US Government Could Default?
The Strength of Dollars Have Long Been Part of the “Pride of the Power” of the USA (which will be broken per Leviticus 26:19)
Notice the following not very surprising article:
Financial crisis: Default by the US government is no longer unthinkable
So, here we are – the start of a new world order. After the tumultuous events of the last fortnight, the global economic landscape will never look the same again.
Power has tangibly shifted – away from the United States and the Western world generally, and towards the fast-growing giants of the East. That’s been happening for some years now.
But September 2008 marks the moment when the scale of our excesses, the extent of our debts and the moral bankruptcy of our financial regulatory system finally began to be truly exposed.
I say began to be exposed. Back in March, Standard and Poor’s, the US ratings agency, estimated some $285bn (£156bn) of mortgage-backed securities would eventually be written-off by the global banking sector. On Friday, almost unnoticed amid the panic, that forecast was upped to $378bn.
In reality, total credit losses will be much higher – at least $750bn in my view. But the extent of the 33 per cent one-off increase in S&P’s estimate speaks volumes. It reflects just how little anyone truly knows about either the ultimate size of the sub-prime losses or who ultimately holds the related securities.
But with one in ten US mortgages now “delinquent” or “in foreclosure”, and house prices still falling, such “toxic waste” is burning holes in balance sheets wherever it sits. That’s why this crisis is far from over.
It’s difficult to overstate the enormity of what happened last week…
The trouble is, though, as the bill for these bail-outs keeps rising, so does the possibility that the political consensus will crack and there’ll be an almighty, and debilitating, dust-up…
In other words, the market is now pricing-in the genuine possibility that the US will struggle to pay-back some of its long-term T-bills.
That possibility is still deemed to be quite low. But the ultimate financial question – until recently, unthinkable – is now being asked. Yes siree, the mighty US government could default. That’s how much the world has changed. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/21/ccliam121.xml
It should not be a surprise to long-time readers of the COGwriter page, because I have been warning about the US debt for many years.
The short-term solutions that have been implemented are at best SHORT-TERM and they MUST ultimately lead to hyper-inflation UNLESS the USA will repent of its sins and pay down its debt. (However, if the USA only monetizes its debt–prints up money, which will be highly devalued–to pay its debts off, creditors will NOT be happy and this could be a factor in them rising up.)
The biblical truth is that, short of true repentance, eventually the creditors of the USA will rise up and then the USA will be taken over.
Thousands of years ago, notice what God had Habakkuk record:
For the vision is yet for an appointed time…
‘Woe to him who increases
What is not his–how long?
And to him who loads himself with many pledges’?
Will not your creditors rise up suddenly?
Will they not awaken who oppress you?
And you will become their booty (Habakkuk 2:3,6,7).
Notice that Habakkuk wrote that at the appointed time (which is mentioned several times in Daniel 11, hence this appears to be for the same time) a those who are deep in debt (loaded with “many pledges”) will become the “booty” (slaves) of creditors. The USA is the most indebted nation of all time and its English-speaking allies are all also deeply in debt.
Neither presidential John McCain nor Barack Obama seem to understand this debt problem at all. And while it is likely that this will rising up of creditors CANNOT happen in the next four years, it is a real possibility for whoever wins the 2012 USA presidential election.
We live in perilous times.
Several articles of possibly related interest may include:
End of Mayan Calendar 2012–Might 2012 Mean Something? There is a Mayan calendar prediction for change in 2012. 2012 changes were also centuries ago predicted by the Hopi Native Americans and others (who were not even on the same continent). Do these Mayan/Hindu/Hopi prophecies have any value? 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?
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?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies 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?
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