Economic Meltdown
Averted or Just Delayed?

Has an economic meltdown been averted, or just delayed? Will it happen anyway?

Analogies and metaphors are all over the airwaves and print media, used as ways to illustrate the seriousness of the risks facing “the economic infrastructure” of the United States.

“Circling the drain” is purportedly the term for the American economy used by Treasury Secretary Paulson in a private meeting with Fed and Administration officials. “Teetering on the brink” of disaster is another term pundits have employed. The U.S. financial system was just 500 trades away from “Armageddon” according to an article we linked here at garnertedarmstrong.org. As to the posturing in Congress on the $700 billion “bailout” proposal, one pundit said it is as if the whole house is on fire, and the politicians are arguing about which door they should use to get out.

Opinions are all over the map as to whether there should be a bailout, or whether it will only represent a temporary respite from the inevitable. Will the politicians, lobbyists and lawyers find ways to divert the funds toward their own interests? Can anyone or any group be trusted to equitably administer such a gigantic sum of money?

One man who has proven to be a true patriot over the decades made a statement that bears consideration. Newt Gingrich, appearing on Fox News was asked whether the $700 billion bailout plan was “catastrophic” in and of itself. He said, “Yes, I think it’s a disaster. I think it’s going to lead to 20 years of political corruption, lobbying influence and bureaucratic micro-management of the finance sector. I mean, my advice to the president would be bring in the people who advised Ronald Reagan, put them around a table and ask them how to fix this. But do not go with this Wall Street based monstrosity.”

Is it true that credit markets were about to lock up completely? That is what top officials in the Treasury Dept. and the Federal Reserve are telling us. The economy would have come to a grinding halt with no more credit being extended for houses, cars, or even routine credit purchases. Whether or not we believe the doomsday characterizations is irrelevant. They made a believer of President Bush, and many in the House and Senate as well.

As the Federal Government has intervened on behalf of a growing list of icons in the American financial community, we’ve heard again and again that this or that bank, investment firm or insurance company was “too big to fail.” With the Government taking financial responsibility for incomprehensible sums of bad debt and laying it on the shoulders of taxpayers for generations to come the ultimate question becomes, is the United States of America too big to fail?

UN chief Ban Ki-Moon is calling for “global leadership” in addressing the economic crisis, concerned that UN goals for poverty funds may not be met. Europe is reacting with disdain toward the U.S., likening America to Albania and generally gloating over the economic panic. Just prior to the President’s statement calling for Government intervention, an article appeared in the German Der Spiegel which says, “In fact, it really does look as if the foundations of U.S. capitalism have shattered.” Let’s hope that’s just wishful thinking on behalf of some across the pond.

Garner Ted Armstrong expected that one of the major factors that would bring about the ten-nation coalition described by Bible prophecy, as the “beast” power would be worldwide economic collapse. We may not have long to wait before we find out whether or not he was on to something.
 


Mark Armstrong
 

Breaking News Stories
Go here for the latest news stories on this subject. –news story added 3 December 2008
 
Further reading:
 
Our Commentary
Global Financial Meltdown...Now Near?  –by Garner Ted Armstrong
Is A GLOBAL ECONOMIC MELTDOWN UNDERWAY?  –by Garner Ted Armstrong
The Bills Are Now Due  –by Jim Josephsen
Wall Street Journal says: Load the Pantry  –by Mark Armstrong
Economic Collapse - Planned Disaster  –by Jim Josephsen
 
21st Century Watch
Is a Global Crash Just Ahead? [volume 1, number 7]
Will the Dollar Be Replaced as the World Currency?  [volume 2, number 1]
America's Economic Woes by Jim Josephsen [volume 11, number 1]
 
Quote by Garner Ted Armstrong:
“Go to now, ye rich men, weep and howl for your miseries that shall come upon you” (James 5:1). So says God to the liars, cheats, extortionists, conspirators, “insider traders” and sundry assorted forms of crooks who are running like rats from a sinking ship, scurrying to find safe havens for their stolen loot. –Global Financial Meltdown...Now Near?
 
For decades, I have warned millions of Americans and people around the world that the beginning of the prophesied Great Tribulation (Matthew 24:21,22) would most likely be caused by a global economic collapse! –Global Financial Meltdown...Now Near?
 
Resources
Economic Crisis of 2008 Bailout (finance) Great Depression
Financial crisis of 2007-2008 January 2008 stock market volatility Subprime mortgage crisis
United States housing market correction Oil price increases since 2003 Subprime crisis impact timeline
Global Leadership Foundation Economic Collapse  
     

Photos:
Left:  Wall Street
Center: Oil prices 1994 to March 2008
Right: Recent run on a bank