#22 – The Fall of “Babylon”
A couple of months ago, mid-October, I postulated that the reign of the beast had ended on Rosh Hashanah (Yom Teruah). The signs of such were subtle early on, but those signs went on to accelerate and culminate in a landslide victory for Donald Trump. The Democrat Party was decimated in many ways and will require years to rebuild . . . if they get that chance.
The Beast, aka the Deep State, was/is heavily invested in the progressive Democrat Party in the US, as well as the US intelligence community. Indeed, it’s reliant upon a worldwide intelligence community and progressive governments, and the US is not the only country that has seen a major upheaval in the political realm. Argentina, with Javier Milei at the helm, was first. Italy voted in a conservative leader, Prime Minister Georgia Meloni, soon after. Over the past two months, we have seen the progressive governments of Germany and France fall. Britain is teetering on that brink as well. In our neighbor, Canada, polls show Trudeau, a Deep State darling, falling into irrelevance with his party likely to receive only 5 parliamentary seats in the next election, according to a post-Christmas poll. Yes, IMO, the reign of the Deep State, the Beast, is over.
So, what’s next? Well, the Deep State won’t just roll over and give in. Now comes what is perhaps the most dangerous part. In Revelation 18, we see a richly adorned woman, the whore of Babylon, riding the Beast. I won’t get into the significance of Babylon here, but suffice it to say that the woman represents the corrupt, worldly culture we live in. And with the Beast’s reign ended, it now turns on the woman. We see now the fall of that worldly culture.
Are we headed there? Again, there are signs we may be. Using the US as my model–since I live here and can witness firsthand what is happening–we’re seeing plans being laid to foil the populist conservative movement led by Trump. The Biden administration is laying out all sorts of last-minute regulations and executive orders in their attempt to stop Trump from draining the swamp.
Allow me to get technical for a moment because it’s the Federal Reserve that holds the greater danger. Its current monetary policy is somewhat schizophrenic. They’ve been cutting interest rates as if anticipating a financial crisis, such as happened in 2007 preceding the major recession (depression?) of 2008-9. But that’s where the similarity ends. In 2007, the Fed began buying government securities from its member banks, increasing the supply of dollars and forcing the fed funds rate down. With this “qualitative easing” the member banks accumulated large deposits at the Fed that soon separated interest rate policies from the management of the money supply. Now, the Fed can lower or raise interest rates without having to manage the money supply. This lowers the exponential effect that both lower rates and more “base money” has on the economy.
Today, the Fed’s balance sheet has dropped from $8.9 trillion to $6.9 trillion in just over three months. So, while lowering rates is usually associated with increasing the money supply, the Fed is trying to lower rates while decreasing the money supply. Fed Chairman Powell added a third variable, called reverse repos, where banks, typically those in trouble, can buy a security from the Fed on a short-term basis. In essence this is lending cash to the Fed. The years of near zero interest rates created a problem for the markets, so Powell raised the reverse repo rates on banks. Between January 2021 and June 2023, the reverse repo market went from near zero to $2.2 trillion. That is basically where the $2 trillion drop in the Fed’s balance sheet went. It’s money that’s not available for other uses. But now (Dec 2024), that reverse repo market “cushion” is almost gone (~$800 billion).
This is where the danger arises. Everything is so out of kilter that should the Fed decide to continue tightening the money supply as well as interest rates (ie, decreases its balance sheet while raising rates), it will break the economy that is used to artificially-low interest rates and bankrupt the federal government, which has to keep paying interest on its $32 trillion debt. On the other hand, if it loosens money and interest rates (ie, adds money to its balance sheet while lowering rates), inflation will skyrocket, making Biden’s inflation look anemic. The Fed has the option of lowering interest rates as well as decreasing the money supply, but that will have its own share of economic pain, as there won’t be money to loan to people and businesses despite the lower rates.
Could this be the trigger to the fall of “Babylon?” Perhaps. Despite all of the euphoria in some circles over Trump’s return to the Oval Office, along with his appointees in crucial offices, we could be in for a very rough ride. And for the conspiracy theorists, this might not be simply due to miscalculations by the Fed. This could be exactly what the Deep State has planned.