{"id":91190,"date":"2024-10-23T07:00:03","date_gmt":"2024-10-23T15:00:03","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=91190"},"modified":"2024-10-23T05:02:35","modified_gmt":"2024-10-23T13:02:35","slug":"can-the-usa-have-inflation-worse-than-the-1970s-and-1980s","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/can-the-usa-have-inflation-worse-than-the-1970s-and-1980s\/","title":{"rendered":"Can the USA have inflation worse than the 1970s and 1980s?"},"content":{"rendered":"

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\n(AdvancingTime Blog<\/i><\/span>)
<\/em><\/p>\n

COGwriter<\/a><\/p>\n

ZeroHedge posted the following by Nick Giambruno via InternationalMan.com<\/em><\/a>:<\/p>\n

\n

From High Inflation To Hyperinflation: How Close Are We?<\/h2>\n

October 23, 2024<\/p>\n

The\u00a0Federal Reserve<\/strong>\u00a0is now entering a\u00a0monetary easing<\/strong>\u00a0and\u00a0rate cutting cycle<\/strong>\u00a0in an environment of\u00a0elevated inflation<\/strong>.<\/p>\n

The last time this happened was during the\u00a01970s<\/strong>, a decade that saw\u00a0inflation spiral out of control<\/strong>. …<\/p>\n

Despite\u00a0elevated inflation<\/strong>, the\u00a0Fed cut interest rates<\/strong>\u00a0multiple times until 1972 to stimulate economic growth.<\/p>\n

Inflation soared<\/strong>\u00a0to\u00a0over 12%<\/strong>\u00a0in the months that followed.<\/p>\n

In response to the rising inflation, the Fed raised rates aggressively in 1974, pushing the federal funds rate from around\u00a05.75% to 13%<\/strong>.<\/p>\n

However, as the economy entered a\u00a0deeper recession<\/strong>, the Fed began\u00a0cutting rates again<\/strong>\u00a0in 1975 despite\u00a0inflation remaining elevated<\/strong>\u00a0at around\u00a09%<\/strong>.<\/p>\n

By the end of the decade,\u00a0inflation had reached double digits<\/strong>\u00a0again at over\u00a011%<\/strong>\u00a0in\u00a01979<\/strong>\u00a0and peaked at\u00a013.5%<\/strong>\u00a0in\u00a01980<\/strong>.<\/p>\n

The\u00a0raging inflation<\/strong>\u00a0of the\u00a01970s<\/strong>\u00a0and early\u00a01980s<\/strong>\u00a0is a stark illustration of the\u00a0danger<\/strong>\u00a0of<\/strong>\u00a0cutting interest rates in an environment of elevated inflation<\/strong>\u2026 such as the one we are in today.<\/p>\n

However, as bad as the 1970s inflation was, I believe it\u2019s an\u00a0optimistic scenario<\/strong>.<\/p>\n

That\u2019s because the\u00a0out-of-control inflation<\/strong>\u00a0then was only tamed when\u00a0Paul Volcker<\/strong>\u00a0hiked rates above 17%<\/strong>\u2026 an option that is\u00a0not available to the Fed today<\/strong>\u00a0because of the skyrocketing federal\u00a0interest expense<\/strong>.<\/p>\n

In fact, the Fed could only raise rates to about\u00a05.25%<\/strong>\u2014less than a third of what Volcker had to do\u2014before capitulating recently.<\/p>\n

In other words, the higher the debt load, the less room the Fed has to raise rates because of the interest expense.<\/strong><\/p>\n

As the\u00a0debt<\/strong>\u00a0pile and accompanying\u00a0interest expense grow exponentially<\/strong>, I am skeptical of their ability to hike rates to even 5.25% again; forget about higher than that.<\/p>\n

Imagine what could have happened in the 1970s and early 1980s if Volcker could have raised rates to only 5.25% instead of over 17%.<\/strong><\/p>\n

