Federal Reserve votes to raise interest rates; M&M discounts idea of hyperinflation, plus claims Europe to be torn to pieces by 2020

The US Federal Reserve voted to raise interest rates for the first time in years:

December 16, 2015

WASHINGTON — The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis.

The U.S. central bank’s policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.

“The Committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise over the medium term to its 2 percent objective,” the Fed said in its policy statement, which was adopted unanimously.

The Fed made clear that the rate hike was a tentative beginning to a “gradual” tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target. …

“The Fed is going out of its way to assure markets that, by embarking on a “gradual” path, this will not be your traditional interest rate cycle,” said Mohamed El-Erian, Chief Economic Advisor at Allianz.

The dollar firmed modestly after the rate rise. http://www.aol.com/article/2015/12/16/fed-raises-interest-rates-cites-ongoing-u-s-economic-recovery/21284564/?icid=maing-grid7%7Chtmlws-main-bb%7Cdl1%7Csec1_lnk2%26pLid%3D558444784

December 16, 2015

The Federal Open Market Committee unanimously voted to set the new target range for the federal funds rate at 0.25 percent to 0.5 percent, up from zero to 0.25 percent. Policy makers separately forecast an appropriate rate of 1.375 percent at the end of 2016, the same as September, implying four quarter-point increases in the target range next year, based on the median number from 17 officials. …

“The committee judges that there has been considerable improvement in labor market conditions this year, and it is reasonably confident that inflation will rise, over the medium term, to its 2 percent objective,” the FOMC said in a statement Wednesday following a two-day meeting in Washington. The Fed said it raised rates “given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes.” http://www.bloomberg.com/news/articles/2015-12-16/fed-ends-zero-rate-era-signals-4-quarter-point-2016-increases

One reason interest rates are raised is to try to reduce future inflation.

Larry Edelson of Money and Markets believes that deflation is really the issue and that Europe’s financial crisis will result in it being torn apart:

The Great Deflationary Collapse Continues

December 16, 2015

Everything I have been warning you about is unfolding, right on cue.

I’m talking about DEFLATION — the D-word no one wanted to hear more than four years ago when I first forecast it.

The D-word that had all the hyperinflationists up in arms. …

One, there’s simply way too much debt in the world. At more than $200 trillion of official total global debts — there is simply no way printing money could offset the deleveraging process that must occur.

Simply put, $3 trillion of Fed money printing, combined with another $2.4 trillion from other central banks over the past several years — a total of $5.4 trillion of printed money — is merely like throwing a coin in the middle of a lake and expecting a tsunami of inflation. It’s not going to happen.

Combined, all the central banks of the world would have to print far more than $200 trillion for hyperinflation to ever strike. …

Two, I also realized, way back in 2011, that the U.S. wasn’t the problem, as indebted as it was, and still is. Nor would it be China, who even today is wrongly cited as the biggest threat to the global economy.

I said way back then, and I warned you repeatedly, that the biggest threat to the global economy, and the biggest trigger to set off a deflationary spiral was none other than Europe.

I was right. Europe was, is and will be the biggest threat to global growth and the biggest force behind deflation. …

The single currency experiment in Europe is the most ill-conceived economic/social experiment of all time. I said it in 1998, and my words have come true. Europe is crashing and burning. …

Mark my words: By 2020, the year my war cycles peak, a short five years from now, you will see Europe torn apart at the seams, the euro fail as a currency, wars break out between member countries, and even secession movements succeed within countries. http://www.moneyandmarkets.com/great-deflationary-collapse-continues-74756#.VnGdz15aYZw

Larry Edelson is correct that by adding $5trillion to its debt the USA did not cause hyperinflation in a down economy.

He is also correct that all the financial problems in Europe have not been solved.

Larry Edelson is correct that Europe will reorganize. The Bible tells of it.

But will that be the end of Europe?

No.

Europe will arise and be the top financial force in the world for several years (cf. Revelation 13; Daniel 7:25). But it will reorganize as stated in Revelation 17:12-13; see also Must the Ten Kings of Revelation 17:12 Rule over Ten Currently Existing Nations?).

The Bible also tells of problems with European unity:

41 Whereas you saw the feet and toes, partly of potter’s clay and partly of iron, the kingdom shall be divided; yet the strength of the iron shall be in it, just as you saw the iron mixed with ceramic clay. 42 And as the toes of the feet were partly of iron and partly of clay, so the kingdom shall be partly strong and partly fragile. 43 As you saw iron mixed with ceramic clay, they will mingle with the seed of men; but they will not adhere to one another, just as iron does not mix with clay. (Daniel 2:41-43)

One difference between the USA and Europe’s is that Europe is a net exporter, but the USA is not. Here are two reports I found online today:

The Euro Area current account surplus increased to a non-seasonally adjusted €33.1 billion in September of 2015 compared to an upwardly revised €14.6 billion surplus in August. Both the goods and services surpluses increased to €29.1 billion and €6.8 billion, respectively, from €15.9 billion and €3.9 billion in the previous month. Also, primary income surplus went up to €4.8 billion, from €4 billion in August. http://www.tradingeconomics.com/euro-area/current-account
The U.S. current-account deficit—a net measure of transactions between the United States
and the rest of the world in goods, services, primary income (investment income and
compensation), and secondary income (current transfers)—decreased to $109.7 billion
(preliminary) in the second quarter of 2015 from $118.3 billion (revised) in the first
quarter. http://www.bea.gov/newsreleases/international/transactions/transnewsrelease.htm

The USA is a net importer, Europe is a net exporter. This means that the USA keeps being subsidized by foreigners. The Bible says that this will stop (Habakkuk 2:6-8).

