Church of God News

Inflation in the U.S. has reached its lowest point in more than two years, a sign the Federal Reserve’s interest rate hikes have steadily slowed price increases. https://t.co/CzjQ5p77xk

— The Associated Press (@AP) July 12, 2023

COGwriter

Yahoo News reported:

July 12, 2023

The Consumer Price Index (CPI) rose 0.2% over last month and 3% over the prior year in June, a slight acceleration from May’s 0.1% month-over-month increase but a slowdown compared to the month’s 4% annual gain.

Both measures were slightly better than economist forecasts of a 0.3% month-over-month increase and a 3.1% annual increase, according to data from Bloomberg.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in June climbed 0.2% over the prior month and 4.8% over last year. Both measures were also slightly better than economist expectations.

The monthly core increase was the smallest 1-month increase in that index since August 2021. https://finance.yahoo.com/news/june-cpi-inflation-data-july-13-2023-123148137.html

Less inflation is generally good, but notice also the following two items from World Net Daily:

‘We’re still in terrible shape,’ economist says after inflation report released

July 12, 2023

An economist says “American families are having to eat the rotten fruit from the tree of government overspending” after the U.S. Bureau of Labor Statistics reported on Wednesday that the consumer price index, a key measure of inflation, rose 0.2% in June.

“It’s great news for the consumer that inflation has slowed dramatically from 40-year highs, but we’re still in terrible shape,” EJ Antoni, a research fellow for regional economics in the Center for Data Analysis at The Heritage Foundation, told The Daily Signal in a written statement. (The Daily Signal is The Heritage Foundation’s news outlet.)

“Real weekly earnings are down 4.6% since January 2021 and prices are up 16% over that same time. Annual inflation has outpaced earnings gains for 26 of the last 30 months,” Antoni added. “Even more worrisome is the fact that inflation has settled at 3%, which is about 50% higher than either the two percent target or the 1.8% average we saw from 2009 until the Biden administration.” …

Alfredo Ortiz, chief executive officer and president of the Job Creators Network, also reacted to the inflation report. …

“While inflation is finally coming back down, it remains far higher than the Federal Reserve’s target rate, and it’s important to remember today’s price increases are compounding off a much higher base,” Ortiz said. “Core inflation over the last year continues to outpace average wage growth, meaning Americans are still experiencing real wage destruction related to core goods and services.” https://www.wnd.com/2023/07/still-terrible-shape-economist-says-inflation-report-released/

The economic decline of our nation is crystal-clear

July 11, 2023

Using statistics from the Department of Labor, The Wall Street Journal reports that real hourly wages during the Biden presidency have declined.

When Biden took office in January 2021, the average hourly wage adjusted for inflation was $11.39. Now, 29 months later, it stands at $11.03, a 3.16% decline. …

The economic legacy of the Biden administration, which they call Bidenomics, is expansion of government at the expense of the private sector along with massive spending, which has produced the worst inflation in 40 years, resulting in erosion of the pay of American workers. …

Economist John Cochrane of Stanford University’s Hoover Institution notes that “creeping stagnation is the central economic issue of our time.”

“Economic growth since 2000 has fallen by half compared with the last half of the 20th century,” continues Cochrane.

From 1950 to 2000, the U.S. economy grew on average 3.56% annually. Since 2000, the annual growth rate averages 1.96% per year.

What does this mean? “The average American’s income is already a quarter less than under the previous trend,” notes Cochrane.

Corresponding CBO projections for the federal debt held by the public as a percent of GDP: 2024, 100%; 2035, 120%; 2040, 134%; 2050, 181%. https://www.wnd.com/2023/07/economic-decline-nation-crystal-clear/

US government spending, increases of debt, and impacts on inflation are not due to just the Biden Administration.

The projected increases in debt are putting the economy of the USA at risk–and yes, will one day be a factor in its destruction per Habakkuk 2:6-8.

Furthermore, consider that last Fall, the head of the US Federal Reserve said he may help cause a recession:

Powell’s stark message: Inflation fight may cause recession

September 22, 2022

WASHINGTON (AP) — The Federal Reserve delivered its bluntest reckoning Wednesday of what it will take to finally tame painfully high inflation: Slower growth, higher unemployment and potentially a recession.

Speaking at a news conference, Chair Jerome Powell acknowledged what many economists have been saying for months: That the Fed’s goal of engineering a “soft landing” — in which it would manage to slow growth enough to curb inflation but not so much as to cause a recession — looks increasingly unlikely. …

“The chances of a soft landing,” Powell said, “are likely to diminish” as the Fed steadily raises borrowing costs to slow the worst streak of inflation in four decades. “No one knows whether this process will lead to a recession or, if so, how significant that recession would be.”

