NEWS UPDATE
By
Dr. Stephen Jones: 3-12-2020
Blog Post Date: 3-17-2020
The Dow
The
stock market continues its volatility every day. Monday the Dow dropped 2,013
points, and the next day it was up 1,163. Then Wednesday it dropped another
1,464, and it started out today down more than 2,000 points again before
bouncing back up to minus 1000, and then going right back down 2,352 points—a
record drop. Such extreme volatility suggests major changes coming.
I
believe that in the end, it will be shown that the Fed has lost control of the
economy and ought to be brought back under the authority of the Treasury, where
it should have been all along. Until the creation of money is returned to the
people, rather than to private bankers, our nation will never be truly independent.
Coronavirus
The
coronavirus is reported to be killing hundreds in Iran and in Italy now. Most
of Italy is now on lockdown. The situation threatens to get only worse as
Turkey opens the way for more immigrants to flood into Europe. Greece is now sealing
off that immigration (finally). Italy did so last year. Austria did so even
earlier. The EU policy of welcoming Muslim immigrants has now broken down
completely as the people’s backlash frightened the politicians.
The
pope seems to be the last holdout on the grounds of Christian charity. But with
the pope now sidelined with the coronavirus himself, his arguments have been
marginalized.
President
Trump spoke briefly last evening to let us know that he was suspending or
restricting travel to America from most of the European countries. We are
slowly being quarantined as a nation. Hopefully, when the weather gets warmer,
the coronavirus will die down along with the flu season as a whole.
In
fact, coronavirus is especially vulnerable to heat and the sun itself. They say
that we can kill coronavirus in our throat just by drinking hot drinks. Getting
out in the sun is helpful as well, probably because your skin will then
manufacture Vitamin D, which enhances the immune system. Right now, the most
popular cure for the coronavirus is toilet paper.
Sports
and Politics (But I repeat myself)
It
appears that the professional basketball games will be played without any
audiences except on television. It was announced that the season would be
played in empty stadiums.
Political
rallies are also being cancelled, and the Democratic Party is even considering
cancelling its final political debates between Biden and Sanders. Of course,
the Democratic rallies have only drawn minimal crowds and some were even
cancelled when no one showed up. If rallies are cancelled, it will mostly
affect Donald Trump, whose rallies have drawn tens of thousands with thousands
more outside the arenas.
Globalism
and World Trade
China
is angry with the USA for blaming them for the coronavirus. They are now
threatening to cut off pharmaceuticals to the US, since they produce over 90
percent of what we use. That threat will be as effective as the US policy of
economic sanctions was to Russia a few years ago. Sanctions meant that Russia
was unable to wire payments to other countries, because it all had to go
through the Fed. So Russia simply created its own payments system, rendering
the Fed irrelevant.
Now
China is weaponizing its pharmaceuticals. That was the decision of Mr. Stupid
somewhere up the food chain. The result will be that the pharmaceutical
industry will return to America or move to another country where an educated
population will work for cheap. No corporation will move its operations to
another country that would weaponize its trade.
Apple
Computer is one of the most vulnerable corporations to the current situation. I
hear that their iphones manufacture parts from more than 100 countries. They
have defined globalism. It is not likely that Apple stores will have any new
iphones for sale for the next few years, once its present stock runs out.
There
are rumors, of course (i.e., official reports) that Wuhan is now returning to
normal. New cases of coronavirus have dropped. People are now allowed to return
to work. I am a bit skeptical of these reports. It is one thing to tell people
to go back to work; it is another for the people to actually go back to work.
How many workers have died? How long will it take to do the cleanup on aisle 3?
I suspect that a lot of companies will be short on help for a while.
Even
then, would the ships exporting goods out of China be allowed into this
country? The Port of Long Beach is all but shut down. It used to be packed with
trucks loading up with containers from China, but now eyewitnesses say that
port activity is down to a crawl. It is hard to tell how long this will last.
Oil
War
Last
weekend, the Saudis asked Russia to cut its production of oil in order to
support oil prices worldwide. Russia refused. The Saudis then retaliated by
threatening to increase their production by 2 million barrels a day. “You are
already running at capacity,” the Russians said. “How are you going to increase
production like that?” “We will dip into our reserves,” the Saudis answered. “Ok,
go ahead,” the Russians said.
Oil
prices dropped 30 percent overnight last Monday down to $30/barrel.
The
underlying problem, of course, is the US oil-from-shale production
(“fracking”), which has recently made the US independent of foreign oil imports.
This was one of President Trump’s major strategic policies, because he did not
want to be dependent upon Saudi Arabia or anyone else. His policy virtually
ended the 1972 agreement that launched the petrodollar and doubled oil prices
almost overnight.
Now
there is too much oil production in the world. With the recent disruption of
world trade and tourist travel, less and less oil is being used, and this has
caused an oil glut. Ships are no longer using oil as they sit idly in harbors
around the world. Cruise ships are cancelling cruises. Airlines are shutting
down 30 percent of their flights. This all adds up.
So
we are soon to enjoy cheap gasoline, and prices have already begun to drop.
That is good for consumers, but not so good for oil producers. It is likely
that shale companies will soon be bankrupt, and this will have a huge effect on
North Dakota. The boom-and-bust industry is now ready to go bust.
