THE GLOBAL FINANCIAL CRISIS
“Men’s hearts will faint from terror, being
apprehensive of what is coming upon the world.” (Luke 21:26)
“Be patient, therefore, brethren, until the coming of
the Master … Establish your hearts, for the coming of the Master is
near.” (James 5:7-8)
Last June, the Royal
Bank of Scotland warned of “a full-fledged crash in global stock and
credit markets over the next three months as inflation paralyses the
major central banks.”
It was not wrong! The
writing was on the wall!
Indymac Bank which had $32 billion in assets, collapsed. This was
followed by a string of troubled banking companies.
In early September,
former Federal Reserve chairman, Alan Greenspan, warned:
IS A ONCE-IN-A-CENTURY CRISIS.”
The Bible warns:
“Woe, woe, the great city, Babylon, the strong city!
For in one hour your judgment has come. And the merchants of the earth
weep and mourn over her, because no one buys their merchandise any
more.” (Revelation 18:10-11)
“Babylon” here is
symbolic of the corrupt world economic system. The prophecy is
of the global system which will take place in the endtimes – the
Tribulation - before the millennial Kingdom of God is established on
No matter which way
the world is viewed today – socially, politically, economically,
militarily, scientifically, environmentally, religiously – it all in-dicates
we are in the endtimes, or very close to them.
To the traders of the
world, God says:
“Come now, you who say, ‘Today or tomorrow we will go
to this or that city, and spend a year there, and do our
business, and make a profit. You do not know what’s ahead, or what
your life will be like tomorrow? Your life is like a puff
of smoke that appears for a moment and then disappears.” (James 4:13-14)
“He who loves money will not be satisfied with
money, nor he who loves abundance with its outcome. This too
is futility.” (Ecclesiastes 5:10)
Over the past few
weeks we have seen the stock markets of the world shaking; and not only
the stock markets - the confidence of traders, banks, and people
everywhere is being severely shaken. The current crisis is as much
as it is about
It is “confidence”
that is the key to the survival of the present cashless society. When
confidence diminishes, stocks, and a robust economy, evaporates.
WARNS: “ENTIRE ECONOMY IS IN DANGER”
SEPT 25, 08.
President Bush said that lawmakers risk a cascade of wiped-out
retirement savings, rising home foreclosures, lost jobs and closed
businesses if they fail to act on a massive financial rescue plan. “Our
entire economy is in danger,” he said. “Without immediate action by
Congress, America could slip into a financial panic and a distressing
scenario would unfold. Ultimately, our country could experience a long
and painful recession … We must not let this happen!”
More banks could
fail, he said. The stock market could plummet and erase retirement
accounts; businesses could find it hard to get credit and be forced to
close, wiping out jobs for millions of Americans. He ended on a positive
note, predicting lawmakers would “rise to the occasion” and that the
nation’s economy will overcome “a moment of great challenge.”
Was this the real
situation or a threat? Was it a government attempt to take over the
economy? Or was it the ploy – the machinations of money-mongers pursuing
their insatiable goal of consolidating control over the financial
systems of the world?
Well, we do know
there is a
that has been at work
in the world for a long time. The apostle Paul warned of this evil
“For the mystery of iniquity and
lawlessness is already at work; but He who now restrains will do so
until He is taken out of the way. And then the lawless one will be
revealed whom the Lord will slay with the breath of His mouth and bring
to an end by the glory of His coming; that is, the one whose coming is
in accord with the activity of Satan, with great power and with all
kinds of signs and counterfeit miracles, and with all the deception of
wickedness among those who are perishing, because they would not receive
the love of the truth which could have saved them.” (2 Thessalonians
This prophecy sheds
light on many of the evils that we are witnessing in the world today.
And now we’re told, it’s the …
CRISIS SINCE THE ’30s - NO END IN SIGHT
The financial crisis
that began 13 months ago has entered a new, far more serious phase.
Lingering hopes that the damage could be contained to a handful of
financial institutions that made bad bets on mortgages, have evaporated.
“This has been the
worst financial crisis since the Great Depression. There is no question
about it,” said Mark Gertler, a New York University economist who worked
with fellow academic Ben Bernanke, now the Federal Reserve chairman.
“But at the same time
we have the policy mechanisms in place fighting it, which is something
we didn’t have during the Great Depression,” he said.
Expectations for a
quick end to the crisis, however, are fading fast!
In September, major
banks began to go under. In one turbulent week, the crisis wiped out
from the value of global stocks.
The Scripture, in
James 5:1-3, warns of the collapse of our money system:
“Come now, you rich, weep and wail because of the
miseries that are coming upon you. Your wealth has become rotten, and
your garments are moth-eaten. Your gold and silver have corroded,
and their corrosion will testify against you and will consume your flesh
like fire. You have hoarded wealth in the Last Days!”
With the US facing
the biggest financial meltdown in decades, President Bush took the
unusual step of asking both Democrat Barack Obama and Republican John
McCain, (one of whom will inherit the financial mess in January), and
key congressional leaders of both parties, to a White House meeting to
work on a compromise solution to the economic crisis plaguing the
The White House and
administration officials have warned repeatedly in recent days of a
coming “financial calamity,” and have asked Congress for an
unprecedented $US700 billion bailout of the ailing finance system.
OBAMA & JOHN McCAIN
Obama and McCain
issued a joint statement using their own dire language to urge lawmakers
to act. The two candidates, while bitterly fighting each other for the
White House, came together on this issue, to say:
“The plan that has
been submitted to Congress by the Bush administration is flawed, but the
effort to protect the American economy must not fail. This is a time to
rise above politics for the good of the country. We cannot risk an
Senior lawmakers had
announced the outlines of the deal to rescue Wall Street, but some
Republican congressmen opposed it. Democrats called for limits on pay
for executives whose companies get rescued under the government deal.
And they said that any deal must include strict oversight by federal
The American people
the bailout. Some
senators and congressmen stated that calls coming into their offices
were anywhere from 100 to 1, to 300 to 1, against the $700 billion
Although there was
general agreement that something must be done to address the spiraling
economic problems, there was
to the bailout, especially from conservatives in the Republican Party
who revolted at the high price tag and the massive private-sector
intervention by government.
Bush had stressed he
was reluctant to put taxpayer money on the line to help businesses that
had made bad decisions, and that the rescue is not aimed at saving
individual companies. He tried to address some of the major complaints
from Democrats by promising that CEOs (Chief Executive Officers) of
failed companies would not be rewarded (by golden handshakes),
while warning he would draw the line at any regulations he determined
would hamper economic growth.
“With the situation
becoming more precarious by the day, I faced a choice: to step in with
dramatic government action or to stand back and allow the irresponsible
actions by some to undermine the financial security of all,” he said.
After several days of
trying to reach a mutual agreement, the US House of Representatives
the Wall Street bail
out, and this sent stocks crashing to their worst single-day loss ever,
and deepening the financial crisis.
is the street in New
York City that is the heart of the financial district and stock
THE SEPT 30 MELTDOWN
“In one hour such great wealth has been laid waste!”
Today (Sept 26) – the
day it was announced that the $US700 billion bailout legislation had
failed, the Dow Jones industrial average responded with its biggest
single-day fall ever – a loss of 777 points. The Dow Jones Wilshire 5000
Composite Index recorded a paper loss of $1 trillion for the day. This
also was a first.
following the US meltdown, lost $60 billion in value. Asian stocks had
already seen big declines.
