IMF and others have fears about possible USA default

IMF Managing Director Christine Lagarde


Many are concerned about the USA debt and the political game that is now being played:

October 3, 2013…

Failing to raise the debt limit would be a serious blow to the world economy, International Monetary Fund Managing Director Christine Lagarde warned Thursday in a speech in Washington.

“The (federal) government shutdown is bad enough, but failure to raise the debt ceiling would be far worse, and could very seriously damage not only the U.S. economy, but the entire global economy,” she said. “So it is ‘mission-critical’ that this be resolved as soon as possible.”

Lagarde’s warning echoed those of private-sector economists as worries grow over the ability of Congress and President Barack Obama to figure out some agreement that would permit the $16.7 trillion limit to be raised and allow the government to keep borrowing money.

Meanwhile the Treasury Department issued a report Thursday detailing the economic damage of the debt limit impasse in the summer of 2011 and predicting that worse would occur if Congress doesn’t take action to raise the borrowing limit before Oct. 17, the date on which the Treasury says it will have exhausted all extraordinary measures to stay within the current borrowing limit.

October 3, 2013…

“The devastation to the United States would be so severe that it would take decades to recover from the Depression caused by a default and the attendant dumping of trillions of dollars of U.S. Treasury securities on the global financial markets,” said Bove, vice president of equity research at Rafferty Capital Markets.

October 3, 2013

Some investors in the $11.6 trillion U.S. Treasury debt market are anxious about a potential default by the U.S. government even as many traders and analysts deem the risk remote.

Corporate treasurers, money-market fund managers, some foreign central banks and financial firms that buy and sell government securities have been unloading very short-term Treasury bills, known as T-bills, due on Oct. 17, 24 and 31, traders and investor said. The bills they are unloading mature on or around Oct. 17, which is the deadline for U.S. lawmakers to boost the nation’s $16.7 trillion debt ceiling and avoid defaulting on Treasury debt payments.

October 3, 2013

WASHINGTON — The fight over the government shutdown, which entered its third day Thursday, turned toward heightened concern over the need to raise the nation’s $16.7 trillion debt ceiling and avoid a potentially catastrophic default on its bills.

President Obama emphasized the stakes at an event at a construction company in Rockville, Md., Thursday, saying Washington’s inability to deal with the looming debt ceiling would be worse than the government shutdown. Distribution of Social Security and disability benefits would be delayed, and pensions would be decimated and interest rates would skyrocket, Obama said.

“As reckless as a government shutdown is, as many people are being hurt by a government shutdown, an economic shutdown that results from default would be dramatically worse,” Obama said.

A Treasury Department report released Thursday spelled out the consequences of failing to raise the debt ceiling: “Even the prospect of a default can be disruptive to financial markets and American businesses and families.”

As far as the IMF’s Largarde goes, this is not her first warning about this, notice what she said about a similar ‘crisis’ earlier this year:

IMF’s Lagarde: US Debt-Ceiling Delay Could Be ‘Catastrophic’…

In an interview with Reuters Insider television, Lagarde warned that a fight in the United States over raising the nation’s $16.4 trillion borrowing limit could be “catastrophic” for the global economy if it is not raised in time.

“I very, very strongly hope that all parties, all views will converge in the national interest of the U.S. economy and in the international interest of the global economy,” she said. “To imagine that the U.S. economy would be in default, would not honor the payments that it owes, is just unthinkable.”

And while many want to consider that a USA default on its debt is “unthinkable,” clearly more are noticing that the political gridlock, etc. in the USA is putting the future of the USA dollar at risk. And, I would add, that it is much worse than that. But also is giving nations reasons to think about the “unthinkable,” and some are trying to take steps related to that.

Notice something else the IMF’s Largarde said earlier this year:

2013 a “make or break year” for U.S. economy

International Monetary Fund managing director Christine Lagarde speaks with Anthony Mason at the 2013 Davos about what she calls a “make or break year” for the U.S. economy.

Suspending debt ceiling hurts U.S. “tremendously”

The USA is sending signals to the rest of the world and the end results will be worse than the politicians in Washington, D.C. seem to realize.

While they are not ready yet, the Bible tells of a time when a European power will rise up and rule (Revelation 13; for more details you can read The King of the North will arise or watch a YouTube video titled Can You Prove that the Beast to Come is European?). Notice that this power will exert economic control:

16 He causes all, both small and great, rich and poor, free and slave, to receive a mark on their right hand or on their foreheads, 17 and that no one may buy or sell except one who has the mark or the name of the beast, or the number of his name.

