The beast vision – part 2, the explanation


This is a part of a series

The current post begins here…

In this post I explain that vision in the current world context.

I believe that I now better understand the vision that I saw. Please take a moment to read that post, because I make reference to it here.

Having read that post about the vision, now take a look at this chart and you will see the “meat” which I mentioned in that vision…

Ben Bernanke doubles the US debt in his tenure

Ben Bernanke doubles the US debt in his tenure

Why did Bernanke print so much money… the preferred answer

The reason he did this is because he is considered an expert in the great depression and his view is that the lack of cash flow (credit) is what caused the collapse. So he has been printing money in order to ensure there is plenty of cash and credit available at all times.

However. Mom and pop are struggling and the cash and credit is being absorbed by banks and the stock market etc.

The down to earth answer

The world has been printing money… “meat” in the vision… and so far it has printed US$6.5 trillion (roughly $2.5 trillion in the US, and $2 trillion in Europe and China each) in debt which is secured by literally nothing other than promises.

In fact the situation is so serious that the US government is buying it’s own debt to prop up the sales of it’s own debt.

Let me clarify that, because it’s the important issue.

Let’s say I sell widgets to other companies. Now those companies get into trouble and they no longer want to buy my widgets. But I have 900 military bases around the world to support and I refuse to give up on my empire, so what do I do? I begin to buy my own widgets. I do this seemingly to show other widget buyers that their purchases are safe and sound – or so I tell them. But in fact what Im doing is propping up the price of my widgets, I dont want the decline in other company’s health to drive down the price of my widgets.

Why dont I want a decline in the value of my own widgets? Less income means I cant afford the military empire that Ive built… it costs oodles of money, so I need someone to buy my widgets… even if it’s just me buying my own widgets.

US$6 trillion in debt (the “meat” in the vision) has been created out of nothing and has been fed to the market (the “beast” which tears into countries that dont feed it the meat).

How much is $6 trillion? In nominal terms, the total 2011 GWP was around US$69.11 trillion. (GWP – Gross World Product is the combination of all the world’s GDPs into one cumulative number).

But we need to add one more figure to that $2.5 trillion of meat that the US has fed the beast, during Bernanke’s QE4 statement he promised to add $85 BILLION PER MONTH to the mountain of debt. The value previously was $45 billion but he upped it to $85 billion. Per month.

Are they really buying their own widgets? Yes.

Here is what the Fed has done to date in the Treasury market:

  • In the 6-8yr. sector they have bought about 50% of the gross issuance
  • In the 9-20yr. sector they have bought about 70% of the 10yr. gross issuance
  • In the 24-30yr. sector they have bought 100% of the gross issuance
  • In the MBS sector they are buying $45 billion a month all across the curve

– QE Ad Infinitum

How does this work? One part of the government – the Treasury – issues the debt and then another part of the same government – the Fed – prints money and buys that debt.

Clearly, if they ever stop buying their own debt, then it’s all over. The price will collapse and no one will buy new debt issuance.

And so far – that I know of – two central bankers have spoken out here is a quote Glenn Stevens (RBA Australia Governor) saying the same thing as the vision which I blogged

“Central banks can provide liquidity to shore up financial stability and they can buy time for borrowers to adjust, but theycannot, in the end, put government finances on a sustainable course… They can’t shield people from the implications of having mis-assessed their own lifetime budget constraints and therefore having consumed too much.”

Challenges for Central Banking – Glenn Stevens – Governor RBA – Address to the Bank of Thailand 70th Anniversary and 3rd Policy Forum – Bangkok – 12 December 2012

Hong Kong Monetary Authority Chief Executive Norman Chan also had reservations about QE as a solution.

FWIW: The real “cliff” started long ago

There is a lot of talk about a fiscal cliff these days. I wrote a warning about a cliff way back in Feb 2011.

Last chance to change – 24 February 2011 – Then a while back, in obedience to the Holy Spirit I reported to you that we had stepped to the edge of the cliff. Then a while later I mentioned we had one foot over the cliff. Now I am here to say to you that even though we slid some way down the cliff and He has shown His anger, unfortunately we have not turned back.

Is feeding the beast working?

hyena

“A record 47.7 million Americans are now living in poverty according to the USDA. – Zero Hedge”

“Foodstamps Soar By Most In 16 Months: Over 1 Million Americans Enter Poverty In Last Two Months – Zero Hedge”

“Unemployment in the eurozone has hit a brand new all-time record high of 11.7 percent. The unemployment rate in Portugal is now up to 16.3 percent. A year ago it was just 13.7 percent. The unemployment rate in Greece is now up to 25.4 percent. A year ago it was 18.4 percent. The unemployment rate in Spain has hit a brand new all-time record high of 26.2 percent.”

“Youth unemployment levels in both Greece and Spain are rapidly approaching the 60 percent level.”

“Industrial production is collapsing at an accelerating rate, falling 7% year-on-year in Spain and Greece, 4.8% in Italy, and 2.1% in France.”

“The Greek economy has shrunk by more than 7 percent this year, and it is being projected that the Greek economy will contract by another 4.5 percent in 2013.”

Does it sound like feeding the beast with meat is working? As I wrote in that vision, the beast is only growing stronger and stronger.

Goats and sheep

As I wrote several times, this is the time for countries to choose, will they be goats or sheep? Stages of change towards countries seeking the Shepherd

And…

Goats and sheep – Goats rely on their own ability to scamper up rocky ledges away from predators. Sheep come to a Shepherd for protection from predators. The predators are coming… are you a sheep? Is your country a sheep? Will you come to the Shepherd Who can produce the results you have been witnessing on this blog?

and

And the miracle keeps on… but a warning

The most successful countries in the world in the years ahead will invest into building faith in Jesus Christ in schools, in families, in businesses and in government institutions. And Jesus Christ will move His hand over those nations and build them up. Such a country is called a “sheep” and they seek the good Shepherd.

Sadly some countries will pursue arrogance and dogged determination and refuse to embrace His church and refuse to embrace Jesus Christ… and they will not prosper. They can called “goats” because they live independently and refuse to come to the good Shepherd.

We are now in a place and time when other prophetic words He gave are imminently about to come true. We stand at a precipice. One foot is already over the edge.

Some will seek His help, but some will push forward in our own strength. I assure you will find that our strength and ingenuity is no match at all for what is hurtling towards.

Will we turn to Him and embrace His power, asking Him to heal us and restore us? I wait with baited breath. Will we turn? Who will turn? Who will turn first? Who will take a long time to turn? Who will never turn?

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