10.19.09 AMERICA HEADED FOR POVERTY?

below are quotes from two governors of indiana. small print is current gov. mitch daniels, a conservative. large, former gov. evan bayh, a liberal. (as reported in world mag., 10.10,09, p6)

state govt finances are a wreck. the drop in tax receipts is the worst in half century. fewer than 10 states ended the last fiscal year with significant reserves, and three-fourths have deficits exceeding 10% of their budgets. only anemergency infusion of printed federal funny money is keeping most state boats afloat right now.
AMERICA IS ON AN UNSUSTAINABLE FISCAL PATH THAT THREATENS OUR FUTURE. CHANGING COURSE IS IMPERATIVE...
most governors i've talked to are so busy bailing that they haven't checked the long-range forecast. what the radar tells me is that we ain't seen nothing yet. what we are being hit by isn't a tropical storm that will come and go with sunshine soon to follow. it's much more likely that we're facing a near permanent reduction in state tax revenues that will require us to reduce the size and scope of our state govts. the time to prepare for this new reality is already at hand.
LAST MONTH THE OFFICE OF MANAGEMENT AND BUDGET PREDICTED THAT THE NATIONAL DEBT WILL INCREASE BY $9 TRILLION OVER THE NEXT DECADE - $2 TRILLION MORE THAN FORECAST JUST FOUR MONTHS EARLIER. GOVT NET INTEREST PAYMENTS EXCEED $1 TRILLION IN 2019, UP FROM $382 BILLION THIS YEAR. BECAUSE PROJECTED DEFICITS EXCEED PROFECTED ECONOMIC GROWTH, THE GAP WILL BE SELF-PERPETUATING.
the coming state govt reset will be particularly wrenching after the happy binge that preceded this last recession. during the last decade, states increased their spending by an average of 6% per year, gusting to 8% during 2007-8. much of the govt institutions built up in those years will now have to be dismantled.
THE CONSEQUENCES OF ALL THIS WILL NOT BE BENIGN. A WORLD SATURATED WITH U.S. CURRENCY WILL EVENTUALLY LOOK ELSEWHERE TO INVEST, CAUSING THE DOLLAR'S VALUE TO DROP. FOREIGN CREDITORS, THEIR CONFIDENCE SHAKEN BY OUR FISCAL PROFLIGACY, WILL DEMAND HIGHER PAYMENTS TO KEEP HOLDING OUR DEBT. THE NET EFFECT WILL BE 'STAGFLATION', THAT PERNICIOUS COMBINATION OF SLOWER GROWTH, HIGHER INFLATION AND INTEREST RATES, AND LOWER LIVING STANDARDS...
even if americans wanted to go back to their high spending, high borrowing ways, will anyone lend them the funds to spend like it's 2007 all over again? consumer credit will remain tighter as a matter of both sound business and new govt regulation. home equity appreciation is gone as a huge source of collateral, even if lenders were either willing or permitted to loan freely against it.
THESE EVENTS WILL DIMINISH OUR GLOBAL INFLUENCE, BECAUSE FISCAL STRENGTH IS ESSENTIAL TO DIPLOMATIC LEVERAGE, MILITARY MIGHT, AND NATIONAL SIGNIFICANCE. NO GREAT NATION CAN RELY UPON THE GENEROSITY OF STANGERS OR THE FORBEARANCE OF POTENTIAL ADVERSARIES TO MEET ITS SECURITY NEEDS. AMERICA IS DOING BOTH. CHINAA USES ITS MONETARY RESERVES TO CURRY FAVOR IN DEVELOPING COUNTRIES ONCE IN THE US SPHERE OF INFLUENCE; WE MUST BORROW TO PAY FOR THE WARS IN IRAQ AND AFGHANISTAN.

what to do?
1. seek FIRST the kingdom of God and His righteousness.
2. do not be conceited
3. do not fix your hope on riches
4. fix your hope on God who richly supplies all things to enjoy
5. do good
6. be rich in good works
7. be generous
8. be ready to share
...and when you have that operating , then
1. reduce your living standard, by degrees, to poverty level...content with covering and simple, nourishing food.
2. pay off all debt.
3. become 100% self-sufficient
4. and barter for whatever you can't produce yourself