New Global Trend: Dump a Dollar, Buy a Euro

A trend of enormous significance for every reader: Investors the world over are beginning to pull away from the shaky dollar—and to bank instead on a young, up-and-coming currency. This is a sign of a massive economic earthquake you can expect soon!
From the March 2007 Trumpet Print Edition

Do you know what underpins, even drives, the global economy? It’s not the Federal Reserve Bank or any other central bank. It’s not the International Monetary Fund. It’s not a specific country. It’s not gold, oil or any other commodity. It’s not currency traders. It’s not even the almighty greenback.

What drives the economy is a force that cannot be seen—that is untouchable, intangible. It’s a phenomenon that can be shaped and molded; it’s fickle and susceptible to spur-of-the-moment change. In reality, the truth about what drives the global economy at the most fundamental level is alarming, sobering—even frightening.

The answer: confidence!

That’s right; our globe-girdling financial system—this interrelated, seemingly convoluted web of banks, industry, government, trade, stock markets—is underpinned and driven by an unseen force lodged within the unstable minds of men. The global economy is driven by the decisions of millions of individuals, ceos, private investors, stockbrokers, industry leaders, manufacturers, government officials. The economies of the world are shaped and molded by these people. And what is motivating and influencing the decisions made by these individuals?

Perceptions. Feelings. Morals. Emotions. Convictions. Confidence.

Take the American dollar, for example. Its role on the world scene is hard to overestimate: As the currency of choice for global trade and commerce since World War ii, it has greased the global economy for decades. Why? Fundamentally, it’s because the world’s perception of the United States—that it is a superpower with a strong, consistent and stable economy—has caused individuals and nations to invest their confidence (and subsequently their money) in American power and stability.

The American dollar, like all other fiat currencies, has no intrinsic value of its own—it is not underpinned by anything of real, tangible value. Its value lies in the global demand for the dollar, which is motivated by the confidence that global consumers have in the U.S. economy. Thus, if the global perception of America and its economy changes, if individuals begin to lose confidence in America’s financial stability, serious dilemmas arise.

This is precisely what is occurring.

The Trumpet has reported extensively on the progressive crumbling of America’s economic foundation: the unprecedented high budget and trade deficits, the housing market bubble, the massive Social Security and Medicare liabilities, the massive decline in savings and the outrageous personal debt among Americans, the loss of manufacturing, the reliance on foreign powers to finance American spending. Now, alarmed and growing increasingly edgy because of the critical condition of the American economy, the rest of the world is losing confidence in the U.S. as a stable economic system.

As people the world over increasingly perceive America’s dire economic condition, they are searching for a more solid alternative in which to invest their confidence. Recent months have revealed an alternative economic power the world is turning to: Europe.

After years of stagnation, many European economies and the overall European Union economy are now being considered alternatives to America’s. In 2006, the European Union showed signs that it could become the global economic powerhouse it has always sought to be. This trend looks set to continue, and as it does, watch for the merchants of the earth to shift their confidence away from America and begin to invest it in Europe.

Global Confidence Shift

In December 2006, the Wall Street Journal spoke of this growing economic powerhouse. “Europe’s economy is firing on all cylinders after years of feeble growth, helping sustain global expansion as the U.S. economy slows and surprising many economists who doubted the Continent could muster enough demand to break its reliance on exports” (Dec. 6, 2006; emphasis mine throughout). Ignited at first by rising exports, the Continent’s economic resurgence is now spilling over to impact other facets of the European economy, including investment, job creation and consumer spending.

An increasing number of financial gurus and investors now see Europe as an alternative to America. “It’s looking increasingly like Europe hasn’t caught a cold from the U.S. sneezing,” commented economist Neville Hill from Credit Suisse in London.

