Bible Predicts Money Crash

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Debt Causes Money Crash in UScard"Riba" Destorys World Market


You Think the Earthquakes Are Bad? -- Wait Until You Read What Don Koenig Says About Today's Money... (article is from a Christian author)

 

Original Article from Christian Author..

Almost every nation of the world has such severe debt that just making the interest payments takes a large amount of their financial resources. Much of this world debt is owed to world bankers that then dictate their own economic policy to these countries. These policies do not favor the poor.

The largest economy in the world is the United States. The US government is currently more than 12 trillion dollars in debt and I project that to go to 15 trillion or more by 2012. Paying the interest on that huge debt in future years will cost about as much as what is spent on national defense (using modern historical interest rates and the cost of defense under normal peace time conditions).

The United States is now by far the biggest debtor nation in the world. For many years we have been importing hundreds of billions more dollars in goods and services than we are exporting each year. In 2005 through 2008 the trade imbalance averaged well over 700 billion dollars per year! Trillions of US dollars are now in the hands of foreign investors who at any time could dump the dollar causing a devaluation of the currency.

Just a few years ago, the US government was forecasting surpluses of trillions of dollars based on the stupid assumption that there would not be a downturn in the economy for decades. This foolish assumption was of course proven wrong and deficit spending in 2009 and 2010 will be at least two trillion dollars a year if everything is really counted. The only reason the United States is not yet feeling the pinch of spending beyond its means has been the record low interest rates. The low interest rates were brought about by Federal Reserve manipulation to stimulate the economy but interest rates eventually will have to rise. Soon all who need loans will be making higher payments and the US government will be paying much more to service the national debt.

Debt and unfunded liabilities promised through entitlement programs is now over 60 trillion dollars. This amount of money in non inflationary dollars is impossible to raise! Thus, the US is now technically bankrupt. In order to keep up the facade that the US is solvent for even another decade or two, one or more of the following must happen.

1. Taxes must be raised.

2. Government spending will have to be drastically cut.

3. Deficit spending will dramatically increase.

If taxes are raised, it will kill the economy and the debt load will get worse and not better. Spending will not be drastically cut because these types of cuts would never get through the political system. Therefore, massive deficit spending will take place. The monetary system will be inflated so that this debt can be paid by using a dollar worth only a fraction of what it is today. This means a much weaker dollar in the future and much higher prices for all goods and services imported to the United States (in short it means we should expect hyper-Inflation).

The best long term scenario is that the economy will expand for decades and we will partly grow our way out of this debt crunch (like we temporarily did under Ronald Reagan). But, I do not see stability for that length of time as even a remote possibility in this world full of crises. I think it is only a matter of time before a downturn in the economy or an unforeseen world event brings about the collapse of this house of cards.

The catalyst for a crash can come in any number of ways. One likely scenario is that confidence in the US dollar will falter. When this happens interest rates will have to rise dramatically to try to lure foreign investors to re-service our debt. Higher interest rates will then shut down our economy and less tax money will be raised. The debt will still have to be paid at the higher interest rate so the government will print even more money and deficit spending will increase. The dollar will fall in value against other currencies bringing about an inflation spiral in the United States and even more dumping of US dollars for a more stable currency.

Banks and financial institutions holding today's unrealistic low interest loans on property will go under, causing a collapse of pension systems and/or a taxpayer bailout that will worsen the deficits even further. Many with adjustable rate mortgages will not be able to make the payments and they will default on their loans. The foreclosed houses will be dumped on the market bringing a collapse in all home values. All this in effect will cause an inflationary depression in the largest economy in the world.

The fall of the US economy will have a domino effect and bring about a worldwide depression that will further depress the US economy and bring a full fledged inflationary depression worse than the great depression of the 1930's. When this happens most companies will go bankrupt and will be nationalized.

When I first wrote about the coming economic crash caused by debt in the year 2000, I said the stock market was three times higher than it should be. Since then the market has fallen to nearly half of what it was. It is still over valued. If investors today had a proper perspective on interest rates, the falling dollar, record oil prices, record deficit spending, the housing crash, terrorism and the foreign conflicts, the value of stocks would decline to less than half of what it is in the winter of 2009. Eventually it will!

