I have been saying all along that there will not be any real economic recovery any time soon. Now it looks like the markets have finally figured that out as well. By this fall unemployment will be rising again. When one third of the homes being sold in America are in foreclosure how in the world can people expect a real economic recovery? Here are just some of the things still coming down the pipeline this year and next. I think within a few years this will bring us under a dictatorship.
Even a higher rate of home foreclosures – It looks like there will be a trillion dollar bail-out of Fannie and Freddy by American taxpayers. These two federalized corporations virtually own all the mortgages in America and taxpayers have to pay their losses (yes taxpayers are paying all the costs of all the loan defaults and the loan restructuring programs, not the banks).
Bail-out of state and local governments – Federal taxpayers are going to be picking up the tab for the huge bureaucracies in the liberal states and cities that went broke because of all their socialist programs. Maybe you don’t like the socialism in California or New York? Tough! You will pay the costs of their huge government programs anyway.
Commercial real estate is collapsing – That will cause many if not most local banks to fail.
The FDIC will have to be bailed-out – The price will be hundreds of billions. The banks probably will be taken over by the too big to fail banks and we already know who pays the losses of those the government declares too big to fail.
Unemployment and welfare benefits will be extended and extended – Taxpayers will keep picking up the many billions in costs for the unemployed and underemployed. That is not going away before a world war. The alternative is riots.
The largest tax rise in the history of this country is due to go into effect in six months – What will that do to business if it actually takes place?
I believe there will be a third stimulus. There is no real recovery and there is an election coming up in November
If you remember, Bush had a stimulus then Obama had a much larger stimulus (besides massive government bailouts). That is why our budget is 1.5 trillion in the hole this year alone. But, my point is that I think there will be a third stimulus this fall. Politicians are not going to go into an election without offering people some hope for an economy recovery. So I expect that at least a $500 billion third stimulus will be passed before the election.
Of course none of this is on budget so add up the additional costs that are not in the budget and then subtract the money they will not collect in revenue because there was no recovery like they projected in their budget. I would say the real government deficit next year is going to be about double what they projected, it will be about $3 trillion. That will bring the nation to a $16 trillion national debt by next fall and probably $20-25 trillion by 2015.
There really are only two options from here on out. They cut spending and don’t further stimulate the economy and the nation goes into a deflationary depression. Or they stimulate the economy and try to kick the can down the road again. I think we know what choice they will make except this time that can is going to be kicked into a inflationary black hole.
From whom will the U.S. borrow this new $3 trillion shortfall plus the interest coming due on our national debt? When the world sees our situation nobody is going to lend to us, besides they have grave economic problems of their own. So money will just have to be printed. That means the value of the dollar will drop like a rock and nations will start dumping dollars just to get rid of them before they devalue any further. That will just aggravate the dollar fall. (There are external factors here that could come into play so I cannot be sure it will play out that way. Much of the rest of the world could be heading into a real deflationary depression. In that case so we also could be dragged into a world trade war and see a deflationary depression along with debt defaults.)
There will soon be wars in the Middle East and elsewhere that could radically change things in America and the world very quickly. When at war everything suddenly becomes a matter of national security and everyone obeys government. Government becomes a virtual dictatorship during a crises and you can be sure that crises’ are coming. Soon after the third stimulus the dollar either will collapse or there will have to be a world war. In either case, America will be living under a dictatorship by 2015 regardless of which political party wins in 2012.
While we celibate our independence and our national freedoms this week let us also realize that freedom is not free, nor is it guaranteed to any nation whose God is not the Lord.
What a country this has been.
I was having a discussion the other night with another Christian who I know is very strong in the faith. He really surprised me though by saying that he didn’t think much about when Jesus would return and wasn’t really interested in it or focused on it. I gave a very spirited response back saying how much I hated this world, hated the news, hated the evil, hated the economies, hated the godlessness, and that I prayed nightly for Jesus to return. I think he was astonished by the vigorousness of my response. Unfortunately I feel its this soon of attitude by Christians and non Christians alike which is getting us into these dire situations. No planning for the future.. its all about making it past the next week, the next month or the next election. People are too focused on themselves to allow God into their lives to direct them (not saying I’m not guilty of this at times as well). We think we can fix it, or if not its someone else’s problem after the next election. I’m sure that the things you have outlined will come about Don, and it saddens me, and I worry for people out there who will suffer, but on the other hand I see it as a great blessing as its more and more obvious we are close to the end, and soon I will get to meet my glorious saviour “in the flesh”. Return soon Lord Jesus.
