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John Bolton

COGwriter

Martin Armstrong posted the following:

November 1, 2018

Politicians have totally and completely misunderstood the trends within the global economy and as a result, they are actually creating one of the worst economic debacles in history. …

Now add government borrowing which competes against the private sector and it only gets even more stupid.  Then we have brain-dead investors who actually think government debt is “quality” issued by idiots who have ZERO intentions of ever paying off their debt at any point in the future. https://www.armstrongeconomics.com/armstrongeconomics101/economics/how-politicians-are-creating-the-worst-economic-crash-in-history/

Now, there are some political leaders who see problems with debt.

Bloomberg reported the following:

U.S. National Security Adviser John Bolton called the national debt a “threat to the society” that requires significant cuts to the government’s discretionary spending.

Bolton, speaking Wednesday at an event hosted by the Alexander Hamilton Society in Washington, said he expects U.S. defense spending “to flatten out” in the near term. He said he didn’t anticipate major cuts to entitlements such as Medicare and Social Security.

“It is a fact that when your national debt gets to the level ours is, that it constitutes an economic threat to the society,” Bolton said. “And that kind of threat ultimately has a national security consequence for it.” …

The non-partisan Congressional Budget Office forecasts the budget gap will reach $973 billion in fiscal 2019 and exceed $1 trillion the next year. Goldman Sachs Group Inc. predicts the deficit will reach $1 trillion and $1.125 trillion respectively. https://www.bloomberg.com/news/articles/2018-10-31/bolton-calls-u-s-national-debt-economic-threat-to-society-correct

It is true that the US national debt is a threat to society. It is also true that it can affect military spending and hence defense capability.

Debt will be a factor that will help lead to the defeat of the USA.

And the USA keeps getting a lot of debt:

The federal government will issue more than $1.3 trillion in debt in 2018, according to a new estimate released by the Treasury Department on Monday, the highest total debt issuance since the depths of the Great Recession:

• Total net marketable securities issued in the fourth quarter will be a projected $425 billion, according to the Treasury report.
• That will bring total debt issued in 2018 to $1.34 trillion, the highest since $1.59 trillion was issued in 2010.
• 2018 debt issuance also jumped 146% from 2017, when just $546 billion was issued. 10/29/18 https://www.businessinsider.com/new-us-debt-in-2018-how-much-highest-recession-2018-10

The Bible shows the total destruction of a nation is coming because of debt:

2 And the Lord answered me:

“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay.

4 “Behold, his soul is puffed up; it is not upright within him,
but the righteous shall live by his faith.

5 “Moreover, wine is a traitor,
an arrogant man who is never at rest.
His greed is as wide as Sheol;
like death he has never enough.
He gathers for himself all nations
and collects as his own all peoples.”

6 Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,

“Woe to him who heaps up what is not his own—
for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them. (Habakkuk 2:2-8; English Standard Version)

The USA is the most indebted nation in the history of humanity.

Notice that God tells Habakkuk that those who read this should run–that means they should take proper spiritual action now (cf. Luke 21:36), and then, eventually physically flee (cf. Revelation 12:14-16; see also There is a Place of Safety for the Philadelphians. Why it May Be Near Petra). The rise of US debt was listed by me as number 10 of 18 items to prophetically watch in 2018 (here is a link to a related sermon: 18 items to prophetically watch in 2018).

The Anglo-American world order will come to an end.

Some believe that we are due to have a type of debt reset. Forbes contributing writer John Mauldin posted this at his own website:

Earlier this year, I wrote a series of articles (synopsis and links here) predicting a debt “train wreck” and eventual liquidation—an event I dubbed The Great Reset. I estimated we have another year or two before the crisis becomes evident.

That’s still my expectation… but I’m beginning to wonder again. Several recent events tell me the reckoning could be closer than I thought just a few months ago. …

Now, if you are accustomed to using debt to stimulate growth, and debt loses its capacity to do so, what happens next? You guessed it: The brilliant powers-that-be add even more debt. This is classic addiction behavior. You have to keep raising the dose to get the same high.

