Banking is the Problem


Astounding summary of the world’s economic problem by a 12-year old girl. (See video below)

Also: The Bank Runs In Greece Will Soon Be Followed By Bank Runs In Other European Nations 

Source: http://theeconomiccollapseblog.com/

Note: This article comes from an American/Canadian source but it applies equally elsewhere. In particular, the European banking system is about as profligate and irresponsible as you can get; plus the Euro currency system was set up as a vanity project without any safeguards and it was INEVITABLE that this situation would happen. Our only hope is to abandon both the Euro and the EU, but I know that’s never going to happen. Continue reading

Eurozone Crisis could prove to be “Global Earthquake”.


‘It’s going to be Lehman on steroids’

In an unusually stark warning, the head of the European Commission said leaders must find a convincing solution to Greece’s debt crisis when they meet today or the global economy will pay a heavy price.

Get a grip’, Chancellor urges EU leaders as they meet in last-ditch talks to save the euro amid debt crisis that ‘threatens Britain’

(Daily Mail 21st July 2011)

  • Nicolas Sarkozy makes ‘pact’ with Angela Merkel to gain German help
  • Crunch talks in Brussels could lead to death of euro if there’s no agreement
  • Osborne says crisis could lead Britain into recession as serious as 2008
  • British banks have £200bn tied up in weaker economies that risk default
  • UK homebuyers face costlier loans due to Greek, Spanish and Italian debt
  • Chancellor calls for single eurozone bonds
  • Clegg: ‘We are an not island economy. We can’t turn our back on the world’

George Osborne, The UK Chancellor of the Exchequer, urged European leaders to ‘get a grip’ when they meet today in a bid to resolve the debt crisis and warned that if action was not taken, ‘we see the potential for a set of economic events that could be as damaging as 2008

German chancellor Angela Merkel and French president Nicolas Sarkozy met and are believed to have made an agreement. One result of their talks announced this morning was a limited DEFAULT on the debt, but where that leads nobody can predict. It’s a very rocky road for all the other EU partners.

And, although Britain does not use the single currency, he said failure to deal with the financial calamity could engulf the UK. David Cameron said Britain faced ‘very bad consequences’ unless decisive action is taken.

Amid mounting fears that the economic recovery could now be reversed unless other countries start to get on top of their massive debts, Mr Cameron warned of a lack of leadership over the issue. That appeared to be a swipe at the French and German leaders ahead of the crunch Brussels summit. Others have echoed this feeling.

America Indecision

To add to the instability, American politicians appear unable to reach agreement on a move to raise government debt limits.

Former Treasury secretary Lawrence Summers warned last night of a ‘financial Armageddon’ and a worse economic crisis than in 2008 if a deal is not struck.

It’s going to be Lehman on steroids,’ Mr Summers declared, a reference to the bank that collapsed and triggered the first crisis. Without agreement by August 2, the U.S. government will have to impose immediate spending cuts of about 44 per cent to stave off a default on its huge debts.

CHRISTOPHER BOOKER: The euro now threatens the world with economic meltdown

 “No EU leader has ANY practical idea of what can be done to halt this gathering catastrophe.”

While Britain has seemingly been transfixed by ‘Murdoch-gate’, rolling down on us all like a tsunami is a crisis so immeasurably greater that by comparison it makes the misdemeanours of a few journalists, policemen and politicians look quite irrelevant.

Today, as the eurozone’s leaders gather in Brussels to discuss yet another bail-out for Greece — whose borrowings are expected to reach 172 per cent of its GDP soon — they do so against the background of a stark warning from the IMF that Europe’s runaway debt crisis is now threatening a global ‘earthquake’ that could wipe £400 billion off the value of the economies of the world, including our own.

A study by the think-tank Open Europe finds that the European Central Bank alone, in charge of the euro, now faces liabilities of £444 billion — a third of the entire value of Britain’s economy.

As this colossal shadow looms ever larger over our future, two things become clearer by the day. First, no one has any idea of just what mind-boggling sums are now at stake in this crisis.

