Tag Archives: 1930s

News

European Summit December 8th

December 8th will see the European Union Summit meet again in Brussels. Top of the agenda will be the Euro Crisis. This will be a crucial meeting, and the heads of state have to come up with a plan to quickly forge a way through the economic woes of Europe.

In their last summit they came up with the plan for a €1 trillion bailout fund, since then they have been unable to secure investment to the fund. Furthermore, the crisis has deepened with the other measures making little impact, apart from buying a little time. Therefore, this month’s summit is all the more important. Top of the agenda will be the formation of some sort of fiscal union, but the Germans are still refusing to allow the creation of Eurobonds or the ECB to become lender of last resort. However, they are insisting on “total oversight” of any new fiscal union. For example, already the Irish Prime Minister this week discovered the German Bundstag have obtained copies of the Irish budget and are closely studying it, even before the Irish legislators have seen it. What the German’s are asking for in return for the fiscal union, is unprecedented power over the Eurozone… do you think Greeks and Italians etc will happily sit back and allow Berlin to control their public finances?

Obama is pressing Cameron to bash German and French heads together to come up with the goods, and the Bank of England’s governor has said failure to do so would result in a worse financial crash than the 1930’s. As the Telegraph says, “The 1930’s saw mass unemployment and financial calamity, with stock markets losing 90 per cent of their value. More ominously still, 1930-39 was the decade when mainstream politicians lost control of events, when the Nazi’s rose to power and the far Right took charge in Europe. By the end of the decade the world was at war, and the Holocaust – the greatest crime in human history – was about to begin in earnest.” In the natural, the financial chaos of the 1930s helped Hitler win power in Germany, as he promised them prosperity and strength. The failure of the Euro will have far wider implications on the world than we could ever think or imagine.

Europe needs the mantle on Prophet TV at this time. In the past, low support has hampered the missions Prophet TV has carried out into Europe, so please support the work of God in Europe at this crucial time.

 

News

America May Save the Euro

Some new and more radical solutions are beginning to be discussed about how to save the Euro from collapse. One of these solutions is for the IMF to provide funding for Italy and Spain if they need help. They are thought to be planning an $800bn bailout package, but the deal would mean the European bailout fund would have to underwrite the first 30% of any defaulted debt, therefore they still need the €1 trillion in the bank (which still poses the same problem of where to get that from), and they also suggest the bail out fund begin to issue bonds. This would mean many other countries other than Eurozone ones, helping bailout the Eurozone. America contributes 17% to the IMF, consequently, America would send Italy $136 billion under this deal!

Another solution is that the US Fed, buys up the European countries bonds. These are currently all but unsellable. By doing so, the borrowing costs of Spain and Italy would fall overnight, and the US Fed would in effect take the place of lender of last resort, a role the European Central Bank has thus far refused to fill. However, there are two problems with this plan: firstly it could hurt the dollar, and secondly inflation, as it would have the same effect as printing money. The fear of inflation is one of the issues which has hampered action being taken. Germany has an unhappy history with inflation, and the German people and government are wary of anything that may trigger it again. But, many respected economists believe the main threat facing Europe is hyper-deflation.

However, neither of these solutions deal with the underling cause of the crisis. That of a single currency operating with a 30% misalignment between north and south; only the exit of either the wealthy northern states, or the exit of the poorer PIIGS states can solve that. Perhaps some US imposed inflation will make this prospect seem more palatable to the German’s?

With the European stale-mate still very much evident, it looks more likely that the rest of the world will have to take action in order to avoid a global depression, worse than that of the 1930’s financial crash.

 

News

G20 Meeting Cannes 3rd-4th November

World leaders will meet at the next G20 summit to take place in Cannes, France, 3rd-4th November 2011. With the world on the brink of global financial meltdown, this meeting is being seen as one of the last chances the world leaders will have of formulating a plan to avert financial catastrophe.

The date has galvanised resolve amongst Europe’s leaders to come prepared with a plan for the European Debt Crisis.  President Sarkozy and Chancellor Merkel have set a dead line for the end of October to come up with a “comprehensive” response, in time for the G20 summit. Their talks have come as the US, UK and developing world have placed increased pressure on the Eurozone to come up with a plan, criticising Europe for thus far “doing too little, too late.”

Merkel and Sarkozy are seeking to put together a package that will massively recapitalize the European banking sector in order to re-establish global confidence in Europe’s banks, as well as to bolster the European Financial Stability Facility bail-out Fund (EFSF), provide strong action on Greece, and plan ahead to avoid this happening again.

Major problems to find a solution exist. In particular, France is reluctant to use tax-payers money to help the banks, and Germany does not want to continue to pour money into the EFSF. The IMF has estimated that the European banks have a black hole of €200bn, and that the EFSF requires at least an extra €440bn.

The chairman of the Bank of England has said that the current financial crisis is “the most serious… since 1930s, if ever.” Never in history has the global financial system been so interlinked and integrated; meaning that if one part of the system fails, the knock on effects are felt everywhere. If Europe falls, she will take America and the UK with her!

The 1930s financial turmoil led to social meltdown as well as serious political problems. The economic woes of the 1930s helped Hitler’s rise to power in Germany and Communism take hold. However, there is still hope. The west does not need to revisit that type of social and political meltdown. We can yet find a way forward. Key to a solution being found is strong leadership, collective international resolve, and nerve to make tough choices. The G20 meeting in Cannes may be the last chance for the world leaders to show these attributes. Up until now there has been a lack of leadership, unwillingness to act and confusion.

The current raft of measures being considered may help avert economic meltdown, but what is also needed is a workable solution to resolve the fundamental problems within the Eurozone. Until the issue of imbalances between creditor and debtor nations are resolved, any measures will prove to be a sticking plaster on the problem, and we simply stave off disaster for another day.

This is the hour our leaders need wisdom and an atmosphere controlled by the Spirit of God. Support Prophet TV so we can run an intercessory prayer trip into Europe at this key hour of decision making; It will impact upon your life as well as the lives of the next generation.