I left you yesterday with a rather strange thought. Our financial world follows a cycle of 8.6 years, or 3140 days.
Do we have such a strong herd instinct that we can be measured that closely?
Well apparently, this is so. I don’t like this idea any better than you do, but I am forced to agree that it’s true – especially since I’ve seen this ‘herd instinct’ in action for myself.
So, what I would like to do today is talk a bit about why this Economic Confidence Model created by Martin Armstrong is actually something to pay close attention to, and why you should be increasing your efforts to prepare for unimaginable disaster.
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The Disaster Cycle Bringing Ezekiel’s Fire
God designed and built us to exist in connection with each other. We learn from each other. We give and receive support. We help act as a brake on some of our worst tendencies. That’s why, when we exist in a proper relationship with Him, God calls us sheep.
Unfortunately, God’s sheep aren’t very good with money:
…for the children of this world are in their generation wiser than the children of light. – Luke 16:8b
So, be careful when going up against the financial wolves of this world.
I find it interesting that wolves also have a strong herd mentality. In fact, the only thing that really separates wolves from sheep is their source of food. But, let’s get back to talking about herd instinct.
The Herd Mentality
We tend to follow the example of others. If Dave-down-the-street makes a killing by investing in widget manufacturers, you’re probably going to do the same, and boast about it, too. In fact, everyone on your street will probably be invested in widgets, before too long.
Also, barring cultural factors, we tend to be very focused on self-preservation. I know that this seems pretty obvious, but think it through with me.
When you see an obvious threat to your financial survival, you try to get your finances out of the way of that threat. If revolution is brewing in Chile, you are going to get out of the Chilean stock market. This also goes when choosing investments closer to home.
If inflation is 5%, and the government is selling a bond at 1%, are you going to buy that bond?
Of course not. You also aren’t going to let your cash sit in one place for too long while it gets eaten away by inflation. You will always – almost always – make the best financial decisions that you can.
So, how does all this apply to Martin Armstrong’s Economic Confidence Model (ECM)?
The Disaster Cycle
Couple self-interest with a herd mentality, and you have a recipe for the flow of money and capital. And yes, money is like water. It flows.
More importantly, it flows away from risk. We’ve had a lot of turmoil in Ukraine recently, so you can bet that money has flowed out of Ukraine to other parts of the world. And, there are a lot of places in the world with turmoil.
Guess who is considered the safest place in the world for money?
The United States of America. And, that’s where the money has been flowing to.
Now, does it just sit there?
It Doesn’t Just Sit There
Of course not. When money arrives at a certain place, people want their money to go to work. This creates an increase in demand for investment assets.
What happens where there is an increase in demand for something?
The price of that something goes up. That’s Economics 101.
Are you starting to understand why the bond markets and stock markets have been able to go up, even though logic would declare otherwise?
That’s right, money is flowing into the United States and into the stock markets, bond markets, and any other markets. Unfortunately, these capital flows have also created a false sense of prosperity in the US and hidden America’s ugly economic situation. It’s too bad that this ugliness cannot be hidden for long.
The Flow Reverses
Once investors begin to realize that the US isn’t as safe as they thought, they will move their money somewhere else. This will create a reduction in the demand for investments.
This brings us to another Economics 101 question:
What happens when the demand for something reduces?
The price of that something falls. And, that means that stock markets, bond markets, real estate markets, etc. fall.
This is a very crude and simple explanation for what the Economic Confidence Model tracks – the ebb and flow of money around the world. And, this model predicts the ebb for the US happening after the Summer of 2015.
It Begins In 2015
Unfortunately, the United States government has captured a massive portion of the US economy, and that weight will magnify the collapse.
It will begin with investment assets, but it will not end there. Banks will fail (and not be rescued). Private deposit accounts will be eliminated. Businesses will collapse, throwing people out of work. Unrest will explode.
How quickly this will happen is anybody’s guess, but rest assured that you do not want to be anywhere near the flashpoints for unrest as the Summer of 2015 ends. Over time, every major city will become a source of massive violence.
This will all happen over the course of the final part of 2015 and through to the middle of the Fall of 2016. Then you will get something of a breather. Things will get a little better – for a year.
When we hit the end of 2017, all Hell will break loose. There will be a complete collapse that the US will not start to recover from until the beginning of 2020.
What will happen in the meantime?
The Collapse Of The American Empire
Remember that without a good economy, you cannot have a good military. And, without a good military, you will not be able to project power beyond your borders.
When America begins to lose her economic power in late 2015, money for weapons, personnel, and spare parts will start to dry up. It won’t happen instantaneously, but it will happen. And, you won’t notice the change immediately.
What you will notice is that more and more fighter aircraft are sitting on runways, instead of in the air. Expensive weapons systems will have their production dates extended. Fewer and fewer tanks will be seen in battlefield maneuvers. Bases overseas will start to close and troops withdrawn to their home bases.
Gog And Magog Fill The Vacuum
This will create a massive power vacuum that Russia and China will be unable to fill themselves. That’s why they will be scrambling to create alliances to fill that power vacuum.
One of those alliances that will be created is described in Ezekiel 38 and 39 – Gog and Magog. That alliance will come down and attack Israel, to capture a strategic linchpin for the Middle East.
And yes, Israel really does sit on the most strategic point in the Middle East.
Via the prophet Ezekiel, God said that He would destroy this army and do something devastating to the rest of the world:
And I will send a fire on Magog, and among them that dwell carelessly in the isles: and they shall know that I am the Lord. – Ezekiel 39:6
For the longest time, I wasn’t completely certain what that was, or how big it would be, until God pointed me here:
Moreover the light of the moon shall be as the light of the sun, and the light of the sun shall be sevenfold, as the light of seven days, in the day that the Lord bindeth up the breach of his people, and healeth the stroke of their wound. – Isaiah 30:26
For some reason, it took a while for me to make a firm connection between those two verses. But, now that I see it… well, I’m completely certain that great devastation is coming, because THAT is a solar flare bigger than anything that the world has ever experienced.
That is the fire Ezekiel was talking about – Ezekiel’s Fire.
Why do I say that there is a connection between Ezekiel 36:6 and Isaiah 30:26?
Connecting Verses For Israel’s Salvation
Well the verse after Ezekiel 39:6 says this:
So will I make my holy name known in the midst of my people Israel; and I will not let them pollute my holy name any more: and the heathen shall know that I am the Lord, the Holy One in Israel. – Ezekiel 39:7
And THAT verse is directly connected to this one:
Then shall ye remember your own evil ways, and your doings that were not good, and shall lothe yourselves in your own sight for your iniquities and for your abominations. – Ezekiel 36:31
That is repentance and salvation. Israel will be saved, but the world will be devastated.
Now, do you understand why Ezekiel 36, 37, 38, and 39 are combined together in a tetrad – The Ezekiel Tetrad?
The coming of Ezekiel’s Fire will leave hundreds of millions, even billions, dead. This is why you MUST pay attention to the coming of Gog and Magog – and the economic collapse that precedes it.
Only those in East Asia will have any true hope of escaping Ezekiel’s Fire.
Are you ready for this?
(That’s a link. Do more than just think about it.)
If you find a flaw in my reasoning, have a question, or wish to add your own viewpoint, leave a comment on the website. Your input is truly welcome.
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