Marketwatch speculates why USA interest rates will remain low–is a disaster truly in the making?

Janet Yellen

Might USA interest rates remain low? Here is a view from Marketwatch:

May 09, 2014

2 reasons the Fed may keep interest rates at zero

Opinion: Yellen highlights risks from weak housing and emerging markets

WASHINGTON (MarketWatch) — Everyone assumes the Federal Reserve will finally raise interest rates sometime next year. That’s what the Fed’s “dot plot” is forecasting, that’s what the markets are pricing in, and that’s what almost every Fed watcher believes.

But what if they are wrong? What if the Fed delays that first rate hike? What if the U.S. economy isn’t ready for higher rates in 2015?

In her testimony to Congress this week, Fed Chair Janet Yellen didn’t steer anyone away from the assumption that the Fed will probably raise rates next year. But she did flag two risks to the economy that could delay higher rates: the U.S. housing market and the fragile condition of foreign economies. http://www.marketwatch.com/story/2-reasons-the-fed-may-keep-interest-rates-at-zero-2014-05-09

Let me provide another reason to consider: interest cost for the USA debt.

The USA is currently over $17,000,000,000,000 in admitted debt.

The USA’s federal expenditures are around $3.9 trillion per year, with $230 billion or so for interest costs. If interest rates went back up to, say, 10%, this would make the total expenditures rise to around $5.4 trillion. As the USA brings in about $3 trillion in taxes, this would be a huge increase in the deficit. That in turn would accelerate the borrowing by the USA, and if that continued, the debt would rise so fast that foreigners would decide that holding USA federal debt was unsafe. This would result in many dumping USA debt and effectively destroying much of what would be left of the economy of the USA.

Sound far fetched?

Perhaps to some, but the Bible prophesies something like that:

6 “Will not all these take up a proverb against him, And a taunting riddle against him, and say,’Woe to him who increases What is not his — how long? And to him who loads himself with many pledges’? 7 Will not your creditors rise up suddenly? Will they not awaken who oppress you? And you will become their booty. 8 Because you have plundered many nations, All the remnant of the people shall plunder you, Because of men’s blood And the violence of the land and the city, And of all who dwell in it. ( Habakkuk 2:6-8)

The above prophecy will be fulfilled at the time of the end (cf. “The message was true, but the appointed time was long…in the latter days, for the vision refers to many days yet to come”, Daniel 10:1,14). Daniel 8:19, 11:27,29,35 use same the Hebrew term for “appointed time” as Habakkuk 2:3, while Daniel 10, using a different term, ties the latter days to the time in Daniel 8:19. Habakkuk 2 was not fulfilled in its entirety anciently. Also, it makes little sense that Habakkuk would be directed towards the modern nation of Israel as it does not have enemy creditors. The most indebted nation of all time is the USA, and it has greatly increased its borrowing from foreign creditors in the past several years.

Even Janet Yellen herself has said that the current debt projections for the USA are unsustainable:

May 8, 2014

Federal Reserve Chair Janet Yellen, taking a page from her predecessor, urged the U.S. Congress on Thursday to address the nation’s long-term budget challenges, warning that the current course was unsustainable.

“We can see that going out 20, 30, 50 years without some further shifts in fiscal policy, it’s projected that the ratio of debt to GDP will rise to unsustainable levels,” Yellen told the Senate Budget Committee…“I do want to agree with my predecessor in emphasizing, though, that long-run sustainability of fiscal policy and the debt is something that is very important.” http://www.voanews.com/content/reu-yellen-urges-congress-to-act-on-long-term-budget-challenges/1910512.html

IF SOMETHING IS TRULY UNSUSTAINABLE, IT CANNOT CONTINUE. The USA is in a position that will require it to pay down debt, or at least greatly slow the rate of accumulation down. Yet, if interest rates go up to more historically ‘normal’ levels, that of itself will guarantee the unsustainability. The situation is that bad.

