Monday, February 14, 2011

Is the U.S. Facing a "Tipping Point"?

This article comes from the American Thinker. One can file this one under "The Decline of America":

A Tipping Point Is Nearing

We are facing a tipping point. There will soon be a crisis affecting US citizens beyond any experienced since the Great Depression. And it may happen within the year. This past week three awful developments put a dagger into the hope for a growth-led recovery, which held promise of possibly averting a debt and currency implosion crushing the American economy.

Referencing the timid spending cuts we are now seeing, as contrasted to our ridiculously bloated spending deficit:

So go the hopes for serious spending restraint from our newly elected wave of rabid, anti-big government Republicans. They may deliver cuts 1.3% of total spending that is itself approximately 90% greater than collected taxes. Let's mark this spending reduction effort as an epic fail, at a time when epic success is almost required for survival.

The second awful development to occur last week was the employment report from the Labor Department, describing employment conditions in the U.S. economy in January, 2011. The report was packed with statistics, all pointing to anemic growth with a modest pickup in manufacturing employment.

This year's benchmark revisions showed two alarming things: a decline from previously reported employment in December 2010 of nearly 500,000 jobs, and a reduction in the workforce of a similar amount.

Even though this article wasn't focused on famine, we see this as it is intertwined with rising inflation:

As global liquidity and deficit spending have accelerated, food and commodity prices have skyrocketed, sending many prices up 25-50% worldwide since August. In some countries (Tunisia and Egypt among them) rice prices and cooking oil have doubled.

Copper is up 40% in that time. If global inflation expectations take hold with tenacity, as they have many times in past periods of "easy money" by our Fed and Congress, interest rates may easily rise to 5-6%, an event which will blow an additional $300-500 billion hole in a budget already beyond sanity.

Now on to problem #3:

The third development of the last week which received much less press than the Egyptian crisis is the "new normal" in Social Security. The CBO released a report disclosing that the net cash flow for the Social Security trust fund -- excluding interest received from the book entry bonds it holds in U.S. debt -- will be negative $56 billion in 2011, and for every year hence even more so.

This is the train wreck that was supposed to happen in 2020.

It is upon us now. Any limp action by conservatives to bring this program into solvency can be expected only to slow the raging river of red ink this behemoth program (along with its twin Godzilla, Medicare) spills on U.S. citizens. With no political will to fix them, these "entitlements" will obligate Americans to borrow more and more money from China--to honor promises we simply refuse to admit we can't keep.

So what does this actually mean?

So why do these developments argue for a crisis of Great Depression proportions? Because they speak unequivocally of our pathway to insolvency, and the potential of currency failure via hyperinflation, despite the hopes of conservatives and market participants to see a halt of such direction.

Housing prices, the foundation of so much of private citizen debt loads, are destined for stagnation -- not inflation -- as the supply of homes is far greater than the demand -- 11% of the nation's homes stand empty today.

When the world begins to recognize that there is no fix for America's borrowings, a fast and brutal exodus from our currency and bonds can send us a shock in mere weeks or months.

Unlike the Great Depression, however, we will enter such a shock in a weakened state, with few producers among us and record mountains of debt.

More cataclysmic is the specter of inadequate food, as less than 4% of us farm, and those that do may cease to be as productive or may not accept devalued currency as payment, should the tipping point be crossed.

Corn and wheat prices in the U.S. have nearly doubled in less than 12 months, using our rapidly evaporating currency as the medium of exchange.

The time for action has passed, which may only become apparent as the "aid" of easy money becomes seen as the harm that it is. May we all be spared the worst, but I offer no such prayers for those responsible. The harm that comes will be swifter, and more severe, than most of them thought possible.

So what is one to do in the face of this impending financial crisis?

What we always do. Pray. Pray that somehow we will be delivered from this, and if we are to face this calamity as a nation, that God will protect us and allow us to continue our Christian witness during our remaining days on the earth.

Hopefully those days won't last long as we await our coming Messiah - Christ Jesus, who has promised to deliver us from the Tribulation that is rapidly approaching.

The apostle Paul knew the ominous times that we would be facing, and he gave us this bit of advice as we await the coming of Jesus. We are supposed to:

"wait for his son Son from heaven, whom he raised from the dead - Jesus, who rescues us from the coming wrath" (1 Thessalonians 1:10).

And it is always worth remembering what Jesus Himself stated:

"I will also keep you from the hour of trial that is going to come upon the whole world to test those who live on the earth. I am coming soon. Hold on to what you have, so that no one will take your crown. Him who overcomes I will make a pillar in the temple of my God. Never again will he leave it." (Revelation 3:10-12).

And we can never forget the last words written in the Holy Bible:

"He who testifies to these things says "Yes, I am coming soon."
Amen. Come, Lord Jesus.
The grace of the Lord Jesus be with God's people.

(Revelation 22:23-21)


Expected Imminently said...

Hello Scott


Rev.3:10 Because you have kept My command to persevere, I also will keep you from the HOUR OF TRIAL which shall come upon the WHOLE WORLD, to test those who DWELL ON THE EARTH.

