Largest Financial Bubble in World History

 Last year we spoke at a church event for Seniors. We spoke about our belief, backed by scripture, that the world will be “pretty much business as usual” right before the rapture of the church. People will be marrying, giving in marriage, eating, drinking, planting and building.  If the entire global financial system were to collapse today, the chaos that would ensue would most likely NOT meet the parameters that Jesus spelled out. We know the financial markets will implode but it is our blessed hope that Jesus calls us into the clouds before this happens.  In the meantime we have billions of lost souls who need to hear the Gospel. Maybe your next door neighbor or your best friend from High School?

************************

As we begin 2021, global markets signal a rebound in economic activity. The widely held belief is everything will eventually bounce back to pre-pandemic levels once COVID is vanquished. At least, that’s the consensus. Unfortunately, it’s not reality. The global economy is in terrible shape, maybe even in terminal condition.

Right now, the global economy is much like someone who just survived a bad car wreck. Immediately afterward, they walk away. They feel and look fine, and they think they’ve escaped unharmed. They don’t yet realize the extent of their injuries and only discover how serious they are hours or days later. This is where we are right now with the global economy.

Government programs have covered up the true extent of the damage, but they can’t do so forever. Business bailouts, direct government payments to individuals, and rent and mortgage moratoriums have delayed the pain. Because of them, many people can’t see the true extent of the economic damage. But these government band-aids won’t prevent the inevitable. The economy won’t “spring back” due to pent-up demand. Yes, once the pandemic ends, more people might decide to take cruises or eat out at restaurants. But they won’t book two cruises for the same weekend or order 15 meals in a single night to make up for the cruises they would’ve taken or the meals they would’ve eaten. Those transactions are lost forever.

In many cases, the economic damage from COVID-19 is permanent. The National Restaurant Association reports more than 110,000 U.S. restaurants permanently closed their doors in 2020. This is compared to 2019 which saw an increase of more than 10,000 restaurants, and the carnage isn’t over yet. Many of the 2020 survivors will go out of business in 2021. More than 15,000 retail store locations closed their doors in 2020 in the United States alone. The list of companies impacted includes iconic brands like Pier 1 Imports, Lord & Taylor, and Neiman Marcus.

Rent and mortgage forbearance has kept many from losing their homes, but what about the landlords and bondholders who haven’t been paid? Eventually, someone has to pay for all those who have lived rent and mortgage free in 2020. And what about the commercial real estate industry? With restaurants and retailers not making their lease payments, commercial real estate firms face ruin. With many employees successfully working from home, many commercial real estate leases won’t be renewed. This leaves vast amounts of office space vacant in big cities throughout the world. And this is just one example of the coming debt defaults and bankruptcies that will soon ripple throughout the entire global economy.

Right now, the world is drowning in debt – $277 trillion in debt. Much of that will never be paid back. When the defaults and bankruptcies start to take place, they’ll cascade throughout the global banking system and create another financial crisis. The only way to avoid a massive deflationary spiral like the Great Depression will be for governments to print and hand out currency to keep people and businesses from going under. But this will create its own crisis – a hyperinflationary crisis. In other words, there’s no way out. We’re on the brink of a major financial crisis. Government policy can delay it, but any delay is simply the calm before the storm.

https://www.raptureready.com/2021/01/22/the-coming-market-crash-by-britt-gillette/