Global Debt Crisis?
“The Lord will open for you His good storehouse, the heavens, to give rain to your land in its season
and to bless all the work of your hand; and you shall lend to many nations, but you shall not borrow”
(Deuteronomy 28:12 NASB).
New York City is famous for bright lights and Broadway, but tucked away on the side of a building on 44th Street the debt clock also garners tourist attention. In real time, the clock displays the accumulated debt of the United States Treasury, which as of this June, was approximately $35 trillion. The national debt has been driven by ever increasing budget deficits — borrowing beyond tax revenues to finance government programs. When a politician promises to reduce the deficit, it means that they will still borrow and add to the debt, just not as much as the prior administration. However, all deficits — spending more than what is taken in — adds more financial burden to future generations. When interest rates are rising, it is even more pronounced. The Bureau of Economic Analysis (BEA) estimated that at the end of 2023, one of every six dollars the government spends goes just to pay interest on the debt. It has been increasing every year since 1949.
The Rest of the World
Many of the largest countries are in the same situation, with global debt levels at a record high of $313 trillion in 2023 — over three times the amount of money generated by the domestic sale of goods and services. India, Argentina, China, Russia, Malaysia and South Africa registered the largest increases.
However, does it really matter because governments owe the money to their own citizens or to other governments? During economic booms, the answer is likely no. But when debt rises faster than economic output, the government must use a heavier hand in trying to try to assure economic growth, and taxes must become a bigger part of revenue.
When that occurs, the government must declare default, signaling its creditors — other countries, professional investors and individuals — that it can no longer meet the original terms. This can cause long-lasting economic damage. According to Barron’s, four countries are currently in default on their debt: Belarus, Lebanon, Sri Lanka, and Venezuela. Remaining countries at highest risk: Argentina, Egypt, Ghana, Kenya, Pakistan, Russia, Tunisia, and Ukraine.
A country cannot declare bankruptcy as a private business can do. It must agree to a restructuring plan and renegotiate the terms of its debt and interest payments with all parties. Negotiations may take years and require the assistance of organizations like the World Bank and the International Monetary Fund (IMF). The goal is to prevent widespread economic collapses by providing financial assistance, promoting economic stability, and coordinating policies. While the global economy can face significant challenges and downturns, the concept of the entire world going bankrupt, similar to an individual or a company, is not feasible in the traditional sense.
What can happen, however, is that economic crises can affect the global economy as a whole. If multiple countries experience severe economic downturns or financial crises simultaneously, it can have widespread effects on the global economy. This can lead to recessions, depressions, currency crises, and other negative consequences that can impact countries worldwide. University of Pennsylvania’s Wharton School of Business estimates that, under current policy, the United States has about 20 years (due to the demographics of US society) before no amount of tax increases or spending cuts could avoid the government defaulting on its debt. Unlike “technical defaults” where payments are merely delayed, this would be much larger and would reverberate across the world, especially in the five countries that hold over half of all US debt. (Other countries face a similar situation due to changing demographics as described in this issue’s first News and Views Social item).
The Plagues of Revelation
In his 1916 Author’s Foreword to The Battle of Armageddon (Volume 4), written just weeks before he finished his earthly course, Pastor Russell wrote, “The Lord will allow mankind now to go their length in carrying out their own plans and schemes. He will allow them to demonstrate the futility of all these schemes, and that nothing but divine interposition will save them from wrecking the entire fabric of society. Indeed, he will permit the wreck, and then reorganize humanity under Messiah; for he promises that his kingdom shall be ‘the desire of all nations.’ Haggai 2:7.”
“I saw another sign in heaven, great and marvelous, seven angels having seven plagues, which are the last, for in them is finished the wrath of God” (Revelation 15:1 RVIC). The Revelation chapters containing the description of the plagues reveal how the Day of Wrath (Zephaniah 1:14-18) is the time of judgment of the world. Revelation 15 introduces a “glassy sea,” reminiscent of the great basin in the Temple where the priests washed themselves. This introduced the Harvest of the Gospel Age, when Jesus returned to deliver his church and destroy the old world.
● First plague — A malignant sore upon those who had the mark of the beast or worshipped his image. The rich and powerful were hurt the worst, as they were tied to the controlling power of the nominal churches. In the long depression of 1873-1896, nominal churches were disrupted by consecrated Christians leaving and liberals arising in power. Meanwhile, in 1878, many Jews began returning to what was then Palestine.
● Second plague — Every living soul on earth and in the sea dies. Sixteen million were killed in World War I during 1914-1918. Powerful Church-State unions in Russia, Germany and Austria were broken. The Balfour declaration of 1917 allowed Jews to claim Palestine for their homeland.
● Third plague — fountains and waters became blood. Sectarian organizations fell, as fundamentalists who had rejected many Bible believers as heretics were now themselves ostracized. The Great Depression of 1929-1939 was blamed on Jews, many of whom fled to Palestine.
● Fourth plague — men were scorched with heat from the Sun. World War II from 1939-1945 proved that the world was not becoming more peaceful. Liberals in the churches fell from favor. Jews fled Central Europe to a new home in their Promised Land.
● Fifth plague — darkness came upon the beast. The rise of Communism, and especially in the USSR, greatly damaged Catholicism and disrupted the power of the Pope. From 1945-1989 Jews fled from Eastern Europe to Israel.
● Sixth plague — drying up of the river Euphrates. The wealth of Babylon has grown significantly. However, rising world debt suggests an approaching Day of Reckoning for major nations. This will likely be manifested as a worldwide depression brought on by the inability of nations to meet financial obligations committed to by political promises. Jews remaining in the Western World will likely flee for better opportunities in Israel, or as a result of rising antisemitism.
● Seventh plague — Armageddon. God brings the final destruction upon Babylon and rescues Israel from Gog and Magog (Ezekiel 38-39).
As the final stage of our Lord’s harvest work, and based on Exodus 12:29, the Bride class will be complete as Armageddon commences, devoted ones in the Christian world will encourage Israel to look to Jesus (Song of Solomon 5:8-6:1), the Great Company might linger into the trouble (Revelation 7:14, Genesis 19:19-23), the Ancient Worthies will be raised during Armageddon to point Israel to their deliverer (Micah 5:5), Israel will come into harmony with God’s arrangement, and gradually blessings will flow out to a weary world. Let us look forward to being part of dispensing kingdom blessings!