In November last year, the Organization for Economic Cooperation and Development (oecd) reported, “[T]he U.S. economy is running out of steam, but a European resurgence and the boom in Asia will prevent the world economy from derailing as it did after the stock market crash of 2000 ….” According to the oecd report, the comeback of the European economy in 2006 contributed to the “rebalancing” of global demand and output, “mitigating the impact of a U.S. slowdown” (International Herald Tribune, Nov. 28, 2006). America’s economy is stumbling while Europe’s is quickening its pace. In fact, America’s economic malaise is dramatically enhancing Europe’s reputation as a viable and attractive global financial center.

The euro is a good thermometer of Europe’s success. This young currency’s strong performance, particularly on the international scene, has taken many by surprise, as it has emerged as the primary currency after the American dollar. The last quarter of 2006 was especially momentous, as the value of euro notes in circulation broke the _‚_600 billion mark (us$787 billion), nearly double the value of the national currencies the euro replaced when it was first adopted in 2002. The Financial Times stated, “The U.S. dollar bill’s standing as the world’s favorite form of cash is being usurped by the five-year-old euro” (Dec. 27, 2006). According to calculations performed by the Times, the value of euro notes in circulation in December 2006 exceeded the value of American dollars in circulation.

This is truly remarkable for a currency only five yearsold!

This global shift in confidence is stopping the mouths of critics. When the euro was released five years ago, many critics said it could never share the field with the dollar, pound or yen. On its five-year anniversary in January, the value of the euro was near its all-time high, and it shows no signs of coming down; it rose 14 percent in 2006 alone. As short as it is, this impressive history is causing demand for the euro to grow rapidly.

In a startling announcement in October last year, former U.S. Federal Reserve Chairman Alan Greenspan warned that both private investors and central banks were beginning to dump dollars in favor of the euro. “We’re beginning to see some move from the dollar to the euro, both from the private sector … but also from monetary authorities and central banks,” Greenspan said at a conference sponsored by the Commercial Finance Association on October 26. As the value of the dollar slides and as banks and governments grow concerned about America’s long-term economic stability, more and more nations—including Russia, China, Japan, Sweden, the United Arab Emirates, Qatar, Syria and South Korea—have begun to talk about diversifying their holdings away from the dollar, which in many cases has meant purchasing more euros.

“Indeed, there is the very real possibility that several countries could switch a proportion of their foreign currency reserves out of dollars over time to the euro,” said Howard Archer, chief European economist for Global Insight in London (Associated Press, Dec. 30, 2006). Even in some non-EU states, the euro is being used alongside the local currency in trade and commerce. Associated Press explained recently that “at least half a dozen other European mini-states and territories are using the currency as legal tender without approval from the European Central Bank.

“The euro was introduced five years ago to provide economic cohesion among EU countries. But euros also are in circulation in dozens of countries and overseas territories ranging from the North Atlantic to the Pacific. In Europe, Montenegro, Vatican City and San Marino and the principalities of Andorra and Monaco have used the euro since its inception. And in the province of Kosovo … the euro circulates alongside the Serbian dinar” (January 1).

The euro’s success, as AP noted, doesn’t bode well for America: “[T]he rise of the euro has made inroads into the dollar’s international dominance.” For a young currency that the European Central Bank has not excessively promoted, the growing use of the euro in international markets and in foreign exchange is testimony to the mounting confidence of banks, investors and governments in the European economy. Global demand for the euro has been organic; it started at the grassroots level and is being driven by growing faith in the Continent.

The rise of the euro is proving a boon for America’s oil-rich enemies too. The strengthening euro has equipped Iran with the option of demanding its clients pay for oil in euros rather than American dollars. Iran already receives payment for more than half of its oil in euros. Now Venezuela, another top oil producer, is strongly considering selling its oil in euros.

