The Greater Depression will soon arive. The real story is here and it's not what you'll hear on most big media. By Alan Franklin.
28/08/2015

Have you seen how world stock markets are wildly gyrating? One day is a day of disaster, with the screens all flashing red and dealers sell, sell, sell! Then a nation like the USA or China pumps some more "liquidity" into the system and suddely blue skies are here again and all is well. The screens turn green. Unfortunately, it's not that simple. We are heading for the Greater Depression I have been predicting since 2006.

These are not normal times, in society, in stock markets, in politics and, most importantly, in the church. The day of reckoning is almost upon us and at its root is a spiritual malaise, as we spell out in our books: Goodbye America, Goodbye Britain, and Cults and Isms: True or False? which are available from our web shop on this site.

With major denominations appointing homosexual clergy, condoning same sex "marriage" and generally inviting the world into the church, how can our countries flourish? The rot always starts with the church. When the church at large ceases to preach the Gospel Truth you get the mess that we see all around us. This is compounded when most mainline denominations claim that the church has replaced Israel in God's plan, despite numerous scriptural assertions to the contrary.

If people no longer accept the Biblical definition of right or wrong you get corruption, in banking, politics and throughout our nations. The USA and the United Kingdom were once run on broadly Biblical lines, with clear notions of right and wrong. Once God was kicked out of the schools the rot set in and is now far too advanced to be reversed. Hence the headlong rush to judgment, which is fast approaching.

The world's trading and banking system is clearly heading for a brick wall, with calamity only being staved off by ever more desperate measures of money creation - the production of "funny money" out of thin air, based on and backed by nothing. Once the world ceases to trust currencies such as the Dollar, watch out. Only gold and silver will retain and increase value.

What's "Quantatitive Easing," as practiced by everyone from the Bank of England to Japan, the Federal Reserve to the European Central Bank?

Put simply, it is ramping up the money supply. If that worked in the long run we would all be as rich as Zimbabwe, where fifty billion Dollar bills float around rubbish tips as urchins search for things of real value, like old cans and bottles.

The world floats on a sea of credit. Most people buy on credit. With money they hope one day to have. Four out of five cars sold in the UK are bought on credit or leased. People don't own them. In America, even furniture is often leased. Hands up all those who actually own their home? You don't until the last debt installment is paid.

Multiply this many times over and you see nations, councils, states, companies and millions of indiividuals living in funny farm land, spending money they don't have. Can anyone seriously think this is sustainable?

The tremors of the money markets are harbingers of mega trouble to come. These are tumultuous times, unlike anything in previous world history. The reason is that the world was never so interlinked. A bad day in the far east stock markets is usually followed by a selldown in London, which sets the scene for Wall Street to panic. I watch it every day on business new programmes. Pat and I were once co/publishers of a business newspaper, among many other things, and I understand the money markets.

Beware. The stage is being set for the biggest crash in world history. Humpty will not be pached back together. Instead we are heading for a new world money system, a New World Order, a one world government and one world religion.

Over it all will rule the man who seems to have all the answers, the Man of Sin known as Antichrist. He's in the wings and coming soon as the world seeks a saviour from its dash to disaster.

How do I know? Easy. It's all in the Bible, the only book that tells you both the end and beginning of world history, from Genesis to Revelation.

Want to know more? Much is in our books and DVDs. I will also speak to any church which invites me. Time is short. Get informed! Contact me at alan@thefreepressonline.co.uk

 

 

ALAN writes: There's a strange listlessness about the world, as governments and commentators vainly try and convince people that "the recovery is on track." Ordinary folk know differently as they either lose their jobs, fail to find new ones or just battle to pay the bills. The day of reckoning is upon us and at its root is a spiritual malaise, as we spell out in our books: Goodbye America, Goodbye Britain, and Cults and Isms: True or False. With the Church of England about to follow America in appointing a homosexual Bishop, how can our countries flourish? The rot always starts with the church.

 

 

 

With the US trapped in depression, this really is starting to feel like 1932

The US workforce shrank by 652,000 in June, one of the sharpest contractions ever. The rate of hourly earnings fell 0.1pc. Wages are flirting with deflation.

People queue for a job fair in New York
People queue for a job fair in New York. The share of the US working-age population with jobs in June fell from 58.7pc to 58.5pc. The ratio was 63pc three years ago. Photo: EPA

"The economy is still in the gravitational pull of the Great Recession," said Robert Reich, former US labour secretary. "All the booster rockets for getting us beyond it are failing."

