When all of America's long term financial obligations are considered, the recent billions of dollars that have been added to that debt by the current Wall Street financial crisis are merely the tip of the iceberg.

Only by dividing the total of that government debt into each citizen's share can we even begin to comprehend the seriousness of the problem for every U.S. man, woman and child.

Earlier this year USA Today writer Dennis Cauchon wrote: "Taxpayers are on the hook for a record $57.3 trillion in federal liabilities to cover the lifetime benefits of everyone eligible for Medicare, Social Security and other government programs, a USA TODAY analysis found. That's nearly $500,000 per household. When obligations of state and local governments are added, the total rises to $61.7 trillion, or $531,472 per household. That is more than four times what Americans owe in personal debt such as mortgages.

"The $2.5 trillion [growth] in federal liabilities [in 2007] dwarfs the $162 billion the government officially announced as last year's deficit, down from $248 billion a year earlier. 'We're running deficits in the trillions of dollars, not the hundreds of billions of dollars we're being told,' says Sheila Weinberg, chief executive of the Institute for Truth in Accounting of Chicago.

"The reason for the discrepancy: Accounting standards require corporations and state governments to count new financial obligations, even if the payments will be made later.

"The federal government doesn't follow that rule. Instead of counting lifetime benefits for programs such as Social Security, the government counts the cost of benefits for the current year. The deteriorating condition of these programs doesn't show up in the government's bottom line, but the information is released elsewhere—in Medicare's annual report, for example" (usatoday.com, May 18, 2008, emphasis added throughout).

Inflation also compounds the problem. A Wall Street Journal news alert on June 3, 2008 stated: "Federal Reserve Chairman Ben Bernanke on Tuesday put the U.S. dollar squarely on the Fed's radar screen, saying its slide against other currencies has led to an 'unwelcome' rise in U.S. inflation and may be a factor in inflation expectations."

The unintended consequence of low interest rates has been that they contributed not only to the dollar's slide against other currencies in the current financial crises on Wall Street but they also fueled global inflation, especially in oil and food prices. Higher costs have led to increased debt.

This accumulating debt problem is not without parallel in history. At the end of World War II financially devastated Britain turned its back on global responsibilities and started dismantling its empire. The world's greatest nation prior to World War II, Britain saw her position of preeminence pass to the United States. Not only was Britain tired of endless war, her people also wanted free medical care and a more equal distribution of wealth.

This is comparable to what the United States is facing today. The twenty seven nations comprising the European Union already rival the United States in economic power. The EU's currency is used by more people than the American dollar and is arguably more sought after the world over.

Interestingly, the European Central Bank's purpose differs from that of the U.S. Federal Reserve's policy in recent times. The role of the ECB is to control inflation, which means currency must be kept strong, thereby limiting borrowing.

America's Federal Reserve since 1978 has had the responsibility of ensuring continuing growth and full employment, a recipe for over spending and higher rates of inflation. The United States is now paying the price for continuous overspending.

History indicates that positive economic change nearly always precedes the development and exercise of great political and military power. Europe today is in position to begin exerting such power in almost all spheres of influence. As U.S. economic dominance weakens, the EU will be there to fill the gaps. And Bible prophecy indicates that is just what will happen—though those prophecies do not reveal precisely when that will occur.