The second is that no one — not the EU’s leaders, not the world’s bankers, not those in charge of institutions such as the International Monetary Fund or the European Central Bank — has any practical idea of what can be done to halt this gathering catastrophe.

Germany and the Netherlands are fiercely opposed to another massive Greek bail-out — some £400 billion is being demanded this time — arguing that private investors should now be made to weigh in and help. The European Central Bank is, however, utterly opposed to the involvement of private investors.

The likelihood is that the EU’s leaders will again come to some form of hopeless compromise that will temporarily save their faces, but will act only as a sticking plaster.

The truth is the politicians and the money men run around like headless chickens while Europe is on the point of being sucked down into a black hole, the depth of which no one can begin reliably to guess at.

Not a month goes by without further mountains of debt emerging into view — as Spain and Italy join the list of debtors headed by Greece, Ireland and Portugal. Gone are the days when it could be imagined that the richer countries of Europe, led by Germany, could happily afford to bail out the sums run up by the reckless borrowing of their poorer colleagues.

So vast is the problem that it is becoming obvious all the money in Europe couldn’t hope to solve this crisis, which threatens not just the countries of the eurozone, but also many other nations with an economic meltdown without historical precedent.

And all this has ultimately been brought about by the determination of Europe’s politicians to cling on, at almost any cost, to the most reckless single blunder in their 50-year-old dream of building what amounted to a ‘United States of Europe’.

It was way back in the Seventies, as they looked for new ways to ‘integrate’ Europe, when they first came up with the idea that there could be no more dramatic way to symbolise their dream than to unite Europe round a single currency.

This dream was never based on any hard-headed financial calculations. It was always just a political project, a way to weld all the different countries unshakeably together by giving their ‘Europe’ that supreme defining characteristic of a nation state, its own money.

Yet even in those early far-off days there were more practical men who warned that such a breathtakingly ambitious project could only work if ‘Europe’ was given a fully-fledged ‘economic government’, with the power to shift vast quantities of money and other resources from the richer countries to the poorer, in the hope that all their inequalities of income and economic performance could eventually be levelled out.

This was precisely the magisterial advice given by Sir Donald MacDougall, a top Treasury economist, when in 1978 he was commissioned by Roy Jenkins, then President of the European Commission, to produce an official report on the implications of any attempt to create a single currency.

But so intoxicated became Europe’s politicians by their political vision that when, in the Nineties, the foundations for the single currency were laid by men such as Jacques Delors, Helmut Kohl and Francois Mitterrand, all these hard-headed warnings were brushed aside.

And when their beloved euro finally came into being at the end of the 20th century, the script unfolded exactly as the sterner critics had predicted.

Right at its heart, the single currency was based on two crucial flaws. On the one hand, its founders took pride in the fact that all the countries which joined it could borrow money at a single, low interest rate.

This would assist the richer countries, such as Germany, to become even richer, by allowing their industries to expand. But it would also encourage poorer countries, such as Greece, Ireland, Portugal and Spain, to finance their own expansion by borrowing ever more recklessly.

We could be entering the darkest time the world has seen since World War II

Hitherto, when countries faced the crisis that would inevitably follow from such wild overspending, they had two ways to stave off disaster. One was that they could jack up interest rates to halt the crazy overborrowing.

The other was they could allow their currency to devalue, enabling them to recover by selling their goods and services more competitively abroad.

But for all those countries locked into the strait-jacket of the euro, neither of these steps was available to them anymore.

Exactly as predicted, the Greeks, the Irish, Portuguese, the Spaniards and others all borrowed hundreds of billions of cheap euros as if there was no tomorrow — enabling each of them to enjoy runaway economic booms, which were hailed as wonderful examples of how ‘Europe was working’.

But, eventually, as we have seen in the past two years, came the dreadful and entirely predictable nemesis, when those debts piled up to quite unmanageable levels. And what has been the response of those in charge of the euro?

