Dow drops: Is the Fed out of ammunition?

Trading floor of the New York Stock Exchange

USA Today reports the ‘market calm’ was shattered today:

September 9, 2016

The market calm on Wall Street was shattered Friday as stocks suffered their biggest slide since Brexit on fears an interest rate hike is around the corner.

The return of volatility was sparked by comments from Federal Reserve Bank of Boston president Eric Rosengren that suggests a September rate hike might not be totally off the table. The so-called “hawkish” commentary follows the European Central Bank decision this week to keep rates at current levels — a disappointment to investors who thought additional stimulus was needed to get the eurozone economy moving again.

At the market close, the Dow Jones industrial average was down 394.46 points at 18,085.45 — its worst one-day drop since the 610-point slide on June 24 after the United Kingdom voted to leave the European Union — as investors fretted over the prospect of getting less support from the world’s central banks.

The broad Standard & Poor’s 500 index closed down 2.5%, ending a 52-trading day streak of not closing down 1% or more. The Nasdaq composite, which had its stretch of record closes snapped Thursday, fell 2.5%.

In a speech earlier Friday, Rosengren’s said: “My personal view, based on data that we have received to date, is that a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy.”

Those words rattled investors who had pretty much written off a interest rate increase at the Fed’s Sept. 20-21 meeting following the weaker-than-expected August jobs report. Although Rosengren did not specifically mention September, his words leave the door open to a rate hike sooner than many investors expected. Low rates have been a key driver of higher stock prices. http://www.usatoday.com/story/money/markets/2016/09/09/stocks-dow-friday/90114650/

Of course, often markets often rise as well. As I wrote late last year, it was likely we would have financial volatility in 2016 (see M&M: Expect financial volatility in 2016). And now we again are seeing it.

As far as ‘calm’ goes, the Bible warns that people should not think that things will continue to go on as they have:

1 Beloved, I now write to you this second epistle (in both of which I stir up your pure minds by way of reminder), 2 that you may be mindful of the words which were spoken before by the holy prophets, and of the commandment of us, the apostles of the Lord and Savior, 3 knowing this first: that scoffers will come in the last days, walking according to their own lusts, 4 and saying, “Where is the promise of His coming? For since the fathers fell asleep, all things continue as they were from the beginning of creation.” 5 For this they willfully forget: that by the word of God the heavens were of old, and the earth standing out of water and in the water, 6 by which the world that then existed perished, being flooded with water. 7 But the heavens and the earth which are now preserved by the same word, are reserved for fire until the day of judgment and perdition of ungodly men.

8 But, beloved, do not forget this one thing, that with the Lord one day is as a thousand years, and a thousand years as one day. 9 The Lord is not slack concerning His promise, as some count slackness, but is longsuffering toward us, not willing that any should perish but that all should come to repentance.

10 But the day of the Lord will come as a thief in the night, in which the heavens will pass away with a great noise, and the elements will melt with fervent heat; both the earth and the works that are in it will be burned up. 11 Therefore, since all these things will be dissolved, what manner of persons ought you to be in holy conduct and godliness, 12 looking for and hastening the coming of the day of God, because of which the heavens will be dissolved, being on fire, and the elements will melt with fervent heat? 13 Nevertheless we, according to His promise, look for new heavens and a new earth in which righteousness dwells.

Therefore, beloved, looking forward to these things, be diligent to be found by Him in peace, without spot and blameless; (2 Peter 3:1-14)

Jesus also warned about those who apparently did not believe things would get bad (cf. Matthew 24:36-44) as well as Christians who thought they did not need to change their lives (Revelation 3:14-19).

What should seem bizarre to most people about today’s stock market drop is that the stock market is believed to have happened because many investors are concerned that the US Federal Reserve thinks that monetary policy should be normalized. Normalized is a disaster?

The reality, as many are aware, is that the financial markets have NOT been normal, but have been manipulated by the US Federal Reserve and other government-related entities.

If it were NOT for the Federal Reserve counterfeiting money (in programs like ‘quantitative easing) where it basically ‘creates’ money and then gets US Treasury pledges created, etc. the US stock market would have a much lower valuation.

