Prophecy Today
February 2008 Newsletter
(Examining Current Events in the Light of Bible Prophecy)
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The Collapse of the U.S. Economy
By Mike Wingfield
As I travel across this great nation and speak in its conservative evangelical churches, I have been privileged to speak with many Americans, both secular and spiritual, concerning their worldviews. Consequently, I have observed that most Americans are suffering from a very bad case of "Titanic mentality." They think that economically the U.S. is big, powerful, and luxurious, like the Titanic, and will never lose its superpower status! They cannot envision an America that is not a superpower and a major player on the global, political, economical, and military scenes. However, those who are delirious with this ailment have forgotten world history and are oblivious to the prophetic Word of God. Both secular history and the prophetic Word of God indicate that the U.S. in her current state cannot survive much longer as the world's only superpower. An honest evaluation of the current state of affairs of the U.S. should lead one to conclude that America is spiritually, morally, and economically bankrupt! To ignore this is both tragic and dangerous in the light of the Biblical context of these last days!
In this brief article I hope to share with you some very alarming facts about the current economic situation in the U.S. and demonstrate what this means in the light of the overall context of "end-time" developments. Finally, we will turn to the Bible for some sound counsel concerning what we should all do in light of where all of this is going. It is imperative that we heed the warning signs and make preparations for the economical storm that is approaching this nation and the entire world. Jesus is coming soon. He could come today, and we would not need to be concerned with the approaching economical storm. However, He also taught that we should "occupy" until He comes! (Luke 19:13) This means that we must prepare to live here in this world until He comes for us.
Have you ever attempted to share the facts with a person, only to have them ignore the information because what you are saying is too painful for them to grasp or consider? In general, this happens to me every week! I am proclaiming the detailed prophetic Word of God that paints a very bleak and hopeless future for our world outside of Jesus Christ's return at the end of the Tribulation, when He will right all that is wrong with our world. I know very well that the overwhelming majority of people who hear the prophetic Word of God do not really believe that it is true, or that the final phase of the Church Age is here, and that the most horrific time known in the history of man is about to unfold. For most people, even true born-again believers, this is too painful to grasp or accept. I am convinced that it is even more painful for the average believer in America. This generation of Americans has developed and is enjoying one of the most affluent societies in the history of man. We might not like to admit it, but we really enjoy our creature comfort, and do not want to imagine life without them. Most of us have not known what it is like to really be hungry, cold, or homeless! Therefore, there is a tendency to reject any serious consideration that we are living at a very dangerous hour when all of these creature comforts could be taken away in a very short period of time.
While no one can predict the exact nature and time of the catastrophic collapse of the United States' economy, it is painfully clear that it will happen. As you examine the current economical indicators in the context of history and the economic demise of the previous governments that have gone bankrupt before us, there is no way to ignore the fact that history is about to repeat itself. What makes this even more frightening is that the U.S. dollar is considered to be the standard currency exchange of the global economy. For many decades now the nations of the world, on the international level, have traded goods and made investments in U.S. dollars. Therefore, it is projected that the collapse of the U.S. dollar could literally destroy not only the economy of the U.S., but the global economy as well. In light of the prophetic context of these last days this is extremely significant! Let us examine the facts.
One would think that everyone understands that when expenditures continually and grossly exceed income that this is a recipe for financial disaster. Yet, this current U.S. generation, from the White House to their house, seems to believe that borrowing a lot of money is good for the economy, and good for America. Unfortunately, borrowing money is like sin; the immediate results are very gratifying. However, the day of reckoning will come! The Bible has warned us, "Whatsoever a man soweth, that shall he also reap." (Galatians 6:7) Many Americans have borrowed so that they can enjoy the good life. They are in love with material possession and creature comforts and have ignored the counsel of the Bible and are risking their temporal and eternal future for the glitter and glamour offered by this world.
When you look at the enormous national, state, local, corporate, and personal debt in the U.S., it is obvious that we are rapidly approaching the day of financial reckoning! The U.S. government debt is now more than $9 trillion and is growing at a rate of $1.4 billion per day! (That's about $1 million per second, or $30,000 annually for every American.) Our government is borrowing about $1 billion per day from foreign investors, mainly nations in the Middle East and Asia. The U.S. now owes China over $1 trillion dollars! While we are borrowing money from Islamic nations and China, they are also investing heavily in the U.S. economy. Mortimer Zuckerman writes, "Foreigners own more than half the federal debt, about a third of corporate bonds, and 13 percent of the U.S. stock market. This represents an accumulating claim on the future output of the United States and foretells an increasing flow of dividends and interest payment abroad." (U.S. News & World Report, August 6, 2007, p. 64) We are slowly selling America to our enemies. We might not like to admit it, but they could bring about the collapse of the U.S. dollar on any given day by calling for payment of their loans to the U.S. government.
