German Gold Repatriation Signals Economic War

German Gold Repatriation Signals Economic War

FRANK RUMPENHORST/AFP/Getty Images

But does it signal looming hot war too?

On January 16, Germany’s central bank made a startling announcement. It asked for the return of gold stored in America and France. Six hundred and seventy-four gleaming tonnes will be relocated to vaults in Frankfurt.

The statement by the second-biggest gold holder in the world sent a shudder through global markets. Newspapers went into speculation overdrive. Why would Germany ask for its gold back now? Did Germany no longer trust America to hold its gold?

Veteran gold trader Jim Sinclair said the Bundesbank’s announcement was a warning that investors should take physical delivery of their gold—that in an atmosphere of skyrocketing debt and slowing economies, counter party risk was growing: “This sends a message about storing gold near you and taking delivery no matter who is holding it.”

According to Sinclair, the announcement signaled an astounding breakdown in trust between Germany and America. “When France did this years ago it sent panic amongst the U.S. financial leadership. History will look back on this salvo as being the beginning of the end of the U.S. dollar as the reserve currency of choice,” he said.

The incident Sinclair is referring to is the notorious failure of the Bretton Woods currency system in 1971. By order of President Nixon, America defaulted on its gold obligations. From then on, only paper currency would be used to pay America’s debts. Foreign nations, led by France, balked, but they lost the battle. America went off the gold standard, and today’s fiat, floating currency system resulted.

Has America finally printed one too many dollars out of thin air? Has Germany finally had enough of America’s handling of the global financial system? German fear of inflation from money printing is well telegraphed. The Bundesbank has fought the European Central Bank over its quantitative easing programs.

Is Germany now signaling that a confrontation with the Federal Reserve is immediate? And that Germany will throw its weight behind those who are pushing for an alternative global reserve currency to the dollar?

Probably not quite yet, at least not in a big way.

Germany has another fish to fry first—one that comes with escargot appetizers.

But first, why is Germany’s gold held in New York, London and Paris anyway? Why doesn’t it hold its own gold? According to the Bundesbank, the reason is twofold.

First, storing gold in America makes it easier to sell, or pledge, in case of an economic emergency. It is easier for others to quickly take ownership of it.

The second reason is that it was deemed safer to spread Germany’s gold out during the Cold War to protect it from the Soviets. According to the Bundesbank, that is no longer a concern. That Germany feels safe enough to bring it home speaks volumes about Germany’s changing relationship with Russia.

But there is a third—far more important, and unmentioned—reason Germany’s gold isn’t kept at home.

Following Germany’s defeat in World War ii, it was the Allies’ purpose to ensure that Germany could never again disturb the peace of the world. Forcing Germany to store its gold overseas was the primary financial mechanism preventing Germany from ever starting another war. As analyst Byron King notes, “One way for the U.S., Britain and France to keep a leash on Germany was to keep ‘German’ gold under control outside of that country’s borders.”

As long as the Allies controlled Germany’s gold, the Allies had a conqueror’s insurance policy that ensured Germany would not once again strike out on its own and disturb the peace. Without its gold, Germany’s currency, and thus its economy, could be destroyed virtually overnight.

Now America, Britain and France appear to think that insurance policy is no longer needed. It will be a tragic mistake.

Germany’s Bundesbank noted that it has already repatriated most of its gold from London. Frankfurt has retaken possession of 850 tonnes out of 1,300 tonnes stored across the Channel. Now it is repatriating 300 tonnes of gold from America, which equates to about 20 percent of its holdings in the U.S.

Interestingly, the German central bank says it will take seven years to get its gold from America. What is that all about? Why would America need seven years to transfer what is essentially a bunch of bricks? Is America still hesitating at relinquishing control over Germany?

The most important part of Germany’s announcement, though, may be that it is taking full custody of all of its gold held in Paris. All 374 tonnes will be transferred home—and you can be sure it won’t take seven years. It took less than three years for Germany to remove more than twice that much from Britain.

This is a sign that Germany is about to stop playing Mr. Nice Guy with France.

A big battle is raging over control of Europe’s economic destiny. Northern Europe, led by Germany, is fighting for control of the European Central Bank against a group of mostly southern nations led by France. The outcome will impact euro exchange rates, debt markets, employment, social stability—and ultimately, even which countries will remain part of the eurozone.

“The Germans kind of feel like they’ve been overrun in this decision-making process,” says Michael C. Burda, an economist at the Humboldt University of Berlin. Bringing the gold home, he said, “is just a signal that Germany is not going to take this much longer.”

Germany is getting ready to deal emphatically, and once and for all, with France. France is about to find out who the true financial power of Europe is. And Germany is signaling to the world that the days of its apologizing over its World War ii past are over. No longer will it weakly submit to Paris’s demands.

