Desperate to Stimulate World Economy

Steven LeBlanc

Global central banks continue to cut interest rates in a desperate attempt to stimulate their economies. In Europe unemployment rates are rising at an alarming rate and Japan is fighting vigorously to defeat deflation.

As of late several countries have been cutting their interest rates and more are joining in. Israel just cut their Interest rates this week.

The following central banks have cut interest rates over the past few months: The Reserve bank of Australia, the European Central Bank, the Reserve Bank of India, the Bank of Japan, the Bank of England, Sri Lanka and Vietnam. Elsewhere in the world banking giant Morgan Stanley sees added interest rate cuts taking place in Poland, Turkey, Russia. Hungary and the Philippines. South Korea’s recent rate cute was the 511th reduction by a central bank since June 2007.

The dangerous is once the global stimulus takes hold inflation could rare its ugly head—and inflation is very difficult to control. Banks continue to cut rates because their economies are stagnating or getting worse. Lower interest rates boost the money supply, which should boost economic activity—but this has hardly worked so far.

Never before in modern history have so many banks eased credit so quickly. This is a new experience and we do not know how it will eventually turn out. Dallas Federal Reserve President Richard Fisher offered a disturbing assessment concerning cutting interest rates:

“Nobody really knows what will work to get the economy back on course. And nobody-in fact, no central bank anywhere on the planet-has the experience of successfully navigating a return home from the place in which we now find ourselves. No central bank-not, at least, the Federal Reserve-has ever been on this cruise before.”

The excessive printing of money by the world’s central banks may seem “to help” in the immediate future, but don’t be surprised to see eventual distortions arise in the global economy—unforeseen distortions that will cause harm. Eventually we will reap what we sow. Do not be deceived: God is not mocked, for whatever one sows, that will he also reap. Galatians 6:7.

Monitoring the global fiscal landscape is important because the final Beast power is a wealthy power.

So let me remind you…the economic shift over the next years will move more and more toward Europe—meaning Europe will ultimately become the great economic power of the world.

The final resurrection of the Roman Empire will encapsulate a religious, political and economic structure. This great economic system (of Europe) is “eulogized” in a lamentation found in Revelation 18:

“And he cried mightily with a strong voice, saying, Babylon the great is fallen, is fallen…. For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies” (verses 2-3).

In this chapter the thrust of the lamentation focuses on the ability of the Beast to trade with the nations of the world. Those merchants will have become rich through the trade promoted by Babylon (European Beast–verse 15). Remember, Europe fits well the description of end time Babylon with its assorted cluster of Nations, languages, cultures and peoples.

The “merchants of the earth shall weep and mourn over her,” because their ability to trade their goods will suddenly end—Christ will destroy end-time Babylon (verse 11, 20-21).

The years ahead promise to be very volatile. The massive easing by the central banks of the world is something “new”—the outcome is unpredictable and fiscally dangerous.

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