Birch: Why a Hyperinflation “Time Bomb” Could Explode in 2021
(Public Domain photo)
Is inflation coming?
Yes.
Might we see it in 2021?
Yes.
Government policies related to COVID-19 and other debt plans are factors. Notice the following:
Global Inflation Watch
November 28, 2020
Since late-March every category has seen increases in prices. Sector and specialist analysts will always claim that there are identifiable reasons why prices for an individual category or commodity have risen. But the fact is that with the exception of the dollar and the other fiat currencies listed in the table, all prices have risen. This cannot happen without the dollar and these currencies losing purchasing power. …
The rise in commodity prices varies considerably, but at a time of global economic slump, they are all higher not just in dollars, but measured in the other currencies represented in the table, which can only be a reflection of monetary debasement. …
Hyperinflation of the dollar is here
It is now impossible to envisage the US government and the Fed limiting further monetary expansions. Their Keynesian creed tells them that to do so would be disastrous for the economy. By relying on macroeconomic beliefs upon which they base their policy decisions they cannot come up with an answer that ultimately saves the currency and the economy. They do not appear to realise that by transferring wealth to a generally non-productive government sector, monetary inflation impoverishes the productive capacity of the economy.
It is against this background that having seen one enormous budget-busting stimulus package from the US government, we shall shortly see another. …
US government finances since March, when the covid response commenced, leading to a fall in tax revenue and an increase in government spending. …
Along with the rest of the world, America has entered a second wave of infections, which will oblige the government to deploy a second similar, or even greater stimulus. The second covid wave is likely to lead to a further fall in tax revenues, as a result of bankruptcies from the initial coronavirus wave combining with the effects of the second. There is also a growing realisation that the economic problems from the virus alone will continue beyond the second wave. …
The US government’s dependency on inflationary financing is already a commitment with no palatable escape. Politicians are trapped by their earlier electoral promises. Assuming Biden is confirmed as the next US President, his left-leaning socialistic policies can only accelerate the debasement process. https://seekingalpha.com/article/4391845-global-inflation-watch
The Birch group reported the following:
Why a Hyperinflation “Time Bomb” Could Explode in 2021
No matter who is president next year – regardless of whether Biden’s election is confirmed over the next couple of weeks – he will have a potential economic “time bomb” on his hands …
Soaring Inflation Could Be on Its Way Back
Assuming vaccines for COVID-19 make their way into the population, it’s quite possible that a long period of pent-up consumer demand could explode. …
Martin Wolf quotes a snippet out of the book “The Great Demographic Reversal” that predicts up to 10% inflation for next year:
As in the aftermath of many wars, there will be a surge in inflation, quite likely more than 5 per cent, or even on the order of 10 percent in 2021.
The U.S. hasn’t seen inflation rise higher than 10% since 1980. So jumping from 1.2% overall CPI to double digits in such a short period of time would certainly send shockwaves through the economy. …
Robert Wenzel summed up this dire outlook by writing: “The theme of 2021 will be soaring price inflation.”
We can hope he’s wrong, because this still has yet to play out, but it’s best to prepare in case he’s right.
Protect Yourself From “1980s Hyperinflation”
If your savings don’t include them already, “hard assets” like gold and silver have a history of faring well during market turmoil and times of inflation. 11/25/20 https://www.birchgold.com/news/hyperinflation-time-bomb-2021/
Notice a 1981 article from the old Worldwide Church of God about inflation and gold:
Why Gold?
What does uncertainty in the world’s financial system portend for the future? How will it affect you? And what about the value of gold? Gold has been the most sought after form of money for thousands of years. By universally accepted definition, money is anything that serves as a store of value and as a medium of exchange. Historically, gold has fit that description better than anything else. Because it is relatively scarce, virtually indestructible and possesses a wide range of artistic and functional uses, gold became the standard in most economies. It was easily coined, highly portable and universally recognized for its value.
