Tag Archives: Economic

WORLD ECONOMIC SUMMIT OPENS IN DAVOS

The annual gathering of the world’s most influential has began in Davos, Switzerland. It is thought there will be around 50 world leaders attending, including Russian President Dmitri Medvedev, British Prime Minister David Cameron, German Chancellor Angela Merkel, and Italian Prime Minister Mario Monti. There will also be leaders from the media, business, and academia.

In the run up to the conference the founder of the World Economic Forum, Professor Klaus Schwab, has said the mood this year is more optimistic than last, but has warned that the global economy could still collapse if more is not done to promote growth.

On the agenda will be the continuing eurozone crisis, the US Fiscal Cliff, weak economic growth, soaring national debts, and the latest stimulus program in Japan.

The World Economic Forum seeks to promote a global governance platform to address the global issues that national governments alone can not tackle.

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EuroNews

FRANCE HAS BEEN STRIPPED OF “AAA” CREDIT RATING BY MOODY’S

The rating’s agency Moody’s has stripped France of it’s AAA credit rating. The agency cited France’s continued exposure to the eurozone debt crisis, but also said the inflexible labour market and low levels of innovation were seriously hindering France’s growth prospects.

In a statement Moody’s said: “Further shocks to sovereign and bank credit markets would further undermine financial and economic stability in France as well as in other euro area countries.

“The impact of such shocks would be expected to be felt disproportionately by more highly indebted governments such as France.”

The move is a serious blow to the socialist governments economic policies. Francois Hollande’s government is trying to push through labour reforms, though some believe they do not go far enough.

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San Francisco Crime Dropping, According To FBI Report

According to the FBI, violent crimes continue to drop in 13 of the Bay Area’s 15 biggest cities. Despite economic recession there are fewer murders, robberies, aggravated assaults and forcible rapes.

Crime data professor Alfred Blumstein of Carnegie Mellon University stated that “Everyone exprected them to go up because of the frustration and economic turmoil,” in an interveiw with The Huffington Post.

The annual homicide averages in San Francisco have nearly halved since 2004.  Also, according to the San Francisco Chronicle, Fremont, Concord and Daly City saw violent crime declines of better than 20 percent last year.”

“…Over the past year, the state has shed tens of thousands of inmates… Despite fears of repercussions, the violent crime rate has continued to drop.”

San Francisco Public Defender Jeff Adachi noted that the San Francisco murder solved rate has jumped from about 30 to 80 percent.

from San Francisco Crime Dropping, According To FBI Report.

See prophet.tv and the famous Building the Warrior Teaching Series for possible explanations to this phenomenon.

News from The Associated Press

Euro crisis far from over, stock analysts warn

By PAUL WISEMAN and JOSHUA FREED

Violent protests in Greece

WASHINGTON (AP) — A slim victory for the main conservative party in an election in Greece should relax fears that a country will stop using the euro for the first time and possibly unleash global financial turmoil.

But when it comes to Greek politics – and European economic policy – it’s never that easy. So the bumpy ride for financial markets isn’t over yet.

via News from The Associated Press

The Break Down of Greek Society

What happens to a society when the economy collapses? How does this affect the day to day lives of the people within that society? What happens when the government does not have the money to keep everything working as it once did?

We can see this process happening in Greece, as the nation is effectively bankrupt, and the government is fast running out of options. Greece’s financial woes are largely of her own making. A society based on socialism, with a large proportion of the population employed in public sector jobs, a generous public retirement fund, and national tax avoidance. For years the country has lived far beyond her means. This addiction to debt has been compounded by Greece abandoning her currency, the Drachma, to join the single European currency, the Euro. Being part of the Euro has seriously hampered Greece’s ability to take the necessary action to avoid the economic catastrophe the nation now faces.

Greek’s have a reputation for being loud and gregarious, however, behind this exterior is a generous and civil society built on a strongly matriarchal family unit. The Greek grandmother is a poignant symbol of the nation: the old widow lady dressed in black, with immacualte hair, is a figure which commands the deepest respect from every sector in society. However, a British journalist living and working in Greece observed such a lady begging on the streets of Athens – this was a scene utterly unthinkable a short time ago.

Greek’s are also very civilised and generous, however these attributes are becoming harder to see. Hostility is growing in Greece towards a large immigrant population, with a real fear that the Neo-Nazi movement could make serious political in-roads. Crime is also increasing drastically. In the past Athens was quite a safe city where you hardly heard of muggings, but now muggings are common place. Areas of Athens are becoming no-go areas as crime and drug abuse increase.

Despite the crime and drug abuse on the streets of Athens, behind closed doors the majority of Greek families are simply trying to survive. Many have seen their salaries drop by 25%, whilst taxes increase and basic food prices soar; simply putting food on the table is becoming very hard. There are more tax rises and job cuts to come and as the recession deepens, the coming year is likely to bring further hardship to the people.

Greece has a troubled recent past, after the second world war Greek’s faced tremendous hardship, with people starving to death. Out of this, civil war ripped the nation apart resulting in a brutal military dictatorship until 1974. People again fear a return to the bad days of Greece, as Communist groups call for revolution. Many can see this as a distinct possibility as more and more people become increasingly desperate.

The way the economic crisis is dealt with in the coming months will determine  the outcome for Greece, as well as the rest of Europe. America is not immune from these economic woes. The entire western world has lived on borrowed money for years, we have all grown used to a lifestyle funded on debt, and not on hard earned cash. Many in Greece see the removal of their lifestyle as a loss to their rights, and the rest of Europe and America will be no different. If the rule of law and the political system collapses in Greece, anarchy will ensue and hardship become much worse.

