Birth Pangs of the Coming Great Depression

We have no idea exactly how this collapse is going to go down, and we certainly have no idea when it's going to go down....but we are starting to see some possibilities of how it might happen.

Think about this....
The USA has been hopelessly spending money for years.  Money that it doesn't have and money that we all know can never be repaid.  But all of a sudden, in spite of being on a trajectory that is UNSUSTAINABLE, America becomes the LEAST WORST PLACE to have your money.  The dollar actually starts getting stronger!  The investors of the world start desiring to own US dollars as they look at the Russian Ruble, Brazilian Real and even the Euro...and the value of the dollar goes up!  Who would have guessed this turn of affairs could have happened as we watched the carnage of 2008 put Lehmann Brothers out of business?!  So now just imagine that the world dumps even more of their "currency" into the US Dollar....and then the US Dollar has an epic collapse.  Where will everyone flee to?  The entire global financial system could implode as the derivatives markets reveal the massive house of cards that had been built.  The world will realize that there was no firm foundation...and the panic that would ensue could be tremendous.  Is it any wonder that the reports are coming in that the uber-wealthy are buying homes with airstrips in places like New Zealand so they can fly off and avoid the global unrest that they see coming?

The signs of the times are everywhere – all you have to do is open up your eyes and look at them. When a pregnant woman first goes into labor, the birth pangs are usually fairly moderate and are not that close together. But as the time for delivery approaches, they become much more frequent and much more intense. Economically, what we are experiencing right now are birth pangs of the coming Great Depression. 

As we get closer to the crisis that is looming on the horizon, they will become even more powerful. This week, we learned that the Baltic Dry Index has fallen to the lowest level that we have seen in 29 years. The Baltic Dry Index also crashed during the financial collapse of 2008, but right now it is already lower than it was at any point during the last financial crisis. In addition, “Dr. Copper” and other industrial commodities continue to plunge. This almost always happens before we enter an economic downturn. 

Meanwhile, as I mentioned the other day, orders for durable goods are declining. This is also a traditional indicator that a recession is approaching. The warning signs are there – we just have to be open to what they are telling us.

And of course there are so many more parallels between past economic downturns and what is happening right now.

For example, volatility has returned to the markets in a big way. On Tuesday the Dow was down about 300 points, on Wednesday it was down another couple hundred points, and then on Thursday it was up a couple hundred points.

This is precisely how markets behave just before they crash. When markets are calm, they tend to go up. When markets get really choppy and start behaving erratically, that tells us that a big move down is usually coming.

At the same time, almost every major global currency is imploding. For much more on this, see the amazing charts in this article.

In particular, I am greatly concerned about the collapse of the euro. The Swiss would not have decoupled their currency from the euro if it was healthy. And political events in Greece are certainly not going to help things either. Economic conditions across Europe just continue to get worse, and the future of the eurozone itself is very much in doubt at this point. And if the eurozone does break up, a European economic depression is almost virtually assured – at least in the short term.

And I haven’t even mentioned the oil crash yet.

There is only one other time in all of history when the price of oil collapsed by more than 60 dollars, and that was just prior to the horrific financial crisis of 2008.

Since the last financial crisis, the oil industry has been a huge source for job growth in this country. The following is an excerpt from a recent CNN article…

The oil sector has added over a half million jobs — many of them high paying — since the recession ended in June 2009. That’s 13% of all US job growth over that period.

Now energy companies and related sectors are laying off thousands. Expect that trend to continue, bears say.

But losing good jobs is just the tip of the iceberg of this oil crisis.

At this point, the price of oil has already dropped to a catastrophically low level. The longer it stays at this level, the more damage that it is going to do. If the price of oil stays at this level for all of 2015, we are going to have a complete and total financial nightmare on our hands…

For the first time in 18 years, oil exporters are pulling liquidity out of world markets rather than putting money in. The world is now fast approaching a world reserve currency shift. If we see 8 to 12 months at these oil prices; U.S. shale industry will be wiped out. The effect on junk bonds will cascade to the rest of the stock market and U.S. economy.

Read more at http://www.prophecynewswatch.com/2015/January30/301.html#lU2i2PymGsBBjrAO.99

We continue to quote Jan Markell as we read the daily calamitous headlines....World events are not falling out of control but instead are falling into place, exactly as the Bible said they would.

Jesus said that we aren't supposed to fear these things because we know where our eternal homes are...but he also says that the earthquakes, wars, famine, pestilence and wars will continue to worsen as His return nears.  So let's continue to "watch" in amazement!  We worship a God who knows the future!  He knew us before we were born and He knows us in eternity!

Amen!  Even so, come Lord Jesus!