Even though the supply of gold is limited, demand for the metal seems to be infinite. Commodities such as food crops or industrial output can have price swings based on demand, weather, poor economic policies or disasters. None of these affects the total supply of gold. It maintains its value in relation to other commodities regardless. Thus it has acted as a financial constraint and stabilizing factor. People trust gold because it has been an instrument of monetary discipline and a standard of measure by which to measure other commodities.
Gold acts as a check on governments and politicians. Paper money came into use because it was more convenient to use than gold.
However, historically the amount of paper money in circulation was tied to the amount of gold a nation possessed. When people knew that gold backed up their currency, they trusted their money. But even though people may trust gold, they don’t necessarily trust their leaders. In the words of George Bernard Shaw: “The most important thing about money is to maintain its stability…. With paper money this stability has to be maintained by the government. With a gold currency, it tends to maintain itself…. You have to choose as a voter between trusting the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And, with due respect for these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.” The goal of every political leader is to remain in power. In a democracy, he must retain his popularity to be reelected.
Extravagant social welfare schemes and public works help to perpetuate the government’s power, even though the country may not be able to afford the expense. If a political leader can get rid of the gold standard, then there is no restraint on the amount of paper money the government can print. The deficit between collected taxes and government spending can be made up through printing extra money. But the effect of these shortsighted policies soon becomes apparent. More and more paper money chases the available goods and services — the result is inflation. Witness the situation in the United States today. Since 1971 the dollar has had no relationship to gold.
Multibillion dollar deficits in government spending have been covered by printing extra dollars. Because the dollar is not convertible to gold, there is no check on government spending and the citizens suffer from consequent inflation. Inflation becomes a vicious circle with everyone eventually losing. As Voltaire concluded, “All paper eventually returns to its intrinsic value — zero.” In 1871 the British economist David Ricardo noted, “Experience has shown that neither a state nor a bank ever had the unrestricted power of issuing paper money without abusing that power.” The United States, blessed with staggering wealth, vast natural resources, and phenomenal industrial and agricultural output, is in a serious financial situation. It makes no sense — except for the fact that national leaders were quite prepared to dilute the value of the nation’s money supply. The decision defrauded the citizens by stealing the purchasing power of wages and savings. This sinister aspect of inflation was explained by the British economist John Maynard Keyes in 1919: “By a continuing process of inflation, governments can secretly and unobserved, confiscate an important part of the wealth of their citizens.” Mr. Keynes himself advocated this form of government policy. But as people begin to experience inflation and see their wealth quickly disappearing, they try to protect themselves through investing and speculating in more stable commodities, including gold.
Speculation in gold is a symptom, and a warning, of a distorted government-ravished economy. It is a sign of loss of trust and faith by men in their own system and political leaders. (Curry J. HOW GOLD, INFLATION AND GOVERNMENT IMPACT YOU. Plain Truth, April 1981)
Other articles from the old WCG also predicted that the Europeans would end up with their own European currency and that it would be expected to replace the dollar.
The history of the US government increasing debt, which it has accelerated because of policies related to COVID-19, is setting the stage for more inflation.
The media and the populous will demand more ‘stimulus’ –which means more debt.
Republicans and Democrats will push for it and Congress will go for it. And the President of the United States will sign one or more bills for it.
Sadly, many in the media and government act like printing up money is really the solution for the US economy because of the effects of COVID-19 policies.
But there is a real risk of massive inflation.
Notice also the following from last Summer:
July 13, 2020
The pandemic came along the pandemic and new market panic in late winter and spring. The subsequent deficit spending and money printing broke all records.
Unlike the CBO’s estimate and my own forecast, the deficit this year will be at least $5 trillion. That means $5 trillion is the lowest number you can expect.
Meanwhile, the Fed’s money printing will more than double the size of its balance sheet from $3.8 trillion to $8 trillion or higher. …
With all this money creation, does this mean that inflation is finally on the way? …
When You’ll See Inflation
Inflation will come when people lose confidence in the dollar and suddenly dump dollars for any hard assets they can find.
Money velocity will accelerate but it won’t be into consumer goods. It’ll be into hard assets that hold their value over time, gold in particular.
