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Political change in the United States appears to have begun. Meanwhile, across the Atlantic, steps are again being taken toward establishing a European Constitution. Worldwide, power is shifting, and a large part of that is related to the economy—as the old adage says, “Money is power.”
For several decades, the U.S. has enjoyed the blessing of generally having the world’s largest and strongest economy. Relatively speaking, growth, and therefore increased wealth, has been consistent.
But now it seems the picture is beginning to change. The Financial Times reported last week that, in 2006, the American economy recorded its lowest rate of productivity growth in more than a decade. The current rate puts the U.S. behind both the European Union and Japan, and furthermore, increases doubt about the future stability of the U.S. economy. Gail Fosler, chief economist of the Conference Board (an international business organization), told the Times that the fall in productivity growth was unlikely to be cyclical, and pointed to the shift from a production economy to a service and technology economy.
In addition, production-oriented companies in the U.S. are struggling: The Ford Motor Company recorded a loss of $12.7 billion in 2006—the largest in its 103-year history. Toyota, meanwhile, is expected to overtake General Motors this year as the world’s leading vehicle manufacturer.
In Europe, the German economy continues to lead, despite a slight slowdown in early 2007. A couple of indexes have indicated an expected drop in “business climate” and “consumer sentiment” in January, following highs in late 2006. However, most are expecting growth to continue, with overall business confidence in Germany remaining at its second-highest level since the early 1990s. Hans-Werner Sinn, president of Ifo (a Munich-based economic research institute), said, “Companies still reported a very positive current business situation, even if it was not quite so favorable as in the previous month. This indicates that after a brief pause, the cyclical recovery will continue in the coming months.”
Those expecting the eventual downfall of the “American Empire,” often pointing to world history, would be surprised to learn the Bible clearly indicates that the wealth and power of the United States, along with Britain and their allies, is about to quickly fade away—and in the near future. This is explained in the book America and Britain in Prophecy, written by David C. Pack. In it he writes, “The once-powerful economic engine of America and Britain is quickly coming to a sudden halt—and it is futile to try to stop it! Why? We have ignored our Creator and turned from His laws and commands. As Lincoln exclaimed, ‘We have forgotten God’!”