Russia, another major oil producer, is also switching to the euro. On April 20 last year, Russian Finance Minister Alexel Kudrin said, “Russia cannot consider the U.S. dollar as a reliable reserve currency because of its instability. This currency has devalued by 40 percent against the euro in recent years. The international community can hardly be satisfied with this instability.” Over the next four weeks, the dollar plunged 6.6 percent. In June, Russia announced it had reduced its U.S. dollar foreign exchange reserves from 70 percent to 50 percent, while increasing its euros from 25 percent to 40 percent. The same month, Russia also socked the dollar by starting to trade futures contracts for gold and crude oil denominated in Russian rubles as opposed to dollars (in which most of the world’s commodities are traded) in the Russian Trading System.

By reducing their reliance on the dollar and investing in the euro, America’s enemies have a new weapon to use against the U.S.

A weakening dollar and strengthening euro is even making trade and commerce more difficult for America’s allies. During the last half of 2006, nations that accepted payments for goods and services (such as oil) in dollars saw the value of their dollars decrease dramatically against the euro and other currencies.

The significance of the world diversifying away from the dollar by buying more euros cannot be overstated. It is one of the most powerful proofs that global confidence in the American economy is eroding and that global confidence in Europe is taking its place. In a system where currencies are underpinned by perception and confidence, this is a trend with gargantuan ramifications.

U.S. Congressman Ron Paul from Texas commented on the situation on January 1: “There are now more euros in circulation worldwide than dollars. This alone is not necessarily troubling, as the dollar remains the world’s most important reserve currency. About 65 percent of foreign central bank exchange reserves are still held in dollars, versus only about 25 percent in euros. … Still, the rise of the euro internationally is another sign that the U.S. dollar is not what it used to be. There is increasing pressure on nations to buy and sell oil in euros, and anecdotal evidence suggests that drug dealers and money launderers now prefer euros to dollars. Historically, the underground cash economy has always sought the most stable and valuable paper currency to conduct business. More importantly, our greatest benefactors for the last 20 years—Asian central banks—have lost their appetite for holding U.S. dollars.

With 65 percent of central bank reserves comprised of American dollars, the dollar remains, at this point, the currency of choice. But for the young, relatively unproven euro to comprise 25 percent of international currency reserves is impressive.

Many financial analysts anticipate that the euro will grow even stronger this year—particularly against the dollar and the yen. As this trend persists, consider the psychological changes it portends. The shift in confidence from the American currency to the European suggests that some dramatic changes are occurring on the world scene. Though it may not occur next week or next month, if this trend persists, America’s easy days of plentiful money and low inflation will be over; interest rates will rise; consumer confidence will plummet, and so will the economy.

2006 was the year the world accelerated its diversification away from the dollar. Watch what happens in 2007.

A New Superpower

As we see the world remove its confidence from the American economy and invest it in the European economy, we should be concerned. Such a radical shift will upend the American economy, which will drive other nations to invest in Europe all the more. The U.S. is facing an economic calamity far worse than the stock market crash of 1929; the scale of this financial crisis will be unprecedented.

Of course, in a globally interconnected economic system, a collapse of the dollar will have massive ramifications around the world—including in Europe. The spillover effects of an American economic crisis may well trigger the fulfillment of specific Bible prophecies related to Europe: namely, its unification under one strong leader—a scenario Herbert W. Armstrong spoke of for decades. History shows that crisis can force nations to band together and to look to a political savior for a way forward.

But in the end, the European economy will be in a position to take advantage of America’s downfall and fill the vacuum it will create—and is already creating. The economic ruin of America portends the formation of a deadly economic and political force in Europe. Ultimately, the Continent will amass the power and influence to become the greatest economic superpower of the age. Like America after World War ii, Europe will become the center of global activity, growing wealthier and more influential, garnering more global power. And, like America these past 60 years, when Europe comes to underpin the global financial system, it will become the greatest, most dominant power on Earth.

This is a sobering thought, but it is also more exciting than you can possibly imagine. Why?

This is thrilling because the Bible speaks of such an event occurring right before the Second Coming of Jesus Christ!

