{"id":1054,"date":"2008-07-30T08:27:23","date_gmt":"2008-07-30T13:27:23","guid":{"rendered":"http:\/\/www.thepropheticyears.com\/wordpress\/?p=1054"},"modified":"2010-10-13T15:34:36","modified_gmt":"2010-10-13T20:34:36","slug":"the-debt-crash","status":"publish","type":"post","link":"https:\/\/www.thepropheticyears.com\/wordpress\/the-debt-crash.html","title":{"rendered":"The Debt Crash"},"content":{"rendered":"

This article has been on my website almost ten years. Since the economic wheels started coming off it has been downloaded many thousands of times. In case you have not read my 25 articles on World Trends and Bible Prophecy<\/a>. This article on world debt is a sample.
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The coming economic crash caused by world debt<\/span><\/span><\/strong><\/h1>\n

By Don Koenig – 2000 with 2008 update<\/span><\/span><\/p>\n<\/blockquote>\n<\/div>\n

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\nAlmost every nation of the world has such severe debt that just making the interest payments takes a large amount \t\t\tof their financial resources. Much of this world debt is owed to world bankers that then dictate their own economic \t\t\tpolicy to these countries. These policies do not favor the poor.<\/span><\/span><\/p>\n

The largest economy in the world is the United States. The \t\t\tUS government is currently 10 trillion dollars in debt and that is projected to go to 11 trillion or more in two \t\t\tyears. Paying the interest on that huge debt in future years will cost about as much as what is spent on national \t\t\tdefense (using modern historical interest rates and the cost of defense under normal peace time conditions).<\/span><\/span><\/p>\n

The United States is now by far the biggest debtor nation \t\t\tin the world. For many years we have been importing hundreds of billions more dollars in goods and services than \t\t\twe are exporting each year. <\/span><\/span>In 2005 through \t\t\t2008 the trade imbalance averaged well over 700 billion dollars per year!<\/span><\/span><\/strong> Trillions of US dollars are now in the hands of foreign investors who at any time could dump the \t\t\tdollar causing a devaluation of the currency.<\/span><\/span><\/p>\n

Just a few years ago, the US government was forecasting surpluses \t\t\tof trillions of dollars based on the <\/span><\/span>stupid \t\t\tassumption<\/span><\/span><\/strong> that there would not be a downturn \t\t\tin the economy for decades. This foolish assumption was of course proven wrong and deficit spending has returned \t\t\tto well over <\/span><\/span>“four hundred billion dollars” \t\t\ta year. <\/span><\/span><\/strong>The only reason the United States is \t\t\tnot feeling the pinch of spending beyond its means has been the record low interest rates. The low interest rates \t\t\twere brought about by Federal Reserve manipulation to stimulate the economy but interest rates now will rise. Soon \t\t\tall who need loans will be making higher payments and the US government will be paying much more to service the \t\t\tnational debt.<\/span><\/span><\/p>\n

Debt and unfunded liabilities promised through entitlement \t\t\tprograms is now over 50 trillion dollars.<\/span><\/span><\/strong> This \t\t\tamount of money in non inflationary dollars is impossible to raise! Thus, the U.S. is now technically bankrupt. In \t\t\torder to keep up the facade that the US is solvent for even another decade or two one or more of the following \t\t\tmust happen.<\/span><\/span><\/p>\n

1. Taxes must be raised.<\/span><\/span><\/p>\n

2. Government spending will have to be drastically cut.<\/span><\/span><\/p>\n

3. Deficit spending will dramatically increase.<\/span><\/span><\/p>\n

If taxes are raised, it will kill the economy and the debt \t\t\tload will get worse and not better. Spending will not be drastically cut because these types of cuts would never \t\t\tget through the political system. <\/span><\/span>Therefore, \t\t\tmassive deficit spending will take place<\/span><\/span><\/strong>. The \t\t\tmonetary system will be inflated so that this debt can be paid by using a dollar worth only a fraction of what \t\t\tit is today. This means a much weaker dollar in the future and much higher prices for all goods and services imported \t\t\tto the United States (in short it means we should expect hyper-Inflation). The recent rise in all commodity prices \t\t\tmight just be the start of what is to come.<\/span><\/span><\/p>\n

Full Article of the debt crash<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This article has been on my website almost ten years. Since the economic wheels started coming off it has been downloaded many thousands of times. In case you have not read my 25 articles on World Trends and Bible Prophecy. This article on world debt is a sample. The coming economic crash caused by world […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[95,37],"tags":[187,167,144,54],"class_list":["post-1054","post","type-post","status-publish","format-standard","hentry","category-dangers","category-financial-collapse","tag-economy","tag-food-for-thought","tag-judgement","tag-trends"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pawsE-h0","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts\/1054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/comments?post=1054"}],"version-history":[{"count":0,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/posts\/1054\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/media?parent=1054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/categories?post=1054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thepropheticyears.com\/wordpress\/wp-json\/wp\/v2\/tags?post=1054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}