Inevitable stock market crash, says Mark Faber. Is this possible or even probable? His forecast:
Mr. Faber isn’t a prophet. He’s a student of history. His basic message is simply this: The U.S. is overdue for an economic correction.
I point to biblical economics and to a secular Russian economist’s research to highlight the 7-year and 50-year natural cycles of economic booms and busts.
First, the biblical model for economics.
Deuteronomy chapter 15 addresses cancellation of debts every seven years. Federal law provides Chapter 13 bankruptcy protection to cancel personal debts through a 7-year cycle.
Leviticus 25 provides for the 50th year of Jubilee at the end of seven sevens.
The seventh year of each cycle is called the Shemitah and you can read books and listen to podcasts that tell you all about this phenomenon.
Russian economist Nikolai Kondratieff studied history and the behavior of markets. The Russian leadership wanted him to prove the U.S. could not survive the Great Depression. Kondratieff’s research proved otherwise, so Stalin executed the messenger in 1938., but he couldn’t silence the message.
Economic downturns are painful. And necessary. And predictable.
In Texas, public school systems will be the hardest hit institutions due to dependencies on property tax revenue and extreme public indebtedness. Here in Rockwall, 65% of our property taxes go to the public school system.
The Appraisal Board can appraise all they wish, but fact of the matter is this: if a property owner can’t pay his or her taxes, that government entity will run short of cash quickly.
In this coming economic cycle, many governments will break down due to insolvency, including state governments.
How do you prepare for the inevitable?
- First and foremost, have faith in God. Read and study the Bible.
- Second, Learn from history as does Mr. Faber.
- Third, get out of debt as fast as you can and have ready cash on hand.
- Recognize how economic cycles are pretty much like day and night. A sunrise follows every sunset. Instead of losing hope, look forward expectantly to the next economic ‘sunrise’.
The Bible points to specific strategies that can help you.
- I Timothy 2:1-2 Pray for leaders.
- Jeremiah 29:7 Seek the peace and prosperity of your community.
- 2 Chronicles 7:14 Submit to God. Seek forgiveness of sins. Ask for supernatural intervention.
What’s my plan? I will follow my own advice.