Fed raises interest rates to cause ‘economic depression’? ECB also raises rates–European banking crisis at risk?
The US Federal Reserve raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.00%-5.25% range, the highest level in 16 years, but signaled it may pause further increases https://t.co/pGrE8yZrc7 pic.twitter.com/smCcPad6jE
— Reuters (@Reuters) May 4, 2023
Americans are concerned about banking safety:
May 4, 2023
WASHINGTON, D.C. — Amid turbulence in the U.S. banking system, nearly half of Americans are anxious about the safety of the money they have in accounts at banks or other financial institutions. A total of 48% of U.S. adults say they are concerned about their money, including 19% who are “very” and 29% who are “moderately” worried. At the same time, 30% are “not too worried” and 20% are “not worried at all.”
These findings are from a Gallup poll conducted April 3-25, the month after Silicon Valley Bank and Signature Bank collapsed. News about the failure of a third bank — First Republic — came after the poll was completed. Most bank failures in the U.S. over the past two decades have been linked to the 2008 financial crisis, which was the last time Gallup gauged Americans’ level of worry about their money held in banks or other financial institutions.
The latest readings are similar to those in 2008. https://news.gallup.com/poll/505439/half-worry-money-safety-banks.aspx
Higher interest rates have been cited for reasons for recent bank failure. But, the US Federal Reserve again has raised interest rates. Some think that the Fed may have lost control:
What If The Fed Has Lost Control?
May 4, 2023
The US economy and its financial system operate under the implicit belief that the Federal Reserve controls the direction of the economy and finance. This belief isn’t in Fed influence, it’s in Fed control: …
Every new Fed policy extreme generates second order effects which unleash unintended consequences. The prime example is moral hazard, the belief that risk can be taken on to boost speculative gains without suffering any consequences of that risk blowing up. …
What if the Fed cannot reverse the doom-loop of second order effects its previous policy extremes have generated? These outcomes don’t seem farfetched to anyone who studies systems dynamics. Rather, they seem inevitable and predictable.
What if the Fed has already lost control but nobody dares question the confidence in Fed omnipotence? https://www.zerohedge.com/markets/what-if-fed-has-lost-control
Well, three “unintended consequences” of its interest rate rises have been some significant bank failures, major rises in what the US government has to pay for debt (and this one day will be a factor in the destruction of the US, cf. Habakkuk 2:6-8), and the Europeans blaming the US for damaging their economy (which will be a factor in the King of the North/Beast destroying the US which will happen per Daniel 11:39).
Michael Snyder has criticized the latest interest rate moves by the Fed:
Is The Federal Reserve Trying To Cause An Economic Depression?
They actually did it. Even though banks are collapsing, the commercial real estate market is imploding, home sales are plunging, and large companies are laying off workers all over America, the Federal Reserve just decided to raise interest rates even higher. This is nothing less than economic malpractice. They know that higher rates are crushing the economy, but they apparently believe that more pain is needed. Officials at the Fed just hiked rates another 25 basis points, and they are now the highest that they have been since August 2007…
When the Fed raised rates that high in 2007, it didn’t exactly work out so well, did it?
The next year we plunged into the worst economic downturn since the Great Depression.
Now a new economic crisis has begun, and even CNN is admitting that higher rates will make things even worse…
In particular, higher rates will put even more pressure on hundreds of banks that are already teetering on the brink of insolvency. …
It is a bloodbath, and they just made things even worse.
And it isn’t just us. Economic activity is rapidly slowing down all over the world, and officials at the Fed have chosen this moment to sabotage the central hub of the entire global economy.
If we plunge into an economic depression, the entire planet will feel the pain. 05/03/23 http://theeconomiccollapseblog.com/is-the-federal-reserve-trying-to-cause-an-economic-depression/
The European Central Bank (ECB) has now also had to increase interest rates:
As expected (and fully priced-in), The ECB slowed its pace of rate-hikes, matching The Fed’s 25bps move yesterday, taking the key rate to 3.25%, after its preferred inflation measure eased for the first time in 10 months. https://www.zerohedge.com/markets/ecb-hikes-rates-25bps-expected-warns-inflation-continues-be-too-high
Last year, the Europeans blamed the US for forcing them to raise rates. They are not pleased that they have felt pressured to do this today.
