How many of you read my post “Covid 19 Coupled with a Major Debt Crisis – What’s Next?” dated June 15th 2020? I thought this to be one of my most important posts for 2020. If you have not read it, can I suggest that you do.
In that post some of the best qualified economic/political pundits gave their views on the likely outcome of Covid 19 coupled with the existing debt crisis of most countries. Debt levels are so great that even with interest rates barely above zero, countries cannot pay down the debt. It also means their currencies are next to worthless.
A FINANCIAL RESET IS INEVITABLE WAS THEIR CONCLUSION
In Australia debt is rising fast. No government can stop the inevitable financial crash.
As you would expect, the combination of failing revenue and runaway spending has resulted in a boost to government debt with total government liabilities at $1.3 trillion by the end of May – $300 billion higher than expected.
Net debt has hit a record $463.7 billion compared to $373.6 billion in the previous financial year, virtually destroying the Morrison Government’s stated aim of clearing all government debt by the end of the decade.
The Finance Department numbers are sobering but few are arguing that the Federal Government has been spending too much – indeed much of the economic commentary is urging them to ramp up spending now that interest rates have effectively reached their lower limit and the economy still needs stimulus.
The key to how the Federal Government will react to such calls will be announced by Treasurer Frydenberg in an economic update in late July, with the 2020-21 budget now due to be released in early October.
This is all part of God’s end times scenario. If your trust is in governments, yourself, or anything other than God then it is misplaced. Only He can give you true peace, the peace that comes from realising that He is in control, He has revealed the truth about the world and us in His Word (BIBLE) and we know the end of the story. Jesus will return first to rapture His church and then to rule and reign 1000 years from Jerusalem.