There were at least a three noteworthy events in the financial markets this past week. In the first place there was outgoing European Central Bank (ECB) head Mario Draghi’s announcement of what some are calling QE Infinity (Infinite Quantitative Easing). According to Draghi, the ECB will begin asset purchases at the rate of €20 billon per month for as long as it deems necessary, “to reinforce th accommodative impact of its polity rates.”
Translating all this central bank talk into plain English, Draghi has committed the ECB to counterfeit an absurd about of money on a monthly basis just to make sure the European economy doesn’t collapse. Further, there is no definite stopping point to this program. Draghi’s policy is both sinful and incompetent. It is sinful, because it violates the Bible’s clear teaching that differing weights and measures are an abomination to the Lord It is incompetent, because it fails not only to address the real reasons for the economic problems in the nations that use the Euro currency, but actually makes them worse.
Second was Donald Trump’s calling for the Federal Reserve to lower “interest rates down to ZERO , or less.” This is a remarkable statement by the President, and has left many asking why he made it. The short story is this, the American economy is not as good as what Trump and others have tried to convey and the President is concerned that, if the Fed doesn’t cut interest rates, the stock market will tank and the economy will fall into recession. Neither of these things would be good for his reelection chances.
Of course, neither a Zero Interest Rate Policy (ZIRP) nor a Negative Interest Rate Policy (NIRP) would be good for the country, especially for those who rely on interest income from their savings, but that doesn’t seem to matter to the President.
A third noteworthy item of financial news from last week was the sudden spike in the 10-year US Treasury interest rate. The 10-year US Treasury is considered the benchmark interest rate for the entire bond market. More than that, the 10-year Treasury is the benchmark which goes a long way to determining the price of stocks as well.
When interest rates move sharply upward, this means that the price paid for bonds has gone sharply down. Bond interest rates and bond prices move in opposite directions, much as the ends of a teeter-totter do. If yields are going up, this means that there is a selloff in the bond market.
So bonds are selling off, what does this mean? Peter Schiff and Gregory Mannarino have warned that this could portend a larger bond selloff as holders of US Treasuries become nervous about the financial condition of the US. Mannarino is of the opinion that China may be the major actor here.
Another interpretation is that the Exchange Stabilization Fund (ESF) – the ESF is part of the US Treasury Department – is manipulating the 10-year interest rate to make sure that the yield on the 10-year Treasury stays well above the yield on the 2-year Treasury, thus preventing an inverted yield curve, which is a strong recession indicator.
These moves in the bond market are important, yet most people don’t follow the bond market nearly as much as the stock market. But it’s the bond market that controls what goes on in the stock market, not the other way around. If we ever do get an uncontrolled selloff in the bond market – this would mean sharply higher interest rates, remember when bond prices go down, interest rates go up – you would see a simultaneous crash in all markets that derive their value from debt: stocks, and housing in particular.
Put another way, if the bond market tanks, the whole economy tanks.
One thing all three bits of news above have in common is that they are all related to what I’ve called the Ongoing Financial Crisis of 2008. My contention is that, due to the interventions of governments and central banks, the debt problem that triggered the 2008 global financial crisis not only was not solved, but actually made worse. Calls for QE Infinity, ZIRP, and NIRP together shaky bond markets are all symptoms of this.
In light of the fact that the serious problems with the West’s financial system have never been addresses, and given the foolishness of Western leaders, never will be voluntarily addressed, it seems wise to this author for Christians to take steps to protect themselves from a breakdown in the financial system now.
It is this need to get prepared and stay prepared, together with a conviction that very little has been written for Christians by Christians on this subject, that have prompted me to write this series in the first place.
As part of this series on the financial crisis and on getting prepared for it, I have been examining what the Bible has to say about prepping. As a Scripturalist – a Scripturalist is defined as one who believes that all knowledge is either expressly set forth, or can be derived by good and necessary inference, from the 66 books of the Bible – it is critical to ground all prepping the Word of God.
One question to ask is this, Does the Bible support prepping? The clear answer is, yes it does. This can been seen in the numerous, clear examples in the Scriptures of those took steps to prevent suffering and death, both their own and that of others, by taking preventive measures in the face of oncoming catastrophe. “A prudent man foresees evil and hides himself,” says Proverbs, “but the simple pass on and are punished.”
