Cypriot Bailout: A German Victory That Threatens to Unleash Chaos

Cypriot Bailout: A German Victory That Threatens to Unleash Chaos


Germany’s demands for Cyprus shock the world.

The Cypriot bailout agreed in the earlier hours of Saturday morning could be a game changer for the eurozone. It was a resounding victory for Germany, but the compromise reached could see banks collapse across Southern Europe.

Cyprus places Germany in a dilemma. The country needs a bailout of around €17 billion (us$22 billion) to avoid going bankrupt. To German elites, this is a great opportunity to gain control of one of the world’s most strategic pieces of real estate. But ordinary German taxpayers don’t care about this. They don’t want their money going to what they believe is a crooked banking system.

Saturday’s decision allows Germany to have its cake and eat it. The meeting of eurozone finance ministers decided to loan Cyprus €10 billion. The International Monetary Fund (imf) will probably also join in. But the bailout comes with a shocking and unprecedented condition.

Cypriots will have money taken directly out of their bank accounts. Monday is a bank holiday in Cyprus. By the time banks open on Tuesday, all depositors will have a chunk taken out of their account. Accounts with less than €100,000 will face a levy of 6.75 percent. Those with more, will be taxed at 9.9 percent.

This decision blurs the line between taxation and theft. If you had $10,000 of savings in a bank account—that you had already paid tax on—the government would take $675.

Even government members were surprised. “My initial reaction is one of shock,” said the head of parliamentary financial affairs committee, Nicholas Papadopoulos. “This decision is much worse than what we expected and contrary to what the government was assuring us, right up until last night,” he told Reuters. The current leadership has constantly promised there would be no tax on bank deposits. They have been forced into total surrender by Germany.

But this course of action could solve big problems for German Chancellor Angela Merkel. The deposit levy is expected to raise nearly €6 billion. It reduces the amount Germany will have to contribute, and German taxpayers are less likely to be hostile to a bailout if they see the Cypriots having to pay some money too.

Germany was reportedly behind this demand. “By many accounts, Germany entered the negotiations with a radical stance, arguing from the start for a large hit to depositors,” writes think tank Open Europe. “It is clear that, with elections looming, the German government is no longer willing to simply foot the bill to avoid contagion. This could be a very important turning point for the eurozone crisis.”

In addition to the bank levy, Cyprus will raise its corporation tax from 10 percent to 12.5 percent. Its low corporation tax has long been a sore point with many EU nations. Russia will also chip in by extending a €2.5 billion loan that it already gave Cyprus.

Savers will receive shares in the banks that are forced to take their money, but even so, Cypriots are incensed. Cooperative banks, which were open on Saturday, were forced to close as people rushed to get their money out. One man drove to his bank with a bulldozer, and threatened to take the money out himself. ATMs across the country ran out of notes as people tried to withdraw all the money they could.

But the aftereffects could be disastrous. Spanish leaders insist that this is a one-off imposition. But leaders said the same thing about bond haircuts in Greece, which EU leaders have considered imposing elsewhere. Dutch Finance Minister Jeroen Dijsselbloem, who chairs the group of eurozone finance ministers, refused to say that the tax would not be repeated.

Spain has already been facing a slow-motion bank run, with savers steadily withdrawing their money. Spain, Italy, and even nations like France, Belgium and Austria could be next to request a bailout. Would you keep your money in a Spanish bank if you thought there was a chance that the EU might help itself to some of your cash? And if people start withdrawing their money from Spanish and Italian banks en masse, it will bring down their banking systems.

The EU bailout fund isn’t big enough to bail out these two countries simultaneously. The resulting panic could bring down the euro.

Even if Spanish savers don’t rush out to get their money next week, they will be far more keen to do so at the first hint of trouble anytime in the future.

“The move was apparently pushed by the Germans,” writes Robin Shepherd, who owns and publishes The Commentator. “Every depositor in southern Europe has now been put on notice that if their country needs bailout money any time in the next few years the deal could easily involve swiping money from the accounts of ordinary savers.”

That could be the pattern from now on: Germany bails out a nation in return for key concession. But not only do they get power over that nation, but ordinary savers are recruited to provide some of the cash. The German taxpayer will be much less opposed to this kind of bailout, because Germany gets the same amount of power for a lower cost.

