The financial news for the USA and much of the world was not especially positive yesterday. Now China may affect it as well:
China stimulus may knock U.S. Treasuries near term
Reuters - Nov 12, 2008
NEW YORK (Reuters) – China’s mammoth economic stimulus package announced this week is the latest piece of bad news for U.S. Treasury bonds as the market prepares for a borrowing requirement to fund the U.S. government’s bailout of the banking system.
Bond investors are concerned China may either trim its huge U.S. Treasuries holdings to pay for the country’s $586 billion stimulus package, or slow its purchases of U.S. government debt.
To make matters worse, analysts expect a huge acceleration in U.S. government debt issuance running to some $2 trillion over the next year, swelling the size of the $4.9 trillion Treasury market and weighing on the prices of these securities.
Add it up and prices should fall and yields surge, analysts worry. http://in.reuters.com/article/businessNews/idINIndia-36457120081112
While the USA NEEDS someone to buy its debt, or essentially fall apart economically, it need not necessarily be China. And while Japan is a big buyer of USA debt, it is possible that even the Europeans will buy some.
It may be of interest to note that in the past couple of months, European leaders have essentially told the USA that if it followed European practices it would not be in the mess that it is now in. The Europeans seem to be sending a signal to the world that they intend to be the solution to the USA and the world’s banking system (see for example Dow, FTSE, Nikkei, Hang Seng, DAX, & CAC Drop, And Europe Plots).
Notice the following news item:
France’s Sarkozy questions dollar’s supremacy
Associated Press – Nov 13, 2008
French President Nicolas Sarkozy says the U.S. dollar should no longer be seen as “the only global currency” that it has been since World War II.The French leader says he will deliver that message to leaders of the Group of 20 major world economies at a summit in Washington this weekend to discuss the global financial crisis.http://www.iht.com/articles/ap/2008/11/13/business/EU-France-Sarkozy-Dollar.php
Did you know that the late Herbert W. Armstrong indicated decades ago that something like this would happen?
PCG’s Gerald Flurry reported:
Herbert W. Armstrong warned of a gigantic financial crisis that would shake the economic world. He said this unparalleled crisis would motivate Europe to unite into a great superpower.
He wrote in July 1984 that a banking meltdown in America “could suddenly result in triggering European nations to unite as a new world power larger than either the Soviet Union or the U.S. That, in turn, could bring on the Great Tribulation suddenly. And that will lead quickly to the Second Coming of Christ, and end of this world as we know it” (emphasis his).
The truth is that Herbert W. Armstrong did have a grasp of biblical and prophetic matters.
And while the end is not yet here, events are lining up for the Europeans to become the dominant economic force in the world and the USA to be an also ran debtor nation.
Several articles of possibly related interest may include:
Who Was Herbert W. Armstrong? How is He Viewed Today? Includes quotes from the 1973 edition of The Autobiography of Herbert W. Armstrong and explains how he is and should be viewed today.
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for China? Is it a “King of the East”? What will happen to nearly all the Chinese, Russians, and others of Asia? China in prophecy, where?
Japan, Its Biblical Past and Future, Part 1: Any Witness? This is a draft of an in-process article about Japan. Have they had any witness?
Japan, Its Biblical Past and Future, Part 2: Prophecy Japan in prophecy. What is prophesied for Japan. Will God save the Japanese?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? What is ahead for Europe?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? When does the six thousand years of human rule end?
Can the Great Tribulation Begin in 2009, 2010, or 2011? Can the Great Tribulation begin today? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?