However, this is only part of the bad news for the federal government. When one calculates what Uncle Sam owes to Americans in the future entitlement programs promised to them (Social Security, Medicare, etc.), you can add another $40 trillion in future payments. What most Americans do not know is that for many decades congress has been spending money out of the taxpayers' funds that have been collected for their future share of Social Security and Medicare. We have been hearing a message of warning from our government about how these programs will be in trouble in the future. However, they are not reporting that big government spending is to blame for this projected shortfall. If, in the years when there was a surplus in these entitlement accounts, Congress had invested this money, we would not be in the predicament that we are in today. However, they chose to spend these funds on other budgeted items or programs without any consideration to repay them to the entitlement accounts. Furthermore, instead of putting on the brakes and halting this dangerous slide into financial bankruptcy, Congress has hastened the pace of the slide toward our day of reckoning. In 2003 Congress passed the Medicare prescription drug bill, which some estimate will cost the government another $1 trillion in the next decade. Now, we hear some of the presidential candidates promising Americans more government help by offering a national health insurance program. Is anyone asking, "Where will this money come from?" What most Americans do not realize is that while these promises sound good and may bring temporary solutions to some very important needs, they will, in the long run, destroy our economy and way of life, as we know it. Responsible leadership should be speaking the truth, sounding the warning, and helping every American see that we need less government spending and involvement in our daily lives and financial affairs. We cannot control the misfortunes and misconduct of Americans with government spending that has no way of knowing who really deserves assistance and who does not.
Our government has encouraged Americans to follow their example of borrowing and spending. Chuck Missler writes, "The United States has truly become a nation of debtors. In recent years the level of household debt in America has surpassed the level of household income, so for the first time in our collective history, we owe more money than we make. Consumer debt in America (credit cards and other consumer lending not including mortgages) has risen to a record high of about $2.5 trillion. Today the average US household has more than $9,000 in credit card debt and spends more than $1,300 a year in interest payments." (E-mail from Chuck Missler, September 18, 2007) Look around you! The indications that we have reached the point of debt saturation in this nation are all around us. Look at the "fast-cash" institutions that are popping up everywhere. People are paying enormous interest rates so they can have a one-week advance on their paycheck. This is a clear sign of financial desperation. Look at the rebates and extended warranty programs being offered by the auto industry. This is only a short-term solution to attract buyers for the overstocked new car inventory. However, this short-term solution will create a long-term financial problem. The U.S. auto industry is in serious financial trouble. Several years ago the government bailed Chrysler out of bankruptcy. However, can they depend on Uncle Sam to do it again?
There are also many other signs that the business and consumer sectors are facing a very critical financial crisis. America has evolved into an economy that is excessively consumer oriented. The ballooning national trade deficit is forcing us to borrow $800 billion annually from foreign investors.
The lending institutions are in trouble because of the bad loans that have been made over the last decade and the dramatic increase in personal bankruptcy, fueled by the collapse of the housing market and overextension of credit card debt. Cheap interest rates, sub-prime mortgages, and rapid appreciation of housing have created a false sense of wealth and security that has lured too many lending institutions into making loans to Americans who could not really afford a house loan. Many of these loans were made without a significant down payment. Now, with many properties being devalued by as much as 20 percent, and the floating interest rates rising, almost 1 million Americans have been forced to default on their home mortgages in the last year. And, we are being told that in 2008 we will witness a marked increase in defaults on mortgages. All of this sounds familiar! In the 1920's there was a housing boom that began in Florida that suddenly ended in 1928, the year before the stock market crash that began the Great Depression.
While the general public focuses upon the people who are losing their homes, they forget that this is affecting all of us because of what this is doing to the banking and lending institutions. "With housing prices falling for the first time since 1991, a chain reaction has begun. Bundled mortgages sold to investors as interest-paying bonds are falling in value. Major credit rating firms warn that loan delinquencies may be much worse than anticipated because when homes become worth less than the loan, the owners cannot sell or refinance their way out of trouble. … With more than $1.8 trillion worth of securities backed by sub-prime mortgages created since 2000, banks and investors are suffering losses that are exposed every week, affecting the overall confidence in the credit markets." (Mortimer Zuckerman, "Credit Crunch," U.S. News & World Report, August 13-20, 2007, p. 76)
In reaction to all of this financial gloom, consumer confidence is down, unemployment is up, the U.S. stock market has continued to be more unpredictable, and precious metals prices are soaring. All of this indicates that Americans, at least those who are following all of this, are getting very nervous about the immediate future of the U.S. economy.
