The world of global economies and financial markets is lately displaying a wide array of deteriorating factors. We can cite hundreds of such indicators. A new environment had been ushered in, this being first heralded by the Global Financial Crisis (GFC) of 2008-09. What was a long period of prosperity prior to that point, in reality had masked underlying deterioration, exacerbated through rapid debt growth. Now the world faces the limitations — paying the piper, so to speak — of such policies.
We continue to hold the view that the GFC continues, only changing its stripes and forms. Now, we are closing in on the point where policymakers are running out of rope with their current unorthodox policies. The era of Quantitative Easing is coming to a close. And, Negative Interest Rate Policies (NIRP) are also nearing their end.
Some of the biggest banks in the world — these also considered to be Globally Significant Financial Institutions (GSFI) according to the Financial Stability Forum (FSF) — are starting to wobble. Various European banks are starting to sink due to the low, low interest rates and high financial market volatility, notably one of the biggest banks in the world, Deutsch Bank.
What next? Here we take a somewhat different perspective than most.
We recognize the many dangerous developments. Our training in economic theory and long experience with global financial markets unavoidably compels the recognition of such trends. There are obvious trends for all to see. To no surprise, therefore, there are many gloomy forecasters, analysts and financial advisers. Their newsletters and public statements call for imminent collapse and doom.
Their conclusions are not wrong. It would be difficult to contest that an ultimate financial collapse lies ahead somewhere in the future. However, there is one important factor that many may be overlooking. Alongside the rise in evil and systemic deterioration goes a rise in perversion, rebelliousness and complicity.
These forces of human nature are not static. They, too, can increase … and far beyond what we may imagine. The behavioural biases of mankind come to play here; among these are self-interest, greed, perversion and the irrepressible will to believe what may seem pleasing … what one may fancifully wish.
In a world of relativism, godlessness, unbiblical morality and a denial that one might reap what one has sown in accordance with the laws that God has set, anything goes. Mankind comes to the point where they choose to believe fable and fantasy. Policymakers in environments such as we now face can take wide license to create a pleasing financial delusion.
All the elites, the policymakers, investors and future retirees trying to build up future income sources are in willing collusion. They are willing to grasp at straws. In doing so, they continue to encounter disappointment. It is a situation similar to what the Israelites encountered.
Not to be forgotten is that God himself says that he will actually give mankind over to their perversions at one point (Romans 1:24). Showing themselves in rebellion and wanting to break their bonds from God (Psalm 2:3), he allows them to pursue extreme delusion. “They perish because they refused to love the truth and so be saved. For this reason God sends them a powerful delusion so that they will believe the lie and so that all will be condemned who have not believed the truth but have delighted in wickedness” (Thessalonians 2:10-12).
Just how perverse can mankind become? This is an impossible question. Suffice it to say that far worse extremes and falsehoods can yet unfold. In the case of today’s policymakers and leaders, they may yet have plenty of tricks and lies that may serve to perpetuate much worse perversions for years to come. Then again, perhaps not. We simply cannot know. There is no solid foundation.
This reality that we have described has frustrated many (including us) who have warned of the perilous trends underway. Yet, for decades the deteriorations continue and the little boy who cried wolf risks no longer being heeded.
We expect continuing crisis, and high financial volatility. At the same time, we must also expect new interventions and schemes to levitate financial asset values.
Given the present world where there are no boundary stones nor reliable values, there still is one place of safe deposit: “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal” (Matthew 6:19-20).
About the Author: Wilfred J. Hahn is a global economist/strategist. Formerly a top-ranked global analyst, research director for a major Wall Street investment bank, and head of Canada’s largest global investment operation, his writings focus on the endtime roles of money, economics and globalization. He has been quoted around the world and his writings reproduced in numerous other publications and languages. His 2002 book The Endtime Money Snare: How to live free accurately anticipated and prepared its readers for the Global Financial Crisis. His newest book, Global Financial Apocalypse Prophesied: Preserving true riches in an age of deception and trouble, looks further into the future.