‘Inflation In 2021 Far Different From What We Had In 1979’
(AdvancingTime Blog)
Bruce Wilds posted the following:
Inflation In 2021 Far Different From What We Had In 1979
The inflation of today is a starkly different creature than what we faced in 1979. The world is massively different and presenting us with a strain of inflation that will most likely be stronger and more difficult to combat without major disruptions to our economy. …
New data released by the Bureau of Labor Statistics showed price inflation in November rose to the highest in forty years. Allianz Chief Economic Advisor Mohamed El-Erian warned the Federal Reserve is losing credibility by not tapering its balance sheet to rein in inflation. Appearing on CBS’ “Face the Nation” he stated the most significant miscalculation in decades is the Fed’s inability to characterize inflation correctly. It was only on November 30th that Fed Chair Jerome Powell finally retired the term “transitory” and opted to label inflation as persistent.
President Biden responded to rising inflation has been to call upon Congress to pass his Build Back Better plan. Biden claims this will lower how much families pay for health care, prescription drugs, child care, and more.” In reality, of course, the passage of BBB would increase inflationary pressure throughout the economy and only transfer these soaring costs from the individual to the government.
The idea the economy of 2021 is strong enough to allow a rapid and huge surge in interest rates such as those imposed upon America in 1981 is false. During America’s prior bout with inflation 40 years ago the economy was able to withstand the shock. Yes, we did have a recession, but it was short-lived because the foundation of our economy was much stronger. America was not bleeding from huge trade deficits and people had real jobs.
Today, after years of trade deficits, America’s economic foundation has grown much weaker. We have created the illusion of economic growth by blowing the lid off government spending. This has created a false economy and should not be confused with real growth. …
The cause of inflation during the 1970s is blamed on several events specific to that time in our history. Part of it was due to rising oil prices (oil prices tripled in the 1970s). There was also inflation due to rising wages. Unions were relatively powerful and their bargaining for higher wages to keep up with the rising cost of living created a wage-inflationary spiral. Yous should also throw in spending on the Vietnam War and Nixon cutting the tie of the dollar to gold. The result was an inflationary mindset that exploded as investors and waves of people started investing in ways that would protect them from being ravished by a falling dollar.
Fast forward to the end of 2021. Today, many people are busy blaming the recent inflation on supply chain disruptions resulting from the global pandemic. In truth, much more focus should be turned to the surge in money supply, government spending, and Fed policies. …
Now that inflation has taken hold how to stop it will be the real test. This calls for a bunch of clumsy idiots to thread an economic needle. …
As for the Fed, it has become “the great enabler” by allowing this to go on for so long. Many economic watchers have come to the conclusion the Fed has totally lost control of the situation. The big question is whether it will taper and risk a major recession or keep pumping out money. Continuing down its current path is viewed as a recipe that will allow inflation to run rampant.
Going forward other calamities and crises await society, these will also affect inflation. Whether they come in the form of energy shortages, food shortages, or devastation caused by war, each will leave its mark. While creating the illusion this time is different has allowed those in charge to postpone facing serious questions only time will tell. It is clear the currency is being debased, 12/23/21 https://brucewilds.blogspot.com/2021/12/inflation-in-2021-far-different-from.html
Yes, the currency, meaning the US dollar, is being debased.
And while the Federal Reserve has not necessarily “totally lost control of the situation,” it cannot do what it did from 1979-1982.
Which was?
Dramatically raise interest rates.
Back in 1982, my wife and I looked at buying our first house.
The Veteran’s Administration interest rate to do so, which was lower than the ‘conventional rate,’ was 17.75%.
Yes, 17.75%.
Well, we could not afford that and waited before buying a house.
If the US government had to pay something like that rate on its current official debt, the interest payment would be over $5 trillion per year.
The US brings in nearly $4 trillion in revenues.
So, just the interest, and nothing else, would be more than the US government brings in all taxes, etc.
That is not sustainable.
And would be disastrous.
That is part of why the US Federal Reserve cannot do now what it did decades ago.
Might we see more inflation in 2022?
Yes.
Government policies blamed on COVID-19 and other debt plans have been factors. Now see the following warning:
Inflation & Implosion – Hyperinflation in 2022 – John Williams
Economist John Williams, founder of ShadowStats.com, says the Federal Reserve has painted itself into such a tight corner with the economy it really has only two choices. Williams says it comes down to “Inflation or Implosion.” What would happen to the financial system if the Fed stopped printing massive amounts of money for stimulus and debt service? Williams explains, “You could see financial implosion by preventing liquidity being put into the system. The system needs liquidity (freshly created dollars) to function. Without that liquidity, you would see more of an economic implosion than you have already seen. In fact, I will contend that the headline pandemic numbers have actually been a lot worse than they have been reporting. It also means we are not recovering quite as quickly. The Fed needs to keep the banking system afloat. They want to keep the economy afloat. All that requires a tremendous influx of liquidity in these difficult times.”
So, is the choice inflation or implosion? Williams says, “That’s the choice, and I think we are going to have a combination of both of them. I think we are eventually headed into a hyperinflationary economic collapse. It’s not that we haven’t been in an economic collapse already, we are coming back some now. . . . The Fed has been creating money at a pace that has never been seen before. You are basically up 75% (in money creation) year over year. This is unprecedented. Normally, it might be up 1% or 2% year over year. The exploding money supply will lead to inflation. I am not saying we are going to get to 75% inflation—yet, but you are getting up to the 4% or 5% range, and you are soon going to be seeing 10% range year over year. . . . The Fed has lost control of inflation.”
And remember, when the Fed has to admit the official inflation rate is 10%, John Williams says, “When they have to admit the inflation rate is 10%, my number is going to be up to around 15% or higher. My number rides on top of their number.”