In my travels abroad in recent years I have noted that foreigners are more concerned about the U.S. economy than Americans. I believe that this is because most Americans are not aware of their economic surroundings and developments. Many are not concerned because they trust the government to fix the problems. Their Titanic mentality forces them to reject any notion that the U.S. economy could suffer a complete meltdown. In spite of the negative economic indicators, Americans in the last decade have exhibited a very positive confidence in a weak and bankrupt U.S. economy. However, that is now beginning to change. Consumer confidence is eroding here in the U.S., and it is even weaker abroad!
Because people at home and abroad are losing confidence in the U.S. administration's ability to control the federal debt in a way that is fiscally sound, the dollar is falling, or to put it another way, inflation is roaring back with a vengeance. The U.S. dollar has devalued 60 percent since 2001! This can be seen in the sharp rise in food, grain, oil, and precious metals. Oil prices have increased from a little less than $20 a barrel in 2002 to an all-time high at $100 a barrel a few weeks ago. Gold was $250 an ounce in 2001 and today is selling for a little over $900 an ounce. There are some other factors that are driving up the price of food, grain, oil, and precious metals up. However, analysts believe that the biggest cause for this inflation is the collapse of the U.S. dollar.
What has caused the collapse of the U.S. dollar? The answer to this question may surprise you. The dollar is falling because our government has cranked up the printing presses and is flooding the world with new crisp dollars. Since the new Fed chairman took over, the public has not been informed, as they were before, about how much money the government is printing and releasing in world markets. However, before they stopped reporting, we know that they printed about $1 trillion in 300 days! In comparison, the U.S. government, from the time of its beginning until 1974 printed the first $1 trillion. Since the dollar is no longer backed by precious metals there are no restraints on how much money the U.S. government can print. However, everyone knows that if you rapidly increase the volume of dollars in the world that the value of all U.S. currency will be proportionately decreased. Those who operate in the investment sectors realize that the U.S. is acting in an irresponsible way as it tries to print money to reduce the runaway national deficit. While the government may be acting in its own interest, they are, in effect, destroying the wealth of Americans by devaluing the currency.
With the U.S. government and the general public showing no signs of financial restraint, it appears that we are rapidly moving toward a time of major economic crisis. Many believe that we have already gone too far and that any changes introduced now would be too late. On the basis of what has happened in history to other nations who have been in a similar economic situation, there are two things that are coming in the immediate future. As consumer confidence continues to erode here at home and abroad, it will, at some point in time, cause the buying power of the dollar to decline so rapidly that it will set in motion hyperinflation. Prices on general commodities will rise rapidly and sharply over a very short period of time. For example, in 1923, Germany faced this kind of devastating inflation. Millions of Germans found out that they were not able to use their lifesavings to buy a postage stamp! The German government printed 100 million Mark bills that eventually became worthless. Many Germans used their worthless currency to start fires in their stoves. Admittedly, this would be the worse case scenario for the U.S. However, we could just see the dollar fail enough to make the U.S. so weak that it could no longer sustain its military presence around the global and would need to restrict federal spending to the point that the U.S. would cease to be a global force to be reckoned with. This is basically what happened to the former Soviet Union in the late 1980s. The Soviet currency became so weak that the USSR was forced to surrender its position as a super power. Should this take place, it would make our world a very unsafe place for us and our allies, such as Israel. Who would stop Russia and Iran? Who would stop the advance of radical Islam? No one!
Furthermore, since the U.S. dollar has been used as a world currency in global markets, we can expect that, at some point in time, on any given day, no country will want to retain their U.S. dollars and will move their financial holdings to the Euro or some other more stable currency. When that day comes, there could be a mass movement on the part of all nations to get rid of their U.S. dollars. No one would want to be caught holding the worthless paper notes. This sudden panic sell-off of the U.S. currency could cause the meltdown of the U.S. economy in a day or two!