In other words, the best leading indicator of inflation won’t be found in the grocery store or at the gas pump.
It’ll be found in the dollar price of gold.
Of course higher gold prices means higher consumer prices since higher gold prices mean a weaker dollar. More dollars will be required to buy the same amount of goods. https://dailyreckoning.com/rickards-inflation/
Money and Markets posted the following from Bill Bonner on July 18, 2019:
Bigger Lies
We’ve seen that all forms of “stimulus” are mutant varieties of fraud. Whether we’re talking about unfunded tax cuts, bigger deficits, giveaway checks, quantitative easing (QE), zero interest-rate policy (ZIRP) or lower interest rates — they all work the same way.
That is, they all lie. They tell us that there is more demand (money) around than there really is. And they “work” by misleading people into doing things they shouldn’t do. Consumers overspend. Businesses overproduce. And investors buy stocks that are overpriced.
Depending on how it is delivered, this inflation of the money supply causes over- and adverse reactions that can easily be mistaken for real growth. More consumer spending. More business expansion. Higher stock prices.
But it is all a lie. And as the lying goes on, the economy gets more and more out of kilter … more and more dependent on inflation … And the feds need to tell bigger and bigger whoppers to keep it from collapsing.
Turning Point
This is the big financial story of our time: Inflate or Die. Either the feds continue to lie persuasively by inflating prices … or the truth comes out and the bubble deflates. https://moneyandmarkets.com/inflation-dominate-five-years/
Yes, programs like “quantitative easing” and many “stimulus” programs are based on lies.
Lying is a sin.
The Bible warns, “be sure your sin will find you out” (Numbers 32:23).
There is a serious cost to having an economy pumped up with so much “dross” money.
Actually, the USA has no real intention to pay back its debt.
Its leaders basically hope to not pay it back, but if some payment is needed they hope that it will be in inflated dollars worth less than what the USA borrowed.
Foreign creditors will not be pleased.
Not paying back debt is wicked:
The wicked borrows and does not repay … (Psalm 37:21)
This diluting of the value of currency (called “dross” anciently), which is what the USA has been doing with its debt and quantitative easing policies, is condemned in the Bible.
4 Take away the dross from silver (Proverbs 25:4a).
22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)
25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)
18 “Son of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: ‘Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.’” (Ezekiel 22:18-22)
Although the Bible warns against using dross and diluting the money supply, many modern ‘experts’ have a different view. The wrong views on economics will lead to economic problems and ultimately the total crash of the dollar of the USA. China and others see some of this.
Printing more and contributing to hyperinflation is not going to solve the debt problems of the USA. It has not worked for Zimbabwe, which has been doing this on and off for some time.
The USA, because of the role of its dollar, can look to get away with this for longer than other nations, but the end result will be much worse than most think.
Eventually, interest on the acknowledged debt will rise and become a viscous circle that will spiral to the death of the US dollar.
The Bible itself predicts food inflation with the ride of the black horse of the Apocalypse. Revelation 6:5-6 indicates that there will be food, but that it will be quite expensive (food-price inflation).
5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. 6 And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.” (Revelation 6:5-6)
Consider also that food inflation is associated with the ride of the third horse, the black horse. And while that is commonly called the black horse of famine, the word famine is not in Revelation 6:5-6. That does NOT mean that there will not be any famines–for there will be–but food inflation will be considered the cause by government overprinting of money, crop matters, trade issues, etc. and most will NOT attribute it to the ride of the third horseman or the opening of the third seal.
But yes, some will thus die as they will not be able to afford it, while others will survive but struggle.
Notice something from the old Worldwide Church of God 47 years ago:
The black horseman’s future ride will reduce the proud faces of white America, Europe, and the British Commonwealth into the blackened skin of starvation such as now afflicts the vast majority of mankind. (Alexander G. The Four Horsemen of the Apocalypse. Ambassador College Press, Pasadena (CA), 1973, p. 31)
There are disastrous changes that will come to the USA (Daniel 11:39; see also USA in Prophecy: The Strongest Fortresses)–and its debt and other monetary practices–which one day will cause massive hyperinflation–will be a cause (cf. Habakkuk 2:6-8; see also USA in Prophecy: The Strongest Fortresses).
