A Panoramic Vision of the Harvest - Chad Taylor

I have had this repeated vision over and over the last 22 years since I was saved. I saw impressions of it when I walked across America in 1990 with only a sleeping bag and a "Jesus Saves" sign blazed across my backpack in neon red. I saw the vision while walking the streets of this nation's largest cities long after midnight.


It engraved itself in my consciousness as I preached on the streets of Seattle at the age of 18 with only the homeless and the gutter as my congregation. I have seen the same vision while ministering in the sultry south on the mean streets of Atlanta where racism and religion still prevail. Over and over the past 22 years this panoramic vision of "the harvest" has left its enduring mark on my soul, and finally I am to make it plain. Make it plain so that those that read it can run—run into this field the Bible calls, "The Harvest."

Vision of the Field

I saw a field going on endlessly as far as the eyes could see. It reminded me of the gravity of Abraham's vision in Genesis when God said, "Then He brought him outside and said, "Look now toward Heaven, and count the stars if you are able to number them" (Genesis 15:5). That's how boundless this harvest field was. It stretched on in every direction, until it left you dizzy with the sheer magnitude of it all.

As I continued to look down the endless rows of wheat, I saw as it were a figure far off in the distance, working. The heat waves coming from the hard-packed ground made it difficult to see, so I stepped into the field to look closer. I glanced down at the furrows and rows and I noticed much of the ground was hard-packed and fallow, yet other smaller parts were dark with fertile soil and tilled. Large sections of the field that I could see from my vantage point were unharvested, and the ground showed signs of neglect—fallow, hard and dry.

I continued to walk toward the figure that I had first noticed deep in the field. I heard a peculiar sound as if it were coming from all directions. Like a distant whine or a baby crying? I stopped to listen more closely. I heard it more audibly now as I paused—it was a mournful cry, like someone weeping. As I listened more intently, I heard the Holy Spirit say to me, "It's the cry of the harvest; a forgotten, abandoned harvest—like a baby left discarded from its mother!"

I could clearly hear the mourning and crying from this wide harvest field as if it was crying out to be redeemed, accepted and received. I was shaken and my heart broke as I heard the pitiful cry of the harvest all around me. The words of Job sounded like a crashing cymbal in my spirit, "O earth, do not cover my blood; may my cry never be laid to rest!" (Job 16:18). This harvest of disquieted souls refused to be discounted, and their plaintive cry came before me.

Vision of the River

I continued walking and the cry from the harvest seemed to wane; it appeared that the figure in the field was now even farther away. As I continued to walk down the rows which were mostly dry and cracked, unexpectedly I caught the scent of water. I abruptly turned toward the breeze that carried the smell of fresh water wafting through the air and I began to run toward it. I pushed through row after row of heavy-laden stocks of wheat bent over and bowing low to the ground. I sprung right through one more row, and there it was—the river.

I was taken aback in this series of endless rows of grain and then, abruptly, this gurgling river. Before I could run and leap into the cold water, drinking from its welcoming shore, I looked at what was before me and I was still. In the river and along its sides were hundreds if not thousands of men, women and children jumping, swimming and laughing.

I yelled from where I was near the edge of the harvest field only a few dozen yards away, but they could not hear me. The people were deaf to my cries as if I was not even present. Didn't they see the figure working in the distance all alone? Didn't they hear the despairing cry coming from the very field that was all around them? Didn't they see the massive field that was left unattended and forgotten? Couldn't they see me just a stone's throw away, waving my hands and shouting? Some were even gazing intently into the river as if they were hypnotized by its ebb and tide. It was uncanny.

A Sudden Anguish Swept Over Me at a Revelation of the Immense Labor Left Undone

The river was so intoxicating and appealing, it took a great deal of effort not to be drawn closer by its strong allure and promise of refreshing. I was about to step in closer when the sound of crying and mourning grew louder. The cry of the harvest pierced my heart again and I turned back toward the field. I saw the lonely figure in the now-setting horizon and was determined to forge ahead.

I looked back one more time at the crowds and the river. I was amazed that they were somehow completely unaware of the vast expanse of field that surrounded them on both sides. The persistent cry of the harvest could not reach their ears; either because of the festivities or a mystery that I did not understand. I tried shouting again and pointing toward the figure alone in the field, but no one even glanced at me or heard.

A sudden anguish swept over me at a revelation of the immense labor left undone as the field stretched out for endless miles around me. Solomon, in his equally endless wisdom wrote, "There is an appointed time for everything. And there is a time for every event under Heaven" (Ecclesiastes 3:1). I knew beyond any doubt at this moment it was time to labor. The fields were ready. They were ripe.

I called to mind another Scripture that leapt from the pages of the Bible, "Whoever gathers in the summer is a wise son. Whoever sleeps at harvest time brings shame..." (Proverbs 10:5). Lord, never let me be put to shame!

Vision of the Headstone

I finally turned my back on the river and took in the rich harvest anew before me. Jesus' exhortation to His early disciples in Matthew 9:37-38 was now in striking clarity as I gazed out at the field, "The harvest is plentiful, but the laborers are few. Therefore pray earnestly to the Lord of the harvest to send out laborers into His harvest." I asked myself that very moment, "Lord, did I forget to pray?"

I began to walk doggedly toward the lonely figure, at times stopping because of the heat. Then unexpectedly, I stumbled upon what seemed like a stone or some kind of marker off ahead in the dirt. It looked like a carved stone or rock, apparently there for some inherent purpose. I noticed bouquets of flowers, all kinds of memorabilia and small personal items scattered around. As I drew up closer I knew what it was—a grave marker like in a cemetery, and clearly inscribed on it were the words, "The harvest is past, the summer has ended, and we are not saved" (Jeremiah 8:20).

I was aghast. Below this agonizing inscription I saw specific years of the calendar etched in its stone: 1610, 1689, 1705, 1790, 1830, 1875, 1920, 1945, 1970, 1989, 2000 and so forth. Other dates were recorded below but were worn and illegible. I knew what they were—times and seasons, dates and generations where a great cycle of harvest had come upon the earth and had not been seized; a kairos moment that had come and gone.

One More Date Was Carved in the Headstone: 2020

At the very top of the marker was one more number as if it had just been cut into the stone—2020. I was cognizant in that moment that through the years of 2000 to 2020 was another divine cycle or season for the harvest of souls in the earth. We are in the middle of that cycle now in 2010. 2020 was a divine mile-marker in the world's history and also a great signpost for Heaven as well. I dropped to my knees right there in the field and cried aloud, praying, "Lord, send out laborers! Lord, here am I. Send me!"