But after Berlin silences Paris, what will Germany’s next move be?

Here is what Trumpet editor in chief Gerald Flurry wrote after Russia invaded Georgia in 2008:

I believe it is very likely Germany and Russia have already cut a deal. … The presence of a deal between these two nations is not a sign of peace. Like the Molotov-Ribbentrop pact, and so many others before it, it is a sign of exactly the opposite. Both of these nations are looking to secure their shared border—so they can pursue their imperialistic aims elsewhere! It is a precursor to war! That is the way they operate! And the U.S. has no clue.

Germany has secured its border with Russia. Its willingness to store its gold in Frankfurt again is evidence it no longer fears Russia the way it once did. Now with its eastern flank secure, Germany is going after Paris for unchallenged control of Europe.

Then, once it is done subduing its only major counterweight in Europe, it will turn on America and Britain.

Germany’s old World War ii foes will soon regret turning Germany loose. The world is about to see a much stronger and aggressive German Bundesbank—and consequently, German nation. German confidence and power grows with each brick added to its already formidable stack of gold.

The Problem of Father-Free Zones

The Problem of Father-Free Zones

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Father-free zones have become very prevalent especially in inner cities as more illegitimate children are born and fatherlessness in America continues to be on the rise.

Though the presidential inauguration and celebrations are dominating the current news cycle, President Obama’s recently proposed executive order on gun-related violence is still a popular topic. The 23 actions listed in his order are a convolution of recommended communications and actions between government agencies, health-care providers and other related groups. Despite all of what is said in the order, the recommended actions don’t identify the problem or provide any solutions. Almost as though gun-related violence is easily cured, number 14 on the list directs the Centers for Disease Control to research the cause of gun violence and then offer solutions. Isn’t the executive order supposed to do that?

As a nation, and as individuals, we will never find solutions to our most complex problems without identifying the cause. Gun control, mental health care and bureaucratic communications aren’t solutions to the violence and murder happening on our streets. The problem and solution is much closer to home.

In a brief but discerning article by the Investor’s Business Daily (ibd), a leading cause of our violent culture is discussed. The article identifies that so many of our families and inner cities are father-free zones—meaning that children and families in large areas of our society, especially inner cities, don’t have a father present. The article states, “Today, 72 percent of black children are now born out of wedlock. In fact, 36 percent of white children are born out of wedlock. Of Hispanic children, 53 percent are born outside of marriage.”

In this article from USA Today, we’re shown that the numbers are even larger and that it’s just a small percentage of these illegitimate children who have their father living with them.

These statistics are shocking! Immense numbers of illegitimate children are being born in America! A generation of children is being raised without understanding the sanctity and responsibility of marriage and family. Marriage is considered obsolete! More importantly, the majority of these neglected children don’t know how important the role of the father is.

The ibd article goes on to state, “The consequences of fatherlessness are staggering. In such homes there is no male role model who gets up every morning, shaves, gets dressed and goes to work, then comes home to have dinner with his family. There is no male role model to restrain a young man’s masculine impulses and guide him into adulthood. The situation is made worse by the staggering unemployment among young black males that soaking the rich won’t alleviate. These young men find their role models in promiscuous rappers and the leaders of street gangs.”

With no father present, the essential male example is missing. The father is to provide the dominant male influence necessary to shape and mold the mind of a young child or teenager. Without that paternal influence, few are being taught to control their emotions or their actions. Few are being taught to respect others. Few are being taught the value of hard work. With the father taking the lead, our homes are to be our greatest environment for learning. Yet, at an early age the role of the father is subjugated and these neglected children are turned over to public day care services, school systems and government-run entitlement programs, which are all woefully inadequate surrogates. As the ibd article states, the void left by absentee fathers is filled by the lure of street gangs and our entertainment culture. Music, movies and television that glamorize drugs, crime and violence are the leading influences in shaping the minds of this lost generation. Our neglected children are going to follow these violent examples, and the vicious cycle continues. Is it any surprise that our inner cities resemble lawless war zones?

The traditional family is under attack. The father, as the traditional head of the family, is being targeted above all else. There is a conspiracy against fatherhood! Gun violence isn’t the cause of our problems. It is simply an effect of the demise of the traditional family, and more specifically the role of the father. Our inner cities are a graphic example of what happens to a society and a nation when the all-important role of the father is rejected.

Eliminating Father-free Zones Forever

When Jesus Christ came to this Earth, He shared the most encouraging message mankind has ever heard. At the very heart of His ministry was a message about God the Father (John 1:18). The gospel message that Jesus Christ delivered is the good news about the soon-coming Kingdom of God—which is the Family of God. God is a Family, and everything that Jesus Christ accomplished was according to His Father’s will (John 5:30).

