Posts Tagged ‘International Monetary Fund’

Wilfred HahnBy Wilfred J. Hahn
Eternal Value Review

Policymakers around the world continue to bemoan the state of world economic affairs, desperately grasping for solutions. The major challenge today is that nations are inclined to search out solutions that meet their own vested interests. After a long period of global convergence (driven primarily by globalization) globalism is going into reverse. Global cooperation is deteriorating. The most apparent symptom of this development is the widespread pursuit of currency manipulation. Countries representing the majority of world’s economic output (counting more than 30 countries) are now openly trying to outmaneuver each other by attempting to export their problems away. It is a mutually defeating strategy. What to do about these divergent policies? A wide variety of solutions are being recommended, most of these from the very same policymakers and macro-economists that didn’t foresee the disaster of the Global Financial Crisis (GFC) in the first place. Most revealing are the calls for a “master world ruler” Here is a representative quote from a publication put out by Martin A. Armstrong, a one-time influential financial economist.

“[…] this is that moment in time when the 1-year office of Roman Dictator is critical. We are in desperate need of our modern Cinncinnatus (570-451 B.C.) to come in, revise the world economy, and retire. We so desperately need someone with experience and the understanding of how the international economy even functions to save the day. It will never happen. But this is why political reform is so crucially needed to provide for such an option. The solutions are easy. The world could be saved NOT in 100 days, but in just 30 days! (Source: Martin A. Armstrong, A Total Eclipse of the Economy, December 2010)

All of these developments, though possibly only early indications of future prophecies yet to be fulfilled, align with the Bible’s pronouncements about the endtimes and the coming Tribulation period.

“For the secret power of lawlessness is already at work; but the one who now holds it back will continue to do so till he is taken out of the way. And then the lawless one will be revealed, whom the Lord Jesus will overthrow with the breath of his mouth and destroy by the splendor of his coming. The coming of the lawless one will be in accordance with the work of Satan displayed in all kinds of counterfeit miracles, signs and wonders, and in every sort of evil that deceives those who are perishing. They perish because they refused to love the truth and so be saved. For this reason God sends them a powerful delusion so that they will believe the lie and so that all will be condemned who have not believed the truth but have delighted in wickedness.” — 2 Thessalonians 2:7-12

Related Links


IMF Is Solution to Global Crises – Strauss-Kahn – Right Side News
Food costs at records, UN warns of volatile era – Reuters
Who/What is the restrainer in 2 Thessalonians 2:6? – GotQuestions.org
Food stamp usage up 14 percent from last year – Christian Science Monitor
EU leaders wrangle over debt crisis measures – Bloomberg
Shippers Concerned Over Possible Suez Canal Disruptions – CNBC

Advertisements

Todd StrandbergBy Todd Strandberg
Rapture Ready

There is every indication that Europe is entering a more severe phase of its sovereign debt woes. A new crisis is unfolding despite Herculean efforts by the European Union, the International Monetary Fund, and the U.S. Federal Reserve.

In May, Eurozone members and the IMF gave Greece a $143 billion bailout. Last month, Ireland was given a $113 billion lifeline to mostly cover losses from its two largest banks. The market now fears that Portugal, Spain, Italy, Belgium, and the UK will need rescue packages to cover their debts.

The EU has already created a $700 billion rescue fund for all debt problems, so a bailout of Portugal can be managed. Spain is the nation that has analysts and investors worried. It has the fourth-largest economy in the EU, and it would need at least a $500 billion bailout. Of course, this would require Europeans to revise their rescue fund.

The lockup of the debt market may force the EU to act. Spanish banks will need to refinance about $111 billion in debt next year, and money managers have suddenly lost their appetite for bank debt. In November, Spain’s financial companies sold $390 million of bonds in Europe. This compares with $3.08 billion in the same period a year earlier.

Bailing out an EU member is no guarantee that it won’t later get back in line for another handout. Greece, which the authorities thought was largely cured, has suffered a relapse. Its economy is in freefall, and the debt-to-GDP ratio was increased from 11 to 13 percent. The default swaps – insurance-like contracts for bonds – are now double what they were before the nation’s first bailout.

All these bailouts may eventually put Germany at risk of default. The Germans are the most industrialized members of the EU, and they are rapidly growing tired of having to help finance a rescue plan for another one of their deadbeat neighbors every few months.

Last week, a new law forced the Federal Reserve to admit that it had loaned out a vast amount of money to European Banks. In total, the Fed had promised what equaled a staggering $9 trillion. Many on Wall Street were impressed that the Fed was able to write hot checks for such a large amount, but it meant that the Fed was forced to make a life-or-death gamble with the world’s financial system. If we suffer round two, Fed chief Ben Bernanke will probably make another all-or-nothing gamble.

One of the best barometers of our ability to contain the sovereign debt bubble is the performance of U.S. ten-year bond. Because the dollar is the world reserve currency, international traders run to the ten-year note during times of trouble. They typically bid up the price and drive down the yield.

In the past few weeks, the ten-year has lost some of its safe haven role. Despite the Federal Reserve’s continuing plan to buy $100 billion of bonds each month, rates have still been rising. When word slipped out that Uncle Sam might be asked to chip into a larger IMF bailout fund for Europe, the ten-year plunged in value.

The rate on the ten-year is now above 3 percent, and economists are very worried about it going any higher. Because the U.S. has such a massive debt, we need to maintain low interest rates. If rates rose to 5 percent, it would double the size of our interest payment, which would result in a $2 trillion annual deficit. If rates went to 8 percent, we would have a $3-trillion-dollar shortfall.

The debt-domino nations will certainly continue to fall. The question here is what impact they will have on Bible prophecy. As the situation becomes unmanageable, we may see several nations get kicked out of or leave the EU. Since there are currently twenty-seven member states, a major realignment would need to occur to reach the ten members predicted by Daniel and John the revelator.

“And the ten horns which thou sawest are ten kings, which have received no kingdom as yet; but receive power as kings one hour with the beast. These have one mind, and shall give their power and strength unto the beast” (Revelation 17:12-13).

Related Links


Merkel rebuffs IMF call for EU fund – Business Spectator
Scenarios: Pressure on ECB, euro zone to act on debt crisis – Reuters
Gold settles at record high, tops $1,416 – MarketWatch
The Prophecy of The Ten-Nation Confederacy – Bible.org (John F. Walvoord)
Are You Rapture Ready?: Signs, Prophecies, Warnings, Threats, and Suspicions that the Endtime is Now – Todd Strandberg (Book)