Flowers and trinkets adorned the headstone as if generation after generation had paid homage to times past, rather than seizing the moments that they had then. Historic opportunities had come to win the world to Christ but had passed them by. I was melancholy and sad as I watched this memorial stone fade behind me while I continued to walk deeper into the field.

What I saw next was unforgettable: The headstone was now only a memory when out of the heat-waves and swaying wheat I saw an angel and a woman.

Vision of the Angel and the Woman

The woman was dressed in what appeared to be Biblical-era clothing and was gleaning in the field behind what was clearly an angel. Her faded lavender dress was laden with wheat as she filled a large basket beside her. A red sash was around her waist. I knew exactly who it was—Ruth! The Ruth I had been recently reading about and ministering from in the Bible. That vivid illustration in God's Word where Ruth followed the reapers in Boaz's field was right there before me. I remembered the Scripture in Ruth that stated, "And she went, and came, and gleaned in the field after the reapers" (Ruth 2:3).

It was such a sight to see the angel a few yards ahead of her with a scythe cutting the wheat in bushels. They both worked in tandem, reaping the wheat seamlessly in a synchronized motion as if it was rehearsed. I stared in awe at this amazing sight and I knew it was prophetic; a divine message played out in this drama unfolding before me. Then the words of Jesus in Matthew added one more stroke to this masterpiece I was beholding, "The harvest is the end of the world; and the reapers are the angels" (Matthew 13:39).

Ruth is a picture of an end-time Church following the Kingdom of God into the fields of nations, preparing the way of the Lord. A time was now upon us that we would work with the angels of Heaven invisibly in the immense field that lies before this present generation. Heaven and earth would work in unprecedented unison to see it reaped.

I remembered in Jewish tradition that on every Pentecost the book of Ruth is read. On Pentecost in the Upper Room when they were waiting on the promise of the Holy Spirit's power that would take them around the world, the story of Ruth was repeated. As I stood in this vision, I saw it too. We are the Bride that would find her Boaz, her Christ, in the threshing floor of nations. That's where the lovers of God would truly be found. I prayed that He would find me there, too—in the field.

Vision of the Clouds

Abruptly and without warning, a dark cloud came down blackening the air with strange smells and acrid smoke. I was nearly blinded, my eyes watering as this strange cloud descended. It took all of my senses not to give into a sudden feeling of drowsiness; my eyes grew heavy and I could barely walk. I was like a drunken man weaving back and forth in between the rows of wheat, staggering. Voices came from somewhere in the smoke; it sounded strangely like music, and then at other times it was incoherent. I was disoriented and confused, and I desperately tried to find my way out of the cloud.

As this disturbing experience continued, a specific Scripture arrested me, "Watch and pray so that you will not fall into temptation. The spirit is willing, but the flesh is weak." (Matthew 26:41).

I fell to my knees as this terrible smoke swirled around me, and I began to pray loudly, "Lord, here am I, send me! Lord, lead me not into temptation but deliver me from evil!" As I continued praying, a breeze which transformed into a gust of wind began to blow and the cloud retreated. I knew this wind was the "Ruach HaKodesh" or the Spirit of God. This was the same wind that brought the dead bones to life in Ezekiel and the same wind that blew through the Upper Room and sent them outward to the uttermost parts of the world. It was that same Spirit which was clearing the dark smoke from the air, now giving me a clear vision of the harvest field again and the lone figure in the distance. I had my senses back.

As I looked out again at the endless rows of wheat, I saw similar dark little clouds appearing, swirling. These clouds were distractions and mirages that caused many to withdraw or to simply freeze and do nothing. I recalled another Scripture as I stood where the cloud had once been only seconds ago, and I prayed it out loud, "(God) hath delivered us from the power of darkness, and hath translated us into the Kingdom of His dear Son!" (Colossians 1:13).

Vision of the Saints

I continued to walk now with more resolve and I began to see large patches of field already reaped in sheaves. Every hundred yards or so I would come upon another swathe of harvest that was thoroughly cut down and laying in perfect piles of sheaves bound tightly in bundles. I marveled at the harvested portions of field and wondered out loud who could have done it. I looked more closely and I saw memorial markers or capstones near the middle of these cleared out areas. I walked up to one in particular in a very large and wide harvested area, and it read simply, "Corrie Ten Boom."

I walked on further and I read another capstone in a cleared area nearby, and it read, "William and Catherine Booth." Each area of field had a small memorial to the Christian that had harvested so diligently in it. Most of the names I had never heard of before. Others I had only heard or read before in books and memoirs such as, "Jim Elliot," "Hudson Taylor," and "D.L. Moody."

I continued to walk, observing each harvested area, and finally I stopped to pray in another clearing. I prayed out loud, "Lord, let there be a small memory of my work on this earth as well. Whether it is to be read by others or not, let my short life mean something even as these others before me have." I remembered the prayer of David and I said it out loud: "Lord, remind me how brief my time on earth will be. Remind me that my days are numbered—how fleeting my life is." (Psalm 39:4)

Vision of the Lonely Christ

I stubbornly left this last patch of harvested wheat, not wanting to depart, somehow thinking that one of these great harvesters would step out of the field to meet me. No one did. I was once again drawn to the lonely sentinel that worked in the field ahead. As I focused on the personage again, it didn't seem as far as it was before. I could now make out the face and appearance. It was Jesus. He was sweating and dirty, working vigorously and tirelessly. He looked up at me and wiped the sweat from His brow, and said, "So, pray earnestly to the Lord of the harvest to send out laborers into His harvest."

He had such a sad look on His face, yet I knew He was happy to see me. I had pressed on and not been deterred even by the glorious things I had glimpsed—the river, the saints before me, the angels and the woman that harvested. I had pressed into the field even beyond the frightening cloud that had tried to stop me. He spoke again, "Awake you that sleep, and arise from the dead, and Christ shall give you light" (Ephesians 5:14). I was awake.

I knew this was a prophetic panorama of the great harvest of humanity that Jesus had spoken of in the Bible. It was also a stark revelation of the utter lack of laborers despite over 2,000 years of enterprise. Now after all that I had seen in this vision, nothing could compare to the lonely anguished look on Jesus' face as He invited me into "the fellowship of His suffering." I remembered in the garden of Gethsemane He had asked His disciples to pray with Him in that, His darkest hour. Now, He is not only requesting us to pray with Him but to work with Him in the harvest fields of the world—the colossal expanse of human life where the more than half of earth's populations has never even heard of or extolled the name of Jesus Christ.