In Russia, trading
was temporarily suspended on the country’s two main stock markets.
Washington as President Bush said he was “disappointed” that the bailout
foundered, and Democrats accused Republican conservatives of killing the
bill for ideological reasons.
reporter-analyst, Bill Koenig says: “The Bush bailout of the
mortgage crisis is at the top of the news. The bailout plan as it stands
gives absolute power to the White House in administering property and
money … absolute
Section 2 of the
legislation proposed to Congress by Bush calls on the Treasury Secretary
to designate “financial institutions as financial agents of the
Government, and they shall perform all such reasonable duties related to
the Act as financial agents of the Government as may be required of
Section 8 gives
absolute power to the Treasury Secretary in bone-chilling communistic
language: “Decisions by the Secretary pursuant to the authority of the
Act are non-reviewable
and committed to agency discretion, and may not be reviewed by any court
of law or any administrative agency.” This one line alone shows the
intent of the entire plan:
government takeover of the
WorldWatchDaily/Sept 26, 08
– STOCKS RECOVER
The day after the
meltdown, the stock markets began to recover, after it was announced
that a revised bailout bill would be brought before the American Senate
within two days.
- SENATE PASSES THE BAILOUT
The US Senate
resoundingly passed the sweetened US$700 billion Wall Street bailout
package, spurring hopes that the House of Representatives would follow
suit by the weekend.
OF REPRESENTATIVES ADOPTS BILL
Oct 6. The House of
Representatives adopted the new version of the Emergency Economic
Stabilization Act after the Senate added about $100bn (£57bn) in new tax
breaks to win Republican votes. The bill passed by 263 votes to 171.
Within two hours, President Bush signed it into law.
Some of the
Congressmen who had earlier voted “No” said they switched because of the
improvements to the bill, but many of them still expressed serious
reservations. Others continued their opposition, saying the bill was
still a bail-out benefiting mainly Wall Street, and not the people.
John McCain said the deal “isn’t perfect and it’s an outrage that it is
even necessary.” But he said the US had to stop damage to its economy
caused by “corrupt and incompetent practices on Wall Street and in
Barack Obama said it was important that the Bush administration used the
new powers granted by the deal wisely. “The fundamentals of the economy
aren’t sound and we’re going to have to do a lot of work moving
“The focus now shifts
back to the US Treasury, which is tasked with using the billions of
dollars of taxpayers’ money to try to unclog the financial system.
It will be
several months before anyone can tell whether the plan is working.”
The Wall Street
said: “The bill is far from perfect, but its passage is most significant
as a statement of purpose that the US Government is not going to let the
financial system melt down.”
A senior analyst
says: “The financial crisis and the bailout is likely to cost every man,
woman and child in America, over $3,000.”
OF RECESSION IN SPITE OF THE BAIL OUT
Despite the adoption
of the bill, the US stock market fell and global financial markets
remained fearful that the bailout package would fail, and that recession
was ahead – not only in the US, but worldwide.
US government figures
showed job losses at a five-year high;
159,000 jobs were lost
(in the US) in September alone.
HOW THE AMERICAN MELTDOWN BEGAN
“The wicked will act wickedly; and none of the wicked
will understand, but those who have insight will understand.” (Daniel
magazine’s cover story (Sept 29, 08), says the US meltdown was THE PRICE
has put it more strongly. “Western Finance is fundamentally based on
FRAUD. The fraud of the system is that you can create money from
nothing and everybody can get rich by selling each other fictitious
financial instruments that have no connection to reality. Financial
fraud is committed by high-brow academics who contrive complicated
derivative financial instruments (loans) that are then presented to the
investment community as things of real value (which they are not).”
Bill Koenig, a
Christian reporter at the White House says, “We are moving into
uncharted waters in the US financial system. The outcome, as well as the
best approach, is unpredictable. The situation is enormously
“I have been warning
of a major financial implosion due to financial derivatives since 1998.
(Derivatives mean bad loans). The Federal Reserve’s
lending policies have kept the inevitable from happening; but this year
they began to implode due to
home mortgage excesses
and the rapid acceleration of the price of crude oil and other
“A 1994 law gave the
Federal Reserve authority to regulate mortgage lenders. But the Fed
didn’t implement the rules until June 2007, after foreclosures and
defaults on sub-prime loans began to rise.”
expert says: “A method of hedging (protecting) against bad loans called
derivatives — totalling some
credit-default swaps — helped fuel the recent meltdown in the financial
system … Bad loans, including those in the mortgage sector, were sold in
an unregulated market without proper backing, and the system collapsed
like a house of cards when the market imploded.
Christopher Cox said, “trading in these hedge funds ought to be
regulated so companies are not susceptible to manipulation. The bottom
line, however, is that banks and other lending institutions were playing
so fast and loose with the margins that they did not take into account
that the market could fold. Now the American taxpayer will foot the bill
for unrepentant and unregulated greed gone awry.”
In 2003, Warren
Buffett, a very successful American investor, called derivatives,
“weapons of financial
For years now the
world has been awash in cheap money. Easy credit has been extended for
property purchases, and there was little fear in selling houses without
any deposits, because it was believed housing prices would only go up.
In 2006, IndyMac
was the largest provider of mortgages that didn’t require borrowers
to provide proof of their incomes.
In mid 2007, housing
values began to fall, and then a worldwide credit crisis burst on the
stock markets, wiping out $3.3 trillion in the first half of the year.
In January 2008,
there was the sub-prime market crash with a host of ongoing problems.
In mid-2008 there was
run on the IndyMac bank which had about $32 billion in assets.
Depositors withdrew $1.3 billion in eleven days. The bank collapsed – it
was the third largest bank failure in US history.
Customers, who were
given big mortgages with little documentation and sometimes no deposit,
began to default on their loans.
crisis” began to seriously impact the finance industry, “spreading its
toxins to the very lenders who first extended that easy-rate,
no-document mortgages to homeowners.”
another large bank, collapsed, and the government orchestrated a take
over of the company by the JPMorgan Chase bank.
In July, two enormous
home lending institutes – Fannie Mae and Freddie Mac –
which between them guaranteed
$5 trillion of mortgages
40% of all US home-mortgage debt) was bailed out by the government to
the tune of $200 billion– to keep the financial system whole.
The government next
stepped in with $85 billion to save AIG (American International
Group) - America’s largest insurer — which was nearing bankruptcy. This
was a very scary situation as AIG had assets of $1 trillion, and
more than 70 million customers.
On Sept 15th,
Lehman Brothers, one of America’s oldest and most prestigious
banking firms, filed for bankruptcy. This represented the largest
financial failure in US history and will produce enormous ripple
effects. It will impact the US economy and markets more than any of the
other negative financial developments of the past year. Why? Lehman
owed its creditors a staggering
Those creditors will now be unable to regain their funds, nor spend or
invest them elsewhere in the economy. The money has evaporated!
The government balked
at rescuing this financial giant. They didn’t have such funds available.
In mid-September, the
century-old Merrill Lynch & Co. was bought by the Bank of
America for $50 billion, to prevent its total crash.