Basically, because of manipulation of financial markets, many have invested in the stock market since banks, for example, are paying almost nothing in the way of interest (some banks in Europe charge ‘negative interest,’ which gets people to invest in almost anything since why put funds in a bank that will be reduced by the time you take them out).

What the US Federal Reserve, US government, and other entities have done in creating ‘money’ to keep interest rates down is wrong.

This diluting of the value of coinage/currency is condemned in the Bible, when it uses the old term ‘dross’ (money that has been debased):

4 Take away the dross from silver (Proverbs 25:4a).

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

18 “Son of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: ‘Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.’” (Ezekiel 22:18-22)

Although the Bible warns against using dross and diluting the money supply, modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA.

This is NOT only happening in the USA:

September 9, 2016

Deranged Lunatics Have Taken Over the World

Is the Fed out of ammunition?

That’s the legitimate fear when the next crisis rolls in.

Basically, the answer is a resounding yes.

There’s no magic bullet in the Fed’s six-shooter that will fix their ineptitude when the next meltdown arrives.

The problem is that Yellen and Co. don’t believe that analysis. Neither do the inept academics running the other major central banks. They’re all too “smart.”

You see, they’re already planning the next great monetary experiment for the next rescue. And it just may blow the global economy to smithereens.

Stop the Insanity!

To get a sense of how unhinged and reckless central banking has become, consider what the Bank of Japan (BoJ) has launched …

After two decades of sluggish growth, the BoJ started its monetary manipulation bender by introducing zero interest rate policy (ZIRP) in 1999 — supposedly to fight deflation and promote economic growth.

It didn’t work. So while keeping ZIRP in place, they continued Dr. Frankensteining the Japanese economy…

How? The BOJ “invented” quantitative easing (QE) programs in 2001, through purchases of government bonds, asset-backed securities and commercial paper. …

And numerous Fed members, including Chair Janet Yellen, have admitted that negative interest rates are on the table, ready for deployment.

But that’s just the beginning of “fun with your money”…

On Wednesday, I told you about the little-known mathematical formula tucked away in a footnote of Yellen’s recent Jackson Hole speech.

Many believe this “magic formula” is what the Fed will eventually use to automatically determine future interest rates. And, of course, Yellen cited the formula lovingly in the small print.

Here’s why that should scare the hell out of you…

If the Fed had been following this formula during the last meltdown, they would have dropped rates to -9%. That’s -9%!

Consider that negative rates of just -0.4% in Europe are destroying the big banks and causing the Swiss and Germans to make a run on safes to hoard their cash.

Just imagine what –9% rates will do. That’s the level of psychopathy we’re dealing with here. http://dailyreckoning.com/janet-yellen-fed-experiment/

Many ordinary investors, as well as institutional ones, are getting hurt by improperly low interest rates. Negative interest rates will hurt even more. Those hurt also include those who are not investors as well.

There are more things that the Federal Reserve can do, but much of its ‘ammunition’ is more dangerous than most think (cf. Habakkuk 2:6-8).

Notice something that Jesus prophesied:

7 But when you hear of wars and rumors of wars, do not be troubled; for such things must happen, but the end is not yet. 8 For nation will rise against nation, and kingdom against kingdom. And there will be earthquakes in various places, and there will be famines and troubles. These are the beginnings of sorrows. (Mark 13:7-8)

We are having ‘troubles’ and the financial markets are being set up for even more severe troubles in the future. We are seeing happenings of the ‘beginning of sorrows.’

But many do not see it.

