By Scott Huckaby
One doesn’t have to be an economist to see that all is not well with the economy. The U.S. national debt is so high that no one believes it will ever be paid off and stock markets are volatile world-wide. The only thing keeping our debt from triggering a melt-down is that most other nations in the world are just as bad or worse in their GDP-to-debt ratios.
Government spending and increasing the money supply which is called “quantitative easing” are seen as the solution to bring us out of the worldwide recession that began in 2008. This has not been working despite the mainstream media narrative that all is well. No amount of statistical gymnastics can hide the fact that record numbers of Americans are unemployed or under-employed.
Quantitative easing has never really worked to end recessions. In times past, the government effectively printing money to increase the money supply appears to have worked because inflation caused the debt to be reduced. Inflation was a painful but effective tool in reducing the national debt because it also meant that people made more money as the demand for labor increased. But this time the demand for labor has not increased, thus keeping wages depressed.
Among the theories given to explain why the demand for labor has not increased is that automation is now replacing jobs faster than new jobs can be created. This may indeed be a factor but a more significant impact is certainly due to the globalization of the world economy. Jobs that used to be done locally are now being outsourced to places where labor is cheaper.
The inflation that usually accompanies the government printing money has not materialized this time. We have had an increase in asset prices such as stocks and real estate but commodity prices led by the price of oil have been depressed. The biggest factor in the depression of commodity prices is due to wages not increasing and it is not possible for wages to increase if there is a reduced demand for labor.
There has never been a time in the history of the world when interest rates have been so low for so long. This is making it harder for governments to employ their quantitative easing strategy which they believe stimulates the economy. It is hard to reduce interest rates on government loans when you are already at zero percent.
When the government is effectively giving money away at zero percent interest, they can no longer just bail-out failed financial institutions. What the European Union is now looking at doing instead is a “bail-in.” This is where some percentage of depositor savings is reduced similar to what happened in Cypress. All EU member states have been required to have bail-in legislation on their books beginning this year.
While the European Union will probably not execute their plans to confiscate depositor savings through a bail-in until the next major economic meltdown occurs, some banks there have already begun charging negative interest rates on savings. They are now effectively charging depositors to warehouse their money. This is intended to get depositors to take their money out of the bank and spend it in an effort to stimulate the economy.
Whether negative interest rates works to stimulate the economy or not, it will lead to governments implementing some sort of cashless system in order to have more control. Most transactions are already done digitally out of convenience. A cashless economy sets the stage for the time when all transactions can be micro-managed by the state which is necessary for the mark of the beast that will be implemented during the Tribulation (Revelation 13:16-18).
The European Union is the model for the world coming together as expressed in their motto, “United in diversity.” What is being tried to stimulate the economy in Europe will eventually be done worldwide. All that is required is a big enough economic crisis to cause governments to take action.
And such action has generally resulted in them gaining more control over their people. When the problem becomes bigger than national governments can fix by printing more money or confiscating savings, there will be increasing demands for a bail-out by an even higher governmental entity—a more powerful global union of nations.
Every crisis is taking us closer to the global government the Bible says will be in place when the Lord returns. The stage-setting is picking up pace at such a rate that many have theorized there must be a conspiracy of the elite orchestrating developments in order to rule the world. Whether or not there is a human conspiracy at work in the world, there certainly is a spiritual one.
God is removing His restraint from evil to prepare the world for the Tribulation when lawlessness will run its course. This is allowing Satan and his fallen-angel followers to have more influence over the nations of the world.
God is in control of the economy and allows it to flourish or fail in order to serve His purposes. The idea that mankind can control the economy is an illusion that will eventually become apparent to all. But until then, mankind’s solution to fix the economy will be to double-down on the flawed policy to seek a bail-out from a higher governmental authority.
This is the dynamic that will eventually give us a global government. This world will experience the ultimate in human control over mankind and Revelation 18 says it will fail spectacularly.
There have always been economic cycles and they are nothing to fear for those who are trusting in the Lord. God promised us in Genesis 8:22:
“While the earth remains, seedtime and harvest, cold and heat, winter and summer, and day and night shall not cease” (NKJV).
The best way to prepare for the coming economic meltdown is to apply the principles God has given us in His Word to be good stewards of His blessings. And this includes such things as getting out of debt and investing to lay up treasure in heaven.
The bailout this world sorely needs is for Jesus to return. All the economic pain this world will experience in the next few years will bring mankind to the end of themselves and prepare society for rule by the Lord Himself. But followers of Christ during this Age of Grace will not have to go through the worst of the economic turmoil that will characterize the Tribulation. The best way for people to be prepared for the economic crash described in Revelation 18 is to allow Jesus to be their Savior and Lord now, before the Rapture of the church.
The economy of the Lord is far superior to that which mankind envisions. It is actually encouraging to see the end of mankind’s economy foreshadowed when you know it only indicates the kingdom of God on earth is very near.
Come soon Lord Jesus!