Washington Mutual Inc. which had assets of $310 billion, collapsed
and was taken over by JPMorgan Chase for 1.9 billion US dollars.
It was the biggest US bank failure. All of these banks were felled by
bad mortgage investments.
On Sept. 18, in yet
another stunning turn of events, Treasury Secretary Henry Paulson
proposed a plan that would cost the government, if not necessarily the
FDIC, hundreds of billions of dollars more. The Treasury Secretary says
will purchase toxic mortgage debt
from banks in an effort to cleanse the financial system. In an
unprecedented move, the Treasury pledged $50 billion to insure non-bank
money market funds. Paulson’s plan, however, won’t reduce the number of
banks on the FDIC’s watch list.
Sept 26, 08.
Deadlocked talks on a bailout of the US financial system and the
collapse of the Washington Mutual bank sparked a new fall on
global markets despite the injection of tens of billions of US dollars
by central banks.
On top of that
collapse, the financial world was also hit by news that banking giant
HSBC is to cut 1,100 jobs worldwide. Around half of those losing
their jobs would be in HSBC’s British operations, according to
Hong Kong-based spokesman, Gareth Hewett.
“The steps we have
taken today are in the light of the current global business and economic
environment and our cautious outlook for 2009,” he said.
Key stock markets
around the world fell also because of doubts about the US rescue
package. Share markets in Tokyo, London, Paris, Frankfurt and Asia were
Sept 30. Citigroup
Inc. acquired Wachovia Corp. in a deal
brokered by the
UFJ Financial Group invested $9 billion in Morgan Stanley for
a 21% stake in the company.
The massive scale of
the problem, which escalated as mortgage holders began to default on
so-called sub-prime loans, showed that the international community had
learned nothing from previous episodes, such as the Asian financial
The question now is:
Which banks are next, and how many? The Federal Deposit Insurance Corp
(FDIC) lists more than
in trouble in the
second quarter, and the number has probably grown since then. How many
could be bailed out?
Writer David Evans, on
Sept 25, 08,
managing director of Institutional Risk Analytics, a
California-based firm that sells its analysis of FDIC data to investors,
“By the end of 2009, about
100 U.S. banks will fail.”
Evans says: “The FDIC
knows which banks are at risk; it has a watch list with 117
institutions. The agency won’t disclose their names because doing so
could cause depositors to panic and pull out all of their funds.
“It won’t take many
more failures before the FDIC itself runs out of money. The agency had
$45.2 billion in its coffers as of June 30, far short of the $200
billion Whalen says it will need to pay claims by the end of next year.
The US Treasury
will come to the rescue, as no politician is likely to vote in favor of
leaving federally insured depositors out in the cold.”
The fact is the US
government is almost as broke as the institutions it is trying to
assist. It is in no position to help. The obvious next question is,
“Who will bail
out the US Government when it goes broke?”
The government only
has three options. (1) It could raise taxes in order to pay for the
bailouts, which would extract money from the economy at a time when it
needs more. (2) It could print more currency, which would lead to
hyper-inflation and an eventual collapse. Or, (3) it could borrow even
more from foreign entities — if they are still willing to loan money.
This last option would further increase the colossal government debt
and lead the country to eventual bankruptcy. It all looks bleak.
MAY ALSO NEED TO BE BAILED OUT
The American FDIC,
which was created in 1934, insures all accounts up to $100,000 at its
member banks, and until now it has never failed to honor a claim.
So far in 2008,
twelve banks, with total assets of $42 billion, have fallen.
which had $32 billion in assets when it went into receivership, is the
most expensive bank failure the FDIC has ever covered. The IndyMac
debacle is taking a large bite out of FDIC reserves, and if scores
of other banks fail in the year ahead, the fund will be soon depleted.
BUY UP MASSIVE DEBTS
Oct 8. The US
Treasury Department is reportedly working with the Federal Reserve, in
weighing up a bold plan to buy massive amounts of unsecured short-term
debts in a dramatic effort to break through a credit clog that is
imperiling the economy. – AP
EUROPEAN BANKS ALSO IN CRISIS
The mortgage crisis
is ripping through Europe, where there are many large banks whose
failures could also rock the global financial system.
The global banking
crisis, born across the Atlantic, again sent waves crashing into Europe
as the Belgian, Dutch and Luxemburg governments partly nationalised
Belgium-Dutch banking, and the insurance giant, Fortis in an
billion ($US6.4 billion) bailout.
29 Sept 08. At the
end of September, the British government had to nationalize the troubled
mortgage lender Bradford & Bingley.
Dexia has received a state bail-out, costing the Belgian, French and
Luxembourg governments a combined 6.4bn euros ($9.2bn / £5bn)
The government of
all bank deposits would be guaranteed for the next two years.
EUROPE’S WARNING TO THE U.S.
The crisis has
sparked mounting international political concern. Germany’s Finance
Minister Peer Steinbrueck warned that “the United States will lose its
superpower status in the global financial system” as a result of the
crisis that has humbled some of the greatest names in US finance.
Nicolas Sarkozy warned that the global financial crisis would hit French
growth and jobs.
“The crisis is not
over, it will have lasting consequences. France is too involved in the
world economy for us to think for one second it could be sheltered from
the events currently rocking the world.” He called for an overhaul of
the world’s financial system.
BILLIONS PUMPED INTO THE MONEY MARKETS
The US Federal
Reserve and central banks in Europe and Asia pumped tens of billions
more US dollars into money markets which analysts say, are under extreme
tension, to shore up general market sentiment.
Central Bank and the British and Swiss central banks used reciprocal
currency arrangements to inject $US13 billion.
The Bank of Japan
pumped a total of 1.5 trillion yen (14 billion US dollars) into the
Tokyo money market.
South Korea also
announced plans to pump at least $US10 billion into the foreign exchange
swapmarket to ease dollar shortages.
Hundreds of billions
of US dollars have been used to stabilise markets since the collapse of
Lehman Brothers and the forced takeovers of American Insurance
Group and Merrill Lynch in the deepening sub-prime crisis.
FINANCIAL GLOOM DEEPENS OVER UK
Britain is fast
heading into recession according to economic forecasters. Economists
warn that Britain faces a long and deep recession, with unemployment
rising by up to
The recession will
play havoc with public finances, but the Treasury still predicts the
economy will recover next year.
Oct 2, 08. UK house
prices fell for an 11th consecutive month, dropping by 1.7% in
September, according to the Nationwide.
EUROPEAN LIQUIDITY INJECTIONS NOT WORKING
Oct 2, 08. The
billions of euros the European Central Bank has been injecting
into money markets since the start of the crisis, in an attempt to get
banks to start loaning money to each other and other businesses, is not
working. Instead, banks are re-depositing some of the monies back with
the ECB itself - over
billion overnight - as they are worried that the central bank is the
last safe place left to stash their cash.
EUROPEAN LEADERS MEET IN RESCUE BID
Oct 6. 08. The heads
of Europe’s largest economies, France, Germany, Britain and Italy, met
in Paris and vowed to prevent the US financial crisis from destabilizing
their banking systems.
They announced a
multi-billion euro fund to support small businesses, while calling for a
summit of the G8 industrial nations to respond to the crisis, and to
redefine the world’s financial order. The four leaders, however, failed
to agree on a solution for the EU as a whole.