God revealed to the Apostle John almost 2,000 years ago that a European superpower would be at the helm of global trade and commerce prior to the return of Jesus Christ. Read Revelation 17 and 18.

These chapters warn of a terrible political superpower that is ridden by a sinister religious force. To learn precisely who this European superpower is, its history and how it forms in modern times, request our free booklet Germany and the Holy Roman Empire. This church-state duo establishes dominion and economic control over the entire globe. Revelation 18 discusses the eventual downfall of this terrible beast and all those associated with it.

“For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies” (verse 3). From this verse we can tell that at the time of its destruction this great beast will be the center of global trade—the economic power around which the merchants of the earth orbit. Read verses 9-18 of the same chapter.

The whole world will revolve around this political and economic superpower. When we see the world investing its confidence in Europe today, we are witnessing the seeds of this trend being sown. Over the coming months and years, global confidence will continue to shift away from America and toward Europe. The world will begin to orbit around a European axis.

In the context of Bible prophecy and world history, the thought of a European superpower possessing absolute power is frightening: Bible prophecy warns that this European empire will exert its power and influence in a deadly manner.

The seriousness of this future should move us to positive action in our lives _—to learn more about these end-time prophecies, to investigate them and learn how to escape them. The God of this universe is not a pessimist. His Bible is not filled with terrifying, gloom-and-doom prophecies that are inescapable. When you read about these prophecies, you should be alarmed—but if you are moved to action and stirred to seek out God and His protection, then there is nothing more exciting on the face of this planet!

China Adds Port to Latin American Investments

China Adds Port to Latin American Investments

Marco Ugarte/AFP/Getty Images

China has added one more acquisition to its sizeable collection of critical ports in Latin America.

After several months of delay, a Chinese company took over the management of Ecuador’s Manta port, the second-largest in the country, in February. The contract went to Chinese front company Hutchinson Whampoa, which agreed to spend about us$460 million to upgrade the port.

“The ultimate impact,” writes BusinessWeek.com, “is that a Hong Kong conglomerate will have control of one of Ecuador’s economic lynchpins” (February 8). Through Hutchinson, China already controls a number of strategic ports in Latin America including the ports at each end of the Panama Canal, the Buenos Aires Container Terminal in Argentina, the international terminal at one of the most important ports on Mexico’s Pacific coast, a large port on Mexico’s Atlantic coast, and two ports in the Bahamas.

So why is it that Latin American countries are allowing the Chinese to make such inroads? The answer is money. China is investing massive amounts of money in Latin America—particularly in the development of natural resources, including oil. In 2003, Latin America accounted for almost half of China’s overseas investments. Just how much money is at stake was revealed in the fact that Ecuador actually changed national laws to allow China to put in its bid for the 30-year contract for control of Manta’s port.

Clearly, it is a mutually beneficial arrangement: In return for its investments, China is gaining control of ports and much-needed resources such as iron ore from Brazil and oil from Venezuela. Beijing’s strategy is to secure sources for critical resources and the ability to transport those resources back to China. Toward this end, China has recently opened a shipping route across the Pacific linking several ports in China with ports in Mexico, Colombia, Ecuador, Peru and Chile. In addition, Beijing is seeking to control the ships themselves; China is currently the world’s fourth-largest shipbuilder, with the aim to be world number one within the next three years.

China is not without competition in Latin America, however. Europe has been busy over recent years making inroads, particularly economically. What is building is a massive contest for resources—a battle that Latin American countries will find themselves caught in the middle of. Read “The Battleground” for details on how this future struggle for resources, already beginning, will play out.

Prodi Bows to Papal Pressure

Prodi Bows to Papal Pressure

Reuters

Last week’s events in Italy should be a real lesson to those who doubt the power of the papacy to intervene in and significantly influence world politics.

On February 19, Italy’s Prime Minister Romano Prodi, President of Italy Giorgio Napolitano, and a number of senior Italian government officials, met at the Vatican for a closed-door session with some of the pope’s senior advisers. The topic under discussion was a burning issue on which Pope Benedict xvi had publicly declared his stance at extreme odds with Prodi’s government: the matter of state recognition of unwed and homosexual couples.

