Is Turkey the “Catalyst” that Breaks the World?

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Isaiah 47:11 But evil shall come upon you, which you will not know how to charm away; disaster shall fall upon you, for which you will not be able to atone; and ruin shall come upon you suddenly, of which you know nothing.

Pay Attention!!!

By Michael Douville – I have forecast the Global Slowdown and now that fact has been recognized by virtually everyone. The Globe is slowing so quickly that the World may be entering a period of vulnerability to a sudden downdraft.

To paraphrase the famous question of “how does this happen?”: slowly, then all of a sudden! The economy has been dragged to the edge of a cliff; something just needs to push it over!

https://michaeldouville.com/

The last decade of repressed interest rates has encouraged a Global Debt Binge!

Italy is in Recession, The Netherlands is also. Germany is teetering avoiding a the statistical recession as the 3rdQuarter GDP was -0.2% but the 4thQuarter managed to rise to 0.0%. Revisions later may change the statistics.

The 1stQuarter of 2019 is looking dismal as Global demand for Autos declined and mighty BMW announced it will not make earnings projections. The stock dropped over 6%.  Lower earnings = lower stock prices!

More bad news for Germany as several Economic Indices are severely declining and the European Industrial powerhouse may be heading into further trouble. As Germany’s trading partners suffer, so suffers Germany as the German Economy is certainly Export driven. 

European Interest Rates have been driven into negative returns forcing European Banks to search for better yields in Sovereign and Corporate Debt. Many Spanish, Italian, and German Banks have still not recovered from the Great Financial Crisis and are “woefully unprepared” for the next financial crisis and the currency union is not resilient enough to emerge unscathed from unexpected economic storms” as reported by Christine Legarde.

Which brings us to Turkey! The last decade of repressed interest rates has encouraged a Global Debt Binge! Not only has business and private borrowers indulged beyond their capacity, but Nations across the World have found that it was very easy and expedient to borrow their way to Prosperity!

Turkey is in trouble! The Turkish Economy has officially entered a Recession. Inflation has been unleashed on the population driving prices of everyday goods beyond reach. The Turkish national currency the Lira has lost tremendous value as the Foreign Exchange rate, although improved from the near 7 Lira to the US Dollar, is still vastly devalued at 5.75 Lira to the US Dollar. To make matters worse, the US Dollar is cycling higher. Portending Turmoil!

Debt denominated in US Dollars is now coming due; Billions and Billions of US Dollars are coming due all while the Lira sinks and the Nation of Turkey is gripped by a Recession. Much of this debt is owed to the Banks of Spain, Italy, and Germany;  Banks that are “ill prepared” for Loss!! Banks that are “Systemically Important”!

Could Corporations in Turkey, struggling with Debt Repayment default on their loans? For that matter, could Turkey default on it’s Sovereign Debt? A Turkish default could lead to losses in Systemically Important Banks; losses now, while Europe struggles, would be felt everywhere!!! 

As I have recommended before, build reserves, pay down debt, cut expenses, review vulnerabilities both personal and Business, and discuss with your advisers as to what is Prudent in your Investment Portfolio. If contagion ignites, financing will be restricted; check with your lenders and review loans for refinance and Lines of Credit. Preserve Capital for the huge Opportunities that will surely present themselves. Review rental agreements and maximize tenant quality rather than maximize revenue. Rental cash flows may be the “Life Boat” to sustain the quality of life jeopardized by a Global Recession.

https://michaeldouville.com/

For more detail linking modern day Turkey to ancient Meshech, Tubal, Gomer, and Beth Togarmah, see the link below.

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Paul Lehr

About Paul Lehr

Paul Lehr is a Speech Pathologist and home health provider. The majority of his work focuses on swallowing disorders in neurologically impaired patients. He has been a business owner for the past 20+ years. Paul earned his BS in Speech Pathology and Audiology from Oklahoma State University. His MA was completed in Speech Pathology at Oklahoma State University. When Paul’s son was born prematurely in 2003, there was lots of support from family and friends. Keeping up with phone calls was too much. So he provided e-mails with updates on health and well-being. In time, his son was healthy and came home. The e-mails stopped but Paul was encouraged to keep writing. Three years later, Paul was asked to assist in writing a Sunday school curriculum. The lessons were well received by the local body and on the church website. Again, he was encouraged to keep writing. Next, Paul taught a Sunday School class for junior high and high school students. He would share notes with others from the class he was teaching. In 2010, a young man at a local church encouraged Paul to start a blog. The website focuses on topical studies such as creation, God’s Appointed Holidays and Feasts, the Gospel of Jesus Christ, end times prophecy, ancient Hebrew cultural customs, the Prophet Isaiah, and various topical studies. Three years later, Paul’s 10 year old son told me, “Dad, you need to do updates on how the news is tied to the Bible.” The “Trend Update” was born. In the spring of 2016, a friend and fellow Boy Scout father encouraged Paul to start a YouTube channel. His friend thought it was a natural fit considering the content and subscribers from the website. God’s prophetic words have reached millions in over 190 countries. Isaiah 55:11 So will My word be which goes forth from My mouth; it will not return to Me empty, without accomplishing what I desire, and without succeeding in the matter for which I sent it. That same Boy Scout father would later introduce Paul to the movies of Trey Smith and the God in a Nutshell Project… Guest speak and presenter duties have focused on the topics of the Gospel of Jesus Christ in God’s Appointed Spring Feasts, Mystery Babylon, the antichrist, Ezekiel 38-39, and current events related to Bible prophecy. At this time, Paul would like to encourage each individual to learn about who God is. Because one way or another, we are all eternal. The issue is our destiny. Welcome to PaulthePoke and www.paulthepoke.com
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