Tuesday, September 13, 2011

Reports of Greece's economic default quickly retracted

The economy is dying. We can hear the death rattle and see the seizing gasps.

We read that in America, poverty is rising to unprecedented proportions. We read heartbreakingly that almost one quarter of all US children are living in poverty. Income is plummeting, and job growth is stagnant with unemployment at new heights.

In Europe, the situation is worse. Far worse. The Euro-zone, that is, European nations that have linked up their economies under one currency, are defaulting or are at near default. Greece has been teetering since the crash of 2008. Successive bailouts by the wealthier European nations have proven fruitless. "The Greek debt-to-GDP is currently at 140%. It will be close to 180% by year’s end (assuming someone gives them the money). The deficit is north of 15%. They simply cannot afford to make the interest payments. True market (not Eurozone-subsidized) interest rates on Greek short-term debt are close to 100%, as I read the press. Their long-term debt simply cannot be refinanced without Eurozone bailouts" wrote economist John Mauldin recently.

The problem is if Greece goes, Italy and Spain might go. Italy recently turned to China for help and it looks like China will help. But is it all too late? Is the snowball too big and rolling down the hill too fast? Reports from The Netherlands tonight state that Greece is already defaulting.

Translated from Dutch:
FINANCE: GREECE GOES BANKRUPT
"The bankruptcy of Greece is under the Ministry of Finance inevitable. Sources that have reported to RTL News. The question of the ministry is no longer whether but how Greece went bankrupt. Greece would be impossible to meet all debt obligations. The ministry calls for a controlled form of bankruptcy to prevent panic. Problems occur in other countries...If not in a controlled manner is, other weak euro countries like Italy and Spain in big trouble. If these countries do not stand up, pop the eurozone apart and chaos is incalculable."

Because economic news is so skittishly tied to the rumors that prop up stocks and finance, and any report as bombshell as this one would ignite the whole Euro-zone, the push-back was swift. Denials were almost immediate. The following headline is original to Business Insider:

THAT WAS FAST: Now The Dutch Are Denying Reports Of Inevitable Greek Default
"Update: Unbelievable, the report has already been rejected by the Dutch. The speed of rumor and rumor-denial right now in the markets is just bonkers."

The international alarm is growing as euro zone crisis grows
"International alarm over Europe's debt crisis hit new heights on Tuesday, with President Barack Obama pressing the bloc's big countries to show leadership as talk of a Greek default escalated and markets heaped pressure on Italy. German Chancellor Angela Merkel sought to quash talk of an imminent Greek default or exit from the euro zone, but confusion over whether she would issue a joint statement on Greece with French President Sarkozy sent markets gyrating up and then down."

Why is there such panic over a Greek sovereign default? Here is a "REMINDER: Here's Who Gets Crushed If Greece Goes Bust"
1. Japanese banks hold $432 million in Greek debt
2. Spanish banks hold $540 million in Greek debt
3. U.S. banks hold $1.5 billion in Greek debt
4. Italian banks hold $2.35 billion in Greek debt
5. UK banks hold $3.4 billion in Greek debt
6. French banks hold $14.96 billion in Greek debt
7. German banks hold $22.65 billion in Greek debt
8. Greek banks hold $62.8 billion in Greek debt
9. But banks in Europe have been working to cut their exposures
10. Greek Banks Downgraded by S&P
11. Moody’s expected to downgrade Soc Gen, BNP Paribas, and Credit Agricole this week
12. ...

No wonder they are panicking. Globalization apparently has its downsides. So what do this have to do with the end time and then the Tribulation?

Revelation 6 and Revelation 13 and Revelation 18, that is the tie-in. Revelation 6 shows us that the Third Horseman is famine. "When He broke the third seal, I heard the third living creature saying, “Come.” I looked, and behold, a black horse; and he who sat on it had a pair of scales in his hand. And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine."

A denarius at that time was an entire day's wage. So people in the Tribulation are working but the inflation is such that it takes a whole day's pay to get a loaf of bread. Revelation 13:16-17 shows us that the global economic system has been reformed into a tightly controlled, one-currency system overseen by one man: the antichrist. We do not have such a system now, but the world will when the Tribulation arrives. Last, Revelation 18:11-16 shows that despite the terrible poverty of most of the world crying for enough pay for a loaf of bread, luxuries are traded by people who are still wealthy. There is the abject poor dying int he muddy streets, and there is the grossly rich laughing it up during the most depraved tiem in all human history.

Things are progressing quickly now. Hal Lindsey's report this week was tremendously informing of the untenable situation in Syria. It is called "Fortress Syria." He lays out the pieces leading to the Isaiah 17, Psalm 83 and Ezekiel 38-39.

In Israel, there are reports of unrest. Right wing extremists are turning from targeting Arabs to targeting their own Israelis.
"Extreme right-wing Jewish activists in the West Bank have moved from spontaneous acts against Arabs - following the demolition of Jewish homes by Israeli authorities, or terror attacks against Jews - to organized planning that includes use of a database of potential targets, according to new analysis by the Shin Bet security service."