But since many leading so-called ‘economists’ are political hacks and/or have a political agenda, do not expect too many prominent ones to have sufficient influence to resolve the problems in the USA.
The truth is that the USA is setting itself up for massive inflation (as well as food shortages).
Hyperinflation will hit the USA and its results will be worse than almost anyone realizes.
Some items of possibly related interest may include:
Four Horsemen of the Apocalypse What do each of the four horseman of the Apocalypse represent? Have they began their ride? Did Jesus discuss the any of this? Might their rides coincide with the “beginning of sorrows? Do they start their ride prior to the Great Tribulation? Did Nostradamus or any other ‘private prophets’ write predictions that may mislead people so that they may not understand the truth of one or more of the four horseman? There is also a related YouTube video titled Sorrows and the Four Horsemen of the Apocalypse.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
COVID 19 is NOT the End, but could it be TEOTWAWKI? The novel coronavirus called COVID-19 is wreaking havoc around the world. Many states of the USA as well as countries in Europe are on lockdown with shelter in place /shelter in residence requirements. In France, a form is required when you are not at your house. In Spain, drones are being used to warn people who are outside to got back to their homes–does that bring up feelings of ‘Big Brother’? Italy, France, and other areas are using police and/or military force to encourage people to stay inside. According to the Bible could this be the end? If not, what has to happen first? Have the second and third of the four horsemen of the Apocalypse started their ride? Could COVID-19 be the fourth horseman? Why or why not? Could we be seeing The End of the World as We Know It (TEOTWAWKI) like the R.E.M.’s 1987 single song discussed? Do Christians need to fear? What did Jesus teach? What did the Psalmist teach? This is a video. Here is a link to a version in the Spanish language: Corona 19 no es el final PERO es el TEOTWAWKI.
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
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? In the Spanish language check out ¿Quién es el Rey del Norte? Here are links to two related videos: The King of the North is Alive: What to Look Out For and The Future King of the North.
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Gentile Cryptocurrency Proposal Two Russian leaders have called for a BRICS-wide and/or EAEU-wide cryptocurrency. This is hoped to be used to replace the US dollar for international trade. BRICS stands for Brazil, Russia, India, China, and South Africa. The BRICS nations represent 3.6 billion people. The EAEU includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Will Gentiles rise up? Are there any prophetic ramifications of what these nations are looking to do? This is a video.
The Times of the Gentiles Has there been more than one time of the Gentiles? Are we in it now or in the time of Anglo-America? What will the final time of the Gentiles be like? A related sermon is available and is titled: The Times of the Gentiles.
Eliminate the $100 bill? Various ones, like Harvard economist and Trilateralist Larry Summers have called for the elimination of the USD$100 bill and the 500 Euro note. In Asia, South Korea is heading towards cashlessness by 2020. Electronic currencies are information and subject to monitoring. Did something God inspired the Apostle John over 1900 years ago now able to come to pass? This is a video.
The ‘Peace Deal’ of Daniel 9:27 This prophecy could give up to 3 1/2 years advance notice of the coming Great Tribulation. Will most ignore or misunderstand its fulfillment? Here is a link to a related sermon video Daniel 9:27 and the Start of the Great Tribulation.
Collapse of the Euro and Dollar? War in 2020? Larry Edelson of Money and Markets described aspects of current economic difficulties and explained why he felt matters would get a lot worse. He said war, like World War III, could break out as early as 2020. What did he call the ‘granddaddy of all cycles”? Will matters go as he said? What does the Bible teach? Dr. Thiel provides biblical insights that secular sources often miss. This is a video.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is a link to a video titled: Can You Prove that the Beast to Come is European?