As this vision was ending, Jesus stopped toiling for a moment and looked back at me with a look of kindness. He handed me His threshing instrument and said almost in a whisper, "Ask of Me, and I shall give you the heathen for your inheritance, and the uttermost parts of the earth for your possession" (Psalm 2:8).

I bowed down greatly.

Chad Taylor

Consuming Fire Ministries

Prepared for the Times, Part 31 - Rick Joyner

It now appears that more than half of the people in America are at least beginning to believe that there is an intentional dismantling of America’s strength and the basic pillars of our Republic. This includes an increasing number from the President’s own party. Just as recent tapes from Osama bin Laden have indicated that they were surprised by the response of America to the attacks on the World Trade Center and Pentagon on 911, it also seems that many in the Obama Administration have been surprised by the way Americans have arisen to counter its agenda. The pushback has indeed been very strong and growing in strength. Virtually every election has been a rejection of the Administration and of Obama personally. However, the way that the Healthcare Reform Bill was rammed down the throats of Americans who were so overwhelmingly against it seemed to indicate that there was confidence on the part of the Administration that the will of the American people did not matter, which is deeply alarming. To many it seemed as if they did not feel that they would be subject to voters much longer.


Even so, with elections coming up, much can be accomplished. Of course, the best of all scenarios would be for the President to have an awakening and to stand up boldly, declaring that much of his agenda has been wrong. We should not give up on this, pray for him daily, as well as for his Administration. Because ultimate and basic issues are at the very foundation of the Republic and are coming to a head, we need to pray for peace and that they will be resolved peacefully.

A prophetic scenario I saw and have shared often over the last two decades was a move in America to the extreme left, followed by an even more drastic move to the extreme right in overreaction. This, too, would be a disaster. We should be concerned about the extremes in either direction, as either one could result in tyranny. When we are shown such prophetic scenarios it is to reveal where we are headed so that we can change where we are headed. This does not have to be the conclusion for America, but it is where we are headed if we do not change our direction.

For this to happen, Christians must wake up to what is happening, resolve that they are going to face it, be engaged as the salt and light they are called to be, and resolve to follow the Lamb, not the donkey or the elephant. The Lamb is also “The Truth.” Seek truth and resolve to stand on the truth at any cost. There has never been a time when such courage was needed more.

Even though we can only superficially address the issues in this format, there is another spiritual factor that is having great impact on the times. This is our national relationship to Israel. Is it a coincidence that the day after the Israeli Prime Minister was so humiliated at the White House, that the Deep Water Horizon exploded and an oil leak began that has no end in sight, and could be more devastating to the U.S. than any previous natural disaster? Is there a link between the U.S. pressuring Israel to give up Gaza, and immediately we are struck by Hurricane Katrina that devastated seemingly exactly the same amount of territory as Gaza? We can go back to other such links, which have been well-documented and even made into books, but what is the message, if there is such a link?

In Romans Chapters 9–11, at the very centerpiece of Paul’s greatest theological discourse, he brings up the place of the Jewish people, calling them “the natural branches.” At the end of this great discourse, the great apostle gave us a sober warning: “do not become arrogant” toward the natural branches. The consequence of becoming “arrogant” toward them is to be cut off ourselves.

This certainly does not mean that we must agree with everything Israel does, but there are certain definite consequences of disagreeing with arrogance. Every Administration that has crossed that line since Israel became a nation which has paid a terrible price for it. Israel is a divine barometer and a timepiece that God jealously watches over. He even called Israel “the apple of His eye” (see Deuteronomy 32:10), indicating that to touch Israel was like poking Him in the eye. That is supreme arrogance, and since it was such pride that caused the fall of Satan and virtually every fall since, how we deal with Israel does reflect our reverence to God and His purposes.

Again, I am not at all saying that Israel is doing everything right, but the propaganda put out virtually worldwide about Israel is so skewed, distorted, and one-sided that it virtually reflects the world’s true attitude toward God also. How does this work?

In Israel’s history, we see a repeated trend that whenever she fell into apostasy, the Lord allowed the heathen nations around her to invade or otherwise oppress her until she awoke, repented of her apostasy, and returned to worship the Lord. Then the Lord would smite the nations that He had allowed to be used in this way for their “arrogance,” which was demonstrated by their touching His people. As Paul also explained in his letter to the Romans, Israel will be grafted back in, and “all Israel will be saved” (see Romans 11:26). Israel is becoming increasingly isolated, and now even seems to be cut off from her most trusted friend, the United States. Having no one left but God, she will turn to the Lord. However, the consequences of our having touched Israel with such arrogance will be terrible if we do not repent quickly.

The oil spill is, believe it or not, grace from God to give us time to repent before even worse things come upon us in the form of natural disasters. The incompetence of the government to deal with the oil spill is illuminating just how helpless we are in the face of the problems of the times, and how badly we need the grace of God, not His displeasure.

Divine Wisdom Needed Amidst Great Storms - James Goll

2010: The Beginning of the Perfect Storm


At the beginning of 2010, my first of the year message was on "Responding to Storms." I have addressed this theme in my weekly email communications earlier in the year, but I felt led to bring this to your attention once again. When I gave this message, I knew I was speaking to my very city, prophetically, as well as wisdom needed for our nation and the nations. I shared on this theme everywhere I went for the entire month of January.

Several established prophets are declaring that the "Perfect Storm" is coming or even upon us. Locally, the historic 1,000-year flood hit Nashville in May. We have watched the Greece economic meltdown; we are still in the midst of the Gulf Oil Spill catastrophe; the Iraq and Afghanistan wars still go on with no real resolution in sight; and turmoil is mounting in many nations.

In 1987, the Lord showed me part of what would take place in the year 2010, and I remember it all so well. The Holy Spirit spoke to me in the night seasons that the world would begin to unravel in 2010, and it would be a hinge in world history where things would never return to what we have considered normal. In 1987 the Holy Spirit showed me that 2010 would be the beginning of the TIME OF GREAT STORMS. It is upon us!

A Worldwide Shaking and Awakening

I believe it is the best of times and for those without faith—it is the worst of times. The glory and the shaking come together. It is true on both sides of the coin. We are crossing the threshold into the Third Great Awakening and yet we are crossing the threshold into a great Worldwide Shaking.

