Fed’s Yellen warns Brexit could hurt US economy

Janet Yellen, Federal Reserve Chair

Janet Yellen, Federal Reserve Chair


The chair of the US Federal Reserve seems very concerned about this week’s ‘Brexit’ vote:

June 21, 2016

The chair of the U.S. Federal Reserve says that the upcoming vote in Britain over leaving the European Union “could have significant economic repercussions.”

In delivering a twice-a-year economic report to Congress on Tuesday, Janet Yellen highlighted Thursday’s British vote as a key source of uncertainty that would require the central bank to proceed cautiously as it looks to lift interest rates to more normal levels.

The Fed had until recently been expected to raise rates again in June, following a first hike in December since before the global financial crisis, but held off amid weaker economic data and concern over the British vote. https://www.washingtonpost.com/business/the-latest-soccer-star-david-beckham-voting-to-stay-in-eu/2016/06/21/5f389f7e-378a-11e6-af02-1df55f0c77ff_story.html

June 21, 2016

Concern Britain, the world’s fifth-largest economy, will leave the EU has weighed on financial markets for weeks and has been cited by central bankers, including Yellen, as a major obstacle for the global economy.http://www.reuters.com/article/us-global-markets-idUSKCN0Z701O

It is not just the Europeans that will be affected if the UK pulls out of the European Union.  It will affect the USA as well. In the short run some might find it detrimental to the economy of the USA, but in the mid-run, it could prove beneficial.

The world economic situation is shaky and a possible vote by the UK to leave the EU (called a Brexit) could be perceived as a major danger to the economies of many countries. 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.

Notice what the Bible prophesies:

3 For when they say, “Peace and safety!” then sudden destruction comes upon them, as labor pains upon a pregnant woman. And they shall not escape. 4 But you, brethren, are not in darkness, so that this Day should overtake you as a thief. (1 Thessalonians 5:3-4)

2 And the Lord answered me:

“Write the vision;
make it plain on tablets,
so he may run who reads it.
3 For still the vision awaits its appointed time;
it hastens to the end—it will not lie.
If it seems slow, wait for it;
it will surely come; it will not delay.

4 “Behold, his soul is puffed up; it is not upright within him,
but the righteous shall live by his faith.

5 “Moreover, wine is a traitor,
an arrogant man who is never at rest.
His greed is as wide as Sheol;
like death he has never enough.
He gathers for himself all nations
and collects as his own all peoples.”

6 Shall not all these take up their taunt against him, with scoffing and riddles for him, and say,

“Woe to him who heaps up what is not his own—
for how long?—
and loads himself with pledges!”
7 Will not your debtors suddenly arise,
and those awake who will make you tremble?
Then you will be spoil for them.
8 Because you have plundered many nations,
all the remnant of the peoples shall plunder you,
for the blood of man and violence to the earth,
to cities and all who dwell in them. (Habakkuk 2:2-8; English Standard Version)

The USA and UK are both highly indebted.

Those who think the current world order with the USA’s dollar on top and a strong British pound will last through the end of this century are in error. The Brexit vote, leave or stay, will not change that.

Speaking of votes, the vote in November in the USA will not change that either.