China drops USA debt holdings and downgrades USA’s credit rating

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

China has taken steps related to the debt of the USA:

January 18, 2018

China reduced its holdings of United States Treasury bonds in November to their lowest level in four months, official data showed on Wednesday.

The figures come after a controversial news report last week that Beijing was planning to slow or even halt its purchases of US government debt as Washington is considering new trade measures against China.

China remained the biggest creditor to the US but its Treasury holdings fell by US$12.6bn to US$1.176 trillion in November, according to the US Treasury Department. …

The scaling down of US sovereign debt holdings by foreign institutions could make it more expensive for the US government to finance federal budget deficits brought on by President Donald Trump’s tax cuts. The tax cuts will increase US government debt, which is currently more than US$20 trillion, by an estimated US$1.4 trillion over the next decade.

In related news, Chinese credit rating agency Dagong cut US sovereign credit rating from A- to BBB+ on Tuesday, saying America’s debt repayment capacity is expected to continue to deteriorate with its massive tax cuts plan.

For comparison, international ratings agencies Fitch and Moody’s give the US the highest AAA rating. Standard & Poor’s downgraded the US rating by one notch to AA+ in August 2011. https://gbtimes.com/china-cuts-us-treasury-holdings-amid-speculation-about-its-future-policy

Here is more about the debt and the downgrade:

In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasurys, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base of the government’s debt repayment.

Oh, and just to make sure the message is heard loud and clear, the ratings, which are now level with those of Peru, Colombia and Turkmenistan on the Beijing-based agency’s scale of creditworthiness, have also been put on a negative outlook.

In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency. Quoted by Reuters, Dagong made specific reference to President Donald Trump’s tax package, which is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.

“Deficiencies in the current U.S. political ecology make it difficult for the efficient administration of the federal government, so the national economic development derails from the right track,” Dagong said adding that “Massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weaken the base of government’s debt repayment.”

Projecting US funding needs in the coming years, Dagong said a deterioration in the government’s fiscal revenue-to-debt ratio to 12.1% in 2022 from 14.9% and 14.2% in 2018 and 2019, respectively, would demand frequent increases in the government’s debt ceiling. https://www.zerohedge.com/news/2018-01-16/china-downgrades-us-credit-rating-bbb-warns-us-insolvency-would-detonate-next

As far as the so-called “debt ceiling” goes, notice the following:

January 18, 2018

The debt limit reset on December 11 to $20.456 trillion. Since that time, the Treasury has employed its playbook of extraordinary measures (essentially robbing federal retirement funds to pay off maturing debt) to keep under the limit and run the government. As of yesterday, the total debt subject to limit was $20,455,975 trillion (as opposed to the limit of $20,455,999 trillion). Notice that this is a larger number than the $14.826 trillion held in the hands of the public, as the “debt subject to limit” includes Treasuries held in, for example, the Social Security Trust Funds.

Obviously, Congress must raise the debt limit in a timely fashion. …

Congress and the Administration need to own up to the fact that the federal budget is mess, and on an unsustainable trajectory. They need to get serious about the very entitlement programs that they consistently shirk their responsibility to fix. https://www.americanactionforum.org/daily-dish/debt-limit-dead-ahead/#ixzz54XwUwPM9

January 18, 2018

With barely 36 hours left until funding for the federal government expires at midnight Friday, Republican leaders are scrambling to whip up support for a continuing resolution – what would be the fourth since September – that would keep the lights on until mid-February. However, with Democrats holding out for an immigration deal, and conservative Republicans refusing to play ball, Republican leaders are rapidly running out of options to prevent what both parties fear might be a politically ruinous government shutdown during a crucial election year.

NBC News is reporting that House Republicans are confident they have the votes to pass the funding stop-gap before the deadline, according to anonymous “leadership aides.” But the measure’s prospects in the Senate remain much dimmer. https://www.zerohedge.com/news/2018-01-18/republican-leaders-are-running-out-options-shutdown-looks-imminent

Political risks and gamesmanship are again involved in the debt and “government shutdown” matters–there are real costs to this. The debt situation of the USA is a mess–and the results of this mess will be worse than minor increases in interest rates. Although the USA takes great pride in its dollar, it will one day be worthless (watch also Physical preparedness for Christians). USA debt is one of the 18 items to prophetically watch in 2018.

The Bible teaches the following about debt and foreign involvement:

43 The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. 44 He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail. 45 Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed because you did not obey the voice of the LORD your God, to keep His commandments and His statutes which He commanded you…47 “Because you did not serve the LORD your God with joy and gladness of heart, for the abundance of everything, 48 therefore you shall serve your enemies, whom the LORD will send against you, in hunger, in thirst, in nakedness, and in need of everything; and He will put a yoke of iron on your neck until He has destroyed you. 49 The LORD will bring a nation against you from afar, from the end of the earth, as swift as the eagle flies, a nation whose language you will not understand, 50 a nation of fierce countenance, which does not respect the elderly nor show favor to the young. 51 And they shall eat the increase of your livestock and the produce of your land, until you are destroyed; they shall not leave you grain or new wine or oil, or the increase of your cattle or the offspring of your flocks, until they have destroyed you. 52 They shall besiege you at all your gates until your high and fortified walls, in which you trust, come down throughout all your land; and they shall besiege you at all your gates throughout all your land which the LORD your God has given you (Deuteronomy 28:42-45,47-52)

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 (Habakkuk 2:3,5,6-8).