Oct 8. The financial
crunch is now threatening the biggest institutions in Europe, and
governments across Europe were battling to prevent more financial
Giant British banks,
Barclays and the Royal Bank of Scotland were the latest
troubled institutions needing multi-billion pounds of assistance. Shares
in British banks collapsed – the Scottish bank by 35%.
BAILS OUT MAJOR BANK
Oct 7, 08. Germany
sealed a public-private rescue plan for the country’s 4th largest bank
by extending a blanket guarantee for all personal bank deposits – to
avert a panic run on the bank. 50 billion euros was injected as a
lifeline to the stricken Hypo Real Estate.
The move was aimed at
shoring up confidence in a country which still has bitter memories of
failing banks in the Great Depression which brought Hitler to power.
IN ECONOMIC MELTDOWN
Iceland is situated
in the North-West Atlantic (between Greenland and Norway) – a small
island nation of 300,000 people.
Oct 7. Trading in all
Icelandic banks has been suspended as PM Geir Haarde warned the heavy
exposure of Iceland’s banks was raising the spectre of
banks had lent out more than ten times the value of the small nation’s
After a strategic
blunder in which the EU leaders refused to provide a four billion euro
bailout to Iceland, Russia came forward to give the bailout. This was
undoubtedly a payback to Europe for their interference in Russia’s
backyard. The move will give Russia a foothold in the North Atlantic.
CALM” SAYS EURO-ZONE CHIEF
European Central Bank
president, Jean-Claude Trichets, said the jittery markets are
overestimated risks. He called for markets to be calm, saying the
euro-zone central bank stood ready to provide money markets with
all the liquidity they
needed for as long as they need.
OCT 6. The four BRIC
Russia, India and China)
suffering their worst one-day losses in history. “BRIC” banks were
seized by the fear of being swamped by the global credit crunch.
Brazilian and Russian
markets were hit by low metal and fuel prices. Russia’s stock index fell
by 18%, and Brazil’s by 10%. India’s sensex index lost 6%, and China’s
“The Indian slump has
been driven by the exodus of nearly $US10 billion in overseas money this
year, as investors seek sanctuary in US Treasury bonds. A broker in
Mumbai said, “Foreign funds are panicking.” – The Times
India has been hit as
many of its IT (Information Technology) companies are connected to
American financial institutions. The collapse of Lehmans in the
US has led to the loss of many IT jobs in India.
market is also feeling the squeeze.
FINANCIAL TURMOIL COULD PUSH
NATIONS OVER EDGE
UN Secretary General
Ban Ki-moon said the crisis now threatened the world’s most vulnerable
populations as well. “The current financial crisis threatens the
well-being of billions of people, none more so than the poorest of the
poor,” he said.
25 Sept 08. World
Bank President Robert Zoellick warned of the economic damage that
developing countries, already reeling from high food and fuel prices,
could suffer from the global financial crisis.
Addressing a business
forum on the sidelines of the U.N. General Assembly, Zoellick said many
developing countries were already facing balance of payments pressure as
rising prices push import bills higher.
“The question now is
whether the turmoil coming out of the financial crisis pushes them over
the edge?” he said. Developing countries could be hurt if demand for
their export products dropped, investment declined, and terms of trade
were affected, Zoellick said. - Source: Reuters
COUNTRIES FROM PAKISTAN TO BALTICS
Oct 10. A string of
countries face the risk of “going bust” as financial panic sweeps Asia,
Eastern Europe, and Latin America, raising the spectre of a strategic
crisis in some of the world’s most dangerous spots.
Pakistan is bleeding foreign reserves. The Pakistani rupee has fallen to
an all-time low, and the central bank’s foreign reserves have fallen to
There are mounting
fears that Ukraine, Kazakhstan, and Argentina could all now slide into a
downward spiral towards bankruptcy.
RUDD’S FIX FOR WORLD FINANCIAL CRISIS
Sept 26. The
Australian Prime Minister, Kevin Rudd, delivered a stern message to
world leaders in his first speech to the UN General Assembly. He told
them to get their financial systems in order to prevent a repeat of the
global credit crisis sending the world economy into a tailspin.
Mr Rudd said the
massive scale of the problem showed the international community had
learned nothing from previous episodes, such as the Asian financial
crisis. “And now we face a financial crisis of truly global
proportions,” he said.
Mr Rudd set out his
vision on how the international community needed to respond to the
financial turmoil which is threatening global economic growth. In the
short-term, he believes the most useful response from the global
community is to support Washington’s $US700 billion ($A839.53 billion)
rescue package designed to stabilise financial markets. But over time,
he says there needs to be a major overhaul of regulation, blaming the
current troubles on a lack of internal governance and external
“The immediate task,”
Mr Rudd said, “is to rebuild confidence in the financial system,
by ensuring that central banks provide adequate liquidity, and by
enabling steps to recapitalise critical financial institutions; and by
ensuring the continued solvency of these institutions. Over the longer
term, the challenge is to reform financial markets and regulatory
systems to reduce the chances of these events repeating themselves.”
involves licensing the operation of financial institutions to make them
more transparent, putting rules in place to ensure they are adequately
capitalised and developing “internal incentives within institutions to
promote responsible behaviour rather than unrestrained greed.”
“Unless as a
community of nations we rise to this new challenge our future is bleak
indeed,” he said.
Mr Rudd would like a
strengthened prudential oversight for the International Monetary Fund.
– Source, AP report
Ya, that should fix
AUSTRALIA IS “BETTER POSITIONED”
The Prime Minister,
Kevin Rudd, said: “We are dealing with extraordinary economic times …
when some 25 banks around the world have either failed or have had to be
Rudd and others have
assured the nation that Australia, because of its booming resources and
mining industry, is better positioned to withstand the affects of the US
The stock markets,
however, have largely followed Wall St, and have been very volatile.
Oct 7. The Reserve
Bank of Australia signaled it will do whatever it takes to keep the
Australian economy from sliding into a global credit-crunch recession.
Then in a bold move to tackle the economics woes, it announced a big,
unexpected, 1% reduction of official interest rates.
This cut was double
the expected 0.5% reduction, and was intended “to, give the banks enough
room to pass on a significant reduction in interest rates to
This should benefit
home buyers saddled with mortgages. But in recessions many people lose
their jobs, and if they don’t have a job, they will struggle to pay
their mortgages, no matter how low the interest rates go.
dollar, which has been falling over the past few weeks from its peak of
98.7 (against the US dollar) in July, to a 16-year low of 65 cents. It
has lost 33% of its value within a couple of months.
Some see the low
dollar as a good thing, as it will make Australian products cheaper, and
thus increase exports. But the Reserve Bank warned that global financial
Australian economy, as there was evidence that major Asian trading
partners would be buying less from Australia in the coming year as their
economies also weakened.
The interest rate cut
calmed the panicking domestic stock markets which immediately
But the next day the stock index
loosing 5% of its value, following a huge fall of 900 points on the Wall
Street exchange. Experts believe long-term stability depends on global
As one commentator
noted, the rate cut was good news, but it did not take long to realize
that the bold move meant that the RBA board are extremely apprehensive
about how the credit and banking crisis continued to sweep through the
US and Europe. - Source: The Australian
WARNS AGAINST TAKEOVERS.
