Commentary on world events that relate to Bible prophecy and on Rapture Ready issues world events.

Aug 8, 2011

Beyond the Point of No Return

It is difficult to recall a time when the legislative process in Congress has reached such a level of absurdity. After months of high drama and debate over the debt ceiling, our elected leaders finally produced a bill that would have little impact on the river of deficit spending flowing from Washington .

The nearly $1 trillion in cuts are spread over a decade and are skewed toward the end of that period. We don’t start saving a single penny until after the national debt has already reached $16.7 trillion. All the bill does is slow the growth of government spending from 9 percent to 8 percent per year.

Even if Congress cuts $2.4 trillion out of the budget over the next ten years, we will still be running annual deficits of more than $1 trillion. Before the agreement, our debt was projected to reach $28.6 trillion by 2021. It is now targeting a debt of $26.2 trillion.

There is already a huge hole in the numbers being used by the government. For the current fiscal year, Washington estimates GDP growth at 4 percent. We now know the actual growth for the first half of 2011 is below 1 percent. Unless the GDP sees a dramatic turnaround, the federal budget will be off by $3.1 trillion.

John Mauldin, president of Millennium Wave Advisors, says that Congress must cut $10 trillion over the next decade. Make no mistake, a trillion a year is a huge task and it will cause pain, but doing nothing will only create more pain. "We don't want to become Greece," he warns. If we fail to address the problems now, we'll have to "raise taxes to levels nobody can comprehend," he argues.

I have zero faith in the ability of the new twelve-member debt reduction panel to have an impact on the deficit. We've had several of these types of panels in the past, and Congress has always ignored their recommendations. If our politicians are too cowardly to make the most minor decisions on entitlements and taxes, it's doubtful the guidance from a "supercomittee" would be enough to spur them to action.

The key driving force behind our growing debt is our aging population. Over the next few years, millions of baby boomers will switch from "taxpayer" to "entitlement beneficiary." In 2010, there were 3.7 workers per retiree. In 2020, there will be 2.9, and in 2030, only 2.4. Just to keep things equal, the average worker will have to endure a 35 percent rise in taxes.

This weekend, Standard & Poor’s downgraded our credit rating from AAA to AA+. I think all the ratings services are ten years too late. The downgrade we need to worry about is one that might come from the nations that hold our debt. Both China and Russia have had sharp words about America 's fiscal policy. Russian Prime Minister Vladimir Putin recently said that the United States was a "parasite" on the world economy.

The road to ruination has many signposts, and we just passed one that has marked the doom of many economies. When the president signed into law the new bill, our debt shot up by $238 billion. The new borrowing caused our debt to instantly reach 100 percent of GDP. Our total public debt now stands at $14.6 trillion.

History shows that every nation with a 100 percent GDP debt load will eventually suffer a financial collapse. When a nation amasses this amount of debt, the power of compounding interest creates a gravity that is nearly impossible to escape.

The debt load is only going to get worse. If we make it to 2021, our debt to GDP will be over 180 percent. Since Greece needed its first bailout at 120 percent, there is no way we will be able continue down that path. America is the largest debtor nation in history, and there is no other big enough to bail us out. In some of the recent debt auctions, the Federal Reserve has been buying over 70-80 percent of out Treasury and bond notes. We are obviously at the point where we need to print money to fund our government expenses.

An economic implosion of the current financial system is almost required by Bible prophecy. During the Tribulation hour, the center of financial power will be in Europe and the Middle East. America has no leading role in the end-times scenario.

Knowledge of the precarious state of the world should help keep us focused on the eternal realm. True riches are not based on gold, bonds, and fiat currency. All who trust in Jesus Christ have a wealth that cannot be measured or appraised in any earthly market.

"Eye has not seen, nor ear heard, nor have entered into the heart of man the things which God has prepared for those who love Him" (1 Corinthians 2:9).

-- Todd

Prepping for the Crash

The Dow Jones Index fell more than 500 points on Thursday just past. Panicked European markets started the slide, and it is uncertain where the plunge will end. Fear is on the rise that a Great Depression-type economic crash is coming. Even the normally optimistic talk-show host Rush Limbaugh, who pontificates from his radio bully-pulpit about America’s resilience against cyclical damage to the economy by liberal presidential administrations, is heard these days grumbling in undertones of trepidation. He worries about America’s chances of survival with regard to the current debt crisis and the government’s refusal or inability to stop the profligate spending.

No sooner had President Obama signed the just-passed legislation to raise the nation’s debt ceiling, thus averting U.S. financial default, than monetary markets around the globe began reacting negatively. Wall Street stocks fell more than 2 percent. Japan’s Nikkei fell approximately the same amount. Standard & Poor’s economic outlook presented a bleak assessment; Moody’s ratings service placed Washington’s AAA credit score under a “negative outlook.” Dagong, China’s credit agency, downgraded America’s credit from A+ to A.

