Fitch, the bond-rating agency, has “issued the starkest warning to date that the U.S. Government will lose its AAA credit rating unless [it] acts to bring the budget deficit under control…” (see first link below). Fitch warns that the “U.S. must cut spending and raise taxes to cut its deficit to save its AAA rating.” While Fitch warns that the USA’s prized AAA rating could be dropped within 3-5 years, it is likely that it worded its grim warning very cautiously. Because there is not the slightest indication within the Obama administration or the U.S. Congress that budgetary restraint or fiscal stability will be coming any time soon, the USA’s AAA bond rating may be gone before we reach that 3-5 year time horizon.
It is not only the USA which is at risk of a national bond rating downgrade. Fitch also warned that the United Kingdom and France also face a downgrade of their national bond ratings if they do not shape up financially as well (see second link below).
Fitch noted that the U.S. dollar’s status as a global reserve currency is shielding the USA from a bond downgrade right now. The report indicates that bond rating agencies would already have lowered the USA’s and the UK’s bond ratings if it were not for their role in global finance. However, previous blogs have documented that many nations are increasingly angry with the budgetary recklessness coming from the U.S. Government and the Federal Reserve Board, and more nations are openly calling for a new global reserve currency to replace the U.S. dollar. If that happens, the USA’s AAA rating will likely be downgraded very quickly.
Such a downgrade would have serious consequences for all Americans. The first link warns that “a U.S. downgrade would rip the anchor from the global system and pose a grave risk to stability.” Revelation 17-18 prophesy that the global monetary/financial/commercial system of the modern globalist world (called “Babylon the Great” or “the great whore” in these chapters) will experience a very hard fall in the latter days (see Rev. 17:16-17) and be replaced by a new global system called the “beast” power.
The Fitch warning that a downgrading of U.S. bonds is, essentially, all but sure to happen in the future gives one more warning that the fall of Babylon the Great is drawing nearer. When it falls, no one will be able to put the pieces together again (as Rev. 17:16 warns). While we know that a global beast system will replace the current Babylon the Great system, we do not know if there will be a seamless transition to a new financial system or whether there will be a period of global instability before the beast figure arrives as a “savior” who will “make the trains run on time” all over a troubled world. We likely will see these prophesies fulfilled within a few years.