Economy Continues Rapid Decline

Many Arizona cities are struggling to balance their budgets amid a slowdown in the national economy. The downturn has led to budget worries in Mesa, Chandler, Gilbert and other communities. But Phoenix appears to be the hardest hit. The city's deficit will force the largest one-year cuts in its history. The culprit: plunging tax collections for January, which reflect December sales. Revenues were down 11.2 percent from the previous January, typically the best month of the year for the city. Compounding the city's problems is a decline in revenues from the tax on construction, which was down a staggering 27.1 percent from the previous year. In addition, Americans' percentage of equity in their homes fell below 50 percent for the first time on record since 1945, the Federal Reserve said Thursday.

• JJ Commentary: With the dollar falling to record lows, oil prices at record highs, and continuing increases in U.S. indebtedness, the current downturn has the potential to escalate into a serious recession. Whether it is this time or the next, at some point soon the economic devastation prophesied in Revelation 6:5-6 is coming when the third seal releases the black horse.