China Raises Interest Rates, Again

Chinese Renminbi Yuan

China announced that it is again raising interest rates:

China Raises Interest Rates Again to Cool Inflation

By EDWARD WONG

Published: December 25, 2010

BEIJING — China’s central bank announced on Saturday that it was raising interest rates for the second time in about two months in what appears to be a long-term campaign to suppress inflation as many ordinary Chinese express discontent with rising consumer prices.

The People’s Bank of China said it would raise the one-year benchmark lending rate by 25 basis points to 5.81 percent, and the benchmark deposit rate by the same amount to 2.75 percent.

The Chinese economy has been awash in liquidity due to government stimulus money and generous lending by state banks. Chinese officials are now concerned about an overheated economy and the inflationary pressures that come with that. http://www.nytimes.com/2010/12/26/business/global/26chinarates.html?src=busln

Now while most people probably think that this is an internal Chinese matter as few Westerners own any Renminbi Yuan, when a major player on the world scene raises interest rates that puts pressure on the other major currencies to do so as well.

The bolded two sentences above should send chills to those who live in the USA. Compared to the USA, and on a per citizen basis, China has not spent very much money for its stimulus. Furthermore, the Chinese did not have to put their nation in serious debt to provide that stimulus.

China will have problems. Notice the following from LCG’s Dr. Meredith, that he wrote after visiting China:

Many publications have suggested that the 21st century will be “China’s century.” Even though the Chinese are fiercely moving forward, and their progress in developing their industries is obvious, these publications are dead wrong for two reasons. First, the inspired word of God describes specifically how a coming European Union will be the dominant force in this world—obviously within the next several years. Therefore, brethren, I would like to focus your mind on this matter so you can more intelligently “watch” world events along this line as they unfold before your very eyes. In the coming years, you will perhaps even see a revolt of the peasants in the outlying Chinese cities, who have lagged far behind the standard of living afforded those who have moved to Beijing and Shanghai. Plus, the tremendous pollution of the water, air and foodstuffs may bring about massive disease epidemics and other problems for the Chinese.

In addition, distracting wars and other events may— as God chooses to guide it—greatly undermine the material progress now being made by the Chinese. Meanwhile, you will soon see the European Union evolve into an absolutely powerful and dynamic force in the world— ultimately to become the “Beast” as revealed in Revelation 17 in your own Bible!

So the 21st century will not be the “Chinese century!” Rather it will appear to become the European century for a few years, until the magnificent return of Jesus Christ as King of kings and Lord of lords. From then on, the 21st century will be, indeed, “Christ’s century!” And all of us who are able to understand the “Big Picture” of world events from God’s point of view should be preparing to help straighten out the appalling degree of suffering, starvation and misconduct we find on this earth today in virtually every nation (Meredith R.C. An Inspiring and Successful Trip. Living Church News. May-June 2007, p. 21).

And even secular sources are starting to teach some of what Dr. Meredith did. Notice the following from 2010:

China will do anything to grow its economy, as the alternatives will lead to political unrest. A lot of peasants moved to the cities in search of higher-paying jobs during the go-go times. Because China lacks the social safety net of the developed world, unemployed people aren’t just inconvenienced by the loss of their jobs, they starve (this explains the high savings rate in China) and hungry people don’t complain, they riot. Once you look at what’s taking place in the Chinese economy through that lens, the decisions of its leaders start making sense, or at least become understandable. (Vitaliy N. Katsenelson. China: No Shortcut to Greatness. The Daily Reckoning, March 1, 2010)

So, China has to be careful. It is likely to have unrest, even though it is getting wealthier.

The USA on the other hand is getting poorer. It just does not know it. Civil unrest, including possible race riots, will happen in the USA.

I would also add that WHEN the USA has to increase interest rates, this will lead to a downward spiral, that while it likely will have some “ups”, while result in the USA being taken over and destroyed. The Bible warns about the indebted one getting taken over by its creditors at the appointed time of the end (cf. Habakkuk 2), and the USA is currently the greatest debtor nation in the history of the world. And after interest rates rise for the USA dollar, it will be worse in the USA than almost any economist will publicly admit.

Some articles of possibly related interest may include:

China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-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 the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-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 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?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies 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?
Prophecies of Barack Obama? Eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. This article includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article on this page on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”, based up an early 20th century writing.
Barack Obama in Islamic Prophecy? There is actually a 17th century Shiite prophecy that some believe that Barack Obama will fulfill that will lead to a rising up of Islam.