America's economy | SermonIndex

BeYeDoers Sep 30, 2006

In regards to prophecies on America's financial collapse (they are wide reaching, not just David Wilkerson). America's economy is quite complex, especially with all the loans and credit programs, so "financial peril" is somewhat vague. In the Wilkerson thread, some people use GDP as an indicator, others personal debt, others purchasing power. While all of these are valid, they can't be looked at individually at the exclusion of others.

The four main economic measurements are:
1. GDP (all production within our borders, including all foreign countries)
2. Real GDP (GDP adjusted for inflation)
3. Index of Leading Economic Indicators-predicts future state of economy (includes unemployment, stock market, and credit)
4. Rate of inflation

This list doesn't include Trade Balance, which is horrible in this country (one of the worst). Our GDP is high, but at the US automobile industry (which is very key for employment in the midwest) is rapidly going down the tubes with the incredible rise in foreign auto purchases. If the cars are bought here, our GDP goes up, but our GNP goes down b/c it's a foreign company, and unemployment goes up b/c american corporations are losing money. This also leads to outsourcing of jobs, which is good for global economy and foreign relations, but then bad b/c we lose consumers within our borders, which means GDP drops and potential price fluctuation (changing purchasing power).

So what am I saying in all this mess? Verifying "financial crisis" prophecies is tricky unless the prophecy is very clear on what it means and we are very clear on what we are looking for.

Sorry for the rambling. I probably confused the issue more than clarify it, but I thought somebody somewhere might get something out of it :-)

sermonindex Sep 30, 2006

So what am I saying in all this mess? Verifying "financial crisis" prophecies is tricky unless the prophecy is very clear on what it means and we are very clear on what we are looking for.

Brother, thank you for clarifying this. I do think it is a very common sense matter that we have to realize, it could happen in many ways if the economy was going to or is crashing.

The total federal U.S. debt is quickly approaching $8 trillion. In 1981, when the federal debt first topped $1 trillion, then President Ronald Reagan declared that sum “incomprehensible” and likened it to a stack of $1,000 bills 67 miles high. Today the stack would be over 500 miles high. To finance its current account deficit with the rest of the world, the U.S. has to import or borrow about $2.6 billion every working day.

The U.S. can’t go on living on borrowed money forever, saying, “I sit a queen, and shall see no sorrow” (Revelation 18:7). As economist Paul Krugman put it, “Things that can’t go on forever, don’t.” America’s financial preeminence is based on the dollar’s role as reserve currency, a role threatened by the dollar’s long downward slide in value as the result of trade and budget deficits. The dollar’s 30 percent tumble over the past few years has stirred concern about a potential dollar rout that could destabilize the global economy.

This is much more serious than a simple decline in the value of the dollar. Any decision by Asian central banks to move significant parts of their foreign exchange reserves out of the dollar and into the euro or other currencies in order to protect themselves from dollar depreciation will likely produce a meltdown of the American economy.

~~[b]~~Any decision by Asian central banks to move significant parts of their foreign exchange reserves out of the dollar and into the euro or other currencies in order to protect themselves from dollar depreciation will likely produce a meltdown of the American economy.[/b]

This IS happening right now! many countries and companies are selling the USD and buying EURO.

from: http://www.activatedministries.org/activated/63.745

Chariot Sep 30, 2006

Heres's an interesting article on US debt: ~~[url=http://www.thetrumpet.com/index.php?page=article&id=1712]~~America's Foreign Owners[/url]

America's debt is staggering, consider this, "The U.S. must take in roughly $2 billion a day in foreign investment to finance its current account deficit (Washington Times, April 16). If foreigners become more reluctant to invest in U.S. treasuries, the dollar will fall."

The effects of diversifying, "Unhappily for America, it seems like more and more nations are starting to diversify their reserves out of U.S. assets. One way a country reduces its exposure to reserves of another nation is by selling that nation’s bonds; in other words, selling that nation’s currency. When a country sells dollars, it increases the dollar supply relative to demand, causing the value of the dollar to drop."

America's personal savings rate isn't to great either: ~~[url=http://www.bea.gov/briefrm/saving.htm]~~Personal Saving Rate[/url]

~~[url=http://www.photius.com/rankings/economy/current_account_balance_2006_0.html]~~Current account balance[/url], by country. Japan is at the top of the list with 158,300,000,000, and America finishes the list in last at an astounding
-829,100,000,000 in debt!! :-o