A Caution About Hyperinflation

It's important that people understand an important concept (regardless of whether it is good news or not).  In the past it may have been that Christmas shopping provided a substantial boost to the U.S. economy (providing an excuse for people to engage in consumerism rather than storing their treasures in heaven).  However, that was at a time when much of the goods being purchased were manufactured in the U.S., thereby helping American companies throughout the supply chain.

On the surface, the economic impact of millions of shoppers bumping into one another and fighting over the latest hot item "in limited supply" seems healthy to our economy.  To some extent, it does help retail stores, restaurants, etc. that are dealing with one of their busiest days of the year.  However, we must also recognize that much of the goods being purchased are manufactured in other countries, particularly China.  Thus, the economic impact of consumerism is considerably less than it once was because the jobs that are being supported are primarily low-wage service jobs (often with low or no benefits), while in the past our purchases supported  both those jobs and the high-wage manufacturing jobs associated with the American goods being purchased.

Purchasing foreign goods, however, contributes to the United States' trade deficits, which have ballooned in the past decade and show no signs of leveling off.  Quite simply, Americans spend more on foreign goods than other countries spend on ours.  As we continue to shift manufacturing overseas, we have no way to bring that back into balance.  The problem with this can seem subtle until you see it for what it really is: we are spending more than we are earning.  Of course, we know intuitively that one cannot run a personal budget like that for any period of time without experiencing serious financial problems.  As we expand that concept to a macroeconomic scale, the same basic problem exists, except arguable much worse because it's a national economy at serious risk.  The old adage, "the bigger they come, they harder they fall" may very well apply.

One day the U.S. debt to other countries (particularly China) is going to come due, and when that happens the only way the Federal Government is going to be able to repay the debt is to print more fiat money.  Increasing the supply of money, however, will only lessen the purchasing power of each dollar.  It's otherwise know as inflation, and that is not a good thing.  To some extent we know that inflation is inevitable, as it's predicted to happen in the Bible.  Revelation 6:6 forewarns that it will take a day's wages to purchase food alone.  What is all the more ominous is that it will not likely be confined to any nation, since Bible prophecy most certainly is not intended for the U.S. only (actually, it's as much or more intended for other countries).  Regardless of the country you call home, at a personal level we all should be as prepared as possible to survive economic hard times.

As we watch these events unfold, I'd like to leave you with the words of Jesus in Luke 21:36, “Be always on the watch, and pray that you may be able to escape all that is about to happen, and that you may be able to stand before the Son of Man”.

Related Links:

Pray That You May Escape (Book)

The Coming Economic Armeggedon (book)

China, Russia quit dollar

---

For more information, watch these related videos about inflation:

Many experts are predicting that we are heading into a hyperinflationary period. These three videos explain that concept in sobering terms:

The next video features Peter Schiff who is not a "Bible prophecy guy", but someone that predicted the current recession well before it happened (all the while being scoffed at).  He continues to forecast, via economic analysis, that the recession will get worse, much worse.  He predicts that inflation is just around the corner and price of basic necessities such as energy and food will especially increase.  We also know that Bible prophecy warns us of inflation in Revelation 6:6, where it will require a day's wages just to purchase food, which will be priced very high.

Yet another economic forecaster says times will get especially bad, and civil unrest will eventually be seen.  We also know from scripture that it will not be a good environment, for in 2 Timothy 3:1-4 we read, "But mark this: There will be terrible times in the last days.  People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy, without love, unforgiving, slanderous, without self-control, brutal, not lovers of the good, treacherous, rash, conceited, lovers of pleasure rather than lovers of God."

Along with many other issues, the topic of inflation is also discussed in the book, Pray That You May Escape.