This is the environment the US now finds itself in. …<\/p>\n

it will take a lot more to push the US into hyperinflation.<\/strong><\/p>\n

I\u2019m not saying that\u00a0hyperinflation<\/strong>\u00a0in the US is inevitable or imminent, though it\u00a0remains a growing possibility<\/strong>. That is especially true as\u00a0World War 3 plays out<\/strong>\u00a0and a\u00a0multipolar world order<\/strong>\u00a0potentially emerges that could\u00a0change everything<\/strong>.<\/p>\n

In the meantime, I believe\u00a0ever-increasing currency debasement<\/strong>\u00a0potentially worse than what the US experienced in the 1970s\u2014though not necessarily imminent hyperinflation\u2014is an\u00a0unstoppable trend<\/strong> you can bet on. https:\/\/www.zerohedge.com\/economics\/high-inflation-hyperinflation-how-close-are-we<\/a><\/p><\/blockquote>\n

Before the USA is conquered, more inflation is coming\u2013and with devastating consequences. The situation will be worse than in the 1970s\/early 1980s.<\/p>\n

Here is something from my 2021 book,\u00a0Biden-Harris: Prophecies and Destruction<\/a>:<\/p>\n

Joe Biden will have to deal with the fact that the U.S.A. is the most indebted nation in the history of humanity. Plus, he has pledged increasing it further [The Biden Emergency Action Plan to Save the Economy. JoeBiden.com, accessed 12\/16\/20<\/sup>].<\/p>\n

Debt is a prophesied problem (cf. Habakkuk 2:6-8). But many in the media as well as politically-inclined economists do not see it that way\u2014but that is too short sighted (cf. Ecclesiastes 8:11).<\/p>\n

The time will come when the U.S.A. government will no longer be able to borrow at low interest rates and\/or it will create more money electronically and\/or via the printing press to try to continue.<\/p>\n

Make no mistake about it \u2014 massive inflation is coming.<\/p>\n

The U.S.A. dollar will ultimately crash and be worthless. That \u201cpride\u201d of American power will be broken (cf. Leviticus 26:19). …<\/p>\n

Inflation will eventually hit the U.S.A. extremely hard. As the world becomes less attached to the American dollar, many financial jobs and opportunities will be in places other than the U.S.A. Eventually, but not yet, the U.S.A. dollar will become worthless (worth no more than the scrap or sentimental value of the cotton-paper it is printed on).<\/p><\/blockquote>\n

Note: The Trump-Pence Administration also increased debt, so quoting the above is not intended as an endorsement of Donald Trump.<\/p>\n

That said, last century, in a 1981 article, the old Worldwide Church of God had this about inflation:<\/p>\n

\n

Notice some of the penalties for disobedience recorded in the 26th chapter of Leviticus: \u201cIf after all this you have not learnt discipline but still defy me, I in turn will defy you and scourge you seven times over for your sins. I will bring war in vengeance upon you \u2026 you shall be herded into your cities, I will send pestilence among you, and you shall be given over to the enemy. I will cut short your daily bread until ten women can bake your bread in a single oven; they shall dole it out by weight [see Revelation 6:5-6], and though you eat, you shall not be satisfied. If in spite of this you do not listen to me and still defy me, I will defy you in anger, and I myself will punish you seven times over for your sins. Instead of meat you shall eat your sons and daughters\u201d (Lev. 26:23-28, The New English Bible). Other passages warn of famine-producing upsets in weather (Amos 4:7, Deut. 28:24); ruined harvests (Ezek. 5:16, Deut. 28:17); blighted crops (Amos 4:9); harmful insect pests (Deut. 28:39, 42); and nonproductive soil (Deut. 28:23). (4 Horsemen of the Apocalypse \u2013 The Black Horse \u2013 Famine. WCG booklet, 1976)<\/p>\n

The Bible foretells that inflation at least in the sense of oppressively rising prices \u2014 will be a plague of the end times. Notice Haggai 1:6, \u201cand he that earneth wages earneth wages to put into a bag with holes.\u201d Every person who has seen the buying power of his money be continually eroded because of rising prices can well understand that that prophecy has already come to pass.
\n<\/span><\/p>\n

