Revelation 1:7 Behold, He is coming with the clouds, and every eye will see Him, even those who pierced Him, and all tribes of the earth will wail on account of Him. Even so. Amen.
Joel 3:4 “Moreover, what are you to Me, O Tyre, Sidon and all the regions of Philistia? Are you rendering Me a recompense? But if you do recompense Me, swiftly and speedily I will return your recompense on your head.
The context of the verse above is God’s judgment against the nations. Today in the 21st century, Tyre and Sidon are still port cities on the Mediterranean Sea in modern day Lebanon. Sidon is north of Tyre. The two cities are located about 30 miles west of Mount Hermon, Israel. Their ultimate future appears to be bleak according to the prophet.
Tyre and Sidon, Lebanon
Lebanon declares Economic State of Emergency. Lebanon is just the tip of the iceberg.
The Sovereign Debt problem is upon us. The US Dollar broke 99 on it’s way to 103+. The US 10 Year Treasury broke below 1.45%. The absolute bottom has been 1.36%. A new record is coming.
Ezekiel 38:1-3 The word of the Lord came to me: “Son of man, set your face toward Gog, of the land of Magog, the chief prince of Meshech and Tubal, and prophesy against him and say, Thus says the Lord God: Behold, I am against you, O Gog, chief prince of Meshech and Tubal.
Ezekiel 38:6 Gomer and all his hordes; Beth-Togarmah from the uttermost parts of the north with all his hordes—many peoples are with you.
The brothers of Magog (Meshech, Gomer, and Tubal) appear to point to modern day Turkey.
For more evidence pointing to modern day Turkey, see the link below.
Michael Douville is a syndicated writer for the Wall St. Greek.
Capital is the Life Blood of Business. When Credit is readily available, expansion of existing facilities to increase production becomes possible. With new production, employment expands, a ripple effect and a virtuous spiral starts spreading throughout the Economy. Optimism and Hope prevails as the outlook for the future brightens! Hope and Optimism are being crushed in Turkey!
Monday August 27, 2018, Turkey’s 10 year Bond closed over 21%. These rates spell doom for the Turkey.
Commercial debt in Turkey is estimated as $330 Billion US Dollars; Us Dollars have become a very precious commodity. The Turkish Lira has been declining for several years, but the US Dollar index DXY seems to have stopped declining and bottomed at 88.5 in February of this year and has been flirting with 97 just 6 months later; a technical target of 103.8 has been suggested by several analysts. The strategy of borrowing in a declining currency and gambling that the decline will hold until time for repayment has backfired on all of the Emerging Market debtors; Turkey has also lost that bet! Not only has the Turkish Currency declined, economic conditions have deteriorated swiftly causing a lack of confidence which then results in a Credit Risk Premium for new debt.
The unfortunate reality is Corporate and Sovereign Debt is never retired, just Refinanced; this negative loop has driven rates higher, unsustainably higher. Monday August 27, 2018, Turkey’s 10 year Bond closed over 21%. These rates spell doom for the Turkey.
Business will certainly suffer as Credit becomes illusive. Employment will suffer and Optimism will die. Compounding the loss of credit is the Currency Inflation that will transform any imported Goods or Services such as Oil, electrical and machinery spare parts, medicine, iron and steel plastics, fertilizer, and many industrial components into extremely expensive items; the Turkish Lira has lost 40% this year alone. This currency inflation will affect the populace as the Currency Inflation devastates their buying power. If shoes and jeans, bread and butter, antibiotics and insulin become HYPER EXPENSIVE, expect civil unrest!
Turkey has the real possibility of defaulting on it’s debt! Planned, intentional? Probably not! It really does not matter. Turkey will look for new allies to extend crucial new credit such as Russia and China. New Business allies often become new military allies; overtures to other previously unthinkable Middle East nations such as Iran become thinkable. Turmoil may be on the Horizon.
Learn the lessons from Turkey! Debt eventually overwhelms everyone and everything! Inflation, even currency inflation, raises the price of real things. Therefore, invest in REAL things, get out of personal debt, use investment debt judiciously and preferably use a fixed rate. Review your reserves and stockpile things that might become difficult to buy if Turmoil comes to our shores! Maintain and extend cash levels to weather an extended storm!