When Will the Great Tribulation Begin? 2020, 2021, or 2022? Can the Great Tribulation begin today? What happens before the Great Tribulation in the “beginning of sorrows”? What happens in the Great Tribulation and the Day of the Lord? Is this the time of the Gentiles? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord? Who are the 144,000? Here is a version of the article in the Spanish language: ¿Puede la Gran Tribulación comenzar en el 2020 o 2021? ¿Es el Tiempo de los Gentiles? You can also see the English language sermon videos: The Great Tribulation from the Mount of Olives and Can the Great Tribulation begin before 2020? A shorter and newer video is: Could the Great Tribulation Begin in 2020? Here is a link to the Spanish version of that video: ¿Podría la Gran Tribulación comenzar en 2020?
The Times of the Gentiles Has there been more than one time of the Gentiles? Are we in it now or in the time of Anglo-America? What will the final time of the Gentiles be like? A related sermon is available and is titled: The Times of the Gentiles.
Armageddon Who is involved and when will this gathering happen? Here is also a video from Dr. Thiel, from Tel Megiddo in Israel: Armageddon. Other videos include: Armageddon Will it come on Trump’s watch?, Iraq, Armageddon, & Prophecy, Freemasonry, Armageddon, and Rome, Is China paving roads to Armageddon?, and Jordan, Petra, and Armageddon.
World War III: Steps in Progress Are there surprising actions going on now that are leading to WWIII? Might a nuclear attack be expected? What about WWIV? Does the Bible promise protection to all or only some Christians? How can you be part of those that will be protected? A related video would be Is World War III About to Begin? Can You Escape?
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2026 or 20xx? There is also a video titled 6000 Years: When will God’s Kingdom Come? Here is a link to the article in Spanish: ¿Tiene Dios un plan de 6,000 años?
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?
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: Are Chinese threats against Australia for real?
Will the Anglo-Saxon-Celtic 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?
Is God Calling You? This booklet discusses topics including calling, election, and selection. If God is calling you, how will you respond? Here is a link to a related sermon: Could God be Calling You? A short animation is also available: Is God Calling You?
Christian Repentance Do you know what repentance is? Is it really necessary for salvation? A related sermon is also available titled: Real Christian Repentance.
When You Sin: Do You Really Repent? This is an article by Charles F. Hunting. A related sermon is Confess to God and truly repent.
Donald Trump in Prophecy Prophecy, Donald Trump? Are there prophecies that Donald Trump may fulfill? Are there any prophecies that he has already helped fulfill? Is a Donald Trump presidency proving to be apocalyptic? Two related videos are available: Donald: ‘Trump of God’ or Apocalyptic? and Donald Trump’s Prophetic Presidency.
Trump Presidency Magic 8 Ball or Bible Prophecy? BBC reported that one might as well use a ‘Magic Eight-Ball’ to try to predict what will happen in the remaining time of Donald Trump’s presidency. What is a ‘Magic Eight-Ball’? Dr. Thiel not only explains that, but also briefly goes over 10 biblically-based warnings he wrote would happen if Donald Trump were elected that have already began to come to pass. He also goes over something he wrote back in 2008 that the Trump presidency is also helping lead to fulfillment. Should you trust Bible prophecy or not? Dr. Thiel says that Bible prophecy can be trusted, despite the view of skeptics and others that either overlook or despise the Bible. This is a video.
Donald Trump and America’s Apocalypse This 188 page book is for people truly interested in prophecies related to Donald Trump and the United States, including learning about several that have already been fulfilled and those that will be fulfilled in the future. The physical book can be purchased at Amazon for $12.99 from the following link: Donald Trump and America’s Apocalypse.
Donald Trump and America’s Apocalypse-Kindle Edition This electronic version of the 188 page print edition is available for only US$3.99. 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 Donald Trump and America’s Apocalypse-Kindle Edition.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
The Gospel of the Kingdom of God This free online pdf booklet has answers many questions people have about the Gospel of the Kingdom of God and explains why it is the solution to the issues the world is facing. Here are links to three related sermons: The World’s False Gospel, The Gospel of the Kingdom: From the New and Old Testaments, and The Kingdom of God is the Solution.
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