DW: ‘S&P sounds alarm over US debt ceiling.’ AW: Hurricane Harvey may cost $160 billion.


The German publication Deutsche Welle (DW) reported the following: from Standard & Poors (called S&P below):

S&P sounds alarm over US debt ceiling

The US ratings agency has warned that failure to raise the country’s debt limit by the end of September could have worse consequences than the collapse of Lehman Brothers during the financial crisis.

31 August 2017

US President Donald Trump has warned recently that he is prepared to shut down the government if he didn’t get funding for his controversial wall to be built along the Mexican-US border.

The threat comes during fraught bi-partisan debates in Congress about Trump’s budget and the need for raising the US debt ceiling by the end of the month. Currently, the government is funded through the end of the fiscal year ending September 30 under a temporary measure passed in May. …

US debt default in the cards

The debt ceiling is a legal cap on how much money the government can borrow to fund its budget deficits and meet debt obligations. The United States actually surpassed its official debt limit at the end of 2012, but it has been suspended and reset multiple times over the years, most recently on March 15. The national debt currently is $19.84 trillion, compared to the $19.81 trillion limit.

Failure to raise it from the current level could lead to default, sending shockwaves across global markets.

“With markets somewhat jittery about a possible selective default of the US sovereign, worries of a shutdown threat only adds to their concerns,” the Bovino report said. http://www.dw.com/en/sp-sounds-alarm-over-us-debt-ceiling/a-40309037

Many have expressed concerns about the impact of the USA not increasing its so-called debt ceiling (see WP: 5 reasons why hitting the debt ceiling would be disastrous. COGwriter: Bible teaches something worse about debt.).

It is ‘so-called’ because unlike real ceilings, this one has been raised repeatedly.

The USA continues to spend money that it does not have.

Hurricane Harvey looks to add to the debt according to Accuweather (AW):

Hurricane Harvey will be most expensive U.S. natural disaster at up to $160 billion: AccuWeather

Hurricane Harvey will be the most expensive natural disaster in U.S. history, AccuWeather said Wednesday, estimating the full cost at close to $160 billion. That would be similar to the combined cost of Hurricanes Katrina and Sandy, the weather service said in a report. The cost will shave 8/10 of 1% off GDP, said the report. “Business leaders and the Federal Reserve, major banks, insurance companies, etc. should begin to factor in the negative impact this catastrophe will have on business, corporate earnings and employment,” said Dr. Joel Myers, founder and chairman of AccuWeather. “The disaster is just beginning in certain areas.” http://www.marketwatch.com/story/hurricane-harvey-will-be-most-expensive-us-natural-disaster-at-up-to-160-billion-accuweather-2017-08-30

While I will refrain from commenting on the accuracy of forecasts from Accuweather, the reality is that disasters like Hurricane Harvey do cost money.

And any money from the US Federal Government will be money that is borrowed.

The moral direction and political acrimony in Washington, D.C. will prevent real solutions to the debt.

Oh yes, the debt ceiling will be raised (‘legally’ or otherwise), but that will not reduce the debt of the USA.

The USA is going in the wrong direction and needs to repent.

The prophesied consequences of its debt are worse than the politicians seem to be able to realize. Notice the following prophecy:

2 And the Lord answered me:

“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay. …


for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them.  (Habakkuk 2:6-8, ESV).

The increasing USA debt is so serious that people need to take action–which is why God said people should run once they understand it.

While Standard & Poors is correct that the debt-ceiling should set off alarms, the alarms it should set off is that the USA needs to change and quickly work to reduce its debts.

Several items of possibly related interest may include:

Is God Calling You? Alfred E Carrozzo wrote this.
What Did Christ Mean – Many Are Called, But Few Are Chosen? This article was by Raymond McNair.

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