However, we do not need this to happen. God raises up Prophets to take his mantle into regions to protect them from destruction. Poverty, hunger, or anarchy are not what God would have for us, but He needs His mantle to be in these key regions, so they can be steered away from trouble and faith and wisdom be restored. Support Prophet TV so the mantle on this ministry can return to Europe. If the economic system collapses, what we see in Greece today will be America tomorrow.

Via Greece is slipping into the abyss

Eurozone Debt Deal…


At the much anticipated meeting of European Union heads of state in Brussels a deal was reached to hopefully solve the continuing debt crisis threatening the world economy.

Leaders agreed that the European Financial Stability Facility (EFSF), used to bailout nations like Greece when they are in trouble, has been increased to €1 trillion. Leaders also managed to reach a deal which will see a Greek debt haircut of 50%, and a plan was also reached to recapitalize the European banks. The problems in Italy were also discussed, with Italian Prime Minister Silvio Berlusconi giving assurances to the EU meeting, that his government will continue with it’s austerity drive and will seek to have a balanced budget by 2013.

When the deal was announced global stock markets rose at the signs that action had finally been taken. However, it very quickly became apparent Europe was by no means out of the woods. The deal is very short of detail. Nothing was said about how the EU will find the €1 trillion required for the EFSF and since then EU officials have been in talks with China to raise the loan. It was agreed that the fine detail of how to raise the money would be discussed at the next EU summit of leaders in December.

Furthermore, despite stock markets rising on the news, the global bond markets did not follow. The bond markets treated the deal with a great deal of caution. Since it is the global bond markets that lend to governments this is not a good sign. Put simply, investors are not investing in Europe, it is too high risk. If bond markets stop lending to large western economies, it means public sector wages go unpaid, schools close, and hospitals run out of cash. This would result in  serious civil unrest.

As for the recapitalization of the banks. When the details were looked at it was found the amount agreed upon is woefully inadequate. Analysts at Credit Suisse, after looking at the figures, concluded that this is not really a bank recapitalization at all. The recapitalization was so important because the banking sector in Europe makes up a significant proportion of GDP. If the banks fail, and require sovereign nations to bail them out it will be very difficult, and would likely have a snow ball effect on that nations credit rating. This is a particular problem for France, whose banks have a high exposure to the Greek debt.

The haircut for Greece also comes with undesirable consequences for Greece. They are to have EU officials installed in Athens, who will not oversee the running of their economy, in effect Greece has lost her economic sovereignty. This is the fate of any nation now, that requires a bailout.

With the recent attention being given to Greece and Italy, we cannot forget Portugal. Portugal is beginning to show the same signs that Greece had before it went into financial meltdown.

Behind all the deals and negotiations are the citizens of Europe, who are becoming increasingly angry at the whole affair. Solvent nations are seeing their citizens angry that they are having to bailout out the wrongs of others, and those nations in financial difficulty are seeing increased civil unrest due to the crippling austerity packages put in place. Across Europe nationalism is growing.

The deal may succeed, but there are a lot of factors at work which could cause it to unravel very quickly. This is not a time for us to be putting our faith in the politicians to find a solution; It is the time to support the work of Prophet TV, to enable the missions in Europe to continue. Economic meltdown need not happen, but we must protect Europe to ensure that it doesn’t.

 

 

 

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European Debt Crisis Threatens the Banking System

Economists in Europe now believe the French banking system is days away from requiring re-capitalization, and the Italian banks are not far behind them.

French banks have massive exposure to the European debt crisis, in particular to Greek debt. One of France’s biggest banks, BNP, alone has a eurozone sovereign debt exposure of some €75bn, amounting to roughly 6% of total assets, including €14bn of Greek debt and €21bn of Italian government bonds.

There is continued speculation that the Germans will kick the Greeks out the Eurozone; if this happens Greek debt will be worthless, and the banks will lose their money.

The whole problem is compounded by the lack of clear understanding about how to deal with the crisis as a whole. So far measures have been more like a sticking plaster on a gaping wound, as the victim slowly bleeds to death. Politicians from every European nation have failed to grasp the enormity of the problems they face, and no viable solution has presented itself. This week Barak Obama, as well as the Chinese Premiere, have urged the European leaders to take more responsibility for the crisis and to take decisive action in order to stablize the markets.

Although these issues may all seem very distant – affecting Continental Europe, the Europe problem is the biggest factor influencing global markets at this time. If a sustainable solution is not found and implemented it will not only be the European economy that will crash, it will crash the global economy. This is a time when developed nations have nothing left in their economic arsenal to fight off economic armageddon 1931 style.

With the difficulties facing Europe one could say a miracle is needed. Certainly to steer Europe safely through this crisis, wisdom and conviction are essential on a Biblical scale. We have just witnessed what happens when the mantle on Prophet TV enters a region, in New York hurricanes changed course as soon as the mantle entered the city. Prophet TV has many testimonies of the power on this ministry, to turn economic catastrophe around. This time more than any other, we need God to intervene and show the way ahead. Confidence and faith needs to be returned to Europe, and wisdom prevail in the leaders of the nations of Europe. Support Prophet TV, so these giftings can be brought back into Europe.

 

Random Events, Free Will, Pre-destiny or Something Darker ?