Posted on 08/21/2021 5:04:23 AM PDT by Roman_War_Criminal
Today marks the 50th anniversary of one of the most significant events in world history. On August 15, 1971, Richard Nixon announced he was “closing the gold window,” thus ending the U.S. dollar’s convertibility to gold. This ended the post-World War II Bretton Woods monetary system where the world operated on a gold-backed U.S. dollar with other world currencies pegged to the dollar. It also began the new era of fiat currency and sowed the seeds of the next great financial crisis. Fiat currency is not backed by commodities such as gold or silver. Its only value comes from the public’s willingness to accept it as a means of payment. Since Nixon’s announcement, all the major governments of the world have used nothing but fiat currencies. Prior to 1971, this had never occurred in human history.
The Danger of Fiat Currency
Why was Nixon’s announcement such a significant event? Fiat currencies are dangerous. They eliminate government financial discipline and accountability. When nothing backs a currency, the government can print unlimited currency units. The more currency units that exist, the less valuable they all become. If you earn and save in fiat currency, you lose purchasing power over time. The government is essentially stealing from you via inflation. This means government spending is no longer restrained by collected tax revenue or fiscal responsibility.
For example, during World War II, the United States launched a massive war bond campaign to raise the money necessary for funding the war. They did so because U.S. currency was backed by gold and silver. They couldn’t simply “print” the dollars needed to fund the war. But that’s no longer true. Since 1971, the U.S. has funded the world’s largest standing military, fought two wars in Iraq, a war in Afghanistan, and countless other conflicts. In doing so, they never once launched a war bond campaign. They simply printed the dollars they needed.
Since 1971, the U.S. government has been on a spending binge. In 1971, the U.S. national debt was $398 billion. Today, it’s $27.8 trillion. That’s an almost 70-fold increase in debt in the past 50 years. To fund this massive rise in debt, they’ve run the printing press. This means the value of a dollar has decreased significantly in the past 50 years. In 1971, an ounce of gold was $35. Today, an ounce of gold is $1,781. That’s a 98% decline in the dollar’s purchasing power.
And before you attribute the rise in national debt to the declining purchasing power of the dollar, take a look at the debt relative to national income. In 1971, the U.S. debt to GDP ratio was 34%. Today, it’s 127%. That’s an almost four-fold increase in real terms, and it’s a debt level many economists believe is unsustainable. As bad as this is, the United States isn’t alone. In a world awash in fiat currency, debt to GDP ratios are terrible all over the globe. Japan’s debt to GDP ratio is 256%. Canada’s is 116%, and the United Kingdom’s is 107%.
The Eurozone alone is home to a number of troubled nations – Greece (181%), Portugal (132%), Italy (155%), France (115%), etc. Compounding the problem for these nations is they owe their debt in a fiat currency they can’t print. The European Central Bank controls the euro, and that puts all these nations at potential risk of default if they can’t make their debt payments. A default by any of those nations will ripple throughout the European banking system, which holds billions of euros worth of government bonds. If European banks become insolvent, financial contagion will spread throughout the world and plunge the world into a financial crisis far worse than the Great Recession, one with the potential to be worse than the Great Depression itself.
The Central Bank Conundrum
The U.S. Federal Reserve, the European Central Bank, and central bankers throughout the world are well aware of this potential scenario. It’s their worst nightmare. More than anything else, they fear an out-of-control deflationary spiral akin to the Great Depression. This is why central banks engaged in unprecedented measures in 2020 to prop up financial markets as the COVID-19 crisis unfolded. But now they face a conundrum. If they keep these policies in place, we’ll have runaway inflation. But if they reverse their “easy money” policies, they risk triggering the very financial crisis they’re so eager to prevent.
For example, in the United States, interest on the national debt is $378 billion. This is the fourth largest expense in the annual budget. A good portion of the national debt is financed using treasury notes with a maturity of less than ten years. If the Federal Reserve raises interest rates, the interest on the national debt will grow and eat up a larger and ever-growing portion of the annual budget. The same is true for other countries.