Ezekiel 38:1-3 The word of the Lord came to me: “Son of man, set your face toward Gog, of the land of Magog, the chief prince of Meshech and Tubal, and prophesy against him and say, Thus says the Lord God: Behold, I am against you, O Gog, chief prince of Meshech and Tubal.
Ezekiel 38:6 Gomer and all his hordes; Beth-Togarmah from the uttermost parts of the north with all his hordes—many peoples are with you.
The brothers of Magog (Meshech, Gomer, and Tubal) appear to point to modern day Turkey.
For more evidence pointing to modern day Turkey, see the link below.
The strategically important nation of Turkey is in Trouble; big Trouble! Turkey has threatened to invade Greece, has threatened Cyprus and oil explorers Exxon Mobil, Eni, and France’s Total for exploring in the Mediterranean; going so far as to threaten to sink oil rigs and Hydrocarbon Survey ships before the US 6thFleet intervened.
Turkey has invaded Syria and attacked the Kurds in Iraq as recently as last June. The Government of Erdogan seems to be searching for an external enemy; a classic diversion from an Economic Decline that may be inevitable.
You do not talk nice enough and do not give us enough respect; you are so mean to us! We may not pay the money we owe you and it’s YOUR fault!
Turkey is in trouble economically as it’s currency, the Turkish Lira, plummets in value causing massive internal inflation as the prices of raw materials, energy, and of course food and gasoline skyrocket. A plummeting Lira means more than just higher and higher prices for the populace, it means more Lira are needed to pay back International Loans denominated in US Dollars. The Lira dropped almost 20% Friday August 10th; Turkey owes $240 Billion US Dollars.
The decline of the Turkish Lira makes repayment more and more difficult. The US Dollar exchange reached a high of 6.43 Lira to the dollar; a loss of 40% so far this year. Loan repayment has jumped 40% in just 8 months!!!! The Turkish Sovereign 10 year bond has hit a record of 20.67% from 11.5% in January.
Rising rates are a direct indicator of Market Risk. Mr. Market is stating Turkey will struggle to pay it’s Debt. These loans are never repaid, just rolled over; 20%+ is definitely a danger zone! Turkey has defaulted and not paid it’s debt 5 times in the last 100 years. A Turkish default will rock the Global Economy and hit the European Banks particularly hard. Italian Banks have been in the news recently and not in a good way; 20% are reported to be struggling with solvency. Deutsche Bank of Germany has recently closed offices and furloughed 10,000 employees; none can easily afford Sovereign Debt losses. These are Systemically Important Financial Institutions! A Turkish default or even the thought of a default should send shivers down your spine.
An authoritative ruler who has replaced the head of the Central Bank with his son-in-law, who is threatening neighboring nations, who is threatening the US, who has a crumbling domestic economy that is heavily debt ridden may be looking for an excuse to blame others and not repay those that have wronged him. You do not talk nice enough and do not give us enough respect; you are so mean to us! We may not pay the money we owe you and it’s YOUR fault! Pay attention! Everything is connected. Turmoil will cause the US Dollar to get stronger; maybe a lot stronger!
Ezekiel 38:13 Sheba and Dedan and the merchants of Tarshish with all its villages will say to you, ‘Have you come to capture spoil? Have you assembled your company to seize plunder, to carry away silver and gold, to take away cattle and goods, to capture great spoil?
Turkey’s economy is struggling for the reasons stated above. Sanctions against Iran are taking their toll on their economy. The Iranian currency continues to get pummeled against the US dollar. American economic sanctions against Russia are taking a bite out of their economy.
Ezekiel says Russia and its cohorts invade Israel for economic reason. Five times in Ezekiel 38:13, verbs of the verse indicate taking goods from Israel.
‘Have you come to capture spoil? Have you assembled your company to seize plunder, to carry away silver and gold, to take away cattle and goods, to capture great spoil?
With struggling economies of the modern day countries involved, Ezekiel’s prophecy is making more sense every day…
