Economic Terrorism
Without a doubt, the world changed September 11 with the jetliner attacks in New York, Washington and Pennsylvania. Nineteen deranged, godless terrorists and those who support them have sent the United States and the world hurtling toward what may become the sharpest global economic slowdown since the 1950s. Fear and uncertainty now shroud America in the gloomy cloud of a potentially dark future, with the pendulum swinging from peace and prosperity to war and recession.
Even before the attacks, the world was already in dire straits economically. Europe, America and Japan, the world’s top economies, were struggling through a synchronized downturn, which has not occurred since the 1930s—during the Great Depression. After September 11, the ripples emanating from that three-fold simultaneous slowdown became an international economic tidal wave that now threatens to swamp or even sink the titanic global economy.
An American economic recovery appears to be the world’s only hope at this point. The massive U.S. economy represents about one quarter of global economic output. The world depends on America to buy its goods and services, and in the decade of the 1990s America did not disappoint with its seemingly insatiable consumption. Consumer spending has also been the main girder holding up the U.S. economy, accounting for two thirds of its economic output, or Gross Domestic Product (gdp).
But free-spending U.S. consumers have been keeping their wallets closed as unemployment and personal bankruptcies surge higher and terrorist biological attacks increase fear and anxiety. In September, it was reported that the consumer confidence index had dropped 16 points—the biggest one-month decline since 1990.
So with the American consumer faltering, it now appears certain that the U.S. and the world are heading into a global recession and worldwide economic contraction for at least the next six months, and very probably more.
Economic Terrorism
This magazine has been warning the world that a globe-impacting financial shock to the American economy was coming—we just didn’t know exactly how or when. We knew this because of biblical prophecy.
We must say that we are saddened to see the way in which those predictions are being fulfilled. The terrible loss of life, the destruction and financial disaster have occurred in a way which was totally unexpected, even though we wrote in our March/April 2000 issue that “The trigger [for an economic shock] could be an earthquake or volcanic eruption, or a major crop failure, war or political instability ….” This attack may be that singular disaster, or perhaps it is the first of many terrorist attacks which will bring about the economic fall of an unrepentant America as God has prophesied. God’s Word says America will be besieged financially unless we repent as a nation and keep His law (Deut. 28:43-45, 52).
Aside from all the death and destruction, consider the economic damage caused by the terrorist attacks: These terrorists are grabbing the world by the throat and holding it hostage through fear while they dismantle our civilization piece by piece and dollar by dollar! And we can be sure that terrorists will continue their attempts to destroy America physically and economically!
In addition to all the direct economic damage which may occur in America and around the world in the foreseeable future, thousands, perhaps millions, of lives may be lost in this war against terrorism as nuclear power plants become targets, or biological-chemical attacks on population centers become common.
And even in those human losses, we will also see major economic damage through the loss of workers and craftsmen. Isaiah 3:1-3 tells us that important Western leaders will be removed from the scene; America lost many of its business and military leaders and important financial workers during the terrorist attacks. This death and devastation is part of the end-time troubles God said He would bring on the nations of Israel, if they don’t repent.
A Wall Street Journal (wsj) article on September 21 stated, “The nation’s economy, already stalling before September 11, is heading into recession. The consensus of forecasters surveyed Wednesday by Blue Chip Economic Indicators is that the recession will last through the end of this year. What happens then is in dispute [meaning they don’t know]…. When will consumers and businesses, still shaken, be ready to start spending again? … When will stock prices, which have now fallen back to their levels of early 1998, turn up? … Since September 11, $1.2 trillion in stock-market wealth has been wiped out. That brings the loss so far this year—on paper, at least—to roughly $4 trillion. … In board rooms and living rooms, economic shock waves from September 11 continue to spread” (emphasis mine here and throughout).
Other articles say that airline companies may lay off as many as 200,000 workers, or 12 percent of their work force, while sustaining losses of $10 billion or more. And it is highly likely that wounded United Airlines will perish next year. Experts are predicting that about 750,000 jobs in a variety of industries will be lost due to the recession. Already, new unemployment claims are their highest since 1992.
Further, many reports are saying that the insurance industry faces potential claims from the terrorist attacks of perhaps $40 billion or more, topping the previous high of $15 billion from Hurricane Andrew in 1992. These attacks amount to the costliest man-made catastrophe ever to occur in the history of the United States, and probably all history, with experts saying that lost revenue, damage and rebuilding costs may bring the final price tag for the attacks to $105 billion!
By comparison, the Los Angeles riot cost $775 million; the 1993 World Trade Center bombing amounted to $510 million; the Oklahoma City bombing cost $125 million—a pittance compared to $105 billion!
It even appears that the terrorist organizations and others may have realized a financial profit from the attacks. The fbi and other agencies are following the money trail to see who had advance notice about the terrorist attacks in order to make money when airline and insurance stocks plunged after the attacks.
Planning in advance to make money on all that pain, suffering and destruction is truly being desperately wicked and incurably sick, as God describes human nature in Jeremiah 17:9.
Riches Evaporate Like the Dew
The Stratfor report of September 11 stated, “Even with the ongoing global slowdown, America’s market capitalization [the value of American corporations based on the price of their stock market shares] is larger than its massive $10 trillion gdp and more than all other financial centers combined. A fair portion of the value of that capitalization is sure to evaporate over the next few days.” And it certainly did do that!
