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World Bank chief warns of financial crisis World Bank chief Robert Zoellick on Saturday warned of a "new and more dangerous" time in the global economy...
US Recession Risks Rises The threat of a new recession is rising in the United States, economists say, as they slash their ..
Unsafe US debt remains safe haven US Treasury bonds remain a hot ticket for investors looking for a low risk investment in a volatile market despite the unprecedented ...
US borrowing tops 100% of GDP US DEBT shot up US$238 billion (S$287.2 billion) to reach 100 per cent of gross domestic project after the government's debt ceiling was lifted
Consumers consumed by debt The average consumer may feel far removed from the heated debates concerning the $14.3 trillion debt ceiling. But the truth is...
Financial Crisis II. Get out of debt now There is increasing talk among traders and financial analysts that the latest slump in global share markets
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Global financial meltdown by default

 

Scriptural Financial Freedom Obtaining God's blessings

 

 

 

 

 

Global Financial meltdown by default

Here at Scriptural Financial Freedom, we have been warning for months of a second global financial crisis. And now the US has lost its prestigious triple A credit rating for the first time in its history, a situation that could trigger chaos in the global markets and have a catastrophic impact on global economic growth.

The impact of a US default would be severe for the stability of the entire global economy. There would be severe ramifications for the dollar, interest rates and institutions holding US assets.

IMF chief Christine Lagarde warned today the clock was ticking on a US debt crisis, as the dollar slid to new lows amid concerns of a looming and unprecedented debt crisis by the world's top economy. She warned a default "would be a very, very, very serious event. Not for the United States alone, but for the global economy at large."

There is increasing talk among traders and financial analysts that the latest slump in global share markets, the eurozone crisis and the dollar reflects a second installment of the financial crisis drama. Morgan Stanley's global developed markets strategist and renowned forecaster of the last global crash, Gerard Minack, said what started as a market correction may be morphing into something more severe.

"I think it's starting to change. I think we're starting to see broader growth concerns, we're starting to see some leading indicators of growth wobble a little bit and, as a result, we're now seeing the more severe losses spread to other markets, so I do think this is starting to change from a Europe problem to a global problem."

 

In the previous crash, stock markets crashed around the globe, large financial giants collapsed. The lucky few have been nationalised. Even some economies hang on the brink of collapse. Now we're facing a possible second global financial crisis in less than 5 years. How does a global financial meltdown affect us? Are things going to get worst? Or are they going to get better? Some have even asked: "Is this the end?"

Well, not exactly. To understand what's happening around the world, we need to grasp the concept of birth pangs. The financial crisis may ease, growth will take place once again, but the following financial crisises will be longer, more intense, more painful - just like birth pangs. About ten years ago in 1997, there was the Asian Financial Crisis. In the 1980s, there was double digit inflation. In fact, you can trace the ups and downs of the global economy throughout the ages. The collapse of the German Deutsche Mark. The Black Monday. The Great Depression.

In any case, financial planning must take place under God's sovereignty. The Bible teaches us to plan for any economic situation. The Scriptural principles that are found in Scriptural Financial Freedom are financially and Biblically sound, no matter what takes place in the economy. God has called every Christian to a unique role in our uncertain economy - to be financially free. For that, we must apply those Biblical principles.

The first key to riding any financial crisis is to be debt free. The only absolute way to become debt-free, in the first place, is to have a financial plan prepared at the beginning of each year that does not allow for the use of debt, and that you will stick to through self-discipline.

The major problem most people face is how to get out of the debt that they are already in. there are only two ways to get out of debt after making the decision to avoid the use of debt: Examine the assets you have to see which ones could be sold in order to reduce debt; and in the absence of assets to sell to eliminate debt, set up a repayment schedule and strictly adhere to it.

Action Item:

Whatever debt you have, its time to start taking action. Of course, Not everyone has the luxury, however, of selling assets to repay debt. Many of you are perhaps deeply in debt and have no assets at all. In fact, statistically, 80% of Amercians owe more than what they own; therefore, selling assets is not an option. The only option, then - other than receiving an inheritance or striking oil - is the slow, painful, and difficult process of making monthly payments. You must decide, first of all, not to take on any more debt, and second, to set up a schedule of debt repayment.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

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Financial Freedom Tips & Toolbox

Today's Pick: The dangers of Debt The Dangers of Debt by [Stacy Johnson]

 

 

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