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The World to Come. The Restored Church of God presents David C. Pack.
The continent of Europe is in its worst crisis since WWII---one which threatens to destroy
it. Think of headlines describing riots---violence---debt---entitlement cutbacks---banks---and bailouts! Long-established
financial institutions are in trouble. Millions are unemployed, with little hope of a job.
And millions of jobs are at risk. More and more lives are simply shattering. Extreme
social unrest is brewing. Angry, frustrated people are taking to the streets in violent
protests against their gov’ts---some of which have already fallen. Others are faltering.
Entire nations face bankruptcy. The existence of the European Union hangs in the balance.
Leaders are frantically searching for solutions, but to no avail. Europe is facing financial
Armageddon. Will it survive? And how will the crisis ultimately affect the world? Europe
will come together! The stage is rapidly being set, with economics the catalyst for what
is coming. The Bible has much to say about where this is leading.
Everything that occurs on Planet Earth is subject to a great unseen law---that of cause
and effect. For every cause, there is one or more effects. Most people can see these
effects---good or bad---but cannot trace them back to their origin---the cause that produced
them. Europe is suffering from a host of effects---mostly BAD! There are causes behind these effects.
This broadcast examines the causes---the why---of Europe’s financial problems. Once you understand
this, you can know where Europe is going---you can know how conditions, trends and events
will end. Europe is on a collision course with PROPHECY! But some background is necessary.
The situation in Europe is nearly apocalyptic, and the stakes have never been higher. Many
European nations simply cannot repay their debts, while at the same time their economies
are slowing, and tax revenue is decreasing. Worse, it is harder and harder to borrow more
money. With giant debt loads hanging over these countries, Europe is running out of
options. Analysts now warn of impending bank failures. According to one executive at a
major global bank, “If anyone thinks things are getting better, then they simply don’t
understand how severe the problems are.” First is the growing distrust between banks,
which are withdrawing deposits from one another and placing them with the European Central
Bank (the ECB). Deposits there are at an all-time high of 905 billion Euros! And many banks
are becoming dependent on funding from their own central banks---so called taxpayer-funded
“zombie banks.” There is a mammoth 115 billion Euro capital
shortfall in the Eurozone’s banking system. Banks have run out of proper forms of collateral
needed to finance short-term loans, and are instead digging into their gold reserves---a
last ditch emergency option. A collateral crunch lies ahead!
Europe’s financial system is so unstable that few experts any longer believe the European
Union (the EU) has the funds to address the banks’ problems. Even if the bailout funds
were raised to a trillion Euros, some warn this would only help Italy and Spain---just
2 of 27 EU members. What happens when other countries need bailouts?
Europe’s banks are facing a crisis of immense proportion. A collapse of at least one major
European bank is more than a possibility, it is imminent. When this happens, Europe’s
financial sector will plunge into chaos, because Europe’s economies are already teetering
on the edge. Growth is stagnant---and some economies are
shrinking. Again, countries are falling deeper into debt as tax revenue is insufficient and
borrowing costs increase. Italy’s borrowing rate is nearing an unsustainable 7%. Greece’s,
Ireland’s and Portugal’s are way over 7%---with Greece’s at over 20%!
Several countries have unemployment rates over 10%, with some over 20%. Several have
over 20% unemployment rates among youth. With jobs vanishing and others threatened, labor
unions are on the march. In certain countries, relations between gov’ts, capital and labor
are very bad and growing worse. At Europe’s time of greatest need, its leaders
hold summit after summit, with little decisive action resulting. Europeans are searching
for a champion---a bold, confident, courageous leader with the vision to deliver them from
their troubles. While little consensus has been made about proposed solutions, most agree
on one thing: Europe faces its darkest hour since the Second World War.
Consider just some European countries and their challenges, starting with Greece. As
of early 2012, Greece’s debt stands at 340 billion euros---by far the largest debt in
the history of this nation of only 11 million. This equals a staggering 31,000 euros for
every Greek man, woman and child. In 2010, Greece received a 110 billion euro bailout.
