The opening line of the first link from a Washington Times story states; “The United States looks increasingly likely to lose its gold-plated AAA credit rating in the next few months…” The article notes that the major rating agencies are warning US politicians that further delays in enacting major spending cut, entitlement reforms, etc. will risk further ratings downgrades for US federal debt.
As readers have seen, the Obama White House, the Democratic Senate and the GOP House of Representatives all failed to enact any such required actions recently, and all they did was “punt” the crisis down the road a few months. The cluelessness and/or spinelessness of the USA’s elected officials truly amazes me. Major debt downgrades of US federal debt will have disastrous consequences, but the elected officials don’t seem able to grasp this fact. Indeed, the article notes that “…some liberal Democrats have become downright dismissive of the credit agencies…”
One Democratic advisor is cited as stating: “…if our debt was really a big deal, investors wouldn’t be supplying us with capital so cheaply.” Is this guy tuned in to reality or does he really believe his own nonsensical comment? He clearly hasn’t been paying any attention to the actions and statements of the US Federal Reserve Board. As I noted in a post earlier this month, Fed Chairman Bernanke announced the Fed would be “buying” $85 Billion of US Treasury and federal agency debt each month for an indefinite period of time. As I pointed out in my earlier post, the reason the Fed is “buying” all this federal debt is that THERE ARE NO BUYERS ANYWHERE IN THE WORLD THAT WANT TO BUY SUCH EXCESSIVE AMOUNTS OF US DEBT. If there were any buyers for this approximately $1 Trillion/year in US Treasury and federal agency debt, the Fed would not have to step in and create money out of thin air in order to “buy” it. The inescapable conclusion is that demand for US Treasury and federal agency debt has vanished! Investors can see the institutionalized inertia in the US government’s inability to get its financial house in order, and they don’t want to buy any more of it’s debt. [I realize typing in all caps is like shouting at readers, but the situation is now so serious that a little “shouting” is in order.] The bottom line is that for over a trillion dollars of US federal debt per year, the Fed is the only “buyer'”and it “buys” that debt with fantasy money that didn’t actually exist until it was “loaned into existence.”
Personally, it is my opinion that the ratings agencies have long been pressured to not give US debt the downgrades it should have received long ago as Congress and a series of presidents continue to blow money like proverbial “drunken sailors.” One financial analyst states that without a major deal in the next two months, the debt downgrades are likely to occur. When that happens, reality’s harsh consequences may finally enter the halls of the Congress and the White House.
The second link is not on the debt downgrade issue, but it on a related topic. It details the currency wars that are now beginning among the major nations and which are likely to get steadily worse. The US dollar is being so debauched that it could fall precipitously in value without much warning.
These developments continue the steady trends toward the collapse of the current global financial/monetary system which was prophesied in Revelation 17-18 to occur in the latter days of our age just prior to the establishment of the final global “beast” system which will be in control for a mere 42 months (Revelation 13:1-5) before the Divine intervention of God and the return of Jesus Christ eliminates the beast system and its human leaders (Revelation 19:11-20:5).
The prophetic clock is ticking louder…. Are you making any physical and spiritual preparations for these events?