Stock markets opening down in parts of the world: Financial volatilty expected for 2016

Trading floor of the New York Stock Exchange

Stock markets in various places have already started to report losses for the year on 2016’s first trading day:

January 4, 2016

A 7 percent drop in Chinese shares on Monday halted trading in Shanghai and dragged down stock markets around the world, as investors began 2016 with fresh worries over global growth and sought the safety of bonds and gold.

Rising tensions in the Middle East added to the gloom. Oil prices soared more than a dollar to $38.50 before giving back some of those gains because of the concern over China, which looks set to remain a drag on the global economy. …

The pan-European FTSEurofirst 300 index fell 2.5 percent and the euro zone’s blue-chip Euro STOXX 50 index declined by 2.9 percent. Germany’s DAX dropped 3.7 percent. U.S. stock futures were down 1.7 percent.

The losses in Europe and the United States mirrored the move in MSCI’s broadest index of Asia-Pacific shares outside Japan, which posted its biggest loss since Aug. 24 last year.

“(Equity) investors are not going to like the start of this year, particularly when you have news that trading was halted in China due to a market sell-off,” said Naeem Aslam, chief market analyst at AvaTrade. http://www.reuters.com/article/us-global-markets-idUSKBN0UI01E20160104

January 4, 2016

Shares on Wall Street plunged in the first minutes of trading Monday, following sharp losses in China and Europe.

U.S. stocks started 2016 with their biggest intra-day selloff since September 2015. The Dow dropped 389 points, or 2.2 percent, to 17,036 at 10:11 a.m. ET. The S&P 500 shed 2.1 percent, or 44 points to 2,000 and the Nasdaq fell 2.8 percent, or 139 points to 4,869. http://www.cbsnews.com/news/us-stocks-plunge-in-first-morning-of-2016-trading/

Of course, stock markets often rise as well. As I wrote last month, it was likely we would see financial volatility in 2016 (see M&M: Expect financial volatility in 2016). I mentioned several factors in that article.

But is the worst yet to come for Wall Street?

Absolutely yes!

In theory, interest rates should be set by the market, but the USA does not care for that. Since it is the world’s de facto reserve currency, the USA has found ways to control rates and keep them low. For a time, the Federal Reserve (which is not federal nor does it have any real reserves) pumped 4.5 trillion counterfeit dollars in the market through a program called “quantitative easing’ (the program officially ended on October 29, 2014). The Federal Reserve raised interest rates last month for the first time in nearly a decade (see Federal Reserve votes to raise interest rates; M&M discounts idea of hyperinflation, plus claims Europe to be torn to pieces by 2020), and that will affect the attractiveness of stocks as an investment.

The federal government of the USA has been adding to the federal deficits by spending and borrowing more than it takes in via taxes–and this practice has not stopped. These steps, along with manipulating what interest rates it pays banks, has sometimes propped up the USA stock market and impacted interest rates, but eventually reality and truth matters. Increased interest rates increase the federal debt which is starting to spiral out of control.

Over in Wall Street, practices related to hedge funds and derivatives also manipulate the market and seem to be contributing to the time of total collapse of the markets in the USA. Notice the following:

The world’s scariest story: trading in derivatives

Bad as these scandals are and vast as the money involved in them is by any normal standard, they are mere blips on the screen, compared to the risk that is still staring us in the face: the lack of transparency in derivative trading that now totals in notional amount more than $700 trillion. That is more than ten times the size of the entire world economy. Yet incredibly, we have little information about it or its implications for the financial strength of any of the big banks.

Moreover the derivatives market is steadily growing. “The total notional value, or face value, of the global derivatives market when the housing bubble popped in 2007 stood at around $500 trillion… The Over-The-Counter derivatives market alone had grown to a notional value of at least $648 trillion as of the end of 2011… the market is likely worth closer to $707 trillion and perhaps more,” writes analyst Jenny Walsh in The Paper Boat.

“The market has grown so unfathomably vast, the global economy is at risk of massive damage should even a small percentage of contracts go sour. Its size and potential influence are difficult just to comprehend, let alone assess.”

The bulk of this derivative trading is conducted by the big banks. Bankers generally assume that the likely risk of gain or loss on derivatives is much smaller than their “notional amount.” Wells Fargo for instance says the concept “is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments” and “many of its derivatives offset each other”.

However as we learned in 2008, it is possible to lose a large portion of the “notional amount” of a derivatives trade if the bet goes terribly wrong, particularly if the bet is linked to other bets, resulting in losses by other organizations occurring at the same time. The ripple effects can be massive and unpredictable.

Banks don’t tell investors how much of the “notional amount” that they could lose in a worst-case scenario, nor are they required to. http://www.forbes.com/sites/stevedenning/2013/01/08/five-years-after-the-financial-meltdown-the-water-is-still-full-of-big-sharks/

There are many types of financial transactions that have little, if any, true value and are putting the markets and the US dollar at risk.

Derivatives can cause massive financial volatility and can affect things like stock markets.

Because the US dollar is not truly backed by anything tangible (other than a semi-agreement with Saudi Arabia to price oil in dollars), the excess production of them via debt/quantitative easing dilutes the value it. This is a modern form of ‘dross’ (a coin that is worth less than it appears because it is not pure silver or gold despite its outward appearance).

Governments have devalued their currencies by making their coins ‘dross’ and this has led to various problems throughout history.

This diluting of the value of coinage/currency is condemned in the Bible.

4 Take away the dross from silver (Proverbs 25:4a).

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

18 “Son of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: ‘Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.’” (Ezekiel 22:18-22)

Although the Bible warns against using dross and diluting the money supply, modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA. Economic problems in Europe may well propel the rise of the Beast power that the Bible warns about.

Various ones have indicated that a major collapse will take place this year. A true collapse, however, will not occur until later. But one will come. Get your spiritual life in order so that you will be in a better position to face what will be coming.

Because many do not wish to believe the truth, the economy of the USA looks better that it really is. Yet it is because of mistrust and issues with other governments, that the USA and its dollar will continue to enjoy dominance internationally for longer.

But the time will come when that will end.

The Bible teaches the following:

13 “Behold, therefore, I beat My fists at the dishonest profit which you have made, and at the bloodshed which has been in your midst. 14 Can your heart endure, or can your hands remain strong, in the days when I shall deal with you? I, the Lord, have spoken, and will do it. 15 I will scatter you among the nations, disperse you throughout the countries, and remove your filthiness completely from you. 16 You shall defile yourself in the sight of the nations; then you shall know that I am the Lord. (Ezekiel 22:13-16)

The dishonest profits that the USA has generated for years have to do with how it is pumping more and more un-backed currency into the international markets and living off of this. Increasing federal deficits with no real intent to repay, programs like quantitative easing, and market derivatives are ‘dishonest profits.’ As far as filthiness goes, abortion, selling baby parts, pornography, and increased acceptance of the homosexual agenda would seem to qualify. The prophecies in Ezekiel 22 will have some fulfillment related to the USA.

The worst is yet to come, but for the USA it will not be for at least a few more years (see When Will the Great Tribulation Begin? 2016, 2017, or 2018?).

The only real solution to the financial and other problems in the USA is either national repentance, which will not happen, or the Kingdom of God which (after the Great Tribulation and the Day of the Lord) will.

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.
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?
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? 2021 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.