Economic Cycles: Understanding America’s History… and Future
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“…Let us run with patience the race that is set before us.” Hebrews 12:1
Economic Cycles: Understanding America’s History… and Future
— How Biblical Cycles Have Powerfully Impacted America’s Entire Existence
March 14, 2014 – A ‘period of testing or preparation’ — that describes a ubiquitous cycle in the Bible. Whether 40 days or 40 years, that period of time (40) always represents a period of preparation.
Preparation for what?
That depends… on many factors. In ancient times, it had one type of impact while in modern times it often has an economiceffect. In recent centuries, the 40-Year Cycle has been uncanny in timing (often violent) economic swings – and a fierce battle for currency control – in a developing nation… called America. 2013–2021 is the latest phase of that cycle!
How long has this 40-Year Cycle existed?
At least 3,000 years! Looking back, one of the most significant, civilization-altering 40-Year ‘periods of testing’ unfolded between 30 AD–70 AD… and the world has never been the same.
30 AD** is when a well-known individual – named Jesus – prophesied the destruction of the Jewish Temple. He was quickly ‘silenced’. During the ensuing 40 years, however, the warning was proclaimed throughout Israel by individuals named Peter, Paul, John, et al. [**Most scholars place Jesus’ death at 30 AD and his birth – due to an error during the calculation of the Gregorian Calendar – at 3-4 BC.]
Some accepted the warning. Others did not. By and large, the established rulers rejected it. And then came 70 AD – when the Romans sacked, burned & destroyed the Jewish Temple… just as warned. The 40-Year Cycle was complete… and ‘prepared’ the world for the next 1,900+ years!
A Trio of ‘Tests’
There are many other examples of this 40-Year Cycle (and/or it’s little sister – the 40-day cycle) throughout the Bible and throughout ancient history… and through modern history. However, some of the most dramatic examples involved a trio of 40-Year Cycles – an overall 120-Year Cycle that represents an even more profound societal & economic cycle. www.insiidetrack.com
That cycle is first mentioned in Genesis 6, when YHWH decrees the life of man to be 120 years, from that point forward. (To this day, the oldest-known humans only live into their 110’s or early 120’s.)
That same cycle governed the life of Moses – who spent 40 years in Egypt followed by 40 years in ‘exile’ (tending sheep for/with Jethro) – both of which prepared him for the ensuing 40 years leading a developing nation through the desert… in preparation! His life – and the future of a new nation – was governed by the 40-Year Cycle. He died at 120 years of age (Deut. 31 & 34).
[Note: Caleb was 40 years old when he was sent to survey the Promised Land, a land he finally entered 40 years later… Joshua 14:7]
The Israelites entered the Promised Land and slowly developed into a prosperous nation. During that period, there were multiple times when Israel experienced a 40-year period of peace and prosperity (Judges 3:11, Judges 5:31, Judges 8:28) and times when they became enslaved and impoverished for 40 years (Judges 13:1). They could not escape that ever-present cycle.
In each case, there was a distinct economic consequence to each period of 40 years!
The pinnacle of Israel’s prosperity & power – and the onset of her demise – came during another trio of 40-Year Cycles – the reigns of Saul (40 years), David (40 years) & Solomon (40 years)… shortly after Eli had led Israel for 40 years (I Sam. 4:18).
The peak of their economic prosperity – when Solomon amassed more gold than anyone in history – came at the culmination of this 120-year period.
Moses’ 120-year cycle ushered in Israel’s rise as a nation.
And its first 3 kings culminated that rise with a final, 120-year cycle of ‘preparation’… for the decimation & dispersion to follow.
Modern-Day Parallels?
America’s history has some intriguing parallels (on both a 40-year & 120-year basis), always linked to freedom – on a personal, religious & economic basis.
That is illustrated in her 120-year cycle from uniting & protecting (1650’s, when Rhode Island passed the first laws to ban slavery and New Amsterdam became the first destination of Jews fleeing persecution) to freedom & liberation (1770’s, as an agrarian society, declaring independence in 1776) – to the entry of its economic ascent (1890’s, when it transitioned to a manufacturing society and ultimately became the most prosperous nation on Earth).
