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So what does this mean to you and me? You might say, so what? It means that once
currency fails, everything will begin to fail – it will bring down real estate, pension funds, stocks, bonds, savings, businesses, etc. It means that your dollar is losing value and things are going to cost more. If dollar loses half its value, things will cost that much more, especially imports so WalMart may not be best deal in future. But, some will say, that will help U.S. manufacturing by making foreign products more expensive. True, if there is anything left to manufacture after shipping off all those jobs. The government is counting on fact that this will curb imports and increase production at home and that is true as far as it goes.
The problem lies in stopping a precipitous slide that can’t be stopped. If foreign central banks and foreign investors (who have already mostly deserted dollar) stop supporting dollar, interest rates will go up and bond yields down. In plain English, that means that mortgages, credit will cost more, slowing expansion of economy, lowering amount of taxes local, state and federal government collects, further increasing debt, causing more borrowing, more devaluing of dollar and so forth. Interest will increase on credit cards, adjustable rate mortgages, business loans, etc. causing a spiral of personal and business bankruptcies by squeezing corporate profits and family budget.
We don’t realize it, but biggest tax we all pay is not amount we shell out on April 15th, on our property or sales tax. The biggest tax is INFLATION! Doug just came back from Oregon and couldn’t believe that property prices have tripled in two years. In four years, price of my rental here in California has tripled! Does that make any sense? Is there any added value? Just think about it. The average new car is $30,000! And they say price of gasoline (inflation adjusted) is cheaper than in 1972! So what does that tell us about inflation? Our economy is a house of cards. Our paper money is being printed at record rates, further decreasing value of currency.
Dear reader, we know that prophecy tells us that we will have to take “mark of beast” to buy or sell. Before that happens, world economy will so deteriorate that we will work all day long just for enough food to keep us alive. There will be a great divide between elites and rest of us. “A quart of wheat for a denarius and three quarts of barley for a denarius and do not harm oil or wine.” (Rev 6:5) The first part of this verse deals with basic food required to feed a family for a day, and oil and wine – luxury items elite will still have.
What can we do? Don’t get caught in credit trap. Tear up your credit cards. Pay off your debts. Owe no man anything! Endeavor to be as free and independent of world economic system as possible. I know this is much easier said than done. But don’t buy things you don’t need. Don’t buy things you can’t afford, even if they are presents. Live on a budget. Get free of power of world system, constantly enticing you to buy more and more things! As apostle Paul says, “don’t be entangled by affairs of this life.” (II Tim 2:4) Or as John says, “Love not world, neither things of world…” (I John 2:15) Those who are ensnared by world will most likely be deceived and it is all about your heart and your money. “Where your treasure is, there your heart is also.” (Matt. 6:21)
An economic earthquake is about to happen. You can feel tremors. Now is time to get ready! We not only have prophecy we can see foundations crumbling. Equilibrium is a law of economics. The huge debt and imbalances are causing pendulum to swing. Don’t caught on treadmill! Turn to Lord for wisdom and guidance.
http://www.the-tribulation-network.com/denemcgriff/cracks_in_economic_foundation.htm
