I’m not talking about the virus; the virus is an inconvenience compared to what’s coming.
After the 2018 financial crisis, central banks responded by lowering interest rates. With those low rates, corporations have been borrowing more and more money to buy their company’s stock in order to increase the stock price in order to increase the bonuses of the corporate executives. In other words, corporate executives have gotten rich putting the large companies they manage in jeopardy.
Now the revenue for many corporations is going to decrease significantly and many will not be able to service their debts. Most of these debts are held by banks. This is why bank stocks are dropping so much. The central banks will bailout the banks again, but corporate debt is now massive and that’s without even looking at derivatives.
It's not just corporate debt, it is also government debt and consumer debt.
This goes back for decades. Our corporations sent the manufacturing jobs to China where low-paid Chinese workers cannot afford to buy the goods they produce. Because of the loss of all the manufacturing jobs, Americans cannot afford to buy all the consumer goods either, except through government and consumer debt.
This is not sustainable.
In 2008, we reached the end of the line.
The Federal Reserve solved the problem by lowering the interest rate and increasing debt. This didn’t solve anything, it only allowed us to party for a few years more.
Theologically, it is interesting that humanity is about to be brought down by debt. It is also amazing how the central banks, the executives, the media, everyone has watched all these large companies becoming more and more vulnerable, without being able to see the coming collapse. It is inevitable that a shock to the economy would come along. Coronavirus is merely the spark that is about to set off the bomb that our corporate and political leaders have built. It’s clearly a bomb, they’ve been building it for years, but they can’t see it’s a bomb as they keep adding more and more explosive. Government debt, consumer debt, and corporate debt, you can't just keep borrowing more and more money.
This coming catastrophe seems to be punishment from God, as so many smart people cannot see what they should be able to see.