The recent stock market drops that began on Wednesday August 19th, the 4th of Elul in the Biblical calendar, have shaken many investors. Two main questions that are bringing great fear into the market now are:
- How much damage will a slowing China have on the world’s overall economy in the months ahead?
- Is the six-year-long stock market rally in the USA finally over?
Questions like these don’t get answered in one day. While it is extremely tempting to react to something that just happened, waiting a month to put each event into a larger context can certainly make a big difference in understanding.
Here are the drops of the past week:
– 1% drop on Wednesday, August 19
– 2% drop on Thursday, August 20
– 3% drop on Friday, August 21
– 4% drop on Monday, August 24
– 1% drop on Tuesday, August 25
One thing we do know for sure—these drops in the US stock market are not very large, historically speaking. (The best way to judge a drop is its percentage, not the exact number of points any index falls).
Compare that to 1929. When the Great Depression began, the market dropped 12% on Black Monday followed by another 13% on Black Tuesday. Now those drops are what we call impressive—or perhaps better stated, depressive.
Putting aside the numbers, we see a larger picture in play here which aligns very well with a perspective on the seven year cycle, called the Shemitah cycle, that we cover in great detail in our new book, Israel FIRST!
The country that is precipitating these drops thanks to its slowing economy is China. One of the ideas we propose in Israel FIRST! is that Western Civilization in general—and the USA in particular—have overly bought into the idea that the economic world revolves around us. We propose instead that God has a plan to shift the world’s economic perspective away from US and towards an economic model of His own design: the Shemitah calendar that he gave to Israel.
Already in June, we noticed that China was the first country whose markets began falling, not the United States. China’s market downturn began in the last third of the Shemitah year, and its further downturn—now down a full 50% from its highs—occurred in the last month of the Shemitah year, Elul, and is now dragging down world markets with it. Historically, most Shemitah corrections occur in the last half of the Shemitah year, or the first month of the following year, so China fits the pattern.
What does God want us to see here? God’s intention is not to cause us to declare that China is now the world economic leader—it is not—but to see that the world economy is connected to the Shemitah calendar that God designed. For these recent worldwide economic drops to be precipitated from a place outside of the US, even outside of the Western world, is a perfect way for God to begin turning our heads to start searching for a perspective larger than ourselves.
Will the world suddenly recognize the Shemitah as God’s design? Of course not. The Western world has had seventy years since the end of World War Two to entrench itself with the idea that its own economic cycles drive the world’s economy, not a calendar that was given to Israel over 3000 years ago. So any change in perspective will be slow, a multi-year process. But every change in perspective has a beginning.
If this is that beginning, why does it matter? Because the perspective we all ultimately need is one that will turn us towards God. God has a plan to become known, and eventually the whole earth will be full of the knowledge of the Lord as the waters cover the sea.
The comments presented here are from the newly released book “Israel FIRST! A Key to Understanding the Blood Moons, Shemitah, Promises to Israel, and the Coming Jubilee”. A free sample is available at www.IsraelFirstBook.com/free