Right now, the Shadowstat.com inflation rate is above 11%. That’s if it were calculated the way it was before 1980 when the government started using accounting gimmicks to make inflation look less than it really is. The Shadowstats.com number cuts out all the accounting gimmicks and is the true inflation rate that most Americans are seeing right now, not the “official” 4.25% recently reported. 05/22/21 https://usawatchdog.com/inflation-implosion-hyperinflation-in-2022-john-williams/
Yes, the way that inflation has been officially reported has understated what has been happening.
More inflation is coming–and with potentially devastating consequences.
Here is something from my 2021 book, Biden-Harris: Prophecies and Destruction:
Joe Biden will have to deal with the fact that the U.S.A. is the most indebted nation in the history of humanity. Plus, he has pledged increasing it further [The Biden Emergency Action Plan to Save the Economy. JoeBiden.com, accessed 12/16/20].
Debt is a prophesied problem (cf. Habakkuk 2:6-8). But many in the media as well as politically-inclined economists do not see it that way—but that is too short sighted (cf. Ecclesiastes 8:11).
The time will come when the U.S.A. government will no longer be able to borrow at low interest rates and/or it will create more money electronically and/or via the printing press to try to continue.
Make no mistake about it — massive inflation is coming.
The U.S.A. dollar will ultimately crash and be worthless. That “pride” of American power will be broken (cf. Leviticus 26:19).
A Biden-Harris Administration has asserted it will take debt raising steps. …
The Economy
While pushing biblically immoral ideas is bad for the economy, it should be noted that economies vary. A modern reality is that being the world’s de facto reserve currency has helped prolong the U.S.A.’s dominance.
When the U.S. dollar is no longer the world’s reserve currency, this will hurt the U.S.A. financially. Increasing debt, including “quantitative easing,” is a form of dishonest profits that is not something that God approves of and will punish the U.S.A. for (cf. Ezekiel 22:13-16).
Inflation will eventually hit the U.S.A. extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the U.S.A. Eventually, but not yet, the U.S.A. dollar will become worthless (worth no more than the scrap or sentimental value of the cotton-paper it is printed on).
Will it always be straight downhill for the economy of the U.S.A.?
No.
There are some reasons to have some temporary optimism. The longer there is some economic stagnation in parts of the economy that governmental COVID-19 policies contributed to, the more demand tends to build up, and an increase in demand may prolong the economy. In addition, technological and other developments may temporarily support the U.S. economy—as can reductions of regulatory burdens.
Some policies of the Biden-Harris Administration may help. Others see problems. The Biden-Harris team looks to increase various regulations and impact some industries negatively (such as the fossil fuel industry). Various ones see their proposed policies and cabinet selections as a refreshing change that they hope will fuel economic growth and shared prosperity.
Notice what was told to a king whose was prophesied to lose his kingdom:
27 Therefore, O king, let my advice be acceptable to you; break off your sins by being righteous, and your iniquities by showing mercy to the poor. Perhaps there may be a lengthening of your prosperity. (cf. Daniel 4:27)
Repentance can prolong prosperity, but promotion of sin leads to destruction. But, it is not expected that Joe Biden or Kamala Harris will push for scriptural national repentance. (Thiel B. Biden-Harris: Prophecies and Destruction. Nazarene Books, 2021)
The history of the US government increasing debt, which it has accelerated because of policies related to COVID-19, is setting the stage for more inflation.
The media and the populous will demand more ‘stimulus’ –which means more debt.
Republicans and Democrats will push for it and Congress will go for it. And the President of the United States will sign one or more bills for it.
Sadly, many in the media and government act like printing up money is really the solution for the US economy because of the effects of COVID-19 policies.
But there is a real risk of massive inflation.
This debasing of the value of currency (called “dross” anciently), which is what the USA has been doing with its debt and quantitative easing policies, 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, many 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.
Many of the Gentile nations of the world see some of this.
Printing more US dollars and contributing to hyperinflation is not going to solve the debt problems of the USA. A similar approach has not worked for Zimbabwe, which has been doing this on and off for some time.
The USA, because of the role of its dollar as the world’s primary reserve currency, can look to get away with this for longer than other nations, but the end result will be much worse than most think.
Eventually, interest on the acknowledged debt will rise and become a viscous circle that will spiral to the death of the US dollar.
The truth is that the USA is setting itself up for massive inflation, as well as food shortages. Recently, we uploaded the following video:
Food Inflation & the 3rd Horseman of the Apocalypse
The Wall Street Journal, Reuters, UN’s FAO, and others are reporting food price inflation as well as often selected shortages of some food items. Might it get worse? Did Jesus prophesy famines? One analyst stated, “WE haven’t seen anything yet” in regards to rising food prices. Should Christians prepare? What about helping others? Does the ride of the third horseman of the Apocalypse (Revelation 6:5-6) point to a coming time of severe food inflation. Is more food price inflation coming? Dr. Thiel addresses these issues and more in this video.
Here is a link to the video: Food Inflation & the 3rd Horseman of the Apocalypse.
Hyperinflation will hit the USA.
And while we are NOT there yet, its results, including increasing USA debt, will be worse than almost anyone realizes (cf. Habakkuk 2:6-8).
National repentance is needed, but is not expected (Hosea 11:3a, 5b-7)–but you can repent if you respond to God’s calling.
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?
Four Horsemen of the Apocalypse What do each of the four horseman of the Apocalypse represent? Have they began their ride? Did Jesus discuss the any of this? Might their rides coincide with the “beginning of sorrows? Do they start their ride prior to the Great Tribulation? Did Nostradamus or any other ‘private prophets’ write predictions that may mislead people so that they may not understand the truth of one or more of the four horseman? There is also a related YouTube video titled Sorrows and the Four Horsemen of the Apocalypse.
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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. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
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