I realize most Americans don’t want to think about the prospect of an economic and spiritual implosion in the U.S. They’re wrapping up the school year, going to graduations, going to weddings, opening up their pools, and planning their summer vacations. But we need to understand how much danger we’re in — from our own bad decisions, but also from the disastrous decisions being made in Europe and elsewhere around the world — and we need to talk about whether we can turn things around, and if so, how? My new book, Implosion, releases next Tuesday, June 12th. I wrote it not because this is what I want to talk about this summer, but because ignoring the seriousness of these issues won’t make them go away. Starting next week, I’ll write about these issues — both economic and spiritual — in more detail. But it’s worth noting that others are sounding warnings, as well.
In an op-ed in the Washington Post today, for example, Roger Altman warns that the European economy is on the brink of “implosion” that could have far reaching and devastating global implications. Altman is the chairman of Evercore Partners and served as the Deputy Treasury Secretary under President Clinton from 1993 to 1994. In his op-ed, he specifically urges European leaders to take emergency actions “to prevent an implosion” of the entire Eurozone economy that could, in turn, trigger a “global economic slump” that could severely harm the U.S., among others.
Excerpts: “”Europe is on the verge of financial chaos. Global capital markets, now the most powerful force on earth, are rapidly losing confidence in the financial coherence of the 17-nation euro zone. A market implosion there, like that triggered by Lehman Brothers collapse in 2008, may not be far off. Not only would that dismantle the euro zone, but it could usher in another global economic slump. In effect, a second leg of the Great Recession, analogous to that of 1937….Europe has entered this danger zone because monetary union, i.e., covering 17 very different nations with a single currency, only works if fiscal union, banking union and economic policy union accompany it. Otherwise, differences between them in competitiveness, budget deficits, national debt and banking soundness can cause severe financial imbalances. This was widely discussed when the original monetary treaty was forged in 1992, but such further integration has not occurred. How can Europe pull back from this brink? It needs to: (1) immediately install a series of emergency financial tools to prevent an implosion and (2) put forward a detailed, public plan to achieve full integration within six to 12 months….”
- AP: “Global economy at risk as U.S., Europe and Asia slow”
- CNBC: “Euro-zone governments have around three months to ensure the survival of the single currency, billionaire investor George Soros said in a speech on Saturday.”
- CNBC: “The Tokyo market slumped to a 28-year low on Monday as Asian shares dived on fears of a nightmare scenario of euro-zone breakup, U.S. economic relapse and a sharp slowdown in China.“
- FLASHBACK — Washington Post: “Tremors from a euro collapse would be global, with U.S. recession likely”
We urgently need to pray and fast and implore the Lord for mercy on our nation at this critical time. We need to heed the words of 2 Chronicles 7:14, “If My people, who are called by My name, will humble themselves and pray and seek My face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.” This is actually an explicit promise for the Jewish people and the nation of Israel. It is not a hard and fast promise for us as Americans. But it offers principles we ought to follow. If we humble ourselves and pray and seek the Lord’s face and turn from our wicked ways, then hopefully the Lord will not only hear from heaven but will, in fact, forgive our sins and heal our land. If we don’t follow this road map, we are increasingly at risk of God taking His hand of blessing and grace off of our country and allowing us to implode. Let us pray without ceasing, and encourage our family and friends to join us, as well.