Sunday, February 12, 2006
STOCK MARKET COLLAPSE
A Caller from England was on Israel National Radio Sunday morning (FEB 12), and what he said amazed me how prophesy is coming to pass. He said Iran and the European Union would make a deal that the Oil would be in EU euros instead of dollars.
He said if everyone in the World switched to the Euro, the dollar would devalue, it would plunge the USA into inflation and he said it would be worse then the 1929 stock market crash. And he is right on by saying this. Look at these scriptures that prove hes correct by saying it would be worse than the 1929 CRASH, IT WILL BE A WORLD CRASH and the EU like the Bible says will control the commerce of the world.
HOARDING OF GOLD AND SILVER (STOCK MARKET COLLAPSE)
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.
10 Standing afar off for the fear of her torment, saying, Alas, alas, that great city Babylon (USA), that mighty city! for in one hour is thy judgment come.
11 And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:
12 The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,
13 And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.
14 And the fruits that thy soul lusted after are departed from thee, and all things which were dainty and goodly are departed from thee, and thou shalt find them no more at all.
15 The merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing,
16 And saying, Alas, alas, that great city, that was clothed in fine linen, and purple, and scarlet, and decked with gold, and precious stones, and pearls!
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
Standard & Poor's specialists predict global economic Armageddon
Experts of Standard & Poor's forecast a global economic collapse. The collapse will be caused with the demise of the US dollar rate against the European currency by more than 30 percent. The dollar, specialists say, may lose almost 45 percent of its current value against the euro. However, it is obvious that even a 30 percent reduction will affect the international economy
Standard & Poor's (SP) ties the possible decline of the American currency with the imminent rise of the European economy and the payment shortage of the USA, which made up 6.4 percent of the nation's GDP last year ($790 billion). SP analysts emphasize the restricted growth of the USA's GDP, which has been behind the level of ten percent for quite a while. US assets – securities and real estate – successfully compensate the 6.5 percent payment shortage of the GDP at present.
The assets enjoy very good demands on the market: the growth of their cost outstrips the growing volume of the payment deficit. SP specialists believe, however, that the cost of the above-mentioned assets has been increasing for a very long time. This process is expected to stop sooner or later, SP analysts say.
If it happens, the issue of the US dollar stability will surface immediately. The global economic collapse will follow shortly after that. The European Central Bank has expressed its concerns with the forecast from Standard & Poor's. European financial specialists say that the demise of the American currency will endanger the global economy on the whole.
Alex Weber, a member of the ECB council, stated during the recent Economic Forum in Davos that international investors do not pay enough attention to the risks which the global economy has to face at the moment. The President of the European Central Bank Jean-Claude Trichet agreed with his colleague. According to Trichet, the world will have to pay a huge price for the ongoing increase of the payment deficit in the USA.
The forecast from Standard & Poor's contains several contradictions as well. The US dollar has very strong defenders outside the USA – China and Japan. The two countries acquire the stocks of the US Treasury to support the dollar. The dollar share makes up 70 percent (almost one trillion US dollars) of the Chinese currency reserves despite the continuing process to reduce the dollar constituent in China's reserves. Therefore, China is highly interested in the preservation of the dollar value.
If the pessimistic forecast from Standard & Poor's is destined to come true, the declining dollar will affect the world economy entirely and lead to unpredictable consequences.