Archive for money

The Catalyst for A Global Default

Posted in Michael Douville, Trend Update with tags , , , , , , on November 26, 2018 by paulthepoke

Proverbs 22:7 The rich rules over the poor, and the borrower is the slave of the lender.

world under water

https://michaeldouville.com/

Spend, Spend, and Spend some more; we borrowed some and we can borrow more!  Since the Great Financial Crisis, virtually every Nation, State, County,  Province, Region, City, Town, Village, and two buildings near each other on the same road have gorged on Borrowed Money.  The Central Banks of the World opened the Debt Spigot and flooded the Globe with Liquidity.  It is oh so much fun when the spending is free. Everyone loves a “Big Spender”! Now the Credit Splurge is over and reality is setting in.  Much of the Debt was squandered by bureaucrats that had no economic sense; spending on projects for local constituents that benefited political support groups to consolidate and retain power. Sometimes just outright Fraud and Graft.  Some Debt was used to build Schools, Roads,  and power Infrastructure, but too much was misspent and mal-invested by the totally incompetent but politically connected technocrats in the Corporate and Government worlds.

Larger than all the stock markets of the World, the Debt Implosion will cause massive Disruptions and Turmoil.  Those that prepare will have enormous opportunities as assets are sold at discounted prices to satisfy loans.

Those middle managers that 10 years ago were still in School and have never experienced any Business Environment other than an expanding Credit Bubble will be bewildered as a Global Slowdown unfolds. No one told them that Loans will come due and need to be paid. No one told them Interest Rates can rise and rise quickly, No one told them that Debt cannot always be “Rolled Over’!  No one told them Business Cycles end! No one told them, therefore, it is not their FAULT!

Politicians and Corporate insiders will not accept the blame as the Debt Time Bombs start to threaten.  The Budgets that are trimmed and the Programs that are reduced or curtailed will become someone else’s fault particularly as Civil unrest starts, as local housing, medical, or food benefits are reduced or worse yet, eliminated! It will be someone else’s fault; either a Foreign enemy or a domestic Ethnic or Religious group will be blamed for mishandling the Economy.  Border skirmishes or outright conflict may result as Governments look to deflect and distract. Enemies do not deserve to be repaid!

Goldman Sachs has been embroiled in Corruption across the World and has been accused of creating complicated Financing for Nations such as Malaysia and Greece that provided funds to desperate politicians at very expensive prices,  good for the immediate term, but not so good when the Debt needs to be repaid.  Abu Dhabi filed suit in New York November 21, 2018 accusing Goldman Sachs of Bribery and Money Laundering.  Sovereign and Corporate Debt is at Risk of Default from Rising Interest Rates and Market Forces; now Sovereign and Corporate Debt is at Risk of Default due to alleged Fraudulent practices. Obviously, if the Money was Fraudulently lent, no one would expect to be paid back, would they?

The Bond Market will experience huge defaults and Global Deflation as Trillions of dollars come due; the Debt is not sustainable. Larger than all the stock markets of the World, the Debt Implosion will cause massive Disruptions and Turmoil.  Those that prepare will have enormous opportunities as assets are sold at discounted prices to satisfy loans. Essential Cash Flow from Bonds can be replaced often by even larger Income Streams from conservative Rental Real Estate in the great growth markets of the US with much less Risk. A discussion with a Financial Adviser may be Timely and Prudent.

https://michaeldouville.com/

 

The Rising US Dollar, Michael Douville

Posted in Michael Douville with tags , , , , , , on July 7, 2018 by paulthepoke

1 Samuel 2:7 The LORD makes poor and rich; He brings low, He also exalts.

Proverbs 3:13-16 How blessed is the man who finds wisdom and the man who gains understanding. For her profit is better than the profit of silver and her gain better than fine gold. She is more precious than jewels; and nothing you desire compares with her. Long life is in her right hand; in her left hand are riches and honor.

Michael

The US enjoys the Global Reserve Currency status. Virtually all of the major business transactions throughout the world are priced in Dollars. Sovereign Wealth Funds, Pension Funds, Insurance Funds, Corporate funds need to “Park” billions and billions of transactional cash! The ONLY currency liquid and vast enough is the US Dollar! Not Lire, Not Yuan, Not Euro, not the Yen, only the US Dollar. It is stable, safe, liquid and accepted around the World. International pricing expresses the transactional cost in US Dollars of oil, copper, grain, lead, tallow, butter, milk,  beef, etc. along with virtually all International agreements. The dollar does fluctuate, but pegging to the US Dollar standardizes Global transactions.

A weak US Dollar is good for the Global Economic community. The US Dollar was 102.21  October 1, 2016, just prior to the Presidential Elections. The World experienced “A cyclic upturn in a structural downturn” exactly as ECRI (Economic Cycle Research Institute) forecasted.  The Dollar then declined to 88.25 in February 2018; which may have been a cyclic bottom.  A weaker dollar is good for Emerging Market Economies. Raw Material sales translate into more local currency which then can buy more local and regional  goods and services. Local inflation is reduced.  During the past decade, Sovereigns around the World have gorged on cheap loans priced well below 1%, some even negative. With a declining US Dollar, not only are the loans Historically cheap, a 20% decline in currency exchange equates to repaying only $80 million of the $100 million borrowed plus receiving a higher price for exports usually oil, copper, aluminum, etc.

money
photo: MarketWatch

Like all things, the US Dollar cycles. It does not remain cheap forever. Timing becomes important. The US Dollar has risen and risen very fast from a possible low of 88 just a few months ago to a recent high of 96. This cycle of peaks and valleys is not a new phenomena; this cycle repeats historically. What is new is the record DEBT pervasive throughout the World. Debtors have enjoyed the discount of a declining US Dollar; that is now gone. Interest rates at or near zero are gone in the US and scheduled to be gone soon everywhere else. Obscene amounts of DEBT have propelled the good fortunes of virtually everyone from Credit Cards and HELOCs for citizens to massive Public and Sovereign debt in EVERY Village, Hamlet, Town, City, Municipality, County, State and Nation on the face of the PLANET!!