Ancient & Religious Impact
This 120-Year Cycle dates back thousands of years and has precisely timed MAJOR religious events, often associated with forms of freedom. So, it is not surprising that it has governed America’s brief history. www.insiidetrack.com
Ironically, the 1530’s – 120 years before the 1650’s – are when the Act of Supremacy (1534) was passed in England, declaring King Henry VIII the supreme head of the Church of England… after which he proceeded to dissolve monasteries (alleged to be dens of carnal & abominable living) via the Suppression of Religious Houses Act (1535).
These events began the English Reformation – as the Church of England broke away from the Roman Catholic Church – a liberation that has impacted the world ever since. These culminated with the See of Rome Act of 1536 – denouncing the authority of the Pope. (That Church of England was the same one that played a key role in early migrations to American, particularly by the Puritans.)
The 1530’s were also the first time the Torah was translated into English and included the publication of the complete Tyndale & Coverdale Bibles – a primary factor in the ensuing revolt. Just as online-based information is revamping the world now, written/published information had that impact in the 1500’s!
Not surprisingly, 120 years earlier – in the 1410’s – England struggled with the most volatile period of the Lollards (stemming from John Wycliffe’s teachings), executing multiple leaders (Sir John Oldcastle & John Badby) in an attempt to stem the rising influence of Lollardy teaching – which was a threat to the established civil & religious leaders of the day.
Lollards are often considered the forerunner of – or synonymous with – Protestants. (Lollard ideas were/are later found in many Protestant denominations, including Baptists, Puritans & Quakers.) So, there is a direct connection between the events of the 1410’s & the 1530’s.
And 120 years earlier – in the 1290’s – England had expelled all Jews (by/on Tisha b’Av). In 1291, the Fall of Acre ended the Crusades and eliminated future attacks on the Holy Land.
And this culmination ended 1200 years (10 x 120-Year Cycle) from the 90’s – when the Apostle John – on the Isle of Patmos – received the Revelation of Jesus Christ, what would be put into writing and become the final book of the Bible. That is another affirmation of the enormous power of the written word.
Midway through that 1200-Year period – 600 years after the Revelation & culmination of ‘The Written Word’ & 600 years before the culminating Crusade against the Holy Land, the Dome of the Rock was completed in Jerusalem in the 690’s… 120 years after the birth of Mohammad (570’s) and 60 years after his death (632). So, that 120-Year Cycle completely encompasses the last two millennia.
The precise culmination of these 120-Year Cycles begins in 2016 (though it spans 2013–2021).
That is when the 6th 40-Year Cycle from 1776 culminates (‘work for 6, rest on 7th’) and a 7th, 40-Year Cycle begins. And, it is EXACTLY 40 years from when America – and most industrial nations – signed the official ‘certificate of divorce’ from gold, via the Jamaica Accord in 1976… a MAJOR economic event!
That is when the ‘West’ emphatically stated: “We don’t want ‘honest scales’ as the foundation of our currency and our economy!” So, how do you think that 40-year ‘period of testing’ will culminate?!?
Watch 2016–2021!
In order to better appreciate the impact of this 40-Year Cycle – on America’s politics, finances, currency & economy – one needs to go back to the 1770’s…
40-Year Dollar Revolution Cycle Recap
1773 – Tea Act issued; leads to the Boston Tea Party (battle over taxation – one of the easy ways to devalue a currency & control a population). The Tea Act of 1773 not only triggered immediate consequences but also ushered in a tumultuous 3–5 year period – accelerating in 1775–1776 with the American Revolution & Declaration of Independence.
At the same time, another economic/currency event occurred with the issuing of America’s first currency – the ‘Continental’… a financial debacle!
From the time it was issued, the Continental plummeted in value, becoming virtually worthless by/in 1781 (just before the War ended in Europe). 1781 also timed the surrender of Cornwallis – the end of the Revolutionary War and the beginning of America as a united nation.
The initial events of 1773–1776 led to the resulting events of 1777–1781. That set the pattern for the ensuing 240 years… www.insiidetrack.com
40 years later…
1813 – A fierce battle was being waged over the re-chartering of the Second Bank of the United States (the charter had expired two years before) – a determined attempt at centralized control of the currency and banking… another affirmation of the 40-Year Cycle’seconomic impact.
Another ‘revolutionary’ war was unfolding. Thomas Jefferson was spearheading this battle – and the control of America’s currency – and famously wrote “A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army.”