But there is yet more uncertainty. The Cypriot parliament was meant to meet on Sunday to approve the bailout. The meeting has been cancelled. The most obvious reason is that the government isn’t sure the bailout will be approved. It wants more time to drum up support. Cypriot President Nicos Anastasiades has said that a vote against the bailout is a vote for Cyprus to leave the euro. So if it doesn’t pass, Cyprus could be the first country to leave the euro, putting the eurozone in uncharted territory.

If Cyprus leaves the euro, though, it would almost certainly mean the total collapse of the island nation’s banking system. It must submit to Germany, or else. Only, Germany’s terms are so harsh that Cyprus is seriously considering the “or else.”

The Trumpet has long said that the euro was deliberately set up to trigger a crisis. This crisis would force Europe to unite and bring more power to Germany. We are seeing that dynamic in action in Cyprus.

But the crisis is far from over. Its job is not yet done. It will force Europe to unite into a 10-nation superstate. And the Cyprus bailout could mark the beginning in a new stage of this crisis.

For more on where this crisis is leading, see Trumpet editor on chief Gerald Flurry’s article “A Monumental Moment in European History!

Israel Pleads With Europe for Help

Israel Pleads With Europe for Help


The Israeli president goes to Europe to deal with Israel’s problems.

Shimon Peres, the president of Israel, stood before the European Parliament on March 12 and begged for Europe’s help in dealing with terrorism in the Middle East.

It was the first time an Israeli leader has addressed the body in almost 30 years. President Peres focused on two specific issues: the importance of the European Union branding Hezbollah as a terrorist organization, and taking action against Iran’s nuclear ambitions.

Hezbollah has been blacklisted by the United States for over 17 years, but Europe has not taken the same initiative up to this point. Some European nations, including Britain, are willing to label Hezbollah as a terrorist group, but others remain reluctant, despite abundant evidence—from confessions of captured Lebanese terrorists to bloodstained cobblestones in Bulgaria.

A dangerous mindset is being highlighted in the European Parliament. Some say the lack of action stems from a fear of reprisal attacks from the Lebanese-based terrorists. It is willing to sit back as Hezbollah grows in power and threatens Israel’s northern border.

In speaking about Iran’s nuclear capabilities, the Israeli president suggested that the EU condemn the Islamic Republic. He referred to the U.S. condemnation of Russia in 1975, which he said was “surprising and effective.” “A moral voice will encourage the Iranian people in their fight for freedom, in their struggle against misery,” Mr. Peres said.

The most intriguing aspect of the president’s speech revolved around his view of Europe itself, and its relations with the Jews.

President Peres started his speech recalling his childhood as his family fled Europe in 1934. Then he recalled how, “in 1942, most of the inhabitants of my town were burned alive.” He pointed out that more Jews have been butchered in Europe in the past 100 years than in the previous 2,000.

Despite this history, the Israeli president stood in the heart of Europe asking for help. He went on to praise Europe for having “divorced its past” and having “converted the divided Europe of the last thousand years, to the unified Europe of today.”

These statements—and the fact that they are being made by an Israeli president before the European Parliament—resonate with prophetic significance.

As longtime Trumpet readers are aware, the Bible prophesies that the challenges facing the Jewish state of Israel are going to continue to grow in the time ahead. It tells us that the alliance between America and Israel will continue to deteriorate, and there will come a point that the Jews seek saving aid from another source—Europe. All of these prophecies are explained in detail in our free booklet Jerusalem in Prophecy.

Biblical prophecies go even further, providing several details that make President Peres’s speech all the more filled with unintended irony. Europe will step in and deal with Iran. The president may get what he wished for. However, the European powerhouse will not stop there. God says it will enter into the “glorious land” and turn on those who, at first, it appears to be helping (Daniel 11:41). That will be one of the greatest double crosses in history.

When Israel goes to Europe for help, alarms should be sounding worldwide. Study Germany and the Holy Roman Empire to see how this world-shaping calamity will develop.

Iran Tests, Gaza Fires

Iran Tests, Gaza Fires


This week Iran test-fired both its Fajr-5 and Nasreat-10 missiles.

Iran successfully tested two types of short-range missiles in military operations on March 9. Iran’s ground forces staged the three-day drill in the country’s southwestern province of Khuzestan.

The two types of missile tested were the Fajr-5 and the Nazreat-10. The Fajr-5 made headlines around the world when a number were launched in the missile barrage from Gaza into Israel in November. Their range allowed them to penetrate deep into Israel. Some went as far as the foothills of Jerusalem.

