As readers know, Fed Chairman Bernanke has launched another “quantitative easing” program, a policy which we laymen could call making money out of thin air and hoping everyone agrees to pretend it is real money. This may help the US economy temporarily, but in the long run it could prove to be disastrous for both the USA and the Fed itself. Other nations are already worried about the Fed’s huge money-creation policy, and they could take retaliatory measures of their own. The links [1, 2] below document that Germany, China and Brazil are already openly opposing the US Fed’s policy. This major disagreement among the nations over currency and fiscal policies could lead to a trade war and/or a currency war.

Germany’s Economy Minister expressed his “concern” about the US Fed’s policy and warned that a possible trade war would be a  “disaster.” An advisor to the Chinese central bank warned about “unbridled printing of dollars.” The Chinese official also warned that “as long as the world exercises no restraint in issuing global currencies such as the dollar… the occurrence of another crisis is inevitable (emphasis added).” The third link states that “Brazilian officials from the president down have slammed the Federal Reserve’s decision…warning that it could lead to retaliatory measures.”

Buckle your seat-belts. We are in for a rough ride in the future as nations start defending themselves against the US Fed’s policy of inflating the US dollar. China has a right to be very concerned as much of its foreign exchange reserves are held in US dollars, the value of which will decrease as the US dollar inevitably slides lower due to the Fed’s action. Germany and the USA will part company quickly on monetary and fiscal policy due to each nation’s history. While the USA will pursue inflation to avoid a repeat of the Great Depression of the 1930s, Germany will prefer deflation and money-tightening to avoid any repeat of the wild inflation experienced in the German Weimar Republic in the 1920s which led to the election of Adolf Hitler. As more and more nations resent the inflationary policies of the US Fed, those nations will hasten their efforts to develop a new global currency to insulate themselves from the US dollar’s slow destruction.

The US Fed is acting like a law unto itself, manipulating the US economy without so much as a nod to the US Congress, the body which is supposed to control all money bills under the US Constitution. Here’s how I see it: If the Fed continues to sacrifice the US dollar and the US people in its efforts to save the Big Banks whose recklessness caused the global financial traumas of the last few years, the US Congress may turn on the Fed. The US elections, which brought the GOP into a large majority in the US House, could lead to some very interesting confrontations between the Fed and the US Congress.

Rep. Ron Paul (R-TX) is the House Member who has led the effort to audit the Fed and restore some fiscal/monetary soundness to the US government. Rep. Paul is a huge critic of the Fed and he may be the Chairman of the House Subcommittee which oversees the Fed (see last link below). You can imagine what this could lead to if he receives subpoena power from the House leadership to investigate the Fed. In a conflict between the Congress and the Fed, the Fed will lose because its charter to be the USA’s central bank could be revoked by an angry Congress. The Congress created the Fed and it can vote it out of existence if it decides to do so. If such a thing happened, it would almost certainly lead to the fall of the current global money system of Babylon the Great, just as Revelation 17-18 prophesied would occur in the latter days of our age.

For new readers, I suggest reading two articles available for free at this website: Is Babylon the Great about to Fall…Ushering in a New Beast System? and What Kind of Captivity? The first article contains an in-depth analysis of Revelation 17-18 in light of current global geopolitics and examines how the current global system might collapse. The second article documents that the Bible calls our modern global, central bank-based financial system “Babylon the Great” because the origins of the modern banking system began in ancient Babylon. Hardly anyone in the USA realizes this fact and I’ll bet few in Congress realize it either. However, I would not be surprised if Ron Paul realizes it.