Fed’s Yellen wants to raise interest rates

Janet Yellen, Official Federal Reserve photo

The US Federal Reserve wants to further raise interest rates:

February 14, 2017

Fed Chair Janet Yellen said in prepared remarks that waiting too long to raise interest rates would be “unwise,” given the rise in inflation and economic growth.

“It was expected of her to be a little hawkish,” said Adam Sarhan, CEO of 50 Park Investments. “From her perspective, the stock market is at all-time highs and the economic data is improving, so it’s very prudent for her to be hawkish.” http://www.cnbc.com/2017/02/14/us-markets.html

February 14, 2017

Why did the dollar and Treasuries react as if stung moments after Yellen’s prepared remarks were released?

Because according to a cursory scan of her speech, she was more hawkish than most expected, arguably making a March rate hike “live” after warning that “as I noted on previous occasions, waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession.”

Further hawkishness emerged from her claim that “Incoming data suggest that labor market conditions continue to strengthen and inflation is moving up to 2 percent, consistent with the Committee’s expectations. At our upcoming meetings, the Committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.” http://www.zerohedge.com/news/2017-02-14/janet-yellens-humphrey-hawkins-testimony-3-rate-hikes-dont-audit-me-bro-live-feed

Here are some more of her written remarks, directly from her report dated February 14, 2017:

The Committee’s view that gradual increases in the federal funds rate will likely be appropriate reflects the expectation that the neutral federal funds rate–that is, the interest rate that is neither expansionary nor contractionary and that keeps the economy operating on an even keel–will rise somewhat over time. Current estimates of the neutral rate are well below pre-crisis levels–a phenomenon that may reflect slow productivity growth, subdued economic growth abroad, strong demand for safe longer-term assets, and other factors. The Committee anticipates that the depressing effect of these factors will diminish somewhat over time, raising the neutral funds rate, albeit to levels that are still low by historical standards. That said, the economic outlook is uncertain, and monetary policy is not on a preset course.

The US Federal Reserve has been excessively influencing interest rates to historical lows and this will not end well for the USA. Many believe that it intentionally did not raised them until after the November election in an attempt to assist in the election of Hillary Clinton.

Now, because interest rates have been artificially low because of actions by the US Federal Reserve, raising interest rates is logical.

But because the USA accumulated more debt than it ever should have, this puts the USA at major risk when interest rates rise.

Donald Trump raised concerns about interest rates rising himself:

Donald Trump has voiced concerns about interest rates rising in the USA:

If interest rates go up one percent, that’s devastating. What happens if that interest rate goes up 2, 3, 4 points? We don’t have a country. (Egan M. Donald Trump: ‘I’m the king of debt.’ CNN, May 7, 2016)

The rates Donald Trump is concerned about are not outrageously high. And the Federal Reserve announced after the election that it plans to raise a total of one percent, which Donald Trump says will be “devastating.” Today’s written comments from Janet Yellen are a conformation that the Fed does plan to do what it said–post-election.

The USA is walking a dangerous line on its debt that will not end well.

In December, I wrote:

Yes, the USA will again get high inflation. (Thiel B. The US Federal Reserve meets and raises interest rates. COGwriter, December 14, 2016)

Notice something in the news today:

February 14, 2017

WASHINGTON (MarketWatch)—Inflation at the U.S. wholesale level posted the biggest increase in January since 2012, propelled by rising gasoline prices.

The Producer Price Index jumped 0.6% in January, the government said Tuesday, marking the largest advance since the fall of 2012. Economists polled by MarketWatch had predicted a 0.3% gain. http://www.marketwatch.com/story/ppi-shows-biggest-gain-in-wholesale-inflation-since-2012-2017-02-14

Inflation has risen some. Yet, the time will come when the USA will face massive inflation and problems worse than high inflation.

While Donald Trump did not accumulate the approximately $20 trillion in USA debt, that debt exists before his presidency even starts–and he will likely increase the debt.

Notice a statement from Donald Trump about debt:

I’m the king of debt. I love debt. (Egan M. Donald Trump: ‘I’m the king of debt.’ CNN, May 7, 2016)

The Bible does not share President Trump’s pro-debt views (cf. Deuteronomy 28:43-44).

If interest rates rise to ‘normal’ historical levels of say 6-12%, the amount that the USA will pay in interest on its debt will exceed all its revenues from taxes.

