Chinese Downgrade US Government Credit Rating!

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

As I have been warning for years, the US has too much debt and this will have terrible consequences. A less severe consequence that most Americans over age 40 probably never thought could possibly happen, happened today:

Leading Chinese credit rating agency downgrades USA government bonds

Telegraph – Nov 9, 2010 http://www.cbsnews.com/stories/2010/11/08/ap/business/main7035938.shtml

China’s Dagong Cuts U.S. Credit Rating to A+ on Fed’s Quantitative Easing

By Joshua Fellman and Ye Xie – Nov 9, 2010

China’s Dagong Global Credit Rating Co. reduced its credit rating for the U.S. to A+ from AA, citing a deteriorating intent and ability to repay debt obligations after the Federal Reserve announced more monetary easing.

The credit outlook for the U.S. is “negative,” as the Fed’s plan to buy government debt will erode the value of the dollar and “entirely encroaches” on the interests of creditors, analysts at Dagong, one of China’s five official ratings companies, said in a statement. http://www.bloomberg.com/news/2010-11-09/china-s-dagong-downgrades-u-s-to-a-on-quantitative-easing-xinhua-says.html

China, the “poor” Asian country, is telling the world that the mighty USA has credit problems and is becoming a credit risk. And while some may believe that part of the reasons for the downgrade are political or spiteful, the reality is that it is true that the USA is now a credit risk. I actually believe that Dagong’s rating is much too high for the USA.

If others start to realize how risky the US government is, interest rates will skyrocket, and the national debt will be greatly increased. This could be so bad that we could get to the point that if the US government took practically ALL THE INCOME OF ALL ITS PEOPLE it still would run a budget deficit. We are getting closer and closer to a scenario that could get there. The move by the Chinese credit agency is one step in that direction.

Of course, it is not just the Chinese who realize the risk with the USA. Notice the following:

Interview With German Finance Minister Schäuble

‘The US Has Lived on Borrowed Money for Too Long’

Spiegel – Nov 8, 2010

In an interview with SPIEGEL, German Finance Minister Wolfgang Schäuble, 68, criticizes US calls for Germany to reduce exports, outlines his plans for an insolvency framework for indebted European nations and the emphasizes the significance of the German-French axis for Europe…

Schäuble:…The United States lived on borrowed money for too long, inflating its financial sector unnecessarily and neglecting its small and mid-sized industrial companies. There are many reasons for America’s problems, but they don’t include German export surpluses. http://www.spiegel.de/international/world/0,1518,727801,00.html

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

There is an interesting prophecy in the Hebrew scriptures that the Chinese news item brought back to mind:

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. (Deuteronomy 28:43-45, NKJV)

Notice that a curse for disobedience was to borrow from foreigners (which the USA does extensively) and that they would start to rise up.

This is being fulfilled. 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?
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.
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?