The World is Defenceless Against the Next Financial Crisis!

 The World is Defenseless Against the Next Financial Crisis
 

A couple of things I quickly want to mention that illustrate that Daniel’s prophesied “time of trouble such as never was” (and hence our redemption to be with Christ) must be really close now.

First we have a warning today from the central bank of central banks (The BIS) that  The world is defenseless against the next financial crisis. 
The BIS is based in Basel (Switzerland) and appears to be untouchable and beyond any laws. They are planning to introduce a new global currency to replace the failing US dollar and Euro, and thereby maintain their control over global finances (and hence everything else).  So they are setting the stage by issuing a warning that the world should prepare for a financial collapse, and then they will be ready to roll out the solution which they will be in control of. How convenient!  They are likely to introduce their new global currency (currently called the SDR) when it’s obvious to all that the US dollar and Euro have failed due to too much debt, and I think this will be after the “time of trouble such as never was” starts.

This shows us how desperate things actually are at the moment.  China has a vested interest in the world avoiding a financial collapse, because all of its finances and prospects of future growth are likewise tied up in the global economy.  China is worried about the risk of “contagion” – that once things start to collapse it will snowball or result in a melt-down, and hence they will suffer significantly.
The problem is that beyond the global stock market and bond market (approx USD 250 Trillion in size)  you have the global derivatives market which is more than 6x greater at around $1.4 quadrillion. But there are no “hard-assets” backing the derivatives market – it’s really a financial casino of two-way bets mainly between the major banks themselves, and often between the banks and governments (and hence tax payers).   The derivatives market is the means by which they continue to “prop-up” the financial systems since the Lehman’s crises in 2008 (pouring more electronically “printed” money into products that “fix” and “rig” the system, artificially forcing certain prices up (e.g. the stock market and the US dollar) and others down (e.g. gold and silver) to give the appearance that all is well.   
If there are major disruptions to the financial markets, and underling assets move dramatically, then all those holding derivative contracts (which is mainly the major investment banks who effectively run the casino) will be massively exposed.  Compared to previous financial collapses, the world is in totally new uncharted territory due to the recent explosive growth in financial derivatives.   The central banks have to keep pouring more printed money in to prop up the system, and that means that the size of the derivative bubble just keeps inflating – meaning that ultimately the collapse when it finally does come will be so much bigger. 
Once a significant collapse does occur, all the global banks will be in huge trouble and act very selfishly to grab any real assets they can and stay alive, as they have repeatedly done historically.   Interests rates will be hiked dramatically from the current record lows, meaning that business and households will not be able to pay their mortgage payments at such a high interest rates, and hence the banks will then be legally entitled to take over the properties of all who default (i.e. those who miss or fall short on a couple of their interest payments).  Moreover, many countries have now introduced “bail-in” legislations (mainly in Europe so far), which will allow the banks to take over investor savings in order to protect the worth of the banks.  You thought you had money in the bank?  Sorry, you now own shares in the bank, and you will be lucky to sell them at anywhere near the original value of your cash-holdings.  It just shows how selfish those in control of the Kingdoms of Men really are.  
The derivatives market has truly inflated the global economy to stratospheric highs, and is an important reason why the prophesied “the time of trouble such as never was” will indeed be  a time of trouble such as never was, and its highly looking likely to  start in the second half of 2015.

Thirdly, again on the crises in Greece, I’m copying in full below an interesting financial newsletter that illustrates the urgency of the times we are living in.  Some key highlights are:
          Greece will probably “go boom” this week
     If a plan is not implemented immediately to technically reclassify the bankruptcy as not a “default”, then a $3 trillion fuse to a $1.4 quadrillion derivatives bomb will be lit!

     How “sound” is a stock market that makes continual new highs on lesser and lesser volume?

     The only thing holding markets together is confidence …and the only thing keeping confidence from being shattered is the belief that central banks are and will provide a “free put” to all markets.  The skeptics who say “they will do this forever” …can say what they say at their own peril!

     This you MUST understand, when trust evaporates, credit will cease entirely. Without credit, the world will stop spinning. Everything finance and many things real will be gone. The financial house cannot stand with a worthless foundation and distribution of real products will cease as the supply chain breaks.
Finally it’s my firm belief that Christ will return to the household of faith prior to the onset of the time of trouble such as never was (based on the examples of Noah, Lot, AD70, and Christ’s own warning of relative prosperity before he returns), so these events really show how close we actually are.
Even So Come Lord Jesus!
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