The S&P downgraded U.S. credit rating on debt over the weekend to AA.

No matter whether there is a temporary eventual uptick from these negative reactions, it is obvious that America’s influence on the world’s financial markets is profound, just as we have said in these Nearing Midnight columns time after time. The monetary moguls of planet earth are not favorably impressed with this nation’s printing of more money to cover debts. No other nation in history has long been able to sustain such economic madness without collapse. Now is different from any other threatened collapse because America’s crash would bring the entire world imploding to unprecedented depression.

The intricately linked ties every nation has to this economically crippled colossus called America finds the fiscal movers and shakers of the world doing much the same things many lesser mortals are doing these days as they cast their wary glances at the bleak outlook. While many average Joes are buying silver, gold, and other tangible commodities, and some are storing food and preparing to survive what they see as a coming world economic collapse, the power brokers at the top are prepping in their own special ways. They have been doing so for some time.

The monetary masters of the world know–have known for some time—that the current way of money manipulation is unsustainable. Things have got to give at some point. As Todd and I have many times discussed, it is utterly amazing that America’s, thus the world’s, economy hasn't long since come crashing down. It is my contention that it is not these economic gurus at the top that have been able to prevent such a collapse, but the very hand of God that is holding things together –allowing the massive bubble of pseudo-prosperity to build.

For whatever the reason the fall hasn’t come, the financial finaglers are more than aware that a crisis could bring cataclysm in terms of economic destruction. These are using the phenomenal technologies that have developed over recent years to prepare for such catastrophe, on a much grander scale than are the average Joes who are prepping for bad times ahead.

The collapse is coming; of that they are certain. The key in their prepping, I believe, is control. They want above all else to maintain control as things tumble. They want to be sure things are in place to bring the economic structure of their world down in a somewhat orderly manner so the framework and substance of their wealth aren’t scattered and far-flung. They want to have all materials within easy reach so as to be able to begin immediately reconstructing their kingdom to their liking.

It is interesting that the mindset of such planning encompasses the entire political spectrum, left to right. As a matter of fact, it is a conservative initiative that is at the nucleus of one such element to help control monetary matters at the basic consumer level through advanced technology.

Internet providers would be forced to keep logs of their customers' activities for one year--in case police want to review them in the future--under legislation that a U.S. House of Representatives committee approved today. The 19 to 10 vote represents a victory for conservative Republicans, who made data retention their first major technology initiative after last fall's elections, and the Justice Department officials who have quietly lobbied for the sweeping new requirements…the information that commercial Internet providers are required to store to include customers' names, addresses, phone numbers, credit card numbers, bank account numbers, and temporarily-assigned IP addresses, some committee members suggested. By a 7-16 vote, the panel rejected an amendment that would have clarified that only IP addresses must be stored. It represents "a data bank of every digital act by every American" that would "let us find out where every single American visited Web sites," said Rep. Zoe Lofgren of California. ("Source: House Panel Approves Broadened ISP Snooping Bill," CNET News, 8/1/11.)

The intrusion into the lives of and control of the American consumer has long been in development. Computers and the public's ever-increasing integration with the Internet through commercial transaction is one of many technological wonders that will give the would-be masters the control they believe they need to affect a manageable collapse of the U.S. and global economies, when such a fall eventuates.

The prepping continues apace, and the technologies for economic bondage are progressing geometrically. However, God’s prophetic Word foretells a different scenario for the ultimate system of control that will come from present planning by the globalist elitists–the Antichrist system of Revelation 13:16-18. Daniel the prophet was given the prophecy through God’s angel, who interpreted for him Babylonian King Nebuchadnezzar’s dream involving history’s world geopolitical/socioeconomic kingdoms. In foretelling what would become of man’s attempt to establish a one-world government that excludes Almighty God, Daniel was told to prophesy the following.

Thou, O king, sawest, and behold a great image. This great image, whose brightness was excellent, stood before thee; and the form thereof was terrible. This image's head was of fine gold, his breast and his arms of silver, his belly and his thighs of brass, His legs of iron, his feet part of iron and part of clay. Thou sawest till that a stone was cut out without hands, which smote the image upon his feet that were of iron and clay, and brake them to pieces. Then was the iron, the clay, the brass, the silver, and the gold, broken to pieces together, and became like the chaff of the summer threshing floors; and the wind carried them away, that no place was found for them: and the stone that smote the image became a great mountain, and filled the whole earth. (Daniel 2:31-35)

All the prepping done by the would-be world architects who plan to bring about a new economic order from the coming collapse is destined for failure. Their attempt at rebuilding, leaving God out of their plans, will be crushed by the returning King of all kings –the Lord Jesus Christ. The only prepping that can assure a safe, secure future is the preparation already accomplished by Jesus Christ. He did it all on the cross at Calvary nearly two thousand years ago. He is the ark that will provide shelter from the destruction that is coming.