World Leaders Worried About Debt Downgrade Fallout

World Currencies

World financial leaders are worried about the fallout from increased US debt and the recent USA government credit downgrade by S&P:

(AP) TOKYO – The world’s leading economies on Sunday urgently discussed the stability of financial markets after a historic U.S. credit downgrade rattled investors already worried about European debt crises.Deputies from the Group of 20 advanced and emerging economies talked by telephone Sunday about proposals to minimize market shocks, South Korea’s central bank said. And the financial ministers from the Group of Seven economies planned talks before Asian markets open Monday. http://www.cbsnews.com/stories/2011/08/07/501364/main20089184.shtml?tag=stack

Dollar to Be ‘Discarded’ by World: China Rating Agency

In comments emailed to CNBC, Guan Jianzhong, chairman of Dagong Global Credit Rating, said the currency is “gradually discarded by the world,” and the “process will be irreversible.” http://www.cnbc.com/id/44050325

As I reported yesterday, the stock market in Saudi Arabia dropped yesterday in an apparent reaction to the USA debt situation (see Saudi Arabia and China React to U.S. Credit Rating Drop). However, it is one of few markets that is actually open on Saturday, so the rest of the world is wondering if much can be done to prevent drops in Asian markets which will be open relatively soon (while it is Sunday in the USA, it turns Monday in Asia).

In other parts of the Persian Gulf, financial markets opened on Sunday, and have not done well:

Most Gulf Stocks Tumble

Wall Street Journal – Tim Falconer – 7 August 2011
DUBAI—Stock markets in the Persian Gulf region tumbled Sunday as a downgrade of US government debt by ratings firm Standard & Poor’s

The massive accumulation of trillions of dollars of US government debt in the past few years is frightening investors as well as world leaders. Many are now staring to realize that this cannot continue and that the days of the US dollar being the world’s reserve currency are now numbered.

Here is some of what I wrote in 2009 in my book 2012 and the Rise of the Secret Sect:

Barack Obama has…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’?
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 2:3,6–8).

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)…

It would seem that once the U.S. dollar totally collapses people all around the world will consider that even if the Euro is strong, having a more gold-backed currency would be safer. Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro) may greatly increase European credibility, prosperity, and influence around the globe.

Thus, I have been warning for years that the USA would face a crisis like it currently is and that it ultimately will get much worse. The fact that a Chinese financial leader stated that the US dollar is being “gradually discarded by the world,” and the “process will be irreversible” should tell skeptics that the basic position that we in the Living Church of God have had about the US dollar is being confirmed by secular sources.

The current budget/debt/borrowing problems in the USA are telling the world that the USA really does not intend to pay down its debt–and the world is starting to realize this. This is dangerous. While the USA will somehow muddle through for a while, it has not made itself look like a first-rate financial power during the past few weeks of public debate on its federal budget. And foreigners will remember this for a long time.

Eventually, despite Europe’s problems (cf. Daniel 2:42-43), Bible prophecy shows that Europe will be THE major economic superpower for a short time. And as I have written many times at COGwriter, I expect the euro to drop in value from time to time, and even to plummet should major civil unrest occur, until the euro (or whatever replacement currency Europe would have should the euro be dropped, including a possible world currency) becomes the actual world reserve currency essentially replacing the US dollar.

For details on those prophecies, check out the following:

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?
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?
Might German Baron Karl-Theodor zu Guttenberg become the King of the North? Is the German Defense Minister one to watch? What do Catholic, Byzantine, and biblical prophecies suggest?
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?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo (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 nations? Why might God allow them to be punished first?
Will the Anglo-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?
Canada in Prophecy: What Does Bible Prophecy, Catholic Prophecy, and other Predictions Suggest About the Future of Canada? There are prophecies that suggest involvement with Canada. And many are not positive about its future.
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?
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.
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?
Can the Great Tribulation Begin in 2011, 2012, or 2013? Can the Great Tribulation begin today? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?
2012 and the Rise of the Secret Sect This is a link related to a book by Bob Thiel (COGwriter). This link also has YouTube videos. This book documents and explains hundreds of prophecies. And since it was published, world events have aligned with at least 15-16 predictions in the book and many more will to come to pass.
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.