Yet this was not enough. So a similar-sized bailout was agreed upon, but the money has
not yet been delivered. Investors still fear that even the latest
bailout will not cover Greece’s debts, which seem to be a bottomless pit. If Greece runs
completely out of money, French and German banks will be stuck with billions of Euros
in bad loans. These would then need a bailout by their gov’ts! And America can’t help
because its debt is today worse than Greece when size is factored in.
Investor confidence in Greece is so low its bonds are considered “junk.” This means
the global financial community believes there is a high likelihood Greece will default.
If so, the impact on Europe would be catastrophic! Next is Ireland---which saw the collapse of
its banking system after bad real estate investments. The gov’t took over the country’s largest
banks in an attempt to save them, with the bailout amounting to 85 billion euros. This
was followed by the Irish gov’t passing the toughest budget in its history. Yet more
Irish bailouts are almost certain. Then comes Portugal. Its shrinking, uncompetitive
economy has severely reduced gov’t tax revenue. This forced its Prime Minister to resign.
To get a 78 billion Euro bailout, the new gov’t passed tough austerity measures. This
led to mass protests. Citing Portugal’s worsening economy, ratings agencies have cut
its economic forecast 4 times since 2009. Like Ireland, more bailouts will almost certainly
be needed. But these countries are tiny compared to much
larger Spain and Italy. Spain’s once booming real-estate market
has collapsed. Its banks have been left with a load of bad debt. Many are in serious trouble,
leading to a recession in which the unemployment rate has skyrocketed past 20%. Almost 50%
of young Spaniards are not working! Disillusioned with the lack of prospects,
many are emigrating abroad---particularly the skilled and educated---the ones the country
can least afford to lose! Spain’s borrowing rate has reached record highs, forcing its
gov’t to adopt austerity measures. Spain’s economic outlook has been cut twice since
2009. The biggest concern is Italy---the 4th largest
economy in Europe, with the highest debt load. Coupled with this, its economy is stagnant.
And it is being charged 6% to borrow money. This is an astronomical rate for such a large
nation---the 7th largest economy in the world. Germany only pays a quarter of one percent!
If trends continue, it is only a matter of time before Italy cannot pay its debts. If
a bailout is required, no country in Europe, or even its Central Bank, could afford it.
The same with Spain. Yet Italy and Spain are seen as too big to
fail! Other nations are suffering similar economic
distress, with the contagion spreading across the continent. Huge pressure has been put
on the Euro, which is close to collapse as investors lose confidence.
When the Euro was first established, its architects never imagined such a dire situation. What
happened? Some review of the Euro’s history is helpful.
It was established in 1992 in a treaty agreed upon in Maastricht, The Netherlands. At that
time, all but 3 member nations decided to join. In 1999, the Euro was created. In 2002,
coins and notes came into circulation. Over time, other nations joined the EU, and adopted
the Euro. The system progressed relatively smoothly
until 2008, when the global economic crisis hit. Europe’s leaders implemented a 200
billion Euro stimulus budget to boost growth. But the crisis lingered.
In 2009, the EU asked Ireland, Spain, France and Greece to reduce their large deficits.
In late Dec 2010, Greece shocked the financial markets by admitting to debts of 300 billion
Euros. To put this into perspective, Greece’s debt was 113% of GDP!
The crisis spread to larger European economies in 2011 such as Spain and Italy, whose borrowing
costs rose sharply. To calm investors, Spain passed a measure to limit future deficits.
Italy passed an austerity plan with the goal of a balanced budget by 2013. To further buffer
the crisis, the EU established a 500 billion Euro bailout fund, called the European Financial
Stability Facility, or “EFSF.” This financed the Greek and Portuguese bailouts, but it
was too small to bail out larger countries. And much of the fund is gone.