This last weekend, when I ministered in the Baltimore, MD area, they had one of the largest recorded earthquakes in over 35 years in the area, registering at a 3.6 magnitude. The foundations of the earth are groaning in this hour! But God's people must arise and His Spirit must be poured out! It is time for the Body of Christ to move past our petty spirit of political correctness (incorrectness actually) and cleanse ourselves from this influence. We must be salt and light.

We know that storms are coming, but what we need are the wisdom solutions on how to respond to these perilous storms.

"Tell My People to Seek Me for Divine Wisdom"

Recently, I shared with you that the Holy Spirit gave me a dream where I heard the following, "The world is coming to the end of her wisdom. You are crossing a threshold where the world will not have the answers to life's dilemmas. Tell My people to seek Me for divine wisdom. Seek Me for wisdom that goes beyond natural reasoning—for the wisdom which comes down from above."

Yes, I have searched the Scriptures, I have written on these themes in my books and e-mail communications over the years, but I am being stirred once again as a watchmen on the walls! It is time to wake up and take our place as guardian intercessors! Blow a trumpet in Zion! Sound an alarm on His Holy Mountain!

I have found that throughout Scripture the primary response needed is not one of self-justification—but it is the CRY FOR MERCY!

Crisis Intervention

The following is taken from a section of my outline on Crisis Intervention in my study guide Revival Breakthrough:

Times of shaking are coming. His plumb line is being dropped, the canon/plumb line of His Word, and of His character being dropped in the midst of the Church, the nation and the nations, resulting in chiropractic adjustments to achieve His purposes. As this occurs we are seeing storms coming.

1. Storms of God's Judgment—Our Response: A cry for mercy requiring brokenness and tenaciousness.

2. Storms of Dark Demonic Attack—Our Response: An authoritative place of intercession, requiring faith, endurance, boldness, believing in the promises and no common ground with the enemy.

3. Storms of Consequences of Sins—Our Response: Repentance requiring humility, lack of defensiveness.

Each storm requires a different Biblical response, but in one way each storm requires the same response—Desperation and Intercession. Ultimately every storm can redemptively be used for God's purposes and to forge character in us. James 2:13 states: "Mercy triumphs over judgment."

Let us pray into the storms of life and lift up a CRY FOR WISDOM AND MERCY IN THE MIDST OF EVERY STORM. I tell you, we have crossed the threshold into the DAYS OF GREAT STORMS and the DAYS OF GREAT VISITATION!

Let us be salt and light! Call on His name! Let us be ambassadors of hope for such a time as this!

With an urgency!

James W. Goll

An Urgent Call for Massive Intercession - Cindy Jacobs

Dear Believers in Christ,

A few days ago as I watched a news business channel, I received the following word from the Lord. As you can tell, it's a serious warning. I know the nation is in a delicate condition now, but I believe that I need to send this word out. I ran it by Chuck Pierce and he said that it fits with what he has been hearing, only more specific on the economic side.

This is a wake up and it's so strong.

A Serious Warning and a Call for Urgent Prayer
A warning received from the Lord on July 17, 2010 in Dallas, Texas:

A few days ago as I watched the financial news, the Lord clearly spoke these words to me, "The nation is teetering!" I then had a vision of the economy of the United States, on what looked like a "scale of justice." He then went on to show me that we must fast, pray and cry out to the Lord for mercy and solutions that will balance righteousness and justice.

In praying to the Lord for wisdom about this word, I realized what must be done—it is time for the Church in America to stand up and take her place once again in the nation. I mulled over the fact that we have already lost so many of our liberties and this is what I heard, "If the Church doesn't fast and pray for a faster acceleration of revival and awakening, the iniquitous sin structures in the nation will tip the scale that is teetering and there will be another great depression."

Of course, this word shook me to the core of my being. Many of you may be aware that the Holy Spirit spoke to me almost a year before the September 2008 economic melt down, that there would be "no more business as usual."

The balance of the economy is fragile and depending on the way we fast, pray, and how we cast our votes in the next election will depend on which way the scale tips. We must pray and do. We must pray and act. We must awaken the Church to the state of the nation without fear of pleasing man or fear for our reputation.

God is watching to see which way the die will be cast. If we shift the nation to Biblical values in the arenas of righteousness and justice, the economy will follow. If we continue in our stance of support for Israel, the Stock Market will stabilize and prosper, and that which is fragile will become strong. Supernatural solutions will be sent from Heaven that our natural minds could never reason, nor grasp and they will heal the land.

If we do not heed in this hour there will be a tumbling of our economy and dark days will be ahead to such a degree that our nation will possibly never fully recover from and have the greatness as a nation that God has favored us with for generations.

God have mercy. God send an awakening. God send salvation.

Cindy Jacobs
Generals International

World at Risk of Folding in on Itself - Patrick Allen, CNBC

The global economy is at risk of folding in on itself unless policy makers face up to the threats of inflation inflexibility and exchange-rate inflexibility, according to Arun Motianey, director of fixed income strategy at Roubini Global Economics.


A Japan-like outcome is a big risk for the developed world with deflation a big danger, he said.

Recent figures show that the recovery is sputtering in the US while China's booming growth has slowed down slightly, as Beijing unwinds stimulus measures.

The Bank of Japan revised upwards is economic forecast but reiterated it will maintain its easy money policy.

In his new book "SuperCycles" Motianey says the world has managed to recover from a number of shocks since the Latin American debt crisis, but getting over the financial crisis will be much harder.

"The global rebalancing mechanism through flexible exchange rates is not working as well as it should," Motianey said.

"Many emerging markets are resisting changes in nominal exchange rates. Higher inflation is causing some correction in real terms but it is too little and may turn out to be too late," he added.

China is the key to correcting this problem, according to Motianey. He warned that the challenges facing the developed world look even more problematic.

"Financial markets have become intolerant about governments acting as a source of final demand in the developed market," he said. "We are seeing this most dramatically in the European sovereign debt crisis that is now mutating into a European bank crisis."

With both these factors hitting growth, the threat of the world economy folding in on itself is now ever-present, Motianey said.

"If we slide into deflation - the likely fate of the developed market - a Japan-style outcome will become inevitable," he said.

"In Japan, the BoJ has lost the ability to create inflation and is condemned to deflation. Central banks may now need to talk about the necessity of inflation...before it is too late."

Obama's Debt Commission Warns of Fiscal 'Cancer'

By Dan Balz

Washington Post Staff Writer

Monday, July 12, 2010


BOSTON -- The co-chairmen of President Obama's debt and deficit commission offered an ominous assessment of the nation's fiscal future here Sunday, calling current budgetary trends a cancer "that will destroy the country from within" unless checked by tough action in Washington.

