Minutes of a major US Federal Reserve meeting were released and there are various views about the economic situation and where this is heading:
October 9, 2015
Oct 9 (Reuters) – Wall Street was set to open slightly higher on Friday, a day after the S&P 500 closed at a seven-week high as investors bet the Federal Reserve would keep rates at near-zero levels until at least next year.
The minutes of the Fed’s September meeting, released on Thursday, indicated further signs of dovishness, with policymakers concerned about a global economic slowdown weighing on America, even before weak September jobs data.
“It was more a case of an abundance of caution rather than worry,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. http://www.reuters.com/article/2015/10/09/markets-stocks-usa-idUSL3N1293LL20151009
NEW YORK – The minutes released Thursday from the September meeting of the Federal Open Market Committee, the policy-setting body of the Federal Reserve, show the Fed backed off raising interest rates because of concern the global economic slowdown was impacting the much-touted Obama “economic recovery.”
The FOMC minutes from the Sept. 16-17 meeting echo concerns published this week by the International Monetary Fund that also warned a global economic meltdown is looming as world debt builds to record heights amid a slowdown in global economic growth. …
If global economic growth continues to slow, the next problem is that the “Obama recovery” in the United States has been prompted by the near doubling of U.S. debt during the Obama presidency to over $18 trillion. The Federal Reserve, meanwhile, has been printing money used to purchase U.S. Treasury debt to keep interest rates low.
The concern is that an increase in interest rates by the Fed would trigger a stock market crash of historic proportions.
However, until the Federal Reserve starts increasing interest rates, governments in the developed economies, including the European Union, have little or no incentive to stop piling up government debt to historically frightening levels.
China, the biggest foreign owner of U.S. Treasury debt, is currently engaged in an historic selloff of U.S. Treasuries to prevent the yuan from weakening beyond the level of 6.40 yuan per dollar. http://www.wnd.com/2015/10/fed-joins-world-banks-worry-of-global-economic-meltdown/#R5FYifitvusVk3gw.99
The US Federal Reserve, which is neither a US federal government agency nor does it have any significant ‘reserves,’ has a difficult job, but normally takes one with minimal short-term political consequences.
It has tended to try to prop up the US stock markets, basically successfully, for the past couple of decades. It has artificially reduced interest rates by creating money (yes, they basically make it out of thin air, by creating electronic money and issuing US treasury notes as collateral).
If US interest rates rise to levels such as seen in the 1980s, the USA would be faced with the situation that just the interest on its debt would exceed all of its tax revenues.
Although US President Barack Obama has called the increase in USA debt ‘unsustainable.’ it has massively increased under his administration faster than any previous administration.
Since the debt increases are ‘unsustainable,’ yet the US government with its accomplices at the US Federal Reserve facilitating it, what will happen?
Notice some of what is recorded in the Book of Habakkuk:
2 Then the Lord answered me and said:
“Write the vision
And make it plain on tablets,
That he may run who reads it.
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. (Habakkuk 2:2-3)
Notice that the above is saying that something really, really bad will happen in the appointed time of the end. That means this has future application. Notice also that what is coming will be so bad that the time will come when people should run/flee when it does happen (consider also the article There is a Place of Safety for the Philadelphians. Why it May Be Petra). The time will come when thosePhiladelphians who understand Habakkuk 2 in its proper timeframe will flee.
So, what is this prophecy related to?
Notice what else the Prophet Habakkuk was inspired to record: ... Read full article
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