US Approaching Insolvency, Fix To Be 'Painful': Fisher

The United States on a "fiscal path towards insolvency"; Portugal’s "financial collapse appears inevitable"; The collapse of the Euro zones single currency "is not unthinkable".  Do all those comments signal a healthy and robust global world economy?  Hardly, in fact quite the opposite.  The only thing that has kept the whole house of cards from falling apart is all the debt financed capital that has been injected into the various national economies.  These programs, along with years of fiscal mismanagement, have driven up sovereign debt loads to unheard of and unsustainable levels and have now begun to destabilize both the American greenback and the Euro currency.

A time is fast approaching when the economy of the world will be collapsed and be replaced by a new system which will ultimately be controlled by a future global world leader, (and a series of 10 economic zones, the 10 Kingdoms of both Revelation 17:12 and Daniel 7:24).  It's likely that this new system will be based on some form of state capitalism, which is a fancy phrase for state controlled socialism.

Are we close to this prophetic fulfillment?  It's our opinion that we are, and we also believe that it would not take much too effort to push the present economic system over the cliff.  A further destabilization of the middle-east with resulting skyrocketing of oil prices might be one of the triggers.

From the news articles:

The United States is on a fiscal path towards insolvency and policymakers are at a "tipping point," a Federal Reserve official said on Tuesday. “If we continue down on the path on which the fiscal authorities put us, we will become insolvent, the question is when," Dallas Federal Reserve Bank President Richard Fisher said in a question and answer session after delivering a speech at the University of Frankfurt. "The short-term negotiations are very important. I look at this as a tipping point."

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Portugal's government is on the verge of collapse after opposition parties withdrew their support for another round of austerity policies aimed at averting a financial bailout. By most measures, Portugal is one of the eurozone's smallest and feeblest economies but its financial collapse would likely trigger a fresh bout of nerves over other debt-heavy -- and bigger -- euro countries such as Spain, Belgium and Italy. "Portugal seems very likely to become the third ... eurozone country to need a bailout," Emilie Gay, European economist at Capital Economics said.

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Warren Buffett told CNBC Thursday that the collapse of the euro zone's single currency is far from "unthinkable." "I know some people think it's unthinkable...I don't think it's unthinkable," Buffett said in an interview. Still, Buffett said he believes there will be "huge efforts" put forth to preserve the euro. In the meantime, struggling peripheral countries like Portugal must find a way to resolve fiscal crises.

US Approaching Insolvency, Fix To Be 'Painful': Fisher

Portugal's financial collapse appeared inevitable on Thursday, as markets took the government's resignation as proof the debt-heavy country will lose its year-long battle to avoid a bailout. Investors pushed the interest rate on Portugal's 10-year bonds to a euro-era record of 7.71 percent - an unsustainable financial burden that could soon force the country to ask for a rescue like Greece and Ireland did last year. Analysts estimate a bailout would amount to euro80 billion ($113.02 billion).

http://www.cnbc.com/id/42209447

Portugal braces for govt collapse over debt vote

http://finance.yahoo.com/news/Portugal-braces-for-govt-apf-4252480887.html?x=0&.v=4

Portugal edges toward bailout after govt quits

http://hosted.ap.org/dynamic/stories/E/EU_PORTUGAL_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-03-24-09-46-58

Euro's Collapse Is Not 'Unthinkable': Warren Buffett

http://www.cnbc.com/id/42248019

Portugal Faces Debt Crisis, Bailout Looms