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Are YOU Ready For Abject Poverty?

debtWe have all seen those poor self-deluded souls who leave their post unopened for months because they know it contains demands for money that they don’t have.
We try to be sympathetic, but really, didn’t they do it to themselves?  We think: if they can’t afford to pay for the TV, then they shouldn’t have bought it in the first place.  We say that it is utter stupidity to ignore the debts piling up; that just makes matters worse!

But wait!  Thanks to successive governments, you and every member of your family, and everyone in your street, town and country is currently in debt to the tune of approximately £78,000 When are you planning to pay back yours?  Wouldn’t it be the pinnacle of self-delusion to think that you can ignore it and just keep on borrowing?  Well that’s exactly what the government is doing, day in, day out!

In 1929 financial markets around the world crashed. As a result millions lost their jobs, the value of their savings plummeted, people starved and a second world war followed.  Do you think it couldn’t happen again?  Well no it couldn’t.  In those days trade was nothing like as connected as it is now, financial interdependence was in its infancy, and debt was, by today’s standards, infinitesimal.  No, the next global depression, and the war the results from it, will be quite different from 1929 and much, much worse.  The consequences of the next financial crash will be far more serious than anything modern humanity has experienced – and it is months away.

The Titanic Can’t Sink – Right?

Before you sigh and determine not to read another outpouring of gloom and doom and go off to book next summer’s holiday, just ask yourself what plans you have made to protect your family.  Consider how you will feel when you cannot offer them a meal, when the lights are out and the central heating is off.  If you think that is just scaremongering, consider what these financial experts have said.  Their comments were reported almost exclusively during the past two months.

Jim RickardsEditor of Strategic Intelligence. He is an American lawyer, economist, and investment banker with 35 years of experience working in capital markets on Wall Street.A Three-Way Train Wreck Is About to Derail the Markets
Nomi PrinsFormerly managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank.You Should Fear the Emerging Market Debt Bubble
Peter SchiffAmerican stock broker, financial commentator and CEO and chief global strategist of Euro Pacific Capital Inc.The Dollar Will Crash And Burn Because Of The Trade War With China
Rob KirbyTrader, broker and authorOur way of life is in jeopardy and I fear for my daughter's [and everyone else's kids for that matter] future.
Bill HolterWorked as a retail stockbroker for 23 years, including 12 as a branch manager at A.G. Edwards.Ten years after the global financial crisis of 2008, the entire world is one giant banana republic. 
Jim RogersBusinessman, investor, financial commentator and author. Chairman of Rogers Holdings and Beeland Interests, Inc. Co-founder of the Quantum Fund Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak.
Epic EconomistFinancial commentatorOne wrong move and the whole thing could blow sky high. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen. 
Bill GrossRevered Fund Manager at Janus Henderson. Once known as, "the Bond King"Our highly levered financial system is like a truckload of nitroglycerin on a bumpy road.
Marko KolanovicQuantitative analyst at JP Morgan(Warns investors of:) Sudden, severe stock sell-offs sparked by lightning-fast machines. Unprecedented actions by central banks to shore up asset prices. Social unrest not seen in the U.S. in half a century.

Global debt now exceeds $250,000,000,000,000.  In the tired old phrase, it isn’t a question of if, but when.  For some, no amount of warnings will ever suffice.  Only when their world has collapsed will they take heed: and then only to whine and blame and wallow in self-pity.


What Does Our Debt-Ridden Future Hold?

abject povertyConsider this scenario.  The markets begin to fail as the economists are now warning.  Companies start to lay off workers to reduce costs.  Prices start to rise.  People begin to withdraw savings to replace their salaries.  Banks raise interest rates to stem the outflow of money, support the currency and kerb inflation.  Companies and individuals can’t pay the increased interest rates and go bankrupt.  Governments borrow more to pay the massively increasing welfare bill but that drives interest rates higher still.  In a hurricane of savings withdrawals, banks fail one after another, making the Northern Rock failure look like a gust of wind – and this time governments  have no money to support them.  Next, the supply chain collapses and shelves empty, as panic and social unrest ensues.  The army is called in to keep order until the government are unable to pay them and the soldiers use their weapons to protect themselves and get food.

Far-fetched?  If this scenario is absurd with $250 trillion debt, when does it become inevitable, $500 trillion?  A trillion trillion?  Common sense dictates that we cannot go on borrowing forever.  Since you started reading this article UK debt has increased by around £500,000.  This year the average worker will pay £1600 of their tax just to make the interest payments.

The fact is, the house of cards has already started to fall.  Argentina has raised interest rates to 65% in an attempt to protect its currency whilst Turkey has a 24.5% inflation rate and interest rates at 24%.  In Venezuela people starve so that the government can stave off loan defaults.  The picture is repeated in country after country.  All this without even considering the effect of a Brexit shock.

Neither is the economy the world’s only problem: a storm gathers.  While we may be minded to ignore the economists’ clear warnings of what is to come, we would be foolish to ignore God’s.

Now therefore thus saith the Lord of hosts; Consider your ways. Ye have sown much, and bring in little; ye eat, but ye have not enough; ye drink, but ye are not filled with drink; ye clothe you, but there is none warm; and he that earneth wages earneth wages to put it into a bag with holes.
Haggai 1:5-6

The Bible warns of shortages and inflation in the final days.  A penny was around a day’s wages.

And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
Revelation 6:5-6

When God warned the Egyptian Pharaoh of famine to come, Joseph took action.  We should learn from his example.

And let them gather all the food of those good years that come, and lay up corn under the hand of Pharaoh, and let them keep food in the cities. And that food shall be for store to the land against the seven years of famine, which shall be in the land of Egypt; that the land perish not through the famine.
Genesis 41:35-36

Time is running out!

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