How Germany Ambushed Cyprus

How Germany Ambushed Cyprus


Cyprus’s harsh bailout was clearly the result of a thorough German plan.

In the early hours of Saturday morning, European Union officials decided to help themselves to the money in the bank accounts of the citizens of Cyprus. A tax of up to 10 percent on Cypriots’ savings would fund part of the nation’s bailout. This unprecedented step shocked the world.

What should shock the world even more is how Germany ambushed Cyprus and forced them to surrender to this tough bailout.

Here’s a rough outline of what went on Friday evening and Saturday morning, pieced together from reports by journalists based in Brussels:

Sometime on Friday, Cypriot President Nicos Anastasiades chatted with German Chancellor Angela Merkel on the sideline of an EU summit. The Financial Times’ Peter Spiegel says that according to Cypriot officials, Ms. Merkel reassured Anastasiades that the deal would not be too harsh. He says Mr. Anastasiades agreed to a deal that imposed a much smaller tax on savers. Those with under €100,000 (us$128,870) in the bank would be hit by a tax of 3.5 percent. Those with more than that would be taxed at 7 percent.

This conversation demonstrated that Cyprus wasn’t opposed to taking money out of its people’s bank accounts. The only objection Mr. Anastasiades raised was that he would prefer a higher tax on those with over €100,000 in order to reduce the amount that those with less in the bank had to pay.

Then Germany got tough. Later Friday evening, most EU leaders left, leaving their finance ministers to sort out the details of the bailout. With so much at stake, Mr. Anastasiades stayed behind.

Another report says that Anastasiades wasn’t even present for most of the meeting. Apparently, he wasn’t even on the same floor. The eurozone finance ministers simply worked out what they wanted and presented the Cypriot president with a fait accompli.

That evening, German Finance Minister Wolfgang Schäuble gave Mr. Anastasiades his condition for the bailout: Cyprus would have to take up to €7 billion from the bank accounts of its citizens. The Cypriot president was shocked. Ms. Merkel hadn’t mentioned anything on this scale. “The president said, ‘I can’t do that,’” one member of Cypriot delegation said, according to Spiegel. “You’re trying to destroy us. Even if I agree to it, I can’t pass it [through parliament].” Anastasiades stormed out of the meeting.

This is when the European Central Bank (ecb) stepped in. The ecb’s German board member and head of International and European Relations Jörg Asmussen approached Anastasiades with a simple message: Nice little banking system you’ve got there. It would be a shame if anything were to happen to it.

Asmussen gave the Cypriot president an ultimatum. The ecb is the only thing keeping Cyprus’s banks afloat right now. Cyprus’s central bank is entitled to borrow money at a very low rate from the ecb and then loan the money out to its banks. Asmussen said that if Cyprus did not submit to Germany’s demands, the ecb would cut off the money and the nation’s entire banking system would come crashing down. The government would face a bill of tens of billions of euros to clean up the mess—a bill it simply can’t afford. If it tried to pay it, the government would go bankrupt too.

Here are the mechanics of the threat, according to the Financial Times Michael Steen: The ecb’s board can stop the money if a majority votes to say that a bank is insolvent. The ecb said it would declare Cyprus’s main banks insolvent if the nation did not receive a bailout.

President Anastasiades had to make a humiliating retreat. He gave in, and Germany got its way: Cypriot savers would help fund the bailout.

Germany won. It reportedly had support from Finland, Slovakia and partial support from the Netherlands. But at the end of the day, it was a German operation.

Mr. Schäuble has tried to distance himself from the decision to tax those with less than €100,000. But his part in this is clear. His message to Cyprus was: Take about €6 billion from people’s bank accounts; I’ll leave you to sort out the details.

This was Germany’s push to take control of Cyprus’s financial system, through the bailout, without having to come up with all the cash themselves.

Remember, from the start, the euro was designed to fail in this way. A common currency without a common government is an unstable halfway point on the way to becoming a superstate. Ordinary Europeans did not want to become part of a superstate. So the EU elites set up the euro, knowing that for it to work, the EU must complete the journey. Europeans would be forced against their will into a political union.

It’s easy to sympathize with German taxpayers who are fed up with having to pay the debts of foreign countries. But this is what their leaders designed to happen. The euro was a vehicle to bring power to Germany. The irony is that the German people don’t want it.

Cyprus’s bailout could start getting messy. There is a good chance that the nation’s parliament will reject the bailout proposal. But as you watch the news, remember, the euro was a German set-up, and the Cyprus bailout was another German set-up. Cyprus is a vital island for any European nation that wants to project its power into the Middle East. Watch for Germany to gain control of it.

For more information, see Trumpet editor in chief Gerald Flurry’s recent video “Cyprus in Prophecy.”