The book of Revelation also foretells inflation: \u201cA measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine\u201d (Rev. 6:6).
\n<\/span><\/p>\n

A measure of wheat for a penny sounds like a bargain these days. But consider, a measure of wheat at the time John penned the book of Revelation was two-or three pints. A penny was the day\u2019s wages of a laborer. In North America today, a factory worker\u2019s pay is conservatively around $40 a day. So consider: three pints of wheat for $40!
\n<\/span><\/p>\n

That is inflation. Moreover, as we would expect from the time sequence, the prophecy bears a striking resemblance to our own pre-tribulation times: While food is scarce, it still has a market price.
\n<\/span><\/p>\n

The mention of oil and wine has several layers of meaning, one of which is an allusion to the practice in ancient Roman provinces of exporting oil and wine to Rome regardless of the scarcity of food at home. The main meaning, of course, is that oil and wine, having become scarce and expensive, must be spared for the highest priority uses.<\/span><\/p>\n

When money fails<\/b><\/p>\n

Biblical descriptions of money and prices bring out several important lessons about high prices:
\n<\/span><\/p>\n

Scarcity can make your money worthless. In Joseph\u2019s time, when \u201cfamine [crop shortage] was over all the face of the earth\u201d (Gen. 41:56), the fact was reflected in the price of food. Thus, when Jacob sent his sons to buy food in Egypt, he told them to take \u201cdouble money\u201d (Gen. 43:12).
\n<\/span><\/p>\n

Another example of scarcity-induced price increases was the siege in Samaria in the time of Elisha: \u201cAnd there was a great famine in Samaria: and, behold, they [the Syrians] besieged it, until an ass\u2019s head was sold for fourscore pieces of silver, and the fourth part of a cab of dove\u2019s dung for five pieces of silver\u201d (II Kings 6:25).
\n<\/span><\/p>\n

Today, silver sells for around $8.50 an ounce. Imagine! Over $42.50 for a small quantity of bird waste!
\n<\/span><\/p>\n

And, of course, the law of supply and demand works the opposite way as well. When the Syrians prematurely abandoned their invasion and left their provisions behind (II Kings 7:6 and 8), the inhabitants of the city went out and gathered up those provisions. Supply increased. And prices came down.
\n<\/span><\/p>\n

Inflation increases the power of those who hold tangible goods. In the time of Joseph\u2019s famine, people had money, but no food. The price of food went up, and they soon ran out of money.
\n<\/span><\/p>\n

(Since money in the Bible was synonymous with a given weight of silver or gold (See Ezra 7:15-17, II Kings 12:10-11), the government could not just go and print up some more.) Thus their \u201cmoney failed\u201d (Gen. 47:15), and they had to barter their livestock for food (Gen. 47:17).
\n<\/span><\/p>\n

After they had bartered away their livestock, they were forced to barter their land and their labor. If they hadn\u2019t possessed some tangible goods to barter after their money ran out, they would have starved (Gen. 47:19).
\n<\/span><\/p>\n

And in the end, because the Egyptian government had correctly \u201canticipated market conditions,\u201d it ended up owning everything. A closely related lesson from this account is that inflation favors those who hold or produce tangible necessities (as opposed to luxuries). \u2026 Of course, since gold is regarded as a disaster hedge by many investors, prudence might dictate that perhaps a small fraction of your liquid assets be in gold \u2026<\/span><\/p>\n

The most important inflation hedge<\/b><\/p>\n

Be righteous. God has the supernatural power to insure that His people do not suffer privation. God always has the power to hedge you from the ravages of inflation (see Job 1:10).
\n<\/span><\/p>\n

King David made this principle plain: \u201cThe Lord knoweth the days of the upright: and their inheritance shall be forever. They shall not be ashamed in the evil time: and in the days of famine they shall be satisfied \u2026 I have been young, and now am old; yet have I not seen the righteous forsaken, nor his seed begging bread\u201d (Ps. 37:18-19, 25).
\n<\/span><\/p>\n

