US economy shrinks a small amount, defense cuts blamed

The Commerce Department reports that the economy of the USA shrunk a small amount last quarter:

30 January 2013

The United States economy contracted unexpectedly in the final quarter of 2012, hurt by weaker exports, a drop in military spending and a slower buildup in inventories.

The Commerce Department said Wednesday that economic output in the quarter fell at an annual rate of 0.1 percent, compared with growth at a 3.1 percent pace in the third quarter.

It marked the economy’s worst performance since the second quarter of 2009. http://www.nytimes.com/2013/01/31/business/economy/us-economy-unexpectedly-contracted-in-fourth-quarter.html?_r=0

30 January 2013

WASHINGTON — The U.S. economy unexpectedly shrank from October through December for the first time since 2009, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles. The drop occurred despite stronger consumer spending and business investment.The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That was a sharp slowdown from the 3.1 percent growth rate in the July-September quarter…the fact that the economy shrank at all, combined with much lower consumer confidence reported Tuesday, may raises fears about the economy’s durability in 2013. That’s because deep automatic government spending cuts will cut into domestic and defense programs starting in March unless Congress reaches a deal to avert them.And Americans are coming to grips with an increase in Social Security taxes that has begun to leave them with less take-home pay. http://www.washingtonpost.com/business/us-economy-shrinks-01-pct-first-time-in-3–years-deep-cut-in-defense-spending-key-factor/2013/01/30/9dc71c80-6ae1-11e2-9a0b-db931670f35d_story.html

Parts of the “fiscal cliff” are coming into play and other parts are expected to. To minimize the impact, there were certain deals made by the politicians in Washington, D.C. which basically reduced the immediate impact and others that pushed the problem down the road a few months (see Obama Administration will not oppose debt-ceiling delay proposal)–and some outside the USA have real problems with that (see IMF: Suspending debt ceiling hurts United States tremendously).

The reality is that something needs to be done (and it may essentially be some type of sham, like the “quantitative easing” programs are; see Doubling QE3 is not good) as the US government is NOT in a position to function unless it raises its debt limits. So, it will raise its debts.

Biblically, this is more dangerous than most in the USA realize. Notice what the Bible warns about those who increase debt in the end times:

3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry…5 Indeed, because he transgresses by wine, He is a proud man… 6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say, ‘Woe to him who increases What is not his–how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you. Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:3,5,6-8).

At some point in time, the USA will likely start to experience massive inflation. And afterwards, its creditors will rise up (Habakkuk 2:7). The fiscal cliff as well as policies of the Federal Reserve like “quantitative easing,” unless dramatically altered in a different direction relatively soon, are setting the stage for hyperinflation in the U.S.A.–have no doubt about it.

But what about the spending cuts? The cuts are believed to be dangerous in many ways as well. Furthermore, they are still not enough, nor are the tax increases enough, to stop the increase in US government debt. And the spending cuts that are associated with the fiscal cliff will affect many areas of US government spending. In terms of military spending, USA Defense Secretary Leon Panetta has warned about the dangers of the cuts as “doomsday” (‘Doomsday’ Defense Cuts) and “unthinkable” (Panetta Weighs Unthinkable Defense Cuts) and yet they may well happen–they may help the stage for the military takeover of the USA that the Bible prophesies in Daniel 11:39. The automatic cuts include reduction to entitlement programs and about an 8.2% reduction in federal education spending, which will impact school districts around the nation. Healthcare costs are also expected to be impacted, deal or no deal (‘Taxmaggedon’ and related items).

While the Republicans and Democrats have used this as a major partisan fight, the reality is that the rest of the world is also watching and is very disturbed by all of this (see IMF: Suspending debt ceiling hurts United States tremendously). The Europeans and others are realizing that the USA is losing its position of world leadership–and when it does, this will be the final “time of the Gentiles” that the Bible warns of (Ezekiel 30:2-3; Luke 21:23-24; Revelation 11:2). The leaders in the USA are causing the nation to err (cf. Isaiah 3:12; 9:16).

While a .1 percent economic drop is relatively minor, it suggests a nation that has not fixed its economy. That, combined with massive debt while decreasing defense spending, suggests dangers for the USA.

The policies and decisions in Washington, D.C. are helping to create the conditions for the upcoming European Beast power to fill the void in economic (and even military) leadership that the USA is in the process of making.

Some articles of possibly related interest may include:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic, Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
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