That battle – surrounding the issuing, backing & control of the U.S. currency (and, by extension, America’s entire economy) – had multiple parallels to the events & battles that were fought 40 years earlier. Ultimately, Jefferson lost this battle as the National Bankwas re-chartered in 1816.
Again, it was a tumultuous 3–5 year period (1813–1816 was a parallel to/from 1773–1776) that had major ramifications on America’s currency & economy – both then AND in the future. [1776 & 1816 have cyclical parallels to 1976 & 2016.]
The 2nd Bank of the United States’ inflationary practices and battle between metal & paper currency quickly led to the Panic of 1819 and an economic collapse that lasted into 1821… right on schedule (40 years from the culmination of the previous economic cycle in 1781).
In these first two phases – of the 40-Year Cycle – initial battles took place in the ‘3’ through ‘6’ year but the actual ramifications played out during the ‘7’ through the ensuing ‘1’ year (1777–1781 & 1817–1821). That pattern has continued ever since. www.insiidetrack.com
40 years later…
1853 marked another watershed event in America’s monetary history with Gold & Silver. It was at this time (1853) that the U.S. reduced the weight of Silver in coins, effectively devaluing the currency and ultimately leading to the suspension of payment in Silver in 1857 (another tumultuous, 3–5 year period)… as the government waged economic war against the population.
The ramifications of that continued to play out until 1861 – when the US suspended payment in Gold AND Silver, eliminating the push for a Silver standard… and again removing true accountability from the currency. In the midst of this debacle was the Panic of 1857 – a financial and economic crash. The ultimate ramifications of this period were felt in 1861 – the beginning of the Civil War.
In each of these occurrences of the uncanny 40-Year Cycle, there is a 3–5 year initial struggle (1773–1776, 1813–1816, 1853–1857) that is part of a larger 7–9 year upheaval (1773–1781, 1813–1821, 1853–1861) – a classic manifestation of the 80/20 Rule…
1853 witnessed the trigger event and 1857–1861 experienced dramatic & consequential events.
40 years later…
1893 – Silver collapsed, when government support was abruptly withdrawn (following the actions of the so-called ‘Billion Dollar Congress’ and their repeated ‘stimulus package’). Government price manipulation caused a boom-and-bust cycle in the Gold/Silver/Dollar relationship – a pattern that would be repeated in the decades and century to follow.
The Panic of 1893 triggered a run on Gold and ushered in the worst depression in America’s history… up to that point.
The election of 1896 revolved around Gold, with William Jennings Bryan (the loser) arguing to end the Gold Standard (“…you shall not crucify mankind upon a cross of gold…”), and led to the ultimate enactment of the Gold Standard in 1900. The 3–5 year and 7–9 year pattern continued, with uncanny accuracy, on a precise 40-Year Cycle…
[As a side note, few people realize that The Wizard of Oz was allegedly written about this battle (and the 1896 election) & featured, among other characters, the Cowardly Lion – representing Bryan, who was then known as ‘The Lion’. In the book, Dorothy is wearing silver slippers (not ruby; a change that Hollywood enacted) while walking on the golden path (yellow-brick road) – symbolizing the battle between a silver standard & a gold standard. The Tin Man represented manufacturing while the Scarecrow represented farming – the two powerful economic forces – or ‘lobbies’ – of that day.]
40 years later…
1933 witnessed – again in precise lockstep with this 40-Year Cycle – a fatal blow against the underlying integrity of the U.S. Dollar, reinforcing this cycle’s economic impact.
[The Dollar’s substitute had already been created in 1913 – at the precise midpoint of the previous 40-Year Cycle – the Federal Reserve Note. That created an overlapping but reaffirming 40-Year Cycle. The events of 1913 came an exact 40-Year Cycle from the Coinage Act of 1873 that reaffirmed the Gold Standard… there’s no escaping the 40-Year Cycle.]
The Dollar was no longer backed by Gold, Gold coinage went out of production & U.S. citizens were banned from holding Gold. (Emergency Banking Act & Executive Order 6102 in 1933 & Gold Reserve Act of 1934). Shortly after, Executive Order 6814 – or Silver Purchase Act – was issued in 1934.
Following these events, a Federal Reserve ‘tightening’ in 1936 triggered a second stock market crash in 1937. Severe economic ramifications played out, once again!
