“It’s The Economy Stupid!” James Carville
The #1 issue facing America is the economy. Why are the economy’s problems so serious? Because everyone recognizes them, but nobody agrees how to solve them—or which are the most important. I’m going to use two posts to explain the severity of the issue and scare you all.
If you’ve ever studied Biblical End-Times Prophesy, you know that the United States is not mentioned as a player in these events. My opinion: We won’t be important enough to bother with. The simple fact is we can’t keep spending more than we earn. Neither political party has the solution. One day in the very near future the U.S. won’t be able to control the value of the dollar.
Democrats demand we keep spending willy-nilly on everything, but defense. Republicans demand we stop spending and cut back on everything, but defense. The Democrats believe military spending takes money away from the needy. Republicans believe healthcare spending and Social Security entitlements should be cut to save money. Both sides are totally wrong. With the danger America faces worldwide, military spending is essential to our security. And the fact is Medicare won’t quit on us for another 8 to 12 years, and Social Security won’t be fully bankrupt for another 12 to 15 years if we don’t do a thing.
The problem is that past, present, and future political greed causes our politicians to spent money on frivolous pleasures and projects, instead of building sound infrastructure and making long-range financial decisions for the good of the country. U.S. debt is approaching 20 trillion dollars and no one has a solution. I don’t. I have practical suggestions that will delay the inevitable, but a world financial collapse is coming.
Experts guess 2015-16 the axe will fall. The U.S. deficit will destroy the value of the dollar creating first an inflationary skyrocket the likes of which you’ve never seen. The U.S. dollar is the world’s currency. Close to 100% of the world’s transactions are valued in dollars. Other counties love the dollar. They cover their risk by buying T-bills and other American dollar-based financial items because, after all, the dollar just can’t fail. But it will.
Question: What makes economies thrive?
Answer: Faith and trust.
Question: What happens when people lose faith and trust?
Answer: Economic collapse. Most countries are already losing faith in American investments because of deficit spending. Soon they will stop investing and begin withdrawing. The banking system will experience runs and will collapse. As a reaction, the United States will realize it has to finance its own debt and will raise bond interest-rates to attract investors. Other interest rates will go even higher. Small businesses will go bankrupt, large business will cut to the bone and may still fold, and unemployment will reach as high as 35 to 40 %.
The rest of the world—Russia, China, and Japan will fall in equal proportion. Get the picture. I’ll stop here to allow you time to throw up, write your congressman, or, as I am, pray to Jesus that He comes quickly. Then wipe my mouth and send out Part 2.