The two leaders -- former Republican senator Alan Simpson of Wyoming and Erskine Bowles, White House chief of staff under President Bill Clinton -- sought to build support for the work of the commission, whose recommendations due later this year are likely to spark a fierce debate in Congress.

"There are many who hope we fail," Simpson said at the closing session of the National Governors Association annual meeting. He called the 18-member commission "good people with deep, deep differences" who know the odds of success "are rather harrowing."


Bowles said that unlike the current economic crisis, which was largely unforeseen before it hit in fall 2008, the coming fiscal calamity is staring the country in the face. "This one is as clear as a bell," he said. "This debt is like a cancer."

The commission leaders said that, at present, federal revenue is fully consumed by three programs: Social Security, Medicare and Medicaid. "The rest of the federal government, including fighting two wars, homeland security, education, art, culture, you name it, veterans -- the whole rest of the discretionary budget is being financed by China and other countries," Simpson said.

"We can't grow our way out of this," Bowles said. "We could have decades of double-digit growth and not grow our way out of this enormous debt problem. We can't tax our way out. . . . The reality is we've got to do exactly what you all do every day as governors. We've got to cut spending or increase revenues or do some combination of that."

Bowles pointed to steps taken recently by the new coalition government in Britain, which also faces an acute budgetary problem, as a guide to what the commission might use in its recommendations. That would mean about three-quarters of the deficit reduction would be accomplished through spending cuts, and the remainder with additional revenue.

Most Republicans in Congress are opposed to any tax increases, which has made the work of the commission far more difficult. Bowles and Simpson appealed for support to the governors, who have been forced by their states' constitutions to balance their budgets with deep spending cuts and, in many cases, tax increases.

Bowles and Simpson said the commission would have had a stronger hand politically had it been created by Congress, rather than through an executive order. Simpson was pointed in his criticism of seven Republicans who once co-sponsored such a measure but who helped block it in the Senate.

"As far as I can discern, it was to stick it to the president," Simpson said. "That's where we are in Washington." He later added that all seven "have now come to us to say, 'We're ready to help.' "

The presentation by Simpson and Bowles, which included repeated statements of determination to produce a bipartisan set of recommendations, drew praise from the governors.

"I don't know that I've every heard a gloomier picture painted that created more hope for me," said Arkansas Gov. Mike Beebe (D).

Washington Gov. Chris Gregoire (D) said that many governors fear that the commission's recommendations will result in more demands on the states.

Bowles, who noted that the 1997 balanced-budget agreement between the Clinton White House and the Republican-controlled Congress included many provisions that put more burdens on the states, said that wasn't likely.

"I don't think you're going to see a lot of devolution coming from us because the states are all broke," he said.

Simpson also warned that the November elections could add another wild card to the work of the commission. "I have no idea what's going to happen on Election Day but it's going to be disruptive . . .," he said. "It's going to be a big wake-up call around the whole United States. I have no idea where it's going, but thank heaven we have a month then to work through the wreckage."

The Gulf Oil Crisis - Paul Keith Davis

Contend for a Greater Measure of Prophetic Understanding


Obviously, the question most often asked in recent days concerns our prophetic perspective of the calamities associated with the oil spill. This is something that we are very personally and intimately involved in as it is occurring right outside our home. Clearly, I have spent countless hours praying over the subject both as a defense mechanism for our region and prophetic understanding of its implications.

In the process, I personally felt it was imperative to not take a hindsight position and prophesy after the fact with various impressions or opinions. That posture has a place of value to spearhead intercession and mobilization of resources; even so, I have felt a greater need for a more sure word of prophecy that bears the insignia of Heaven and provides valid direction and insight to mobilize God's people.

The Biblical pattern has always been that prophets foretold key events with direction and insight attached to it. When the event occurred as prophesied, a greater measure of faith could be attached to the message associated with it. Exodus 4 outlines the model for ministry in the life of Moses; spiritual signs were given with a voice or message. It is the message that is of paramount importance.

And it shall come to pass, if they will not believe thee, neither hearken to the voice of the first sign, that they will believe the voice of the latter sign.—Exodus 4:8

According to Amos 3:7, the Lord will do nothing unless He first reveals His secret counsel to the servants the prophets. Furthermore, Jeremiah articulated God's perspective in Jeremiah 28:9 saying:

"The prophet who prophesies of peace, when the word of the prophet comes to pass, then that prophet will be known as one whom the LORD has truly sent."

It is imperative that we now contend for a greater measure of prophetic understanding and foretell events before they occur with the corresponding heavenly message. With that said, I felt it essential to only prophesy of what we may have seen before the event. In December 2006 I had a prophetic experience that I now believe has direct application.


Prophetic Experience of a "Manhole"

Further below I will share a transcript of the full message as I preached it in 2008. However, there are two quick points I would like to highlight. In this experience I saw what appeared as a "manhole" being lifted from the bowels of the earth. In various times of sharing this message throughout the last three years I have used the expression "manhole" as the best description of the image I saw being opened over the "bowels of the earth" or the "bowels of Hell." (I used both expressions in various accounts of sharing the experience.)

When I finally began to understand the implications of this experience with the oil spill, the Lord reminded me that this is a "man-made hole" that has opened the bowels of the earth to this deep reservoir of oil. The footage shown on news networks of the oil billowing up into the Gulf are almost identical to the images I saw as the manhole was lifted and clouds of evil began to pour out. In my experience the lid or manhole looked like this image featured here.

As a further confirmation, there was an article published in Petroleum World magazine entitled, "The Well from Hell." In the article the author made this statement:

According to the New York Times, BP's internal "documents show that in March, after several weeks of problems on the rig, BP was struggling with a loss of 'well control.' And as far back as 11 months ago, it was concerned about the well casing and the blowout preventer." The problem is that this methane, located deep in the bowels of the earth, is under tremendous pressure...

This article utilized some of the exact language that I used while describing my experience. Furthermore, while in Connecticut in early June we were discussing the oil situation and one of our hosts commented that he had listened to me share my prophetic experience concerning the lid being lifted over the bowels of the earth. He reminded me that I saw spirits ascending that had the appearance of Hitler and other tyrants of the past. He pointed out that Hitler was born on April 20 and this event started on April 20. Just in recent days we have seen an escalation in anti-Israel sentiment that is demonically inspired.

This seemed to be a further affirmation of the application of the experience. The Bible predicted that during the last days darkness would cover the Earth and deep darkness the people; but also marked the exact time that God's people would "arise and shine for our light has come" (see Isaiah 60:1-5.)