When this happens it is highly likely that the world would satisfy its quest for the creation of a New World Order – a One-World government. For many decades many global leaders have been waiting for the day when the last super power dies so they can usher in some international form of government. Many believe that the collapse of the U.S. economy would create this kind of opportunity. Revelation 17-18, which pictures the future One-World Government as a beast, and the global false religion, Islam, as a harlot, would indicate that this future International government would be very sympathetic to Islam. According to Daniel 7:24 the Antichrist, pictured as the "little horn," will be preceded by "the 10 horns," which is the One-World government. This would mean that the One-World government will precede the Antichrist's covenant with Israel that begins the Tribulation. When this takes place it will spell trouble for the U.S. and Israel.
In light of all of this, it is most interesting to note that according to Revelation 6:5-6 the Tribulation will begin with a time of economic depression. According to this text it will take a man's entire day's wage to purchase enough bread for one person. Should the U.S. economy fail, it would, as estimated by many, bring about a global economic depression. Since the U.S. is the world's largest and richest consumer, it stands to reason that all of the other countries, like China, who export many goods to the U.S., would be financially crippled.
Therefore, it is very important to note that the beginning of the Tribulation Period, the appearance of the Antichrist, and a global economic depression are all linked together in the Bible. Should the economic collapse of the U.S. be the event that triggers this series of prophetic dominoes to fall, it is also important to note that all of this is connected to the Gog and Magog war in Ezekiel 38-39. In this future invasion of Israel, Russia and Iran will lead an Islamic force against Israel because of the wealth in Israel. (See Ezekiel 38:12-13.) It is also very interesting to observe the cooperation of Russia and Iran at a time when Iran is openly bragging about her future destruction of Israel. In light of the fact that everyone knows that Israel is an ally of the U.S., some have concluded that this invasion of Israel by Russia and Iran would not take place unless something has happened to the U.S., leaving Israel vulnerable to her enemies.
In light of the larger prophetic context of the end-times, it is apparent that we are very close to very dramatic events that are about to trigger a series of events that fall like prophetic dominoes, thrusting the world into the Tribulation Period. Please keep in mind that the Rapture precedes the Tribulation. Therefore, we should be spiritually preparing ourselves for the moment when we will stand in the presence of our holy Lord Jesus. Are you saved? Have you trusted Jesus Christ as your Lord and Savior?
Do you believe that Jesus was born of the Virgin Mary? Do you believe that He lived a sinless and perfect life? Do you believe that He died for your sins, shedding His precious blood as God's lamb for your redemption? Do you believe that He bodily arose from the dead and is now in heaven? If you have answered yes to all of these questions, then you are still not saved!
You must believe, but you must also repent of your sins. You must turn from your sin and surrender your life to Jesus Christ as your master and Lord. The Bible says, "That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God has raised him from the dead, thou shalt be saved. For whosoever shall call upon the name of Lord shall be saved." (Romans 10:9, 13) Have you called out to the Lord to save you? If not, why not bow your head right now and ask Him to save you? Please do not wait. I have tried to share with you in this newsletter that our world is running out of time. Jesus is coming for all those who are saved to take them to heaven. My friend, you do not want to be left behind! Please trust Jesus Christ today!
Christian, we must not only be prepared to stand in His holy presence, but we must also occupy till He comes for us. What if what we have talked about in this newsletter comes to pass, and America suffers an economic collapse before the Rapture? Have you prepared in such a way that you and your family will not suffer an immediate economic collapse along with the rest of the world? The Bible has warned us that these difficult times are coming. Read James 5:1-8. The Bible says that only a fool spends all that he has. (Proverbs 21:20) God says that we are to be like the ant, which stores up her food for the difficult times ahead. (Proverbs 6:6-11; 30:24-25) God's wisdom cries out to us so that if we listen to Him we "shall dwell safely, and shall be quiet from fear of evil." (Proverbs 1:33) In Psalm 37:25 the Psalmist says, "I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread." This is not a blanket verse that says we need to do nothing and God will take care of us. Notice that it is "the righteous" that is given this promise. Should not the righteous follow God's counsel to prepare for times of adversity?
Romans 12:2 exhorts us, "And be not conformed to this world: but be ye transformed by the renewing of your mind, that ye may prove what is that good, and acceptable, and perfect will of God." This verse commands us to not let the world pour us into their mold. We are not to think and live as the world. This would also include our worldview and how we handle material possessions as God's stewards. Unfortunately, most believers have allowed the world to pour them into their worldview and financial mold. If you have allowed yourself to get caught up in the debt trap, then you are following in the way of the world. This does not please our Lord! Proverbs 22:7 says, "The rich ruleth over the poor, and the borrower is servant to the lender." It is not good to be enslaved to a godless world system! Many have fallen into the debt trap because they think they need something, or they are not patient enough to wait on God to provide the funds to get what they think they need. We would all do well to heed the words of Jesus about the dangers of riches and material possessions. (Please read Matthew 6:19-34.)