Again, this timed a tumultuous 3–5 year and 7–9 year period that included the worst depression in America’s history and timed a (2nd) stock market crash – not to mention unrelated but still cyclical events** like the drought & Dust Bowl in the mid-1930’s – and culminated with World War II (beginning in 1939 for most and in 1941 for the US). www.insiidetrack.com
[**There is a related 40-Year Cycle of Food Crises – and crop failures – that coincides with this economic cycle. The late-1970’stimed the worst California drought and skyrocketing food prices, the late-1930’s had the Dust Bowl and the late-1890’s had drought & wheat crop failures. The late-2010’s? Already, certain expectations are building for the end of this decade. Watch 2016–2019!]
40 years later…
1973 rocked the financial and Forex world with the collapse of the Bretton Woods System – an(other) attempt at a form of a global monetary order. Bretton Woods had established a system to regulate global money, including tying each currency – of the modern, industrial nations – to the U.S. Dollar.
[This collapse was presaged by Nixon shutting the Gold window in August 1971. That event – with the ubiquitous 40-Year Cycle – helped pinpoint the Major top in Gold in August 2011.
Gold began a new life in August 1971 (no longer locked into $35/oz price tag) and moved progressively higher into the precise 40-Year Anniversary of that event in August 2011! The 40-Year Cycle is so intertwined with Gold that it is hard to view them independently.]
1973–1975 also saw a stock market crash (just like in almost every other phase of this 40-Year Cycle), economic malaise, and a major Middle East event – the agreement to price oil in Dollars, effectively backing the US Dollar with oil… AFTER Saudi Arabia had used the ‘Oil Weapon’ against the West (to punish them for support of Israel in the Yom Kippur War of 1973).
The events of 1973–1975 paved the way for 1976 and the implementation of the Jamaica Accord – an agreement to de-link Gold from the Dollar & allow a floating exchange rate… a pure, unadulterated fiat currency with little backing it but debt (and perhaps oil).
(2016 completes a 40-Year ‘Period of Testing’ from that 1976 global decision and ushers in a dangerous 3–5 year period, leading into 2021!)
The collapse of Bretton Woods ushered in the largest surge in Gold – priced in US Dollars – from 1973 into 1980… the 80/20 Rulein effect, once again.
Looking at it inversely, it ushered in the largest collapse in the US Dollar – when priced in Gold!
Again, a tumultuous, 3–5 year period powerfully impacted the failing marriage between Gold and the US Dollar and the entire economic struggle lasted into 1980/1981 (remember 20% interest rates??).
At this point, it should be difficult (impossible?) to refute the uncanny accuracy & impact of this 40-Year Cycle... and its economic effect. www.insiidetrack.com
And this is just the time (2013–2021) when investors, economists and average citizens should be preparing for the latest phase of this 40-Year Cycle. Before elaborating on that, let me also highlight another application of this cycle that was partially addressed in this preceding recap…
This 40-Year Cycle (and an overlapping 80-Year Cycle) has also governed America’s wars, originating with King William’s Wars in the 1690’s (England versus colonies) to the Revolutionary War in the 1770’s (that really culminated in 1781 in Yorktown) to the Civil War in 1861 (preceded by preliminary battles in the 1850’s) to America’s entry in World War II in 1941.
1781–1861–1941–????
2021 is the next phase of this 80-Year Cycle (and war is almost always related to economics).
2013–2021
The latest phase of this 40-Year Cycle began in 2013 and was expected to begin a final process of steadily dismantling the US Dollar. [Keep in mind, however, that the actual perceived value of the US Dollar is projected to rise in 2013–2016, the first half of that cycle. It is not likely to turn down until 2017.]
Sure enough, in March 2013, the BRICS nations announced the founding of their New Development Bank – aimed at challenging the IMF & World Bank for global economic supremacy.
At the same time, China launched the Asian Infrastructure Investment Bank – a competing global bank… both vying to unseat the US Dollar as global kingpin. Watch for similar events to follow.
The handwriting is on the wall:
Mene, mene tekel parsin!
Don’t get me wrong… I am not writing this to sensationalize these events or become ‘alarmist’. However, I do want individuals to examine the evidence and make their own informed decisions. I have always considered myself an ‘Aware-ist’ (in the pattern of Patrick Henry)… NOT an alarmist.