The EU as a whole forecasted growth of only 0.2% for the second half of 2011. But the
private sector shrank for the first time in 2 years. The situation is so grave that the
EU head, Jose Manuel Barroso stated that Europe “faces its greatest challenge”---ever!
Some wonder: Why cannot European gov’ts simply print money to repay debt?
Let’s understand. Gov’ts typically raise money by issuing
bonds. These are essentially IOUs to interested investors whom the gov’t promises to repay
at a stated interest rate, with the main amount to be repaid at the bond’s date of maturity.
Like stocks, investors can trade bonds. If they do not like a country’s prospects,
they will sell that gov’t’s bonds, driving the price down. If investors have less confidence
in a country, the country’s borrowing rate increases. This is because investors see it
as a riskier proposition. But usually a country has some control over
its currency. For example, it can print more money thru a central bank to pay debt. This
ability also gives the nation power to devalue its currency to increase the competitiveness
of its economy. This puts individual countries largely in control of their destinies.
Let’s see how this works. Take a country with large debt. Its gov’t orders the central
bank to print a lot of money to pay off its debt. This explodes the country’s money
supply and reduces the value of its currency. The principle of supply and demand is at work---the
higher the supply, the lower the value, and vice versa.
Because investors do not like the country’s level of debt, they also sell its currency---further
worsening its value. This reduces the value of the country’s exports, making them more
competitive internat’ly. Its businesses can then sell more products and services---and
make more money. This process kick-starts the economy, leading to businesses growing
and generating jobs. The result is more income to tax and thus a higher gov’t revenue stream.
The gov’t can start new projects, expand others and pay its debt.
Having this control over its currency gives a gov’t tremendous leverage in managing
its finances. However, this is not the case with Eurozone gov’ts---nations which have
adopted the Euro. These do not have their own central banks. The Eurozone only has the
European Central Bank---the ECB. Individual nations have fallen into what some European
politicians call the “Euro straight jacket.” Countries tied together under just one bank
represents an enormous problem. Consider. If a Eurozone country is in economic trouble,
their bonds become less attractive to investors. This is because of the country’s reduced
ability to repay the bonds. Therefore investors sell them. This further lowers their value---and
attractiveness---reducing the gov’t’s ability to raise money thru selling bonds
since investors buy fewer. Investors move their funds to nations with stronger economies.
For example, investors dump Greek bonds to buy German bonds.
When the country’s bonds become less desirable, it must raise the interest rate it pays investors
to make them more attractive. Therefore, instead of being able to raise more money at low interest
rates---and reduce debts---they must pay more money in interest---thus increasing their
debts. The cycle is vicious.
Struggling, debt-burdened countries are trapped inside the Euro with no way to control their
destiny. Money simply flows within the Eurozone from strong economies to weak ones. Without
ability to manage the value of their currency or print more money, the economic condition
of debtor nations only grows worse. This is where Greece, Portugal, Ireland, Spain,
Italy and other debtor nations find themselves. During the boom years, these nations lived
beyond their means, borrowing large sums of money. With their economies in recession,
they are unable to borrow more at low rates. They are instead told: Reduce borrowing, raise
taxes and cut spending! But this is the very thing driving them into recession. In turn,
this drives up unemployment, resulting in more benefits paid and fewer incomes to tax.
Never mind the resulting civil unrest, riots and violence from angry peoples unwilling
to lose entitlements---who are unwilling to control their selfishness and laziness in
pursuit of ridiculously early retirement, as well as other gov’t benefits they have
long suckled upon. It is blind greed that demands the right to receive money that future
generations could never repay! In the end, the current policy is self-defeating.
These countries are trapped in a death spiral that threatens to bring down Europe and even
the very global economy. Today, the foundation of the world’s financial markets is crumbling.
European leaders are desperately trying to save their system. In meeting after meeting---summit
after summit!---they try to find a way out of the abyss.