In addition, hundreds of U.S. companies are now “zombie” companies. These are heavily indebted, poorly managed companies that depend on low interest rates to meet their loan interest payments. If interest rates rise, those companies will go bankrupt. The same is true for many individuals. A large number of consumers carry variable interest debt. If interest rates rise, they’ll no longer be able to meet their debt obligations. In short, raising interest rates will plunge the U.S. economy into a depression. And the same is true for all the other major world economies.
According to Bloomberg, world debt now stands at $281 trillion. This is the total amount owed by governments, companies, and households. It represents 355% of global output. That’s nearly four times what the world produces in a year. This level of debt can never be paid back. Either it will end in default, or it will be paid back with devalued currency.
The first option will lead to immediate pain and suffering, with bankruptcies, defaults, massive unemployment, and widespread social unrest. The second option offers an alluring promise of a way to avoid such pain. Which option do you think politicians and central bankers will choose?
The Next Economic Downturn
When the next economic downturn arrives, it will be in the form of a severe global depression. Unable to service their massive debts, many individuals and companies will default. Those defaults will leave the banking system on the verge of bankruptcy and politicians scrambling to put together another series of bailout packages. The government and central bank response to this crisis will be bigger than their response to the COVID-19 crisis.
What will they do? They’ll run the printing press. They’ll bail out companies on the verge of bankruptcy. They’ll buy stocks and corporate bonds. They’ll backstop people’s mortgage and student loan payments. They’ll do anything and everything they can in an effort to avoid the inevitable economic pain. And then they’ll institute something they’ve wanted for a long time – universal basic income. Every man, woman, and child will receive a monthly stipend equivalent to an average worker’s salary. A desperate population will welcome it. But it won’t be enough.
When the prices for rent, food, and energy double as a result of all this printed currency, the government solution will be to double the amount of the monthly payments to combat the rising prices of the “greedy” corporations. But the problem won’t be rising prices. The problem will be a failing currency. This process will play itself out over and over until all the world’s currencies are driven into hyperinflation and the entire system comes crashing down.
A Dangerous Time
Hyperinflation has ravaged individual nations in the past – Weimar Germany, the post-war Austro-Hungarian Empire, Zimbabwe, Venezuela, and others. But hyperinflation has never hit all the world’s nations simultaneously. Maybe it won’t this time either. But keep this in mind: never before have all the world’s major economies simultaneously been run on fiat currencies. This experiment is only 50 years old, and it’s quickly coming to an end.
What happens when it inevitably falls apart? What happens when lives are ruined, life savings are lost, and the streets are filled with hungry people? We don’t know. But history provides us with clues. In times of chaos and economic instability, dangerous political leaders and demagogues often rise to power. They capture the public imagination with promises to end the chaos and restore stability. Past economic crises led to events such as the rise of Napoleon, the launch of the Bolshevik Revolution, and the consolidation of German state power in the hands of Adolph Hitler. All these events had grave consequences for the entire world, not just the individual nations involved. Why should this time be any different?
What the Bible Says
The Bible describes just such a scenario in the end times. Revelation 6 says an entire day’s wages will barely buy enough food to survive (Revelation 6:5-6). This describes a world ravaged by hyperinflation, and it’s the backdrop against which the Antichrist makes his drive for global conquest (Revelation 6:3-4).
Ultimately, the Antichrist will implement a global economic system which requires the people of the world to worship him. The Bible says he will require everyone on earth to receive a mark, and no one will be able to buy or sell without the mark (Revelation 13:17). We see the beginnings of this system today as paper currencies give way to digital currencies. Once this transition is complete, government will be able to control all buy/sell transactions, just as the Bible foretold.
This is one of the many Tribulation events casting its shadow on our day and time. Along with the restoration of Israel (Jeremiah 23:7-8) and the many signs Jesus and prophets said to look for, all these events are converging for the first time in history. Jesus said when you see this happen, you can know His return is soon (Luke 21:28). So rather than hang your head at the trials and sorrows set to come upon the world, lift your eyes to heaven. He’s coming soon!
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This economy that is hanging by a thread with an over-bloated stock market with made up money is a big indicator of what is soon going to happen.
Maranatha!