European banks are also at risk:
Europe Cannot Afford To Be Complacent About European Banks
May 4, 2023
Europe — with the exception of Switzerland — has had a good banking crisis so far, with no domestic stress. This is not an accident: the EU has done a better job of regulating and supervising its banks than the US. But it would nonetheless be wildly imprudent to assume that some variant of what happened in the US could not happen in Europe.
This means that the European Central Bank — whose rate-setters meet on Thursday — must proceed carefully with its remaining rate rises and it should be a wake-up call to complete banking union.
European banks, like US ones, face large unrealised losses on assets acquired during the period of ultra-low interest rates that fell in value when interest rates shot up. …
EU governments, meanwhile, should view the US stress as cause to get serious about finishing the banking union before — not after — they too face a bank crisis. https://www.zerohedge.com/markets/europe-cannot-afford-be-complacent-about-european-banks
Like the USA, the ECB has been printing money out of thin air. Unlike the USA, it has done less of it. However, unlike the USA dollar, the euro does not have as much international acceptance. That is a key difference that can hurt the Europeans.
As mentioned, the Europeans blame the USA for putting them in a position to have to raise interest rates. Basically, because the USA keeps raising its interest rates, the Europeans feel that they must do so also or face too much capital outflow.
As far as Europe facing a banking crisis, notice something the late Pastor General of the old Worldwide Church of God, Herbert W. Armstrong, said in a sermon on July 7, 1984:
And I can see now, the event that is going to trigger the formation of the reunification in Europe; the resurrection of the medieval Holy Roman Empire that we’ve been looking forward to that is prophesied to come…
But I believe that some event is going to happen suddenly just like out a blue sky that is going to shock the whole world and is going to cause the nations in Europe to realize they must unite! … Well now I think I can see what may be the very event that is going to trigger…that is the economic situation in the world…
The whole banking structure in the United States is a network all jointed together. But not only that, one nation has to deal with other nations and imports and exports. And so they have to have a means of transforming money from one nation to another. And so the banking structure is international and interwoven…
Now when the financial structure breaks down, all civilization is going to break down…
So, an economic or banking crisis is what Herbert W. Armstrong concluded would drive Europe to unite.
And, I agree that it will take some type of crisis for Europe to reorganize.
The Bible shows that a major reorganization is prophesied to happen and push Europe under totalitarian control:
12 “The ten horns which you saw are ten kings who have received no kingdom as yet, but they receive authority for one hour as kings with the beast. 13 These are of one mind, and they will give their power and authority to the beast. (Revelation 17:12-13)
Economic issues will be one of the factors that will get Europe to decide to reorganize and support a dictator that the Bible calls the Beast.
Rising interest rates, combined with massive US debt, it setting the stage for a spiral that one day the US will not recover from.
The stage is more and more being set.
Some items of possibly related interest may include:
Might the U.S.A. Be Gone by 2028? Could the USA be gone by the end of 2028 or earlier? 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?
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?
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? 2031 or ? 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?
Might the U.S.A. Be Gone by 2028? Could the USA be gone by the end of 2028 or earlier? 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?
When Will the Great Tribulation Begin? 2023, 2024, or 2025? 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? A related video is: Great Tribulation: 2026 or 2027? A shorter video is: Can the Great Tribulation start in 2022 or 2023? Notice also: Can Jesus return in 2023 or 2024? Here is a video in the Spanish language: Es El 2021 el año de La Gran Tribulación o el Grande Reseteo Financiero.
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 and silver? Two videos of related interest may be: Germany, Gold, and the US Dollar and Silver, Science, and Scripture.
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
 |
Tweet |
|