The only thing they could not contemplate was that they should admit their great experiment had failed, and that they should allow all these bankrupt countries to drop out of the project which had brought about their downfall and find their own answer to their problems by regaining the power to control their own currencies.

Instead, they have resorted to the final desperate measure of attempting to bail out the countries in crisis by chucking at them ever more astronomic sums of money, which the hapless recipients have little or no prospect of ever being able to pay back.

And before we console ourselves that at least Britain has managed to stay out of this catastrophic experiment, let us remind ourselves just how horribly we, too, have become entangled in this disaster.

Last week, our MPs were asked to vote, without a debate, to double our lending to the IMF to £20 billion.

This is just one of the many ways in which we and our own economy are now being drawn into the same bottomless pit of international lending, supposedly to rescue those countries already facing bankruptcy  by handing over to them astronomic sums of money which they can almost certainly never repay.

The IMF warns that this crisis will set off an earthquake that could not only wipe hundreds of billions of pounds off the global economy, but which could well do it such damage as to make the banking crisis of 2008 look like a mere hiccup.

We could be entering the darkest time the world has seen since World War II. And the terrifying fact is that, as yet, not one of Europe’s supposed leaders has the slightest idea what to do about it.

How much easier it is to indulge on sanctimonious hysteria over the misdeeds of an octogenarian media tycoon.

Read more:  European Debt Crisis

Food and fuel bills to rocket


  • Rises in the cost of bread, pasta, breakfast cereal, dairy and meat are on the horizon
  • Oil prices could double from $80 a barrel last year to $160 this year, experts have warned
  • Families face massive rises in fuel and food costs, ministers warned last night.
  • International cereal prices up at least 70 percent from last year as stocks dwindle and prices soar

A catastrophic 1970s-style oil price spike is on the cards while the price of supermarket basics continues to soar. Political turmoil in the Arab world could send oil prices skywards.

Higher fuel costs hit food producers, pushing up the prices paid by consumers. That would add to inflationary pressure and increase the prospect of interest rate rises.

A UN report yesterday revealed that rises in bread, pasta, breakfast cereal, dairy and meat prices are on the horizon – irrespective of future oil price hikes. The commodity price of key foods rose again in February, making it the eighth successive month of increases, according to the UN Food & Agriculture Organisation.

It pointed out that the export prices of wheat, corn and rice are up by a staggering 70 per cent in one year. Higher grain prices also lead to more expensive meat and dairy products in the shops because of their heavy use in animal feed.

It is now reported that in some countries most of the daily wage is spent on food (just as the bible predicted in Revelation  6:5.) As well as that, extreme weather ranging from droughts in Russia to floods in China and Australia has particularly hit global wheat production. Global cereal stocks this year are expected to fall sharply because of a decline in inventories of wheat and coarse grains.

Oil prices are currently running at over $100 a barrel – the highest level since 2008. But analysts predict prices will surge even higher if the political turmoil gripping North Africa spreads across the Gulf. Soaring oil prices will have a direct impact on fuel prices at the pumps, which are already at the record average level of 130p a litre.

My comment: Is the world listening to these warning blasts of God’s trumpet? NO. Are Christians aware of the speedy approach of the end times? For the most part, NO.  Unless they turn and repent God will continue to smash their self-satisfied smugness:

Hos 2:8-13
For she did not know that I gave her grain, new wine, and oil,

And multiplied her silver and gold — which they prepared for Baal.

Therefore I will return and take away My grain in its time

And My new wine in its season,

And will take back My wool and My linen,

Given to cover her nakedness.

Now I will uncover her lewdness in the sight of her lovers,

And no one shall deliver her from My hand.

I will also cause all her mirth to cease,

Her feast days, her New Moons, her Sabbaths —

All her appointed feasts.

And I will destroy her vines and her fig trees,

Of which she has said, ‘These are my wages that my lovers have given me.’

So I will make them a forest,

And the beasts of the field shall eat them.

I will punish her for the days of the Baals to which she burned incense.

She decked herself with her earrings and jewellery,

And went after her lovers; but Me she forgot,” says the LORD.