God showed Joseph in a vision that seven years of plenty in Egypt would be followed by seven years of famine. God used Joseph to provide food for the nation of Egypt and other countries. We know that we are living in a time of relative plenty at this hour. In light of the approaching economical storm, we would do well to heed the wisdom of God and the example of Joseph to prepare for the days that are ahead. God has exhorted us to not work to be rich, but we should desire to "occupy" until He comes, and provide for our family and those around us until our Lord snatches us out of this world into His holy presence.
The world is oblivious to what is about to take place. They are more interested in the daily affairs of Britney Spears than the real life-changing events that are taking place all around us. What we believe should change how we live, or we do not really believe it. If we believe that Jesus is coming at any hour, then we should agree that we are living in perilous times that are about to change our world. As never before, it is time for believers to wakeup and set their house in order – spiritually, emotionally, physically, and financially. I find myself crying out to Him many times during the day, "Lord, give me and my family wisdom for living in these days." He has promised, "If any of you lack wisdom, let him ask of God, that giveth to all men liberally, and upbraideth not; and it shall be given him." (James 1:5)
Get ready, the financial storm is coming, and so is Jesus! Do you trust Him? Or, do you trust this godless world system?
Rumblings out of Russia and Iran
During the last week of January "Russian warships took part in military maneuvers in the Mediterranean Sea and the North Atlantic, just off the coasts of France and Spain. It is said to be the largest operation of its kind since the fall of the Soviet Union." (E-mail from Chuck Missler, January 29, 2008) These maneuvers are viewed as being a signal that Russia considers itself once again a major player on the global scene. With the political friction building between Russia and the West, and the mounting tensions in the Middle East, this certainly indicates that Russia is rebuilding for the invasion of Israel mentioned in Ezekiel 38-39.
During this same time Russia sent the eighth shipment of uranium fuel to Iran. The head of Iran's Atomic Energy Organization said that Iran now, thanks to Russia, has 250 tons of uranium hexafluoride gas (UF6) to load into the centrifuges for enrichment into fuel. Experts warn that this uranium UF6 would be enough, when enriched, to produce up to 50 nuclear warheads. Also, Russia announced that they will provide Iran with the sophisticated and powerful S-300 anti-aircraft missile defense system to protect Iran's nuclear facilities from being attacked by the U.S. or Israel.
Within days of these developments Iranian president, Ahmadinejad, stated to the world, "Stop supporting the Zionists. Their regime has reached its final stage. Accept that the life of the Zionist will soon come to an end." (E-mail from Mike Evans, January 31, 2008)
In addition to all of this, in December one of Iran's military generals warned that if Israel or the U.S. conducted a preemptive strike on Iran's nuclear development facilities that Iranian forces "will fire 11,000 rockets into identified enemy positions within the first minute of any aggression against Iranian territory." (Israel Today, December, 2007, p. 4) These "enemy positions" mentioned by the Iranians include the oil fields of the Muslim Arab nations in the Persian Gulf. Therefore, it is obvious that the world has a major time-bomb on their hands. However, Israel is the one nation that faces the gravest threat of annihilation. But, we all know that Iran has one major problem. God is on the side of Israel, and will protect her from annihilation. "Behold, he that keepeth Israel shall neither slumber nor sleep." (Psalm 121:4) God has a future plan for Russia and Iran mentioned in Ezekiel 38-39. Both of these nations are conspiring against Israel. Both have their appointment with God. Their days are numbered!
Bush Calls for the Creation of Palestine
During his final State of the Union address, President Bush stated, "the time has come for a Holy Land where a democratic Israel and a democratic Palestine live side by side in peace." As believers in Jesus Christ we are deeply saddened by this administration's commitment to establish another terrorist state in the Middle East. The Palestinians have already been given a choice in Gaza and they chose Hamas, a militant Islamic terrorist group that is sworn to the destruction of Israel and America. This administration ignores the fact that the Islamic faith controls the Palestinians. They will vote for a leadership that calls for the destruction of Israel because that is what their religion demands. Furthermore, Bush's support to divide the Promised Land will force God to keep His promise, "I will bless them that bless thee, and curse him that curseth thee." (Genesis 12:3) President Bush is evoking the curse of God upon America! The parting of the Holy Land will lead the nations to Armageddon! (Joel 3:2)