The worldwide debt reset could be pushed off for another decade or so using smoke, mirrors, bailouts and bail-ins, but sooner or later it will occur. The debts of nations are at the point where only the interest on national debts are being paid. The principle on national debts is no longer repayable. It will never be paid.
By a debt reset, I mean that national debts will not be paid. Nations will agree to start over under a new monetary system.
The reality that we are living in is that most nations are so indebted that they cannot raise enough tax revenue to even pay their bills. They borrow more each year just to get by. They can only do this as long as others are willing to give them credit. Nobody is going to knowingly invest where they know they are going to lose money.
Some nations cannot pay the bills and they cannot borrow either. They then resort to printing more money to make ends meet. That devalues their currency and that leads to an inflation spiral. It only ends with a total economic melt down. An example of that is now playing out in Venezuela.
The United States is the biggest economy in the world, so I will use the U.S. as the example of western indebted nations. Keep in mind, that there are industrialized nations in worse financial shape.
In eight years under President Obama the national debt in the United States has more than doubled to 20 trillion dollars. By 2030, that debt will probably rise to 40 trillion dollars. That figure does not include unfunded or underfunded liabilities for future entitlements.
By 2030, America will be paying 2 trillion dollars a year on the interest alone if interest is at the historical average of 5 percent. Let’s assume that the money raised by the federal government also almost doubles over those thirteen years. Let’s assume that government taxes will bring in 6 trillion dollars in 2030 (taxes now bring in $3.25 trillion – they borrow the rest). That means that one in three tax dollars raised in 2030 would go to pay the interest on the national debt.
That debt load obviously would be at the point where nobody would lend to America at normal interest rates anymore. And at higher interest rates even the interest on the debt could not be paid. This is what happened in Greece. That nation was bailed out at the last second by Germany. Greece will continue to need German bailouts in the future or they will default. The economy of the United States is far too big to be bailed out by anyone. When the United States can no longer borrow, previous creditors will be stuck with bad debt.
So who are the lenders that will lose? It will be the savers. To a limited extent that is already being demonstrated. Inflation erosion of the wealth of savers is ongoing. The Federal Reserve bank has expanded the money supply and held down interest rates to less than that of inflation since 2008. Over the last eight years, policies of the U.S. Federal Reserve with their money expansion and zero interest rates robbed traditional savers of at least fifteen percent of their savings when adjusted for inflation.
Over the last few years, a couple of nations also allowed bail-ins where savers were robbed of a good chunk of their savings. National federal reserves manipulated interest rates and national governments allowed bail-ins. These policies make savers the dupes of those borrowing from banking institutions.
Banksters got away with this because politicians are bought and paid for by banking institutions and until recently there were few other safer places for common people to put their savings.
Those that continuously lose ground when putting savings in banks will see no reason to save for the future. The millennial generation does not save. This year the interest rates have risen slightly but it is still less than that of inflation. Any future economic downturn would bring a prompt return to zero or even negative interest rates.
The future policy for economic downturns in most nations now includes negative interest rates and bail-ins. Banks that get in trouble will be allowed to rob savers to pay off their debt. During the next downturn those that have deposits in financial institutions that buy debt could lose part or all of their wealth. Don’t be deceived. Government will certainly steal your savings, or let banksters do it, if they thought that was necessary to prevent economic and social breakdown.
I think the debt crises in the nations of the world will be one of the things that the Antichrist will solve. When debt makes federal reserve notes only good for toilet paper, this world leader will come up with a scheme for a worldwide debt reset. It also will be the cashless electronic buy/sell system of Revelation 13.
The debt reset will wipe out debt but it will also wipe out quite a bit of wealth. Savers in banks will lose just about everything. Those hording gold and silver for these days will be in for a shock. Gold and silver will not help people in the days of the Antichrist.
Jas 5:1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.
A man will be only worth what the government controlled system says he is worth. All he once owned will not even be his to claim outside the 666 electronic system. You can’t buy or sell without the number or the mark because that system will be the only monetary system allowed on earth.
The devices and the chips to monitor and track people are developed. They will be refined over the next decade. The satellite communications to connect people from anywhere on earth to the cashless system are to be in place by next decade.
Scandinavian nations have already announced that they are implementing a cashless society. India presently is forcing people to stop using cash. The banks of the world plan to phase out cash soon.
I think the astute can see the handwriting on the wall. When national economic systems fail because of debt the cashless electronic debit system that starts over will be welcomed.
Some Christians keep looking for the next Jubilee. I have news for them. The next Jubilee is the Jubilee declared by the false Christ. That Jubilee will bring about a worldwide debt reset among other things. The electronic cashless system that banksters dream of will be implemented. I do not think that this is the Jubilee that certain Christians expect, but it is the next Jubilee that the world will get.
Bible prophecy foretold this cashless economic system. From what we already see taking place, we should see that this worldwide cashless system is only a decade or two away. The need for a worldwide debt reset makes a new economic system certain before the 2030’s.