Tag Archives: Euro

News

Greeks Withdraw $1 Billion a Day Ahead of Vote

Reuters | June 13, 2012 | 07:01 AM EDT

Greeks pulled their cash out of the banks and stocked up with food ahead of a cliffhanger election on Sunday that many fear will result in the country being forced out of the euro.

Bankers said up to 800 million euros ($1 billion) were leaving major banks daily and retailers said some of the money was being used to buy pasta and canned goods, as fears of returning to the drachma were fanned by rumors that a radical leftist leader may win the election.

The last published opinion polls showed the conservative New Democracy party, which backs the 130 billion euro ($160 billion) bailout that is keeping Greece afloat, running neck and neck with the leftist Syriza party, which wants to cancel the rescue deal.

As the election approaches, publishing polls is now legally banned and in the ensuing information vacuum, party officials have been leaking contradictory “secret polls”.

On Tuesday, one rumor making the rounds was that Syriza was leading by a wide margin.

“This is nonsense,” one reputable Greek pollster said on condition of anonymity. “Our polls show the picture has not changed much since the last polls were published. Parties may be leaking these numbers on purpose to boost their standing.”

via CNBC

News

Could the Euro Break Up?

Markets continue to tumble across the globe, as the Euro crisis deepens. Since the election in Greece, no new coalition government has been formed, so no agreement reached on the austerity cuts to satisfy agreements with euro partners. The German Chancellor has now told Greece, if they do not stick to their bailout agreements, they will be expelled from the Euro.

In Greece 70% voted for parties against the EU-IMF imposed austerity, but 69% of Greeks want to remain in the Euro. A leaked report has shown that Germany are drawing up plans for a Greek exit from the Euro.

But this has significant dangers:

  •  If Greece goes – will Italy, Spain, Portugal and Ireland want to follow?
  • What happens to the greek debt? It’s in Euro’s not drachma, ….Greece’s creditors would loose billions.
  • The European banking system is already on it’s knees, Greece’s exit could see major banks across Europe collapse.
News

Camp David: G8 Leaders Hope Greece Will Remain in the Eurozone

The G8 leaders met at Camp David before the Nato Summit in Chicago. The G8 is made up of the leaders of: America, Canada, Britain, France, Russia, Germany, Italy and Japan.
The financial crisis was at the centre of talks.

This was the first time newly elected French President Francois Hollande and President Obama have met. The two men are said to have agreed on the need to concentrate on growth, seen as Obama’s approval of Hollande’s policy, of moving away from austerity, towards stimulating the economy with more borrowed money.

Obama’s endorsement of Hollande has left Germany’s Angela Merkel more isolated in Europe

News

Greece Could Fall in Days as There is a Run on the Banks

Greece have set the date for re-run of elections of June 17th. The recent Greek elections ended in chaos, with none of the parties able to form a workable coalition. However, the new fear is that Greece will not make it to June 17th.

Since the failed elections Greeks have been taking what money they can out of the banks. Companies are moving their money overseas, as fear grips the nation. If this continues, the country will run out of cash and the system will collapse.
If that happens, then Greece will exit the Euro in an un-orderly fashion. Some economists say a Greek exit could cost $ 1 Trillion. The contagion in the markets would likely result in Italy and Spain failing shortly after.

News

Euro Up January 2012

All the leading economists and world leaders are saying 2012 will be a difficult year for the world economy. Many are saying events in Europe will have catastrophic effects on the global economy.

After the New Year the Euro seemed to be in a free fall. Markets were jittery. Then God sent His Mantle back into Europe. The Mantle: He is called and appointed for this time to change world events. As a result. while the mantle is in Europe, the Euro has began to climb strongly again. This is having a knock on effect to the stock markets in Europe and America.

This is wonderful news for the global economy, and those who understand these things have a real impact upon our day to day lives… ask the Greeks! However, this mission which is having a real effect has not been paid for by partners yet and therefore this mission may have to end before it is completed. Prophet TV are consistent in following the call of God; but the church is inconsistent and disobedient in supporting the work of God.