At this point, Paul Krugman and others usually call me a debt curmudgeon and argue the debt doesn’t matter. I point them to Ken Rogoff and Carmen Reinhart’s book from 10 years ago, This Time Is Different, which demonstrates that in every prior debt run-up, over centuries of history, accumulated debt clearly eventually made a difference. There is always an eventual Day of Reckoning.

The US economy is so huge and powerful that our current $24.5 trillion government debt (including state and local) could quite easily grow to $40 trillion before we meet that day. We are one recession away from having a $30 trillion US government debt total. It will happen seemingly overnight. And deficits will stay well above $1 trillion per year every year after that, not unlike now. …

The federal government spent approximately $4.1 trillion in FY 2018, of which it had to borrow $779 billion on budget and a few hundred billion more off-budget (amount TBD). And over 40% of the on-budget deficit went simply to pay $325 billion in interest on previously-issued debt. …

Deficits mean the Treasury has to borrow cash, which it does by selling Treasury bills, notes, and bonds. This wasn’t a problem for most of the last decade but is rapidly becoming one as the amounts grow larger.

Thanks to the “exorbitant privilege” I discussed earlier this month, the US has long had many foreigners willing to buy our debt. Now they are losing interest (forgive the pun) because hedging their currency exposure costs more. 10/26/18 http://www.mauldineconomics.com/frontlinethoughts/debt-alarm-ringing

John Mauldin mentioned his view about a type of financial reset.

What is a financial reset?

Basically, some type of revaluation of currency and/or different type of currency according to various ones.

It is sort of a way to default on debt.

The Bible warns:

21 The wicked borrows and does not repay, But the righteous shows mercy and gives. (Psalms 37:21)

Here is one view of a financial reset from Willem Middelkoop, author of The Big Reset:

A system reset seems imminent. The world’s financial system will need to find a new anchor around 2020. Since the beginning of the credit crisis, the US realized the dollar will lose its role as the world’s reserve currency, and has been planning for a monetary reset. This reset will be designed to keep the US in the driver’s seat, allowing the new monetary system to include significant roles for other currencies such as the euro and China’s renminbi. Gold could well be re-introduced as one of the pillars of the new global financial system. By looking past the American ‘smokescreen’ surrounding gold and the dollar long ago, China and Russia have been accumulating massive amounts of gold reserves, positioning themselves for this more prominent monetary role for gold in the future. The reset will come as a shock to many. The Big Reset will help everyone who wants to be fully prepared. accessed 10/24/18 http://www.thebigresetblog.com/index.php/the-book/

Banks presumably would be closed for a time and there would be panic among many.

If this happens within the next year or two as John Mauldin indicated, nearly all in the USA would suffer.

But, even though that would upset foreign investors, that would not be the fulfillment of Habakkuk 2, as that will happen near the start of the Great Tribulation (Matthew 24:21)–and the Great Tribulation cannot start before 2022 (for details, check out the article: When Will the Great Tribulation Begin? 2019, 2020, or 2021?).

On the other hand, those who think the current world order with the USA’s dollar on top will last several decades are in error.

The idea that the debt does not matter is a false and arrogant belief.

The Bible teaches:

18 Pride goes before destruction, And a haughty spirit before a fall. (Proverbs 16:18)

It is prideful arrogance that gets humans to think that they can essentially completely control the economy and just borrow and print up money. They cannot. Weather, political events, diseases, wars, morality, technology, international matters, and other factors play a role.

Plus, there is also the matter of debt accumulation by the USA and biblical prophecy.

Those who will believe the Bible will take the words that God spoke to the prophet Habakkuk seriously.

Notice that God says that the situation is so serious that one should run–take steps now, and flee when it is time (cf. There is a Place of Safety for the Philadelphians. Why it May Be Near Petra).

The days of the US dollar’s dominance are numbered.

As I have written many times before, the time will come when the USA dollar will be worth no more than the scrap value of the cotton-paper it is printed on.

Debt will be a factor.

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This entry was posted on Thursday, November 1st, 2018 at 3:00 pm and is filed under Prophecy.

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