In numerous public declarations, both the pope and senior Vatican sources had declared vehement opposition to the Prodi government’s attempt to ram legislation through the Italian parliament that would allow for the official recognition by the government of such civil unions. If passed, this legislation would allow for those involved in such unions to receive certain government benefits currently available only to those engaged in the traditional institution of marriage between man and woman as endorsed by the church.

Upon emerging from the in-camera session at the Vatican last Monday, Prime Minister Prodi was closed-mouthed. His sole words to the press were that it went “well.”

Two days later, Prodi resigned his post.

We have grown used to the volatility of Italian politics, which has seen more prime ministers come and go than there are years since the end of World War ii. However, both the timing of and the circumstances surrounding Prod’s surprise resignation bear a closer look.

As reported to the public, Prodi resigned as a result of his coalition government failing to raise a sufficient majority to pass a vote on Italy’s involvement in the nato-led force involved in Afghanistan. Yet the publicized reason for his resignation simply does not stand up to closer scrutiny. Consider the following sequence of events.

Prodi’s and the Italian president’s closed-door meeting at the Vatican occurred on Monday. Prodi resigned on Wednesday. By Thursday the press was predicting Prodi probably had the numbers to return to power once the president called for an election. Other sources alluded to the possibility of the previous prime minister, opposition leader Silvio Berlusconi, having a stab again at regaining the post.

That night, a leading EU news source predicted that Prodi was set to regain office. Friday morning that story was pulled. The press then went silent on the Prodi issue.

We combed the news wires during the day and all remained silent on Prodi’s future … until Friday evening, European time.

About 10.30 p.m. cet, Catholic World News (cwn) released a story that seemed to tell it all. It was tucked away in the midst of the normal sheaf of news that cwn releases regularly in doing its usually admirable job of keeping its subscribers aware of the latest happenings at the Vatican.

The CWNews.com news release ran under the headline, “New Italian government would not require allies to support civil-union bill.” It reported, “Romano Prodi—struggling to forge a new ruling coalition in the Italian parliament after a key foreign-policy loss prompted his resignation as prime minister—has drafted an agreement that will not require his coalition allies to support civil unions. … The 12-point agreement seemed likely to draw enough support to return Prodi to the parliamentary leadership post. Foreign Minister Massimo D’Alema, a Prodi ally, told reporters that the coalition ‘can continue on this basis’” (February 23).

Now that we find intriguing!

The foreign minister made no reference to the Afghanistan issue, which is what was originally touted as the reason for Prodi’s resignation! The main issue highlighted in this statement, alluding to the prospect of the Prodi coalition being able to come together to reform a government, was the removal of the requirement to push the civil-union bill through parliament in opposition to the pope’s powerful stand against it!

On Monday, the most reliable news services were reporting the prospect of Prodi retaining the prime ministership, based on acceptance by his coalition partners of the 12-point program, the highlight of which was not the Afghanistan issue, but Prodi’s changed stance on civil-unions! “To lure support from moderates, Prodi watered down a 208-page program crafted during his April election campaign. The revised version is a 12-point list that drops legislation that authorizes same-sex unions, a measure opposed by some Catholics in the coalition” (Bloomberg.com, February 26).

So who rules now in Italy?

It would seem that this victory for the papacy has significantly strengthened not only the Roman Catholic vote in the Italian parliament, but especially Pope Benedict’s own political authority and hence that of the Vatican State. It is a notable victory for the pope in his aggressive endeavors to claim the moral high ground for the Vatican in its quest to turn the whole of Europe away from the influence of secularism, back to that which he calls “Europe’s traditional roots”: its Roman Catholic roots!

