The chair of the US Federal Reserve testified before the Congress of the USA today:
December 3, 2015
WASHINGTON — Federal Reserve Chair Janet Yellen told Congress Thursday that economic conditions appear to be improving enough for policymakers to raise interest rates when they meet in two weeks — as long as there are no major shocks that undermine confidence.
Yellen said that even after the first rate hike, the Fed expects future rate increases will be at a gradual pace that will keep borrowing costs low for consumers and businesses.
“Were the FOMC to delay the start … for too long,” she said, referring to the rate-setting Federal Open Market Committee, “we would likely end up having to tighten policy relatively abruptly to keep the economy from overshooting” the Fed’s goals for unemployment and inflation.
“Such an abrupt tightening would risk disrupting financial markets and perhaps even inadvertently push the economy into a recession.” http://www.nbcnews.com/business/economy/feds-yellen-testifies-economy-strong-enough-handle-rate-hike-n473756
The Federal Reserve is scheduled to meet on December 14th and 15th and may then decide to raise interest rates.
Janet Yellen’s view is correct that increasing rates sooner and gradually is less disruptive to the economy.
But that will not stave off what will ultimately happen.
The USA has been playing financial games that will contribute to its destruction in the long-run. Artificially controlling interest rates (keeping them lower than what a market without government invention of false assets) makes most feel that the USA has its financial condition under control. But that is not the case.
In fiscal year 2015, the federal budget is $3.8 trillion. These trillions of dollars make up about 21 percent of the U.S. economy (https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/ accessed 11/04/15)
The USA currently has over$18 trillion dollars in debt and is heading towards $20 trillion with the latest budget deal that a Republican-controlled Congress and a Democrat president agreed to this Fall. Should interest rates ever rise above 19%, then the interest cost on the debt alone will equal the total of ALL expected US federal government spending.
While that may seem far fetched to some, the interest rates at some point in time will rise past that level and the USA dollar will be worth little more than the cotton-paper it is often printed on (much USA money is actually electronic only, and electronic entries at some point in time will have no particular value).
You might think, well, why don’t you use more historically likely rates, say 8%. Well at 8%, assuming a US$20 trillion debt, then just the payment of interest will be nearly one-half of all federal spending. And since it is not likely that the politicians will cut the other spending to compensate, we can properly conclude that the USA would then increase its total debt at an even higher clip.
Some have concerns that the US dollar will collapse or start to collapse this year and some details are in the following relatively short videos:
A long-time financial adviser named Harvey Organ claims that claims that because of insufficient gold in the central banks of USA and UK, that Shanghai would bring about exposing this and that this would lead to a massive, overnight, rise in the price of gold and silver, diminished value of their currencies. He states a market collapse will occur before the end of 2014, that the petroyuan will replace the petrodollar, and that a Chinese led New World Order will be in place for 2015. Is this possible? Where does the leader of the ‘New World Order’ come from? What does the Bible teach?
Jim Rickards once worked for the CIA and also was once part of a a USA government program called called ‘Project Prophecy.’ He has a video were he claims that starting in 2015, the USA may have economic collapse resulting in a 25-Year Great Depression. He mainly cites debt figures and claims advises alternatives to the USA dollar which he says will collapse? What did Rand Paul state? Can the USA dollar collapse? Does anything he advises agree with Bible prophecy? What does the Bible show is coming? Does the Bible show a future collapse of the USA dollar? What about the Euro, silver, or gold? Dr. Thiel addresses these.
According to financial reporter Porter Stansberry, the USA is ushering in the collapse of the US dollar through its debt, regulations such as FATCA, and other policies. Porter Stansberry proposed that marshal law could be implemented in the USA. Is any of this possible? Will there end up being a collapse of the USA dollar? While parts of FATCA have been delayed, will the USA end up losing its economic dominance? What does Bible prophecy reveal?
While as I have been publicly stating, the USA dollar will not collapse in 2015, the USA has taken steps to encourage others in the world to look for a way to replace the USA dollar as the world’s primary reserve currency. The IMF formally announced a couple of days ago, to include China’s currency in the “basket of currencies” for its SDR (Special Drawing Rights) (see IMF adding China’s currency to its basket).
There will be ‘bumps in the road’ until the Europeans (Daniel 2:41-43) and others are able to replace the USA dollar. There even could be an extended time that the USA dollar will remain on top.
But that will change quickly...
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