This,
in turn, could affect any bank that has loaned money to those oil drillers.
Bank
Bailouts?
Watch
for big bailouts, and let us hope that the government does not get so
overwhelmed that it cannot meet the need. One difference from 2008-2009 is that
it appears this time that Trump will focus more on bailing out businesses than
banks, whereas Bush and Obama bailed out the banks. Last night he announced aid
to businesses being affected by the quarantines, such as the cruise ship
tourist industry and the airlines.
I’m
not sure if that will make much difference, because the banking system is
already under great stress in spite of what official statements tell us. The
repo market has been covertly bailing out the banks since last September under
the guise of “loan guarantees.” It started out with about $35 billion in
overnight loans, but each night the banks came back with greater needs, so the
total debt kept increasing.
Then
they started loaning for a week or two instead of just overnight. The total
outstanding loans continued to rise as demand increased. Those guarantees are
now getting near to a trillion dollars, which theoretically will be paid back,
but which in practice will be written off later. When these are written off, it
will officially become another bailout.
So
when you hear of the “strength” of the banks today, know that they are only strong
because they know that they will never really have to pay off the government
loans.
All
signs point to a soon-coming crisis that will change the entire financial
system and put the final nail in the coffin of the Breton Woods agreement of
1944, which made the US dollar the reserve currency of the world. Those who see
what is coming are pre-positioning themselves so that they do not lose their
billions (and even trillions). The average person has less to lose, but what he
has is all he has.
Because
we are at the end of an age, and because the fifth kingdom of Daniel is rising,
I am confident that we will weather the bumps that are inevitable as we shift
from a Babylonian financial system to a Kingdom financial system. (We will
probably see a transitional system before the permanent Kingdom system.)
3-17-2020
I received a report that an
employee of Homeland Security says they are preparing to quarantine the entire
country for one week, and possibly extending that for a longer period. They say
they will shut down all businesses during that time, except, I suppose for the
utility companies and other necessary businesses, fire stations, police, and
national guard, etc.
France went on lockdown
yesterday as well.
It would be prudent to
prepare in case you are stuck at home for a week or two. The big thing, of
course, would be food and water. I don’t anticipate that the water will be
turned off, but if you don’t drink city water, you will need a filter. It may
be too late already to buy bottled water, as stores are already selling out of
water.
Life is full of little
ironies. The price of fuel has dropped dramatically this week, but travel is
restricted!
I went to lunch today at a
nearly empty restaurant. I asked the manager how things were going. He told me
that they were allowing no more than 10 customers into the restaurant at a
time, in accordance with the government decrees.
It’s hard to see how we can
avoid a lot of businesses shutting down and possibly going into bankruptcy. I
don’t see how the zombie banks can weather this storm, especially Deutsche
Bank, which has been on the brink of bankruptcy for a long time. Any big bank
failure would surely have a chain reaction around the world within two weeks.
It is important to watch the news.
The bad news is that
all the markets have been manipulated and “controlled” for more than 40 years.
We have not had a free market economy for a long time. The good news is
that all the markets have been manipulated and “controlled” for more than 40
years. It means that the government can make it go up or down at will, and that
if it goes down, they have a purpose for doing it.
Expect money to be created at
a breathtaking pace. In 2008-2009 that money was given to the Wall Street banks
to bail them out. Some expected to see hyperinflation, but this was avoided
because the money stayed “quarantined” in the banks and big businesses. This
time more of it will be injected into Main Street, but that will probably mean
a higher inflationary rate, perhaps even to the point of hyperinflation.
In other words, everything
will cost more, because money will have less value.
We are now at a major change
in history, comparable to life before and after 911, only much more extensive.
911 took all the fun out of air travel. This quarantine could take the fun out
of life. On the other side of this, life will never again be the same.
Personally, I think that this crisis will be used to set the world free of the
Central Banking System, owned and controlled largely by the Rothschilds and
their fellow cohorts in crime. The captivity is nearing an end.
Nonetheless, there it is likely
that there will be some bumps along the way, and a lot of inconveniences and
even hardships for many people. It is important, then, to prepare where you can
and have faith in God for all things. Many will be having a faith crisis to see
if it is real or just positive thinking from the soul realm.
As for ourselves, I will be
leaving after this blog to pick up Darla from the hospital. She texted me
earlier to let me know that today is the hospital’s last day for non-essential
surgeries. She was one of the last to get it done. I was supposed to join her
in her Occupational Therapy class and her Physical Therapy class, but today
they banned all visitors. So I have to pick her up at the door of the hospital.
Who knows? By tomorrow I may
have to do the weblogs from my home computer.
It is not hard to see the
hand of God in this. Though it was the doctor himself who, on February 17,
scheduled her for surgery on March 16, God was moving silently with perfect
timing. We do not know if the doctors and nurses have any awareness of God’s
sovereign hand in all things. But we do, and that is all that is important.
It is truly good to know by
experience that God has never lost control of a situation. It is even more important
to see His sovereignty work in our personal lives, because then we have
evidence that we are in His hands and in His plan. He works all things together
for good (Romans
8:28).
This is how we walk by faith
and never in fear.
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