‘Fighting inflation… with price controls. It’s genius!’

The USA, like some other nations, is looking at some price controls.

Historically, this almost always leads to shortages.

Notice the following:

Fighting inflation… with price controls. It’s genius!

May 19, 2022

One of the most repeated lessons we see over and over again throughout human history is that bumbling politicians almost invariably try to ‘fix’ inflation with price controls.

Emperor Diocletian famously imposed strict price controls across the Roman Empire in 301 AD to fight off inflation that had resulted from a massive debasement of the Roman currency.

Naturally, Diocletian’s price controls weren’t successful. They’re never successful. But that dismal record of failure hasn’t stopped politicians from thinking that they can do it better.

From Hammurabi to modern day Argentina, from ancient Egypt to Richard Nixon (who “ordered a freeze on all wages and prices in the United States” in 1971), price controls have literally never worked, ever.

But I’m suuuuuuure Elizabeth Warren’s price controls will succeed.

US Senator Elizabeth Warren doesn’t think inflation was caused by government edicts shutting down the economy, massive money printing to pay for deficit spending, or handing out free money while supply chains were restrained.

Last Thanksgiving she blamed “big poultry” and “greedy corporations” for “charging Americans extra just to keep their stock prices high.”

And now Warren is at it again, telling her Twitter followers, “The prices Americans are paying for groceries and other essentials are at all-time highs. One of the reasons? Giant corporations are price gouging & reaping record profits.”

To solve the problem, she recently introduced a bill to make it illegal for businesses to set an “unconscionably excessive price during an exceptional market shock.” https://www.zerohedge.com/news/2022-05-19/fighting-inflation-price-controls-its-genius

Many politicians either do not truly understand economics or chose to ignore economic realities to promote aspects of their agendas.

Sadly, also, many economic pundits and leaders tend to be political hacks who are either deceived in pushing ideas that will not work or do so knowingly.

The Apostle Paul warned:

13 But evil men and impostors will grow worse and worse, deceiving and being deceived. (2 Timothy 3:13)

Price controls are a deception as they inevitably lead to shortages. Stagflation and inflation also tend to follow price controls.

Price controls are a burden on the financial systems.

The massive ancient Roman Empire and its financial system collapsed.

Could the same happen to the USA?

Consider the following:

Roman Debasement

The major silver coin used during the first 220 years of the empire was the denarius.

This coin, between the size of a modern nickel and dime, was worth approximately a day’s wages for a skilled laborer or craftsman. During the first days of the Empire, these coins were of high purity, holding about 4.5 grams of pure silver.

However, with a finite supply of silver and gold entering the empire, Roman spending was limited by the amount of denarii that could be minted.

This made financing the pet-projects of emperors challenging. How was the newest war, thermae, palace, or circus to be paid for?

Roman officials found a way to work around this. By decreasing the purity of their coinage, they were able to make more “silver” coins with the same face value. With more coins in circulation, the government could spend more. And so, the content of silver dropped over the years.

By the time of Marcus Aurelius, the denarius was only about 75% silver. Caracalla tried a different method of debasement. He introduced the “double denarius”, which was worth 2x the denarius in face value. However, it had only the weight of 1.5 denarii. By the time of Gallienus, the coins had barely 5% silver. Each coin was a bronze core with a thin coating of silver. The shine quickly wore off to reveal the poor quality underneath.

The Consequences

The real effects of debasement took time to materialize.

Adding more coins of poorer quality into circulation did not help increase prosperity – it just transferred wealth away from the people, and it meant that more coins were needed to pay for goods and services.

At times, there was runaway inflation in the empire. For example, soldiers demanded far higher wages as the quality of coins diminished.

“Nobody should have any money but I, so that I may bestow it upon the soldiers.” – Caracalla, who raised soldiers pay by 50% near 210 AD.

By 265 AD, when there was only 0.5% silver left in a denarius, prices skyrocketed 1,000% across the Roman Empire.

Only barbarian mercenaries were to be paid in gold.

The Effects

With soaring logistical and admin costs and no precious metals left to plunder from enemies, the Romans levied more and more taxes against the people to sustain the Empire.

Hyperinflation, soaring taxes, and worthless money created a trifecta that dissolved much of Rome’s trade.

The economy was paralyzed.

