Economic Collapse

By now you may have all caught the headlines yesterday that Moody's rating service is telling USA that they may have to lower the Treasury's credit rating from AAA...of course this is something we have been warning about for the past few years.  Something that most talking heads keep telling us could NEVER happen.

A few readers may still be saying, "So what?...that means nothing to me."  Hopefully by now it is a very few readers who are saying that....but for the sake of the few we will explain it again.

Currently the Federal Reserve has been "buying" most of the Treasury Bonds thereby driving the interest rate down to near 1%...which is good for a nation like ours that has $14.3 trillion of debt.  That's a whole lot of interest even at 1 or 2%.  But what happens when the Federal Reserve has no more capacity to "buy" bonds from the Treasury? (Ponzi scheme over)  Then we will be having auctions where possibly few buyers will be showing up so they could bid on bonds at say 4% and if no one stands up to bid the interest rate down...they will get those bonds for 4%...and instantly everyone who is holding a 10 year bond paying 2% will have lost about 30% of the value of their principal.  This is just simple 101 math.

BIG CLUE....SO PAY ATTENTION!  The Federal Reserve IS NOT OWNED OR CONTROLLED BY THE FEDERAL GOVERNMENT....but instead is run by a shadowy existence of power brokers who basically hold all the strings to the global financial system.

Now lets go for broke and look at a scenario that could happen sooner than later.  Let's pretend that the Treasury has an auction (maybe next week or next month) to sell $50 billion worth of 10 year bonds and China, Brazil, India and Japan decide they have enough US Treasury bonds so they stay home from the auction.  Now what?  For the past 25 years we have been operating under the false illusion that the other governments of the world will ALWAYS stand in line to buy our debt....and that is a false assumption.

At this point the house of cards will begin to come down VERY fast.

Remember that the entire house of cards is today standing on "THE FULL FAITH AND CONFIDENCE OF THE US GOVERNMENT"...and when than confidence wanes...the value of our paper money could collapse faster than an angry hog could chase you up a tree.

Just imagine the financial carnage that will happen if the USA (like Greece) is all of a sudden forced to pay 10% on any future bonds we sell in order to entice China or India to buy more of our paper that Moody's is now threatening to downgrade?

I found this video on YouTube posted about 6 weeks ago from a pretty normal dad who has written a few books.  I think he does a fairly good job of confirming the things we have been saying...and I believe he does it in pretty easy to understand language.

As you watch this short video, notice that he also chooses to use the word Ponzi scheme as he describes how Social Security and Medicare work.

See it here;  http://www.youtube.com/watch?v=nWrgCQr1JGs&feature=related

Friends...seriously...if you haven't made ANY plans for what you will do the DAY AFTER financial carnage hits....the tornado sirens are going off.  It is now time to seriously look for safe cover.

"A prudent man sees danger and takes refuge, but the simple keep going and suffer for it."  Proverbs 22:3

Look around you.  The Vikings are still crying for a stadium...Hollywood keeps churning out crappy movies....your local news spends half it's time reporting sports scores and telling the masses NOTHING of the relevant things happening...and most preachers in our local churches have been worthless shepherds guiding a lost flock.  Americans have become simple....and they are going to suffer for it.

Pray that the Lord will speak to authentic Christians and lead us to the appropriate tornado shelter.