$US 675 BILLION MORE IS NEEDED
Monetary Fund said the financial crisis was rapidly getting worse, and
that an additional $US675 billion needed to be injected into struggling
institutions. It urged governments to take equity stakes in such
“But this should only
occur,” the IMF said, “where institutions were both viable and important
to the financial system. And such government investments should not be
complete takeovers. Banks that were not viable should be closed in an
The IMF also said
that “only a coordinated intervention in financial markets by leading
governments could restore confidence.”
Australia is facing a
wave of banking consolidations; Westpac is taking over St
George bank; the Commonwealth Bank is set to purchase
BankWest in a $2 billion deal; and Suncorp-Metway are engaged
in takeover talks.
PAULSON: “OUR SYSTEM IS GLOBAL”
Explaining the US
Treasury’s planned buy-out of bad debt held by American financial
institutions, the US treasury secretary Henry Paulson suggested that
European taxpayers would also have to take part in bankrolling
the biggest bail-out of
private firms in world history:
“Our system’s a
global one, and I also am going to be pressing colleagues around the
world to design similar systems for their banks. We are talking very
aggressively with other countries around the world, and encouraging them
to do similar things, and I believe a number of them will,” Mr Paulson
RECEIVED A SHOT IN THE ARM
In a long article
entitled, The Golden Calf Revealed, Wilfred Hahn, analyses
the evil of the money markets, and concludes with this quote from an
‘intrepid writer who writes anonymously as “London Banker” on RGE
“Once again in the
name of crisis and expediency, the laws are ignored, decisions are taken
in secret, extra-judicial reapportionment of property and contract is
mandated by executive fiat, and legislative review and judicial
intervention are impossible.
“Over the past year
every financial crisis has been met with lawless and Enron-esque
innovation by the Federal Reserve and Treasury, and this week was
arguably more extreme. In the name of exigency, they have all been
sprung as fait accompli on a shocked financial community, and have since
been treated as un-questionable and unreviewable.
introduced as a temporary measure has become a permanent fixture. Not
all catastrophic events were willful or anticipated, but all were used
to force through an agenda that was pre-agreed by a powerful elite that
stood to profit from a preferred course of policies that could only be
pursued in the undemocratic atmosphere of crisis. Crisis prevents
objective determination of the public interest. Crisis undermines both
markets and democracy.
“And that will also
be true globally. Shrill voices again are calling for
protect mankind from the financial lawlessness that has led to recent
financial tremors. Said a columnist in the Financial Times, “That
credible international rules.” -
GLOBAL ECONOMIC SYSTEM
As the current
financial system becomes undone, a new international economic order is
being proposed as the solution. Global planners have long understood
there can’t be a
new one-world system until the old order has failed.
New World Order
will mean a
system, a world government, a composite world religion, a one world army
and police force, and international conformity to standards and
To a “rational mind”
this may seem to be the desirable solution to world chaos.
The main trouble,
however, is that the
“president” of the
global system will be the man the Bible describes as
the Beast, the Man of Sin,
AND UK WANT A GLOBAL FINANCIAL REGULATOR
Sept 22, 08. The UK
and Germany believe that a new international system regulating the
financial sector must be constructed to prevent a repeat of global
banking crisis in the future.
Germany’s finance minister, raised the idea of
authority that will make the traffic rules for financial markets.”
In a speech to the
UN, the British PM, Gordon Brown, called for an end to “the age of
irresponsibility” in the global financial sector. In a speech to the
Labour Party, he outlined his proposals for an international body that
should be run under the authority of the International Monetary Fund.
He also introduced domestic plans to crack down on “irresponsible”
bonuses handed out in London’s financial quarter.
think what people haven’t appreciated is we’ve now got global financial
systems but we’ve only got national regulators to cover them,” Mr Brown
told the BBC ahead of the speech, adding that he had been trying to
convince his international counterparts for years of the need for
“a global system of
minister, Alistair Darling, according to the country’s Guardian
newspaper, is also set to tell his fellow Labour Party members: “Just as
one government alone cannot combat global terrorism; just as one
government alone cannot combat climate change, so one government alone
cannot deal with the consequences of
URGES NEW CURRENCY ORDER
Sept 24. Threatened
by a “financial tsunami,” the world must consider building a fair and
just financial order that is no longer dependent on the US, says The
People’s Daily, the official newspaper of China’s ruling Communist
suggested China must brace for grave economic fallout and look to
alternatives, saying the current financial crisis brings to mind the
Great Depression of the 1930s.
China is a major
buyer of US Treasury bonds, and it has stakes in large US financial
institutions. The Chinese currency, and China’s trade, remains tightly
linked to the fortunes of the US dollar. – Reuters and ABC
It seems we are
indeed getting very close to the one world global control that is
foretold in the Bible.
ECONOMISTS URGE ‘GLOBAL PLAN’
Oct 1, 08. Leaders
and economists from Western Europe to East Asia have urged the United
States to go beyond reviving a failed domestic bailout and start working
on a new global
“The Americans don’t
have a choice —
they must absolutely have a global plan,”
Christian Noyer, head of the French Central Bank.
David Smick, a global
strategist and author of
“The World Is Curved:
Hidden Dangers of the Global Economy,”
says the next US president should immediately call for a second “Bretton
Woods” conference to devise a new doctrine of international finance.
The tiny New
Hampshire town hosted a conference shortly after World War II that
established rules for economic interchange among the world’s industrial
powers and created the World Bank and International Monetary
“I am convinced that
the sickness runs deep and that we need to rethink the entire financial
and monetary system, as we did in Bretton Woods ... to create the tools
for worldwide regulation made necessary by the globalization of trade,”
French President Nicolas Sarkozy said in the French city of Toulon.
He said that
officials from France, Britain, Germany and Italy will meet next week in
Paris with the Continent’s top financial officials to prepare for a
proposed global summit on the economic crisis. European Central Bank
President Jean-Claude Trichet will participate.
European Union said that the crisis “has become a global problem” and
Washington has a “special responsibility” to resolve it.
Until a few weeks
ago, foreign governments were blase and even gloated about US financial
woes, Mr. Smick said. “The decoupled theory has taken a crash landing;
demand is plummeting worldwide and foreign financial institutions have
been forced to come to terms with their own toxic waste,” he said. -
GRAPPLES WITH OIL PRICE SLUMP
budget surpluses may cushion some of the Middle East’s major
oil-producing countries now that crude prices have plummeted. But Iran,
Iraq and a handful of other nations face daunting challenges to make up
the money in coming months because of the price drop and the global
The differences are
stark: developers in the UAE - whose economy is more diversified - are
still announcing $multibillion building projects. But merchants in Iran
went on strike in the past few days over tax increases imposed to
bolster the country’s budget.
“The Gulf countries
have enough reserves to get through rougher periods, and have based
their budgets on oil prices lower than what we see today. But poorer
countries like Egypt don’t have those kinds of reserves.” -
ISRAEL-PA PEACE DEAL SHELVED
Oct 13. The financial
crisis in the US has destroyed the last chance for President Bush to
establish a Palestinian Authority State and his place in Middle East
history before the end of his term.
co-president of the Israel-Palestinian Center for Research and
Information told the Washington Times that the Middle East has
been put on the back burner for now. “We are being shelved for the
moment,” said the analyst. “And if the crisis deepens, it’s bad news for
all of the Middle East. There won’t be any interest, in the government
of the US to do anything.”
