Federal Reserve to continue with $85 billion in monthly ‘money creation’

Ben Bernanke

COGwriter

U.S. Federal Reserve said that it intends to continue to create $85 billion dollars each month as part of its third round of “quantitative easing” (which has been dubbed “QE3″):

1/30/13

The Federal Reserve will keep purchasing securities at the rate of $85 billion a month after the economy paused because of temporary forces including bad weather.

“Growth in economic activity paused in recent months in large part because of weather-related disruptions and other transitory factors,” the Federal Open Market Committee said today at the conclusion of a two-day meeting in Washington…

Chairman Ben S. Bernanke has unleashed the power of the central bank to buy unlimited amounts of Treasury and mortgage- backed securities in a bid to end a four-year long period of unemployment above 7.5 percent and bolster an economy that shrank 0.1 percent in the fourth quarter.

“There is no hint that they are giving any thought of backing off current policy and their current stance,” said Wells Fargo Securities LLC senior economist Mark Vitner in Charlotte, North Carolina…The buying has already propelled the central bank’s balance sheet above a record $3 trillion and shows Bernanke’s resolve…  http://www.bloomberg.com/news/2013-01-30/fed-maintains-85-billion-pace-of-purchases-as-growth-pauses.html

Quantitative easing is form of ‘money creation’ and is sometimes called an “asset repurchasing” program. Yet, this is mainly a sham operation that debases the value of the U.S. dollar (mainly the government prints up money electronically and the “asset” purchased is a U.S. treasury note, not a real asset like, let’s say, an oil well; yes there are also some mortgages purchased which have ties to real assets, but there are problems there as well). Calling if counterfeiting is not too far off of a description of it.

Inflating the money supply through currency debasing (QE1, QE2, and QE3) and debt is not something advocated in the Bible. Notice:

4 Take away the dross from silver (Proverbs 25:4a).

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)

Dross is a cheaper metal that is normally placed inside a covering of a precious metal like silver. Governments began to do this thousands of years ago when they had financial problems. Putting dross into silver cheapens currency, just like putting water into wine dilutes the wine’s value. In modern times, government spending in excess of revenues and quantitative easing programs (QE1, QE2, and QE3, from the Fed Chairman) are a way to dilute the value of currencies. This is not the biblical solution to US economic problems. Quantitative easing programs are a form of “dishonest profits” that the U.S.A. is improperly reaping because of its position in the world, but that is not good:

13 “Behold, therefore, I beat My fists at the dishonest profit which you have made, and at the bloodshed which has been in your midst. 14 Can your heart endure, or can your hands remain strong, in the days when I shall deal with you? I, the Lord, have spoken, and will do it. 15 I will scatter you among the nations, disperse you throughout the countries, and remove your filthiness completely from you. 16 You shall defile yourself in the sight of the nations; then you shall know that I am the Lord. (Ezekiel 22:13-16)

QE3 is sending a strong signal to the world that the USA does not know how to truly fix its economy, but that it hopes because its dollar is the primary world’s reserve currency that it can get away with currency debasement and the rest of the world will put up with it–and while that may be true in the short run, it is sending a signal to the rest of the world that the US dollar needs to be replaced as the world’s primary reserve currency. Now, the real cause of why all of this is happening to the USA is sin. Because of it’s increasing secularism, greed, and tolerance for sexual, abortive, and other sins, the USA is getting closer to reaping more 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. And while some do not count quantitative easing as “debt”, it is an improper “solution” to the USA’s economic woes. But since Ben Bernanke will not advocate that the USA turn to God, he seems to think that diluting the currency is the best choice. Interestingly, last year, replying to Ben Bernanke’s comments back then (and how the USA has handled itself), Russia’s Prime Minister Putin actually said:

They are behaving like hooligans, switching on the printing press and tossing them around the whole world, forgetting their main obligations.

So, the Russian leader does not agree that “quantitative easing/asset repurchases” by the US Federal Reserve should continue. The Russian Prime Minister is correct that what the USA is doing is wrong. And he is not the only one. QE3 is a way to inflate the currency while trying to accumulate debt in a more indirect way. Between the QE3 and the US expected federal government deficit, the USA is getting itself in over 2 trillion dollars per year in additional debt. This is already causing foreigners and others to have concerns about the value and safety of the USA dollar. If the USA continues this way and/or is hit by crop failures, emp weapons, terrorists, weather crises, civil unrest, etc., this will seriously get the concern of at least foreign creditors. But notice what the Bible warns about those who increase debt in the end times:

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. Because of men’s blood And the violence of the land and the city, And of all who dwell in it. (Habakkuk 2:3,5,6-8).

At some point in time, the USA will likely start to experience massive inflation (which is something that the Fed Chairman should realize). And afterwards, its creditors will rise up (Habakkuk 2:7). The policies of the Federal Reserve Chairman, unless dramatically altered in a different direction relatively soon, are setting the stage for hyperinflation in the U.S.A.–have no doubt about it. Electronically “creating” more U.S. dollars may stimulate parts of the U.S. economy, but the more dollars that are produced and backed by nothing, the sooner the world will realize that the U.S. dollar cannot remains its primary reserve currency. When this happens, the U.S.A.’s economy will be massively hurt. And much more than people like the Fed Chairman seem to want to admit.

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 U.S. dollar and economy is clearly down. Without massive national repentance, the Bible is clear that complete destruction of the economy, and even government, of the USA is certain. This is something that leaders, such as the Fed Chairman, need to know.

The signal that continuing QE3 is sending is that the USA does not intend to truly fix it problems, but is a sign of major underlying weakness.

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

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?
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.
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
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.



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