Economic Red Lights, And The FDIC Said What?

As usual, the headlines are flashing future economic doom!

What else is new?

I don’t know about you, but the last few years have been economic doom for a lot of people. I mean, have you seen the price of fuel, milk, bread, and eggs? Ohh, don’t get me started on egg prices!

So we already have an economic calamity, it’s mainly being felt by the lower and middle classes.

Again, what else is new?

If you want someone to blame, you can thank the government (as usual) for years of money printing, deficit spending, COVID spending, low-interest rates, and all those free checks they gave out.

All of those policies contributed to the record inflation we are living with.

We all get that, I think…

Nevertheless, the chickens are finally coming home to roost!

However, what’s this mean for the global economy?

It’s not just our nation suffering from inflation, but the entire world. You see, other nations have been printing money and giving it away just like we have. Now, all the bigshot economists and CEOs are surprised, and now they’re talking about, “recession.”

Joy!

Technically, we hit one back in Q1 and Q2 of 2022, but we’re not out of the woods. So things are going to get dicey looking forward, and they already are. We’re going to get into that, and I also want to bring something to your attention about the FDIC.

Bigshots On Economic Outlook

I don’t want to spend too much time on it, but let’s cover some of the latest doomish headlines.

There you have it, all the global bigshots are saying, ‘We’re headed for a global recession.’

Here’s the best part!

The Director of the IMF is Kristalina Georgieva.

You remember her, right?

Back in 2020-2021, she told governments to,

Please spend. Spend as much as you can and then spend a little bit more.”

The global economic policy became, just print money, and then give it away in order to stimulate the economy that was destroyed due to COVID lockdowns.

I’ll never forget that one!

That’s right, in her infinite wisdom, she wanted to flood the markets with cash to save us all. It was almost like she had no clue what that would cause. Within just a year’s time, she found out, as inflation set in.

By May of 2022, Georgieva’s tune changed!

She said,

I think we are not paying sufficient attention to the law of unintended consequences. We make decisions with an objective in mind and rarely think through what may happen that is not our objective. And then we wrestle with the impact of it.

Take any decision that is a massive decision, like the decision that we need to spend to support the economy. At that time, we did recognize that maybe too much money in circulation and too few goods, but didn’t really quite think through the consequence in a way that upfront would have informed better what we do.

We act sometimes like eight years old playing soccer. Here is the ball, we are all at the ball. And we don’t cover the rest of the field.

Prophecy: Children Have Become Our Leaders

Amazing!

She admitted,

They make decisions without thinking about how they will affect us in the future.

Who does that?

The fact of the matter is, more often than not, these people have no clue. They fly by the seat of their pants, they cause our problems, and then they provide a solution to the problem they created. These problems always affect you and I, but not them.

It’s enough to make you sick.

Then, we have this next headline…

Hey, there goes captain obvious!

I mean, they always tell you these things after the fact. Before the fact, they’re busy telling you how there is no bubble, and the good times will keep keeping on. It’s always a lie. Nothing goes up or down in a straight line, and nothing goes up forever.

Again, this isn’t just a U.S. problem, but a global problem.

So expect things to keep getting ugly, globally.

The moral of the story is, interest rates are now going up to absorb all that free cash that was printed. Raising rates is causing much of the market havoc that we now see. Honestly, the rates should have never been as low as they were. That was a major contributing factor to the record house prices.

Then, people we’re leveraging everything, then throwing it at crypto. Now that bubble popped.

More doom?

Fox is now starting to say, “Depression.”

All right, enough of that, now let’s move on to the FDIC…

The FDIC Said What?

About a month ago, some video clips from an FDIC meeting caught my attention. It’s doom stuff. In the meeting, the FDIC officials said things like,

  • “You’ve got to think of the unintended consequences of taking a public that has more full faith and confidence in the banking system than maybe the people in this room do.”
  • “We want them to have the full faith and confidence in the banking system. They know FDIC insurance is there. They know what works. They put their money in, they’re going to get their money out.”
  • “People need to understand they can get bailed in, but you don’t want a huge run on the institutions. But there are going to be. And it could be an early warning signal to the FDIC and primary regulators when these things happen.”

“Bailed in” means, your money becomes an asset of the bank to keep it from failing.

Like I said, scary stuff.

However, as Christians, what’s the first thing we do when we read an ambiguous verse in the Bible?

We pause, then we read a few verses before and after the verse in question. Some of us even read the entire chapter.

Why?

To gain context.

So that’s what I did with this video.

I found the full video, publically available from the FDIC, and listened to the context of the discussion. The context is found around the 1:19:00 mark, yep, before the really scary quotes that I shared with you.

There you will find the lady laying out the context, which concerns “Title 2,” which is a “resolution strategy” for the FDIC should disaster strike. The lady states, they have been working on this policy for 10 years! So this isn’t some new development.

Her concern was, how do we make more of this information available to the public without scaring the people? The whole context of the discussion is putting information out there to be transparent, and to improve confidence in Title 2, without scaring people to death.

Instantly, all the fear and doom fled from my mind.

As we all know, the FDIC exists to insure the money in your bank account up to $250,000. Of course, if there was ever a catastrophic market event, where all the banks collapsed, you would lose your money. The FDIC is an “Insurance Corporation.”

It should be obvious, no insurance company has enough money to cover everyone.

It’s an odds game.

So yes, there are risks to everything in life, and this is one of them, though it’s low. I still remember back in 2008 when banks were closing left and right. The FDIC took over the banks on a Friday, and ensured the people had their money available to them by Monday.

I’m bringing this up as we face financial uncertainty. Times are going to keep throwing ugly surprises at us, and I want to help you navigate through them.

Whenever uncertainty happens, sharks always start circling. Much of this FDIC fear has been promoted by those who have a vested interest in silver, gold, and crypto. So they have skin in the game and can benefit if they force enough people to move from cash to other assets.

It’s another con.

I’m not telling you banks are safe or unsafe, I’m just telling you people will always try to take advantage of you. It’s the state of a Godless world, but we navigate it by remaining calm and always digging for the facts.

Keep looking up, the sun is still shining!

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