Fiscal Cliff Damage

Many Americans have never traveled overseas thus they are unaware that other countries pay close attention to the news coming out of the U.S.  Since we are the largest economy in the world, our actions or inaction causes ripples in other countries.  The current fiscal cliff impasse is pathetic.  Politicians have known for years that this day would come.  Addiction to power has caused them to become blind to the real reason they are there- to serve the people.  Instead they walk the halls as though they have been “anointed” kings.  Our Heavenly Father DOES select men and women to carry out judgment on the land.  HE does use vessels of dishonor to carry out HIS plan when lawlessness prevails in the hearts of men.  This is not a time of blessing.

The U.S. Treasury Secretary came out on 12/26 saying that he could do some maneuvering to postpone the shutdown for up to a couple of months.  Why is this just now being divulged?  The politicians do not really care if the average worker lives in fear and uncertainty about their upcoming budget crunch.  Congressman have a sweet retirement and healthcare plan that is much better than all but a few of their constituents.

The damage done to global confidence in the U.S. dollar from collapsed negotiations may be severe and largely irreversible.  Normally gold is a good barometer but it has been heavily manipulated recently, more so than usual.  As an alternative, the price of oil appears to be a good short-term barometer.

Federal Reserve actions to avoid systemic collapse in 2008 and to boost economic growth merely did nothing more than assist politicians in kicking the proverbial can a bit further down the road.  Expanded quantitative easing by the Fed  in an effort to keep the system liquid has failed to produce a sustainable outcome.  The systemic-liquidity crisis continues and appears to be intensifying anew, and it is likely to come to a head in 2013.  The day that the bond market has an epiphany about the sad state of the U.S. fiscal balance sheet, the dung will hit the fan.  Interest rates will ratchet up and the dollar will slide.  The price of gold and silver will open up with extreme gains and oil will look at new highs in terms of the U.S. Dollar.  To make things worse, Japan (3rd largest economy) will be inflating its currency.  All this is destined to occur unless Our Heavenly Father intervenes and changes the course of the path we are all on.

If this is the transition to Kingdom economics, bring it on.  Throughout Scripture, transitions never occur without pain.  There are 13 global famines mentioned in Scripture.  Times were tough.  Noah understood the term “transition”.  However, Our Heavenly Father is in control and those of us who believe that HE will ultimately fulfill HIS plan will continue to seek HIS Face and be a part of the solution to the huge mess mankind has once again created.  Prepare yourself.

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