If anything shows the vast wealth and power of the American financial system, even with its massive debt and other systemic problems, it is the news this week that the dollar is being used to prop up Europe's tottering financial structure at this critical moment.
The world's major central banks today moved to give "cheap, emergency U.S. dollar loans to banks in Europe and elsewhere". New U.S. dollars at low cost is what the Fed is making available.
The Wall Street Journal reports:
"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," said a statement issued Wednesday by six central banks—the Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank."
The need for quick cash is evident since a Bank of Japan official said "The step is meant to buy time for European countries to proceed with their fiscal and economic reform." This does nothing to solve the deep problems in Europe but its does buy some little time. How much is anyone's guess.
But to think that with all our problems here in America, like the failure of the big Congressional "super-committe" last month to come up with any long term solution, that the dollar still flows to the world in amounts to provide a measure of stability and confidence in a storm is amazing. The blessing God gave this nation, descendants of the biblical patriarch Joseph, are phenomenal.
Genesis 49:22 Genesis 49:22Joseph is a fruitful bough, even a fruitful bough by a well; whose branches run over the wall:
American King James Version×says, "Joseph is a fruitful bough, a fruitful bough by a well; his branches run over the wall." Today's Joseph, the United States, still has a lot of "fruit" to spread around the world. The nation has declined relative to other powers and has big problems but its pockets are still deep with resources that keep the world economy moving.
Stratfor says this latest action "demonstrates the true nature of the U.S.-dominated global financial order". Their geopolitical analysis goes on to say "...forceful backing from the United States is a significant geopolitical event in that it reinforces the established global financial and monetary order. The United States provided this type of liquidity to Europe in the past, in order to counter the effects of the U.S. subprime crisis. Now, as countries watch Europe’s crisis grow to threaten the eurozone’s very existence, the United States is ultimately the only economy large enough and with enough political credibility to prop up the global system. This was a given for most of the postwar era, but was seemingly forgotten over the past decade as proponents of the euro touted the currency as a counterbalance to the dollar. But the facade of the euro’s stability has begun eroding, and dollar primacy has begun reasserting itself."
Don't count the United States out just yet. God in His mercy is giving us another round of time to address our moral, ethical and spiritual problems. His words through the prophet Ezekiel ring just as true today. " As I live…I have no pleasure in the death of the wicked, but that the wicked turn from his way and live. Turn, turn from your evil ways! For why should you die, O house of Israel?" (Ezekiel 33:11 Ezekiel 33:11Say to them, As I live, said the Lord GOD, I have no pleasure in the death of the wicked; but that the wicked turn from his way and live: turn you, turn you from your evil ways; for why will you die, O house of Israel?
American King James Version×)
It is not too late for America to "turn" or repent of its sins and seek God. But God's infinite mercy eventually turns to a time of judgment.