Leveraged up to the eyeballs...

There has been much said in the media lately concerning the economy and government bail-outs for the mortgage and banking industries. While the United States has been grossly leveraged since Franklin D. Roosevelt's administration...a fundamental shift has occurred this week.

The chief bastion of democracy is bankrupt and hemorrhaging money - but the government has taken action this week to nationalize Freddie Mac, Fannie Mae, AIG, and now the entire banking industry. The "Free Market" that our capitalistic society was founded upon has been mortally wounded.

I do not believe the spirit of American capitalism will ever completely recover from these most recent events. In fact, I will take this opportunity to make a prediction.

An Obama administration next year will demonstrate how "conservative" the Bush policies actually were.

Greed has put us on the path to destruction.
Arrogance is set to sink us within the next 5 years.

Best Case Scenario:
Under a McCain/Palin administration the federal government will nationalize critical elements of our economy over the next four years in an attempt to safeguard growth and prosperity. This action will pave the way for higher taxes, a significant increase in government "oversight" and "regulation" of the economy such that our system resembles the government controlled "free" market much like contemporary China.

Whats wrong with this? Our prosperity is so propped up it is a sham. The government spends far more money than it brings in. Couple that with the fact that the average American is so upside-down financially they literally live hand to mouth. Some drive a Lexus, wear a Rolex, but are barely able to pay their current obligations.
If wealth is measured by assets less liabilities...this country, and 90% of those living here are DEAD BROKE!


Most Likely Scenario:
Expect the market to be rescued by sweeping government seizure of private institutions. Social "reforms" drive us further from the traditional values of personal responsibility and accountability to God. Humanism becomes the unofficial religion of the culture.
The next administration will take steps to entwine and encumber our Federal government with international legislation and governing bodies like the UN and global trade groups. In order to stabilize the economic future of world markets they are likely to become much more consolidated in the near future. Expect global currencies to go paperless and coinless in the next four years. Exchange rates will be automatically accounted for in all international transactions. A common global currency is coming.

Worst Case Scenario:
An Obama administration will lead the country into four years of entrenching government regulations into every aspect of our lives. New programs will require the tax burden to be increased by 20% or more. He will build upon the government intervention to rescue the banking industry and use that momentum to direct private business toward policies and products that favor a socialistic system of centralized control. Cultural dependence upon the provision of government will deepen PROFOUNDLY.
Religious organizations will lose their tax-free status. Christians will face increasing persecution in the media and in the marketplace. New laws will limit the practice of Biblical Christianity.

In this scenario, I expect the government to be reconstructed to make the US beholden to Global governance. A Global government will begin to form in order to provide world peace (the end of the War on Terror) and global economic stability. A global currency will be established by the end of 2012.

(Ahem.)

I can not see the future, but if ANY of these predictions are correct - we are in store for tough times.

The situation is NOT hopeless, however. God is sovereign. God is good. Circumstances will never be such that He is not in complete control.

What may seem "bad" to us... may not be bad at all.