As the USA nears the well-publicized “fiscal cliff,” US Treasury Secretary Tim Geithner was interviewed by longtime Wall Street correspondent, Al Hunt, about the subject. As part of the interview, he asked Sec. Geithner if the Congressionally-approved “debt ceiling” should be abolished. Geithner responded strongly in the affirmative. This is, in my viewpoint, one of the most shocking statements ever made by a US Treasury Secretary, and it gives a clear insight of the direction into which the current governmental leaders are taking the nation (see link — If you are pressed for time, Geithner’s statement comes near the 7-minute mark of the interview.).
Congress periodically has to raise the legally-approved debt ceiling for the federal government because the US federal government spends so much more than it takes in in revenue. Democrats try to raise the ceiling without having to cut any federal spending when this occurs, and the GOP sometimes tries to force meaningful federal spending cuts as a part of approving the raise in the debt ceiling. Almost always, the GOP “caves” and the debt ceiling gets raised. This has been a predictable trend, but at least Congress retains the authority to set and enforce a debt limit if it ever develops the backbone to actually do so. What Geithner wants the Congress to do is to permanently yield this legislative power to the executive branch so the White House can forever spend as much as it wants and put the nation into unlimited debt increases without any congressional review. Geithner’s statement clearly reveals that this administration has no intention to ever conduct US financial affairs in a responsible manner that would get the deficit under control.
Very few Americans are aware of Geithner’s statement or what it reveals, but you can be sure the rest of the world’s nations saw and heard it and realized that the USA intends to behave irresponsibly in its finances…indefinitely. A recent post showed how many nations are already moving to conduct their foreign trade with other nations without any use of the US dollar. Geithner’s statement is highly likely to accelerate this trend as nations will seek to insulate themselves from the inevitable collapse of the US dollar that will eventually occur if US federal debt continues to skyrocket without restraint. If Geithner gets his wish, the death knell of the US dollar’s role as the world reserve currency will have sounded. I won’t predict when that will occur, but that outcome is certain if the world loses all confidence in the USA’s willingness to get its financial house and currency in order.
The Bible states that an inexorable financial law is that debtors are servants to lenders (Proverbs 22:7). What Geithner is advocating would make the USA a permanent “deadbeat” debtor nation. The world already realizes, I think, that the USA has no intention of getting its financial house in order, and nations have mostly stopped lending to Uncle Sam as they know the USA is a very poor credit risk. The only way the US federal government gets the money it needs to go one overspending is that the US Federal Reserve Board creates the money out of thin air and then “lends” this previously non-existent money to the federal government by having its Wall Street outlets “buy” the US bond debt with the fantasy money it created. If you think the nations of the world are going to allow this scam to go forever, you are a prime candidate to buy some ocean-front property in Nebraska.
As many previous posts have noted, Revelation 17-18 prophesy that the global monetary/financial system of the latter days will experience a global collapse and be replaced with a new global financial/political system called metaphorically the “beast” system in biblical terminology. The global world financial system has long been based on the US dollar as the global reserve currency, and the US Fed is the “heart” of the banking system which generates and pumps the supply of US dollars into the global economy. The financial recklessness of the policy advocated by Sec. Geithner tells all global lenders and trading partners that the US dollar cannot be trusted as a store of value into the future. Revelation 17-18 foretells this system will eventually collapse. Geithner’s statement presages the same thing.
Revelation 17-18 call the global financial/monetary system of the latter days “Babylon the Great.” If you want to understand why the Bible uses this term, please read my article: “What Kind of Captivity? — A Captivity to Babylon the Great’s Financial System.” When you realize that the modern global banking system originated in the sun-worship temples of ancient Babylon, you will see why the Bible calls it “Babylon the Great.”