The economy around the world is in a shambles. The US has a debt limit ceiling of August 2. However, by that time they must have already come to an agreement on whether to raise it or not because any proposal to raise it must have gone through Congress first, and that takes a minimum of two weeks or so. The talks on the debt ceiling are breaking down like a shreds of a popped balloon. Anger, threats, and inability to come to a conclusion have been the hallmark of these talks, with the world watching and getting more fearful and angry by the minute.
US default is inevitable, says CNBC analyst. Just a few years ago just saying default and US in the same sentence would have evoked laughter. Now they are talking about its inevitability, the only question remaining as to what KIND of default the US will have.
“It is inevitable that the US will default when the debt ceiling deadline on August 2 comes around, David Murrin, chief investment officer at Emergent Asset Management told CNBC. “It’s inevitable that the US will default – it’s essentially an empire which is overextended and in decline – and that its financial system will go with it. The question is: does it default when it is forced to by the outside world, probably the Chinese, or does it take the option to default on its own terms in such a way that it may have a strategic advantage,” he said.”
I’m flabbergasted that just four years ago America seemed to be on top of the world in every arena, including economic, and now we are taking of not only the inevitability of default, but of what KIND of default. Sovereign default is what we used to make fun of in the Banana Republics, but now Obama is vehemently denying that we are one. In high finance, vehement denials always come just before the thing that is being denied comes about.
The ‘Eurozone’ also has difficulties, worse ones actually. While the US has been staying the execution of our economic system by printing more money, Europe can’t do that. Those in the zone, the EU, have one currency. One nation just can’t go off and print more drachmas, because there is no such thing any more as drachmas. Or Lira. or Escudo. There was an emergency meeting on Italy’s looming default that ended with no solutions. There is a meeting scheduled for this Friday about Greece that is already in disarray. Ireland was cut to junk status. Italy is coming apart like a $20 suit.
Greece is rumored to be preparing to leave the Eurozone, but denies it vehemently. Remember the truism that in economics the more vigorous the denial, the more true the thing is that they are denying. The Eurozone crisis is growing larger while stocks dip and slide, and it is reaching a critical point with Italy’s cracks being added to the already crumbling foundation.
Those are some of the details of what is happening in the economy and how close we are to total collapse. A US default, and/or Greek, Italian or Irish would pull everyone else down with them. And I haven’t even mentioned Spain and Portugal.
Now for the bigger picture. These meetings in the US and Europe are held with the greatest minds on the subject. They are the top officials. They have the most experience, the longest resumes, the most power. In some cases, they are the people who put the economic system together, and have intricate understanding of how it works, and therefore should have intricate understanding of why it isn’t working. But they don’t. They try and try and fly here and there and go to and fro and meet and meet and still things are worsening.
This situation of economic gridlock causing so much consternation is exactly the beginning of fulfillment of prophecy. In Luke 21:25 it says: “There will be signs in sun and moon and stars, and on the earth dismay among nations, in perplexity at the roaring of the sea and the waves.”
Barnes Notes explains the state of distress from the Greek word used: “The word translated “distress” denotes anxiety of mind – such an anxiety as people have when they do not know what to do to free themselves from calamities; and it means here that the calamities would be so great and overwhelming that they would not know what to do to escape. There would be a want of counsel, and deep anxiety at the impending evils.” Is that now, or what?!
Further, the roaring of the waves does not denote tsunamis or hurricanes but is parallel to this scripture from Isaiah 17:12 “Oh, the raging of many nations–they rage like the raging sea! Oh, the uproar of the peoples–they roar like the roaring of great waters!” Is that happening now, or what?! The ‘Arab Spring’ uprisings, the anger of the people everywhere at the leaders who can’t and won’t and don’t fix this, Greek and UK riots on austerity measures…Just now there have been successive bomb blasts in Mumbai, killing many.
I personally think the remainder of the summer will be really interesting prophetically. Between the deadlines regarding Israel and dividing of her land, either through the peace process or a unilateral vote at the UN, and the deadlines for resolving the debt before it crushes us, and continuing natural disasters hammering away at the economy, I don’t think we will have much longer before the cracks in that old foundation give way to a heap of rubble that used to be our economy. And prophecy students know that at the middle of the Tribulation, the antichrist has gained so much power that he can monitor every single person on the planet and include them or exclude them from buying or selling. (Rev 13:15-17). For there to be so much power and capability on one person’s hands there must have been a reformation of the economic system to allow it. I think we’re on that brink.