US Debt Limit Reached

Yesterday in adult ed at Buffalo Covenant we had a headline in the handout about how U.S. citizens are raiding their retirement plans at an alarming rate, 20-30 years early to pay for all of their living expenses today.  Of course many have no choice.

Today it appears the Federal Government is also forced to do the same thing....they are now raiding their pension funds to pay their day to day expenses because they can't borrow any more money.  Their credit card just reached it's max.

The U.S. government is expected to hit the $14.294 trillion debt ceiling Monday, setting in motion an uncertain, 11-week political scramble to avoid a default.


The Treasury Department plans to announce Monday it will stop issuing and reinvesting government securities in certain government pension plans, part of a series of steps designed to delay a default until Aug. 2.

The Treasury's moves buy time for the White House and congressional leaders to reach a deficit-reduction agreement that could clear the way for enough lawmakers to vote to raise the amount of money Congress allows the nation to borrow.

Gene Sperling, director of the National Economic Council, said reaching the debt ceiling "should be a warning bell to the political system that it's time to get serious about preserving our full faith and credit." The Obama administration says a default would tip the U.S. back into a financial crisis.

See it here;  http://online.wsj.com/article/SB10001424052748703421204576325583050561022.html

So now we have two choices; we can quit borrowing any more money and start to default on various obligations....which would be disastrous.  OR we can have the Federal Reserve keep printing money and start down the path of QE 3, then QE 4, QE 5...until hyper inflation is the result....which is also disastrous.

I don't like either of those options...so I opt for option 3.  We need the vast majority of Americans to repent, fall on their knees, fast and pray to the Creator of the universe.  Then the Father in heaven will hear our prayers and maybe he will heal our land.

Do you think that will happen?  Not today it won't.  Things will have to get MUCH worse.  The people of America are sound asleep and I fear it will take a major earthquake to wake them.