This post has a simple, but important message. In a headline story, USA Today has revealed that the US federal government has been deliberately understating the real size of the annual federal deficits. The truth is that the annual deficits are four times the reported total, and that the government has given itself a legal exemption from using the honest reporting practices that apply to state and local governments and corporations.
As one accountant puts it, “By law, the federal government can’t tell the truth (emphasis added).” Read that sentence again and think about the implications. You can’t blame just Obama and the Democrats. The article reports the Bush administration also deceived the public with the same dishonest accounting data.
In a previous post, I pointed out that the federal government has been deliberately understating the unemployment and inflation rates since the end of the Reagan years. The website, shadowstats.com, documents this fact and reports what the real unemployment and inflation rates have been in the USA in recent years (hint: they are much higher than the government admits). You can be sure the insiders all know the real rates, but it is obvious the government doesn’t want the voting public to know the truth.
So lets see where this leaves us. We have a federal US government that cannot be trusted to tell the public anything truthful about the real rates of unemployment or inflation or the real size of the federal budget deficits. This being the case, how can anyone trust anything the federal government does or says to be truthful? What is the real size of the federal budget deficit? Read the USA Today article and see. You better be sitting down when you read it.
The true data shows that the US federal government would likely be in the same fiscal mess as Greece if it didn’t have the ability to print money out of thin air and get away with it because the US dollar is the global reserve currency. It was long the global reserve currency because nations could trust the USA to handle its finances responsibly. The nations now all realize those days are over, and many nations are reportedly seeking to create an alternative to the US dollar due to the reckless profligacy of the US governmental and monetary leaders. I don’t know when an alternative global currency (or currencies) will emerge, but it is only a matter of time until such an event occurs. When that time comes, the USA will find itself facing the kinds of choices now being faced in Greece. Fiscal Judgment Day is coming for the USA.
When the global dollar-based financial/monetary system we know unravels, as Revelation 17-18 prophesies will most certainly occur in the time ahead of us, it will get very ugly. I urge you to read those chapters. Revelation 18 paints a grim picture of how this collapse will occur and verse 11 prophesies that “the merchants of the earth” (i.e., global multinational corporations) all mourn at the fall of the global trade system “because no man buys their merchandise any more.” That can happen because (A) there is such a deep depression that no one has any money, or (B) there is such inflation that today’s fiat currencies backed by nothing of intrinsic value eventually collapse and lose their value. In other words, fiat money itself becomes worthless. Given the wild monetary expansion of the US Federal Reserve Board, it is my opinion that the latter alternative is the most likely outcome. This will result in a period of global financial chaos, and out of it will emerge the final beast system (Revelation 17:9-16) with a new global money system (Revelation 13:17-18). I hope that you are making at least some preparations for this prophesied collapse of the global monetary/financial system. You can check my article, Should Christians Prepare for Future Hard Times?, for some good ideas about how to begin.