As the Dollar Drops
It was headline material for a couple days: “Euro Edges Past the Dollar in Victory for Europeans”; “Confidence Falls With the Dollar”; “Parity With Euro Spurs Fears of Rout for Dollar.”
The flood of corporate scandals presently sweeping the U.S. has caused disillusionment among investors around the world. Confidence in the U.S. dollar, already weak from lack of faith in the economy of the U.S., fell to the lowest point against the euro in two years. On July 15, the dollar reached parity (equality) with the euro—indicative of a trend that will eventually lead to the economic situation consistently predicted by the Trumpet for the past five years.
“What could cause the beginnings of a loss of confidence in America?” the Trumpet wrote in November 1998. “On the international level, strength of character is equated with strength of economy, and both are extremely lacking today in America! … Global investors are becoming increasingly aware that an investment in America is no longer an investment in strength.” We have seen, through the fall of the U.S. dollar, how the lack of character in corporate U.S. has affected investor confidence.
In the August 1997 Trumpet, J. Tim Thompson wrote of how the “new euro will probably be catapulted into prominence and increased value, all the while climbing higher as it pushes the dollar deeper into the financial abyss.”
In May 1998, Trumpet news analyst Ron Fraser wrote of how “the potential for a euro being driven upwards and a dollar downwards would seem obvious.”
In December that year, the Trumpet gave this perspective: “Perhaps the most startling effect of the euro may be its dominance of the dollar …. With the U.S. economy being essentially a ‘bag with holes’ (Hag. 1:6) out of which all value is pouring, it is likely that the advent of the euro will rapidly fulfill Bible prophecy right before our eyes in the next few years.”
Though seen by some economists as positive, due to its gentle fall, the decline in the dollar is but an indication of a likely future sell-off, which would have detrimental effects. “[E]conomists fear that now the dollar has crossed the threshold of parity, the fall in the dollar could turn from a gentle fallinto a rout” (Financial Times, July 15; emphasis mine).
We can be certain of the outcome, as printed in the Trumpet three years ago: “According to Bible prophecy, America and Europe will be on an economic seesaw, with America going down and Europe going up” (Feb. 1999). We can be certain of the dollar’s future, regardless of any possible temporary comebacks: It will continue to fall, ultimately contributing to a valueless U.S. economy (Ezek. 7:19).
Watch as the European economy continues on its path to become the most dominant economy in the world—with Asia strengthening as well—as the U.S. economy continues to decline. “Bible prophecy says this European economic system is destined to replace America as the economic leader of the world, though only for a short time, until she likewise comes crashing down in financial ruin” (Trumpet, Nov. 1998).
“An economist was quoted by the Associated Press recently as saying, ‘A day of reckoning doesn’t come until there is something to do with the money that is better than investing in the United States.’ He is right, and it is just a matter of time” (Trumpet, March/April 2000).
Can we see that time coming?
Continue to read the Trumpet for further analyses of the U.S. and world economy.