US unemployment is at 9.7%; the highest rate in 26 years. The US budget deficit has risen to a nearly incomprehensible $1.4 trillion (Dow Jones, September 8, 2009). Long-term inflation fears are mounting, but the US Treasury plans to pump even more money into the financial system (“Stability depends on more capital,” Financial Times, September 3, 2009). The implications of this third point are important to understand.
Against the wishes of other nations, the US and Britain have implemented a number of programs to inject money into their economies. This is making global investors and economists very nervous. Simply, the fear is that recent business profits and stock-market gains are unsustainable, since they are largely the result of labor cuts combined with government subsidies. “The profits that spurred the optimism have come from cost-cutting, in the labour force, restocking of inventories and some subsidized buying, such as car scrappage schemes” (BBCNews.com, September 4, 2009). As the BBCNews article summarized, “The bitter truth is that none of these are sustainable.”
Finally, there is another very recent trend worth noting. CNNMoney.com reports that “corporate insiders,” who have insight into company profits and coming stock-market swings have begun selling stock with an urgency not seen since the onset of the subprime crash two years ago (September 10, 2009). Few realize how quickly the world economy could convulse, and US and British markets could collapse. Many fail to remember that the last stock-market rally of such magnitude was followed by deflation and the 1930’s Great Depression.
And this brings us back to Japan and the US and Britain in prophecy. Japan is the world’s second largest economy, and it should be very sobering to hear that Japan’s new Prime Minister has been very clear that his party’s platform is to be “less subservient” to the US – including in economic policy.
In a recent New York Times op-ed piece Mr. Hatoyama “slammed US-style capitalism and discussed an end to the era of US unilateralism” (NPR.org, September 1, 2009). He desires to “move Japan closer to Asia” and is willing to do this at a cost to the current US-Japan relationship (The New York Times, September 9, 2009).
If Japan were to move even some of its $1 trillion of foreign reserves away from the US dollar, or join other nations in giving support to alternative “reserve currencies,” this alone could trigger rapid and catastrophic devaluation of the US currency and a collapse in the US economy that would make the recent sub-prime crisis look mild by comparison.
Unfortunately, a period of Japanese and Asian prosperity will coincide with the demise of the US and British-descended nations. Your Bible predicts that many nations; including the eastern powers, will initially become very wealthy trading with a restored European empire (the “Beast” of Revelation 18:3). However, Japan will then support – if not be a leader of – the eastern nations’ attack on the Beast (Daniel 11:40-45, Revelation 16:12). Japan is known as “the land of the rising sun,” and, interestingly, Revelation 16:12 can be translated as the kings of the east or the kings from the rising of the sun (Darby Translation).
Perilous times are ahead, but these will be followed by the glorious return and 1000 year reign of Christ and His saints! Please read The United States and Great Britain in Prophecy to better understand what lies ahead for all the nations of the world.