Monday, February 27, 2012
Warnings of a Coming Recession
Several articles within the past week are warning that America is headed toward another recession.
A Moneynews article today reported: “A jump in energy prices is jamming the slow-turning cogs of an economic recovery in the West, but that may be nothing compared to the economic shock an Israeli attack on Iran would cause.” With the threats by Iran to close the Straits of Hormuz, nations relying on Middle East oil are reacting in fear.
Harry Dent, author of the new book The Great Crash Ahead, says another stock market crash is coming due to a bad ending to the global debt bubble. He has pulled back on his earlier prediction of a crash in 2012, as central banks around the world have been flooding markets with money, giving stocks an artificial short-term boost. But a crash is coming in 2013 or 2014, he warns. "This will be a repeat of 2008-09, only bigger, when it finally hits," Dent told USA TODAY.
Robert Prechter, author of Conquer the Crash, is still bearish. He says today's economy has similarities to the Great Depression and warns that 1930s-style deflation is still poised to cause financial havoc.
Mary Bruce of ABC OTUS News warned after a White House statement that, “President Obama's 2013 budget, which will land with a thud on Congress' doorstep Monday, shows the price the country continues to pay for the recession, projecting a deficit of $1.3 trillion for 2012 . . . Under the administration's tax and spending proposals, the deficit would fall to $901 billion next year.”
See the following articles for more details on these warnings:
Obama'sBudget Forecasts $1.3 Trillion Deficit-ABC News/Yahoo News
So, what are we to do about this fine turn of events? Buy gold, get out of the market, and/or pray?
The last is probably our best choice although the others are also good choices. God told His people that, “If my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land” (2 Chronicles 7:14 NIV).
After all, it is the lack of prayer and obedience to God that has gotten us into this fix in the first place!