The Financial Storm Gets More Intense

I have a friend who is in the financial planning business. He is also a strong student of the Scriptures, particularly of the end times. Dennis and I have shared in many over-lunch discussions on the prevailing economic morass that the world is facing. Because of his business relationships, Dennis reads extensively from financial reports around the globe.

Well, this week I read an article written by Caroline Glick. She is the managing editor of the "Jerusalem Post" and her articles often appear in some of the leading US papers, as well as on the conservative website: www.townhall.com. This particular article appeared on July 18. The article was titled, "Caution: Storm Approaching." I would like to share just a few thoughts from this article.

Glick first focuses upon the economic condition of Egypt that grows more desperate by the moment. Since the revolution of January/February, Egypt's wealthy elite as well as foreign investors are taking their money out of the Egyptian economy and investing it elsewhere. This "capital flight" is happening throughout the Arab world, but affecting Egypt and Syria most directly. (That is because neither country has any oil to export). She quotes from an article by David Goldman and published in the "Asia Times Online" that states: "There is a capital flight and $500 million a week are leaving the Arab world....Most of the capital flight is coming from Egypt, and at an annual rate roughly equal to Egypt's remaining reserves." The bottom line is this: Egypt will soon be broke financially and unable to feed its starving people. Some analysts believe Egypt could begin defaulting on its loans as early as the end of this year.

Then there is the situation in Syria. President Assad is spending a lot of his country's reserves to pay for political loyalty and to protect the Syrian currency. Even if Assad survives and remains in power, financially his country is nearing the edge of the precipice.

And, of course, there is the situation in Greece. In spite of severe austerity movements by the Greek Parliament, one wonders if the seemingly inevitable can be avoided. If the Italian government goes into default, and it is perilously close, the ramifications for both the United States and European banking systems will be devastating. Then there are the economic woes of Ireland, Portugal, and Spain. The Germans and British have assumed overwhelming debt loads of other nations and are now in peril themselves.

Then Glick makes reference to the financial challenges here in the States. The current United States debt level stands at 98% of the Gross Domestic Product (GDP). Many of the European countries debt level is over 100% of GDP. According to Glick, an American commitment to more tax-and-spend policies can only have dramatic and drastic implications. We simply cannot keep changing credit cards and hope that the inevitable day of reckoning will never come.

In contrast, there is the Israeli economy. She writes, "Israel is likely to find itself in the unlikely position of standing along China and India as among the only stable, growing economies in the world." I had read elsewhere that Israel's economy was expected to grow at an annual rate of over 6% this year - one of the best growth rates in the world. God has not forsaken His people even though they are still in a condition of unbelief. That is because He still has a plan and purpose for them to accomplish.

Friends, I don't believe that either the American or the world economic conditions will change for the better any time soon. For too long we have put our confidence as people into the financial resources we have. I am reminded of these words from the ancient prophet Zephaniah, who wrote concerning the days before the fall of Jerusalem in 586 BC. His words still have meaning today: "Neither their silver nor their gold will be able to save them on the day of the LORD's wrath." (Zephaniah 1:18). The tottering world economies are another reminder that our hope is to be built - not on stocks and bonds, or on bank accounts and IRA's - but on Jesus Christ. He alone is our solid Rock.