As we have constantly said for the past decade, watch Joseph Ratzinger, this present pope. Watch for the increasing political clout being exerted by Pope Benedict xvi, most recently demonstrated in Italy, to soon extend across the whole European Union. Indeed, watch for Benedict’s political and religious influence to grow to such an extent as to eventually be felt across the whole globe.

EU to Trump National Laws

EU to Trump National Laws

A new proposal in the European Commission would reduce red tape and wasted money, but it comes at a heavy price to European Union member states: further loss of national sovereignty.

The Commission has introduced a proposal that would force European Union countries to end their national requirements on goods imported from other EU nations. The Commission’s figures indicate that the current rules cost the EU about €150 billion a year in lost trade. While the proposal would cut down on burdensome regulations and make it easier for EU companies to sell their products to other member states, it is another move toward the creation of a federal superstate at the price of national sovereignty.

Current EU rules stipulate that a company can sell a product in any of the 27 member nations as long as it respects the regulations of that country. A nation can restrict an import from a fellow EU member state if it fails to meet its national regulations. The new legislation, however, introduced on February 14, requires that national authorities justify why a product sold in another EU country cannot be sold in theirs. The document states that if a country refuses market access, it “has to set out in detail the precise reasons for its refusal.”

The project also calls for member nations to create one single agency that would check whether goods are in compliance to EU rules, rather than the 1,800 agencies that currently do so.

The creeping centralization of power in the EU will have a profound effect on member nations. Trade and business are one of the chief cornerstones of any nation or empire. Whatever institution governs the trade of a nation or group of nations, whether monarchy, dictator or parliament, essentially rules that nation. Hence, these proposals are one more step in the creation of a European empire.

What Europe Is Really Celebrating

What Europe Is Really Celebrating

Reuters

The golden anniversary of the Treaty of Rome is next month. Can Europe finish the unification project it started 50 years ago?

The celebrations will be grand in Berlin on Sunday, March 25. There, the chancellor of Germany, Angela Merkel, will host representatives of member nations and the pope himself for a grand shindig in celebration of “50 years of unity” on the anniversary of the Treaty of Rome. Yet, the European Union is anything but unified. Tensions are building that will lead to a separation of the strong from the weak, with the inevitable dominance of the latter by the former.

It is worth revisiting the history of this treaty, and the many treaties that followed it in turning what appeared to be an entirely economic enterprise uniting six European countries into the grand political experiment that is the European Union today. The EU has been 50 years in the making, but it has only been in the last decade and a half that the truly political nature of the European beast has become apparent.

Less than six years after the European Economic Community signed the Maastricht Treaty in 1992, the Treaty of Amsterdam amended it and consolidated the EU and EC treaties. On Feb. 26, 2001, EU leaders signed the Treaty of Nice, which paved the way for further enlargement and created a single document upon which a European constitution could be developed. Finally, on Oct. 29, 2004, the heads of state of each EU member nation met again in Rome. This time, they met to sign a controversial document: the European Constitution.

What had started as a mere agreement on the integration of markets was suddenly transforming into a singular, great political entity, a veritable United States of Europe! This was becoming an empire of nations, with a single constitution that seemingly removed the sovereign rights of its individual member states, subsuming them into a federal body comprised of regions that ignored old national boundaries. And, as was patently obvious, it was once again Germany calling the tune!

On paper, to some observers, it seemed as though the old phoenix of the Roman Empire was arising from ashes. Certainly the extent of territory it embraced was not only like that of the old Holy Roman Empire, but remarkably like the map of Europe redrawn by Hitler just 60 years ago! Voices of concern began to be raised in some quarters.

Certainly Europe now stood upon its western and its eastern legs. But it was unwieldy. The various parts of this huge, greatly enlarged beast were not operating in complete harmony. It stumbled in its first few tentative steps as it sought to get used to being underpinned by two legs—the secular Western leg and its Eastern Catholic counterpart—that did not always want to go in the same direction. This beast appeared to be top heavy, weighed down with extraneous regulation. It was bloated with excessive bureaucracy and in great need of trimming its fat. What’s more, fraud was admittedly rampant within that very bureaucracy.

