Germany Reverts to 1930s Economics

Germany Reverts to 1930s Economics

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Germany’s current economic policy is strengthening the nation as the economic heart of Europe even as it simultaneously causes discontent among the people. This has happened before.

The German people are not happy with their country’s financial system. Almost three quarters of them think it is unfair, according to a survey released on June 16 by the Bertelsmann Foundation. Of course, it is perfectly natural for people in almost every nation to complain about the economy, but the Germans may actually have grounds for genuine grievance considering that Germany is the largest goods exporting nation in the world—ahead of even China—yet a portion of its people are plagued by low wages and high unemployment.

In 2007, Germany produced its greatest trade surplus ever as its exports exceeded its imports by an astounding $288.5 billion. At the same time, the unemployment rate now stands at 7.9 percent. German export surpluses reputedly pay for deficits in Ireland, Italy, Spain and even France, while the German people scrimp and save to make ends meet. Between 2 and 7 million full-time employees in Germany could be classified as “working poor.”

This situation is indeed paradoxical. How can a nation that is functioning as the economic engine of the European Union fail to provide jobs and good wages for its own people? Well, it is all a matter of priorities—and it is not the first time such a paradox has existed in Germany.

Consider the following quote regarding the German economy in the 1930s from author Sara Moore’s “Germany—An Emerging Superpower?” published in the European Journal (May 2008):

When in 1930 Heinrich Brüning became chancellor of Germany he told his friends in the unions that his chief aim was to liberate Germany from paying war reparations and foreign debt. He felt that if he diverted all Germany’s efforts into exports it would weaken the ability of America and the Allies to force Germany to pay her ious if she chose not to. The German unions therefore agreed to Brüning reducing wages, raising taxes and diverting all industrial activity into exports so as to bring pressure on the Western powers, not realizing to what extent this would mean misery, unemployment and a diminution of power for the workers. Brüning’s initiative was successful. Millions of people abroad were fooled into believing that Germany herself was really poor, not just her hapless citizens, even though Germany was the greatest exporter in the world, with a mountain of cash in the bank.

Whereas Germany’s economic policy produced hyper-inflation during the 1920s, it produced deflation in the 1930s. Brüning put everything Germany had into producing exports for the Fatherland, even if that meant taking more money from the people. By doing this, he strengthened Germany’s power and international position to the point where Germany was more powerful just 15 years after World War i than it was even at the beginning of the war. Yet this economic system had another effect. The people became bitter and elected Adolf Hitler to lead their nation.

Now consider the economic reforms Germany has implemented since it adopted the euro as its currency in 1999. Moore’s article continues:

Foreigners’ faith in the euro rests primarily with Germany. Other Euroland countries’ economies are not so strong. Indeed, Germany’s European neighbors have suddenly discovered that Germany effectively imposed a “wage freeze” on its workers after the adoption of the euro in 1999, clawing back 40 percent in labor competitiveness against Italy, 30 percent against Spain and 20 percent against France by 2007. …Katinka Barysch [of the Center for European Reform] declared that what distinguished Germany—“from most of its peers”—was the weakness of domestic demand. Indeed, after the arrival of the euro, German workers suffered years of stagnant or declining wages. Then the German government, in an admittedly pale comparison with 1930, decided to cut corporation tax and give other advantages to industry, and to raise vat [Value Added Tax], bringing pain to the workers, in order to pay for it.

These wage freezes and tax reforms are helping keep Germany’s money in the hands of corporate industrialists instead of in the hands of private citizens. This is one of the ways Germany is able to afford to develop countries in Eastern Europe and bail its Western European neighbors out of deficit problems even as its own people are left to complain about bad wages.

These same reforms are also strengthening Germany’s position within the European Union at the expense of the smaller members. Moore continues:

We live in changing times with the rise of India, China, Japan and the Far East and the relative decline of the world’s greatest superpower, America. Germany has been a pillar of the international community since the war. With the help of the European Union and its most powerful provider of funds, Germany, the countries of the former Soviet Union in Eastern Europe are becoming richer, democratic and self-confident. Germany has a right to have an important say in the ecb [European Central Bank] to ensure that her money is well spent. Yet we live in a global economy. Power must be used with care. We must not underestimate Germany’s strength because of her citizens’ poverty or unemployment. Her deflation, and push for the ecb to adopt a high interest rate policy, besides affecting Britain and America, will slow growth for the whole of the European Union and create problems for the weakest states, whilst strengthening her relative position. How Germany will use this position is of fundamental interest and the parallels up to the present time with the 1930s experience raises cause for concern.

