
Of course the greatest Ponzi scheme taking place is the one that involves the Federal Government, the U.S. Treasury and the Federal Reserve. As we have pointed out numerous times, when the Federal Gov't is out of money (and they are to the tune of $5 billion per day), they order the Treasury to sell IOU's on a global auction. And when the interest rate isn't low enough or the necessary demand isn't high enough....the Federal Reserve steps into the Treasury auction and "buys" the IOU's.
What??
If the Federal Reserve has $trillions of dollars to buy IOU's....why don't they just give it to the Federal Government in the first place?
Answer: because it is all a bunch of paper and fictitious zeros that will crumble when the confidence in our fiat (paper money) money system disappears.
So today we have more confirmation that a Ponzi scheme has been cooked in the USA, and this warning comes from the largest bond fund manager at PIMCO.
“Check writing in the trillions is not a bondholder’s friend,” Gross wrote in his monthly investment outlook posted on Newport Beach, California-based Pimco’s website today. “It is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead end where those prices can no longer go up.”
Did you catch the word "Ponzi" and "illusion"?
Fed officials, who already cut interest rates almost to zero, are discussing more purchases of Treasuries to flood markets with cheap money as well as strategies for raising inflation expectations to prevent stagnating prices from undermining the recovery.
He then goes on to say something that is 100% true....and for that I stand and applaud him.
“This is not a Bernanke scheme, because this is his only alternative and he shares no responsibility for its origin,” Gross wrote. “I call it a Sammy scheme, in honor of Uncle Sam and the politicians -- as well as citizens -- who have brought us to this critical moment in time. You and I, and the politicians that we elect every two years, deserve all the blame.”
See it here; http://www.bloomberg.com/news/2010-10-27/fed-easing-likely-to-mark-end-of-30-year-bull-market-for-bonds-gross-says.html
Yes friends....you and I do deserve all the blame. When our incomes didn't go up for 10 years but our access to credit cards and home equity loans became as easy as signing your name....we just pretended that we would never have to pay the money back. We believed that our housing values would grow faster than anything we wanted to spend...and then some!
And then we demanded more and more programs from our governments (plus have them pay for two wars) but demanded that it only be paid for by taking some of the cream off the top of our growing stock portfolios. We are now at a place where 50% of tax filers pay nothing into the IRS....and this explains why Team Obama is predicting a $1 Trillion per year deficit as far as the eye can see.
Make no mistake....this system is broke. Bernanke has no other alternative but to try and keep the whole shaky house of cards standing for a little while longer. If Jesus delays his coming we will see more wealth created in India, China, South Korea, Indonesia, etc....and we will see the prominence of the U.S. global position in quickening decline.
With all of our blessings of wealth, we should have been a creditor to the world....but instead we took Satan's bait and did the opposite. And now we will be a slave to the world for the $trillions of their dollars we borrowed at interest.
Hat tip to Mike S.