God show’s His Prophets what will happen and where to go. It is the job of the church to support the Prophets in the work they do, even if they do not understand that work. If you fail to see the anointing on this ministry,maybe it is time to examine your own heart, not judge and criticise the ministry. Deal with the fear of lack in your life so you can hear God more clearly: fast and pray in tongues until you discern a right spirit.

On this mission we need to go to Luxembourg. Luxembourg is important… even if you cannot see it. No one thought Italy was important before Prophet TV was sent in, now we see that the economic fate of that country is pivotal to us all.

 

 

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

The Death of the Euro?

1 Comment

The Euro crisis is thought to be entering it’s most critical phase. A toxic mix is contributing to a complete loss of confidence in the Euro as a currency, and the policy makers involved in it’s management.

Countries across Europe are beginning to see their borrowing costs rise, as fear spreads from nation to nation. Italy and Spain are both in the danger zone, and France has received repeated warnings that their credit rating is at risk of being cut. Now, what many believed to be unthinkable, Germany is struggling to attract investors on the bond market.

The Euro bailout deal, looks more and more uncertain, as Europe struggles to raise the €1 trillion it requires for it’s bailout fund. Logically, you do not need to be an economist to know Europe is not a sound investment at present.

However, this is beginning to look like end game. UK banks are now openly making plans for the biggest default in history, and the unorderly break up of the Eurozone. American investors are trying to take money out of Europe as quickly and decently as they can. British embassies in Eurozone nations, have even been told to start preparations to help Britons caught up in riots, in the wake of the Euro collapse. Even the lethargic Europhiles, who have seemed to be one step behind this entire crisis, are beginning to wake up to the fact they have very little time and few options.

Although most believe the politicians and Eurocrates will seek to do all they can to ensure the survival of the Euro, they may have ran out of time, thanks to the rapidly increasing investor panic, the worsening economic outlook, the perceived refusal of the Germans to accept a fiscal union (although lessing this to many of the other Eurozone nations may prove highly problematic) and the rejection by the European Central Bank (ECB) to act as lender of last resort.

It would take very little to cause the Euro to collapse within weeks, rather than months. However, the big test will come in January when Italy needs to raise € 30 billion.  If it cannot do so, then Italy will default. With the fear in Europe that the business sector has dried up, and 2012 looks like there will be a deep recession throughout Europe, fuelled by the austerity measures which are already crippling Greece’s economy.

Even at this eleventh hour, there is still a little hope. Policy makers need clear vision, and wisdom if Europe is to find her way through this crisis. Support Prophet TV so we can run missions into Europe. It will be anarchy if it all collapses, and not only Europe will be affected but the whole of the western economy including the USA.

 

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.

 

News

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.

 

 

 

next >

< previous

News

Turmoil in the Global Stock Markets

The close of trading this week has seen the Dow Jones down for the fourth consecutive week. The last few weeks have seen global markets fluctuate wildly. On many days the spread of the gains and losses have been so extreme, one would expect to see such changes over the course of a year, not a day’s trading.

The erratic behavior of the markets has fueled fears of a double-dip recession in the US and Euro-zone nations, as already slow growth reduces even further.

Economic analysts are seeing markets behave in ways never before seen in the history of stock market trading- this is unknown territory.  Some believe we may be heading for a global depression, or Japanese style stagnation.

The fear within the markets is primarily being fed by the continued uncertainty in the Euro-zone nations. Italy and Spain are looking increasingly unstable, and either one of their economies would be too big to bail out, in the manner of Greece. Even the second Greek bail-out package is looking uncertain, as the other Euro-zone nations loose confidence in Greece’s ability to pay back their debts.

Economists have not given up all hope of finding a way through this present crisis, although the margin for error is very slim. Many believe the only way out is for a break up of the single European Currency. If the economic heavy weights of the Euro- Germany in particular- were to leave it would allow the Euro to devalue, bringing relief for the PIGS nations. Despite the economic virtue of such a plan it is currently politically unthinkable in Germany, as such a move would plunge Germany into a harsh recession.