 

Ambrose Evans-Pritchard: Comment

 

"Home sales are down. Retail sales are down. Factory orders in May suffered their biggest tumble since March of last year. So what are we doing about it? Less than nothing," he said.

California is tightening faster than Greece. State workers have seen a 14pc fall in earnings this year due to forced furloughs. Governor Arnold Schwarzenegger is cutting pay for 200,000 state workers to the minimum wage of $7.25 an hour to cover his $19bn (£15bn) deficit.

Can Illinois be far behind? The state has a deficit of $12bn and is $5bn in arrears to schools, nursing homes, child care centres, and prisons. "It is getting worse every single day," said state comptroller Daniel Hynes. "We are not paying bills for absolutely essential services. That is obscene."

Roughly a million Americans have dropped out of the jobs market altogether over the past two months. That is the only reason why the headline unemployment rate is not exploding to a post-war high.

Let us be honest. The US is still trapped in depression a full 18 months into zero interest rates, quantitative easing (QE), and fiscal stimulus that has pushed the budget deficit above 10pc of GDP.

The share of the US working-age population with jobs in June actually fell from 58.7pc to 58.5pc. This is the real stress indicator. The ratio was 63pc three years ago. Eight million jobs have been lost.

The average time needed to find a job has risen to a record 35.2 weeks. Nothing like this has been seen before in the post-war era. Jeff Weniger, of Harris Private Bank, said this compares with a peak of 21.2 weeks in the Volcker recession of the early 1980s.

"Legions of individuals have been left with stale skills, and little prospect of finding meaningful work, and benefits that are being exhausted. By our math the crop of people who are unemployed but not receiving a check amounts to 9.2m."

Republicans on Capitol Hill are filibustering a bill to extend the dole for up to 1.2m jobless facing an imminent cut-off. Dean Heller from Vermont called them "hobos". This really is starting to feel like 1932.

Washington's fiscal stimulus is draining away. It peaked in the first quarter, yet even then the economy eked out a growth rate of just 2.7pc. This compares with 5.1pc, 9.3pc, 8.1pc and 8.5pc in the four quarters coming off recession in the early 1980s.

The housing market is already crumbling as government props are pulled away. The expiry of homebuyers' tax credit led to a 30pc fall in the number of buyers signing contracts in May. "It is cataclysmic," said David Bloom from HSBC.

Federal tax rises are automatically baked into the pie. The Congressional Budget Office said fiscal policy will swing from
a net +2pc of GDP to -2pc by late 2011. The states and counties may have to cut as much as $180bn.

Investors are starting to chew over the awful possibility that America's recovery will stall just as Asia hits the buffers. China's manufacturing index has been falling since January, with a downward lurch in June to 50.4, just above the break-even line of 50. Momentum seems to be flagging everywhere, whether in Australian building permits, Turkish exports, or Japanese industrial output.

On Friday, Jacques Cailloux from RBS put out a "double-dip alert" for Europe. "The risk is rising fast. Absent an effect policy intervention to tackle the debt crisis on the periphery over coming months, the European economy will double dip in 2011," he said.

It is obvious what that policy should be for Europe, America, and Japan. If budgets are to shrink in an orderly fashion over several years – as they must, to avoid sovereign debt spirals – then central banks will have to cushion the blow keeping monetary policy ultra-loose for as long it takes.

The Fed is already eyeing the printing press again. "It's appropriate to think about what we would do under a deflationary scenario," said Dennis Lockhart for the Atlanta Fed. His colleague Kevin Warsh said the pros and cons of purchasing more bonds should be subject to "strict scrutiny", a comment I took as confirmation that the Fed Board is arguing internally about QE2.

Perhaps naively, I still think central banks have the tools to head off disaster. The question is whether they will do so fast enough, or even whether they wish to resist the chorus of 1930s liquidation taking charge of the debate. Last week the Bank for International Settlements called for combined fiscal and monetary tightening, lending its great authority to the forces of debt-deflation and mass unemployment. If even the BIS has lost the plot, God help us.


 
 
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'And I saw the holy city, new Jerusalem, coming down out of heaven from God, made ready as a bride adorned for her husband.'
Revelation 21:2

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