MT: Powell: “We understand better how little we understand about inflation”

Hungary 1946 sweeping up hyperinflation currency notes

Notice the following comments related to the economy of the USA:

Pulling Back The Curtain On The ‘Real’ US Economy

July 1, 2022

Revised numbers on US GDP from the Bureau Of Economic Analysis indicate that the economy faces a deeper contraction than originally reported. GDP shrank in the first quarter of 2022 by 1.6%; this is an impressive and sharp reversal from the fourth quarter of last year, which saw GDP grow by 6.9% due primarily to the continued circulation of covid stimulus dollars and consumer credit spending.

It’s important to keep in mind that this plunge in GDP occurred BEFORE the Federal Reserve started raising interest rates. Meaning, the Fed did in fact raise rates into economic weakness, much like they did during the onset of the Great Depression, causing even more damage to the economy in the process and prolonging the effects of the crisis. The difference this time is that we do not face a standard deflationary threat, but a stagflationary one. It’s a completely different ballgame.

Calls for recession are ample from the mainstream financial media and many alternative analysts, though the assumption among many is that price inflation will track down as the recession pressures grow. This may not be the case.

Loss of buying power in the dollar due to central bank stimulus and numerous supply chain issues indicate an extended period of price inflation well into next year. Furthermore, with foreign central banks now incrementally dropping the dollar as the world reserve currency, there will be even more dollars flooding into the US from overseas. That’s too many dollars chasing too few goods and services. https://www.zerohedge.com/economics/us-economy-contracted-more-initially-reported-1st-quarter

Notice also the following posted at Mish Talk related to Federal Reserve Chairman Jerome Powell:

Powell: “We understand better how little we understand about inflation”

Powell made a shocking statement … “We understand better how little we understand about inflation.” …

“There’s a clock running here. The risk is that because of the multiplicity of shocks, you start to transition into a higher-inflation regime. Our job is literally to prevent that from happening, and we will prevent that from happening.” …

Powell: “Is there a risk we would go too far? Certainly there’s a risk. The bigger mistake to make, let’s put it that way, would be to fail to restore price stability.”

“If what we see is a re-division of the world into competing geopolitical and economic camps, and a reversal of globalization, that sounds like lower productivity and lower growth. That’s a possible outcome and probably a likely outcome” https://mishtalk.com/economics/powell-we-understand-better-how-little-we-understand-about-inflation

As far as Chairman Powell admitting how little he and his colleagues understand about inflation, consider the following that was posted here that I wrote on October 29, 2016:

There are disastrous changes that will come to the USA (Daniel 11:39)–and its debt practices–which one day will cause massive hyperinflation–will be a cause (cf. Habakkuk 2:6-8).

Seeing what Zimbabwe and Venezuela have faced should get American politicians and economists to take note and recommend biblically-responsible fiscal policies.

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.

Hyperinflation will hit the USA and it will be worse than what Zimbabwe and Venezuela have experienced. (Thiel B. Hyperinflation hitting Venezuela and Zimbabwe, again! Could it happen to the USA?. COGwriter, October 29, 2022)

Yes, inflation has hit the USA, and although there will be ebbs and flows, ultimately it will be worse than anything Jerome Powell has hinted is possible for the USA.

Anyway, over the years I have maintained that many “economists” are political hacks. They were appointed because for their political views and to a degree, what schools they graduated from. Decades ago, when I was a Ph.D. student, I noted that “political correctness” had greatly intruded into doctoral education.

This has happened at the “ivy league” schools as well and the end result is that most who hold doctorates in economics have not been taught true economics, but politicized versions of that. The same phenomena used to happen in the old Soviet Union. It was basically because of wrong economic policies, combined with certain military ambitions, that led to its collapse.

Economic policies not based upon true economic reality will fail.

Between the US Federal Government increasing debt and the Federal Reserve’s policies related to monetizing debt, the USA has set itself up for disaster.

The Bible has an end time prophecy that those who read it may want to run:

2 Then the Lord answered me and said:

“Write the vision
And make it plain on tablets,
That he may run who reads it.
3 For the vision is yet for an appointed time;
But at the end it will speak, and it will not lie. (Habakkuk 2:2-3)

What is this end time prophecy about that should cause people to run? It is a prophecy about debt accumulation:

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 (Habakkuk 2:6-8)

The USA is believed to be the most indebted nation in the history of the world. Habakkuk’s prophecy is for the end time and cannot be directed towards the tiny nation called Israel. Israel simply does not have enemy creditors. But the USA has actual, past, and potential enemies as creditors.

Furthermore, consider that while the USA has been accumulating pledges in the form of US Treasury bonds and notes. The Chinese have been accumulating gold (see China, Gold, and the AIIB), as have the Russians. Various ones in Europe have been repatriating gold from the USA, like the Germans (see Germany is repatriating and accumulating gold–why?). Germany is getting more gold. The Bible teaches that the final King of the North will accumulate gold and take it from Egypt in Daniel 11:40-43; cf. Revelation 18).

This diluting of the value of currency (called ‘dross’ anciently) 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, 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. Russia, China, the Europeans, and others see some of this.

Wrong economic policies, combined by “natural” and other disasters, are setting the USA up for destruction.

Chairman Powell and others like him will not be able to stop what is coming.

Some items of possibly related interest may include:

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.
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? Two videos of related interest are Beast Prophecies and European Gold and Germany, Gold, and the US Dollar.
Do You Hold to Any of These Laodicean Prophetic Errors? Most real Christians in the last days are Laodicean and hold to prophetic errors which, unless they repent, will prevent them from being protected from the coming Great Tribulation. Here is a link to a related video: 50+ Laodicean Prophetic Errors.
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 is a link to a video titled: The Future King of the North.
The Great Monarch: Biblical and Catholic Prophecies Is the ‘Great Monarch’ of Catholic prophecies endorsed or condemned by the Bible? Two sermons of related interest are also available: Great Monarch: Messiah or False Christ? and Great Monarch in 50+ Beast Prophecies.
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. Here is a link to a related sermon: Physical preparedness for Christians.
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?
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?
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. A sermon of related interest is also available: Canada in Prophecy.
Australia and New Zealand in Prophecy Do biblical prophecies help explain the wealth blessings for Australia and New Zealand? Might cursings from disobedience come in the 21st century? Here is a link to a related sermon: Australia and New Zealand: Origins and Prophecy.
Might the U.S.A. Be Gone by 2028? Are there prophetic reasons to believe that the USA will not last two complete presidential terms? Yes. There is a tradition attributed to the Hebrew prophet Elijah that humanity had 6,000 years to live before being replaced by God’s Kingdom. There are scriptures, writings in the Talmud, early Christian teachings that support this. Also, even certain Hindu writings support it. Here is a link to a related video: Is the USA prophesied to be destroyed by 2028? In Spanish: Seran los Estados Unidos Destruidos en el 2028?
Biden-Harris: Prophecies and Destruction Can the USA survive two full presidential terms? In what ways are Joe Biden and Kamala Harris apocalyptic? This book has hundreds of prophecies and scriptures to provide details. A Kindle version is also available 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 your free Kindle reader app (or if you already have one or a Kindle), you can go to: Biden-Harris: Prophecies and Destruction (Kindle) to get the book in seconds.