Currency Printing May Make Many Poor Billionaires


“I will break the pride of your power” (Leviticus 26:19)

COGwriter

As has been reported here before, the US Federal Reserve is printing up money (which are actually unbacked pledges) supposedly in order to stimulate the economy.  Some have figured out where this logically will likely lead to:

Soon We Will All Be Billionaires
New York Observer – Oct 6, 2010

By 2020, everyone will be a billionaire, according to the National Inflation Association. You’d think they’d be happier about their prediction:

When our government creates inflation with the goal of generating higher incomes, the real incomes of Americans always decline dramatically. Inflation never creates wealth, but instead misallocates resources that would have went towards productive purposes if the free market was allowed to operate. During periods of high inflation, no matter how fast incomes rise nominally, they never keep pace with rising gold prices.

The National Inflation Association’s motto is “Preparing Americans for Hyperinflation.” They recommend investing in gold and silver mining companies and agricultural companies, because those firms tend to do well in inflationary times. As for people that don’t heed their advice? “[T]he wealth of most Americans could get wiped out during the next decade,” reads their less-than-cheerful “About” page.

The NIA is also careful to note that “we are not investment or financial advisors.” So take their words with that in mind.

http://www.observer.com/2010/wall-street/soon-we-will-all-be-billionaires

If most Americans become billionaires, being a billionaire means nothing.  Most in Germany prior to WWII became billionaires and when it happens from printing currency, the economy goes into a massive crisis mode that the USA has never yet seen.  The incentive to produce becomes over-weighed by the incentive to spend the money before it drops further in value.  Almost everyone will become poorer in real terms.

The problems in the USA are severe and the politicians and citizens there basically do not get it.  And although some are starting to open their eyes, many keep pursuing economic policies that will lead to the end of the USA:

Fed Undaunted by Uncertain Prospects for Money Printing
Reuters – Oct 10, 2010

The U.S. Federal Reserve runs the risk of diminishing returns from its next round of money printing to amplify the subdued economic recovery, but that won’t stop it from trying…

Printing money is not without consequences, at home and abroad. Eswar Prasad, an economist at Cornell University, said he is concerned that investors will abruptly shift from worrying about deflation to predicting inflation as the Fed’s actions debase the value of the dollar.

In that scenario, “we get spiraling inflation that the Fed will have to move aggressively to counter, leading to another bust just as the economy recovers,” he said. http://www.cnbc.com/id/39604937

The situation that the USA is in will lead to the fulfillment of various biblical prophecies.  And biblical prophecies related to having too much debt/pledges show destruction of the debtor (c.f. Habakkuk 2:3,5-8).

Most commentators have not realized that yet.  But that is the path that the USA is on.

To learn more, please check out the following 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?
Are there biblical and non-biblical prophecies about Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist?  This is a lengthy article with many prophecies that Barack Obama may end up fulfilling.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”. Might Bible prophecy be fulfilled by him?
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?



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