Soon, rumbles were heard from Berlin, the refurbished capital of an earlier Reich, now once again revived as Germany’s national capital. Those noises supported simplifying decision making and even streamlining EU membership. Lesser economies could be subsumed by the larger in a redrawing of the map of Europe to eliminate national borders and combine once-sovereign nations into broader regions within a great European fatherland.

This brings us to the current German presidency of the EU, at a most vital turning point in EU history.

It remains to be seen if Germany, now in the midst of its six-month presidency of the EU under Merkel’s leadership, can give new force and shape to this cumbersome beast, which comprises 27 separate nations trying to work together for another “50 years of unity.” The deck is stacked against her. Her task of drawing these disparate nations together to agree to ratifying the European Constitution seems an impossible one. If she fails, her rising political star may plummet, fracturing her unsteady government coalition. In the meantime, her main coalition partner, Bavarian Prime Minister Edmund Stoiber, leader of the Christian Socialists, is due to step down from political office in September. This could set the scene in Germany, if not Europe as a whole, for a tumultuous political finish to the year.

Though Germany’s economy is currently being touted as recovering well and is posting positive growth statistics, Chancellor Merkel has yet to muster her coalition’s and, more importantly, the German public’s support to dealing with the nation’s deep systemic economic problems. While she may well ride the train of popularity when dealing with foreign affairs, such as with her current diplomacy with the United States, Russia and the EU, domestic problems will ultimately overwhelm her government. That day will come, and with it social upheaval in Germany.

Meanwhile, having basked in the global view under the spotlight of both the Bavarian Pope Benedict’s visit to Munich and the hosting of the World Cup soccer tournament last year, again Germany takes center stage, this time as EU member nations celebrate their “50 years of unity” in March.

As Merkel and all Berlin bask in that limelight on March 25, watch for when the hoopla ceases and reality dawns. Already, significant fractures appear beneath this facade of European unity. It is indeed a union of iron and clay. There is coming a division within this union, a fracturing into 10 separate regions, each with its own titular head, ultimately paying obeisance to Berlin and mother Rome. For, in fact, what you see forming in Europe today was foretold long ago in Bible prophecy. It is none other that the final resurrection of the old Holy Roman Empire, canonized in your Bible in Daniel 2:39-44 and Revelation 17:11-13.

An understanding of these prophecies will lead to the conclusion that Germany has a powerful and, once again, antagonistic geopolitical role to play within the emerging global order in the wake of America’s waning power. This is a fact that most foreign-policy gurus seem unable to grasp at this point.

The recovery of the German economy is fragile. It remains export driven. The lower the dollar dives and the higher the euro hikes, the tougher it will be for German exports, the lifeblood of Germany’s economy, to compete. The resulting economic pressure, combined with the resistance of the German populace to any government initiatives to dismantle the welfare state that holds Germany back from real economic health, will combine to put real stress on Chancellor Merkel’s government as the year progresses.

Watch for the future fracturing of this coalition government. Watch for EU “unity” to falter. Watch for both phenomena to coalesce into a grand economic and social crisis in both Germany and greater Europe that will spawn the return of the demagogue and a revival of past European history!

The foundation is already laid.

The time will come when Europe will follow the rising fashion in Russia and Latin America, and the cry will go up for a populist leader. Such a man will come to office, not necessarily via the electoral process within the European Union, but rather by diplomacy—or flatteries (Daniel 11:21). He will lead the countries of Europe out of their divisions into great, though very temporary, imperial strength.

Yes, that old Holy Roman Empire will rise again. That union which was spawned in the city of seven hills back on March 25, 1957, with the signing of the Treaty of Rome will yet return to its Romish spiritual roots! Yet, even as foreshadowed by the siting of the 50th-anniversary celebrations of that event in Berlin—not Rome—the real political, economic and military clout of this rising empire will emanate yet once more from Europe’s heartland, Germany! And as we have pointed out to our readers, its political leader may yet again hail from Bavaria!

