Debt, Then Hyperinflation, Then?
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)
With risking showing the obvious, notice the following two news items:
- The federal government will have to borrow more money than at any time in history.
- To raise that money, it will have to shove aside individuals, businesses, local governments and virtually all other borrowers, scooping up most of the funds available in the already-tight credit markets.
- By crowding out other borrowers, it will sabotage its own efforts now underway to restore private credit markets …
It will put great upward pressure on interest rates — and ironically… - It could bring on a new, more virulent debt crisis that deepens and prolongs the economic decline.
Over the weekend, the Zimbabwe central bank announced it is about to distribute a new $50 BILLION note! That’s Zimbabwe dollars. One U.S. dollar is worth 25 billion Zimbabwe dollars. One $50 billion note will buy two loaves of bread. Today. Probably only one loaf of bread by the time it gets into circulation.
That’s what happens when a country creates too much paper money, or equivalent credit.
Zimbabwe is not a poor nation in terms of natural resources or literacy. Despite a troubled history since gaining independence in 1980, the former Rhodesia has one of the highest literacy rates on the African continent, at 90.5 percent. And it has a huge asset base of natural resources, with deposits of more than 40 minerals including gold, silver, platinum, copper and asbestos, as well as forest land.
Yet this country is in the midst of hyper-inflation, something few Americans can imagine. The inflation rate is estimated at 231 million percent annually! No one actually uses the currency, making the new notes a waste of the paper they’re written on. The unemployment rate there is more than 80 percent, and the economy is shrinking at an alarming rate.
OK, Zimbabwe is an extreme example of what happens when a despotic government takes over the economy. Germany, after World War I, was another example — but also too far removed from our consciousness to make a current impact. Those images of German citizens pushing wheelbarrows full of currency down the street to buy milk are long forgotten, or a quaint memory.
It certainly couldn’t happen here. Our financial leaders are much too smart. And so are we. (I always believe that — except when I catch Jay Leno “streetwalking” and realize how little our citizens know about current events, much less history.)
The fact that the Congressional Budget Office has just announced a $1.2 TRILLION budget deficit for the year makes little impact. The fact that the president-elect says the stimulus package will involve huge costs on top of that projected deficit is taken with a yawn. After all, we’re America. Our dollar is still the world’s strongest currency.
If we have to print or borrow our way out of our problems, the world will just have to understand.
After all, they’re “stuck” with the dollars they already have earned from selling “stuff” to us. That’s the money they’ve loaned to us by buying Treasury bills, notes and bonds. They’re even willing to settle for zero percent interest on these loans, which is “proof” of how much they like us, and need us to keep our economy going.
As of July 2008, Japan and China led the list of countries owning U.S. Treasuries, with more than half a trillion dollars each. The U.K. owned 291 billion, and the oil exporting countries collectively have about $18 billion in U. S. Treasuries.
In all, foreign holdings of long term Treasury securities amount to more than half of our outstanding long-term debt.
Of course, these figures do not include other dollar-denominated investments that are owned by foreign investors or countries, including equities or agency notes. Put it all together and, as Blanche DuBois would have said: “We live on the kindness of strangers.”
Just how long will that “kindness” last?
How long will the world be willing to lend to us in dollars, even as we print and borrow more?…
The world is allowing us to create new money, which they continue to accept at face value while earning little or low interest. They’re betting on us to succeed in restoring economic growth. They’re learning they need us as much as we need them. For the moment, anyway. But they’re not extending any more credit to Zimbabwe.
And that’s The Savage Truth. http://www.suntimes.com/business/savage/1372758,CST-FIN-terry12.article
The above news items have not gotten close to how bad it will get in the USA.
The following, from the Bible, is now occurring:
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)
The following, also from the Bible, which I have referred to many times, will also occur:
For the vision is yet for an appointed time.
But at the end it will speak, and it will not lie…
‘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 of the end (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. Since we are near the appointed time of end, does it not make sense that this would be referring to the USA and its English-speaking allies?
And when our creditors rise up, that will be worse than what any news commentator I have seen has been alluding to.
For articles of additional related prophetic interest see:
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?
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 (the Hindus may have some predictions for the next decade as well). 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?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? When does the six thousand years of human rule end?
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?
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 my longest article on biblical and non-biblical prophecies that may involve Barack Obama.
Two Horned Beast of Revelation and 666 This article explains how the LCG views this, and compares this to Ellen White.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? What is ahead for Europe?
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