Friday, May 29, 2009
What is next for the economy?
The government bailing out banks and financial institutions by giving them money that they basically just declared to be available makes the value of the money less. This causes inflation which means the prices of everything goes up faster than wages causing every one's buying power to be reduced. Our government thinks inflation can be controlled by raising interest rates on money loaned but it remains to be seen if they will have the wisdom to act before it is too late and the huge accumulating pile of inflationary fuel is ignited.
Fears of inflation is what is currently driving up the price of oil. We are still in a recession which means the demand for oil should be lower than usual. With no drop in production, or an immediate threat to production, there is no reason for the price of oil to be going up. But demand is increasing as investors seek to acquire oil while it is relatively cheap as a hedge against inflation. Such fears coupled with rising prices when the world starts coming out of the recession and "easy" money from low interest loans will trigger inflation.
Inflation on a world-wide level is a sign of being close to the return of Jesus. Inflation will get so bad during the Tribulation that food for a typical family will cost a day's wages... as Revelation 6:6 says, "a quart of wheat for a denarius, and three quarts of barley for a denarius" (NKJ). Talk about living paycheck-to-paycheck; everyone will be going in debt just to survive.
Inflation is like a hidden tax. A government that wants its people dependant on them doesn't need to increase taxes, they can achieve the same effect by stoking inflation. The Lord will hold accountable those who perpetrated this crime on people... "Indeed the wages of the laborers who mowed your fields, which you kept back by fraud, cry out; and the cries of the reapers have reached the ears of the Lord of Sabbath. You have lived on the earth in pleasure and luxury; you have fattened your hearts as in a day of slaughter. You have condemned, you have murdered the just; he does not resist you. Therefore be patient, brethren, until the coming of the Lord. See how the farmer waits for the precious fruit of the earth, waiting patiently for it until it receives the early and latter rain. You also be patient. Establish your hearts, for the coming of the Lord is at hand." (James 5:4-8, NKJ)