Some items of possibly related interest may include:

Collapse of the Euro and Dollar? War in 2020?. Larry Edelson of Money and Markets described aspects of current economic difficulties and explained why he felt matters would get a lot worse. He said war, like World War III, could break out as early as 2020. What did he call the ‘granddaddy of all cycles”? Will matters go as he said? What does the Bible teach? Dr. Thiel provides biblical insights that secular sources often miss. This is a video.
Project Prophecy: Economic Collapse Starting in 2015? Jim Rickards once worked for the CIA and also was once part of a a USA government program called called ‘Project Prophecy.’ He has a video were he claims that starting in 2015, the USA may have economic collapse resulting in a 25-Year Great Depression. He mainly cites debt figures and claims advises alternatives to the USA dollar which he says will collapse? What did Rand Paul state? Can the USA dollar collapse?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled: Can You Prove that the Beast to Come is European?
European Technology and the Beast of Revelation Will the coming European Beast power would use and develop technology that will result in the taking over of the USA and its Anglo-Saxon allies? Is this possible? What does the Bible teach? Here is a related YouTube video: Military Technology and the Beast of Revelation.
When Will the Great Tribulation Begin? 2016, 2017, or 2018? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede comenzar la Gran Tribulación en 2016 o 2017? ¿Es el Tiempo de los Gentiles? You can also see the English language sermon video: The Great Tribulation from the Mount of Olives. A shorter video is: Can the Great Tribulation Start in 2016?
Must the Ten Kings of Revelation 17:12 Rule over Ten Currently Existing Nations? Some claim that these passages refer to a gathering of 10 currently existing nations together, while one group teaches that this is referring to 11 nations getting together. Is that what Revelation 17:12-13 refers to? The ramifications of misunderstanding this are enormous. A related sermon is titled Ten Kings of Revelation and the Great Tribulation.
World War III: Steps in Progress Are there surprising actions going on now that are leading to WWIII? Might a nuclear attack be expected? What about WWIV? Does the Bible promise protection to all or only some Christians? How can you be part of those that will be protected? A related video would be Is World War III About to Begin? Can You Escape?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2021 or 20xx? There is also a video titled The 6000 Year Plan: Is the end of humanity’s reign almost up?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be Barack Obama and the State of the Apocalypse.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
When You Sin: Do You Really Repent? This is an article by Charles F. Hunting. A related sermon is Confess to God and truly repent.
The Gospel of the Kingdom of God This free online pdf booklet has answers many questions people have about the Gospel of the Kingdom of God and explains why it is the solution to the issues the world is facing.
The Gospel of the Kingdom of God was the Emphasis of Jesus and the Early Church Did you know that? Do you even know what the gospel of the kingdom is all about? True religion should be based upon the true gospel.
Did The Early Church Teach Millenarianism? Was the millennium (sometimes called chiliasm) taught by early Christians? Who condemned it? Will Jesus literally reign for 1000 years on the earth? Is this time near? A related sermon is titled The Millennium.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.
Hillary Clinton, Prophecy, and the Destruction of the United States This is a 200 page book for people truly interested in prophecies related to Hillary Clinton and the United States, including learning about many that have already been fulfilled and those that will be fulfilled in the future. It also discusses Republicans. The physical book can be purchased at Amazon from the following link: Hillary Clinton, Prophecy, and the Destruction of the United States, 2nd edition: Is Hillary Clinton Fulfilling Biblical, Islamic Catholic, Hopi, and other America-Related Prophecies? What About Donald Trump? $11.99.
Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon 2nd Kindle edition This electronic version of the 200 page print edition is available for only US$3.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon 2nd Kindle edition.
British are the Covenant People What do ‘British’ and ‘Britain’ mean in Hebrew? Are the descendants of the Anglo-Saxons people of the covenant? Does the British royal family connect to the throne of David? What does the Bible teach? What does history show us? Is there any DNA evidence related to British-Israelism? When did Christianity make it to the British Isles? Could Jeremiah have made it to the British Isles? What type of Christians made it to the British Isles? Did the last King of England believe in British Israelism? This is a video.
Post Brexit Prophecy On June 23, 2016, the voters of the United Kingdom of Great Britain and Northern Ireland (UK) chose to leave the European Union. Now with this BRitish EXIT (Brexit) vote, what is prophesied to happen to the UK? Will the UK do well or be taken over and made slaves? Dr. Thiel explains from biblical prophecies what is ahead for the UK, Europe, and even the USA, Canada, Australia, and New Zealand. This is a video.