The Coming Inflation

Revelation 6:5-6 warns of days of famine in our future. When He broke the third seal, I heard the third living creature saying, “Come.” I looked, and behold, a black horse; and he who sat on it had a pair of scales in his hand. And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.” A denarius was roughly a day’s wage. A quart of wheat or three quarts of barley would barely make a loaf of bread. In the coming days of inflation, it will take a day’s work to scrape enough floor for bread and water. The oil and wine will become scarce commodities worthy of armed protection.

I’m no economist, but it is easy to see that the groundwork for such inflation has already been placed. “Hyperinflation” is the rampant, out-of-control devaluation of currency. It has happened in Germany after WWI, in Yugoslavia in the 1990’s, and in Zimbabwe in this decade.
More money is not equal to more wealth. In fact, just the opposite is true. Our economic system is built on a need for growth. This has even come down to a personal level. We buy today, planning to pay tomorrow, because we will have more money tomorrow. This has worked fine as long as we had more money tomorrow. Many individuals have come to a “day of reckoning” and had catastrophe. When this happens to governments, they simply print more money to pay the bill.

In the United States, we have been able to finance our increase in “wealth” by borrowing money, in large part, from China. But with China’s economy in its own troubles, it is unlikely they will continue to invest their wealth into our pockets. This means that the inflow of wealth to pay for the printing of money will stop. But, the printing of money will not stop. Money will be printed, by necessity, to pay bills already due.

So what if our system collapses and our money becomes worthless? The first noticeable inflation will be in food costs and energy costs. These will skyrocket, and quickly. Because these are essential, we will begin to go without new clothes, electronics, newer and larger cars, appliances, and so forth. This will cause a huge decline in consumer spending. So? The American economy is 70% consumer spending! So when consumer spending declines, unemployment will increase at alarming rates. Houses will go unsold, cars will sit on the lot, and malls will be empty.

What will the government do to fix the problem? Print money, of course! In addition, there will likely be price controls so that consumers will be able to afford the loaf of bread. These price controls, however, will make production unfeasible, and bread will become unavailable.
The dollars you have are worth far less than just a few years ago. The stocks you have are likely worth far less than a few years ago. The house you have may even be worth less than a few years ago.

If the direction of our government is any indication, there is a coming economic collapse. Your financial net worth is at risk.

The Bible tells us these days are coming. I believe in a rapture of the church, but I see no guarantees that we are saved from hyperinflation to come, only from the wrath to come! Hyperinflation could begin anytime.

It is time to prepare. Stay tuned for the next post on wealth-protection strategies for hyperinflation.

In the mean-time, you will benefit from this three-part documentary on inflation.







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