This principle is addressed in Proverbs 23:5: “[F]or riches certainly make themselves wings; they fly away as an eagle toward heaven.” America’s great wealth, comfort and high-flying standard of living can evaporate overnight, and we’re being naive if we believe it can’t.
A Reuters article printed in the Daily Oklahoman of September 12 said, “For years, the United States has been seen by investors everywhere as a haven—a place where trillions of dollars could be invested, offering returns typically better than those in Europe and elsewhere. But terrorist attacks that caused both towers of the World Trade Center to collapse and left the Pentagon in flames will have a devastating effect on confidence in the U.S. economy, which was near recession, economists said. … [T]he worst scenario could be a massive capital flight out of U.S. assets ….”
That statement should ring a bell with long-time Trumpet readers, because we have been warning since 1995 about the threat of capital flight out of America. To refresh our reader’s memory, capital flight is when investors take their money out of a country and put it somewhere safer.
An online wsj article on September 11 said, “[T]raders noted the natural reaction Tuesday [Sept. 11] was to exit the U.S. currency and shift into government or highly rated assets elsewhere.” The article quoted a London currency strategist as saying, “The immediate reaction [was] to get out of dollar assets and into European bonds.” That is capital flight. If it happens in large enough quantities and for a long enough time, then America will fall economically! And that is the “bull’s eye” of all this economic terrorism: the destruction of America.
Europe Rises!
Bible prophecy makes it clear that the big winner, at least in the short run, will be Europe. As the last wsj quote said, “[T]he immediate reaction [was] to get out of dollar assets and into European bonds.”
Revelation 13:16-17 reveals that the “beast power” of Europe will totally control the world’s economies and will produce confidence in itself to the point of Satan-worship, as shown in verse 4. The beast power will be the next superpower to come on the world scene as America topples.
This German-led beast is empowered by Satan. And Satan used the September terror attacks in his latest attempt to destroy Israel in order to put his unholy Roman Empire back in power once again—which God will allow one final time. And because God allows it, trillions and trillions of dollars of investor money will flow out of America and into Europe.
The September 26 wsj said, “Foreign investors, whose faith in the U.S. economy has long propped up the dollar, are growing jittery about American stocks and bonds. Some are already taking their money home [called “repatriating” their money]. If the trend continues, it could damage the dollar. …
“[W]ith war looming, investor’s nerves are evident. Ubs Warburg saw its clients pull a net $1.6 billion out of U.S. stocks last week, the largest outflow in more than three years. Analysts there guess that much of that money is no longer in dollar assets. …
“Scotland’s Edinburgh Fund Managers is poised to shift money into Europe and out of the U.S. … Across the globe, Japanese companies are repatriating some U.S. holdings. …
“Analysts suspect that one reason that the dollar hasn’t fallen more is that despite the troubles in the U.S. economy, there still aren’t many better places to park money. Japan’s economy shows no signs of emerging from its hibernation, and the European Union is slowing as well.” Then the article quotes a financial expert as saying, “It’s unsure where the safe haven really is.” So it is clear that the world feels no loyalty toward America, and many people and countries despise the U.S. and will soon abandon it to a shameful and ignoble fate.
In a Trumpet article last year, an economist was quoted 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.”
It is only a matter of time until capital flight occurs, and Americans need to face that reality. Don’t get us wrong: We love America and the freedoms we enjoy here, but we must face reality. Foreign capital flight, or the fleeing of hundreds of billions and even trillions of dollars of investor money out of America, is on the horizon, because the U.S. will no longer be a safe place to put money. People will simply stop investing here, and America’s economy will shrivel up until we are easily conquered militarily! That’s what Bible prophecy clearly reveals!
In fact, as we have mentioned before in many articles, foreign capital flight is probably the primary mechanism whereby America will be abandoned by its former financial “lovers.” This will precisely fulfill God’s prophecies such as Hosea 2:13; 5:5-9; Lamentations 1:1-2 and Jeremiah 4:28-30, to name a few of many.
America is not immune to the lessons of history, nor is it able to defy the prophecies of the living God. America has forgotten God, and God is no longer blessing America!
America’s wealth will be stripped away, leaving the country exposed and vulnerable to its enemies. And that correction from God is what we are now seeing! America and Israel will repent or fall!
Built on Sand
A house built on a foundation of sand is described in Matthew 7:26-27. When the storms started hitting, that house fell, and “great was the fall of it.” Like that house, America is built on a foundation of financial sand through debt and economic irresponsibility, and that foundation started to crumble even before the terrorist attacks. And when the world’s mightiest and wealthiest nation falls, then truly that fall will be great!
God foretold in Matthew 24:3-8 that, in this very end time, nation shall rise against nation—and such things are only the beginning of sorrows! While we love America, but it is obvious that we can expect continuing terrorism and war until these sorrows are stopped (vv. 21-22, 29-30) by the prophesied return of Jesus Christ just before mankind annihilates itself!
God is sending a strong message through this work to warn America of its sins and of its impending fall. Your encouragement and loyal support in helping us finish this work is greatly appreciated!