By the end of the 3rd century, any trade that was left was mostly local, using inefficient barter methods instead of any meaningful medium of exchange.

The Collapse

During the crisis of the 3rd century (235-284 A.D), there may have been more than 50 emperors. Most of these were murdered, assassinated, or killed in battle.

The empire was in a free-for-all, and it split into three separate states.

Constant civil wars meant the Empire’s borders were vulnerable. Trade networks were disintegrated and such activities became too dangerous.

Barbarian invasions came in from every direction. Plague was rampant.

And so the Western Roman Empire would cease to exist by 476 A.D. http://www.zerohedge.com/news/2017-01-02/currency-collapse-roman-empire

Similar to ancient Rome, the USA has created money out of thin air (which its debt as well as previous ‘quantitative easing’ programs have done) in order to create jobs, pay back political favors, and deal with government COVID-caused issues.

Russia and China (and others) are working to topple the dominance of the US dollar as the world’s reserve currency. The US dollar is actually backed by NOTHING, but because oil producers mainly price oil in dollars, this has given the appearance of the US dollar being backed. This of course, is make believe, as at some point oil producers could change this. And Russia, China, Iran, Venezuela, and others are working to not price oil in US dollars–even Saudi Arabia is starting to cooperate that way.

And then there is the problem of debt. As I have reported here repeatedly, the US is the most indebted nation of all time. While many political leaders act like this can go on indefinitely, that is simply not true.

The US dollar used to be backed by gold and silver. Yet now, because the US dollar is not truly backed by anything tangible, the excess production of US dollars via debt/quantitative easing dilutes the value. This is a modern form of ‘dross’ (a coin that is worth less than it appears because it is not pure silver or gold despite its outward appearance).

As far as currency debasement of ‘hard money’ goes, starting in 1965 the USA started to remove silver from its then silver coins and replace it with cheaper metals. That has been done by others in the past.

Diocletian Antoninianus (Photo by Sosius11)

Governments have devalued their currencies by making their coins ‘dross’ and this has led to various problems throughout history. Related to the Romans, Wikipedia noted:

The Antoninianus was a coin used during the Roman Empire thought to have been valued at 2 denarii. It was initially silver, but was slowly debased to bronze. The coin was introduced by Caracalla in early 215 …

But even at its introduction the silver content was only equal to 1.5 denarii. This helped create inflation – people rapidly hoarded the denarii, while both buyers and sellers recognised the new coin had a lower intrinsic value and elevated their prices to compensate. Silver bullion supplies were running short since the Roman Empire was no longer conquering new territory, the Iberian silver mines were exhausted and a series of soldier emperors and usurpers needed coin to pay their troops and buy their loyalty. So each new issue of the antoninianus had less silver in it than the last, and each contributed to ever increasing inflation.

In other words, it was a ‘dross’ coin. The USA continues to try to cheapen its remaining coins as well. Its production of debt is another massive form of dross.

This diluting of the value of coinage/currency 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. Economic problems in Europe may well propel the rise of the Beast power that the Bible warns about.

The USA has repeatedly proven that economic pressures result in its increasing of its debt. This has worked for a while, but the time will come when it will end in disaster. And it WILL NOT take as long as it took the old Roman Empire to collapse!

Around 605-625 B.C. Habakkuk wrote a short book of the Bible that has a lot of implications for the time that we are now in. Notice something that God said in it:

5 “Look among the nations and watch — Be utterly astounded! For I will work a work in your days Which you would not believe, though it were told you. (Habakkuk 1:5).

Many, including a COG I was once part of, claim that Habakkuk was prophesying only something for the past that has already been fulfilled. And if you only look at verse 5 of chapter 1 that looks reasonable. Yet, notice that the above is also repeated in the New Testament:

40 Beware therefore, lest what has been spoken in the prophets come upon you:

41 ‘Behold, you despisers,
Marvel and perish!
For I work a work in your days,
A work which you will by no means believe,
Though one were to declare it to you.'” (Acts 13:40-41)

So, there is certainly a duality in some of what Habakkuk wrote. (More on the work for these times can be found in the articles Preparing for the ‘Short Work’ and The Famine of the Word and The Final Phase of the Work.)

There was something for Habakkuk’s time and something for a later time.