When God created Adam and Eve, He created marriage and family (Genesis 2:24). He also placed Adam as the head of the family, with Eve being his help meet (Genesis 2:18-23). In His perfect wisdom, God created this physical family relationship so that we can better learn, understand and prepare for His greater spiritual Family (Ephesians 5:32). God created the role of the physical father so that we can better understand His role as our spiritual Father. Just as we were made to need our physical fathers, because they are essential to our well-being, so we were made to need our spiritual Father—He is essential to our greater well-being!

God isn’t an absentee Father. He has allowed us, as His creation, to make the wrong choices. Father-free zones, our inner cities and our violent society as a whole are the result of our damaging choices—rejecting God and His family law of love. God wants us to turn to Him and look to Him as our Father, and make the right choices by putting Him first in our lives (Matthew 22:37-40).

The wonderful news is that Jesus Christ is about to return and establish God’s Kingdom forever. As humans, we will finally see and understand our incredible human potential—why we were created! We will be taught the importance of God’s family government and His laws. As His children, we will be close to our Father and understand the loving role He fulfills (Revelation 21:3-4). Never again will our families or our societies experience father-free zones!

Wildfires Rage for Weeks in Australia

Large, fast-moving bushfires continue to sweep across New South Wales and Victoria, Australia, this week. Over 122 fires are still burning in New South Wales, and 17 of them are uncontained. Last week’s extreme heat and gusty winds complicated the efforts of firefighters who were trying to stop the blazes. Experts say the battle against the flames will continue for weeks.

Record-high temperatures and drought have caused the fires to be more dangerous than in years past. So far, they have burned over 700 square miles of land and have killed thousands of livestock and at least one person.

Wildfires are common during Australian summers, but should they be? Should people have to constantly live in fear of losing their homes and land? The Bible addresses the issue of environmental disasters. God specifically promises to bless the obedient with good weather and to curse the disobedient with bad weather.

Is Australia cursed? To find out more, look up Deuteronomy 28 and also read our free booklet Why ‘Natural’ Disasters?

Merkel Coalition Suffers Defeat in State Elections

German Chancellor Angela Merkel’s conservative-led coalition suffered a narrow defeat on Sunday. During state elections in Lower Saxony, Merkel’s Christian Democratic Union and the Free Democrats lost their majority. The state legislature is now controlled by the Social Democrats and the Green Party, which won a single-seat majority. Prior to Sunday, Merkel’s coalition had controlled the northwestern region for 10 years straight.

The outcome in Lower Saxony may indicate trouble for Merkel in this year’s national elections.

In the fall, Merkel will seek a third four-year term. The chancellor and her Christian Democratic Union currently enjoy favorable poll numbers. However, the opposition believes that the Lower Saxony vote reveals she is vulnerable.

The upper house of the German Parliament represents the nation’s 16 states. Since 2009, Merkel’s coalition has lost control of four states. Losing Lower Saxony now gives opposition parties a majority in the Bundesrat.

Watch Germany’s federal elections in September. Bible prophecy states that a powerful leader will soon emerge in German politics. This leader will lead Berlin—and, ultimately, a united Europe—into a massive war for global domination.

Germany: Dominating Renewable Energy

Germany: Dominating Renewable Energy

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Announces ‘world’s largest power-to-gas plant opened in Stuttgart’

German trade, investment and renewable energy industry experts attended ires 2012 in Berlin November 12-14 in a hunt for greater market share. During the conference, the government stole the show with its announced claim that the “world’s largest power-to-gas plant opened in Stuttgart.”

Over 600 attendees from some 40 countries passed through the doors of the capital’s Congress Center during the seventh International Renewable Energy Storage Conference and Exhibition (ires).

The Stuttgart plant, which has received historic federal financial favor, handles power demands of 250kw, with a peak daily output of 300 cubic meters of methane. As the biggest factory of its type, it is intended to be savior and master of renewable energy utilization and storage.

“The German Energy Agency is working jointly with expert stakeholders from business and research to unleash the benefits of using natural gas grids in order to effectively promote renewable energy sources,” asserted renewable energy expert Thomas Grigoleit.

Collaboration between the European Association for Renewable Energy, the World Council for Renewable Energy and EnergyAgency.NRW ensured yet again that the continental energy conference was dominated by Europe’s most powerful country.

nrw acts on behalf of the provincial government of North Rhine-Westphalia in all things energy. Despite the claim of impartiality, nrw influences fields of consultancy, research, technical education, demonstrations and market leadership. As such, it claims contribution to energy saving and renewable advancements for corporations, local authorities and private individuals.