Read more: http://www.dailymail.co.uk/news/article-1362745/Food-fuel-bills-rocket-warn-ministers-UN-report.html

New World Order Called For


Prime Minister Calls for New World Order

Prime Minister Gordon Brown will today set out a five-point plan to create a “stronger and more just” world order in the wake of the worst financial crisis since the Great Depression.

By Nick Allen 10:44AM GMT 10 Nov 2008
Mr Brown wants agreement on a world trade deal and reform of the international financial system

Mr Brown will call on fellow world leaders to use the current worldwide economic downturn as an opportunity to thoroughly reform international financial institutions and create a new “truly global society” with Britain, the US and Europe providing leadership.

His call comes ahead of an emergency summit of world leaders and finance ministers from 20 major countries, the G20, in Washington next weekend.

Mr Brown will say that the Washington meeting must establish a consensus on a new Bretton Woods-style framework for the international financial system, featuring a reformed International Monetary Fund which will act as a global early-warning system for financial problems.

The original Bretton Woods agreements, signed in Bretton Woods, New Hampshire in 1944, established post-war international monetary protocols governing trade, banking and other financial relations among nations, including fixed exchange rates and the IMF.

Mr Brown’s plan for strengthening the global economy 60 years later involves recapitalisation of banks to permit the resumption of normal lending to households and businesses, better international co-ordination of fiscal and monetary policy and a new IMF fund to help struggling economies and stop financial problems spreading between nations.

He also wants agreement on a world trade deal and reform of the international financial system based on principles of “transparency, integrity, responsibility, sound banking practice and global governance with co-ordination across borders”.

As Britain moves into a painful recession Mr Brown has staked his own leadership on helping to find a way out of the global crisis.

In a speech to City financiers at the annual Lord Mayor’s banquet in London he will say: “The British Government will begin to begin a new Bretton Woods with a new IMF that offers, by its surveillance of every economy, an early warning system and a crisis prevention mechanism for the whole world.

“The alliance between Britain and the US, and more broadly between Europe and the US, can and must provide leadership, not in order to make the rules ourselves, but to lead the global effort to build a stronger and more just international order.

“My message is that we must be internationalist not protectionist, interventionist not neutral, progressive not reactive and forward-looking not frozen by events. We can seize the moment and in doing so build a truly global society.”

Mr Brown has already discussed IMF reforms with French President Nicolas Sarkozy and German Chancellor Angela Merkel and has called on countries including China and the oil-rich Gulf states to fund the bulk of an increase in the IMF’s bailout pot.

The Prime Minister wants the markets to be subjected to morality and ordinary people’s interests are put first.

He believes that in electing Barack Obama, US voters have showed their belief in a “progressive” agenda of government intervention to help families and businesses through the current crisis.

He will say: “Uniquely in this global age, it is now in our power to come together so that 2008 is remembered not just for the failure of a financial crash that engulfed the world but for the resilience and optimism with which we faced the storm, endured it and prevailed.”

However, the head of the IMF played down expectations of a new Bretton Woods system ahead of the G20 summit.

Dominique Strauss-Kahn, the IMF’s managing director, said: “Expectations should not be oversold. Things are not going to change overnight. Bretton Woods took two years to prepare. A lot of people are talking about Bretton Woods II. The words sound nice but we are not going to create a new international treaty.”

The European Union has called for an overhaul of the IMF with French President Nicolas Sarkozy, whose country holds the EU’s rotating presidency, saying: “We want to change the rules of the game”.

The US, however, has been more lukewarm on the possibility of radical change.

 

Economic Meltdown!


The Economic Meltdown
by Dr. David R. Reagan – Lamb & Lion Ministries

Did you notice that the stock market collapse on September 29, 2008, totaled 777 points and occurred on the eve of Rosh Hashanah, the Jewish New Year? From my viewpoint, it appears to be a judgment on our nation that has the fingerprints of God all over it.

