Today we are seeing more of the same: All prophetic events moving right along as we would expect in these days. We have to see the news through the lens of biblical prophecy. We know that ultimately, the AC will seize control of the world's financial system and what better way than to step during the midst of a huge crisis and reshape the world's economy into a centralized system that involves implementation of the Mark of the Beast:
Did you know that financial institutions all over the world are warning that we could see a "mega default" on a very prominent high-yield investment product in China on January 31st? We are being told that this could lead to a cascading collapse of the shadow banking system in China which could potentially result in "sky-high interest rates" and "a precipitous plunge in credit". In other words, it could be a "Lehman Brothers moment" for Asia. And since the global financial system is more interconnected today than ever before, that would be very bad news for the United States as well.
Since Lehman Brothers collapsed in 2008, the level of private domestic credit in China has risen from $9 trillion to an astounding $23 trillion. That is an increase of $14 trillion in just a little bit more than 5 years. Much of that "hot money" has flowed into stocks, bonds and real estate in the United States. So what do you think is going to happen when that bubble collapses?
Over the past several years, the U.S. Federal Reserve, the European Central Bank, the Bank of Japan and the Bank of England have all been criticized for creating too much money. But the truth is that what has been happening in China surpasses all of their efforts combined. You can see an incredible chart which graphically illustrates this point right here. As the Telegraph pointed out a while back, the Chinese have essentially "replicated the entire U.S. commercial banking system" in just five years...
As with all other things in the financial world, what goes up must eventually come down.
And right now January 31st is shaping up to be a particularly important day for the Chinese financial system. The following is from a Reuters article...
The trust firm responsible for a troubled high-yield investment product sold through China's largest banks has warned investors they may not be repaid when the 3 billion-yuan ($496 million)product matures on Jan. 31, state media reported on Friday.
Investors are closely watching the case to see if it will shatter assumptions that the government and state-owned banks will always protect investors from losses on risky off-balance-sheet investment products sold through a murky shadow banking system.
If there is a major default on January 31st, the effects could ripple throughout the entire Chinese financial system very rapidly. A recent Forbes article explained why this is the case...
And of course China is not the only place in the world where financial trouble signs are erupting. Things in Europe just keep getting worse, and we have just learned that the largest bank in Germany just suffered " a surprise fourth-quarter loss"...
So will a default event in China on January 31st be the next "Lehman Brothers moment" or will it be something else?
In the end, it doesn't really matter. The truth is that what has been going on in the global financial system is completely and totally unsustainable, and it is inevitable that it is all going to come horribly crashing down at some point during the next few years.
It is just a matter of time.
Well, it looks like the US and China have found common ground in the financial markets at last. They both are lurching towards a mega default of one form or another. Mark your calendars… China’s potential mega default is January 31st.
Gordon Chang at Forbes wrote a piece that caught my eye this morning: Mega Default In China Scheduled For January 31. What he wrote conveys a parallel path between the US and China of printing money and the threat of looming defaults and skyrocketing interest rates. Both countries are propping up economies that are not being allowed to correct naturally, all but ensuring a catastrophic correction sooner, rather than later.
This loan comes due at the end of the month and they don’t have sufficient funds to pay the investors. The investors may not even be paid after a delay – their investment may simply disappear. If this occurs, it will set precedent in the financial markets and the world is watching. This would be the very first default of this magnitude to occur and it will rock the markets to their core.
But, just like the US, the Chinese may be their own worst enemy in the end. They will continue to prop up a bankrupt system and prevent corrections, until the system just fails. And it will fail spectacularly:
The amount of debt for the largest countries on the face of the earth is mind blowing and staggering. This will not end well and it is the common man who will suffer most.
So, while the propaganda and lies fly and our leaders all tell us that everything is hunky dory, you might want to actually take a hard look at the economies around the globe. Every one of them is in serious, serious trouble and when the defaults hit like falling dominoes, chaos, riots and hunger will rule the day. The US and China share eerily similar mega default risks… the difference being the Chinese don’t care and are ruthless. They will use everything they’ve got to come out on top when the bottom falls out.
It all sounds so good – indeed, “historic” to use another adjective bandied about by the mainstream press – until one scratches the surface. In reality, after stripping away all the hype, the interim agreement is full of loopholes big enough to drive both key portions of Iran’s nuclear program and its reviving economy through.
For example, the interim agreement leaves completely untouched Iran’s Parchin military research facility. The IAEA has raised concerns about clandestine nuclear weapon-related activities that may have gone on there, involving development and testing of a nuclear explosives device. Iran denies the claim, but at the same time has continued to refuse access to IAEA inspectors.
