Tentative Deal to Increase US Debt to $16.7 Trillion

Last night a debt increase plan was tentatively agreed to. The mainstream news had a couple of points that I would like to comment on. Here are two related news items:

The deal announced Sunday night would increase the government’s $14.3 trillion debt ceiling by more than $2 trillion, which is projected to last through 2012. The deal depends on approval from both houses of Congress before Tuesday’s deadline, which is when the Treasury Department said the government will hit the debt ceiling. http://www.cbsnews.com/stories/2011/08/01/earlyshow/main20086245.shtml?tag=stack

$2.4 Trillion Would Be Largest Debt-Limit Increase in U.S. History

The bill to increase the federal debt limit that has been put before Congress today would increase that limit by up to $2.4 trillion, which would be the largest increase in the debt limit in U.S. history by a margin of half a trillion dollars, according to records published by the Government Accountability Office and the Congressional Research Service. http://www.cnsnews.com/news/article/24-trillion-would-be-largest-debt-limit

Since the current limit is $14.3 trillion, then the new debt limit is going top be about $16.7 trillion (presuming the deal is passed) around the end 0f 2012. In April 2008, when Barack Obama was running for president, the debt clock showed that this debt was $9.2 trillion (see debt clock photo on page 123 of my book 2012 and the Rise of the Secret Sect). This is a massive increase in debt in a relatively short period of time (less than 5 years).

It should be mentioned that this new $16.3 trillion figure does not include personal or corporate debt. It also does not include unfunded/underfunded government mandates like future social security and pensions. The “National Debt” also does not include items such as foreign investment in the USA outside of items like treasury bills. The Europeans, for example, have over $5,000,000,000,000 invested in the USA that could become nearly worthless if the USA defaults on its other debt or if its economy succumbs to the debt. That will not please them. Nor will it please other creditors, like China.

It also needs to be understood that increased debt increases the amount of interest to be paid, and likely will also force interest rates to rise and make the interest payments even higher. Some believe that because the highly limited spending “cuts” are for the future, that this agreement may still cause the USA’s credit rating to be lowered and perhaps will result in higher interest rate.

Reuters – July 31, 2011 11:22 PM excerpts…

The tentative U.S. deal to avoid a crushing debt default is at best a mild relief for the U.S. economy…it does not decisively remove the threat that the nation’s AAA credit rating could be downgraded, an action that would raise borrowing costs across the board, and the prospect of further cuts ahead will cut short any celebrating.

“This will have minimal impact on the economy. The cuts are not there for the first couple of years, which really makes you wonder if they’re really going to happen at all,” said Peter Morici, an economics professor at the University of Maryland. http://www.reuters.com/article/2011/08/01/us-usa-debt-economy-idUSTRE7700QI20110801

Few believe that there will be real major spending cuts, other than in defense and in a few other areas. But we will see.

If borrowing costs (specifically, interest rates) rise to their 1982 levels in a few years, the interest on the USA debt will likely exceed the total of all income tax revenues. This will likely raise interest rates to even higher levels. Levels that creditors will finally realize cannot be paid back. Taxes simply cannot be raised enough without destroying economic growth to solve this. The USA will have to discover some great new technology to extend its dominance (remotely possible), nationally repent (highly unlikely), or come to an end (most likely).

Here some excerpts from my book 2012 and the Rise of the Secret Sect related to Barack Obama, the USA, debt, and end-time prophecy:

Additionally, one of the first things that Barack Obama has done as U.S.A. president is to sign into to a law a bill that will greatly increase the debt of the U.S.A. He has also indicated that he will need to pursue policies that will increase that debt during at least his first administration, although he ultimately hopes to change that, as even he claims that the U.S. debt is “unsustainable.”

However, he and others may not realize that the Bible strongly warns about what will happen to a huge debtor in the end time. Notice what the seer Habakkuk wrote over 2,600 years ago:

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…
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’?
⁷Will 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 2:3,6–8).

