Moody’s: Time Running Out For USA

“I will break the pride of your power” (Leviticus 26:19)

Yesterday, I wrote:

…eventually S&P, Moody’s, and the other more respected rating services will downgrade the USA’s debt rating–and this will increase the cost of borrowing and spiral into something that is not sustainable.

Now notice some of what Bloomberg reported today:

Moody’s Says Time Running Out for U.S.

Bloomberg – Jan 28, 2011

Moody’s Investors Service said it may need to place a “negative” outlook on the Aaa rating of U.S. debt sooner than anticipated as the country’s budget deficit widens.

The extension of tax cuts enacted under President George W. Bush, the chance that Congress won’t reduce spending and the outcome of the November elections have increased Moody’s uncertainty over the willingness and ability of the U.S. to reduce its debt, the credit-ratings company said…Steven Hess, a senior credit officer in New York and the author of the report…

U.S. debt has increased from about $4.34 trillion in mid-2007 as the government increased spending to bail out the financial system and bring the economy out of recession. The budget deficit has increased to 8.8 percent of the economy from 1 percent in 2007.

‘Trajectory Is Worse’

“Because of the financial crisis and events following the financial crisis, the trajectory is worse than it was before,” Hess said in a telephone interview.

Moody’s said it expects there will be “constructive efforts” to reduce the deficit and control entitlement spending. It predicted 10-year Treasury yields will rise toward 5 percent without surpassing that level. http://www.bloomberg.com/news/2011-01-28/moody-s-says-time-shortens-for-u-s-rating-outlook-as-s-p-downgrades-japan.html

If enough others start to realize how risky the US government is and what the real inflation rate seems to be, interest rates will skyrocket–and not just go to 5%. Moody’s apparently is hoping to nudge the USA to fix its debt situation, and although some efforts will be made along this line, the reality is that without national repentance, I really do not believe that those efforts will truly succeed. Once real disasters hit (crop failures, food shortages, earthquakes, terrorism, civil unrest, etc.) the USA will find itself in a position that will become obvious to many. Its creditors will “rise up suddenly” (Habakkuk 2:7).

The USA has lived on borrowed money too long, and this will end in catastrophe according to Bible prophecy (cf. Habakkuk 2).

LCG evangelist Dr. D. Winnail wrote about the suddenness of what will happen:

Handwriting on the Wall! On July 4, the United States, currently the most powerful nation in the world, celebrated 234 years of independence. The following day, on Monday, July 5, British-born Harvard professor and economic historian Niall Ferguson opened the 2010 Aspen Ideas Festival with a stark warning that the American “empire” could suddenly collapse—possibly within the next two years—due to the country’s rising debt! (Winnail W. LCG World Ahead Weekly Update, July 8, 2010)

The U.S. and the British-descended peoples have enjoyed living off the resources of the world, but the prophet Habakkuk warns: “… Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. Because you have plundered many nations, all the remnant of the people shall plunder you” (Habakkuk 2:7–8). (Winnail D. Sudden Calamities Ahead! Tomorrows’ World, Volume 10, Issue 5. Sept-Oct, 2008)

Hebrew prophets also warned repeatedly that the future demise of God’s chosen Israelite peoples would come “suddenly” and unexpectedly (Isaiah 9:14–15; 29:5; 30:13; Jeremiah 6:26; 15:8). Modern financial analysts realize this could happen if the nations lending to America decide to dump the dollar and call their loans. The prophet Habakkuk’s warning…, “Will not your creditors rise up suddenly?” (Habakkuk 2:7)—may also ring true for debt-plagued nations like America and its Israelite cousins. Prophetic scripture contains a sobering message: debt and disobedience lead to the demise of nations! (Winnail, D. Debt, Disobedience and Demise of Nations. Tomorrows’ World, Volume 12, Issue 2. March-April 2010, p. 27)

Prophecy moves forward–significant personal repentance is probably the only way out (as national repentance for the USA seems highly unlikely).

To learn more, please check out the following articles:

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?
Will the Anglo-Nations be Divided? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people?
Prophecies of Barack Obama? Are there biblical and non-biblical prophecies about Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? This is a lengthy article with many prophecies that Barack Obama may end up fulfilling.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”. Might Bible prophecy be fulfilled by him?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
End of Mayan Calendar 2012–Might 2012 Mean Something? Are there Mayan calendar predictions for change in 2012? Changes were centuries ago predicted by the Hopi Native Americans. Do Mayan/Hindu/Hopi/Buddhist/New Age/Nostradamus prophecies have any value here? Why might Satan have inspired this date? Does the Dresden codex show destruction of the earth by flood? Can the great tribulation start before 2012? How might Barack Obama be involved in 2012?