 

A strong Dollar will reduce the value of exports thereby slowing the economy in exporting Nations. A negative spiral’s outcome is a slowing of all global economies. This then results  in declining demand that ripples throughout the World. That is bad enough; add in rapidly rising rates and there lies a recipe for Catastrophe! The obscene debt is rarely paid off, rarely even reduced. The debt is rolled over or refinanced. A rise to only 2% equates to multiples of 10 to 20 times the debt service. There is going to be  a very rude awakening very soon!

Debt will default and these defaults will accelerate throughout the world pressuring rates even higher as nonpayment risk pressures returns. Bonds and Bond Funds will be at HUGE RISK. All manners of Debt will be affected. Rates will rise and rise quicker than anyone anticipates. Get out of Debt! Payoff Credit Cards, Helocs, anything that floats with an Index. Refinance into fixed rate LONG TERM debt.  Raise cash!  The dollar cycle peak is forecast to reach 103.8 as a typical permutation in a typical cycle.  This may not be TYPICAL! Turmoil could drive the US Dollar to 120 causing massive disruptions!  For those aware, for those prepared, Generational Wealth can be achieved when the cycle again turns down……

https://michaeldouville.com

 

Trend Update: Trouble Brewing on the Arabian Peninsula, November 2017

Posted in Persia/Elam/Iran, Prophecy, Saudi Arabia/Sheba/Dedan, Trend Update with tags , , , , , , , , , , , , , , , , , , , on November 11, 2017 by paulthepoke

Isaiah 21:13-15 The oracle concerning Arabia. In the thickets in Arabia you will lodge, O caravans of Dedanites. To the thirsty bring water; meet the fugitive with bread, O inhabitants of the land of Tema. For they have fled from the swords, from the drawn sword, from the bent bow, and from the press of battle.

Jeremiah 49:28a Concerning Kedar

The prophets Isaiah and Jeremiah define “Arabia” or modern day Saudi Arabia. This is the Hebrew word Arab. It means a desert plateau, a country east of Israel (Strong’s Concordance).

The following peoples and their descendants make up Arabia per the prophets: Dedan, Tema, and Kedar.

November 11, 2017: Tension is building on the Arabian Peninsula. At the core of the issue is conflict between Iran (Shia Muslims) and Saudi Arabia (Sunni Muslims). The Saudis and their allies have concerns about a nuclear Iran.

The Houthi Shia rebels in Yemen are supported by Iran. Earlier in the week, a missile was fired from Yemen that targeted Riyadh’s (Saudi Arabia) commercial International Airport. The missile was intercepted by the Saudi’s. There were no injuries or damage reported. The Saudi’s have stated Iran has committed an act of war.

Riyadh Airport

French President Emmanuel Macron is on the record blaming the Iranians. “The missile which was intercepted by Saudi Arabia launched from Yemen, which obviously is an Iranian missile, shows precisely the strength of their program.” -Emmanuel Macron

https://www.rferl.org/a/french-president-macron-blames-iran-yemeni-huthi-rebel-missile-launch-riyadh-calls-for-negotiations-ballistic-missile-development/28845939.html

United States Air Force sources are also confirming Iranian involvement in the missile launch from Yemen to Riyadh.

cedar of Lebanon

Cedar of Lebanon

With the announcement of the resignation, Hezbollah’s (Shia Muslim) leader Hassan Nasrallah accused Saudi Arabia of declaring war on Lebanon. “In short, it is clear that Saudi Arabia and Saudi officials have declared war on Lebanon and on Hezbollah in Lebanon, but I have to say this is a war on Lebanon.”

The concern is Lebanon erupting into a civil war like Yemen with Saudi and Iranian proxies. The Saudis have ordered all citizens to leave Lebanon. Saudi money is leaving Lebanon banks by the billions.

http://www.bbc.com/news/world-middle-east-41946310

 

This week, Saudi Crown Prince Mohammed Bin Salman (MBS) has been arresting over 200 officials in the name of “corruption”. The 32 year old MBS is the future king of Saudi Arabia. At least 11 family members were corralled. Around 38 government ministers were detained. Military, religious, and business leaders have been arrested as well.

http://time.com/5018012/saudi-purge-mohammed-bin-salman/

saudi-gold-cars2

Money is moving out of Saudi Arabia by the hundreds of billions. Money is moving around the Middle East by the hundreds of billions. The rich and wealthy are freaking out in fear of having their assets seized. The Saudi government is having budget problems. Follow the money.

http://www.gulf-times.com/story/570740/Saudi-billionaires-said-to-move-funds-from-region-

https://www.globalresearch.ca/real-motive-behind-saudi-purge-emerges-800-billion-in-confiscated-assets/5617466

 

Scripture is very clear. In the final analysis, the Saudis are going to get pummeled. Isaiah bears witness and confirms their fate.

Isaiah 21:16-17 For thus the Lord said to me, “Within a year, according to the years of a hired worker, all the glory of Kedar will come to an end. And the remainder of the archers of the mighty men of the sons of Kedar will be few, for the LORD, the God of Israel, has spoken.”

 

Buy at Amazon.com in paperback or Kindle below. Click on “Preview” for a free sample of the book.

Rapture compressed

https://www.smashwords.com/books/view/731160

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PaulthePoke

Prophecy Watch & Bible Study

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