Keep in mind that President George W. Bush was the first president to propose the establishment of a Palestinian state, and for the past month he has had his Secretary of State in the Middle East trying to force the Israelis to give up their heartland.

The Word of God warns that nations who try to divide Israel in the end times will pay a terrible price. In Joel 3:2 the Lord says that He will “enter into judgment” against those nations that “have divided up My land.”

We have sold out Israel for Arab oil, and we are paying the price. But our treatment of Israel is not the only reason for this remedial judgment. Our worship of money is the other reason.

In my book “America the Beautiful? The United States in Bible Prophecy” published in 2003, I presented several scenarios that could explain the absence of the United States in end time Bible prophecy. They included such things as an internal nuclear attack by terrorists, an external nuclear attack from another nation, and a societal collapse due to internal moral rot. The only positive scenario I could conceive was the destruction of our nation due to the Rapture of the Church.

The very first scenario I offered was an economic one. I put it first because it was the one I felt was most probable. Here’s what I wrote:

The first thing that comes to mind is an economic catastrophe that will result from our out of control debt situation. The official outstanding debt of the U.S. government is currently 6.2 trillion dollars. That amounts to $21,540 per person. This debt is increasing at the rate of 1.1 billion per day! Private debt is even more horrendous. At the beginning of the 21st Century, there was a staggering $25.6 trillion of credit market debt outstanding in the U.S. That total represents a doubling of the debt burden since 1990. America’s total debt, public and private (including state and local government) stands at around $32 trillion dollars! That’s $115,322 per man, woman, and child. Amazingly, 52% of this debt was accumulated in the 1990s, a decade driven primarily by debt instead of productivity.

There is no way to escape the conclusion that America has become a debt junkie. We are living on money we do not have and will never have, and sooner or later the weight of this debt is going to collapse our economy. One irony is that we have killed 50 million babies who could have been in the work force today contributing to our economic health by producing goods and services and paying taxes.

I believe an unprecedented economic collapse is highly likely because money is the real god of America, and the true God of this universe is a jealous One who does not tolerate idolatry. God, by His very nature, is going to be compelled to destroy our false god.

We are a nation driven by greed. The mortgage debacle which has caused the current crisis is due first of all to greedy people wanting to live in houses they could not afford. They were serviced by greedy banks who were willing to grant loans they knew the people could not pay because the banks intended to flip the loans quickly, making a fast profit. And all the while, greedy politicians were willing to look the other way while their campaigns received money from the greedy lenders who they were supposed to be regulating.

Republicans have run for office for years as fiscal conservatives, vowing to take good care of taxpayer’s money. Yet, when they gained control of Congress, they fed at the money trough like ravenous hogs, and President Bush looked the other way, refusing to exercise his veto power. The result is that our national debt continued to skyrocket.

Greed motivates big business, big labor, big sports, and big religion. Every aspect of our society is infected with it. Relentless advertising encourages people to live beyond their means by relying on credit cards.

One sobering result of the current economic debacle is that it has made it almost impossible for John McCain to be elected, meaning that our nation is most likely going to receive the kind of leaders we deserve. We could well end up with the most liberal president in our history, one intent on expanding abortion to include infanticide, determined to retreat internationally from the threat and challenge of Islamic terrorism, and committed to packing our Supreme Court with ultra-liberals who will hold our Constitution in contempt.

The Bible teaches that when a nation rebels against God, He will first raise up prophetic voices to call the nation to repentance. The Lord did that years ago here in America when he began to call for national repentance through voices like Dave Wilkerson who also warned us in graphic language of the consequences if we refused to repent.

When prophetic voices are ignored, God always resorts next to remedial judgments, which increase in ferocity over time. We have experienced a whole series of such judgments, beginning with our loss of the Vietnam War. Other judgments have included such things as natural disasters, epidemics, crop failures, political corruption, crime, and immorality. According to Romans 1, what God does in times of national rebellion is lower the hedge of protection around the nation and allow evil to multiply.

The biggest wake-up call occurred with the attacks on 9/11. But like a sleepy person, we just rolled over, hit the snooze alarm, and went back to sleep.

