Fed: Printing presses to keep on rolling

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100928758-173951706r_240x160CNBC: “Interest rates will hold near zero and the Federal Reserve will continue buying $85 billion in bonds every month while the economy continues to improve at a “modest” pace, the central bank said Wednesday.

Amid a backdrop of gradually improving economic data and concerns of asset price inflation, the Fed provided no further clues after its policy meeting this week that it will be easing back the throttle on easy money.”

Opinion: All of a sudden, printing counterfeit money is a good thing. The business world held its collective breath for two days in anticipation of yesterday’s statement by Fed chief Bernanke. Markets barely moved. So, Helicopter Ben, named for dropping money from the air, is going to keep on printing despite a better than expected GDP report earlier in the day.

What the government won’t tell you, however, is that they recently changed the way they calculate GDP; it is undoubtedly why a slight improvement was reported. Translation = if you don’t like the economic numbers, change the way they’re calculated and, whamo- fix-o, Batman, everything looks better.

The Bible says that during the Tribulation period there will be great economic distress. The Rider on the Black Horse (Revelation 6:5) carries scales and the message is that it will take a day’s labor for a day’s food, suggesting inflation. The rich, symbolized by the oil and wine, are affected last. Makes sense.

Today’s financial gurus are convinced that the world’s economies are deflating and that there is no inflation in sight, as the Black Horse Rider indicates. So, what’s the deal?  If there is no inflation on the horizon, can we just assume that the Black Horse Rider is a long way off?

No, and here’s why: Unlike regular inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in prices and in the supply of money, and the cost of goods.

Hyperinflation is often associated with wars, their aftermath, sociopolitical upheavals, or other crises that make it difficult for the government to tax the population, as a sudden and sharp decrease in tax revenue coupled with a strong effort to maintain the status quo can be a direct trigger of hyperinflation.

Let’s see, wars or social upheaval, naw, there’s no worry there.