“On behalf of the nrw Climate Protection Ministry, the EnergyAgency.NRW with EnergyRegion.NRW is responsible for a powerful economic cluster for climate protection incorporating the eight networks for biomass, fuel cells and hydrogen, energy-efficient and solar construction, geothermics, fuels and drives of the future, power plant technology, photovoltaics and wind energy. In the spotlight: highly competitive cooperations to initiate innovative projects and products, speed up their market readiness and exhaust all economic potentials. This also includes providing support for companies from nrw in the domain of foreign trade.”

Germany sees itself as lead actor of what it claims to be “the energy revolution.” Chancellor Angela Merkel, speaking at the energy summit, assured enhanced cooperation regarding renewable initiatives in an effort to maintain the country’s elite status for ongoing advancements in renewable energies.

“Although all wealth comes from the ground, prosperity and affluence on a national scale always have come also by industry and commerce,” wrote Herbert W. Armstrong in his acclaimed book The United States and Britain in Prophecy.

It is such “prosperity and affluence on a national scale” that Germany continues to procure through its policy, led by its corporate elites, of leadership through domination of industry and commerce as the fiscal gatekeeper of EU fortunes.

The pinnacle publication on the subject of renewable energy, the Holy Bible, prophesies of these very events, identifying Europe’s economic powerhouse as most venerated by the “merchants of the earth” (Nahum 3:16; Revelation 18:3, 11, 15, 23).

As a prime example of this policy of power projection, request Trumpet founder and editor in chief Gerald Flurry’s illuminating booklet Germany’s Conquest of the Balkans.

Hostage Crisis Draws Algeria Into Mali Chaos

Hostage Crisis Draws Algeria Into Mali Chaos

FAROUK BATICHE/AFP/Getty Images

Islamic militants who seized hundreds of workers at an Algerian gas plant have drawn Algeria into the ongoing Mali crisis. More importantly, they have provoked a stern response from Europe.

The raid at Ain Anemas, early January 16, was conducted by a militia calling itself the “Masked Brigades” or “Signers in Blood.” The group is affiliated with al Qaeda’s North African franchise, al Qaeda in the Islamic Maghreb (aqim), which is the terror entity that recently helped “liberate” northern Mali.

The militants said they were holding 41 Westerners among the hostages, most of them European. During the siege, six of the foreigners were reportedly killed by the militants and 25 escaped on their own. But when Algerian air and ground military forces stormed the plant for rescue efforts, more people were killed during the military’s four-day standoff with the terrorists. The death toll continues to rise as more bodies are discovered. About 600 hostages have been freed.

In an official statement, the Islamist terrorists said: “We bear the Algerian and French government and the countries of the hostages’ full responsibility in not speeding up the implementation of our demands [to stop] the aggressive assault on our people in Mali.” The French have intervened in a campaign against the advances of the Islamists in Mali, and the Algerians have granted overflight permission to French fighter jets and sealed their southern border with Mali, cutting off essential fuel supplies to the terrorists in northern Mali.

Unofficial reports by escapees indicate that the motive for the kidnapping may also be religious. Abdelkader, a 53-year-old from the nearby town of Ain Amenas, said the terrorists assured that they “would not hurt Muslims but were only interested in the Christians and infidels”—interested in killing them, that is.

Taking hostages is also a lucrative fundraising avenue for terrorist groups in the region. Ransom payments have earned them tens of millions of dollars. Algerians have lobbied for the United Nations to ban the common trend of governments paying ransoms to these militias, saying it frustrates counterterrorism endeavors.

The hostage crisis in Algeria exposed the volatility of the region and the wider ramifications of the Mali conflict. A Stratfor analysis of Dec. 12, 2012, explained that concerns about Algeria’s volatile southern border with Mali, and aqim’s connections with Algeria, the country of its birth, were part of the reasons why some in the international community opposed or delayed the intervention in Mali.

But now the conflict has spread into Algeria, Europe has no choice but to become more involved. With this latest crisis, France and Europe are more emboldened to help fight Islamist militants for their own security and economic concerns. Ain Anemas is a gas plant in the southeastern part of Algeria that produces one sixth of Algeria’s natural gas. Algeria is Europe’s third-largest gas supplier.

Watch for the Mali crisis to spill over directly or indirectly into other nations in the region as it has in Algeria. And watch for tensions between radical Islam and Europe to increase to the point of bloody conflict reminiscent of the Crusades.

Europe is prophesied to be the entity that decisively confronts radical Islam in the Middle East and North Africa. Already, it has intervened in Libya and is now intervening in Syria and Mali. Our free booklet The King of the South and our article “The Last Crusade” explain these prophecies and their significance in greater detail.