“We have got to get inflation behind us,” Powell said. “I wish there were a painless way to do that. There isn’t.”

Powell’s remarks followed another substantial three-quarters of a point rate hike — its third straight — by the Fed’s policymaking committee. https://apnews.com/article/inflation-jerome-powell-unemployment-government-and-politics-96092b0d276a604b3c1e83f44b8e2ec9?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_04

Chairman Powell’s claim that there is not “a painless way” to get inflation behind us is not quite the case.

As I posted last Fall:

The government of the USA and various of its states could easily change rules to allow more drilling of oil off the Gulf and California coasts, as well as in Alaska, plus open the Keystone pipeline. That would result in a massive reduction in the price of oil and fertilizers, plus would also reduce transportation costs. The governments could also provide incentives for more food production, which would lower food costs.

Yes, cutting energy costs and increasing food production would reduce inflation. Also, that would not result in net job losses, but in job gains.

Yet, instead, the Fed plan has been to increase interest rates (which have been artificially low) in an effort to slow down the economy and reduce wage demands.

Those in the Fed, the US Congress, or the Executive Branch of government do not believe that the Fed’s actions will cost them their jobs–mainly only the jobs of the non-elite will be lost.

Nationally, more could be produced. Control of debt could happen, but we do not see the political will to make this happen–nor does the news media tend to see debt as the problem it really is.

If government leaders believed the Bible, they would be willing to take a lot of steps that they seemed to have overlooked.

Related to inflation, the Continuing Church of God (CCOG) put together the following video:

In the world, we see a lot of economic uncertainty.

There are recessions, sometimes stagflation, disasters, weather issues, wars, and even severe depressions that affect income and physical needs.

One can lose a job at almost anytime.

Instead of being in debt, God’s people should strive to save:

But they should also be givers and rely on God’s blessings:

8 “Will a man rob God? Yet you have robbed Me! But you say, ‘In what way have we robbed You?’ In tithes and offerings. 9 You are cursed with a curse, For you have robbed Me, Even this whole nation. 10 Bring all the tithes into the storehouse, That there may be food in My house, And try Me now in this,” Says the Lord of hosts, “If I will not open for you the windows of heaven And pour out for you such blessing That there will not be room enough to receive it. 11 “And I will rebuke the devourer for your sakes, … (Malachi 3:8-11)

4 Let each of you look out not only for his own interests, but also for the interests of others. (Philippians 2:4)

6 But this I say: He who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully. 7 So let each one give as he purposes in his heart, not grudgingly or of necessity; for God loves a cheerful giver. 8 And God is able to make all grace abound toward you, that you, always having all sufficiency in all things, may have an abundance for every good work. 9 As it is written:

“He has dispersed abroad,
He has given to the poor;
His righteousness endures forever. (2 Corinthians 9:6-9)

Yes, we need to also consider helping others.

And all should heed the words of Jesus:

25 “Therefore I say to you, do not worry about your life, what you will eat or what you will drink; nor about your body, what you will put on. Is not life more than food and the body more than clothing? 26 Look at the birds of the air, for they neither sow nor reap nor gather into barns; yet your heavenly Father feeds them. Are you not of more value than they? 27 Which of you by worrying can add one cubit to his stature?

28 “So why do you worry about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin; 29 and yet I say to you that even Solomon in all his glory was not arrayed like one of these. 30 Now if God so clothes the grass of the field, which today is, and tomorrow is thrown into the oven, will He not much more clothe you, O you of little faith?

31 “Therefore do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ 32 For after all these things the Gentiles seek. For your heavenly Father knows that you need all these things. 33 But seek first the kingdom of God and His righteousness, and all these things shall be added to you. (Matthew 6:25-33)

4 “It is written, ‘Man shall not live by bread alone, but by every word that proceeds from the mouth of God.'” (Matthew 4:4)

Yes, we need to seek first the Kingdom of God. And the word of God says we should try not to be in debt, we should try to have savings, and we are to be givers.

All of these should be part of our preparations.

Do not let a report that inflation is cooling make you think that the USA is out of its economic woes–worse is coming.

As far as physical steps to consider, you can see our article: Physical Preparation Scriptures for Christians.

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This entry was posted on Wednesday, July 12th, 2023 at 3:00 pm and is filed under Other News.

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