Economic Update August 2017

A  major player in our economy is the Federal Reserve. They are part of the  International Banking Cartel (The World Bank), not part of our  government. In fact they are the largest holder of US Government debt.  Some time in the future, they could force our government into  bankruptcy.  
Currently  the news media is still yelling about Russia interfering with our  elections, but they continue to ignore the Federal Reserve meddling in  our elections. In early part of 2000 (being an election year), when Bill  Clinton was in office they dumped large amounts of money into the  economy to give it a boost for the election. And in early 2008 (also an  election year) when George W. Bush was in office, they pulled major  amounts of money out of the economy, causing the 2008 recession, causing  the election of Barack Obama. It appears the Federal Reserve wants  Democrats in office.  
During  the Obama administration the Federal Reserve did everything it could to  keep the economy afloat. The Federal Reserve increased Currency in  Circulation from $886 billion in January 2009 to $1503 billion in  January 2017. An increase of 70 percent. Fed Funds Interest Rate was  kept near zero (.25 percent) during most of the Obama administration. In  December 2007 (prior to election year) the Fed raised the rate to .5  percent. Because of the super low Fed Funds Rate the Obama  administration was able to increase the National Debt by about 85  percent, with little immediate affect on the economy.  
Since  the election of Donald Trump the economy has been fueled by optimism.  Our new president being pro-business will help sustain growth for our  economy. The Federal Reserve is attempting to slow our economy down.  Since the election there has been 3 rate hikes in the Fed Funds Rate  (currently 1.25 percent). Short term Treasury Bills are currently  getting above 1 percent. Even one of the local banks has raised their  money market rate to over 1 percent. Even with these increases in the  interest rates, the economy continues to grow.  
There  is a hidden trap awaiting our economy. The published national debt is  currently about $20 trillion. ($20,000,000,000) The 3 interest rate  hikes from the Federal Reserve brings the current interest on the  national debt to $250 billion per year. If the Fed raises the rate to 5  percent as they did during the George W Bush administration, yearly  interest on the current national debt would raise to $1 trillion. With  the total income to the federal government being about $3.5 trillion,  the interest on the debt can quickly become insurmountable.  
It  appears, optimism will continue to fuel our economy. Natural or man  made disaster would of course change things, but our economy could  survive. The greatest visible threat to our economy is the Federal  Reserve raising the interest rate to more traditional levels. As the  interest rates rise our Federal government will be forced to cut other  spending or raise our debt even more rapidly. It becomes a never ending  problem until our economy can no longer support our government debt. I  believe, when our economy collapses under massive debt, our country will  be forced into excepting a One World Electronic Currency. Revelation 13  says there will be a world wide economic system that no man can buy or  sell without it. How close are we to that day?  

In the service of the Most High 

Ron Stange  


Resources 

Federal Reserve Interest Rate -   
https://www.thebalance.com/fed-funds-rate-history-highs-lows-3306135 

Currency in Circulation https://fred.stlouisfed.org/series/WCURCIR 

Federal Government Income https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762

Written by Ronald Stange - August 2017

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