18 Here is wisdom. Let him who has understanding calculate the number of the beast, for it is the number of a man: His number is 666. (Revelation 13:16-18)

Though many Americans (including Canadians) realize the above scriptures are true, few have probably given much thought as how the USA itself is going to help make this happen.

How is it doing that?

Well, amongst other reasons, mismanaging its economy and greatly increasing its debt.

For a long time, the debt and budget issues have been kicked further down the road–and the IMF’s Director continues to  warn that this hurts tremendously. The USA is going to, and probably not intentionally, compel other power in the world to take steps to replace the USA dollar as the world’s reserve currency and replace it with something else.

While the USA will NOT have a total massive default on its debts this month, it is worrying parts of the world and this will ultimately not be good for the USA.

Notice some prophecies:

16 The anger of the LORD hath divided them; he will no more regard them (Lamentations 4:16, KJV).

2 And I will enter into judgment with them there On account of My people, My heritage Israel, Whom they have scattered among the nations; They have also divided up My land. They have also cast lots for my people…(Joel 3:2-3).

17… Your land shall be divided by survey line; You shall die in a defiled land; And Israel shall surely be led away captive From his own land (Amos 7:17)

13 “Behold, therefore, I beat My fists at the dishonest profit which you have made, and at the bloodshed which has been in your midst. 14 Can your heart endure, or can your hands remain strong, in the days when I shall deal with you? I, the Lord, have spoken, and will do it. 15 I will scatter you among the nations, disperse you throughout the countries, and remove your filthiness completely from you. (Ezekiel 22:13-15)

1 “Set the trumpet to your mouth! He shall come like an eagle against the house of the Lord,Because they have transgressed My covenant And rebelled against My law. 2 Israel will cry to Me,’My God, we know You!’ 3 Israel has rejected the good; The enemy will pursue him. 4 “They set up kings, but not by Me;They made princes, but I did not acknowledge them.From their silver and goldThey made idols for themselves — That they might be cut off. 5 Your calf is rejected, O Samaria! My anger is aroused against them — How long until they attain to innocence? 6 For from Israel is even this: A workman made it, and it is not God; But the calf of Samaria shall be broken to pieces.  7 “They sow the wind, And reap the whirlwind. The stalk has no bud; It shall never produce meal. If it should produce,Aliens would swallow it up.  (Hosea 8:1-7)

By having massive debt that they will not pay back, the peoples of the USA and UK make a “dishonest profit” and they will be scattered among nations and countries–via “all the winds.” Following “all the winds” means that not all will end up in the same place.  And having a variety of ‘debt crises’ is a type of wind that the USA should not be sowing.

Immoral policies, including certain economic policies, of the USA are putting that nation at great risk. And while the American politicians can act like they believe that they are taking the proper steps, many in the world are noticing that these steps are not proper for a nation that wishes to have the greatest single control over the world economy.

Some think such things will not happen, but notice:

3 Woe to you who put far off the day of doom,
Who cause the seat of violence to come near;
4 Who lie on beds of ivory,
Stretch out on your couches,
Eat lambs from the flock
And calves from the midst of the stall;
5 Who sing idly to the sound of stringed instruments,
And invent for yourselves musical instruments like David;
6 Who drink wine from bowls,
And anoint yourselves with the best ointments,
But are not grieved for the affliction of Joseph.
7 Therefore they shall now go captive as the first of the captives,
And those who recline at banquets shall be removed.

8 The Lord God has sworn by Himself,
The Lord God of hosts says:

“I abhor the pride of Jacob,
And hate his palaces;
Therefore I will deliver up the city
And all that is in it.” (Amos 6:3-8, NKJV)

And when the USA does lose its economic control, the problems in the USA will be more massive than nearly all politicians in the USA have probably realized is possible.

Several articles of possibly related interest may include:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. A video of possible interest may be Will Will USA Spying Help the Beast Power?
Will the Anglo-Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves? Here is a related item in the Spanish language ¿Serán divididas las naciones anglosajonas?
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Two Horned Beast of Revelation and 666 Who is 666? This article explains how the COG views this, and compares this to Ellen White.
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”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe?
Does God Have a 6,000/7,000 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? What year may the six thousand years of human rule end? When will Jesus return? 2018 or 2019?
Can the Great Tribulation Begin in 2013, 2014, or 2015? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic, Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.

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