Getting back to Habakkuk, here is some of the shocking things God had him write down specifically related to the end times:

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. Though it tarries, wait for it; Because it will surely come, It will not tarry. ( Habakkuk 2:2-3)

So what did Habakkuk see in this vision that is so bad people should run/flee who read it?

Notice that the prophecy that is being discussed is specifically for the appointed time of the end. It is a prophecy for our time–and will affect the proud. What will happen is so bad “That he may run who reads it.” What is so bad? Habakkuk continues with the following:

4 “Behold the proud, His soul is not upright in him; But the just shall live by his faith.
5 “Indeed, because he transgresses by wine, He is a proud man, And he does not stay at home. Because he enlarges his desire as hell, And he is like death, and cannot be satisfied, He gathers to himself all nations And heaps up for himself all peoples. 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, Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:4-8)

Actually, with an admitted debt of over $30 trillion dollars and plans by President Joe Biden to increase that much further, the USA has increased pledges more than any nation in the history of the planet. And on a per capita basis, the United Kingdom is one of the most indebted nations on the earth itself.

Since the prophecy in Habakkuk 2 will be fulfilled at the time of the end (cf. “The message was true, but the appointed time was long…in the latter days, for the vision refers to many days yet to come”, Daniel 10:1,14). Daniel 8:19, 11:27,29,35 uses the same Hebrew term for “appointed time” as Habakkuk 2:3, while Daniel 10, using a different term, ties the latter days to the time in Daniel 8:19. Habakkuk 2 was not fulfilled in its entirety anciently. Also, it makes little sense that Habakkuk would be directed towards the modern nation of Israel as it does not have enemy creditors. It must be a nation or group of nations with some prominence at the appointed time of the end. As far as “violence of the land” as a contributing factor, this would seem to include crime, military missions, and perhaps riots/civil unrest, but might it also include promotion of violent sports?

I, personally, have taught the end time risks of Habakkuk 2 longer than any living COG leader that I am aware of. And the only Church of God group that I am aware of that has been boldly teaching about this warning in Habakkuk 2 for years is the Continuing Church of God. The end time applicability of Habakkuk 2 was even in the first edition–January-March 2013–of our Bible News Prophecy magazine; and the headline shown on the front cover was “Habakkuk’s Warning is for Us Today.”

The Laodicean groups that I am aware of are NOT teaching this. We in the Continuing Church of God expect to tell people WHEN it is time for the Philadelphians to flee. Jesus specifically told the Laodiceans, in a prophecy, that they needed to repent (Revelation 3:19) or face consequences (Revelation 3:14-19, and that they would be rewarded for repenting (Revelation 3:20). The Laodiceans are Church of God Christians “who keep the commandments of God and have the testimony of Jesus Christ” (Revelation 12:17).

The time will come when the economy of the USA will be totally devastated and those who ignore Habakkuk’s warning will suffer because of it! The time will come when people will NOT value ‘make believe money.’

It happened to Rome.

Does the USA have any hope?

Yes, national repentance:

14 if My people who are called by My name will humble themselves, and pray and seek My face, and turn from their wicked ways, then I will hear from heaven, and will forgive their sin and heal their land (2 Chronicles 7:14)

But at this stage, that does not seem to be likely.

The Bible points out that the descendants of Jacob and Joseph are God’s people (Psalm 77:15; see also Anglo – America in Prophecy & the Lost Tribes of Israel). But, instead of repenting, the USA has been pushing a pro-homosexual, pro-abortion, pro-violence, and pro-debt message. The shock that will come to the USA and the rest of the world (Revelation 13:4) will not just be the end of the USA’s financial dominance, but the end of it militarily (Daniel 11:39).

Hosea prophesied that because the Israelites rejected God’s instruction, “the Assyrian shall be his king, because they refused to repent” (Hosea 11:1–5). The final time of the Gentiles is getting nearer (see also When Will the Great Tribulation Begin? 2016, 2017, or 2018?).

While the Bible shows that Assyrian Europe will also eventually be punished for what it will do to the USA (e.g. Isaiah 10:12), the Bible shows that the USA will be punished first (Isaiah 10:5-11; see also Anglo – America in Prophecy & the Lost Tribes of Israel).

The solution to the problems in the USA is not investments in the dollar of the USA–which will one day fail–but the coming Kingdom of God. Notice what Jesus taught:

19 “Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; 20 but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also. (Matthew 6:19-21)

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 6:31-33)

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.