Many opinions exist about how the crisis should be solved. One idea is to contain the problem
by acting conservatively and not taking drastic actions, instead implementing gradual reforms.
This would at best have a limited impact, and would also lead to continued uncertainty
in financial markets. Further erosion of confidence would continue pushing up borrowing rates.
Many countries would be unable to pay debts OR borrow enough to survive. The recession
would only spread---and deepen. A second option is to allow certain countries
to default, but then manage their return to financial health. If Greece, Portugal, Ireland
or other smaller countries defaulted, a customized solution could be implemented to help each
economy recover. But this approach is dangerous as investors would suffer catastrophic losses,
leading to a banking crisis of unimaginable proportions. Are you following the seriousness
here? People are searching for a clear, STRONG HAND!
A third possibility is allow certain countries to voluntarily leave the Euro---or force them
out. The intention would be to let them take their problems with them---out of the Eurozone.
But their problems would remain, and would probably lead to currency devaluations and
then collapse of their financial systems. This is because European economies have been
deliberately interwoven to ensure reliance on one another, along with the strengthening
of the union. There is no real mechanism to force---or let---countries out.
Some believe the EFSF should be increased for future bailouts of struggling countries.
In fact, banks have already agreed to just write off half of Greece’s debt. There will
be more write-offs for other countries. Others believe since overspending caused the
problem, the solution lies in offending countries adopting disciplined financial habits. They
don’t want more lending. They favor tough conditions applied before increasing loans.
Germany and France are adamant that all struggling EU members must get their financial houses
in order. Those who favor enforcing financial discipline
also want more integration between nations. They want “more Europe,” not less. This
enables greater monitoring. All solutions are painful. None are easy.
In a Dec 2011 crisis summit, a major push toward integration changed Europe forever.
Most member states gave up much of their sovereignty. Tax and spending plans must now be approved
by the EU before their own gov’ts do. Offenders will be automatically penalized. This was
a huge step toward fiscal union! A “2-speed” Europe is in motion---with
2 categories of EU membership. One is countries sharing the Euro---those in the Eurozone.
The other is those that have opted out of the Euro. In December, EU members failed to
fully agree on treaty changes, partly because Britain vetoed it. (All 27 members must agree
on every change.) Britain’s main concern was the proposed
tax on financial transactions. Since London is the largest financial center in Europe,
this tax would be a giant 50 billion Euros every year. Banks and insurance companies
would almost certainly leave London. Britain wanted an exemption. Germany and France objected.
In the end, Britain’s veto alienated it from the EU. The change was made as an intergovernmental
treaty involving the 17 Eurozone members. Now a closer look at Germany’s position---the
largest, wealthiest and most powerful economy in Europe. It has contributed the most to
the bailouts of Greece, Portugal and Italy. What the Germans think and do is crucial to
Europe’s destiny. Europe pivots around Germany. For some time, Germany has called for a new
treaty---with teeth to control member spending. Disputes would be decided by the European
Court of Justice. Germany does not view bailouts as the answer. They fear that unbridled printing
of money by the ECB will bring inflation. Think Veimar Republic, and the hyper-inflation
of the 1920’s. Germany is also against creating Eurobonds---where
member debts are pooled and sold to investors. They don’t want responsibility for other
nations’ debts. The average German hates seeing his hard-earned money support nations
he sees as spendthrift, lazy and unproductive. As the wealthiest economy in Europe, what
Germany says matters. Financially stressed economies, desperate for more funds and bailouts,
are looking to Germany for direction. They wait with bated breath on Germany’s every
word. Poland’s Foreign Minister summarized Europe’s
dependence on Germany in a Berlin speech: “I demand of Germany that, for your sake
and for ours, you help [the euro zone] survive and prosper. You know full well that nobody
else can do it. I will probably be the first Polish foreign minister in history to say
so, but here it is: I fear German power less than I am beginning to fear German inactivity.”