“THE JEWS” BE THE SCAPEGOAT AGAIN?
Gary Kah, writes of the financial crisis: “As people increasingly feel
the pinch in their pocketbooks, they will look for someone to blame for
their hard times.
“So far, the federal
government is getting the most heat. The Federal Reserve, which is
responsible for many of our economic policy decisions, is especially
feeling the pressure. The last two Federal Reserve Chairmen have been
Alan Greenspan and Ben Bernanke — both Jews. And some of the individuals
overseeing our largest remaining banks are also Jewish.
“One can see the
“handwriting on the wall.”
“I fear that with 8
million Muslims now in America, outnumbering the 5.7 million Jews, and
with anti-Semitism on the rise among the general public, the Jewish
people could once again become the scapegoat. History has a way of
repeating itself. What is happening in America today is very reminiscent
of what happened in Germany preceding the rise of Hitler. I believe it
may be just a matter of time before Jews are persecuted and forced to
return to Israel. The persecution of true Christians could follow.
From a spiritual
standpoint, we need to draw near to Christ and get on His agenda. Being
in step with Jesus and serving Him faithfully is all that will
ultimately matter. Love Him wholeheartedly and serve Him with integrity
— living blamelessly among those around you.
Remember that God is
still in control and is aware of all your needs. Pursue Him, work hard,
plan wisely — leave the rest in His hands. Expect Him to do great
things, even under difficult circumstances.
Another writer, Jimmy
DeYoung – www.bible-prophecy-today.blogspot.com says:
“Israeli leaders say
the present economic crisis in the US, which is affecting the world
economic system, could be setting the stage for another Jewish Holocaust
since the Wall Street meltdown has thrown the future of the American
economy into uncertainty.”
He quoted the late
Jewish activist Rabbi Meir Kahane who said, “In bad times, Jew haters
hate Jews loudly and when times are economically terrible, they hate
Jews violently.” Some Israeli officials say the current economic crisis
is a template for a Holocaust. One official stated that people think a
Holocaust starts with concentration camps, but the truth is a Holocaust
starts when people perceive this economic crisis is the result of the
Jewish leadership in the financial markets.
STREET TURNS TO PRAYER
FINANCIAL MELTDOWN TRIGGERS PRAYER SESSIONS CITYWIDE
Sept 25, 08. The
turmoil in New York’s financial markets triggered a spiritual response
among Christian leaders reminiscent of the response to the 9/11
Cell phone text
messages quickly spread calls to prayer. “Barclay has pulled out of
Lehman deal,” one announced. Wall Street giant Lehman Brothers
was finalizing bankruptcy papers; Merrill Lynch was clinching its
deal to sell itself to Bank of America.
Many Wall Streeters
realized that the crisis could be earthshaking. A. J. Rice, the
well-respected CEO of the hedge-fund firm Pomeroy Capital, says,
“Most people think this is a once-in-a-lifetime thing. In 1987 we had a
dramatic shock, but the other shoe didn’t drop.” This year, a whole lot
of shoes have dropped. Wall Streeters have lived with a constant sense
Rice received a lot
of calls, several from friends at Lehman who were distressed by
the devastation of their colleagues. One told him, “I have never seen
grown men cry like that.” A consultant to several financial companies
relates that one friend called to say, “I need to see you to talk me off
On Monday, Christians
on Wall Street set up special prayer meetings for the week. First came
the special prayer conference calls on Monday and Tuesday nights. Then,
starting Wednesday, extraordinary prayer meetings were scheduled at
Merrill Lynch, Goldman Sachs, JPMorgan Chase, Citigroup, Morgan
Stanley, Deloitte, and elsewhere. Pastors began planning to gather
for a sidewalk prayer meeting outside of the stock exchange.
Some Christians in
New York city hope that God can use the crisis for good. One says, “God
can use this situation as he did in the 1857 Layman’s Prayer Revival
that started on Wall Street to draw people to a fresh recognition of our
absolute dependence on His grace and love.”
The pastor of New
Horizon Church, says, “Honestly, I am praying God will bring healing and
revival.” He recalls how during the 1930s Wall Street crash, Central
Baptist Church on Manhattan housed people who had lost their homes. “The
church should be available in every way for people on Wall Street who
maybe didn’t think much about God before.” - From Christian Today
CONFIDENCE AND TRUST HAVE DRIED UP
markets have seized up and the key global middle-men – American and
banks - have lost everyone’s trust.
(Oct. 11-12, 08) said …
IRRATIONAL INSTITUTIONS’ LACK OF TRUST
CAUSE OF CHAOS IN THE MARKETS
Fear and panic are
powerful emotions. Unfortunately, at the moment the two have combined to
make the financial markets irrational. Each night Wall Street appears
closer to all-out collapse as panic stricken traders dump stocks.
economy will not be protected from the worsening crisis. Forecasts warn
of 300,000 job losses over the next year as the economy plunges into
Australian households, and up to two million small and medium-size
enterprises, are living on a knife-edge and could go under in the face
of high costs of debt, says a report of JPMorgan and Fujitsu.
What began as an
issue among over-stretched US homeowners has developed into the greatest
financial crisis the world has faced since the 1930s.
In the US, home loans
are known as “sub-prime” loans. They can also be called “low-doc” (loans
with low documentation). In an era of easy credit, these loans were
made available to millions of households that could not afford the
The sub-prime crisis
early this year developed into a fully-fledged credit crunch, as banks
and investors fled from any high-risk debt.
There are now
concerns that China is slowing down, and that Chinese steel mills are
reportedly shutting down production. This will affect Australia’s
WARNS OF GLOBAL FINANCIAL MELTDOWN
OCT 11. The head of
the International Monetary Fund said the world is on the brink of
systemic, financial meltdown. His bleak warning came as finance
ministers tried to calm the frenzy in markets that saw share prices
crash by more than 20% last week.
The IMF’s chief
economist added to the gloom by predicting that shares could slump by
another 20% before stabilizing. “At the worst, the governments will need
another few weeks to make the right assessment and the stock exchanges
could fall by another 20%; then there will be a turnaround,” he said.
The IMF said it is
mobilising a “rapid-fire” fund worth several hundred billion dollars to
stop a domino collapse across the developing world.
MARKET REJECT RESCUES
Oct 9, 08. Global
equities markets are in meltdown as emergency efforts to rescue the
world economy show no signs of working and the British government was
forced to launch a massive bailout of major banks …
£600 BILLION BAILOUT ($A 1.23 TRILLION)
Oct 8, 08. Britain
rushed a massive package through to partly nationalize its eight biggest
banks. This move was to shore up confidence in the international banking
system. But even this bold move failed to stop another sharp fall on
world stock markets.
Oct 10. Emerging
market stocks have been tumbling. Earlier expectations that rising stars
such as the BRICs (Brazil, Russia, India and China) were now strong
enough to shake off a US crisis, have been shattered.
The Japanese Prime
Minister said the plunge on the Tokyo stock market (down 10%) was
“beyond our imagination.”