Watch Rome. Watch Berlin. And watch the chief political personality in Bavaria. It’s more than possible that Rome, Berlin and Bavaria will again be drawn together for one final great European power play. But this empire will then be overtaken and subsumed by the much-anticipated intervention from the Highest of Powers in the grand-smash climax at the close of this age of global disorder and the ushering in of an age of peace beyond anything man could imagine!

Viewed through this lens, the celebrations in Berlin on March 25 are but a harbinger of the greatest news man could ever hear! “Forasmuch as thou sawest that the stone was cut out of the mountain without hands, and that it brake in pieces the iron, the brass, the clay, the silver, and the gold; the great God hath made known to the king what shall come to pass hereafter: and the dream is certain, and the interpretation thereof sure” (Daniel 2:45).

The Prophet Daniel foretold this wondrous future event—an event that will put an end, once and for all, to the tormenting, blood-spilling, perpetually resurrecting old Holy Roman Empire. It’s an event that will soon have all the world’s attention centered on another city, a city which, despite is ancient and continual war-torn history, will yet become the most glorious city of all, Jerusalem!

That is the real event for which we should all be now watching, with the greatest of anticipation!

European MEP: European Constitution by Stealth

European MEP: European Constitution by Stealth

web

A supranational European Union constitution is being built by stealth, writes Daniel Hannan, a minister of the European Parliament (mep).

May 29, 2005, was the day French voters deflated European integrationist dreams by voting “non” on the European Constitution, stopping it stone cold. However, the Europe that died that day was not the integrationist version, but rather, the democratic version.

Ever since the French, and then the Dutch, voted no, Brussels lawyers have been working to find a way to breathe new life into the constitution. With 18 out of 27 countries having already ratified the existing draft constitution, the last thing the Eurocrats wanted was to have to start the process all over again, and possibly face voters in some of those countries demanding referendums. At the same time, if the document remained unchanged, the governments of France and the Netherlands could not very well present the text to their citizens for a second vote.

To solve the dilemma, the integrationists have come up with a clever new plan—that, if successful, will not require any voter participation.

“We have the answer,” says Alain Lamassoure, a former Europe minister. “We shall go through the text with a rubber instead of a pencil. Many of the clauses are unnecessary, because they reiterate what is already in the treaties. But these are generally the articles that people object to. So, if we take out what we don’t need, we can avoid any new referendums.”

Indeed, three quarters of the European Constitution is a restatement of existing treaties; many of its clauses merely give legality to what is already being implemented within the EU. For example, the constitution treaty includes the clause, “This constitution shall have primacy over the laws of the member states.” However, in one form or another, this has been a functioning law in the EU since 1964.

As Brussels knows, it is many of those very clauses that caused the collapse of the treaty in the first place. “Our mistake was to spell everything out,” one senior German official brazenly admitted. In other words, pro-constitution officials regretted ever having given the people of Europe the opportunity to change those things they objected to.

The plan will be put to leaders of the 27 member states for approval next month at a meeting in Berlin. Stripped of the text that serves no function, the new version will be less than half the constitution’s present size. It will include the creation of an EU president and foreign minister, and changes in national voting weights.

The beauty of this plan, for Brussels, is that European national governments—including the French and Dutch—will be able to argue that this “mini-treaty” is too inconsequential to warrant referendums. And those that have already ratified the present draft will not have to begin the implementation process again, because there is nothing new in it. “The outcome,” write Hannan, “will be identical to approving the full constitution in its present form” (Telegraph.co.uk, February 20).

Presto! European integrationists will have their dream back on track.

One try at democracy was enough for the European Union, and now it is back to the old tried and tested, successful method of building a union of member states by back-door stealth and deception.