Doomsday Warning Gains Ground

I don't need much commentary to add to this...so will just pluck out some key paragraphs.

Remember, America can't be found in prophecy, which means she won't be a player when the last 7 years get played out for the Jews. So what we are "watching" for is the decline (disappearance?) of America.

Boston University professor Laurence Kotlikoff, who warned as far back as the 1980s of the dangers of a public deficit, lent credence to such dark predictions in an International Monetary Fund publication last week.

He unveiled a doomsday scenario -- which many dismiss as pure fantasy -- of an economic clash between superpowers the United States and China, which holds more than 843 billion dollars of US Treasury bonds.

"A minor trade dispute between the United States and China could make some people think that other people are going to sell US treasury bonds," he wrote in the IMF's Finance & Development review.

"That belief, coupled with major concern about inflation, could lead to a sell-off of government bonds that causes the public to withdraw their bank deposits and buy durable goods."

Kotlikoff warned such a move would spark a run on banks and money market funds as well as insurance companies as policy holders cash in their surrender values.

"In a short period of time, the Federal Reserve would have to print trillions of dollars to cover its explicit and implicit guarantees. All that new money could produce strong inflation, perhaps hyperinflation," he said.

"There are other less apocalyptic, perhaps more plausible, but still quite unpleasant, scenarios that could result from multiple equilibria."

See it here; http://www.google.com/hostednews/afp/article/ALeqM5guQwaDcJjALF1jtUfqcyIgRU7U1Q

For anyone who was in adult ed yesterday...here is just one more article that references the International Monetary Fund. They are literally showing up everywhere!