At the G20, Obama agreed to slash deficits – in 2013… hmmm, just passed the US elections… How convenient? In other words, pass the buck (again).
This is the time for prudent folk to be just that;
At Don’s time table, which is ball park and I don’t believe is “date setting”, and noting that the first five seal judgments could come prior to the rapture (Don, correct me if I’m wrong), Christians can’t expect the rapture to be a “get out of jail free card” (and I / we believe the rapture is [still] “pre-trib”) — hence, back to the word “prudent”;
I look back over my whole life and I can describe it in one word: survive; Well, I guess I / we will just have to kick that up a notch or two (and, since our “neighbors,” let alone “brothers and sisters,” are not taking any of the truth at it’s word, we’ll need to be prudent for more than just ourselves and family);
Return He indeed will.
I think America will go down before end time events of Revelation even start to play out. So no, there is no guarantee for there to be prosperity or peace in America before the Rapture and there is a good chance that true Christians will come under persecution before the Rapture.
Don, “there is a good chance that true Christians will come under persecution before the Rapture.”
My mother use to say, and still does, “things always get worse before they get better”. I don’t see any sign of an economic recovery, or even a sign of return to the fundamentals of Biblical Christian living in some churches. Just like Jesus said “As in the days of Noe”.
the rapture must be close. thats all i have to say
Don, “there is a good chance that true Christians will come under persecution before the Rapture.”
Agreed, as well. I could never understand the argument that pre-trib Christians are hoping for an “out” from persecution. The Bible does not make them mutually exclusive, and man’s persecution is not the same as God’s wrath. Besides, Christians in other countries are already facing persecution, and it’s coming to the West or already here (see the U.K.). And if there are Christians who don’t want to face persecution — well, honestly who would? It’s not about us and our “martydom.”
Your blog is a great resource, Don. Hope you keep posting to it.
Agreed. I keep thinking (or maybe wishful thinking) that I “see” God’s grace at work in a fallen or “marginalized” America / American continent;
Something Don mentioned… moreso than God is in control, God is in us (with emphasis); So, a fallen / marginalized scenario allows “God in us” to be heightened if not more effective;
Something that frustrates me is that I’m seemingly ineffective in persuading those around me (neighbors, co-workers, et al) to consider Him (not just truth, but the creator of truth); Whereas a missionary we sponsor, sent to another country, has seemingly much better success;
I’m not looking forward to the potential of persecution, particularly like what happened to Stephen, Peter, Paul and John et al, but who knows… maybe we’ll be free or the “freedom” will make us bolder / stronger (?);
In the mean time, I figure keep watching and praying, continue prudent preparation for as long as allowed, and continue to study the prophetic scriptures;
we now live in a fallen world controlled by demons
We are in the world but not of the world and we Christians should not be under the control of demons. In fact, we have power over all demons.
Persecution is guaranteed. The Jews, Christians and other Capitalists are already being set up as the creators of this mess, even though liberal socialism that has crept in our system is the real culprit. Christians that hold to Biblical principles are already being painted with the same brush as the Fundamentalists in Islam, won’t take much for the media to whip the uninformed public into a lynch-the-Christian furor when the conditions are right.
Hi Don,
Could you please explain the following: “America will be living under a dictatorship by 2015 regardless of which political party wins in 2012”?
Thanks
Because the nation is already under judgment. Just one judgment coming upon us is a result of a people living beyond their means expecting the next generation to pay for all their stuff. I have news they are that next generation. Their excesses will come upon their own head not the next generation. That debt problem is not going away no matter who gets elected in 2012.
Besides, a nation that has the spiritual blindness to elect the likes of Obama and the Far Left running government is not suddenly going to elect people with Godly principles.
If everyone in this nation would repent in sack cloth and ashes it could be a different matter but you know as well as I do that those that identify themselves as Christians will not even repent.
I say we will be under a dictatorship by 2015 because law and order will break down no matter who is in office. Half this nation has make the government God and when their god cannot deliver their wants they will riot. Martial law and authoritarian government will be the counter reaction.
Not to be too off topic, but I just have to quip: … and how does NASA get charged with the task of diplomatic mission to Muslims? Huh?
Islam worships the moon God and that is why they have the moon displayed on their flags. We are the only nation that has been to the moon. Thus, NASA has had direct encounters with their God 😆
There are going to be multitudes come to faith in the terrible days of the tribulation. Christians should pray that the self-induced ‘hard times’ coming upon us will be the catalyst for many to come to faith before then.