Royal Bank of Scotland claims 2016 will financially be ‘catastrophic’

Royal Bank of Scotland (Photo by Chandres)

Comments from the Royal Bank of Scotland have gotten attention in different parts of the world:

January 12, 2016

CNN reported that the Royal Bank of Scotland is warning that 2016 will be a “cataclysmic year” and investors should take immediate action.

Do not wait. Do not pass go, the bank warns.

“Sell everything except high quality bonds,” Andrew Roberts, told the news agency. “We think investors should be afraid.”

He pointed to the red flags for his bank – falling oil prices, an unstable China, shrinking world trade, rising debt, weak corporate loans and deflation.

In fact, in the American stock market alone, $1 trillion has vanished already in the first few days of January.

“To put that stunning figure in context,” wrote Matt Egan at CNN Money, “it’s like wiping out the combined value of the following tech giants: Google ($508 billion), Facebook ($281 billion), Intel ($154 billion), Netflix ($50 billion) and Yahoo ($29 billion).”

He continued, “No wonder there are lots of signs of rising fear on Wall Street. CNNMoney’s Fear & Greed Index is now flashing ‘extreme fear,’ a dramatic reversal from ‘neutral’ just two weeks ago.” http://www.wnd.com/2016/01/sell-everything-2016-a-cataclysmic-year-warns-rbs/#kSIm8lvzpUq6hDdk.99

January 12, 2016

Warnings by the Royal Bank of Scotland (RBS) that financial markets are in for a “cataclysmic year” are overstated, according to some New Zealand investment specialists.

The bank has suggested clients sell everything other than high quality bonds.

Mark Lister, head of private wealth research at Craigs Investment Partners, concurred with some of the RBS’ concerns, but said the world was not on the brink of another Global Financial Crisis.

“I do agree with a lot of the themes that they are talking about,” he said.

“We agree that deflation is a real risk and that commodities prices will languish for a long time, and we definitely think that it’s time for caution,” he said.

“Like RBS, we believe that high quality bonds are a good place to be at the moment, but we are not saying sell everything,” he said.

Bernard Doyle, chief investment strategist at JB Were, said RBS’s concerns were overstated. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11572807

While I am not a financial adviser, the idea of selling everything except bonds seems a bit extreme. Especially, because bond prices tend to drop as interest rates rise. Interest rates, according to the US Federal Reserve, are expected to rise in 2016 (see Federal Reserve votes to raise interest rates; M&M discounts idea of hyperinflation, plus claims Europe to be torn to pieces by 2020).

But there are several potentially ‘catastrophic’ factors to consider.

First is the fact that the debt of the USA keeps going up. The various budget deals in 2015 have assured that. Since the government of the USA has to pay interest on this rising debt, and interest rates are supposed to be going up, this will further increase debt and one day this will lead to the end of the USA according to biblical prophecy (e.g. Habakkuk 2:6-8).

Second is the fact that between increased US debt, legal counterfeiting like the ‘quantitative easing’ programs that the USA, international terrorist worries, and low interest rates, the USA stock market has been artificially propped up for years. Thus, drops could be seen. But as I have written before, stock markets rise and fall.

Third is the fact that 2016 is a presidential election year in the USA. This can also contribute to volatility, especially as the two leading candidates will undoubtedly take shots against each other as they will attempt to paint a picture that the USA will be worse off if the other wins. The currently two leading candidates in the national polls have already done this.

Fourth is the expected likelihood of more terrorism. In addition to the USA and its Anglo-Saxon descended allies, Germany, France, and other parts of Europe are concerned and will take steps. Terrorist steps, as well as terrorism itself, can negatively affect the economy. The Bible prophesies terrorism, and while it does not identify a specific year for terrorism to hit, various prophecies tie terrorism and lack of God’s protection to turning away from God’s laws (see Why Terrorism? Is Terrorism Prophesied?).

Fifth is the fact that Europe, China, and other parts of the world are attempting to figure out how to come out on top in a world that will no longer be dominated by the USA. China wants to rise up, but will have issues (see also Asia in Prophecy). Europe is working on developing technology and financial matters to be ready to do this (see European Technology and the Beast of Revelation), and while it will have issues ((cf. Daniel 2:41-43), for a time it will succeed (cf. Revelation 13,17, &18).

The change from a world dominated by Great Britain to the USA was less dramatic than the change that will occur from a USA-dominated world to the final time of the Gentiles (see When Will the Great Tribulation Begin? 2016, 2017, or 2018?).

While this will NOT completely happen in 2016, steps towards this will occur in 2016. As far as the timing of the Great Tribulation, a short video is available to watch titled Can the Great Tribulation Start in 2016?.

Although I am not at all endorsing the Royal Bank of Scotland’s ‘solution’ for the ‘catastrophic year’ it expects, I do expect volatility and suspect we will see various ‘catastrophies’ in 2016–“but the end is not yet” (Matthew 24:6).

Of course, the only real solution to the financial and other problems facing the world is either massive repentance, which will not happen, or the Kingdom of God which (after the Great Tribulation and the Day of the Lord) will.

