Financial collapse
I originally posted the following to Facebook on March 25, 2020:
If you were forced to choose between this viral outbreak or a new world war, which would you choose? It’s probably a no-brainer that the majority of people would choose the outbreak. While both bring a risk of death, war specifically brings so much more risk like the death of a whole generation of youth, destruction of cities and infrastructure, loss of territory or government, etc. Financially speaking, during the threat of the second world war, the stock market only dropped roughly 30%. Why is it then that the market from this outbreak has already exceeded such a drop and will likely deleverage much further down? After all, the outbreak doesn’t seem to pose as much economic risk as a world war.
A world war is a huge drain on a government’s pocket book, so how did the United States fund it? They sold war bonds and increased taxes. They actually had to raise the money needed to fight it, and people willingly sacrificed and worked very hard to do so. So then, how is the government paying for the economic effects from this outbreak? They’re flat out creating money out of thin air to bailout whole industries, citizens, and municipalities. What do you think the ramifications of these actions will be?
Don’t let the outbreak be the scapegoat for financial collapse… it was simply the straw that broke the camel’s back. Despite all time stock market highs just a month ago, the economy was not healthy. The financial problems of 2008 were never truly addressed. The cause was massive debt and the bailouts were simply a tainted band-aid over a mortal wound that ultimately compounded the problem. Today, there’s far more national, corporate, and consumer debt than ever before. The Federal Reserve, fractional reserve banking, and government overspending is all to blame this collapse (each a problem over a century in the making), not the viral outbreak.
The government will be sending us checks, not only to help due to hardship from the collapse, but primarily to try and prevent a deflationary spiral of the currency (deflation could actually be good for anyone that has savings and is not in debt, though not so good for a government and people so deeply in debt). They’ll try and print money to keep the economy from locking up to a stand-still. However, at some point they’ll overshoot the target, swinging things the other way and we’ll face out-of-control inflation.
Friends, I care for you. I really don’t want to be an alarmist, but I think it’s vital that people understand this and I beg you to plan for it. If you can, use this money that you receive to buy things that can hold on to value as we’re either likely headed into a Great Depression and/or a complete monetary reset. Don’t be alarmed if these value items appear to decrease in value in the short term, as it’s very difficult to know precisely when things will dramatically swing the other way. This is a serious situation, but don’t stress. Be wise with what you have and trust that God is in control. He could have chosen for this to not happen, therefore we can trust that this must somehow benefit His kingdom more than if it didn’t happen and ultimately win more souls over to it. Frankly, our monetary system was based on hidden evil practices that robs everyone without their knowledge. Perhaps this may finally be our opportunity to build a new and better society that doesn’t rule by theft, murder, and debt to future generations, but instead by voluntary actions, loving peace, and money that’s not based on debt.
If you want to learn more about the economics mentioned, I’ll post some helpful videos…
If you’re interested in learning more about how the current monetary system functions, I suggest watching this video that discusses the rigged and warped process for how currency is created, circulates, and multiplies:
And to take it further, if you want an idea how deflation and inflation might play out in the near future, I suggest watching this video, starting from the 20:11 mark:
Here’s a great video that’s a good overview of money vs credit and boom/bust cycles (without so much doom and gloom):
February 2022 retrospect
Looking back on where I was coming from on this post, things bounced back a lot faster than I imagined they would. Yet, now we’re experiencing the inflation that I, and many others, predicted. So much so that the Federal Reserve is signaling that they will begin interest rate hikes soon — which seems like the wrong solution to a supply-side problem. I think the market will fix the supply issue itself probably just in time for the infrastructure bill to unleash much more currency into the economy.