The Australian stock
market had one of its worst days on record (5% down), and the dollar
dropped to 67.5cents against the US dollar.
falling growth in the last two quarters, which means the city is in
The US Dow Jones
Industrial Average was down another 679 points (7.33%), closing at 8579,
in the worst seven-session performance since 1987. It was down from its
2007 peak of above 14,000.
BANKS LOWER INTEREST RATES
Oct 11, 08. In an
attempt to help stem the financial crisis, fourteen central banks around
the world, followed Australia and the US in lowering official interest
rates, including China, South Korea, Taiwan, Hong Kong and a number of
The Bank of Japan did
not cut rates, as already their official rate was only 0.5%. But the
bank continued to release huge funds into the Tokyo money market – some
($US 620 billion)
in 18 days. Yesterday, the first Japanese financial institution,
Yamato Life Insurance, failed as a result of sub-prime exposure.
MEETINGS TO SAVE THE WORLD
Oct 11-12, 08. The
finance chiefs of the powerful
Group of Seven
(US, Germany, Japan, France, Britain, Italy and Canada) met in
Washington and pledged to take all necessary steps to support the
banking system and stave off an economic slump.
We are “united in our
commitment to fulfill our shared responsibility to resolve the current
crisis,” they said as they unveiled a 5-point plan to fight the global
firestorm and restore confidence in the financial system by shoring up
Secretary, Henry Paulson said Washington would start moving “as soon as
we can” to inject capital into troubled banks. At the same time the US
government is planning to invest directly in US banks to prevent them
Under the G7 plan,
the economic powers would seek to ensure that banks can raise capital
from public as well as private sources, in sufficient amounts to
re-establish confidence and permit them to continue lending to
households and businesses.
The seven banks also
committed to taking decisive measures to stop further bank collapses and
unfreeze credit lines to pump more liquidity into the market.
followed by a
meeting – a larger grouping of important nations including India, China
The editorial in
The Weekend Australian (11-12 Oct) declared: “G20s leaders must lift
confidence … Recent turmoil proves there are no guarantees of success in
plunging markets devoid of investor confidence.”
It quoted Franklin D
Roosevelt who said in 1933: “The only thing we have to fear is fear
itself – nameless, unreasoning, unjustified terror which paralyses
needed efforts to convert retreat into advance.”
The G20, following
the G7 lead, pledged to use “all the economic and financial tools to
assure the stability and well functioning of financial markets.”
EUROZONE SUMMIT GIVES NOD TO
HARMONISED BANK RESCUES
Oct 13. An
“unprecedented” extraordinary meeting of eurozone leaders gave a green
light to a set of harmonised moves by member states to boost confidence
in the financial sector and save failing banks.
The UK says it would
inject up to £37 billion of taxpayer money into the
Royal Bank of Scotland
(RBS), Lloyds TSB
SURGE AFTER CRISIS TALKS
After an emergency
Paris summit of the 15 eurozone leaders, major central banks said they
would offer financial institutions an unlimited amount of short-term
dollar loans to help stem the crisis. EU leaders said
no big bank would be
allowed to fail.
The US Federal
Reserve, the European Central Bank, the Swiss National Bank and the Bank
of England unveiled further measures to thaw frozen credit markets. They
said they would provide unlimited dollar funds to financial institutions
via money market auctions.
Reports said that
rescue plan would total about 400 billion euros.
Under a European
plan, members pledged to guarantee loans between banks until the end of
2009, and said they would put money into them by buying preference
“Central banks will
continue to work together and are prepared to take whatever measures are
necessary to provide sufficient liquidity,” the European Central Bank
said in its statement.
AUSTRALIA PACKAGE TO STIMULATE ECONOMY
Oct 14. The Rudd
government has gone on a massive $10.4 billion spending spree in a bid
to spare Australia the worst effects of the global economic crisis.
and first home buyers are the big winners under the government’s
strategy that aims to prevent a deep and prolonged economic slowdown.
Almost half of the
government’s $21.7 billion budget surplus will be pumped back into the
economy, with Prime Minister Kevin Rudd warning the global crisis had
entered a “new, dangerous, and damaging phase” that demanded action.
He suggested the
government might loosen the budget purse strings further, saying the
government was determined to take “whatever action is necessary in the
future” to maintain stability of the Australian financial system and
underpin economic growth. – Yahoo
RESPONSE TO RUDD’S GUARANTEE
Australia’s PM Kevin
Rudd said his government would guarantee all bank deposits, however
large, for the next three years. The move raised confidence as markets
opened, and Australia’s central bank on Monday pumped $2 billion into
the banking system to facilitate improve lending between banks.
Australia’s index ended 5.6% higher.
RISE AS CONFIDENCE RETURNS
OCT. 13. Stock
markets in Asia, Europe and the US began to recover as investors welcome
world leaders’ efforts to shore up banks, and to end the recent
financial turmoil. But two days later …
OF WORLD RECESSION CONTINUE
Oct 15. Growing fears
that the financial crisis will develop into a worldwide recession
prompted a new bloodbath on stock markets.
Stock markets fell in
many countries; in the US by 733.08 points (7.87%); London’s index by
7.16%; in Paris 6.82%, Germany 6.49%, Russia 9%, Australia 5%, and Hong
Kong by 5%.
Stocks across Latin
America also tumbled badly, giving up most of the gains recorded in
spectacular rallies earlier in the week. Brazil’s share market finished
down 11.39%, while Argentine’s slumped 12.14%.
On Tuesday (14th ),
the San Francisco Federal Reserve president Janet Yellen became the
first US central bank official to acknowledge a recession is probably
underway. She said she expected essentially no growth at all in the
third quarter and “an outright contraction” in the fourth quarter.
“The world economy is
still headed into a recession despite the global financial market rescue
effort,” said Carl Weinberg, chief economist at High Frequency
Economics. “The decline will be deep and protracted. It has already
started. Nowhere is the economic house in greater disorder than
Euroland, although some may argue that Japan is a bigger mess.”
announced more measures to overhaul global finance.
- STOCKS REBOUND BUT “IT’S NOT OVER YET!”
There has been no
magic quick-fix of the world’s threatened economy – but a renewal of
confidence will help its survival for some time.
According to the
International Monetary Fund, there is a better than even chance
the global economy will
be in recession by Christmas;
and the world faces its most serious financial shock since the Great
Depression of 1929, because the recession will coincide with the
bursting of housing bubbles in many advanced economies.
Recession means a
slowing down and tightening up of the economy which will bring higher
unemployment and widespread difficulties.
TIMES ARE AHEAD,
THERE ARE PROMISES FOR THOSE WHO REVERENCE
ONE TRUE GOD, AND TRUST IN HIM
In times of financial
distress, the words of the Messiah and the prophets are extremely
pertinent for people who have spent their time and energies in devotion
to becoming rich; and indeed, for all of us.
King Solomon, a very
wealthy man wrote:
“How much better it is to get wisdom than gold! And
to get understanding is to be chosen above silver.” (Proverbs 16:16)
The apostle Paul who
left the “good life” and counted the wealth he could have earned as
rubbish, warns of the love of money and its trap:
“But those who want to get rich fall into temptation
and a trap, and many foolish and harmful desires, which plunge men into
ruin and destruction. For the love of money is a root of all kinds of
evil, and some, by hankering for it, have wandered away from the faith
and pierced themselves with many griefs.