A shocking document was released by the American government back in 1996. It revealed that on Aug. 10, 1944, a secret meeting of Nazi industrialists took place in the Hotel Rotes Haus in Strasbourg, France. At this meeting, representatives from many of Germany’s major industrial corporations were instructed to increase the strength of post-World War ii Germany through their exports so that a strong German empire could be created after the defeat. Whether the politicians and industrialists of modern Germany know much about this history or not, this is exactly what they have done.

As in the 1930s, Germany has put all its economic might into producing exports that will enhance its power and cement it as the economic engine that drives Europe. Yet, it must be remembered that it was the sidelining of the people in the 1930s that led to the economic frustrations that resulted in the election of Adolf Hitler. It is completely possible that such a scenario could play out again.

Even Sara Moore writes that “One worries that if things do not go [Germany’s] way, she could revert to her old idea of a Germanic empire.” Germany’s current economic policy is strengthening it as the heart of Europe and could be the catalyst that leads to the ascension of a second Adolf Hitler—a new Charlemagne.

For information on the prophesied future of Germany, read Germany and the Holy Roman Empire.

Editor’s Note: An error in this analysis as originally published has been corrected.

Home Repossession Rates Double

Home Repossession Rates Double

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American banks repossessed twice the number of homes in May as they did a year ago as falling house prices trapped borrowers in mortgages they could not afford. A June 13 RealtyTrac Inc. report said lenders took possession of over 73,000 houses during May alone.

The Washington-based Mortgage Bankers Association reports that 2.47 percent of all U.S. homes were in some stage of foreclosure during the first quarter of this year. That percentage rate is 252 percent higher than the 0.98 percent average for the past 30 years. It is estimated that foreclosures may account for nearly a third of national home sales this year.

These figures are causing some to worry that a negative feedback loop will develop in the United States housing market. In such a loop, increasing repossession rates would drive housing prices down. Then declining housing prices would trap consumers in mortgages they cannot afford. Finally, this would serve to increase repossession rates even further and the cycle would continue. The ultimate consequence would be that the housing market would become an increasingly heavy anchor on the economy in general.

The root cause of this escalating problem is consumers purchasing homes that are beyond their means to afford. For more, read “Storm-Proof Your Financial House” by Robert Morley.

Years of Economic Forecasting Coming to Pass

Years of Economic Forecasting Coming to Pass

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Do you remember the following words? They are coming true before your eyes today!

“Can you realize how fast events are happening in the world?

“You have seen that the U.S. dollar—long thought of as the stablest currency in the world—is in immediate jeopardy of being devalued!

“That means that it will take you more dollars to buy the same amount of imported goods. If the dollar is devalued, inflation will almost surely result—and eventual economic collapse for the United States.

“Those of you who truly believe the prophecies of your Bible know such economic collapse is prophesied to happen!

“And now, in almost daily news, comes the frightening development of a rush on gold …. What does this all mean? It means that at any time now, you could suddenly awake to find you have only about half the ‘money’ you thought you possessed—or that your purchasing power has been drastically reduced, overnight!

Should the dollar collapse, it could well mean a repetition of the disastrous depression that strangled the economic world in 1929!

“The final crisis is fast descending upon us.”

Those words sound like they could have been printed this week. As you read this, the dollar is dropping to all-time lows. America is, in fact, experiencing the early stages of a dollar collapse.

But Herbert W. Armstrong, editor in chief of the globally circulated Plain Truth newsmagazine up until his death in 1986, wrote those words almost 30 years ago.

Following Mr. Armstrong’s lead, and interpreting current events in light of Bible prophecy, the Trumpet has continued, from its earliest editions, to warn that the age of the dollar is almost over—and warn readers that this is a precursor to the biblically prophesied downfall of the United States.

Now, that prophecy is coming to pass. America’s economy truly is on a downward slope, sliding toward a cliff.

Billowing Debt

The most visible sign that America is heading toward collapse is probably the decline of the dollar. But why is the dollar falling? One big reason is billowing debt.

American society is critically reliant upon borrowed money to maintain its standard of living. Federal, state and municipal governments borrow to finance budget deficits and spending; consumers increasingly borrow for daily needs as well as wants; and now, recent headlines reveal that America’s biggest banks, such as Citi Group, Washington Mutual and Charles Schwab, are borrowing billions from the Federal Reserve Bank to stay afloat. The whole economy is propped up by ever greater amounts of debt.

Total U.S. debt now stands at approximately $53 trillion. If future liabilities such as Social Security, Medicare and government pensions are included, America’s total debt would double to over $100 trillion.

