Notice the following:
Peak Debt… or Peak Stupidity?
The debt truly is peak stupidity, but many seem to like it that way. Despite rhetoric from the major political parties in the USA about debt reduction, the reality is that the USA debt continues to rise.
US debt will rise under the Donald Trump Administration. Here is one view of that:
December 6, 2016
“There’s no doubt that many aspects of Trump’s agenda are good for stocks and bad for bonds near-term — tax cuts, deregulation, fiscal stimulus, etc.,” Gross, who runs the $1.7 billion Janus Global Unconstrained Bond fund, said in a letter to clients. “But longer term, investors must consider the negatives of Trump’s anti-globalization ideas which may restrict trade and negatively affect corporate profits.” …
His December newsletter is titled “Red is the New Green,” a play on the prison drama “Orange is the New Black.” Debt is the “red” that is imprisoning the global economy, according to the analogy. http://www.cnbc.com/2016/12/06/bill-gross-trump-good-for-stocks-now-but-bad-for-long-term-debt-crisis.html
Debt will do more than imprison the economy of the USA. Bible prophecy says one day it will be a factor in its destruction.
How can we know this?
Partially, because the Bible teaches the following:
12…Those who lead you cause you to err, And destroy the way of your paths.” (Isaiah 3:12)
16 For the leaders of this people cause them to err, And those who are led by them are destroyed (Isaiah 9:16).
43 The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. 44 He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail. 45 Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed because you did not obey the voice of the LORD your God, to keep His commandments and His statutes which He commanded you…47 “Because you did not serve the LORD your God with joy and gladness of heart, for the abundance of everything, 48 therefore you shall serve your enemies, whom the LORD will send against you, in hunger, in thirst, in nakedness, and in need of everything; and He will put a yoke of iron on your neck until He has destroyed you. 49 The LORD will bring a nation against you from afar, from the end of the earth, as swift as the eagle flies, a nation whose language you will not understand, 50 a nation of fierce countenance, which does not respect the elderly nor show favor to the young. 51 And they shall eat the increase of your livestock and the produce of your land, until you are destroyed; they shall not leave you grain or new wine or oil, or the increase of your cattle or the offspring of your flocks, until they have destroyed you. 52 They shall besiege you at all your gates until your high and fortified walls, in which you trust, come down throughout all your land; and they shall besiege you at all your gates throughout all your land which the LORD your God has given you (Deuteronomy 28:42-45,47-52)
3 For the vision is yet for an appointed time; But at the end it will speak, and it will not lie. Though it tarries, wait for it; Because it will surely come, It will not tarry…5 Indeed, because he transgresses by wine, He is a proud man… 6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say, ‘Woe to him who increases What is not his–how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you (Habakkuk 2:3,5,6-8).
The above prophecy will be fulfilled at the time of the end (cf. “The message was true, but the appointed time was long…in the latter days, for the vision refers to many days yet to come,” Daniel 10:1,14). Daniel 8:19, 11:27,29,35 use the same Hebrew term for “appointed time” as Habakkuk 2:3, while Daniel 10, using a different term, ties the latter days to the time in Daniel 8:19. Habakkuk 2 was not fulfilled in its entirety anciently. Also, it makes little sense that Habakkuk would be directed towards the modern nation of Israel as it does not have enemy creditors. It must be a nation or group of nations with some prominence at the appointed time of the end.
The nation with the greatest debt of all time is the United States of America, and on a per capita basis the United Kingdom of Great Britain and Northern Ireland has one of the highest. Earlier this year, the USA even voted to NOT have a debt ceiling for another year (USA has now decided against an official debt limit). This helps show, that despite posturing, sequestration, budget committees, government shut-downs, etc. that the USA is intent on increasing its total debt–this is unsustainable and cannot continue in perpetuity. The debt is much more dangerous than the predominant view that politicians in the USA publicly state.
As far as the Donald Trump Administration goes, it wants to increase debt through infrastructure investment and perhaps military spending. The Treasury Secretary proposed for the Trump Administration has a plan that will basically try to prolong debt:
Steven Mnuchin, Trump’s pick for Treasury secretary. …
Mnuchin recently branched out with a policy proposalof his own to curb U.S. debt. The proposal recommends a review of Treasury maturities to determine whether ultra-long-term treasuries should be added to debt security options. A Treasury maturity is the timeline for a debt to remain outstanding, after which the security expires. For example, U.S. government securities are currently sold to the public with maturities of between 30 days (Treasury bills) and 30 years (Treasury bonds).But Mnuchin would like to explore adding 50- or 100-year bonds.
John Cochrane, economist at Stanford’s Hoover Institution, points out the troubling scenarios for short-term securities if interest rates return to “normal” levels. He writes,
Here’s the nightmare scenario: Suppose that four years from now, interest rates rise 5 percent, i.e. back to normal, and the US has $20 trillion outstanding. Interest costs alone will rise $1 trillion (5% of $20 trillion) — doubling already unsustainable deficits! This is what happened to Italy, Spain, and Portugal. Don’t think it can’t happen to us.
These short-term securities cause “rollover risk.” Since the U.S. government is in the business of issuing a lot of debt that is short-term, outstanding for only two, three, five, or seven years, then we have to hope that the world remains interested in continuing to purchase U.S. treasuries — and often. At present, the current maturity rate is 68 months, or less than six years. According to Cochrane, the government rolls over about half its debt every two years — or all of the $20 trillion in debt every half-decade. …
If there aren’t enough investors to continue to buy our debt, America is deep trouble.
Countries like Belgium, Canada, France, and the United Kingdom have issued debt with maturities of 100 years. So why hasn’t the U.S.? Part of the reason has to do with market needs and liquidity demands in the economy. But, politically speaking, it has much to do with the government’s wishes to spend as recklessly and cheaply as possible. https://www.conservativereview.com/commentary/2016/12/trumps-treasury-nominee-already-has-a-new-idea-to-reduce-the-debt#sthash.ue23WFGu.dpuf
So, the debt plan seems to be to possibly issue longer term pledges so that the USA will not get creamed when interest rates rise to historically normal levels. And, of course, if interest rates rise more than that, it will be more disastrous.
Various ones can pretend it is safe to issue more and more debt, but the Bible does not support that view.
The fact of rising USA debt should serve as a wake-up call that the end of the USA will be coming (Habakkuk 2:3,5,6-8; Deuteronomy 28:42-45,47-52). Donald Trump will not be able to stop that–though I do NOT believe that the Great Tribulation will start until AFTER his first term of office is finished.
The USA has time still to repent, but I am not counting on it. Nor should you.
Radio News Reporter: Bill Wedekind, USA.