As far as hyperinflation goes, the USA is also in more debt than any nation in the history of humanity. Europe does not have to be debt-free, but only perceived as less risky than the USA for the situation to change for Europe.

While deflation tends to increase the value of currencies, inflation has the opposite affect. In time, the USA will face massive devaluation of its dollar and there will be hyperinflation that will rival other major ones in history.

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)

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.

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

One thing that Larry Edelson has seemingly overlooked is that the USA will be hit by more of the ‘sorrows’ that Jesus prophesied in Matthew 24:4-8 (cf. Jeremiah 30:5-7) BEFORE the start of the Great Tribulation (Matthew 24:21).

This will weaken the USA economically enough, that sorrows (Matthew 24:4-8) plus debt (Habakkuk 2:6-8) plus the rise of European military technology (Revelation 13:4; see also European Technology and the Beast of Revelation) will lead to the end of the USA (Daniel 11:39) and lead to world economic dominance by the Europeans for a time (Revelation 13:16-18; 18:15).

The solution to the problems in the USA and Europe is not investments in the dollar of the USA–which will one day fail–but the Kingdom of God.

Some items of possibly related interest may include:

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.
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?
European Technology and the Beast of Revelation Will the coming European Beast power would use and develop technology that will result in the taking over of the USA and its Anglo-Saxon allies? Is this possible? What does the Bible teach? Here is a related YouTube video: Military Technology and the Beast of Revelation.
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 video: The Great Tribulation from the Mount of Olives. A shorter video is: Can the Great Tribulation Start in 2016?
Two Horned Beast of Revelation and 666 Who is 666? This article explains how the COG views this, and compares this to Ellen White. Here is a link to a prophetic video Six Financial Steps Leading to 666?
The Mark of Antichrist What is the mark of Antichrist? What have various ones claimed? Here is a link to a related sermon What is the ‘Mark of Antichrist’?
Mark of the Beast What is the mark of the Beast? Who is the Beast? What have various ones claimed the mark is? What is the ‘Mark of the Beast’?
Must the Ten Kings of Revelation 17:12 Rule over Ten Currently Existing Nations? Some claim that these passages refer to a gathering of 10 currently existing nations together, while one group teaches that this is referring to 11 nations getting together. Is that what Revelation 17:12-13 refers to? The ramifications of misunderstanding this are enormous. A related sermon is titled Ten Kings of Revelation and the Great Tribulation.
World War III: Steps in Progress Are there surprising actions going on now that are leading to WWIII? Might a nuclear attack be expected? What about WWIV? Does the Bible promise protection to all or only some Christians? How can you be part of those that will be protected? A related video would be Is World War III About to Begin? Can You Escape?
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? 2021 or 20xx? There is also a video titled The 6000 Year Plan: Is the end of humanity’s reign almost up?
The Snowden Leaks are Leading to the Destruction of the USA Can what happened with the leaks of what the NSA has done help the USA to be taken over? What does the Bible teach that seems to be related to this? Here is a related YouTube video titled Are the Snowden NSA leaks leading to the destruction of the USA?
Project Prophecy: Economic Collapse Starting in 2015? Jim Rickards once worked for the CIA and also was once part of a a USA government program called called ‘Project Prophecy.’ He has a video were he claims that starting in 2015, the USA may have economic collapse resulting in a 25-Year Great Depression. He mainly cites debt figures and claims advises alternatives to the USA dollar which he says will collapse? What did Rand Paul state? Can the USA dollar collapse?
Market Collapse then New World Order in 2015? A long-time financial adviser named Harvey Organ claims that claims that because of insufficient gold in the central banks of USA and UK, that Shanghai would bring about exposing this and that this would lead to a massive, overnight, rise in the price of gold and silver, diminished value of their currencies. He states a market collapse will occur before the end of 2014, that the petroyuan will replace the petrodollar, and that a Chinese led New World Order will be in place for 2015. Is this possible? Where does the leader of the ‘New World Order’ come from? What does the Bible teach?
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?
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.
Just What Do You Mean — Repentance? Do you know what repentance is? Have you truly repented? Repented of what? Herbert W. Armstrong wrote this as a booklet on this important subject.
When You Sin: Do You Really Repent? This is an article by Charles F. Hunting. A related sermon is Confess to God and truly repent.
The Gospel of the Kingdom of God was the Emphasis of Jesus and the Early Church Did you know that? Do you even know what the gospel of the kingdom is all about? True religion should be based upon the true gospel.
Did The Early Church Teach Millenarianism? Was the millennium (sometimes called chiliasm) taught by early Christians? Who condemned it? Will Jesus literally reign for 1000 years on the earth? Is this time near? A related sermon is titled The Millennium.
Barack Obama, Prophecy, and the Destruction of the United States-Second Edition for Second Obama Term This is a 160 page book for people truly interested in prophecies related to Barack Obama and the United States, including learning about many that have already been fulfilled (which the book documents in detail) and those that will be fulfilled in the future. It also has a chapter about a Republican choice. This book is available to order at www.barackobamaprophecy.com. The physical book can also be purchased at Amazon from the following link: Barack Obama, Prophecy, and the Destruction of the United States: Is Barack Obama Fulfilling Biblical, Islamic Catholic, Kenyan, and other America-Related Prophecies? What About Republican Leaders? Second Edition for Second Obama Term.
Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition. This electronic version is available for only US$2.99. 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 for your free Kindle reader and then go to Barack Obama, Prophecy, and the Destruction of the United States-Second Term-Amazon Kindle edition.