“But you, O man of God, flee from these things and
pursue righteousness, godliness, faith, love, patience,
perseverance, meekness, gentleness. Fight the good fight of
faith, lay hold on eternal life, to which you were also called and have
confessed the good confession in the presence of many witnesses.” (1
But it is the Messiah
who gives the comfort to us in difficult times - times of recession, and
“Do not be anxious for your life, as to
what you will eat or what you will drink; nor for your body as to
what you will wear. Isn’t life more than food, and the body more
“Look at the birds of the air; they do not sow, or
reap, or store away in barns, and yet your heavenly Father feeds
them. Are you not worth much more than they?
“Which of you by being anxious can add a single
hour to his life’s span? And why do you worry about clothes? See how the
lilies of the field grow. They do not labour or spin, yet I tell you
that not even Solomon in all his splendour was dressed like one of
these. If that is how God clothes the grass of the field, which is
here today and tomorrow is thrown into the fire, will He not
much more clothe you, O you of little faith?
“Do not be anxious then, saying, ‘What shall
we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the
Gentiles eagerly seek all these things; and your heavenly Father knows
that you need all these things. But seek first His kingdom and His
righteousness; and all these things will be given to you as well.
“Therefore do not be anxious for tomorrow, for
tomorrow will care for itself. Each day has enough trouble of its
own.” (Matthew 6:25-34)
So this is the
Master’s word to all who look to Him. Again He said:
“Let not your heart be troubled; believe in God,
believe also in Me. In My Father’s House are many dwelling places; if it
were not so, I would have told you, for I am going there to
prepare a place for you. And if I go and prepare a place for you, I will
come again and receive you to Myself, so that you also may be where I
am.” (John 14:1-3)
The believer knows
This world is not our home; We’re just passing through.
And that’s one main
reason why Y’shua the Messiah said:
“Do not store up for yourselves treasures upon
earth, where moth and rust destroy, and where thieves break in and
steal; but store up for yourselves treasures in heaven, where
neither moth nor rust destroys, and where thieves do not break in or
steal; for where your treasure is, there your heart will be also.”
The Master is not
saying that we should not own a home, a car, or a business, and make
provision for ourselves and our families.
But Y’shua warns
about making riches your priority.
The psalmist, David,
who went through very difficult times both before and after he became
king, offers these words of comfort, that were born out of his own
“In You, O YHWH, I have trusted; let me never be
Deliver me in Your righteousness.
Incline Your ear to me, rescue me quickly.
Be a Rock of strength to me, a strong Fortress to
for You are my Rock and my Stronghold;
therefore, for Your Name’s sake lead me and guide me.
Pull me out of the net which they have secretly laid
for You are my Strength.
Into Your hand I commit My spirit.
You have redeemed me, O YHWH, God of truth ….
Oh, how great is
which You have stored up for those who stand in awe
and which You have
prepared for those who trust in You,
in the sight of the sons of men!
You hide them in the secrecy of Your Presence
from the conspiracies of men.”
(Psalm 31:1-5, 19-20)
DOES NOT KNOW GOD
SAVIOUR AND STRONGHOLD
Let me say kindly:
In times likes these, you need a Saviour
In times like these, you need an Anchor,
Be very sure, your anchor holds,
And grasps the solid Rock.
That Rock is Jesus,
Y’shua the Messiah.
My friend, if you
have been worshipping the god of money, the god of business, the god of
pleasure, the god of sport, or any other god instead of the Almighty
One, it is no wonder that you will crack up in anxious times.
You have broken the
“first” and “second” commandments of God.
“No one can serve two
masters; for either he will hate the one and love the other, or he will
be devoted to one and despise the other. You cannot serve God and
A lawyer ask the
“‘Teacher, which is the great commandment in the
“And Y’shua said to him, ‘You shall love YHWH your
God with all your heart, and with all your soul, and with all your mind.
This is the first and great command. And the second is like it, You
shall love your neighbour as yourself. On these two commands hang the
whole Law and the Prophets.” (Matthew 22:36-40)
commandments will not save you, but the commands of God certainly show
us our lost and condemned condition. Sin separates us from the
absolutely Holy One.
“Your iniquities have separated you from your God,
and your sins have hidden His face from you, so that He does
not hear you.” (Isaiah 59:2)
“And more than that, the Word of God says: “The wages
of sin is death.” (Romans 6:23)
You do need a
Saviour, for without a Saviour, it is not merely an economic disaster
that could wipe you out; you’re in for an eternity without God, without
peace and without hope. Without a Saviour, that is certain!
But praise God, there
is salvation available for you. Read the rest of Romans 6:23:
“The wages of sin is death, but the free gift of
God is eternal life in the Messiah, Y’shua our Master.” (Romans
And it is available
in and through the redemptive work of the Messiah – the Christ – God’s
“There is salvation in no one else; for there is no
other name under heaven that has been given among men, by which we must
be saved.” (Acts 4:12)
Why is He the only
Saviour? Because He is the One appointed by the Heavenly Father, and
because He alone gave His life to pay the penalty of the sins of the
“But God demonstrates His own love for us, in that
while we were still sinners, the Messiah died for us.” (Romans 5:8)
“The next day John saw Y’shua coming to him, and
said, ‘Look! The Lamb of God who takes away the sin of the world!’”
“He was wounded - pierced through - for our
transgressions; He was bruised for our iniquities; the punishment
that brought us peace was upon Him, and by His stripes we are healed.”
“For what I received I passed on to you as of first
importance, that the Messiah died for our sins, according to the
Scriptures, and that He was buried, and that He was raised on the
third day according to the Scriptures.” (1 Corinthians 15:3-4)
My unsaved reader,
will you receive Y’shua, Jesus, as your Saviour today? The following
prayer will help you to express faith in the Saviour, and to settle the
matter of your eternal destiny.
Heavenly Father, I come before You today, in the Name of the Lord Jesus,
Y’shua. I come just as I am, a sinner needing salvation. I have read
this message, and I have come to understand that Y’shua is the Anointed
One, who came from Heaven to save sinners like me.
Jesus, feeling my own unworthiness, I thank You for the great sacrifice
You made, when You endured the cross, and paid the penalty of my sins.
believe You are indeed the Messiah, the Saviour, and that You rose from
the dead, ascended to Heaven, and are seated on the Throne of Eternity.
believe in You, Master, and I trust You for salvation. I receive You as
the Way, my Saviour and Master, and by Your grace and strength, I want
to live for You from this day on.
Heavenly Father, thank You for hearing my prayer, and for answering.
Thank You for Your forgiveness, and for Your gift of eternal life. Thank
You for your love. Father, please keep me in these anxious times, and
make me like Your holy, beloved Son.
You Father, for Your salvation. Thank You, in the Name of Y’shua, Jesus
the Messiah, I pray. Amen.
Signed ……………………… date ………
If this is your
decision prayer today, please keep a record of this transaction. We
would be glad to hear from you, at any one of our branch offices (see
addresses or phones inside front cover).
And now I encourage
you to trust your Heavenly Father for the difficult times ahead. Study
the Bible regularly, develop your prayer life (talking to your Heavenly
Master.) Seek fellowship with other believers who know the Saviour, and
tell others about your Saviour.
God bless you and keep you
days ahead, and until the Master returns.
Your brother in the Messiah,