It is the early hours of the 7th of May, 2010 here in Australia as I write. I had been discussing the shaky nature of the stock market with people over the last few days, and then I take a look at the charts while scanning the news. The major American indices have just fallen off a cliff – a nine percent drop (9%) at the time of writing.
UPDATE (By the time I finished this article, the plunge protection team had stepped in and created a massive buying impetus to stop meltdown in the markets – the DOW is now “only” down a few hundred points. We don’t have free markets in the world today. If need be the US Government working together with the FEDERAL RESERVE will buy stock index futures on a massive scale to prevent meltdown).
Astute commentators have known and stated that the massive boost we had in the stock markets over the last 14 months has been due to government and central bank interventions in the markets. You create create out of thin air and pump it into banks to save the world. You let the banks borrow at 0% and earn 3% interest on those borrowings to prop them up, and the markets follow. Governments spend “money” they don’t have to create jobs. But what happens when certain Governments can no longer pay their debts – as has happened with the government of Greece recently? The Markets are once again losing confidence big time, and who knows where it could end. There is talk that the “contagion” could spread across Europe and further. Everything is connected by the global banking network. If someone cannot pay you back a lot of money, you can no longer count on their debt as your asset – and you could end up not being able to pay your creditors – and so it goes. When a Government cannot repay, the political landscape starts to move. It could become a chain reaction.
Economic catastrophes will surely lead to war, tyrrany or both.
As Christians we need to wake up. We need to pray more, speak God’s Word more, and we need to talk about the Lord Jesus Christ PUBLICLY more. We have to care more about the honor of our Lord than our own reputations. We need to tell people of the coming KINGDOM OF GOD – of which only a small taste may be experienced now in this age – but it is important for people to get that taste. The Kingdom of God where we should be putting our hopes. The world system may crumble and become utterly oppressive over the next few years even for us who live in Western Nations. Most of the world has known oppression, tyrrany and injustice for most of its existence. “You will be hated of all nations for My Sake” – said Jesus nearly 2000 years ago.