Zero Hedge: Earlier this week, the WSJ put out an article titled “Powell Says Solid Economy Supports Further Fed Rate Increases”, in which it rambles on about how supposedly great the economy is. But how great is it really?
We are now 10 years post the largest financial crisis in American/world history, and the Fed has just hiked the Fed Funds rate to between 1.75% and 2%. Using historical measures, the current Fed Funds rate is still at crisis levels, or where Greenspan had lowered the rate to following the 2000 collapse. So, after 8 years of ZIRP, and multiple rounds of QE, how is the state of the economy? Well, to start out with, a new record of 95,919,000 Americans are now out of the workforce. Again, some will say that is mainly due to baby boomers retiring, but if one is to look at a chart of workers aged 55 or older who are still working, it quickly dispels that narrative.
Americans are also in record debt, currently $13.2 Trillion, but the economists say it is nothing to worry about. Meanwhile Americans saving rate is near record lows, with a survey in September of 2016 stating that 69% of Americans have less than a $1000 in savings. more …
Opinion: “The rich rule over the poor, and the borrower is slave to the lender” Proverbs 22:7
The good news first:
The US economy has received an injection of adrenaline. In the first 1.5 years of the Trump Administration, government agencies have withdrawn or delayed 1,579 planned regulatory actions.
- 635 regulations were withdrawn.
- 244 regulations were made inactive.
- 700 regulations were delayed.
Dozens of business strangling environmental regulations have been rolled back and small and big corporations received tax cuts creating jobs galore.
The bad news:
The US has completely forgotten that the debt we admit to has crossed $21 trillion with no sign of even making a dent in the number, while the debt the US does not count (Medicare, Medicaid and Social Security) could be as high as $125 trillion (give or take $20 trillion) and one day a time of reckoning will happen.
The prophet Haggai 1:6 described this future time as a man’s purse with holes:
“You have sown much, and bring in little; you eat, but you have not enough; you drink, but you are not filled with drink; you clothe you, but there is none warm; and he that earns wages earns wages to put it into a bag with holes”.
The apostle John in Revelation 6:5-6, describes a time of scarcity on Earth:
“When He opened the third seal, I heard the third living creature say, “Come and
see.” So I looked, and behold, a black horse, and he who sat on it had a pair of
scales in his hand. And I heard a voice in the midst of the four living creatures
saying, “A quart of wheat for a denarius, and three quarts of barley for a
denarius; and do not harm the oil and the wine.”
Both prophecies indicate hyperinflation and while most economists say it can’t happen here, it is happening in Venezuela and it will happen on a global scale in the tribulation.
The US economy, like the EU and Japan, is drowning in debt. As long as the US dollar remains the world reserve currency, we can continue to keep the charade going.