Debt Wall

Some will say to me, "Yes, yes...we already know about your gloom and doom regarding the U.S. financial system....can we talk about something else?"

Hopefully, we have been talking about lots of other topics including Israel, Iran, Psalm 83, fallen angels, Russia, moral decline, etc.... so haven't been too unbalanced about covering the financial decline.

But....the financial thing is pretty darn interesting to me (maybe because I'm a financial consultant?) because it is starting to be pretty obvious that some day (maybe sooner than we know?) the whole current fiat money system may vanish like smoke. And for those of us in the U.S.....what a day that would be!!

So, with that as a backdrop, here is some other amazing/alarming news that is being pointed out. It's doubly interesting because it has the year 2012 sticking out all over.

According to The New York Times:
“The United States government alone will need to borrow nearly $2 trillion in 2012, to bridge the projected budget deficit for that year and to refinance existing debt.

“Indeed, worries about the growth of national, or sovereign, debt prompted Moody’s Investors Service to warn on Monday that the United States and other Western nations were moving “substantially” closer to losing their top-notch Aaa credit ratings.

“Sovereign debt aside, the approaching scramble for corporate financing could strain the broader economy as jobs are cut, consumer spending is scaled back and credit is tightened for both consumers and businesses.

“The apocalyptic talk is not limited to perpetual bears and the rest of the doom-and-gloom crowd.

“Even Moody’s, which is known for its sober public statements, is sounding the alarm. ‘An avalanche is brewing in 2012 and beyond if companies don’t get out in front of this,’ said Kevin Cassidy, a senior credit officer at Moody’s.”

Did you catch that? They are talking about the U.S. losing it's Aaa credit rating? We have been pointing to that ominous reality for quite some time because when it happens it will be a HUGE deal. Think about it....if the U.S. is out on a ledge right now with $10 Trillion owed but most of it at 3% interest or less....how insolvent may we become if that whole $10 Trillion needs to be refinanced at 6% interest because we lost our credit rating? It really is simple math!

You can see article here; http://www.csmonitor.com/Money/The-Daily-Reckoning/2010/0317/Not-just-sovereign-debt-US-junk-bonds-are-also-catastrophic

A day of reckoning IS coming....anyone who believes that we can kick the can down the road for ever and ever are simply living their lives in fantasy land.

Reach for faith in Christ...because faith in this world system may soon pass away.