The US Federal Reserve is likely to lift interest rates for the first time next week in almost 10 years.
However, both the IMF and the World Bank have been consistently warning the US Federal reserve against such a decision.
“the World Bank and IMF are urging the Fed not to raise rates until 2016 because the U.S. economy isn’t strong enough yet”
Today, the World Bank stepped up its rhetoric:
The Federal Reserve will cause “panic and turmoil” if it raises interest rates in the next few weeks, the World Bank’s chief economist has warned.
It was during this time that the Central Bank of Central Banks (The BIS) had also warned that the world is defenseless against the next Financial Crisis:
Further to this, the leading financial markets news site in the US (Wall Street Journal) reported the following as the Greece crisis began to unfold a few months back:
“Talk to almost any banker, investor or hedge-fund manager today and one topic is likely to dominate the conversation: It isn’t Greece.
The fear is that a Fed rate increase could unleash such disruptions on a grand scale.”
~ Wall Street Journal
The picture couldn’t be clearer; this is an event that has had many people worried for many months.
Will there be turmoil and panic next week? We dont know.
Many US evangelical pastors have been warning of a Shemitah collapse. Whether a financial crisis does or doesn’t happen, we have little reason to believe that there is any scriptural precedent for applying the Shemitah cycle to the US instead of Israel as it was originally intended.
One thing is for sure, this month wont be lacking in financial crisis flash points. Here are at least two coming up in the next few weeks:
- The Greek Prime Minister is up for re-election on the 20th of September. Polls suggest that he wont be voted in as originally expected which will put the latest round of bailouts under significant risk. This could also be a flash-point for significant change in the geopolitics of the Eurozone.
- Remember the Government Shutdown of 2013? Well the US House of Representatives passed a bill a few years back to end the crisis temporarily until the 30th of September 2015. Once again, republicans are gearing up to see if they use a shutdown as political blackmail.
Other posts about a Financial Crisis:
- Isaiah talks of a time when there will be one great and final financial crisis.
- The Dow Jones 1000 point drop a few weeks ago is a reminder of Luke 17.