The Fajr-5 has been developed in Iran for a number of years. When they showed up in Gaza, controlled by forces that couldn’t design such a weapon themselves, questions were raised as to where they came from.

Israel continually accuses Iran of smuggling the weapons through Africa, up into the Sinai Peninsula, and then through the tunnels on the border of Egypt into Gaza. Israel has been accused of carrying out an air raid in October on a Sudanese factory that was producing weapons allegedly destined for Gaza.

Hamas forces based in Gaza readily admit they get weapons from Iran. Mahmoud Zahar, a prominent Hamas member in Gaza, told reporters on November 24 that he was confident that Iran would increase military and financial support.

The Fajr-5 is tested in Iran, and launched in Gaza. The Nazeat-10, the other missile Iran tested on Tuesday, is the Fajr-5’s big brother. While the radius of the Fajr-5 is approximately 45 miles, the Nazeat-10 can reach up to 62 miles.

During Israel’s conflict with Gaza, sirens rang in both Jerusalem and Tel Aviv. Fajr-5 missiles landed in areas surrounding the cities. The technology for those missiles came from Iran. What happens if the technology for the Nazeat-10, or the missiles themselves, makes its way to Gaza? Will Hamas show restraint in using the longer range weapons?

In late 2008, Israel undertook Operation Cast Lead with the intent of stemming the attacks on Israel from both militants and rockets. The operation succeeded in slowing the attacks from Hamas terrorists, but failed to destroy them. They came back more powerful than ever in 2012 with the use of rockets such as the Fajr-5.

Israel’s Operation Pillar of Defense took place in late 2012, as a response to rockets fired from Gaza. The surgical strikes by Israel in response hindered the terrorists, but once again failed to destroy them. What will happen in the next round?

If Hamas follows its current trend, it will be stronger in the next round of conflict. Watch Iran and its allies as they test weapons and flex their military muscle. What is developed and tested in Iran invariably finds its way to the Gaza Strip.

Watch as the Persians push further to promote their agenda in the Middle East and abroad. Read The King of the South to see how this endeavor will end.

Germans Demand Radical Change in the EU

Germans Demand Radical Change in the EU

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One of Germany’s main parties calls for Europe to transform into a superstate, while a new party goes to the other extreme, calling for Germany to quit the euro.

The European Commission should expand its powers to become a full-fledged European government says Germany’s Social Democratic Party (spd) in a draft of its manifesto.

The EU proposal reportedly described looks a lot like a federal superstate. As German news media reported on March 9, the European Commission would become a cabinet of ministers, with real powers, elected by the European Parliament. A second chamber would be added to the parliament, where national governments would be represented.

German Chancellor Angela Merkel has outlined similar ideas. If the spd is putting this in its manifesto, it shows that Germany’s two biggest parties are serious about Europe becoming a superstate.

The spd also called for the creation of a common European debt fund—which would mean giving up more sovereignty to the EU.

The spd could do well in the upcoming elections. Current polls show current Chancellor Angela Merkel and her allies receiving 45 percent of the vote, and the spd and its ally receiving 43 percent—so it is too close to call. To make matters more unpredictable, Angela Merkel’s traditional coalition partner, the Free Democrats (fdp) are polling at around 5 percent. To be represented in Germany’s parliament, a party must receive a minimum of 5 percent of the vote. Less than this, and they receive no seats. The fdp’s popularity just needs to sink by a fraction of a percent, and Merkel would be completely deprived of a key ally.

To complicate matters further, there is a new party on the scene. Called “Alternative für Deutschland” (afd), it seeks the opposite: It wants Germany out of the euro.

“The introduction of the euro has proved to be a fatal mistake, that threatens the welfare of us all,” states the afd website. “The old parties are used up. They stubbornly refuse to admit their mistakes.” The afd wants Germany return to the Deutschmark, or to form a new currency with the northern countries—Austria, the Netherlands, Finland and perhaps some others.

Germany has been bailing out Europe and in return Berlin has been gaining more influence over Europe. This is great, if you’re a leader in Germany or a strategic planner. But the average German voter doesn’t see the benefit. The vast majority are opposed to bailing out Cyprus. If a Euroskeptic party becomes a growing concern in Germany, then eurozone nations will have to give up even more to persuade Germany to bail them out.