The hits will keep on coming -— just as they have been prophesied
A financial crisis is part of the plan. Give the folks something to worry about, and while they are preoccupied, enact major changes to the structure of the country. When the folks wake up, it will be a different country.
The ruling elite is protected. Their money will not be seized.
Today marks the 50th anniversary of one of the most significant events in world history. On August 15, 1971, Richard Nixon announced he was “closing the gold window,” thus ending the U.S. dollar’s convertibility to gold.
I didn't bother to read past that.
But you bothered to post about it?
Stay of the religion threads then.
I was in my early 20s. My rent immediately increase 30% and coffee in the university coffee machine went from 10 cents a cup to 25 cents. Soon after there were long gas lines and odd and even days at the pump.
Not good.
“Revelation 6 says an entire day’s wages will barely buy enough food to survive”
Venezuela
Egypt
etc.
Here, sooner or later.
(ps. Gold and silver could be used but, Rome and England successfully debased their silver currency in the past)
Bkmk
At 4 o’clock in the morning
A couple of observations:
Jeremiah 29 contains a principle regarding how/that God knows His people and where they are. And that they might have to wait a long time for Him to decide when things will change.
We have a couple of different possibilities as to when the Book of Revelation was written. If written before 66/67 AD ...well, we need to consider the implications of how that is relevant to this discussion.
Thirdly, do you think God is aware of what is happening on earth? And do you think that He has more to say about what happens than, say, Hitler, or the CIA, or Little Rocket Man, or Taliban, or Pelosi, or Biden?
I sure don’t understand much of what is going on. But it seems obvious that America is already being judged, and that there is only Salvation in the Lord Jesus Christ.
You bring up a lot of good points.
Let’s start with Psalm 2
Psalm 2:1-12
1 Why do the nations rage
and the peoples plot in vain?
2 The kings of the earth take their stand
and the rulers gather together,
against the LORD
and against His Anointed One
3 “Let us break Their chains
and cast away Their cords.”
4 The One enthroned in heaven laughs;
the Lord taunts them.
5 Then He rebukes them in His anger,
and terrifies them in His fury:
6 “I have installed My King on Zion,
upon My holy mountain.”
7 I will proclaim the decree
spoken to Me by the LORD:
“You are My Son;
today I have become Your Father.
8 Ask Me, and I will make the nations Your inheritance,
the ends of the earth Your possession.
9 You will break them with an iron scepter;
You will shatter them like pottery.”
10 Therefore be wise, O kings;
be admonished, O judges of the earth.
11 Serve the LORD with fear,
and rejoice with trembling.
12 Kiss the Son, lest He be angry
and you perish in your rebellion,
when His wrath ignites in an instant.
Blessed are all who take refuge in Him.
Even though it’s the Old Testament, notice the references to Jesus (Son, and all who take refuge in Him) etc.
Next let’s check our Romans 1:18-32
18 For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who suppress the truth in unrighteousness, 19 because what may be known of God is manifest in them, for God has shown it to them. 20 For since the creation of the world His invisible attributes are clearly seen, being understood by the things that are made, even His eternal power and Godhead, so that they are without excuse, 21 because, although they knew God, they did not glorify Him as God, nor were thankful, but became futile in their thoughts, and their foolish hearts were darkened. 22 Professing to be wise, they became fools, 23 and changed the glory of the incorruptible God into an image made like corruptible man—and birds and four-footed animals and creeping things.
24 Therefore God also gave them up to uncleanness, in the lusts of their hearts, to dishonor their bodies among themselves, 2 5who exchanged the truth of God for the lie, and worshiped and served the creature rather than the Creator, who is blessed forever. Amen.
26 For this reason God gave them up to vile passions. For even their women exchanged the natural use for what is against nature. 27 Likewise also the men, leaving the natural use of the woman, burned in their lust for one another, men with men committing what is shameful, and receiving in themselves the penalty of their error which was due.
