Russia and China Taking Steps to Reduce Inflation

Vladimir Putin, Official Photograph

While Russia and China have decided to take steps to try to prevent inflation from heating up as much in their countries:

Russia raises interest rate to fight inflation

Forbes

AP , 04.29.11, 09:02 AM EDT The Russian Central Bank said in a statement Friday that it lifted the refinancing rate from 8 to 8.25 percent in order to address “the persistent level of high inflation expectations, which exceed targets for this year”

Putin Raises Russia’s Gasoline Export Tax to Fight Shortage

Bloomberg – Stephen Bierman – 29 April 2011

Russian Prime Vladimir Putin raised the export taxes on gasoline by 44 percent to fight regional motor fuel shortages as parliamentary and presidential elections approach.

Beijing turns to currency to cool inflation

The Associated Press – ‎2 hours ago‎

BEIJING (AP) — Surging inflation that helped trigger protests in Shanghai is prompting China’s leaders to turn to a tool they long resisted: Speeding up the rise of the country’s tightly controlled currency.

Rising prices are a political threat to China’s communist leaders and they have declared taming inflation their priority. But they suffered a setback in March, when a double-digit jump in food costs pushed inflation to a 32-month high of 5.4 percent. That was despite four interest rate hikes since October, curbs on bank lending and government orders to producers to hold down price increases…On Friday, the central bank set the yuan’s exchange rate at 6.49 to the U.S. dollar — its highest official level since a currency revaluation in 2005.

While those steps may help reduce certain forms of inflation in Russia and China, they are likely to contribute to increased inflation in countries like the USA which import a lot of goods from China. And even the Russian gasoline export tax may as well as it will tend to increase the price of oil around the world. Not only would fuel shortages within Russia hurt politically, they also could contribute to an increase in inflation over there as well.

Furthermore, increases in interest rates (which both the Russians and Chinese are doing) will ultimately affect the USA and UK which are borrowing heavily and who will need to continue to refinance their debts.

What is happening in the Russia and China today are just small additional steps that will have negative ramifications on the USA and its dollar. And this is consistent with Bible prophecy.

Some articles of possibly related interest may include:

Russia: Its Origins and Prophesied Future Where do the Russians come from? What about those in the Ukraine? What is prophesied for Russia and its allies? What will they do to the Europeans that supported the Beast in the end?Is Russia the King of the North? Some claim it is. But what does the Bible teach?
Is Russia the King of the North? Some claim it is. But what does the Bible teach?
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters Where did the Chinese people come from? This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon?
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?