How will the new afd party impact Europe’s politics? Open Europe, a reliable think tank, is convinced that there is no way it will come close to receiving the 5 percent of the vote necessary to enter Germany’s parliament. This analysis is hard to dismiss. But in a year when Beppe Grillo’s Five Star Movement came from nowhere to become Italy’s most popular political party, anything seems possible. The new party will certainly apply pressure on Angela Merkel as she struggles to deal with unpopular bailouts.

One thing is clear though: Germans aren’t happy with Europe the way it is now. The big parties want to change it into a superstate. The upstarts want to overthrow it entirely. Either way, Germans want to radically change Europe.

How Christ Speaks to Us

Jesus Christ said that He speaks to His Church, and yet there are all kinds of interpretations of the Bible. Christ does not speak in conflicting or contradictory terms. Why is it people can’t understand how Christ speaks to us? If we don’t grasp how He speaks to us, we’re going to be deceived.

Empire’s Last Hurrah

Empire’s Last Hurrah

Scott Wylie/Flickr

Two bastions of Britishness hold out against all odds. But their time is running out.

Once, Britain ruled the waves by virtue of its possession of virtually all of the world’s most strategic sea gates. Now, two of the most venerable remain fighting for the right to retain their British heritage, against strenuous efforts by Hispanic politicians to seek their possession: Gibraltar and the Falkland Islands.

Despite the fact that the populations of both these countries have overwhelmingly voted in support of continuing attachment to the Crown, and despite their legal standing of having been virtually gifted to Britain by Spanish overlords in the past, Spain (in respect of Gibraltar) and Argentina (in the case of the Falklands) now seek to repudiate their legal occupation by Britain and claim them as part of their own sovereign territory.

What is now apparent is that the new pope, Francis i, may well enter the fray to tip the scales in favor of Hispanic annexation of these two sea gates.

With no one of the caliber of Margaret Thatcher to rush to their aid, and having lost the air and naval capacity for a rerun of the Falklands war, given the appeasing nature of today’s British government it is highly likely that the day will come when Britain capitulates to Hispanic rule of its two remaining significant sea gates.

British political economist Rodney Atkinson has this to say about the disposition of the Vatican and its newest papal resident on these issues: “We should never forget that the most consistent and pernicious enemy of the sovereignty of the British people and their freedom of religion has for centuries been the Vatican. From 1066 to the rule of terror of Bloody Mary, to Guy Fawkes, to the Babbington plot to assassinate Elizabeth i, to the infamous 1934 Concordat with Nazi Germany and the promotion of war in the Balkans in the 1990s, the imperial politics rather than the religion of the Roman Catholic Church has been its critical characteristic” (e-mail, March 15).

Atkinson highlights the “imperialist and political” oath of the Jesuits to the Roman Catholic Church, quoting this excerpt from that oath: “I do further declare that I will help, assist and advise all or any of His Holiness’s agents, in any place wherever I shall be, in Switzerland, Germany, Holland, Denmark, Sweden, Norway, England, Ireland or America, or in any other kingdom or territory I shall come to, and to do my outmost to extirpate the heretical Protestants or Liberal doctrines, and to destroy all their pretended powers, regal or otherwise” (emphasis added).

He goes on to observe, “The new pope, a Jesuit and formerly the Cardinal Bergoglio of Buenos Aires, is in that tradition.”

He then quotes from the Traditional Britain website:”Unfortunately, a look at past press reports paints a portrait of the cardinal as a fanatic Argentine nationalist who defends the 1982 invasion and disregards the democratic wish of the islanders to retain their links to the UK.

“This was clear on April 1, 2010, when on the occasion of a commemoration of the start of the 1982 war, Bergoglio went as far as claiming that ‘the Malvinas [Falklands] belong to us,’ adding that ‘many watered that land, which is Argentine, with blood.’ Two years later, on another edition of the ceremony, he insisted on the same views, saying that the Argentine ‘fallen’ had ‘gone out to defend their mother, the motherland, to reclaim what belongs to them, to the motherland.’”

As Atkinson implies, it has always been its imperial politics that the Vatican has used its religion to promulgate.

Expect a renewed push from Roman Catholic elites in the EU and Argentina to force Britain to finally yield up to Hispanic control the two prime sea gates of Gibraltar and the Falkland Islands.

This ongoing tension over these two sea gates is but another sign of the rise of the prophesied king of the north, which will now, under the auspices of Pope Francis, seek anew to adjoin the most Catholic continent of all, South America, to the increasing imperialist possessions of the Rome/Berlin axis.