Quantitatively Easing Out of Financial Dominance

Ben Bernanke

The U.S. Federal Reserve Chairman is expected to take actions this week that will accelerate the trend to move away from the US dollar as the world’s reserve currency.

Notice the following:

QE2 risks currency wars and the end of dollar hegemony

As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.

Telegraph – Nov 1, 2010 http://www.telegraph.co.uk/finance/currency/8103462/QE2-risks-currency-wars-and-the-end-of-dollar-hegemony.html

Fed Poised To Buy More Bonds To Try To Aid Economy

by The Associated Press WASHINGTON November 2, 2010

On Tuesday, Chairman Ben Bernanke opens a two-day meeting where he will help craft a Fed plan to buy more government bonds. The idea is for those purchases to further drive down interest rates on mortgages and other loans. Cheaper loans might then lead people to spend more. The economy would benefit. And companies would step up hiring.

That’s the plan, anyway. But many question whether the Fed’s new plan will provide much benefit…

“Bernanke is trying to strike a balance,” said Lou Crandall, chief economist at Wrightson ICAP.

It’s a gamble, though…

Bernanke doesn’t want to see super-low inflation turn into deflation…The notion of letting inflation run higher makes some Fed members queasy. http://www.npr.org/templates/story/story.php?storyId=130995906

It is a “gamble” that is virtually guaranteed to ultimately devalue the US dollar and its financial dominance throughout the world.

And here is a partial explanation of some of the international impact from this “quantitative easing”:

U.S. “Quantitative Easing” is Fracturing the Global Economy

by Michael Hudson Global Research, November 1, 2010…

What is reversing trends that seemed irreversible for the past 65 years is the manner in which the United States has dealt with its bad-debt crisis. The Federal Reserve and Treasury are seeking to inflate the economy out of debt with an explosion of bank liquidity and credit – which means yet more debt. This is occurring largely at other countries’ expense, in a way that is flooding the global economy with electronic “keyboard” bank credit while the U.S. balance-of-payments deficit widens and U.S. official debt soars beyond any foreseeable means to pay. The dollar’s exchange rate is plunging, and U.S. money managers themselves are leading a capital flight out of the domestic economy to buy up foreign currencies and bonds, gold and other raw materials, stocks and entire companies with cheap dollar credit.This outflow from the dollar is not the kind of capital that takes the form of tangible investment in plant and equipment, buildings, research and development. It is not a creation of assets as much as the creation of debt, and its multiplication by mirroring, credit insurance, default swaps and an array of computerized forward trades…

Countries on the receiving end of this U.S. financial conquest (“restoring stability” is how U.S. officials characterize it) understandably are seeking to protect themselves…

On October 15, 2010, Fed Chairman Ben Bernanke explained that he wanted the Fed to encourage inflation – his of program of Quantitative Easing – and acknowledged that this would drive down the dollar against foreign currencies. http://www.globalresearch.ca/index.php?context=va&aid=21716

Now, Michael Hudson is correct that this increase of debt encourages inflation and will hurt many nations. And these nations will feel financially plundered through this bizarre “financial conquest” know as quantitative easing.

But a fuller explanation of the real cause of why this is happening is sin. Because of it’s increasing secularism, greed, and tolerance for sexual, abortive, and other sins, the USA is getting closer to reap what it has sown:

7 Do not be deceived, God is not mocked; for whatever a man sows, that he will also reap. 8 For he who sows to his flesh will of the flesh reap corruption, but he who sows to the Spirit will of the Spirit reap everlasting life. (Galatians 6:7-8)

One of the many cursings that were prophesied in the Bible to be reaped for disobedience was that of accumulation of debt:

43 The alien who is among you shall rise higher and higher above you, and you shall come down lower and lower. 44 He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail. 45 Moreover all these curses shall come upon you and pursue and overtake you, until you are destroyed, because you did not obey the voice of the LORD your God, to keep His commandments and His statutes which He commanded you (Deuteronomy 28:42-45).

As the Anglo-American nations have not kept God’s commandments, they have become the greatest debtor nations of all time!

Quantitative easing is another way that the USA is plundering nations. It is producing currency without the production of goods to back it up. And because of the financial conditions in the world, this is being allowed to continue at this time, it cannot continue indefinitely.

At some point in time, the USA will start to experience massive inflation. And then its creditors will rise up.

The world is changing and the USA and its Anglo-descended allies are losing their financial dominance in the world. And while there will be some temporary rises in the value of the US dollar for a while (and likely when there is more civil unrest in Europe), the trend for the US dollar and economy is clearly down.

The moves from the US Federal Reserve, while apparently well intended, will have massive consequences much worse than I believe Ben Bernanke has ever even imagined.

Quantitative easing will apparently help fulfill the prophecy in Habakkuk 2:3,6,7. Notice that God mentions that that destruction will happen to those that increased their debt at the end time:

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…5 Indeed, because he transgresses by wine, He is a proud man… 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 (Habakkuk 2:3,5,6-8).

The above prophecy will be fulfilled at the time of the end and seems to be directed to one or more nations like the USA. It makes little sense that it 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.

Since the USA has the most debt of any nation of all time, it seems to be a leading (though not necessarily only) candidate to be included in it. Increasing deficits puts the USA in a dangerous position that Bible prophecy indicates that it will not be able to recover from.

Let’s briefly look at another warning in Isaiah 30:12-13:

12 Therefore thus says the Holy One of Israel:

“Because you despise this word, And trust in oppression and perversity, And rely on them, 13 Therefore this iniquity shall be to you Like a breach ready to fall, A bulge in a high wall, Whose breaking comes suddenly, in an instant.

Of course, more and more, the Anglo-American nations are trusting in policies that encourage perversity. Prostitution is legal in New Zealand, Australia, and parts of the USA. New Zealand, interestingly, has the highest promiscuity rate for women in the entire world according to one study (New Zealand women most promiscuous Sydney Morning Herald AAP – Oct 13, 2007. http://www.smh.com.au/articles/2007/10/13/1191696214489.html). The Anglo-nations have seen rises in homosexuality and are often changing laws to accomodate this biblically prohibited practice.

While there is oppression in these nations (especially racial), the Hebrew word for it can also be translated “unjust gain”. This can include not just the historical exploitation of of various peoples, but can probably also include the fact that the economies of the Anglo-American nations for the past few decades has been benefiting from the gains of foreigners loaning money to it.

Since the Roe vs. Wade pro-abortion decision, the USA has became the greatest debtor nation in the history of humankind. Since the USA owes alien nations trillions of dollars, it appears that the curse in Deuteronomy 28:44 of having to borrow from aliens is happening to it now.

US President Barack Obama has put forth economic policies that have and will increase that debt–even more than former President Bush. Additionally, one of the first actual changes that Barack Obama implemented was reversing one or more executive orders that will likely lead to more abortions (see Obama’s Abortion Changes). Yet, abortion is wrong (see Abortion, the Bible, and a Woman’s Right to Choose) and a terrible national sin. And on March 9, 2009 President Obama lifted a ban on embryonic stem cell research (see LCG on Stem Cells) another morally wrong sin.

Without massive national repentance, the Bible is clear that complete destruction of the economy, and even government, of the USA is certain. Quantitative easing may be a major step to accelerating the end of the USA and its financial dominance.

Ben Bernanke and others may wish to consider studying the following prophetically-oriented articles:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? 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?
Prophecies of Barack Obama? Eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. This article includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article on this page on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”, based up an early 20th century writing.
Abortion, the Bible, and a Woman’s Right to Choose Is abortion sin? What exactly are a woman’s reproductive rights? Do you know what the Bible teaches on this?