From Sovereign Wealth to Sovereign Debt
How fast the world changes these days!
Two years ago when the annual summit of those who move and shake the world economy convened in Davos, Switzerland, all the talk was about how the rich nations should employ their sovereign wealth funds. One of the gurus on a Davos panel that predicted at that time those funds would rocket from 2.5 trillion to 15 trillion by the year 2015 was the ceo of Lehman Brothers.
Nine months later, Lehman Brothers was no more and the world stood on the brink of financial collapse. By the time Davos 2010 convened, there were fewer parties. Many sovereign wealth funds were licking their wounds having lost massively in the wake of the great Wall Street crash of September 2008. Estimates vary that from between 18 to 40 percent of assets were stripped from those funds in the fallout. Then along came Greece.
Yet we only have to track back four years and we were experiencing the boom days of Wall Street fat cats, licking up their millions in unheard-of bonuses and kickbacks. Now many of those who rode the inflated credit wave of the early 21st century are joining the lines in the soup kitchens of this once great nation’s cities.
From boom to gloom in a few years.
Yet still the Feds hide the reality of the true state of the nation as they frantically work themselves to hide from that same reality rather than bare the true facts to an already scared public.
But, sooner or later, as Shakespeare mused, the “truth will out!”
Even as the U.S. administration threatens new taxes to fund its infamous health scheme, independent analysts predict that Washington will soon have to bite the bullet and slash ballooning public expenditure.
Reporting for Moneynews, Julie Crawshaw quotes noted Harvard professor and former International Monetary Fund chief economist Kenneth Rogoff as observing that historic trends following banking crises reveal that “we usually see a bunch of sovereign defaults, say in a few years. I predict we will again.” Rogoff further maintains “that financial markets will eventually drive bond yields higher, and European countries such as Greece and Portugal will ‘have a lot of troubles.’ ‘It’s very, very hard to call the timing, but it will happen,’ Rogoff says. … Worldwide awareness of sovereign debt has risen as nations including Greece reveal fiscal deficits that have swollen in the wake of the worst global financial crisis since the Great Depression” (February 24).
The same source quoted ubs economist George Magnus as observing, “There is no peacetime precedent for the current speed and scale of public debt accumulation and it is difficult to assess the social tolerance for high debt levels and for the pain of protracted fiscal restraint. In several EU (European Union) member states, the threshold has already been breached. The specter of sovereign default, therefore, has returned to the rich world.”
Our columnist Robert Morley updates our readers weekly on aspects of the continuing global economic and financial crisis. In his column this week he highlights the fact that California is more than an equivalent problem to the United States as Greece is proving to be to the European Union.
Why is this present contagious problem of both state and nation-state bankruptcy and default of such significance to readers of the Trumpet?
Simply because a good hard core of our subscribers are very familiar with the fact that Herbert Armstrong—our mentor in predictive analysis based on comparing current world events with the reality of rapidly fulfilling Bible prophecy—foresaw and clearly prophesied that a great global financial catastrophe would propel the next global power into prominence. He prophesied of an empire that would seize control of the global economy for its very brief moment in history and stun the world with its power over humanity! It would in reality be the long-prophesied seventh and final resurrection of the Holy Roman Empire! (read our booklet Daniel Unlocks Revelation).
We are right now descending into the rapidly developing global crisis that will soon prove the inerrancy of that great Bible prophecy!
The day of Anglo-Saxon dominance in world affairs is rapidly fading into history. The pride of our power was broken long ago when we won our last war in 1945. Our enemies see our deep moral corruption, our lack of political will and the great shame that we have heaped upon ourselves due to the profligacy of our ways.
We don’t need any bearded, wild-eyed weirdo to parade around with a sandwich board in public bearing the message “The end is nigh!” Any clear-thinking realist with his feet planted firmly on the ground can see the global system is at breaking point. As the great Creator of humankind once wrote on the castle wall of one of this world’s greatest imperial rulers, “Mene, mene , tekel …”—the interpretation being, “God has numbered your kingdom, and finished it … You have been weighed in the balances, and found wanting” (Daniel 5:25-27; New King James Version). The same night he saw that message, Belshazzar, king of Chaldea, was overthrown by his enemy.
For the Anglo-Saxon peoples, chief of whom are the U.S. and Britain, the writing is plainly on the wall. Our sovereign debt is accelerating hourly to soon reach a stage beyond not only the unimaginable, but the patently unmanageable. Our days of accumulation of sovereign wealth are far over.
Our nations have been measured and their power is about finished. They have been weighed in the balance and found mightily wanting.
Their time of greatness is rapidly waning and will soon be over.
Is this a message of doom?
Believe it or not, it is a forerunner of the greatest message of hope that any human being could wish for!
If there ever was a time to embrace that hope, it is in these days of increasing spiritual darkness and great global confusion.
Read our booklet The Epistles of Peter—A Living Hope and lay fast hold on the greatest vision of hope that can ever be embraced by humankind!