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The Dollar’s Amazing High-Flying Act
By Todd Strandberg
The European Union has said the US dollar needs to be replaced as the global trading currency. The Russian government has said a switch to a new monetary trading system is needed. China has been working with several nations to supplant the greenback with one based on its currency. As hard as these nations try to replace the dollar, it still remains the central mechanism unit of global trade.
The dollar is by no means a perfect currency. The government that controls the quality of dollars spends money like there is no tomorrow. On Sep 30, fiscal-year 2018 came to an end, and during that 12-month period, the debt load of the federal government increased by $1,271,158,167,127; feds borrowed $8,172 per every American with a Job. This has been the largest spike in red ink since the dark days of the 2008 Subprime Crisis.
It is amazing that we have such a huge shortfall during a time of positive GDP growth. During a recession, tax revenues decline because millions of people lose their jobs and because companies lose money or go bankrupt as their sales collapse. Also during a recession, government expenditures surge because of an increase in support payments such as unemployment compensation and food stamps. The next time we have a recession, the deficit will likely be between $2 to $3 trillion.
The ability of the US government to produce massive deficits without any impact on the dollar has calmed concern over deficit spending. I was shocked when I learned that Trump had quietly signed last week a spending bill that allowed the government to continue the red ink. In the past, there would be a great amount of debate over the raising of any major debt ceiling.
Some people would argue that deficits never matter, because the U.S. has a monopoly creation of dollars, and it isn’t at risk of being forced to default on its debt. So as long as inflation remains low, there’s room to buy all the iPhones we want from China.
The only reason why the dollar has value is because of trust. By having a trade deficit of $500 billion each year, we have put $10 trillion in the hands of our trading partners. US banks have made another $10 trillion in loans that are based on the greenback.
The world is so flooded with dollars, no other currency can achieve the same level of liquidity. Sea shells are very abundant, and they would make a great currency in term of liquidity. In order for a currency to have value, it needs to be in limited supply. The reason why we don’t use Monopoly money alongside the dollar is because Parker Brothers would run their printing presses 24/7 if people actually applied value to their currency.
I think it is an absolute miracle that the US dollar has not already collapsed. It is a basic law of economics that if you print too much debt, your national currency goes down in value. There are several nations that are currently suffering massive devaluation of their currency. The Argentine peso has been in sharp decline. That nation’s central bank rate has hiked interest rates to 60% to prop up the currency.
Argentina’s currency problems are the result of a $3.7 billion shortfall in its budget. The U.S. has a deficit 343 times greater, and our currency has been in an uptrend for several months.
If I had any doubt that the hand of God was guiding the path of the American dollar, Trump’s announcement of a five-way trade war with China, Europe, Mexico, and Canada made things clear. Nothing less than divine monetary intervention was required to keep a meltdown from occurring. We have a $375 billion trade deficit with China, and Trump said it is a “privilege” to trade with America. Clearly, either God has a sense of humor or Trump understands the dollar’s connection to prophecy.
The Bible doesn’t clearly state that the Antichrist will come to power from a global financial crisis. Because the Beast of Revelation will very quickly gain total control over the global economic system, it is logical to assume that some type of calamity would aid his sudden rise to power. Our ability to see a monetary storm coming from this side of the rapture provides further evidence that the world is headed toward an end-time crash.
“He shall have power over the treasures of gold and silver, and over all the precious things of Egypt; also the Libyans and Ethiopians shall follow at his heels” (Daniel 11:43).
“Through his cunning he shall cause deceit to prosper under his rule; and he shall exalt himself in his heart. He shall destroy many in their prosperity” (Daniel 8:25a).