Debt Limit Not Raised, Gold Hits Another High. What is Really Going to Happen?

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

The US debt ceiling situation continues to concern investors and apparently helped contribute to a record high price for gold today:

US debt impasse spooks markets

The dollar moved to an all-time low against the Swiss franc while gold touched a record high. Long-dated US Treasury bonds weakened while global stocks remained under pressure.

http://www.ft.com/cms/s/0/6f33e03c-b6d4-11e0-a8b8-00144feabdc0.html

The reality is that raising the debt limit, in the long run, will also likely contribute to a rise in the price of gold in US dollars (Kitco showed over US$1620 per ounce earlier today. Here is a link to the latest price Gold and Silver Quotes/Prices).

Now, what is really going to happen on this debt crisis mess in the USA?

First, if the debt ceiling is not raised, this is NOT the end of the world for the USA, yet. Whether a deal is made or not, the US dollar will continue to have value. And while in theory it could significantly drop in value if there is no agreement to raise the debt ceiling, it is too early for a complete collapse of the value of the US dollar–there are still other prophetic events that I believe need to take place (such as the deal in Daniel 9:27), BEFORE the US dollar will become worthless. The USA dollar will NOT totally collapse (become worth a fraction of its purchasing value) until shortly before the start of the Great Tribulation (cf. Habakkuk 2; Jeremiah 30:7; Matthew 24:21).

Second, although national repentance is the only real long-term hope for the USA (and it seems to be too late for that), the political leadership in the USA has largely ignored that approach. The carnal “solutions” offered by both political parties in the USA will not get it back on track economically. Its economy may appear to do better for a while if a debt deal is reached, but in the long run, the USA does not have real solutions to its economic woes. There are carnal solutions that the USA could do now (mainly related to energy production) that could help extend the situation, but too many of its leaders have rejected God and have the type of “reprobate mind” that prevents them from seeing even those “convenient” options (cf. Romans 1:18-32, KJV). The debate I have heard from some politicians and pundits on the whole debt ceiling matter strongly suggests to me, at least, that many do not understand production, economics, and job-creation.

Third, it is likely that the USA will not fully default on its debt. So, even if no deal is reached, the interest, etc. on the debt will be paid for some time. There is no way that I believe that US President Obama is going to allow a massive default prior to the election date in November 2012.

Fourth, in the low possibility that the USA does default on its debt, this will have fairly major impacts on prices and imports for the USA. And while, to a degree, I expect a future default (or enough inflation/increase of money supply that it is about the same as a default), that seems not highly likely right now.

Fifth, presuming some deal is papered together by the politicians, gold could drop in value for a while (though it may not for various seasonal and economic reasons). Yet, while the USA dollar will ultimately be worthless, the Bible shows that gold will have value AFTER the nation with the strongest fortresses is taken over (Daniel 11:39-43).

According to Bible prophecy, the end of the Anglo-dominance of the world is coming, and the final age of the Gentiles will be here in a relatively few years. The debt of the USA is a strong indicator that not too many more years are left.

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?