So, even though we do have a responsibility to provide for our children and our grandchildren through all the know-how and skills we can muster, in the end it is God in whom we must place all our trust, never wavering. That is the most sound investment anyone can make.(Calkins J. When Money Fails. Good News, October-November 1979)
\n<\/span><\/p><\/blockquote>\n

Money, meaning the US dollar, will one day fail! And the USA will be taken over (Daniel 11:39) and be no more. Yes, we need to fully put our trust in God.<\/p>\n

Other articles from the old WCG also predicted that the Europeans would end up with their own European currency (which it now has) and that it would be expected to replace the dollar (which is something that the Europeans want to happen).<\/p>\n

The history of the US government increasing debt is setting the stage for more inflation.<\/p>\n

The media and the populous will demand more \u2018stimulus\u2019 \u2013which means more debt.<\/p>\n

Sadly, many in the media and government act like printing up money is really the solution for the US economy because of their views of government and the economy.<\/p>\n

But there is a real risk of massive inflation\u2013and ultimately destruction.<\/p>\n

Related to inflation, we put out the following video:<\/p>\n

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15:26<\/span><\/div>\n<\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Inflation: When Money Fails<\/a><\/h3>\n

Inflation has been higher in 2022 than it has been for decades in the USA, Europe, and many other lands. What are some of the disruptions that inflation can cause? What about hyperinflation affecting places like Venezuela? Did the Book of Haggai predict inflation? Is food price inflation associated with the ride of the third horseman of the Apocalypse? Does sin and government mismanagement cause inflation? Are there physical things one can do about inflation? What about storing food or buying gold? Will gold outlast the USA dollar? Why might some throw their gold in the street as Ezekiel prophesied? What should God\u2019s people do about inflation? What did Jesus teach about food worries? What about seeking the Kingdom of God? Steve Dupuie and Dr. Thiel cover these matters.<\/span><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n

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Here is a link to our video:\u00a0Inflation: When Money Fails<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

The Bible warns, \u201cbe sure your sin will find you out\u201d (Numbers 32:23).<\/span><\/p>\n

Sadly, the USA has no real intention to pay back its debt.<\/p>\n

Its leaders basically hope to not pay it back, but if some payment is needed they hope that it will be in inflated dollars worth less than what the USA borrowed.<\/p>\n

Foreign creditors will not be pleased.<\/p>\n

Not paying back debt is wicked:<\/p>\n

The wicked borrows and does not repay \u2026 (Psalm 37:21)
\n<\/span><\/p><\/blockquote>\n

This diluting of the value of currency (called \u201cdross\u201d anciently), which is what the USA has been doing with its debt and quantitative easing policies, is condemned in the Bible:<\/p>\n

4 Take away the dross from silver (Proverbs 25:4a).<\/p><\/blockquote>\n

22 Your silver has become dross, Your wine mixed with water. (Isaiah 1:22)<\/p><\/blockquote>\n

25 I will turn My hand against you, And thoroughly purge away your dross, And take away all your alloy. (Isaiah 1:25)<\/p><\/blockquote>\n

18 \u201cSon of man, the house of Israel has become dross to Me; they are all bronze, tin, iron, and lead, in the midst of a furnace; they have become dross from silver. 19 Therefore thus says the Lord God: \u2018Because you have all become dross, therefore behold, I will gather you into the midst of Jerusalem. 20 As men gather silver, bronze, iron, lead, and tin into the midst of a furnace, to blow fire on it, to melt it; so I will gather you in My anger and in My fury, and I will leave you there and melt you. 21 Yes, I will gather you and blow on you with the fire of My wrath, and you shall be melted in its midst. 22 As silver is melted in the midst of a furnace, so shall you be melted in its midst; then you shall know that I, the Lord, have poured out My fury on you.\u2019\u201d (Ezekiel 22:18-22)<\/p><\/blockquote>\n

Dross money causes inflation. There is a serious cost to having an economy pumped up with so much \u201cdross\u201d money.<\/p>\n