As far as investments go, Jesus said:

19 “Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; 20 but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also. (Matthew 6:19-21)

As far 2016 goes, let’s close with Jesus’ words:

32 “But of that day and hour no one knows, not even the angels in heaven, nor the Son, but only the Father. 33 Take heed, watch and pray; for you do not know when the time is. 34 It is like a man going to a far country, who left his house and gave authority to his servants, and to each his work, and commanded the doorkeeper to watch. 35 Watch therefore, for you do not know when the master of the house is coming — in the evening, at midnight, at the crowing of the rooster, or in the morning — 36 lest, coming suddenly, he find you sleeping. 37 And what I say to you, I say to all: Watch!” (Mark 13:32-37)

34 “But take heed to yourselves, lest your hearts be weighed down with carousing, drunkenness, and cares of this life, and that Day come on you unexpectedly. 35 For it will come as a snare on all those who dwell on the face of the whole earth. 36 Watch therefore, and pray always that you may be counted worthy to escape all these things that will come to pass, and to stand before the Son of Man.” (Luke 21:34-36)

Watch and pray and get your own spiritual life in order as we see much happening around the world.

Some items of possibly related interest may include:

Collapse of the Euro and Dollar? War in 2020?. Larry Edelson of Money and Markets described aspects of current economic difficulties and explained why he felt matters would get a lot worse. He said war, like World War III, could break out as early as 2020. What did he call the ‘granddaddy of all cycles”? Will matters go as he said? What does the Bible teach? Dr. Thiel provides biblical insights that secular sources often miss. This is a video.
Why Terrorism? Is Terrorism Prophesied? What does the Bible teach? Which nations may be affected? Here is a link to a related sermon: Terrorism, Christianity, and Islam.
Project Prophecy: Economic Collapse Starting in 2015? Jim Rickards once worked for the CIA and also was once part of a a USA government program called called ‘Project Prophecy.’ He has a video were he claims that starting in 2015, the USA may have economic collapse resulting in a 25-Year Great Depression. He mainly cites debt figures and claims advises alternatives to the USA dollar which he says will collapse? What did Rand Paul state? Can the USA dollar collapse?
Market Collapse then New World Order in 2015? A long-time financial adviser named Harvey Organ claims that claims that because of insufficient gold in the central banks of USA and UK, that Shanghai would bring about exposing this and that this would lead to a massive, overnight, rise in the price of gold and silver, diminished value of their currencies. He stated a market collapse would occur before the end of 2014, that the petroyuan will replace the petrodollar, and that a Chinese led New World Order would be in place for 2015. Is this possible in 2016? Where does the leader of the ‘New World Order’ come from? What does the Bible teach?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled: Can You Prove that the Beast to Come is European?
European Technology and the Beast of Revelation Will the coming European Beast power would use and develop technology that will result in the taking over of the USA and its Anglo-Saxon allies? Is this possible? What does the Bible teach? Here is a related YouTube video: Military Technology and the Beast of Revelation.
When Will the Great Tribulation Begin? 2016, 2017, or 2018? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede comenzar la Gran Tribulación en 2016 o 2017? ¿Es el Tiempo de los Gentiles? You can also see the English language sermon video: The Great Tribulation from the Mount of Olives. A shorter video is: Can the Great Tribulation Start in 2016?
Must the Ten Kings of Revelation 17:12 Rule over Ten Currently Existing Nations? Some claim that these passages refer to a gathering of 10 currently existing nations together, while one group teaches that this is referring to 11 nations getting together. Is that what Revelation 17:12-13 refers to? The ramifications of misunderstanding this are enormous. A related sermon is titled Ten Kings of Revelation and the Great Tribulation.
World War III: Steps in Progress Are there surprising actions going on now that are leading to WWIII? Might a nuclear attack be expected? What about WWIV? Does the Bible promise protection to all or only some Christians? How can you be part of those that will be protected? A related video would be Is World War III About to Begin? Can You Escape?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2024 or 20xx? There is also a video titled The 6000 Year Plan: Is the end of humanity’s reign almost up?
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel. Here is a link to a version of this article in Spanish: ¿Prueban los caracteres chinos la exactitud de la Biblia?
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon? A YouTube video of interest may be Is China THE Threat to the United States of America?
The Eurasian Union, the Kings of the East, and Bible Prophecy Is there a Eurasian union that will be formed? Is one being formed right now? Are any leaders working on that in the 21st century? Does the Bible teach that there will be a Eurasian union? If some type of Eurasian union is formed, who might it benefit and who will it destroy? A related video would be Is The Eurasian Union Rising?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be Barack Obama and the State of the Apocalypse.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
When You Sin: Do You Really Repent? This is an article by Charles F. Hunting. A related sermon is Confess to God and truly repent.
The Gospel of the Kingdom of God was the Emphasis of Jesus and the Early Church Did you know that? Do you even know what the gospel of the kingdom is all about? True religion should be based upon the true gospel.
Did The Early Church Teach Millenarianism? Was the millennium (sometimes called chiliasm) taught by early Christians? Who condemned it? Will Jesus literally reign for 1000 years on the earth? Is this time near? A related sermon is titled The Millennium.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.
Hillary Clinton, Prophecy, and the Destruction of the United States This is a 188 page book for people truly interested in prophecies related to Hillary Clinton and the United States, including learning about many that have already been fulfilled and those that will be fulfilled in the future. It also discusses Republicans. The physical book can be purchased at Amazon from the following link: Hillary Clinton, Prophecy, and the Destruction of the United States: Is Hillary Clinton Fulfilling Biblical, Islamic Catholic, Hopi, and other America-Related Prophecies? $11.99.
Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon Kindle edition. This electronic version of the 188 page print edition is available for only US$3.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Hillary Clinton, Prophecy, and the Destruction of the United States-Amazon Kindle edition.