Will China Default on Toxic Derivatives?
Sep 02, 2009
Reuters is reporting that China may be getting ready to default on all the toxic derivatives that it has unwisely purchased from foreign banks.
If this happens, you can be sure that it will be the financial equivalent of 9-11 for Babylon.
The Fed and Treasury Dept. have been working hard to forestall the unwinding of derivatives and to try to unwind them slowly so as not to cause a castastrophic collapse. But there are hundreds of trillions of dollars worth of this toxic sludge out there, and very little of it has been unwound at this point, despite the huge deficit spending.
Sooner or later, this will hit the fan, and the top Babylonian bankers know this. They won't admit it in public, of course, because any such announcement would immediately bring the crisis to a head and collapse the financial system within the hour.
But it is possible that God will use China to bring things to a head. People have prophesied for years that China would "invade" America. Perhaps China will be God's agent after all. It's a different kind of invasion, of course, but we should expand our horizons to see all possibilities. Interpretations of prophecy are usually wrong before the fulfillment.
Dr. Stephen Jones