Although the Bible warns against using dross and diluting the money supply, many modern \u2018experts\u2019 have a different view. The wrong views on economics will lead to economic problems and ultimately the\u00a0total crash<\/em>\u00a0of the dollar of the USA.<\/p>\n

Printing more money and contributing to hyperinflation is not going to solve the debt problems of the USA.<\/p>\n

The USA, because of the role of its dollar, can look to get away with this for longer than other nations, but the end result will be much worse than most think.<\/p>\n

There are disastrous changes that will come to the USA (Daniel 11:39; see also\u00a0USA in Prophecy: The Strongest Fortresses<\/a><\/span>)\u2013and its debt and other monetary practices\u2013which one day will cause massive hyperinflation\u2013will be a cause (cf. Habakkuk 2:6-8; see also\u00a0USA in Prophecy: The Strongest Fortresses<\/a><\/span>).<\/p>\n

But since many leading so-called \u2018economists\u2019 are political hacks and\/or have a political agenda, do not expect too many prominent ones to have sufficient influence to resolve the problems in the USA.<\/p>\n

The truth is that the USA is setting itself up for massive inflation and destruction.<\/p>\n

Hyperinflation will hit the USA and its results will be worse than almost anyone realizes.<\/p>\n

Some items of possibly related interest may include:<\/em><\/p>\n

The End of US Dollar Dominance<\/a>\u00a0Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available:\u00a0US Dollar being challenged by Gold-Petro-Yuan<\/a>.
\nPhysical Preparation Scriptures for Christians<\/a>. We all know the Bible prophecies famines. Should we do something? Here is a version in the Spanish language\u00a0Escrituras sobre Preparaci\u00f3n f\u00edsica para los Cristianos<\/a>. Here is a link to a related sermon:\u00a0Physical preparedness for Christians<\/a>.
\nThe Plain Truth About Gold in Prophecy. How Should a Christian View Gold?<\/a>\u00a0What 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 and silver? Two videos of related interest may be:\u00a0Germany, Gold, and the US Dollar<\/a>\u00a0and\u00a0Silver, Science, and Scripture<\/a>.
\nUSA in Prophecy: The Strongest Fortresses<\/a>\u00a0Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does.<\/span>\u00a0Two related sermon are available:\u00a0Identifying the USA and its Destruction in Prophecy<\/a>\u00a0and\u00a0Do these 7 prophesies point to the end of the USA?<\/a>
\nWho is the King of the West?<\/a>\u00a0Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language:\u00a0\u00bfQui\u00e9n es el Rey del Occidente? \u00bfPor qu\u00e9 no hay un Rey del Occidente en la profec\u00eda del tiempo del fin?<\/a>\u00a0A related sermon is also available:\u00a0The Bible, the USA, and the King of the West<\/a>.
\nBiden-Harris: Prophecies and Destruction<\/a>\u00a0Can the USA survive two full presidential terms? In what ways are Joe Biden and Kamala Harris apocalyptic? This book has hundreds of prophecies and scriptures to provide details.\u00a0 A Kindle version is also available and you do not need an actual Kindle device to read it. Why? Amazon will allow you to download it to almost any device:\u00a0Please click HERE to download one of Amazon \u0019s\u00a0Free<\/strong>\u00a0Reader Apps<\/a>. After you go to your free Kindle reader app (or if you already have one or a Kindle),\u00a0 you can go to:\u00a0Biden-Harris: Prophecies and Destruction (Kindle)<\/a>\u00a0to get the book in seconds.<\/p>\n","protected":false},"excerpt":{"rendered":"

(AdvancingTime Blog) COGwriter ZeroHedge posted the following by Nick Giambruno via InternationalMan.com: From High Inflation To Hyperinflation: How Close Are We? October 23, 2024 The\u00a0Federal Reserve\u00a0is now entering a\u00a0monetary easing\u00a0and\u00a0rate cutting cycle\u00a0in an environment of\u00a0elevated inflation. The last time this happened was during the\u00a01970s, a decade that saw\u00a0inflation spiral out of control. … Despite\u00a0elevated inflation, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-91190","post","type-post","status-publish","format-standard","hentry","category-prophecy"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t