Word For It. . .

2Chronicles7:14-“If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.”

The American Economy/Free Prophecy Booklet

Posted by wordforit on November 9, 2007

Has the US Become a Bad Investment?

The big headline in the Financial Times on Wednesday, October 17, 2007, was “Investors flee US securities.” It seems that “[f]oreign investors slashed their holdings of US securities by a record amount as the credit squeeze intensified.” Apparently, faith in America as a good investment is diminishing.

The article quotes Alan Ruskin, chief investment strategist for RBS Greenwich Capital, as saying, “The bad news is that [the data] plainly show how vulnerable the dollar is to a continuation of the credit crunch-risk adverse environment”.

The U.S. has been playing a dangerous game with the dollar for quite some time. While constantly giving lip service to a belief in the benefit of a “strong dollar,” the U.S. has been allowing the dollar to slide further and further in value for its own benefit: making our goods cheaper for other countries to buy and making the debts we owe less painful to our balance sheets. We have been assuming for some time that the confidence of other nations in America as a good investment will keep our gamble on the safe side of disaster, allowing us to fiddle with the dollar as well.

As a nation, the United States has been counting on the utter desperation of other nations who want to see their heavy investment in America succeed to motivate them to continually prop us up in a vicious circle. Other nations do not want to see their enormous investment in the U.S. fail, so they continue to prop it up with – what else? – additional investments. As acclaimed author on economics, Gabor Steingart, puts in his book World War for Wealth:

“Dollars are bought so they don’t have to be sold. The dollar is strong because that’s the only thing that can prevent it from growing weak. Reality is ignored because only by ignoring it can the dream come true.”

However, just as Mr. Steingart warns, it is not inconceivable that a time will come when those other nations see the downside of propping up their investment fantasy as outweighing the upside, and they will cut their losses and run – especially if an option more viable that the U.S. comes along. Is the news today about a flight of foreign investors away from U.S. investments a sign that that unavoidable moment is around the corner? Time will tell.

America’s foolhardy willingness to rely on being propped up by faithful foreign “lovers” should remind us of the prophetic admonishment of Jeremiah 30:14, “All your lovers have forgotten you; they do not seek you; for I have wounded you with the wound of an enemy, with the chastisement of a cruel one, for the multitude of your iniquities, because your sins have increased.” Actually, even if a return to a sound economy can be salvaged out of this thickening financial quagmire, there will come a time when “they will throw their silver into the streets, and their gold will be like refuse; their silver and their gold will not be able to deliver them in the day of the wrath of the Lord” (Ezekiel 7:19).

Regardless of whether or not the U.S. is able to win this round of the dangerous game it is currently playing with its dollar and its foreign lovers, ultimately the solution is all about repentance from sin, not a strong dollar.

By Wallace G. Smith

Retrieved From: Tomorrow’s World

If you are interested in what lies ahead for the United States and the world in the years coming just ahead of us – as well as what lies ahead for you and your family – consider ordering our free booklet The United States and Great Britain in Prophecy. This material will take you through your own Bible and show you the startling things that the word of God has to say on this matter. The booklet is absolutely free and already paid for – order a copy today.

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