28 And even as they did not like to retain God in their knowledge, God gave them over to a debased mind, to do those things which are not fitting; 29 being filled with all unrighteousness, sexual immorality, wickedness, covetousness, maliciousness; full of envy, murder, strife, deceit, evil-mindedness; they are whisperers, 30 backbiters, haters of God, violent, proud, boasters, inventors of evil things, disobedient to parents, 31 undiscerning, untrustworthy, unloving, unforgiving, unmerciful; 32 who, knowing the righteous judgment of God, that those who practice such things are deserving of death, not only do the same but also approve of those who practice them.
That description reminds me a lot of America and the western world in general (Europe, North and South America). Maybe the entire world?
Lastly, I’ll posit to you 2 Timothy 3:1-7
1 But know this, that in the last days perilous times will come:
2 For men will be lovers of themselves, lovers of money, boasters, proud, blasphemers, disobedient to parents, unthankful, unholy, 3 unloving, unforgiving, slanderers, without self-control, brutal, despisers of good,
4 traitors, headstrong, haughty, lovers of pleasure rather than lovers of God,
5 having a form of godliness but denying its power. And from such people turn away!
6 For of this sort are those who creep into households and make captives of gullible women loaded down with sins, led away by various lusts,
7 always learning and never able to come to the knowledge of the truth.
Sounds like it’s todays world no?
So, my takeaways are:
1. Yes, God is aware of what is happening and He is working His plans according to His Will for those who Love Him (Romans 8:28)
2. He controls everything, and just as Hitler and Pharaoh and those before - He laughs at their plans and will judge every one of them with His Iron Fist of Judgement in all due time. Nobody will escape that.
3. In my opinion FRiend, you need to be ready to meet Jesus TODAY!!! You already wrote that you believe and that there is only Salvation in the Lord Jesus Christ - I say AMEN! We all need to fix and improve our report cards. Tell your friends, your family, your coworkers - they may call you crazy (so what?), but you are doing them a service by advising them that these perilous times that we are living in are a lot closer to happening than anybody else realizes.
I have always thought the Lawless One will arise during global financial crisis
But that’s just a guess, admittedly
That scenario does make the most sense.
We’ll see I guess.
And they’ll be saying “peace and safety”
To all those that believe in the non biblical 19th century philosophy of the pre tribulation rapture and believe that
“This economy that is hanging by a thread with an over-bloated stock market with made up money is a big indicator of what is soon going to happen.”
Sell off all your stocks now, sell off your houses, cut off your internet and mobile phones.
The “hits”?
So why wasn’t the Asian currency crisis the start in your opinion?
The pre tribulation rapture aficionados will grasp to any straw and make it a “significant event in world history”
Rev 6 says
Rev. 6:5–6. 5 When he opened the third seal, I heard the third living creature say, “Come!” And I saw, and behold, a black horse, and its rider had a balance in his hand; 6 and I heard what seemed to be a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; but do not harm oil and wine!”
Josephus described the state of Jerusalem before it fell: “The madness of the seditious did also increase together with their famine, and both those miseries were every day inflamed more and more; for there was no corn which anywhere appeared publicly, but the robbers came running into, and searched men’s private houses; and then, if they found any, they tormented them, because they had denied they had any; and if they found none, they tormented them worse, because they supposed they had more carefully concealed it. . . . [A] table was nowhere laid for a distinct meal, but they snatched the bread out of the fire, half-baked, and ate it very hastily.”
It is also interesting that oil and wine are not to be harmed. Wheat is harvested during Pentecost, during the spring harvest. Yet, oil and wine are not affected indicating that the later harvest, associated with the Feast of Booths, has not been hurt. Thus, the famine is severe but does not last the whole year. The judgments of the seven seals, therefore, are escalating, but have not climaxed yet.
Those climaxed in 67 AD.
Jerusalem was under siege. And the Judeans at that time IN THE city started a civil war.
Can you believe that? You’re under siege by the most powerful army in the world and you decide to have a civil war?
And the three factions burnt each others grain stocks, resulting in a severe famine.
The pre tribulation rapture aficionados will grasp to any straw and make it a “significant event in world history”
Not good with perspective. Small and close is like unto big and far away.
Our own United State is a blip in history. "Where's America in Bible prophecy?!" (About where Cameroon is. Nowhere in particular.)
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