Paper money is only worth what it can be traded for in real goods and services. The United States record deficit spending is putting cash into the economy but like all who spend beyond their means the bill will come due. Soon foreign investors will lose confidence and others that hate the US will deliberately cause more pain and the dollar will fall like a rock. The fall of the dollar has already begun. The US dollar only buys half of what it did in Europe only a decade ago. Only time will tell if the current fall of the dollar will briefly stop or continue descending into a worse crises. Meanwhile, if there is another downturn anytime soon caused by economics or terrorism, or further collapse of housing we will not be able to buy our way out of it again without hyper-inflation.

Inflationary depression worse than the great depression

Two thirds of the families in the US are now invested in the stock market compared to three percent in the great crash of 1929. When the economic crash comes, retirement accounts, mutual funds and most paper wealth will be wiped out. Most banks and financial institutions will fail, be bailed out, or be taken over by the government (causing further devaluation of the dollar). Most people making a living on the service sector of our economy will be unemployed. Prices on everything made in this country will either deflate or paper money will lose most of its value. The resultant depression will affect everyone and it will be the worst that this nation has ever known.

When the US economy goes down it will take the world economy with it. This economic collapse will cause great civil unrest all over the world, cities will be filled with riots and later with troops. Democracy will be dead and people will look to demigods to solve their problems. When the economy of the West crashes Russia may get ideas to invade the Middle East to seize its riches.

This day will not take some of the elite of the world by surprise. They know that this day is coming (Satan pulls their strings). At the appropriate time, the solution to the crises will be to abolish almost all debt and all savings and to start over with a new world economic system that will set the stage for the end time economic system described in the book of Revelation.

There is little question that the world debt crash is coming. It does not even have to start in the United States (it could begin in Japan, China, Europe or elsewhere). The only question is the timing of this crash. The world debt situation is so bad now, that a deliberate or accidental crash could occur at any time. The world bankers and world leaders have been putting off the inevitable by huge bailouts and extensions of debts but with these bailouts there is loss of sovereignty to world government and world bankers. They will continue in this mode until the house of cards collapses of its own weight, someone pulls a card, or some large scale economic disruption blows this house of cards over.

Students of Bible prophecy know that a new world economic system will be set up under a world government where no one will be able to buy or sell unless they take the "mark of the Beast". The formerly debt ridden world will embrace this worldwide cash-less monetary system after the crash because a new system will wipe out most debt and all nations will start afresh. This new economic system will promise great prosperity to the world.

Signs of the time

There is unparalleled greed and foolishness happening in the financial markets of today. People have lost their ability to reason. Like gamblers at casinos the day traders believe that they cannot lose. They think the stock market will always go up. When they take a loss they just double up on their bets. At the high roller's table there are the derivative speculators that are gambling trillions and whole corporations on the wheel of fortune.

We allow government to spend more than it collects and thus defer the bills to our children with little thought to the consequences it will have for them. The scripture says that the love of money is the root of all kinds of evil. Even many Christians have embraced these evils. The number one message preached today in Christian media and in pulpits is "give us money". God has blessed the United States because of His people but greed will ultimately bring correction.

The massive world debt load argues that borrowers have become enslaved by the lenders and will do their wishes. On a temporal national level this means that debt ridden nations must fall in line with the agenda of the globalist socialist elite or they will find themselves in a depression. In the longer term when Satan is ready for his man to take control of the world, this generation will see a total crash of the old economic system. The solution of the new economic system will bring the 666 mark of the Beast and enslavement.

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Update- I've been updating the debt figures every since I wrote this article and also inserting new information along the way and what I would be coming is now taking place (and it will get worse).

We are now at the point where we will either go into a full fledged depression or where government bailouts will cause hyperinflation. Which one happens is hard to say it may be out of our control and it makes little difference anyway. Either path will bring the worst economic depression in living standards in modern times to most of the world.

There is no answer to the problem because many people and nations have been living beyond their means for many decades amassing debt. So now the chickens have come home to roust. Our credit line is now maxed out. As a nation we cannot keep living like we have twice the income that we really have.