Hence, Barack Obama seems to currently be fulfilling the part of that prophecy of increasing pledges/debt. And, of course, it is possible that the rest of the above prophecy might be fulfilled while he is U.S.A. president. This prophecy, if it is applicable to the U.S.A, also suggests that American dollars will ultimately be of no value to creditors by then (or to probably anyone else)…

Since 1973, the U.S.A. switched from being a creditor nation and instead has become the greatest debtor nation in the history of humankind. Because the U.S.A. owes alien nations trillions of dollars, it appears that the curse in Deuteronomy 28:44 of having to borrow from aliens is happening to it now. President Barack Obama has put forth economic policies that will (for at least several years) greatly increase that debt. Yet, increasing national debt like this will lead to destruction at the appointed time of the end (Habakkuk 2:3, 6–8)…

Habakkuk 2 makes clear that at the appointed time of the end, a great borrowing people will be destroyed (Habakkuk 2:3,6-8). Something similar is in Deuteronomy 28:42-51. No nation in the history of humankind has ever accumulated as much debt as the United States of America (because the U.K. may have the highest amount of per capita debt, its fate would seem to be similar). Yet, the relationship between debt accumulation and prophesied destruction remains unapparent to many.

And although President Obama inherited a debt-laden nation, his policies, according to his own public pronouncements, will lead to greatly increased U.S.A. debt for several years. These increases of debt are likely to go past the point of no return and become one of the final factors that will cause creditors to rise up and destroy the U.S.A. (Thiel B. 2012 and the Rise of the Secret Sect, released September 2009).

The Bible lists debt as a curse for disobedience (Deuteronomy 28:42-51). Creditors rising “up suddenly” to “plunder” the USA means the end of the USA.

The USA is the largest debtor nation in the history of the world and seems determined to fulfill the prophecies related to the end time debtor. It cannot borrow like it has indefinitely. And even the US President realizes that. But if you are an American, do you really understand how that may affect you?

And there are other ramifications. Notice something else from CBS today:

Sen. John McCain, R-Ariz., indicated on CBS’ “The Early Show” Monday that he would vote for the deal struck between the White House and congressional leaders on extending the maximum amount of the federal government’s borrowing authority, known as the debt ceiling, even if it meant having to “swallow hard” on cuts to defense spending.

What few pundits have not dared to say is that if the USA is not the leading economic power, it will also have to cease to be the leading military power. If this USA is not even to be a “mediocre” power, it will be considered vulnerable and quite weak.

My book 2012 and the Rise of the Secret Sect warned that, “Because of domestic economic concerns and international pressures, Barack Obama is shifting priorities away from defense spending… This will help lead to the destruction of the United States, when the Europeans are ready and the U.S.A. is not” (Chapter 8).

This is happening. If you have not yet read that book, you may wish to as world events continue to align with the biblically-founded predictions that it contains.

Events continue to align with biblically-understood prophecy.

Some items of possibly related interest may include:

2012 and the Rise of the Secret Sect This is a link related to a book by Bob Thiel (COGwriter). This also has YouTube videos related to 2012. The book has a chapter titled Barack Obama, the Future Islamic King of the South, and the End of America.
2012 y el surgimiento de la secta secreta 2012 libro del Dr. Thiel en Español.
2012 und das Auftreten der geheimen Sekte (German Edition) 2012 Buch von Dr. Thiel in deutscher Sprache.
2012 e o Surgimento da Seita Secreta (Portuguese Edition) 2012 livro do Dr. Thiel em português. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 16 já começaram a acontecer.
2012 e o Surgimento da Seita Secreta (Brazilian Portuguese Edition) 2012 livro do Dr. Thiel. Edição em português do Brasil. Este livro documenta e explica centenas de profecias. E desde que foi publicado pela primeira vez, pelo menos 16 já começaram a acontecer.
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? Eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. This article includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article on this page on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”, based up an early 20th century writing.