A Postie insisted the letter to the Philly did not mean the Rapture because it wasn’t actually raptured; and the Lao Church wasn’t affected by it !!! (He was thinking chronologically).

My response remains that the letters were to the ChurchES AND to those who have an ear. This refers to believers who have their ears open to the Truth. These Scriptures are in the PRESENT tense, so has always been true to this very day.

The letters were circular and spread far and wide to e.g. the Church in Jerusalem and the genuine one in Rome etc. The letters apply to the WHOLE Church past, present and future for encouragement and direction. Not forgetting that the believers in the original 7 Churches (complete and whole) are now among ‘the dead in Christ’ and they will rise first.

The 70th Week of Daniel is the ONLY prophesied ‘hour of trial’ that is to come upon the ‘whole world’. (Noah’s flood has been fulfilled)

Those who ‘dwell on the earth’ are known as ‘earth dwellers’ katoikeĊ; it is used nine times in Revelation and in every instance it is used, it refers to the un-saved.

Rev17:8 And those who dwell on the earth will marvel, whose names are not written in the Book of Life from the foundation of the world.

So this ‘hour of trial’ is like Noah’s flood, it only applies to the unsaved, NOT those who are Born Again of the Spirit of God.

For comparison to believers:

Eph.2:5,6; even when we were dead in trespasses, made us alive together with Christ (by grace you have been saved), and raised us up together, and made us sit together in the HEAVENLY PLACES IN CHRIST JESUS.

Phil.3:20 For our CITIZENSHIP is in HEAVEN, from which we also eagerly wait for the Saviour, the Lord Jesus Christ,

We are not promised protection THROUGH (dia)the Trib; rather we are to be kept out. ‘tereo se EK’- ‘KEEP you OUT’.

Rev.3:11 Behold, I am coming quickly! HOLD FAST to what you have, that no one may TAKE YOUR CROWN.

2Timothy 4:8 Finally, there is laid up for me the CROWN OF RIGHTEOUSNESS, the righteous Judge, will give to me on that Day, and not to me only but also to all who have LOVED HIS APPEARING.

This will be rewarded at the Bema seat. The Thessalonians were in danger of losing this particular reward because of the false teaching that was circulating that they were IN the Tribulation.

If they were in the Trib then that meant the imminent Rapture had not occurred. This is as true today with the false teaching of all views other than the Biblical PRE-Trib removal of the Church from the earth and its time of trial.

In love, for my brethren.

Anonymous said...

I love your blog Scott! Keep up the good word to us.


Anonymous said...

"Italy and Malta are pressing for special summits to deal with the "epic emergency" resulting from the upheaval in north Africa..."

Anonymous said...

Dear Scott >>

I agree with the commentary above EXCEPT that I believe it will be a depression with DEFLATION, not
inflation. I see the dollar was up again this am....which will lead
to a collapse of the EURO eventually.

Write soon

Stephen in Hawaii !!

Anonymous said...

"Italy-Tunisia migrant crisis highlights failed EU policy
14 February 2011, 18:00 CET

(BRUSSELS) - The EU, angrily accused by Italy of leaving it 'on its own' to deal with an influx of Tunisian refugees, remains relatively powerless to act on illegal immigration due to a lack of means and will...Italy's Interior Minister Roberto Maroni sent shockwaves across Europe this weekend by suggesting Italian troops intervene in Tunisia to block a flux of 5,000 arrivals in five days from the North African country...'Instead of criticising the EU, Italy should denounce those among its partner nations who block proposals,' said a diplomat who asked not to be identified..."

Fwiw, of the EU big 3 (France, Germany, and the U.K.), only France has exposure to the Mediterranean Sea, and it is limited. Note that the article states that the U.K. is particularly reluctant to enforce immigration, and Germany has refused funding. All 3 are full members of the 10-nation Western European Union (WEU).

Anonymous said...

Isn't it interesting how several leaders of the ME are purportedly in poor health: Mubarak in a coma, King Hussein purportedly dead? I believe the Muslim Brotherhood is setting up their point men in these strategic positions.


DrNofog said...


Wrong... The NWO globocrats [Bilderbergs & Co.] have mentioned numerous times, from the 60s to now, that the dollar and the economy must be collapsed down to 3rd world status so that we can be "comfortably" merged into the NWO.

There are billions in "Ameros" already printed and minted in preparation for our 1st stage merger into the North American Union before A/C goes global...

Hope this helps to clarify the game plan.

Scott said...

Sue - I agree with every word that you said. Every one. Thanks for that...

Gearedup:I saw a headline about Mubarak's position...coma? Really? How weird? I agree, we're seeing the scales tipping towards radicalism in the ME (well, moreso)

Anon- thats some great information, and I want to go to those links and digest this....It looks very very interesting - many thanks

Mark - its my pleasure - thanks a tone!

Alice said...

Sue, that was beautiful!!!

Thank you! {{{hugs}}}

Anonymous said...

Dr. Nofog >>>>

Please wait and SEE what happens...
as I said, and I don't care about
all the reasons, I just look at
the Elliott Wave Counts, and this
dollar is READY to POP big.

And then u will see a EURO crash
at the same time...

Stephen in Hawaii !!!!