The nation with the greatest debt of all time is the United States of America, and on a per capita basis this may be the United Kingdom of Great Britain and Northern Ireland (and they are close if not the per capita debt leader). Habakkuk is warning that in the end times, at least one highly indebted nation will be taken over.

It is the United States and its Anglo-allies that have loaded pledges of debt in these end times that they really do not expect to pay back. The debt problems in the USA are bigger than most Americans realize. The federal government has over $20 trillion in debt, and this does not count the trillions that the Federal Reserve owes or future debts. The total of all known debt in the USA is so high, that it is not reasonable to conclude that it can be paid off in comparable value short of some major development.

This does not bode well for the USA.

While some place their hopes in US President Donald Trump, he is not one who opposes debt–and the debt of the USA has increased under his Administration.

In my book, Donald Trump and America’s Apocalypse, I wrote:

Donald Trump and many other American politicians have not run away from increasing U.S.A. debt—that will be to the nation’s peril. …

Although as president Donald Trump inherited a debt-laden nation, his policies, according to his own public pronouncements will continue to lead to, increased U.S.A. debt. … Increasing national debt will lead to destruction at the appointed time of the end (Habakkuk 2:3–8). (Thiel B. Donald Trump and America’s Apocalypse. Nazarene Books, 2017, pp. 35,37)

This is coming to pass. Biblical prophecies are being fulfilled.

Donald Trump once claimed:

I’m the king of debt. I love debt. (Egan M. Donald Trump: ‘I’m the king of debt.’ CNN, May 7, 2016)

The Chinese realize this, plus realize that Donald Trump has threatened various trade sanctions, like increased tariffs.

While they are not planning on currently dumping all of their USA debt holdings, they are looking at how to deal with this.

The debt situation will not turn out well for the USA or UK.

Debt will be a factor in the taking over of those nations (cf. Habakkuk 2:6-8).

To learn more about how these matters will turn out, please check out the following:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be: Are Chinese threats against Australia for real?
Will the Anglo-Saxon Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? 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? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves? Here is a related item in the Spanish language ¿Serán divididas las naciones anglosajonas?
British are the Covenant People What do ‘British’ and ‘Britain’ mean in Hebrew? Are the descendants of the Anglo-Saxons people of the covenant? Does the British royal family connect to the throne of David? What does the Bible teach? What does history show us? Is there any DNA evidence related to British-Israelism? When did Christianity make it to the British Isles? Could Jeremiah have made it to the British Isles? What type of Christians made it to the British Isles? Did the last King of England believe in British Israelism?
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
18 items to prophetically watch in 2018 Much is happening. Dr. Thiel points to 18 in this article. Here is a link to a related sermon: 18 items to prophetically watch in 2018.
Physical Preparation Scriptures for Christians. We all know the Bible prophecies famines. Should we do something? Here is a version in the Spanish language Escrituras sobre Preparación física para los Cristianos. Here is a link to a related sermon: Physical preparedness for Christians.
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? A video of related interest may be: Germany, Gold, and the US Dollar.
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel. Here is a link to a version of this article in Spanish: ¿Prueban los caracteres chinos la exactitud de la Biblia?
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon? A YouTube video of interest may be Is China THE Threat to the United States of America?
Blockchain, Karl Guttenberg, and 666. American Express just announced a deal with Ripple related to using its blockchain technology. No longer confined to Bitcoin, blockchain technology is moving towards the mainstream. Former German Economic and later Defense Minister, Karl-Theodor zu Guttenberg has long been an adviser to Ripple and has plans for internationally-expanding the use of blockchain money. Jim Rickards, Doug Casey, and others have expressed concerns that blockchain money will give governments too much control over buying and selling. Could any of this be related to biblical prophecies in the Books of Daniel and Revelation? Could any of this help fulfill the prophecies related to buying and selling and 666 in Revelation 13? Dr. Thiel addresses these issues and more in this video. A related written article is also available: Amex launches blockchain-based business payments using Ripple: Prelude to the Beast and 666??
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Donald Trump in Prophecy Prophecy, Donald Trump? Are there prophecies that Donald Trump may fulfill? Are there any prophecies that he has already helped fulfill? Could a Donald Trump presidency be apocalyptic? A related video is titled: Donald: ‘Trump of God’ or Apocalyptic?
Trump Presidency Magic 8 Ball or Bible Prophecy? BBC reported that one might as well use a ‘Magic Eight-Ball’ to try to predict what will happen in the remaining time of Donald Trump’s presidency. What is a ‘Magic Eight-Ball’? Dr. Thiel not only explains that, but also briefly goes over 10 biblically-based warnings he wrote would happen if Donald Trump were elected that have already began to come to pass. He also goes over something he wrote back in 2008 that the Trump presidency is also helping lead to fulfillment. Should you trust Bible prophecy or not? Dr. Thiel says that Bible prophecy can be trusted, despite the view of skeptics and others that either overlook or despise the Bible. This is a video.
Donald Trump and America’s Apocalypse This 188 page book is for people truly interested in prophecies related to Donald Trump and the United States, including learning about several that have already been fulfilled and those that will be fulfilled in the future. The physical book can be purchased at Amazon for $12.99 from the following link: Donald Trump and America’s Apocalypse.
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