Stunning words from a country that so recently suffered brutal German occupation!
As European leaders scramble to stabilize their union, Germany holds the cards. How
will they be played? Will a cataclysmic financial collapse occur? If so, then what? Will Europe
completely collapse---simply implode!---or will it survive, and even thrive? Everyone
has opinions, but only one source provides real answers---the Bible!
God’s Word has accurately predicted the rise and fall of empires for millennia. For
example, it predicted the rise of the Babylonian, Medo-Persian, Greek and Roman empires. It
also foretold America and Britain’s greatness. What does the Bible reveal about Europe?
In Rev 13, a mysterious Beast is described. Let’s read: “I [the apostle John] stood
upon the sand of the sea, and saw a Beast rise up out of the sea, having 7 heads and
10 horns, and upon his horns 10 crowns, and upon his heads the name of blasphemy.” This
Beast is the Roman Empire, the most powerful empire the world has ever seen. This is why
it is shown as a terrifying Beast, totally unlike anything before it.
Revelation 17 ALSO speaks of a Beast. This one arises out of a bottomless pit, and is
ridden by a woman. This is the Holy Roman Empire, which was the Roman Empire after its
fall in AD 476. The woman who rides it---called a ***---represents a great false church.
The revived Roman Empire was given the title “Holy Roman Empire” because it was guided
by this powerful church. This “woman” church is described as committing fornication---political
relations---with the kings of the Earth. Ask: Which church has ambassadors to many nations
around the world? Which church is synonymous with nation-state?
The answer is obvious. The Holy Roman Empire was prophesied to go
thru 7 revivals. 6 have come and gone. These were led by Justinian, Charlemagne, Otto the
Great, Charles V and Napoleon, with the 6th revival culminating in Hitler and Mussolini.
All 6 controlled Europe. One more revival is coming---in our time! Read my booklets
Who or What Is the Beast of Revelation? and Revelation Explained at Last! A very detailed
fuller picture of prophecy is carefully explained in my thorough book The Bible’s Greatest
Prophecies Unlocked! -- A Voice Cries Out. You will want to read it!
A 10-nation economic, political and military combine will arise in Europe and shock the
world. Led by Germany, and more powerful than America, Russia or China, it will control
Europe and dominate all nations. At its helm will be 2 men: a mesmerizing false religious
leader the Bible calls the “false prophet,” and a charismatic civil leader who represents
the Beast. This final union of church and state will bind Europe as never before.
While many politicians strive to bind Europe thru finance, most miss the historical pattern
that religion has been the only glue capable of bringing diverse peoples together. A tiny
few do see this pattern. One may ask: Aren’t most Europeans cynical and apathetic toward
religion---or even atheist or agnostic? And how would an economic collapse unify Europe?
The Beast and false prophet are foretold to galvanize Europe thru miracles. These will
be world-shaking---and not of God, but rather brought by Satan. The Bible calls them “lying
wonders.” Watch for them! The false prophet will unify the masses behind religion, while
the Beast will solve the economic crisis. Together, they will take Europe from despair
to incredible prosperity! This coming system is called Babylon the Great.
Revelation describes its immense wealth. Let’s read: “The merchandise of gold, and silver,
and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet,
and…wood, and…ivory, and…vessels of most precious wood, and of brass, and iron,
and marble, and cinnamon, and odors, and ointments, and frankincense, and wine, and oil, and fine
flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls
of men.” Describing a return to the Roman practice of slavery, it concludes speaking
of her “fruits” and “dainty and goodly” things which the masses it says “lusted
after.” From the ashes of Europe’s financial crisis,
a superpower will arise. It will sit astride the entire world like a colossus, dominating
global trade. Just before Christ returns, prophecy reveals Europe will become the center
of the world!!! Watch Europe! By God’s authority, I tell
you these things will happen! Until next time, this is David C. Pack saying,
“Goodbye, friends.”
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