M&M on Brexit financial chaos

  Trading floor of the New York Stock Exchange

Trading floor of the New York Stock Exchange

 

Money & Markets’ Mike Larson reported this related to the financial markets and the Brexit vote:

June 27, 2016

Friday and this morning, the wheels came off our stock market. The Dow Jones Industrial Average plunged 871 points in just two trading days, while the S&P 500 sank to a three-and-a-half-month low. The Nasdaq Composite tumbled more than 113 points after losing 202 points at the end of last week.But even that doesn’t speak to the carnage in select sectors and assets. …

What’s behind this financial bloodbath? The Brexit vote is the immediate trigger, obviously. Wall Street went into Thursday’s close ecstatic about the “Remain” vote they were confident was coming … only to get completely blindsided when “Leave” won. So investors were caught massively offsides, and have been scrambling ever sense to sell and/or hedge in order to get in better position.

It’s much more than that, though. European politicians and global central bankers are running around trying to figure out what to do, holding panicked meetings, teleconferences, and conversations on both sides of the Atlantic and Pacific.But as I asked the other day, what more can they really do? They’ve already slashed interest rates more than 650 times. They’ve already bought more assets than ever before, artificially inflating virtually every market on the planet in the process. And they’ve already pledged to do “whatever it takes” more times than I can count.

But none of their medicine actually worked for the real economy — and in fact, it’s now actually hurting more than helping. That’s forcing more investors to finally accept what I have told you for many, many months: Central bankers have lost control of themarketshttp://www.moneyandmarkets.com/wheels-come-off-european-banks-british-pound-bond-yields-crash-79557

Of course, often markets often rise as well. As I wrote late last year, it was likely we would have financial volatility in 2016 (see M&M: Expect financial volatility in 2016). And now we see it.

It is true, as Mike Larson wrote, that the usual government ‘solutions’ have been tried.

It is also likely that the governments in Europe, as well as in the USA and UK, have provide ‘liquidity’ to the markets to try to stop them from experiencing a free fall.

Many ordinary investors, as well as institutional ones, are getting hurt by this.

The ‘liquidity’ provided is normally an increase supply of electronic, and sometimes printed, money. This tends to decrease price drops.

Now as Mike Larson correctly pointed out, there is a major need to improve the REAL economy.  But that is difficult and beyond what politicians can do much about, especially in the short run.

Partially to ‘stimulate’ economies, as well as dealing with various crises, governments have devalued their currencies by making their coins ‘dross’ and this has led to various problems throughout history.

This diluting of the value of coinage/currency is condemned in the Bible.

4 Take away the dross from silver (Proverbs 25:4a).

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

18 “Son of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: ‘Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.’” (Ezekiel 22:18-22)

Although the Bible warns against using dross and diluting the money supply, modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA.

As I have long written, economic problems in Europe will likely propel the rise of the Beast power that the Bible warns about.

In a sermon on July 7, 1984, the late Herbert W. Armstrong stated:

And I can see now, the event that is going to trigger the formation of the reunification in Europe; the resurrection of the medieval Holy Roman Empire that we’ve been looking forward to that is prophesied to come…

But I believe that some event is going to happen suddenly just like out a blue sky that is going to shock the whole world and is going to cause the nations in Europe to realize they must unite! … Well now I think I can see what may bethe very event that is going to trigger…that is the economic situation in the world

The whole banking structure in the United States is a network all jointed together. But not only that, one nation has to deal with other nations and imports and exports. And so they have to have a means of transforming money from one nation to another. And so the banking structure is international and interwoven…

Now when the financial structure breaks down, all civilization is going to break down…

Although Herbert W. Armstrong had issues with some of his prophetic and other writings, his observations about what may propel the rise of the Beast power in Europe seem to be consistent with what is happening now: the main reason that countries seem to wish to be part of the European Union is economic.  There are also defense reasons, which for most have been secondary, but the defense portion will also be involved in the rise.  It is also likely that Islamic issues will lead to the rise.

As I wrote a few days ago, it was my view that, contrary to positions expressed by Franklin Graham, the Brexit vote would bring us closer to the time of the end (see Franklin Graham claims Brexit vote is a blow to ‘one world government,’ but . . .).

The time for the European King of the North to emerge is getting closer. The Brexit vote was one step in that direction (watch also Post Brexit Prophecy).

http://www.cogwriter.com/news/prophecy/mm-on-brexit-financial-chaos/

 

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