Financial Collapse Getting Close?

"Blah, blah, blah!  Dennis, you have been saying that the financial markets are trouble for some time now...but they just keep going up!!  Happy days are here again, Dennis, and if you can't get on the train and enjoy all fun times that earth has to offer...then you are just missing out!"

I ask myself quite often, "Are all the things we are seeing really going to cook an implosion for America?  Could there really be a situation where NO ONE wants any more paper American dollars?  Could that really lead to chaos, anger, protests, looting, Federal Government called in to restore order, and all sorts of other serious problems?  This is America!"

When I ask that question...many times the Lord gives me an article or sermon from someone else who seems to see the same things coming that I do.  The article certainly shows up as encouragement to me that THERE ARE OTHERS, in fact,  who are seeing the same things.

Today, Todd Strandberg of Rapture Ready had this to say on his weekly update;

Mar 11, 2013

The Great Bond Bubble The all-time record high for the Dow Jones industrial average, to the casual observer, would seem to be an indication that the economic crisis that started in 2007 has come to an end. In reality, the rise in stock prices is proof that financial problems are still with us. Starting in the early 1980s, the Federal Reserve began pumping vast amounts of fiat currency into the banking system. All this cheap money created the longest economic boom in our nation's history. But just like with someone who lives off of credit cards, a credit limit is eventually reached. The American government has been able to extend its own credit line several times, but eventually we'll reach the point that the debt will become unmanageable. The most likely point at which the economy will falter is the bond market. The reason the Federal Reserve is buying $85 billion worth of bonds each month is to lower the interest payment on out national debt. If the interest rate were to rise from the current average of 2 percent to a historic average of 7 percent, our interest payments would explode from $400 billion to over $1 trillion.  A sharp rise in rates would also cause massive capital loss for the Federal Reserve and the major banks. The Federal Reserve has $3 trillion in government debt. If the interest rates were to double, the Fed would suffer a trading loss of $500 billion. All the big banks would be wiped out. In order to keep the system afloat, interest rates can never go up. Of course, this is an impossible task. There are consequences that come with keeping the rate artificially low. Big banks are reluctant to lend to smaller ones at such measly rates. The lack of return on money is eating away at the value of savings. Many pension funds are having to reduce the amount of money they pay out to retirees.  In the past few days, the media has become aware of the $83 billion that the big banks get from the government each year. These too-big-to-fail institutions are allowed to borrow money at zero percent, and they invest this money in government bonds. This scheme has turned the bank into hedge funds. The top five banks--JPMorgan, Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Goldman Sachs Group Inc.--have almost $9 trillion in assets. They have so much cash on hand, they almost don't know what to do with it all. This wealth of cash reserves is the primary reason for the record in the Dow Jones. The Federal Reserve has also been supplying a large amount of cash to foreign banks. Just last week, the Fed gave European banks $$$ to help it manage their own financial crisis. The total amount of dollars loaned out to foreign banks now stands at $936 billion. The people running our financial system understand the danger. The action they took against Egan-Jones and Standard & Poor’s, two agencies that rate government debt, makes it clear that there is an effort to control public perception of our debt. After Egan-Jones and S&P downgraded the credit-worthiness of Uncle Sam, the SEC filed charges against them. No action was taken against Fitch and Moody's, which were in the same business. We cannot keep adding trillion after trillion to our national debt forever. When Obama took office, we had just passed the $10 trillion mark under Bush. Our debt now stands at $16.7 trillion, and it will be $22 trillion by the time Obama leaves office. At some point, we will reach a flashpoint where the faith in the dollar will suddenly become so overwhelming negative, the central banks will be powerless to stop the meltdown. With such a huge percentage of the population dependent on the government, the failure of the system will create massive social unrest. One of the reasons I'm so concerned about the government encroachment on our civil liberties is that I'm worried about what will happen in the coming financial calamity. If President Obama is able to clip away at our rights in good times, I hate to think what will happen when things turn desperate. Obama has been quoted saying "I am not a dictator." I have to wonder if he said this out of a desire for more power. Maybe he'd rather say, "I am not a dictator.... yet."

See it here;  http://raptureready.com/rap16.html

Yep!...faith in the dollar could collapse...Federal Reserve pumping trillions of dollars of money they CREATED into the big banks, driving the stock market up, and now we are told those banks are too big to fail.  Meanwhile the Federal Government has no capacity to control its own spending and when the REAL INTEREST comes due on $20 trillion...there won't be enough taxes in the land to stay solvent....and Social Security has $0 in their vault to keep paying the $ trillions that retirees are DEPENDENT on.

Sounds like a crisis IS coming!...we just don't know on exactly what month and what day.

Todd appears to be seeing the same things we are seeing.

How are our foundations?  Have we built them on the Rock or did we build them really fast on the sand....because it was easier and cheaper?  If the storm of financial collapse does come for us...will we still praise Him in the storm?