The Economy Only Looks Good If Your Eyes Are Closed

The Economy Only Looks Good If Your Eyes Are Closed

There are multiple little anecdotes and ways to say the same thing:

  • People see what they want to see
  • If it looks to good to be true it probably is
  • All that shines is not gold
  • Cheer up…it could get worse

….to name just a few.

But me…I've read The Bible and I'm looking for the signs of the Last Days that it talks about. 

Currently I see many of those sings everywhere I look. 

For example, traditional business metrics do not lie. They can't. 

Number readily available today point to a financial and monetary train-wreck much closer than most people don't want to see…therefore they don't.

Trump is nice to have come along right now but he doesn't represent the end of the war between good and evil. He only represents one battle won within it… just like an uptick in the stock market.

I would like to call my readers' attention to two article by one of my favorite trend analysts, Simon Black, founder of www.sovereignman.com. Simon recently wrote two very good articles that both talk about certain economic realities that only a fool (which there apparently are a lot of) would ignore.

Question…..

Do you know what a P.E.Ratio is?

You've probably heard the term. Here's what Investopedia.com says it is: 

For example, suppose that a company is currently trading at $43 a share and its earnings over the last 12 months were $1.95 per share. The P/E ratio for the stock could then be calculated as 43/1.95, or 22.05.

In this article, Simon ponts out that the P/E Ratio for the S & P Index is currently 26.5, a level only reached three previous times in the US economy, each of which immediately preceded a major financial disaster (the Panic of 1893, the 2000 dot-com crash, and the 2008 financial collapse).

That should make you feel real good, shouldn't it?

You can read the article for more detail and examples. As usual, Simon lays it out very simply and logically and to paraphrase what he says: deep do-do is just around the corner.

It just amazes me that people seem to be blissfully unaware or willfully ignorant of the factors that go into that conclusion. But I know what the Bible says. It says that in the End Time there will be:

  • Wars and rumors of war. (No kidding….Check!)
  • Nation against nation and kingdom against kingdom (No kidding…Check!)
  • People will be lovers of self. (Check!)
  • Good will be called bad and bad will be called good. (Check!)
  • Animals dying everywhere (Check!)
  • Earthquakes everywhere (Check…they're there…you just don't hear about them)!
  • Seas dying. (Check!)
  • A time of great contrast between rich and poor. (No kidding…Check!)
  • Israel blooming but increasingly abandoned by former friends.(Check!)

I'm sure there are a few other conditions I don't recall at the moment but my point is that it won't take much…not much at all… for this whole House of Cards to come tumbling down. Humanity is indeed dancing on the deck of the Titanic, and most of us have no idea what's ahead.

But…moving on…

In Simon's other article, which you can read here, he warns us that, "there are certain anomalies that are too absurd to last", and warns us that far too many US companies must have some of those Superbowl ad chimps making their corporate financing decisions for all the lack of wisdom shown.

To put their financial imbecility in simple terms: How is it possible that major companies like Exxon, Verizon, and many others seemingly can pay out more money in dividends that they have 'free cash flow'?

The answer is easy if you have a mind like those chimps: You just borrow it. They go deeper and deeper into debt.

And why wouldn't they be able to, considering that they get their money from banks which get it from governments that print it like it was so many coupons for a Penny Saver newspaper?

The result is that politicians get to keep their jobs because they can tell the plebeian masses that everything is just fine. Big corporations can tell their stockholders that everything is just fine. And 'We The People' suffer a continually declining standard of living and wonder why we seem to be working harder but not getting ahead and always in debt.

Trump is nice to have on the scene, but he's only one man. Apparently, he's a Christian and a patriot and does believe in the American Ideal. That's nice. He's doing what he should do. But his ultimate home is no more in 'this World' than any other Christian.

The way I see it, our mission right now is simply to get ready for Jesus, keep our head low, save as many unsaved as we can, give as many as we can something to think about when we're gone, and to piss off as many of the 'hard-heads' as we can so that they can get saved the hard way when the time comes.

Meanwhile, I personally keep waiting for a few last pieces of this puzzle to fall into place. I'm not convinced that all our problems are solved and, like the title of this article says, I think the economy only looks good if your eyes are closed.

 

Art Williams
Freelance Copywriter
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