In a huge development, a Chinese bond-rating agency has formally downgraded the bond rating of the debt of the United States of America (see first link below). The Chinese rating agency, Daegong Credit Rating Agency, has issued new ratings which stripped US government debt of its prized AAA rating. The Chinese agency gave United States debt a rating of AA, but it also posted a “negative” watch on US debt—a signal that further ratings downgrades may be coming in the future. The Chinese agency also downgraded the bond ratings of the United Kingdom and France. The best debt ratings went to the nations of Norway, Denmark, Switzerland, Singapore, Luxembourg, Australia, and New Zealand.
This is an extremely important story. It is so important that the US establishment media has either refused to report on it or has attempted to “poo-poo” the report. An “establishment” attempt to minimize this very bad development for the US Government is found in the second link below (from Forbes). The second link doesn’t grasp the importance of this Chinese action, but it has a very useful chart of the nations’ bond ratings as seen by the Chinese rating agency. Let’s look at this from a biblical perspective.
Previous blogs have focused on developments which indicate that the collapse of the current global monetary/economic system, called “Babylon the Great” in Revelation 17-18, is drawing nearer. The formal downgrading of US Treasury debt by a Chinese rating agency is a very important benchmark in this process. It is especially important that this downgrade of US debt came from China, the world’s largest creditor nation. Proverbs 22:7 states an immutable financial law: “the borrower is servant to the lender.” You know the truth of this law whenever you get a mortgage, apply for a car loan, etc. Does the lender write up the contract or do you, the borrower, write it up? Obviously, the lender makes all the rules about the loans, and you, as a borrower, have no recourse but to sign and do what you are told if you want the loan. This immutable law is about to cause gargantuan changes in global markets and geopolitics. The USA, the world’s biggest borrower, has wanted to make all the rules about global monetary transactions and the US government and Wall Street have been dictating terms to China and all the world’s lenders. The downgrading of US debt by China’s ratings agency indicates that this upside-down dynamic is starting to change. We are heading for a future world where the global creditors will dictate terms to the globe’s borrowers, especially the USA—which cannot control its economic profligacy. When this change reaches its full implementation, life can be expected to change considerably for the worse for the USA.
The Chinese rating agency would not have taken this action unless it had the backing of the Chinese government. The first link cites China’s President, Hu Jintao, as stating just a few months ago that the world needs “an objective, fair and reasonable standard” for rating sovereign debt. The head of the IMF, Dominque Strauss-Kahn sees that the economic power is leaving the USA and the West and is moving to China and East. He is sited in the first link as stating; “Asia’s time has come.” The Chinese rating agency dutifully fulfilled Hu Jintao’s prediction and its chairman noted that “the current credit rating system does not correctly reveal the debtor’s repayment ability.” That is a gentle way of saying that the western ratings agencies are co-opted by the US government, the Fed and Wall Street into issuing ratings based on politics rather than economic realities. The second link cites a Forbes writer as saying the Chinese debt downgrade doesn’t matter because the Chinese rating agency is not recognized by the western world’s financial system as a “sanctioned” ratings agency. Let me translate that for you. What I think he really meant was that the “sanctioned” ratings agencies can be relied upon to issue whatever deceitful and unjustified ratings that “Babylon the Great” wants to have issued regarding the out-of-control debts being run up by the USA, the UK, etc. The writer of the second link is “whistling past the graveyard” in saying this doesn’t matter. Because China is now the world’s powerhouse creditor nation, its ratings agency carries great weight in shaping global economic realities. The more China becomes a creditor nation and the more the USA becomes a borrower nation, the greater will be the global gravitas of the Chinese ratings agency and the less credible will be the western ratings agencies. Even if Wall Street, the Fed and the US Government (“Babylon the Great”) doesn’t want to admit the importance of the Chinese action, every nation and every global investor just noticed what China has done and realizes that China is moving to overthrow the dominance of the western world’s deceitful “in house” ratings agencies.
China’s rating agency is totally correct in downgrading the US debt rating, in my humble opinion. The USA, the UK and many western nations cannot defy economic gravity indefinitely as they create money out of thin air and hope the world all agrees to pretend the magically-created “money” is real money. China sees what is coming. The third link (sent to me by a reader) reports that China is rapidly selling off its holdings of US T-bills and now has the lowest amount of US T-bills in its possession ever. China wants out of US T-bills before a future crisis hits in that market. China still has an immense amount of T-Bonds in its holdings.
The immutable law of Proverbs 22:7 now works strongly in China’s favor and against the interests of the barons of “Babylon the Great.” It will continue to do so until Babylon the Great’s global monetary/economic system is overthrown completely, as Revelation 17-18 prophesy is certain to happen. Judgment Day is coming for Babylon the Great’s financial system. Revelation 17:16’s language indicates that this fall will involve a very hard landing for the reckless high-flyers of Babylon the Great. However long the period of chaos is that follows the collapse of the current global monetary/economic system, Revelation 17-18 also prophesy that the “beast” system will emerge from the chaos after the fall of Babylon the Great. Revelation 13:5 reveals that the beast system will last a mere 42 months, after which it will be permanently destroyed by the return of Jesus Christ who will come at the head of a heavenly army of glistening angelic beings (Revelation 19:11-21). You can do the math when you see the beast system emerges from the prophesied wreckage of the current economic system. When the beast system emerges, the return of Jesus Christ will not be far off!
I hope that every reader of this blog has been acting on the warnings contained in my article, Should Christians Prepare for Future Hard Times? The Chinese downgrade of US debt is a big warning light about what is coming in the future. You do not know how much time you have left to prepare, and my article includes the advice of the US government itself re: how to prepare for future emergencies. It is better to start preparing a couple of years early than start preparing an hour too late when the prophesied collapse comes. It will come. God has guaranteed it in his prophecies. I hope you are taking God’s warnings seriously.
http://blogs.forbes.com/greatspeculations/2010/07/14/u-s-debt-rating-downgraded-sort-of/