The most disturbing thing about all this is that the Bible teaches that when a nation refuses to repent in response to prophetic voices and remedial judgments, a point will ultimately come when God will deliver the nation from judgment to destruction. Our nation currently appears to be on that threshold.

Let us pray for our nation as we have never prayed before. Let each of us pray prayers like the one Daniel prayed in Daniel chapter 9, where he took the sins of the nation upon himself and asked for forgiveness. After all, all of us are responsible to one degree or another for the sins of our nation, either due to our participation in them or our unwillingness to speak out against them. Let us pray for God to show us grace by not giving us the kind of leaders we deserve. And let’s pray for a national revival that will sweep many people into the Lord’s kingdom before it is too late.

http://www.moriel.org/articles/notice_board/economic_meltdown.htm

The Bible and the Third Seal


By Dana G Smith

Oct 9th, 2008

Zephaniah 1:18 Neither their silver nor their gold shall be able to deliver them in the day of the LORD’S wrath; but the whole land shall be devoured by the fire of his jealousy: for he shall make even a speedy riddance of all them that dwell in the land.

Zephaniah 2:3 Seek ye the LORD, all ye meek of the earth, which have wrought his judgment; seek righteousness, seek meekness: it may be ye shall be hid in the day of the LORD’S anger

The world saw the dark day in which the Dow dropped 777 points in a one day nose dive at the beginning of the Jewish Holiday celebrating the New Year known as Rosh Hashanah. Putting this in perspective many analysts have been trying to calm the fears as major governments joined in the move to save the world economic system by buying up bad debt. Fox business news quoted Frank Davis, the director of sales and trading at LEK Securities who said “We’ve got fear selling going on. It’s hard to control logical when you have fear selling.”

Luke 21:25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring; Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken. And then shall they see the Son of man coming in a cloud with power and great glory.

“Global Economic Trouble”

Revelation 6:5 And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.

Moreover, with the Nikkei index dropping to its lowest level in two decades, the world financial crisis is taking its toll. On this day, the day in which Yom Kippur begins at sundown, world markets are greeted by the Federal Reserve lowering its prime interest rate by a half point. The move to lower the rate was an historic one as the Bank of England, the European Central Bank, the Swiss Bank, Chinese Bank, and numerous others joined in to save the world economy.

This is a sign of the times, prophetically. First on Rosh Hashanah we find the down dropped 777, a triumviral number of 7’s. Seven is a perfect, complete number, one of completion. With three of them on the downward spiral of the Dow, this signals a staunch warning. The year we have entered will be one of a financial crisis. It is one where the governments will not be able to handle. It is one where we find the LORD God shaking up the systems of government and their monetary markets as well.

James 5:1 ¶Go to now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted, and your garments are motheaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth. Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter.

The fall feasts all look forward to prophetically to the coming of the LORD Jesus Christ [Yeshua Ha Massiach]. Included in these is the time of repentance, examination, and seeking the LORD God, known as Yom Kippur. Add to this the time known as Sukkot or Tabernacles and you have a picture of the coming Messiah, Jesus Christ who will rule and reign in his Tabernacle from Jerusalem. He will also have all the nations come once a year to celebrate this ‘Feast of Tabernacles’. The economy, money crisis, credit crunch, debt, and global ability to finance will be affected to the point that fear and panic will spread as never before. Add to this the full signs found in Matthew 24, Mark 13, and Luke 21 and you will have a true picture of what is coming.

Isaiah 55:6 ¶Seek ye the LORD while he may be found, call ye upon him while he is near:

Acts 15:17 That the residue of men might seek after the Lord, and all the Gentiles, upon whom my name is called, saith the Lord, who doeth all these things.

Dana G Smith is the author of D-Day For America, a prophecy book of what is coming to America. Published by Xulon Press, ISBN: 1-59781-843-7. Dana is the editor of the W.I.B.R. online Web Sites. http://write-wing.blogspot.com/