The Oil Spill


From my perspective, I feel this is not an act of God but the foolishness and greed of mankind that the enemy has influenced and fueled as the "devourer." Even so, God will use this as a signpost that we have crossed a line of demarcation in end-of-the-age events.

The good news is, I heard a Voice say in my 2006 experience that great hosts of Heaven will be dispatched to work with Christians to prepare and equip them to walk in realms of glory to facilitate the harvest and become the mature sons of the Kingdom. That is our hope and the object of our prayerful focus and determination.

When evil abounds, grace will much more abound. This is not a time for fear but faith-filled decrees and proclamations in agreement with God to activate His people to meet the challenges of this age and overcome the enemy's attempt to hinder and impede the harvest.

The following is a written transcript of a message preached in 2008 in which I share this experience.



Encounter of Lid Being Lifted From Bowels of Hell


December 2006 I had a revelatory encounter that I have shared in various places of travel. But the Lord is beginning to give us the next installment of understanding it. I was very restless one evening and couldn't sleep. I prayed for a while and finally went to bed.

The moment my head hit the pillow, I went into a revelatory experience. I saw, as it were, a lid that looked like a manhole being lifted from the bowels of Hell. The unique thing about this experience was that as I was experiencing it, I was also articulating audibly what I was seeing. Wanda was able to listen as I spoke what I saw. I watched as these spirits came pouring up out of Hell, and I even recognized the appearance of some of them.

I saw spirits that had a resemblance to Hitler and Stalin, and other tyrants of the past; I knew we had crossed some form of timeline in the plan of Heaven, and that this end-time darkness had been released on the earth.

I watched as these spirits were coming out of Hell and literally manifesting themselves in the bedrooms of people. And I watched as these spirits were teaching individuals how to walk in realms of evil and darkness.

When it seemed I couldn't watch anymore, I heard a Voice come booming out of Heaven. And the Voice said, "The sons of light must respond in like manner." I watched as angels were coming out of Heaven and were manifesting themselves in the bedrooms of individuals and speaking to them and training them to walk in Heavenly realms never before so freely accessed by a generation of people.

And the good news of this message and what the Lord is doing now is revealing to a certain degree the nature of these angels being dispatched from the Throne room. Interestingly I had this experience on a Friday afternoon, and I went through the weekend contemplating it. On Monday morning the Holy Spirit told me to write the experience down and e-mail it to Neville Johnson.

It turned out that very day he had exactly the same experience. He even saw the identifications of the same spirits of darkness being released by name. He shared his experience with friends that morning and received my email 12 hours later outlining the exact same experience..."Out of the mouth of two or three witnesses, let the Word be established."

If you'll remember in the experience that Neville and I shared together, there would be angels coming out of Heaven to meet with saints to prepare them for this calling. Now we are discovering these are not just going to be ordinary angels. These are angels of a very extraordinary nature coming from standing in the presence of Almighty God. Isaiah 63:9 declares:

"In all their affliction He was afflicted, and the angel of His presence saved them; in His love and in His mercy He redeemed them, and He lifted them and carried them all the days of old."

The Angel of His Presence saved them! We're finding out that this could have been more accurately translated in the original language, "Messenger of His Face." The word used here for "angel" is most often translated "messenger." The word for "Presence" is most often translated "face." The Lord sent the Messenger of His Face to save them.

So what I'm prophesying to you this evening is, "That messengers of His face are coming from Heaven to empower us to become messengers of His face."

It says in some rabbinical writings that the "Angels of His Presence" are high level angels, also known as the "Angels of His face." According to the Book of Jubilees, "Angels of His Presence" are angels of sanctification and are among the highest order of angels. According to rabbinical tradition, the "Angels of His Presence" are the carriers of His Glory.

There was an incredible promise given to the patriarch Jacob. He had one of the most fantastic experiences ever given to a human being. There was something that distinguished him from his brother Esau; I submit to you it was his un-denying desire, even though his methods were poor, to be blessed with a very specific and unique blessing. A very specific and unique blessing is what he was contending for.

If you'll remember, Abraham had been given a promise that he would have a son through Sarah. However, the promise seemed impossible since the Bible says his body was as good as dead. Then, the Lord appeared to him for the first time in human history as El Shaddai.

I was in Dallas, Texas, several years ago, preaching on the ministry and anointing of El Shaddai. I had shared that El Shaddai was the "All Sufficient-One, the many-breasted One," like I had read in dictionaries. There happened to be a professor of Hebrew in the meeting. He came to me after the meeting and said, "Can I help you a little bit?"

He said, "What you shared about El Shaddai is not inaccurate, it's just incomplete." He said, "The truest definition of El Shaddai is, 'I am the God of utter ruin and devastation and I am here to do for you what you cannot do for yourself.'"

Abraham was not able to fulfill the promise now in his own strength. God did for him what he could not do for himself. That's called the El Shaddai blessing. Can I submit to you what Israel needs in this very hour is the El Shaddai blessing? Can I equally submit to you that the Bride of Christ needs the El Shaddai blessing?

That blessing was then transferred and imparted from Abraham to Isaac. Isaac received the blessing given to Abraham; to be fruitful and multiply and occupy the land of his sojourning. That was the blessing that Jacob had to have, even if he were to become a "supplanter" to get it.

When the time came, Isaac laid his hands upon Jacob and blessed him with the El Shaddai blessing. He said, "May God Almighty, or El Shaddai, bless you to make you fruitful and multiply, and occupy the land of your sojourning."

That very day that blessing opened the Heavens over Jacob. With that blessing, Jacob traveled one day's journey. When evening came, he laid his head upon a rock and saw the Heavens opened and angels ascending and descending. We need the El Shaddai blessing to open the Heavens for us as it did for Jacob.

We need the El Shaddai blessing tonight to open the Heavens and release the "Angels of His Presence." The Bible tells us over in Genesis 48:3, when Jacob is recounting this experience to his son Joseph, he said it was El Shaddai that appeared at the head of that ladder when the blessing was given to him. In Genesis 28:13-14 he said:

"Behold, the Lord stood above it and said, 'I am the Lord, the God of your father Abraham and the God of Isaac; the land on which you lie, I will give it to you and to your descendants. Your descendants will also be like the dust of the earth, and you will spread out to the west and to the east and to the north and to the south; and in you and in your descendants shall all the families of the earth be blessed.'"

When Jacob awoke from the experience he said, "This is none other than the House of God and the very gate of Heaven."