Trying to throw more money at the problem like our government is doing now will just make matters worse in the long run because this nation cannot afford to take on more debt.

Passing the costs of this downturn to the future is simply not going to work. First, there is no future generation that can pay this huge rapidly increasing debt. Second, nobody is going to be stupid enough to finance our debt at low interest rates.

The more risk of default or currency devaluation the more we are going to be charged in interest to finance our debt. We may be able to pay $15 trillion dollars of interest at 3 percent with a little pain but at 6 percent it becomes a major problem. Taxes would have to be raised causing a further downturn. If interest rates go higher than that which is extremely likely, we would either have to default on our debt or just create money and then find ourselves in a situation like what is happening in Zimbabwe.

We soon will all have a lower standard of living because spending more than we have is not possible forever. Worse than that we have amassed and are increasingly amassing huge debts that we can never pay off or even finance. That means the Fed will just create more and more dollars to pay our debts. Nobody has ever done that without causing hyperinflation. It is basic economics.

You cannot put more and more dollars out there and expect prices to stay the same. Those holding the surplus dollars will soon bid up the prices of goods and services paid in dollars causing hyperinflation.

Trying to stop the inflation would bring further downturn and default on our debts. When that happens major nations would no longer take U.S. dollars and imports of products would stop. What do you think that would do to your standard of living when you go to Wal-Mart and the shelves are nearly empty and what they do have costs three times as much? Or you go to the gas station and gas is $50 a gallon, if you can even get it at all?

If the spending beyond our means for decades has not been enough, many people in our nation have been gambling with your investments. They took your money and used it as security to leverage investments worth thirty times that amount.

Now bubbles have burst and they cannot pay their debts. So they either went bankrupt or were declared too-big-to-fail by the government and government bailed them out and took on their debt hoping that someday the paper and the corporations they took over will regain their value. But, they never again will be worth as much in inflation adjusted dollars and the difference will just be added to the national debt.

Things got so bad that everyone is now afraid to lend because the chances are good that they will never get paid back. That means that corporations cannot borrow to cover short term loses and expenses. So instead these corporations cut back on employees and benefits trying to keep their company afloat. Obviously when more and more people no longer have jobs and income they will start defaulting on their own debts causing a further downward spiral.

The government cannot even institute a policy to buy American or they risk a trade war with other nations in the global economy where other nations were also living beyond their means.

The trade war probably is coming anyway because unemployed people of nations will demand that their government do something to protect their jobs and all they can do to keep jobs at home is to allow protectionism. That happened in the 1930's and it made a bad recession into a decade long world depression. That now seems to be our future and along with the deflation depression or hyperinflationary depression that is bound to come, it will allow the rise of populist demigods who will convince people that they have the answers. In other words, we are now repeating the same mistakes of the 30's that led to the nationalist socialistic movements and the start of World War II. It will not be different this time except the stakes for the world will be much higher.

If I have a sure message to people who are listening. Learn to live on an income that is less than half of what you were living on in your good times, because within less then a decade your income will be far less and/or it will buy far less goods and services. Also prepare for big government trying to manage and run every aspect of peoples lives.

Certain people are going to think the only way to handle this is through forced government control and then rationing. Do not be surprised if there is civil breakdown and even secession movements when the people get fed up. It has already started in some nations. It is going to get much worse than most anyone imagines.

Try to network with mature astute Christians who understand these issues. It is going to be a tough time for everyone and those who stand alone will have little support.

The dam has now broken. Much more spending beyond our means is not going to solve a problem that was caused by spending beyond our means. It will only make things worse in the future.

The coming decade for the U.S. and the hard choices it makes will determine if it even survives as a nation.

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Comments   

#3 pauo wooliso 2011-08-16 12:12
he who endures to the end shall be saved, inshallah
#2 The Profit News 2011-06-21 23:17
http://www.911Bible.com ???? OMYGOD!
#1 muhammad 2011-03-19 13:48
Economics and inflation have alwayes puzzled me. I don't realy understand the mechanisms leading to financial crises or high unemployment rates. But i am pretty certain of the interest-crises link. Only because the Glaurious Qur'an teaches me iterest is not right. I follow this teaching all my life so far and have find no need for loans.

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