In recent years, Americans are becoming increasingly aware that our
nation is accumulating massive government debt in addition to record
trade deficits and looming unfunded liabilities. As a nation we
are entering into some dangerous territory. In the subtle words
of former Federal Reserve Chairman, Alan Greenspan, “…the current
imbalances are large and unusual from a historical perspective.”
And indeed they are. When President Ronald Reagan took office in
1981 the national debt stood at $1 trillion dollars. While
President Reagan considered this figure to be “incomprehensible” it
might be helpful to consider that a trillion seconds would take 30,000 years.
With that in mind, the current
national debt has now exceeded $9 trillion dollars! In 2007
the Annual Budget was $2.7 trillion, and the fiscal year 2008
Annual Budget is expected to be almost $3 trillion dollars! In
prepared testimony before the Senate Budget Committee in 2006 Alan
Greenspan warned that “…the federal budget is on an unsustainable path”
and
concluded with the observation that “our budget position is unlikely to
improve substantially in the coming years.”
So what does this mean for the American people? Put simply,
America is continuing on an unsustainable path toward fiscal
bankruptcy, and our financial reckoning day is now looming on the
horizon. America is now the world’s largest debtor nation, and
our new Fed chairman Ben Bernacke will not be successful in averting
this monetary crisis. As Adam Smith has stated in his classic
book The Wealth of Nations, the only way to “liberate”
excessive national debt is through a bankruptcy. What is true for
individuals is also true for nations. The theme of this new book
will help explain how we got into this intractable mess and what the
likely outcome will be as we enter into the 21st century.
Although several fine books have been written concerning these
financial and economic issues, this book promises to be different in
two important ways. First, we believe that many individuals who
are responsible for our coming fiscal and monetary crisis are the same
individuals who are also promoting an end to our national sovereignty
and the establishment of regional and world government. This
“globalist” topic is discussed throughout the book. Secondly, and
more importantly, this book has been written from a distinctly
Christian worldview which helps us comprehend the times in which we are
living. “The grass withers, the flower fades, but the word of our
God stands forever” (Is. 40:8).
Whereas the Bible contains timeless truths and moral guidance for our
daily lives, it also contains prophetic insights, which relate to our
present age. For example, the Bible has clearly predicted the
rebirth of the nation of Israel, the Russian-Arab alliance in the
Middle East, the rise of Europe and China on the world scene, and
numerous other events which are essential for a complete understanding
of our world and the ultimate destiny of America. In a
significant way, this is my best opportunity to explain several complex
monetary-political-prophetic themes in their entirety instead of in
“bits” and “parts,” which has so often been the case in recent
years. It is my purpose to challenge your thinking and move you
to make some important personal and financial decisions. At the
very least, you will be making some new discoveries and learning some
helpful, yet painful, truths that you need to know – and once you learn
these truths you cannot “unlearn” them. “Because in much wisdom
there is much grief,” said King Solomon, “and increasing knowledge
results in increasing pain” (Eccl. 1:18).
With respect to space limitations and for the sake of brevity, every
attempt has been made to remain concise yet thorough in presenting the
material in this book. Important Web sites have been inserted
into the text of every chapter for the reader’s immediate referral and
research. I have organized this book into four parts that follow
in a logical and deductive manner. In Part One we consider a
brief history of coin and currency and the evolution of paper money
issued by central banks. This includes a rather lengthy
discussion regarding the creation, operation, and legacy of the Federal
Reserve System since 1913. In Part Two we examine the growth of
the Welfare State, and the incredible burden which America’s retiring
baby boomers will place upon our nation in the near future and how this
will contribute to our unprecedented fiscal problems.
We will also see how domestic and foreign issues are converging to
script the perfect financial storm in America – everything from asset
bubbles, trade deficits and derivatives exposure to an eventual bond
liquidation, currency collapse and hyperinflation. As Richard
Duncan has cautioned in his book, The Dollar Crisis, “…it is
only a matter of time before the United States is not
creditworthy.” This section concludes with a careful look at our
day of reckoning and what we can expect when that fateful day finally
arrives.
In Part Three I have
outlined what I believe is America’s eventual road to Third World
status, and its changing role among the nations of the world.
This will necessarily be a direct result of a devastating financial and
economic collapse in the United States. It has been noted how
this new role for America is also being assisted by a policy of
wholesale immigration and the promotion of NAFTA, CAFTA, the NAU-FTAA,
and other schemes for an EU-style regional government within the
Western Hemisphere. I have presented significant changes, or
“paradigms,” that are currently developing in the world that will
produce a new East/West global realignment of power. This
includes a review of the European Union, China, Russia, and the
increasing volatility throughout the Middle East – particularly the
influence of the OPEC nations and the future of the Saudi royal family
in Saudia Arabia with respect to Islamic fundamentalism.
Finally, in an effort to put all of this into perspective, I turn the
reader’s attention to a prophetic scenario for the 21st century as
indicated in the Bible, especially as it relates to the tiny nation of
Israel. We can clearly see how world events are falling into a
precise pattern just as the Bible has predicted hundreds of years
ago. It is seriously time to dust off your Bibles and realize the
lateness of the hour that we are all living in.
In Part Four, I have concluded with some thoughts for putting your
personal and financial affairs in order. This is a book on how to
survive America’s monetary and political decline in the 21st
century. It is also a book, however, on how we can ultimately
survive our own “reckoning day” which lies ahead beyond this
world. It is my prayer that all who read my new book will
earnestly seek the truth while it can still be found in God’s eternal
Word. “For you shall know the truth, and the truth shall make you
free” (Jn. 8:32).
Charles H. Coppes
February 2007