Later on, we then find his descendants, the children of Israel, in Egyptian bondage, but they had a promise of deliverance. There was a very specific and unique anointing that was released to them to bring them into this promise that was given to Jacob.

The Bible records in Exodus 23: "Behold, I am going to send an angel before you to guard you along the way and to bring you into the place which I have prepared. Be on your guard before him and obey his voice; do not be rebellious toward him, for he will not pardon your transgression, since My name is in him. But if you truly obey his voice and do all that I say, then I will be an enemy to your enemies and an adversary to your adversaries... But you shall serve the Lord your God, and He will bless your bread and your water; and I will remove sickness from your midst."

That was no ordinary angel; it was the Angel of His Presence. That was the Pillar of Fire in the burning bush; that was the Pillar of Fire that met Paul on the road to Damascus; that was the Pillar of Fire that we saw revealed before thousands one generation ago to reveal the secrets of the hearts.

The Lord manifests Himself as the Angel of His Presence, but He has in His jurisdiction angels of His presence or messengers of His face. Remember what Gabriel said when he appeared to a little 15-year-old Jewish girl? "I am Gabriel, and I stand in the Presence of Almighty God."

The greatest revival that the modern Church era has ever seen was commissioned in a very unique way. A little, free-will Baptist minister withdrew into a cabin deep into the woods of Indiana. He was having supernatural experiences for which he had no grid of understanding. He had told his wife that day, "I'm going into my cabin to pray, and if God does not meet with me, you'll never see my face again." He said, "I'll die in that cabin before I leave it, without the Lord coming to talk to me."

Three o'clock in the morning, after having prayed and wept until his eyes were practically shut, he sat on a chair with no more prayer left in him. Three o'clock in the morning, deep in the woods, no electricity, no running water, no wife to hold on to if he got scared, when suddenly a ball of Fire came into the cabin. And if that weren't enough to scare you, a man came walking into the room and stood under the ball of Fire.

The Angel said, "Fear not, for I am sent from the Presence of Almighty God." Can I submit to you tonight that we need to hear an angel come and say, "I am sent from the Presence of Almighty God"?

The man was released into a commissioning. The Angel said, "Your peculiar life and your misunderstood ways are to indicate that you're to carry the ministry of healing to the nations of the earth. You'll pray for kings and princes and monarchs."

He said, "How can that be? I'm an uneducated man, and a poor man, and I live among poor people." The angel said, "As Moses was given two signs to validate his ministry, so will you."

That was on May 7, 1946. By 1948, the entire world was in revival. Millions of people came into the Kingdom. Millions of people were healed supernaturally by the power of God.

Never before has any generation been more desperate than ours to see a demonstration of the power of God. But we're discovering there is something greater than that: that is, to encounter the God of Power.

Right now all over the nation there are people that are following signs and wonders. But I submit to you, there will be a company of people emerging today and signs and wonders are going to follow them!

And the secret that is going to release us into that mandate is when the Messengers of His face come who are the carriers of the Glory of God.

The prophet Moses stood face-to-face before the Lord Jesus, under a covenant sealed with the blood of bulls and goats. I had an experience where I saw the Apostle Paul sticking his bony apostolic finger right in my chest. He said, "Moses had to veil his face because of the residual glory under a covenant sealed with the blood of bulls and goats." He said, "You have the covenant sealed with the ''Blood of Jesus Christ, what's your problem?" This is his admonition from 2 Corinthians 3.

In other words, he wasn't saying that we should timidly say, "Can I come into Your Presence?" He was admonishing us to prepare ourselves and come boldly before the Throne of grace and meet with the Lord face-to-face. We can't do that flippantly...there is Throne room protocol; but the grace to live in that place was purchased at the Cross and it is attainable.

Zechariah 6:1-5 declares: "Now I lifted up my eyes again and looked, and behold, four chariots were coming forth from between the two mountains; and the mountains were bronze mountains. With the first chariot were red horses, with the second chariot black horses, with the third chariot white horses, and with the fourth chariot strong dappled horses. Then I spoke and said to the angel who was speaking with me, 'What are these, my lord?' The angel replied to me, 'These are the four spirits of Heaven, going forth after standing before the Lord of all the earth...'"

I submit to you there is a host of Heaven that has been reserved for this end-time confrontation that go forth after standing before the Lord of all the earth; the very same ones that will bring the Bride of Christ into her end-time mandate will be the very same ones that cover and protect Israel.

You and I are called to be messengers of His face; we have a calling to see the Lord face-to-face. Jacob had an experience with God. He saw the Lord face-to-face and lived to tell about it. Moses saw the Lord face-to-face and carried the Glory of God. There is about to be a release from Heaven that is to begin to cause you and I to be illuminated, and we're going to shine with the Glory of God.

Daniel said we're going to shine as the brightness of the expanse of Heaven, and we're going to lead many to righteousness. The Lord Jesus said, "The Son of man is going to send forth His angels that gather out of His Kingdom all stumbling blocks and everything offensive; then the righteous shall shine like the sun in the Kingdom of our Father."

We have an invitation to "come up here." I believe the El Shaddai blessing is going to be released upon us to open the Heavens like it did for Jacob. The Lord is going to do for us what we can't do for ourselves. Then He gets all the Glory. No flesh is going to glory in His Presence.


Angels of His Presence;
Messengers of His Face

I believe they just came in. Something just shifted in the room a moment ago. I'm contending for this to take place now. Wouldn't it be incredible if we could leave Israel carrying with us messengers of His face? Wouldn't it be incredible if the Angel of His Presence descended to protect the borders of Israel?

He will cover them and He will protect them. I submit to you that the enemy is trying to escalate things before their time. Several years ago I heard the Lord say that the Prince of Persia is once again trying to withstand the birthing of God's purposes. And the way he was trying to do that was to facilitate things that are legitimately going to happen, but he is trying to initiate them before its timing.

It says in Zechariah 14:1-3, "Behold, a day is coming for the Lord when the spoil taken from you will be divided among you. For I will gather all the nations against Jerusalem to battle, and the city will be captured, the houses plundered, the women ravished and half of the city exiled, but the rest of the people will not be cut off from the city."

But it doesn't stop there. "Then the Lord will go forth and fight against those nations, as when He fights on a day of battle. In that day His feet will stand on the Mount of Olives, which is in front of Jerusalem on the east; and the Mount of Olives will be split..."

