US Bond Downgrades Coming in 2013?
The first link reports that Moody’s, one of the major bond-rating agencies, has warned the US government that its AAA bond-rating will be downgraded in 2013 unless the federal deficit is reduced in a dramatic and effective way. Indeed, unless major corrective action is taken soon by the White House and Congress, “the US appears likely to head down the same path as Italy, Spain, Greece and other debt-strapped European countries that waited too long…to gain control over their debts.” The article also reports that Fitch, another of the big three rating agencies also intends to lower the US debt rating unless “sensible” measures are taken to reduce the US debt in the first six months of 2013. It adds that Standard and Poors, which has already downgraded US debt, has warned further downgrades are imminent unless debt-control measures are taken.
The second link reports that Egans-Jones, a smaller debt-rating agency, has already given the US government debt a double-downgrade from AAA to AA- even though the major media have largely ignored this dramatic downgrade of US debt. It also cites a most ominous statistic that the USA is rated 140th among 144 nations “in terms of deficit to gdp ratio,” something that augurs very ill for the USA’s financial future.
The third link is a report that focuses on the pessimism that John Boehner, Speaker of the US House of Representatives, has concerning the chances that Congress will be able to enact the major reforms needed to avoid the sequestration debt-cutting process that will activate in January of 2013 if Congress does not agree to alternative debt-control measures. Most sources in the financial media expect the sequestration process to cause another official recession (or worse) because it will cut government spending, raise taxes on the middle class, etc.
Isn’t it interesting how Congress and the White House have set up the sequestration process so it occurs just after the election so the average American voter doesn’t feel the pain from the measures that the US government is about to inflict on the electorate? Any way you look at it, the year 2013 looks to be a year of financial reckoning for the US government when it will have to “face the music” regarding its many financial sins for the last few decades (under presidents of both parties).
The USA is, I fear, about to learn the truth of Proverbs 22:7′s statement that “the borrower is servant to the lender.” There is perhaps no more profligate borrower on the earth than the US federal government. This situation will cause much future pain for Americans. The fractures and stresses building up in the US financial system are getting steadily worse, and will eventually result in the fulfillment of Revelation 17-18, a prophecy which foretells that a major collapse of the global financial/monetary/commercial system (obviously dominated now by the USA and the US dollar) will occur in the latter days of our age. Revelation 17:16 prophesies that this collapse will be a traumatic one, and verses 9-13 foretell that the collapsed system will be replaced with a new global system ruled by “the beast” which is allowed by God to govern for only 42 months (Revelation 13:1-5) before Jesus Christ’s return with a heavenly army destroys the beast’s system and sets up a 1000 year millennial utopia on the earth (Revelation 20:1-6). Keep these timetables in mind as you watch world events fulfill these prophecies in the future.
Funding comes only from reader donations. The author, without pay, conducts research and writing, on his own time. If you find these posts to be informative, please consider a donation so they can continue without charge. Donations can be made via the PayPal “Donate” button or mailed to Steven Collins, PO Box 88735, Sioux Falls, SD 57109-8735.
If you found this post interesting, please share it with your friends.
Click here to visit my website homepage for more information.