Rife with natural disasters, 2011 will become the most expensive weather year ever. Several volcanoes are waking up, "It has been almost 20 years since there has been any volcanic activity in these stretch of four volcanoes, but two are on yellow alert after signs that that dry spell of activity may be coming to an end soon. Ruiz and Machin are both on elevated alert status, but Machín is the more interesting of the two as it has likely been almost 900 years since it last erupted." The magma dome on Alaska's Cleveland volcano is growing, and the worst case scenario of La Palma in the Canary Islands shows growing quake swarm.

Things are falling apart. There is no other way to say it. Things and coming apart politically, economically, financially, and naturally. This is by God's design. He allows sin to take its natural course, and that always means degradation of all things. Satan is in charge of this world and that means that evil reigns. God impacts the world at His decision and in His way and that means disruption of all humans systems. Why? because God is a Big Ole Meanie? No. Because His ways are best and ours are not. Because He has told us righteous ways of living and proper governments and we fail because we are sinful.

The things will fall apart and He will allow it because in the end, the government is on His shoulders. "For a child will be born to us, a son will be given to us; and the government will rest on His shoulders; and His name will be called Wonderful Counselor, Mighty God, Eternal Father, Prince of Peace." (Isaiah 9:6)

"Politics and government. We seem to see them as necessary evils, bringing frustration in the present but still giving us hope for the future. Our contradictory attitudes about politics are revealing. We recognize the failure of human solutions, but at the same time we know something must be done to fix what’s broken in the world. What man can’t do, God has done; He’s given the Messiah."

“The government will rest on His shoulders” affirms His lordship. This verse looks to a time still future when Christ will reign over a literal, earthly, geopolitical kingdom that encompasses all the kingdoms and governments of the world (cf. Daniel 2:44; Zechariah 14:9).

"In that day, the government of the whole world will rest on His shoulders. But until that time, His kingdom is in an invisible form (cf. Luke 17:20-21). The Messiah’s rule is over those who trust Him and obey Him as Lord. It’s currently an invisible kingdom, but will one day become visible and universal as His rule extends even over those who do not acknowledge His lordship in their hearts."(source)

That time is fast approaching. I see it coming and I know the Lord is my friend. Is He your friend, or your enemy? Will He usher you into His kingdom and welcome you to His government? Or will He banish you into oblivion as an enemy? He leaves the choice up to you.

4 comments:

  1. That is so crazy. It reminds me that we have no hope of any financial security here on earth, at all.

    Also, Elizabeth. I read your articles about lightning before so I wanted to let you know that today in CA 3 firefighters were struck by lightning. Thankfully they are alright. Here is a link to the article. They were fighting a fire caused by lightning.

    http://latimesblogs.latimes.com/lanow/2011/09/3-firefighters-injured-lightning-mt-pinos.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+lanowblog+%28L.A.+Now%29&utm_content=Google+Feedfetcher

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  2. Yes, Europe is a mess, no doubt about it. Hopefully, Europe can hang on a while longer. It will be terrible, but interesting, to see what eventually happens. We live in amazing times.

    Poverty in America is a completely different story. Check out the facts in this report by The Heritage Foundation:
    http://www.heritage.org/Research/Reports/2011/09/Understanding-Poverty-in-the-United-States-Surprising-Facts-About-Americas-Poor
    The vast majority of the "poor" in America are rich by world-wide standards.

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  3. I agree the convergence of all these events seem to be reaching higher and higher heights of craziness every month. It used to be interesting seeing what was happening but now... You can literally see the swarm of birth pangs just blending into one another. My hope is in Christ alone but it's just extremely sobering when you think of how many people are either asleep, deceived and just living in rebellion against God. HOW with all these signs going on and everything foretold in the word of God HOW.

    I also agree that America's poverty is very relative but it still a sign of the crumbling of this country along with the rest of the world. The rich are getting richer and the poor are getting poorer. I also do not think most american are aware of how devastating to the global economy the crisis in the EU could be, they hear but they don't understand because it doesn't seem to involve America.

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  4. I also agree that the US's poor are rich by world standards, but comparing apples to apples, US economy over time to US economy, our standard of living is declining rapidly. This is worse for us than if it happened say, in USSR, because the citizens there when they endured the collapse of the Soviet union were not an entitled generation.

    Dmitry Orlov's sociological comparison of the Soviet collapse compared to our upcoming collapse is eye-opening indeed. His blog (http://cluborlov.blogspot.com/) thoughts on the subject are now in a book called "Reinventing Collapse", but an excerpt titled "Closing the 'Collapse Gap': the USSR was better prepared for collapse than the US" is here (and it was written in 2006, years before the 2008 crash).

    http://www.energybulletin.net/node/23259

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