Detroit Takes Emergency Measures

Detroit has become the largest city in U.S. history to be placed under the supervision of an emergency manager. Lawyer Kevyn Orr was appointed on Thursday by Michigan Gov. Rick Snyder. Governor Snyder told the media that the state is intervening in Detroit because the city’s finances have reached “a true crisis point.”

Orr is a bankruptcy lawyer who helped Chrysler, one of Detroit’s automakers, restructure its finances after it went bankrupt in 2009. In his new role, he has broad powers to control all city spending.

Detroit was once synonymous with wealth and prosperity. About a century ago, it boasted the fourth-largest population of any city in America. That figure has dropped from the millions to only 700,000—40 percent of whom live in poverty. Automakers and other manufacturers have left the city, along with jobs and citizens. Over the past decade, 25 percent of the city’s population has fled.

But Detroit’s crises have not just been economic. Its families have been obliterated: By some estimates, three out of every four Detroit families are missing a father or a mother. This social wreckage has contributed to an unbelievable state of affairs in the city. Nearly half of all Detroit adults are functionally illiterate. About one in three households have no one who has worked a job in the last 12 months. Gang activity and drug usage is out of control, and Detroit is widely regarded as America’s first major failed city. It is doubtful that its new emergency manager will be able to save it, financially or otherwise.

Detroit is an indication of what is ahead for cities across the country. American families are already disintegrating, and social structures are crumbling. The Bible prophesied that this would happen due to rampant sin. It also forecast that American cities will experience financial collapse, social upheaval, violence, riots and burning.

Detroit’s plight reveals that America has lost its blessings and is being overrun by curses because it has forgotten God. Read Leviticus 26 for a shockingly accurate prediction of America’s fate, and compare it to today’s headlines.

Orthodox Leader Comes to Rome

Orthodox Leader Comes to Rome


For the first time in a millennium, a leader of the Orthodox Church will attend the installment of a pope.

The installation of Pope Francis i on March 19 will serve as one more step toward healing the breach between Catholics and Orthodox Christians. The ecumenical patriarch of Constantinople, Bartholomew i, the spiritual leader of the world’s Orthodox Christians, will attend the service. It will be the first time the spiritual leader of the Eastern Orthodox Church has attended the inauguration mass for a pope in almost 1,000 years.

The last time such a meeting occurred was before 1054—the year that the Great Schism took place. The Great Schism saw the dividing of the Catholic Church into east and west. The western branch was situated in Rome and held the name of the Roman Catholic Church. The Eastern Church had its headquarters in Constantinople. Constantinople is now known as Istanbul, the former capital of Turkey.

The attendance of Bartholomew i reflects the progressive steps toward unification that have been achieved under Pope Francis’s predecessor, Pope Benedict xvi. Pope Benedict visited the Turkish capital in 2006. He explained that his visit was designed to stimulate “mutual understanding and the quest of full unity.” But the meeting of these two religious leaders may not have been possible at all had it not been for the work of Pope Benedict’s predecessor, Pope John Paul ii. He was the first pope to travel to an Eastern Orthodox country since the days of the Great Schism. He began traveling to other Orthodox nations such as Ukraine, and opened more dialogue with the Orthodox community. His actions laid the foundation for Pope Benedict.

During the reign of Pope John Paul ii, the Trumpet stated that, “Although Eastern Orthodoxy and Roman Catholicism still seek to negotiate a middle ground for agreement, this pope is pulling out all stops to lay the groundwork for roping the wayward eastern wing of the church back into its fold.”

It would appear that Pope Francis is uniquely suited to follow in the footsteps of John Paul ii and Benedict. According to the Associated Press,

Francis is familiar with Orthodox traditions from 14 years of heading the Argentine church’s commission on Eastern Rite Christians, which is within the Catholic fold but follows Orthodox religious customs, including some married clergy in lower ranks. …For Orthodox, the new pope’s choice of Francis is also important for its reference to the Italian town of Assisi, where Pope John Paul ii began conferences encouraging interfaith dialogue and closer bonds among Christians.

Yet the two religions, Orthodox and Roman Catholic, are still divided over a number of issues. One of the key issues is the rule and power of the pope. The Orthodox believe that a pope is primus inter pares, or the first among equals. He rules as the head of the church. The Roman Catholics believe in papal supremacy. This is when the pope has complete power over the entire church and unhindered power therein. It is this power that remains a serious point of division.

Representatives of the two religions met on Oct. 13, 2007, in Italy, to draft a document declaring that, historically, the pope had primacy over all Catholic and Orthodox bishops. Since that time, progress has been made, step by step, to bring the two groups together.

The dividing issues run deeper than this one point of contention, yet Bartholomew i is in Rome, attending a ceremony that apparently goes against his beliefs. Bartholomew’s attendance at the inauguration of the man whom Catholics believe rules supreme shows his willingness to work toward reunification.