A second question to ask is, What should Christians do to get prepared? I contend that Christians must answer this question in the same as the first, by looking to the Scriptures. As part of this series, we’ve already looked at two examples, that of Noah and that of Lot. Today, I’d like to turn the reader’s attention to another obvious example from Genesis, the case of Joseph, Prime Minister of Egypt.
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Coronavirus Quarantines, Are They Biblical?
Posted in Politics, Scripturalism, tagged Coronavirus, John Robbins, Scripturalism, Scripture Commentary on March 29, 2020| 1 Comment »
An almost empty street is seen at Times Square in Manhattan on Monday in New York City. On Tuesday, Governor Andrew Cuomo dismissed rumors that a quarantine would be in place for the state after days of rumors of New York City being put on lockdown. JJOHANNES EISELE/AFP/GETTY
All the days wherein the plague shall be in him he shall be defiled; he is unclean: he shall dwell alone; without the camp shall his habitation be.
“We haven’t faced an enemy like we are facing today in 102 years – we are at war. In the time of war, we must make sacrifices, and I thank all of our Ohio citizens for what they are doing and what they aren’t doing. You are making a huge difference, and this difference will save lives,” said Governor DeWine. “Right now, we are in a crucial time in this battle. What we do now will slow this invader so that our healthcare system will have time to treat those who have contracted COVID-19 and also have time to treat those who have other medical problems. Time is of the essence.” Thus reads the announcement on the Ohio.gov website where the state’s Stay At Home Order is also listed.
Clearly, Governor DeWine takes the coronavirus [the Ohio.gov website calls it COVID-19] outbreak very seriously. Note the repeated use of military terminology in the quote above. We are told that “We haven’t faced an enemy like we are facing today in 102 years” [apparently, this is a reference to the 1918 outbreak of the Spanish Flu]…“we are at war”…“In time of war”…”we are in a crucial time in this battle”…”What we do now will slow this invader.”
With all this military terminology, one wonders when the Governor plans to institute a draft. Then on second thought, in a way, he already has. As the website notes, beginning March 23, 2020 at 11:59 p.m. Ohioans are under a Stay At Home Order. This order is effective until 11:59 p.m. on April 6, 2020 “unless the order is rescinded or modified.” This order applies to everyone, and as of this writing on March 29, no recension or modification of this order has been announced. So in a way, all Ohioans already have been drafted into the Governor’s war.
One question that seems not to have been asked in the wake of Governor DeWine’s announcement is, on what authority does he give this order? Reading through the order, one finds that it contains provisions that shutter a not insignificant portion of the businesses within the state. What is the legal basis for the Governor’s order?
One possible answer is that Ohio has adopted some form of “Medical Martial Law” legislation that was propagated in the wake of the Swine Flu pandemic in 2009. Researcher James Corbett produced a video back in 2009 related to the Swine Flu pandemic which he titled Medical Martial Law and which dealt with the legislative response that followed the outbreak of that pandemic. In his video, Corbett states that something called “The Model State Emergency Health Powers Act” was drafted by the Center for Law and the Public’s Health at Georgetown University (Jesuits) and Johns Hopkins University. According to the website of The Centers for Law & the Public’s Health, the Model State Emergency Health Powers Act (MSEHPA) “grants public health powers to state and local public health authorities to ensure a strong, effective, and timely planning, prevention, and response mechanisms to public health emergencies (including bioterrorism) while also respecting individual rights.”
The website boasts that forty-four states have adopted MSEHPA in whole or in part, but, curiously, Ohio is not listed among them. Neither was I able to find anything on other websites linking MSEHPA to Ohio. That being the case, this model legislation, as dangerous as it is, apparently is not the basis for the Governor’s actions.
According to the language in the Order itself, the basis for the Order is R.C. [Revised Code] 3701.13 which allows the Director of the Ohio Department of Health to “make special orders…for preventing the spread of contagious or infectious diseases.”
That said, although he doesn’t come out and say it directly, Governor DeWine and Dr. Amy Acton (Ohio’s Director of Health) seem eager for the public to see the Stay At Home Order as some form of Medical Martial Law. This can be seen from the Governor’s own words, laden as they are with military terminology.
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