Even secular sources, including the Congressional Budget Office (CBO), realize that a disaster like I have been laying out is in the making:

In the words of a veteran investor, watching the U.S. bond market today is like sitting in a packed theater and smelling smoke. You look around for signs of other nervous sniffers. But everyone else seems oblivious…

As the CBO noted…in its 2013 “Long-Term Budget Outlook,” echoing the work of Harvard economists Carmen Reinhart and Ken Rogoff : “The increase in debt relative to the size of the economy, combined with an increase in marginal tax rates (the rates that would apply to an additional dollar of income), would reduce output and raise interest rates relative to the benchmark economic projections that CBO used in producing the extended baseline. Those economic differences would lead to lower federal revenues and higher interest payments. . . .

“At some point, investors would begin to doubt the government’s willingness or ability to pay U.S. debt obligations, making it more difficult or more expensive for the government to borrow money. Moreover, even before that point was reached, the high and rising amount of debt that CBO projects under the extended baseline would have significant negative consequences for both the economy and the federal budget.” http://online.wsj.com/news/articles/SB10001424052702304906704579113661593684356

The problem is known, but most are not paying attention.

As far as people being oblivious, notice also the following:

2 “Son of man, you dwell in the midst of a rebellious house, which has eyes to see but does not see, and ears to hear but does not hear; for they are a rebellious house.

3 “Therefore, son of man, prepare your belongings for captivity, (Ezekiel 12:2-3)

Many events aligning with properly understood biblical prophecy are coming to pass that relatively few understand. And the USA is definitely on its way down and out.

Do you really have eyes to see and ears to hear?

Will you truly pay attention?

Federal Reserve officials and others may wish to consider studying the following prophetically-oriented writings:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, English, Scottish, Welsh, Australians, Anglo-Saxon (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo-Saxon nations? Why might God allow them to be punished first? Here is a link to the Spanish version of this article: Anglo-América & las Tribus Perdidas de Israel. Information is also in the YouTube sermons titled Where are the Ten Lost Tribes? Why does it matter? and British are the Covenant People. A short YouTube of prophetic interest may be Barack Obama and the State of the Apocalypse.
Will the Anglo-Saxon Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people? Here is a link to a video titled Will the USA and other Anglo-nations be Divided and Their People Made Slaves? Here is a related item in the Spanish language ¿Serán divididas las naciones anglosajonas?
British are the Covenant People What do ‘British’ and ‘Britain’ mean in Hebrew? Are the descendants of the Anglo-Saxons people of the covenant? Does the British royal family connect to the throne of David? What does the Bible teach? What does history show us? Is there any DNA evidence related to British-Israelism? When did Christianity make it to the British Isles? Could Jeremiah have made it to the British Isles? What type of Christians made it to the British Isles? Did the last King of England believe in British Israelism?
Hillary Clinton in Prophecy Prophecy, Hillary Clinton? Are there prophecies that Hillary Clinton may fulfill? Are there any prophecies that she has already helped fulfill? Could Hillary Clinton be apocalyptic? Could Hillary Clinton be the final Antichrist?
Canada in Prophecy: What Does Bible Prophecy, Catholic Prophecy, and other Predictions Suggest About the Future of Canada? There are prophecies that suggest involvement with Canada. And many are not positive about its future.
Protestant and Church of God views of the United States in Bible Prophecy Is the USA mentioned in Bible prophecy? Some Protestants say yes, while others say no. What does the Bible really teach? Learn the truth about this. There is also a video available: Is The United States Mentioned In Bible Prophecy?
Physical Preparation Scriptures for Christians. We all know the Bible prophecies famines. Should we do something? Here is a version in the Spanish language Escrituras sobre Preparación física para los Cristianos.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies for the Great Monarch point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States? Here is a link to a video titled: The Future King of the North.
The Gospel of the Kingdom of God was the Emphasis of Jesus and the Early Church Did you know that? Do you even know what the gospel of the kingdom is all about? You can also see a YouTube video sermon The Gospel of the Kingdom.
Just What Do You Mean the Kingdom of God? A booklet that was written by Herbert Armstrong answers questions about the Kingdom.
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. And you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device: Please click HERE to download one of Amazon s Free Reader Apps. After you go to for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.