Book Review: The Coming Oil Storm - by Ron Rhodes

			The Coming Oil Storm by Ron Rhodes
I heard Ron Rhodes being interviewed on a radio show and was fascinated with the insight he brings to the topic of end-times Bible prophecy (a.k.a. "eschatology"), particularly from the perspective of how the oil industry could have a role in events foretold to happen in the Bible. Consequently I got a copy of his book (that day) and enjoyed it very much. He has obviously done a lot of research and supports what he says with convincing facts and analysis. Having also written a book about end-times events, I can report that Ron Rhodes has a rock solid understanding of eschatology. It was interesting to see him "explore" the topic at a deeper level than just lightly touching on a possible theory. As a result, The Coming Oil Storm is very convincing that, indeed, oil may be a catalyst in many of the end-times events we read about in scripture. Some of the main points I came away with, which I encourage you to read for yourself to understand better, is: Oil is a finite resource and is getting more difficult (and expensive) to extract. Much of the world's supply of oil is located in a very volatile region (the Middle East) in countries that are not friendly to the U.S. nor Israel. While the supply of oil is decreasing, the demand on oil is increasing because of the increase in consumption by countries such as China and India. Oil (or lack thereof) could be used as a weapon against the U.S. (it really is a matter of "national security"). Oil is vital to the economy and could also be used as an "economic weapon" against an already fragile economy. It is odd that the U.S., being a superpower and friend of Israel, is conspicuously absent from scripture that discusses the end times. Could the United States' reliance on oil be a reason why? The author also addresses other topics, such as how the purchase of oil essentially funds terrorism and how other events, coupled with oil (or the lack thereof) could influence end-times events. There is also an important section for people that also want to know "what to do" and for anyone that may not be a Christian. In summary: this book is very well researched and worth reading. - Jeffrey R. Camino, Author    Pray That You May Escape

Book Review: The Coming Economic Armageddon - by David Jeremiah

			The Coming Economic Armageddon: What Bible Prophecy Warns about the New Global Economy by David Jeremiah
Dr. Jeremiah is a good writer and does a great job of explaining, in sobering terms, how we ended up in the economic mess that we are in; and, more importantly, where we are going. He does so via the science/art of economics and, of course, by understanding God's infallible prophetic Word. My degree is in Business Management and I read a lot about economics (in fact, Peter Schiff's recent book entitled Crash Proof 2.0 is a great book from a secular author that echoes much of what Jeremiah says--though I think Jeremiah's is better since it approaches the subject from a Christian worldview). I have also studied Bible prophecy for many years (and wrote a book entitled Pray That You May Escape that is becoming increasingly popular). I say that to hopefully explain that I especially enjoy the subjects of economics and Bible prophecy and, thus, can write with reasonable authority that David Jeremiah addresses both of those topics exceptionally well. He explains how the world economy is more interrelated than ever. There is also a good presentation of how the Social Security System is little more than a grand "ponzi scheme" on the brink of collapse; and how the economic health of a "superpower" can impact many other areas of a nation, such as it's international political and military influence. A good explanation of how debt at either an individual or national level eventually leads to serious financial problems and that pumping "fiat money" into an economy at the rate we have will lead to inflation is provided. We know that scenario (inflation, wherein it will take a day's wages just to buy food) is predicted to happen in the end times according to Revelation 6:6. Further in the book Jeremiah turns to what he knows best: end times prophecy. As a result, the reader will find a rock solid discussion of how a "new world order" will play a role in the end times, how the Antichrist will be able to control who may buy and sell, the mark of the beast, and other important topics. Readers of his previous books, such as What in the World is Going On?, will find a good bit of redundancy; but they will also see it being explained from a more economic angle. If you haven't read a previous book by Dr. Jeremiah, I think one could jump right into this one and not miss much and, thus, since this one is most current, I would say get this one. In the end, Dr Jeremiah delivers a good book well worth reading and, once again, makes a valuable contribution to the idea that Christians should now, more than ever, learn as much as possible about end-times Bible prophecy given the times in which we live. - Jeffrey R. Camino, Author Pray That You May Escape