Meaning that everything else that the Federal government will spend will have to be borrowed, which will increase the debt and increase the amount of interest it will have to pay.

This will cause a vicious circle that will one day end in the destruction of the USA.

The Bible teaches that debt accumulation will be far worse than even many pessimists believe. Here is an end-time prophecy given to the prophet Habakkuk by God over 2600 years ago:

2 And the Lord answered me:

“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay.

4 “Behold, his soul is puffed up; it is not upright within him,
but the righteous shall live by his faith.

5 “Moreover, wine is a traitor,
an arrogant man who is never at rest.
His greed is as wide as Sheol;
like death he has never enough.
He gathers for himself all nations
and collects as his own all peoples.”

6 Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,

“Woe to him who heaps up what is not his own—
for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them. (Habakkuk 2:2-8; English Standard Version)

The USA is the most indebted nation in the history of humanity and those in it should try to understand this prophecy. Perhaps it should be noted that when I checked last week, the United Kingdom was listed as having the second highest amount of total debt (about 1/2 that of the USA).

The Anglo-American world order will come to an end. Accumulation of debt, and then having to pay historically ‘normal’ interest rates will strain the national economies of the USA and UK more than almost anyone will believe.

Those who think the current world order with the USA’s dollar on top will last through the end of this century are in error.

Those who will believe the Bible will take the words that God spoke to the prophet Habakkuk seriously.

Several actions that the US Federal Reserve has taken during the time of the Obama Administration (as well as various actions in its past) have been biblically inappropriate (Isaiah 1:22; Habakkuk 2:6) and will contribute to the economic and military end of the USA (Habakkuk 2:2-8; Daniel 11:39; watch also Do these 7 prophesies point to the end of the USA?).

While the Federal Reserve should have raised interest rates long ago, the actions and inactions by Congress and the Obama Administration, combined with the old ‘quantitative easing’ programs by the Fed, have put the USA in a position that is more dnagerous than the pundits realize.

Although he possibly could extend the prosperity of the USA (cf. Daniel 4:27), Donald Trump will not solve this.

Some items of possibly related interest include the following:

America’s Day of Reckoning 2017 Dollar Collapse? Economist James Dale Davidson says that a financial bloodbath will hit the USA and there is nothing that Washington can do to stop it. He claims that at least 57 nations have gotten together to dethrone the US dollar as the world’s reserve currency. He claims this can happen any day or in a few months. He mentions China, Russia, the AIIB, and gold. He claims his track record in predicting massive shifts in the past should assure people that he is right about this. He claims that there will be massive unemployment, near elimination of social security benefits, and more. Is James Dale Davidson possibly right on any of this? Dr. Thiel goes over many of his claims and explains what the Bible shows related to the coming collapse of the US dollar. This is a video.
Can the Bilderberg Group Affect 2017 and Beyond? The infamous Bilderberg Group met in Dresden, Germany from June 9-12 in 2016. This super-secretive group has been meeting since 1954 and has admitted to some subjects it would cover, but blocked out cell phone reception and forbid coverage of the discussions by the media. This is considered THE meeting to be part of for the elites who are working for a global-type of government. It is by invitation only. They are working towards their version of the New World Order as opposed to the good news of the Kingdom of God. At least one top leader apparently attended to try to get the Bilderberg Group’s support for a bid to become the next Secretary-General of the United Nations to replace Ban ki-Moon, whose term ends 31 December 2016. This is a video.
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.
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 Barack Obama and the State of the Apocalypse.
Will the Anglo-Saxon 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?
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. A related sermon is titled: Do these 7 prophesies point to the end of the USA?
When Will the Great Tribulation Begin? 2016, 2017, or 2018? 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 comenzar la Gran Tribulación en 2016 o 2017? ¿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 video is: Can the Great Tribulation Start in 2016?
Protestant and Church of God views of the United States in Bible Prophecy Is the USA mentioned in Bible prophecy? Some Protestants say yes, while others say no. What does the Bible really teach? Learn the truth about this. There is also a video available: Is The United States Mentioned In Bible Prophecy?
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.
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?
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? Here is a link to a video titled: The Future King of the North.
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.
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? Could a Donald Trump presidency be apocalyptic? A related video is titled: 13 Ways President-Elect Trump is Apocalyptic.
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
When Will the Great Tribulation Begin? 2017, 2018, or 2019? 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 comenzar la Gran Tribulación en 2016 o 2017? ¿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 video is: Will the Great Tribulation Start in 2017?