October 30, 2009
This week, I think I’ll talk about the economy. -- I know -- those of you who are reading this are already wanting to stop because - “Here he goes again about the same stuff! Last week it was California...” But before you ‘turn it off’, let me tell you why I feel this is so important in the scheme of things as it relates  to end-time Bible prophecy. 

As for our nation, I believe the economy will be the catalyst that will bring this once -great society to its knees.
And internationally, it will be no different. Let’s look quickly at Germany in the years just prior to World War II. In the early 1930’s, the country’s money became so worthless that a wheelbarrow full wouldn’t buy a loaf of bread. -- Inflation was off the charts!
This same scenario is shaping up to take place right here in America today. - We are printing money at a frantic pace with nothing to back it up. This will eventually lead to hyper-inflation and a rapid devaluation of the once-mighty dollar. It too will become a near-worthless currency that will lack any buying power. The example of the wheelbarrow may repeat itself.
Then what happened in Germany? The people were so desperate to feed their families that they would do anything to follow anyone that could change their lives for the better. -- So, a leader surfaced with the promises of better times and the people happily followed.  -- His name was Adolph Hitler.
This same scenario will take place on a global level in the very near future. The world will once again be desperate for answers and along will come a charismatic leader that will chant the same tune that was sung some 80 years ago -- and the people will gladly follow.
Does history repeat itself? -- Let’s take a look. The financial crash of 1929 unfolded in much the same way as this current economic situation. Every time investors thought it was safe to get back into the market, they lost more money. - Every time consumers thought it was safe to start spending again, the job market would hit another low. - Businesses couldn’t hold out and went bankrupt by the thousands.
Eight decades later, the same questions are being asked: is the worst really over? - Or is it just a temporary lull in the coming storm?
History is repeating itself, but unfortunately, most people don’t know history.
Ask the average guy on the street today and he’ll tell you that he has heard the crisis is over. After all, just recently, the New York Times trumpeted, “Fed Chief Says Recession is Very Likely Over” (Sept. 15). -- And Newsweek’s Daniel Gross confirmed; “I’m prepared to declare that the recession is really, most probably over.” -- And on and on...
“The good times are back. Stocks will keep rising until 2010,” said money manager, John Dorfman. “On balance, ...I think the evidence favors continued gains.”
Sadly, it is all too familiar.
In 1930, the experts were also proclaiming that the worst was over and good times were ahead. But actually, the worst was only beginning.
In briefly over viewing the Great Depression, the market experienced five “sucker” rallies before realization set in that it would take time to recover. That time turned out to be some ten years. -- Interestingly, during these five false rallies, the professionals invariably would declare that the worst was over.
The great market crash of 1929 swallowed up 48% of the market value in just a few days. In March of this year, the Dow Jones average had crashed by 53% from its highs. - The Dow has since rallied by 50% -- just as it did 79 years ago.  --Where to next?
Also as was witnessed in those times, many professionals today are crying the same chant as they did then. Many of today’s “experts” are claiming the worst is over. - As an example, Citigroup strategist Tobias Levkovich says, “There is little evidence to be cautious.” Continuing, Goldman-Sachs soothsayer Abby Joseph Cohen states, “We do think that a new bull market has begun.”
Oh really?
The stock market is not the only indicator that is in concert with 1930. - According to the most recent data presented by Voxeu.org, an economy policy research center, world industrial production is also in uneasy unison with the 1930’s fall. Both the U.S. and Canada have seen their industrial production fall parallel to the 1929 crisis, as have Germany and Great Britain. Italy, France and Japan are doing much worse.
In the area of trade, our world is also worse off than that of our predecessors. Trade levels have fallen off a cliff. There are, however, some major differences between now and the first Great Depression.
In 1930, America was a producer. During that year the U.S. produced 70%  of the world’s oil, 60% of the world’s wheat and cotton, 50% of copper, 40% of coal. Additionally, America held half of the world’s monetary gold reserves. - Today America is a net consumer, relying on other nations for energy supplies and strategic minerals such as oil and copper to meet demand. 
America also used to be a creditor nation. But it has gone from being the world’s greatest lender nation to its greatest debtor. -- A situation that is getting worse by the hour. - America is spending money like there is no tomorrow. - It has paid out more money combating the current recession than it has on any other event in history, including World War II.
All the money might buy a little time. - It might make the false recovery last a bit longer - but it doesn’t really change anything. -- A problem caused by too much spending and debt cannot be fixed by more of the same.
Soooo, what can or should we do about it? -- For Christians, it is an easy decision. -- If we look to the second chapter of the Book of Acts, verses 42-47, we see an example of what people did for one another. They devoted themselves to one another and to the teachings of their leaders. They also sold possessions as needed to help support one another in times of need. 
I encourage each of you to be involved in a Christian fellowship - one that is prepared to serve each other spiritually and physically in the coming days of difficulty.
And remember, we Christians need have no fear because, “When these things begin to take place, stand up and lift up your heads, because your redemption is drawing near.” (Luke 21:28)
Until next time,
Red