My point in all this is all about Jerusalem. It says on some level that there will be a splitting of Jerusalem. It says it here in Zechariah. But not right now! I'm not sure what it's going to look like when this prophecy is fulfilled, but I know when it happens, the Lord Jesus is coming down to set His foot upon this mountain.

And you see, the battle is taking place in the Heavens right now, as the enemy is trying to make these things happen before the right timing. He's been trying to bring you and I into a battle before we are ready for the battle. But I'm telling you, angels are coming to visit with people to facilitate the preparation. He can do for us in a day what we think will take a year. The messengers of His face are the carriers of His glory.

—End of the Transcribed Message from 2008



Conclusion

I feel confident the circumstances surrounding the oil spill highlight spiritual parallels marking the release of great darkness in our nation and around the world. Correspondingly, the prayers of the saints in agreement with God will facilitate the release of Heaven's host to work closely with the Last Day Church to:

1. Fulfill Biblical End-Time Admonitions

2. Prepare for the Harvest

3. Activate the Bride/Sons of the Kingdom

4. Function in our Role as Priests/Kings

5. Stand in the Gap for Israel in a Greater Way

All spiritual seeds are coming to maturity simultaneously, just as the Bible predicted. I see these events as a signpost in the natural to emulate spiritual realities primarily targeted against Israel and the Church. The ultimate objective is to hinder our ability to achieve our mandate and influence our generation socially, economically, spiritually and culturally.

It is my prayer that God will take what the enemy intends for evil and utilize it for good by opening doors of opportunity for Christian ingenuity and words from God to help resolve this overwhelming situation involving the oil spill.

On a personal note, I believe the enemy is attempting to utilize these events to circumvent the promised outpouring for our region. We must look at it as a personal assault on our inheritance and begin to take a stand as the mighty men of valor described in the Bible. I've always admired the story of Shammah in 2 Samuel 23:11-12 saying:

Now after him was Shammah the son of Agee a Hararite. And the Philistines were gathered into a troop where there was a plot of ground full of lentils, and the people fled from the Philistines. But he took his stand in the midst of the plot, defended it and struck the Philistines; and the LORD brought about a great victory.

At the time of harvest the enemy routinely rushed in like a flood to steal the inheritance of God's people. The lentils could represent all things brought to the place of harvest promised during the latter days. Shammah is a representation of God's Army, filled with courage and valor imparted through God's lion-like nature, who refuses to run even when faced with overwhelming odds. That noble act will strike God's heart and He will give a great victory to His remnant. That is what I am believing for!

Paul Keith Davis
WhiteDove Ministries

Why The Greater Depression Still Lies Ahead - Michael Pento (Forbes)

Obama, Bernanke pile on debt when de-leveraging is needed.


If policymakers do not understand the real cause of a problem, they will in all likelihood be unable to provide a genuine solution.


Barack Obama, Benjamin Bernanke and Timothy Geithner do not understand the real cause of this debt crisis. They are politicians first and economists or students of the market second--if at all. Therefore, it is not wise to count on them to tell us when the Great Recession is over, or to provide a plan to prevent another one in the future.

The cause of the Great Depression in the 1930s, and the Great Recession beginning in 2007, was one and the same: an overleveraged economy. Excessive debt levels are the direct result of the central bank providing artificially low interest rates and of superfluous lending on the part of commercial banks.


The easy money provided by banks eventually brings debt in the economy to an unsustainable level. At that point, the only real and viable solution is for the public and private sectors to undergo a protracted period of deleveraging. The ensuing depression is, in actuality, the healing process at work, which is marked by the selling of assets and the paying down of debt.

Unfortunately, our politicians today are focused on fighting this natural healing process by promoting the accumulation of more debt.

During this latest economic contraction, the Federal Reserve took interest rates to near 0%, and the Obama administration is leveraging up the public sector to record levels in a bid to re-leverage the private sector. The government's philosophy is tantamount to sticking a frostbitten man in the freezer so he won't have to suffer the pain associated with the thawing of his extremities.

During the Great Depression, real gross domestic product plummeted 32%. The Great Recession, which we are still struggling through, began in December 2007, according to the National Bureau of Economic Research. In contrast to the 1930s, GDP during this recession shrank only 3.6% from the fourth quarter of 2007 through its low point in the second quarter of 2009. Between the fourth quarter of 2007 and the first quarter of this year (the most recent period for which data is available), GDP contracted a mere 1.1%.


The contraction in GDP during the Great Depression was the direct result of consumers paying down debt and selling off assets. Household debt as a percentage of GDP reached nearly 100% in 1929. To put that number in perspective, household debt did not go back above 50% of GDP until 1985. It was not until the first quarter of 2009 that household debt once again approached the Great Depression level of 100% of GDP.

Between the start of the Great Depression and the end of World War II, household debt fell from 100% to just above 20% of GDP. Getting there was a painful process, but such de-leveraging was the only real cure for an economy swimming in debt. Thanks to government efforts to carry on our debt-fueled consumption binge, during today's Great Recession household debt has barely contract at all; it fell to 92.5% of GDP in the first quarter of this year.

To make matters even worse, during this current crisis our government's response has been to dramatically increase its own borrowing. At the start of the Great Depression, gross federal debt was 16% of GDP. It peaked just below 44% when the Depression ended. While the national debt did increase significantly during that period, it was still relatively benign when viewed from a historical perspective.


The U.S. entered the current Great Recession with gross national debt equal to 65% of GDP. It has since exploded to 90% of GDP! Comparing the relatively innocuous level of the 1930s with today's pile of government debt clearly illustrates the perilous state of the economy.

National debt did rise dramatically during World War II, topping out at 120% of GDP in 1946. But consumer debt plunged concurrently. So while the nation was adding debt to fight and win a global war, households were taking the necessary steps to ensure their balance sheets were well prepared for the aftermath of the battle.

Today, gross national debt and household debt are both at or above 90% of GDP for the first time in our history.


Many observers--unfortunately including most of those in power--have concluded that the government must spend more while consumers rein in their debts. Their strategy is based on the belief that once the economy perks up they can unwind that debt.

There are two problems with this Keynesian theory. One is that government spending doesn't increase GDP; it only chokes off private-sector growth. The other is that politicians never regard the present as a good time for the government to pay off its debts.

The result is that the country is left with a private sector reducing a massive overhang of debt. As households curb spending, GDP slows, and the ratio of debt to economic output grows even further.

Since we have yet to address the real cause of this recession, we are moving inexorably closer to causing The Greater Depression. If policymakers do not understand that the progenitor of a depression is debt, they will also be unable to provide a genuine solution.