{"id":85845,"date":"2024-01-08T17:00:39","date_gmt":"2024-01-09T01:00:39","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=85845"},"modified":"2024-01-08T08:20:56","modified_gmt":"2024-01-08T16:20:56","slug":"us-congressional-leaders-agree-to-another-1-6-trillion-in-spending-debt-3-risks-to-the-inflation-narrative","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/us-congressional-leaders-agree-to-another-1-6-trillion-in-spending-debt-3-risks-to-the-inflation-narrative\/","title":{"rendered":"US Congressional leaders agree to another $1.6 trillion in spending (debt)–‘3 Risks To The Inflation Narrative’"},"content":{"rendered":"

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\nUS woman distraught over inflation (Photo from Pexels)
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COGwriter<\/a><\/p>\n

The Congress of the USA is moving, again, towards more debt:<\/p>\n

8 January 2024<\/p>\n

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US Congress leaders have reached a deal over the total amount of spending for the rest of 2024 as they seek to avoid a partial government shutdown.<\/b><\/p>\n<\/section>\n

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The $1.6tn (\u00a31.2tn) figure includes $886bn for defence and more than $704bn for non-defence spending, according to Republican House Speaker Mike Johnson.<\/p>\n<\/section>\n

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However, there appears to be some discrepancy over the numbers.<\/p>\n<\/section>\n

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The deal now needs approval from the House of Representatives and Senate. https:\/\/www.bbc.com\/news\/world-us-canada-67908646<\/a><\/p>\n<\/section>\n<\/blockquote>\n

Increasing debt is not a surprise–even though this particular proposal has not gotten full approval.<\/p>\n

Is inflation truly under control now as many pundits and the US White House suggest?<\/p>\n

No.<\/p>\n

Consider the following:<\/p>\n

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3 Risks To The Inflation Narrative<\/h2>\n

January 8, 2024<\/p>\n

Market expectations of rapid disinflation and a soft landing remain,<\/strong> but January has given a few new risks to the optimistic estimates of disinflation with no impact on the economy.<\/p>\n

geopolitical risk and assumed the extraordinary and counterintuitive decline in commodity prices in 2023 as something permanent. However, January has shocked analysts with a dramatic increase in freight costs and a significant bounce in oil prices. …<\/p>\n

The second risk comes from the significant bounce in net liquidity and effective money supply both in the United States and the euro area.<\/strong> Thus, the following three months will be critical to understanding the real disinflation process and whether market estimates are too optimistic. Unless the money supply declines again, the path to reaching 2% inflation may be challenging. …<\/p>\n

The third risk comes from the inflationary impact of government protectionism. <\/strong>As trade barriers continue to build, the monetary disinflation process may be decelerating due to governments implementing trade wars, barriers to commerce, and tariffs …<\/p>\n

We need to be careful with excessive optimism about inflation and even more aware of the perils of expecting disinflation with no economic harm.<\/strong> https:\/\/www.zerohedge.com\/markets\/3-risks-inflation-narrative<\/a><\/p><\/blockquote>\n

The spending plan that US Congressional leaders have agreed to will increase the “effective money supply” in the USA, hence be inflationary.<\/p>\n

Increased debt as well as risk of inflation were included as part of my 24 items to prophetically watch in 2024<\/a>:<\/p>\n

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11. Debt<\/h2>\n

The Bible teaches that the result of debt accumulation will\u00a0 be far worse than even many pessimists believe. Here is an end-time prophecy given to the prophet Habakkuk by God over 2600 years ago:<\/p>\n

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2 <\/strong>And the Lord answered me:<\/p>\n

\u201cWrite the vision;
\nmake it plain on tablets,
\nso he may run who reads it.
\n3 <\/strong>For still the vision awaits its appointed time;
\nit hastens to the end\u2014it will not lie.
\nIf it seems slow, wait for it;
\nit will surely come; it will not delay.<\/p>\n

4 <\/strong>\u201cBehold, his soul is puffed up; it is not upright within him,
\nbut the righteous shall live by his faith.<\/p>\n

5 <\/strong>\u201cMoreover, wine is a traitor,
\nan arrogant man who is never at rest.
\nHis greed is as wide as Sheol;
\nlike death he has never enough.
\nHe gathers for himself all nations
\nand collects as his own all peoples.\u201d<\/p>\n

6<\/strong> Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,<\/p>\n

\u201cWoe to him who heaps up what is not his own\u2014
\nfor how long?\u2014
\nand loads himself with pledges!\u201d
\n7 <\/strong>Will not your debtors suddenly arise,
\nand those awake who will make you tremble?
\nThen you will be spoil for them.
\n8 <\/strong>Because you have plundered many nations,
\nall the remnant of the peoples shall plunder you,
\nfor the blood of man and violence to the earth,
\nto cities and all who dwell in them. (Habakkuk 2:2-8; English Standard Version)<\/p>\n<\/blockquote>\n

The USA is the most indebted nation in the history of humanity and those in it should try to understand this prophecy. Perhaps it should be noted that the United Kingdom and Canada have about a similar massive per capita debt to that of the USA.<\/p>\n

Notice the following levels of official US debt:<\/p>\n