The Trumpet has long proclaimed the prophesied reunification of the Catholic Church with the Orthodox (Isaiah 47:8). The installment of Pope Francis will highlight another step toward healing the divide between east and west. Watch as the newly elected Pope Francis follows in the path of his predecessors, alive and dead, as he works toward a unified church. Read “Returning to the Fold” to understand how the Catholic Church is working to unite Christians under the pope.

Iran Wants Nuclear War

Is the Korean War Back On?

Is the Korean War Back On?

KNS/AFP/Getty Images

During the last week, North Korea’s behavior veered into unprecedented territories of outlandishness. What’s next?

Analysts are accustomed to bizarre words and actions from North Korea, but its behavior the last week has left the world to wonder what the Hermit Kingdom will do next.

On March 11, Pyongyang declared that it had nullified the 1953 truce that ended the Korean War. “The U.S. has reduced the armistice agreement to a dead paper,” the country’s state-run media said.

The announcement came as South Korea and the U.S. continued through a two-month session of joint military drills, including a new exercise that brought an additional 2,500 American troops to the Korean Peninsula.

The North’s Most Dangerous Leader Yet

After the death of Kim Jong-il in December 2011, his son Kim Jong-un took up the reins of North Korea. Many analysts thought the transition would trigger a reversal in the country’s rogue behavior. The young Kim Jong-un received a Western education, and was an outspoken fan of Michael Jordan and James Bond films. Optimistic Westerners said what little information was available about Jong-un suggested that he might abandon the internal oppression and external belligerency that had marked the reigns of his father and grandfather.

But the young Jong-un is desperate to prove himself worthy to his nation’s hard-line military, and it is now clear that nuclear North Korea under his rule is more aggressive, more unpredictable and more dangerous than ever before.

Lunacy Unchecked

Last month, Pyongyang conducted its third nuclear weapons test, prompting the United Nations to impose new sanctions on it. The North responded to the sanctions by threatening preemptive nuclear attacks on South Korea and the U.S. “[O]ur intercontinental ballistic missiles … are on a standby,” Vice Defense Minister Kang Pyo-yang said. “If we push the button, they will blast off and their barrage will turn Washington, the stronghold of American imperialists and the nest of evil … into a sea of fire.”

But would the North actually attempt any attacks with its relatively primitive weaponry? And could any such attempt be successful?

On Sunday, Congressman Mike Rogers said the threats are not empty bluster: “They certainly have a ballistic missile that can reach U.S. shores. You have a 28-year-old leader who is trying to prove himself to the military, and the military is eager to have a saber-rattling for their own self-interest, and the combination of that is proving to be very, very deadly.”

Recent history has also taught the North that, shy of sanctions, there is no reason not to provoke U.S. allies. Back in 2010, a North Korean submarine fired a torpedo into a South Korean ship, sinking the vessel and killing 46 sailors. Later that year, North Korean forces killed four South Koreans with an artillery barrage. Pyongyang was only slapped on the wrist for those incidents, so its leaders seem to think they can antagonize again without retaliation from the U.S.

Logic suggests they are right.

After Pyongyang said the truce had been nullified, UN spokesperson Martin Nesirky gave a response representative of many western views: “Let me just stress here that the Armistice Agreement is still valid and is still in force, and that the terms of the Armistice Agreement do not allow either side unilaterally to free themselves from it.”

So, North Korea isn’t allowed to break the truce unless the international community says it can break it? Pyongyang’s track record shows that it has little regard for what the international community “allows.” It also shows that the pariah nation actively seeks to antagonize the U.S. and South Korea.

If North Korea does start a war or commit other isolated acts of aggression, and if America does nothing, it may signal to Iran, Russia and other enemies of the West that they too can get away with aggression and provocations.

The China Factor

North Korea owes its existence to China. Without the support of Chinese troops, the North would surely have been defeated during the Korean War. The Chinese oil and food that crosses the border—often illegally—is pretty much all that’s keeping Kim’s regime afloat. As North Korea’s white knight, China has immense influence over Pyongyang.

Beijing signed on to the last round of sanctions, but, in the past, Chinese companies have flagrantly helped the North evade sanctions, and there’s no reason to think that will change. Despite Beijing’s endorsement of the sanctions, China is actually using erratic North Korea as a proxy to intimidate its Asian neighbors and to antagonize the West. With China maintaining its role as Pyongyang’s protector, it is unlikely the U.S. or any other nation will take decisive action against North Korea’s illegal nuclear development and other provocations.

Asia’s rising tensions point to dark times on the horizon, but the Bible makes plain that this is actually leading to the most spectacular event in the history of the universe: the return of Jesus Christ, and the beginning of an age of peace for Asia and for the whole of mankind. To understand more, read Russia and China in Prophecy.

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!