The interim agreement also preserves Iran’s alternative route to building a nuclear bomb – a heavy water production plant, which is designed to supply a heavy water reactor under construction nearby that could be used to produce plutonium for a nuclear bomb. Although IAEA inspectors have been permitted to visit the site in Arak, there does not appear to be anything in the interim agreement that would require Iran to stop the building of components for future installation in its heavy water facilities in Arak, much less dismantle what is already there. The only thing Iran has committed to do is to refrain from actually activating the heavy water reactor, which it is not ready to do anyway right now as construction of the reactor continues.
Iranian President Hassan Rouhani is a master of faux negotiations. He is playing the same game to stall for time that, as Iran’s chief nuclear negotiator in 2003, he used then to lull the Europeans into thinking Iran had agreed to a meaningful suspension of its nuclear activities. Instead, exploiting the illusion of suspension a decade ago, Iran’s government took significant steps in finalizing the heart of Iran’s nuclear program – uranium conversion, enrichment and installation of many more centrifuges. Rouhani bragged about his artifice years later during an interview on Iranian state television. In that interview, he asked a rhetorical question and then responded regarding how Iran’s enrichment technology capabilities significantly advanced during the supposed suspension: “We halted the nuclear program? We were the ones to complete it! We completed the technology.”
What Rouhani is now doing is right out of the same playbook. He is using the suspension of Iran’s uranium enrichment above 5 percent – a technology which Iran has long since fully mastered – as a cover behind which Iran completes the development of the technology necessary for successfully triggering a nuclear device. It is also moving ahead with the construction of all the components necessary for heavy water plant facilities useful for producing plutonium for a nuclear bomb.
Moreover, the Iranian regime can easily reverse course on uranium enrichment in a twinkling of an eye. Iran’s top nuclear negotiator, Abbas Araghchi, boasted last week in a television interview that “We can return again to 20 percent enrichment in less than one day and we can convert the [nuclear] material again. I can say definitively that the structure of our nuclear program will be exactly preserved. Nothing will be put aside, dismantled or halted. Everything will continue, enrichment will continue.”
This is no bluff. Olli Heinonen, former deputy director of the International Atomic Energy Agency, confirmed in a recent radio interview that Iran can re-connect the centrifuge links to enable resumption of 20 percent enrichment “in one day’s time.” Even more ominously, he warned that Iran has the technical capability to put the requisite number of linked centrifuges into operation, after which “it would take about two, three weeks to have enough uranium hexafluoride high-enriched for one single weapon.”
But in reality the so called moderate Iranian leader whose victory in the summer elections was argued by the administration as a -sign that Iran was changing for the better, did not have a problem with "breaking faith" with the U.S. Two days after the final agreement was signed President Hassan Rouhani asked a crowd in Iran "Do you know what the Geneva Agreement means? It means the surrender of the big powers before the great Iranian nation." He further stated that "The Geneva Agreement means the wall of sanctions has broken."
For the last two months, between the initial November agreement and the second deal its implementation, the Iranians have been very busy growing their nuclear program and getting it close to breakout capacity. It has reportedly introduced a new generation of centrifuges to its facilities in Natanz and Fordow, and is vigorously building its Arak heavy water facility. In addition, it has added 1000 pounds to its stockpile of uranium enriched to 5 percent and 66 pounds to its 20 percent , and the International Atomic Energy Agency inspectors were turned away when they tried to inspect a military base where the Iranians are suspected of experimenting with ways to weaponize their stockpile.
It seems the Iranians do not fear Obama. Recent Iranian actions and words underscore Iran's confidence that no matter what they will do and say Obama will not confront them militarily and will work hard to protect them against additional sanctions . They believe that the Geneva Agreement ended their economic isolation and that the process is irreversible. It was reported that Russia and Turkey are in the process of signing deals, worth billions, with Iran selling its oil for goods.
'Global Warming' Update
(who would have ever thought that the Sun might actually play a role in global climate?)
((if you are really smart you understand that "cooling is because of warming" and of course, 2+2=5))
Who can argue with a sudden outbreak of the “polar vortex” phenomenon; unprecedented winter drought in California; and summer temperatures so torrid Down Under that even play at the Australian Open was briefly halted?
Is any of this connected to the sun’s drastically diminished recent sunspot cycles?
“My opinion is that we are heading into a Maunder Minimum,” said Mark Giampapa, a solar physicist at the National Solar Observatory (NSO) in Tucson, Arizona. “I’m seeing a continuation in the decline of the sunspots’ mean magnetic field strengths and a weakening of the polar magnetic fields and subsurface flows.”
Yet during the 1645 — 1715 Maunder Minimum itself, sunspots basically disappeared and as documented in paintings from the era, Northern Europe suffered unusually cold winter temperatures.
“If we’re entering a Maunder Minimum, it will persist until the 2080s,” said Giampapa, who points out that if such a minimum’s primary effect is cooling, it could wreak havoc by curtailing agricultural growing seasons which, for instance, could lead to lower wheat production in breadbasket economies.