The Biggest Bubble of All

The Internet bubble burst back in 2000 and was followed by the housing bubble.  We are now facing the biggest bubble of them all: the Monetary Bubble.  This bubble is a precursor to hyper-inflation and this environment will take no prisoners.  The megabanks have operated as drug addicts and the Fed has become their “enabler”.  Their actions moved them to insolvency and the Fed has endorsed their actions by funding their addiction.  Bankruptcy of these institutions was the best solution in order to cleanse the system of unfruitful works.

The following is an example of insolvency:

Mat 21:19  And when he (Jesus) saw a fig tree in the way, he came to it, and found nothing thereon, but leaves only, and said unto it, Let no fruit grow on thee henceforward for ever. And presently the fig tree withered away.

We are not to judge the heart of man, only the fruit.  Jesus became a fruit inspector of Israel and found it lacking.  It was bankrupt.  Our Heavenly Father had been longsuffering with the sins of Israel and had once “married” Israel only to divorce later.  The people no longer loved The Lord and chose to live according to fleshly desires.  They gave lip service to serving The Lord but their actions communicated a different direction.  Revelation was converted to tradition and the Glory of The Lord had left the Temple.

Today, the financial industry is no different.  Rather than serve the public, these institutions are exploiting their customers with predatory practices of high and hidden fees, high interest rates relative to their cost of money (nearly 0%), and misleading information about their financial status.  Effectively, they have exploited customers and the government at the same time.

Irresponsibility-a form of untrustworthiness; the trait of lacking a sense of responsibility and not feeling accountable for your actions.  The last fifty years has seen the monetary system go from a conservative, stable system to a casino-style system of greed.  Don’t get me wrong, greed was always there but was in check until Congress lifted the restraints.  Those restraints had been in place since the Great Depression.  Once again we have confirmations that man’s sin nature is alive and operational.  Community banks generally did not participate in the instruments of greed because they knew that they are too small to save.  They simply had to make money through normal, prudent lending and investing practices.

The economic environment is changing.  Baby boomers will swing to the ultra-conservative side by curbing consumption, cutting back on luxury goods, and looking for more secure investments.  It is no surprise that Home Depot and Lowe’s home improvement centers are topping Wall Street estimates.  People will repair and enhance their current homes rather than increase their square footage.  The repair industry will show signs of life.  Homebuilders will shrink to pre-1990’s levels.  Commercial real estate will be the next topic of the network nightly news anchors.  The contraction is rapidly reducing the retail space needs around the country.  Some of the large mall operators have already been mentioned in the financial news media as having serious cashflow problems.

Credit card companies are attempting to keep the current paradigm intact by raising rates and fees while reducing credit limits.  Many of us have received notices of a reduction in credit limits due to lack of activity on the account.  The credit card companies have abused many cardholders with these changes and will force Congress to respond with new regulations.  Leadership maintained the status quo of consumer exploitation until the cries became too loud.

When you add up all of the woes in the current system, you find no good fruit.  The summation of Irresponsible actions over the last forty years has produced the current perfect storm.  Leaders around the world are desperately trying their best to keep the current paradigm intact.  “Hot” money is smelling blood in the currency arena and is now making large investments in precious metals expecting notable appreciation in gold and silver in the coming months and years.  Purchasing power of the U.S. Dollar will substantially decline in coming years with the current economic policies in place.  Stockholder rights have been shredded by the current government intervention in publicly held companies.  Mankind will hold on to recent history as their hope to restore things back to the way they were.  Is the writing on the wall?

Daniel 5:25 “This is the writing that was inscribed: MENE, MENE,TEQEL, and PHARSIN. 5:26 This is the interpretation of the words:  As for mene– God has numbered your kingdom’s days and brought it to an end. 5:27 As for teqel – you are weighed on the balances and found to be lacking. 5:28 As for peres  – your kingdom is divided and given over to the Medes (middle land) and Persians (pure).”

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