fbpx

ECONOMIC EARTHQUAKE


Euro in danger: Germans trigger panic over future of single currency


The Times Online reports: “Shocked European ministers are preparing for emergency talks to shore up the euro after markets fell in reaction to panic measures in Germany.

Angela Merkel stunned EU capitals by warning that the euro was in danger and triggered fears of a fresh financial meltdown by announcing a ban on risky trading practices by speculators. The German Chancellor’s actions opened up new cracks in the single currency, drawing sharp criticism from France and prompting Brussels to issue an appeal for unity.

Shares in London plunged by nearly 3 per cent, with similar falls in Paris, Berlin and Madrid. The euro plummeted to a new low against the dollar before making a slight recovery.

European finance ministers, who have just hammered out a massive rescue plan for Greece, will hear controversial calls from Germany at a meeting tomorrow for changes to the Lisbon treaty to give Brussels powers to co-ordinate national budgets.

Ms. Merkel believes that the EU should have stronger powers to organize the ‘orderly insolvency’ of countries such as Greece that set giveaway budgets with no means of paying for them. After announcing a ban on speculative share trading in Germany’s top financial institutions and the bonds of Eurozone countries until next March, she warned: ‘This challenge is existential and we have to rise to it. The euro is in danger. If we don’t deal with this danger, then the consequences for us in Europe are incalculable . . . If the euro fails, then Europe fails.’

Her apocalyptic warning came as David Cameron prepared for his first visit as Prime Minister to Paris and Berlin, where he is likely to come under pressure to commit more British funds to EU bailout programmes.

His desire to build relations with Ms. Merkel will be tempered by his reluctance to see any more powers transferred to Brussels. However, with 54 per cent of Britain’s exports going to Europe, the economy is not immune to the effects of the euro’s problems…” (America and the entire world are facing financial collapse – as predicted in James 5:1-4 and Revelation 18:17, 19. This could lead to the world’s final sign – an implanted microchip, the “666” mark of Revelation 13:16 – 18 to buy or sell. See also the next three reports.)


Medvedev: Russia Concerned About European Currency Crisis


Voice of America News reports: “Russian President Dmitri Medvedev has urged the European Union to stabilize its common currency, saying a stable euro is important for EU trade partners, including Russia.

Mr. Medvedev told reporters in Germany that Russia is not indifferent to the fate of the European single currency, because it keeps part of its foreign currency reserves in euros.

The Russian president arrived in Germany to discuss global and bilateral issues with German Chancellor Angela Merkel.

After speaking with the German leader, Mr. Medvedev expressed confidence that a package of EU measures put in place to help stabilize the euro will work…”


Angela Merkel’s government threatened with collapse


The Guardian.co.uk reports: “German chancellor Angela Merkel’s centre-right coalition government looked to be close to collapse, weakened by a string of disagreements and intense infighting over austerity cuts, policy reform and the departure of senior conservatives.

Less than eight months after it took office, the government was given only a narrow chance of running to a full term by the majority of Germans, 53% of whom said in a poll they expected it to fall.

‘Either we get things sorted out in Berlin, or it will soon be the end for the coalition,’ said Jorg-Uwe Hahn, head of the Hessen branch of the Free Democrats (FDP), the junior coalition allies of the Christian Democrat Union (CDU) and its Bavarian sister party, the CSU. Renate Künast, leader of the opposition Greens, said: ‘The phrase ‘new elections’ is in the head and the heart of anyone who is thinking in a politically responsible way.’

Merkel called at the weekend for the government partners to bury the hatchet over their disagreements after a week when relations reached such a low that members of her government had variously referred to each other as ‘wild pigs’ and ‘gherkin troops’ (rank amateurs).

But much of the mistrust and anger is being directed at Merkel herself. This week’s Spiegel magazine called her the Trummerfrau, a reference to German women who cleared away the rubble after Second World War bombings. It painted a picture of a woman presiding over a government in ruins and used its title page to request the government in one word to ‘Aufhören!’, or stop…”


Iran Prepared to Block Gulf Oil and Wreck Western Economies


Israel National News reports: “Iran’s recently-concluded war games concentrated on preparations to block the Persian Gulf and wreck Western economies in the event that the United Nations Security Council tries to place harsh sanctions against it.

Forty percent of the world’s oil and gas sails through the Persian Gulf, and an Iranian blockade would cause an inflationary spike in energy prices and a fuel shortage that could cause catastrophe for the West, which is dependent on Iranian crude to fuel their gas-hungry economies.

Public affairs consultant Lenny Ben-David, a former senior Israeli diplomat in Israel’s embassy in Washington, pointed out on Cutting Edge.com Monday that the Islamic Republic stopped, searched or photographed several Western ships during the eight-day war games.

The Revolutionary Navy searched a French and an Italian vessel for ‘environmental’ checks, buzzed the U.S. Eisenhower in what American officials called a ‘close encounter,’ and patrolled the Gulf, also known as the Straits of Hormuz, stopping and checking destroyers and cargo ships.

The Iranian Air Force also drove away a U.S. reconnaissance drone that was monitoring Iran’s massive Gulf military exercises that concluded last Thursday.

During and after the war games, Tehran issued daily press releases boasting of new and advanced speed boats, an anti-submarine torpedo and advanced arms for attacking ships.

Ben-David noted, ‘While the press focuses on the Iranian military exercises, uranium enrichment, and long-range missile development, the navies of dozens of countries have been relatively quietly gravitating toward the Persian Gulf. ‘

The war games exercises in the Gulf sent a clear signal to the West regarding what may be in store if it succeeds in placing tough sanctions against Iran as a way to try to force it to comply with international rules on the development of its nuclear program…” (The rider on the third horse of the “Four Horsemen of the Apocalypse” creates famine and financial devastation as the cry is heard: “A measure of wheat for a penny and three measure of barley for a penny.” A penny represents one day’s wages for a loaf of bread. Iran’s president is bent on destroying especially the West financially. However, the results will be global.)



Comments are closed.