Signs…
If my interpretation of this 40-Year Cycle (and related analysis) is accurate, it should be easy to tell. There are decisive expectations – in markets ranging from the US Dollar & Gold to oil & commodities – that are steadily developing and being published in INSIIDE Track. In most cases, they argue for sharp moves into 2016 followed by equally dynamic moves – in the opposite directions – for 2016/2017–2021.
More importantly, there should be a continuing push – by China, Russia & other nations – to supplant the US Dollar as the global reserve currency. Similar to America’s currency battle, this global currency battle should witness more subtle actions into 2016followed by more overt reactions in 2017–2021.
There are MANY other reasons, factors, cycles & indicators that go into this analysis. However, the 40-Year Cycle is a Major overriding influence that should not be underestimated!
The Sabbath…
America is completing the 6th 40-Year Cycle since her founding. (While 1776 marks the Declaration of Independence, 1781 marks the true manifestation of her freedom & liberation.) And that ushers in another Biblical ECONOMIC principle about ‘working for 6 and resting on the 7th’.
2016–2021 completes that 6th 40-Year Cycle (from 1776–1781) and ushers in an extremely tenuous time, economically speaking. www.insiidetrack.com
2016–2021 is 6 – 40-Year Cycles from the Revolutionary War, Declaration of Independence and first foray into a currency backed by ‘uneven scales’ (in the words of Solomon) – the Continental.
2016–2021 is 5 – 40-Year Cycles from the re-chartering of the 2nd Bank of the United States – and the second foray into inflationary currency practices – ushering in an economic debacle & depression.
2016–2021 is 4 – 40-Year Cycles from the US devaluing & then suspending Gold & Silver currency (leading into one of the most inflationary economic periods in our history). A new war completed that period. In most cases, the ‘6’ year began inflationary periods when Gold’s value – versus the US Dollar – steadily escalated in value. 2016 is expected to usher in a similar period.
2016–2021 is 3 – 40-Year Cycles from another financial crash – and the worst depression in America up to that point – coinciding with a bubble & bust in precious metals, brought on by government subsidies & intervention. A Gold Standard culminated that period.
2016–2021 is 2 – 40-Year Cycles from confiscation & illegalization of Gold & Silver – and a resulting stock market crash – as the floodgates for future inflation were opened. A new war completed that period. Here again, Gold’s value escalated against the Dollar even though it was illegal for Americans to hold it.
2016–2021 is 1 – 40-Year Cycle from the collapse of one global monetary order (based on an inflationary, fiat Dollar), the official ‘divorce’ between the global currencies and sound money, AND the onset of the other massive inflationary period in America’s history (1975–1981).
If any period illustrates the inflationary potential of this recurring currency battle, it is the period of 1977–1981 – when the Dollar plummeted against the value of Gold, Silver & most commodities.
For 6 – 40-Year Cycles, there has been repeated attempts at undermining and devaluing (usually via inflationary tactics) the U.S. currency… and removing any accountability from it.
Will the onset of the 7th 40-Year Cycle bring about a kind of ‘rest’ or ‘completion’ of this ‘work’?
Will the Dollar finally be unseated from its perch above the global currency structure in 2017–2021?
Oddly enough (though not surprising), 2015–2018 is also the latest phase of an undeniable, 70-Year Cycle – the ‘cycle of kings’ and cycle of governments described in the Bible – from the most globally-decisive & transitional period in the last century – 1945–1948.
That is the time when America rose to global leadership, when the computer age really began (first transistor), when the nuclear age began (atom bombs), and when global entities were born.
If Biblical cycles are applicable, and the 70-Year Cycle is the ‘time of a king’s life’ and the ‘Cycle of Kings’, what does that say for 2015–2018? More importantly, what does it say for 2018–2021 – 70 years from the initial years of these Earth-changing events.
There is a LOT more to this discussion and I would love to share it with you. That is why I am posting a wealth of information & analysis at www.40YearCycle.com for you to peruse. I intend to continue doing that throughout 2014 and hopefully maintain that practice into/through 2017–2021.
Feel free to peruse www.40YearCycle.com for more information on this unique & uncanny cycle… and for links to dozens of media outlets (from CNBC, to ABC, CBS & NBC podcast archives, to numerous financial interviews, etc.) that have covered our analysis. www.insiidetrack.com
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Thank you for taking the time to read through this. I hope it has intrigued you in some small way.
Cordially,
Eric
Eric S. Hadik – President
INSIIDE Track Trading
PO Box 2252
Naperville IL 60567-2252
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