Warning signs of too much debt have been evident for many years, although it is only recently, with the falling dollar, that many other news sources are emphasizing it. The Trumpet has highlighted this unsustainable trend for more than a decade, but even before us, Herbert W. Armstrong warned of the same. In a letter dated Oct. 25, 1985, Mr. Armstrong wrote that “the U.S. and the entire world face a grave economic future from the burden of mounting debts.”

This is what the Trumpet said in 1997 concerning the danger that America’s debt, especially foreign debt, posed to the economy (“America’s Economy—Hanging From a Thread,” August 1997):

The inherent dangers for a country operating in this way should be obvious to any clear-thinking person. Countries, just like individuals, can become addicted to credit! In order to maintain a high standard of living, America has become increasingly dependent upon foreign credit to pay its bills, piling debt upon debt, until it has mortgaged itself to the hilt!

America’s foreign debt load has more than doubled since that was written. The article went on to explain why this situation is so hazardous:

The primary danger is that addiction to foreign credit finally gives foreigners complete control over the debtor nation! A variation of the “Golden Rule” says, “He who has the gold, rules.” Or as Almighty God, the master economist of the universe, tells us in Proverbs 22:7, “The borrower is servant to the lender.”

In that 1997 article, author Tim Thompson compared America’s debt-dependent society to the whitewashed tomb of Matthew 23:27:

It is beautiful on the outside—it has the appearance of wealth and wellbeing—but inside it is “full of dead men’s bones, and all uncleanness”—it is a financial nightmare built by hypocrites and filled with all rottenness!

As Mr. Thompson pointed out, borrowed money can give the appearance of prosperity—but appearances don’t mean much. Just because you drive a Mercedes or wear a Rolex doesn’t mean you are rich—it may mean that all your credit cards are maxed out and you have a second mortgage.

America’s wealth illusion is becoming transparent. The debt has grown so massive that the nation’s international trade partners are beginning to question America’s creditworthiness, a trend the Trumpet foresaw in 1995. At that time, we wrote that confidence in America could be seen in the value that foreign nations place on the dollar. “Confidence in America is falling,” we warned (“Decline of a Dollar, Decline of a Nation,” May 1995).

Foreign Capital Flight

But what happens if America loses the confidence of the world—if it becomes regarded as a credit risk with the potential to renege on its debts? A November 1998 Trumpet article answered the question. “America has long been the safest place on Earth for foreign investors’ money. But what happens if they take their money elsewhere?” (“Financial Destruction of America”). The article continued:

On the international level, strength of character is equated with strength of economy, and both are extremely lacking today in America! Regardless of the “full faith and credit” of the U.S. government, global investors are becoming increasingly aware that an investment in America is no longer an investment in strength. There is only an illusion of strength being propped up by foreign capital.Once a loss of confidence occurs, the reaction is similar to the effect of adultery in many marriages today—victims of such a breach of trust start looking for a way out, and many times they take every financial advantage they can on their way out the door. Through such devices as credibility-destroying scandals, a mountainous and expanding national debt, a hugely overvalued stock market, record-low-yielding bonds and other “confidence shakers,” America is becoming increasingly vulnerable to the devastating effects of foreign capital flight. …Foreign capital flight is on the horizon for America, yet Americans, in all their haughtiness, refuse to see it coming. America is going to be blind-sided and totally shocked when she is rejected by the investors of the world. In fact, foreign capital flight is one of the primary mechanisms whereby America will be abandoned by her former “lovers” [trade partners; Jeremiah 4:30; 30:14, 24].

Last August, America got a taste of foreign capital flight. Its lenders decided to take their money elsewhere. Investments totaling a record-breaking $163 billion fled the U.S. that month, according to Treasury Department figures. And for the first time since 1998, foreigners on balance sold U.S. government treasuries. Asian investors alone, including Japan ($23 billion) and China ($14.2 billion), dumped $52 billion.

And what will be the effect? Visualizing this eventual probability, the Trumpet wrote in August 1997:

And now there is going to be a heavy price to pay. … For Japan and other foreign creditors to sell extensive amounts of U.S. treasury bills would be similar to a bank cutting off the credit line of a heavily indebted individual who relies on borrowed money to pay his bills, and then demanding immediate repayment of the outstanding loans. That is exactly the position in which the United States finds itself! Simply put, if early repayment of these loans are demanded through a massive sell-off of foreign-owned bonds, the United States would be unable to pay the face value of the bonds, let alone the interest! There is a mortgage on America—and foreigners hold that mortgage ….

In January 1998, we wrote that “the foreign-financed U.S. national debt is America’s Achilles’ heel! … [F]oreign financing of a country’s deficits, or national debt, is a time bomb just waiting in the shadows, ready to destroy a country financially when the lender countries … stop lending” (“Asian Financial Meltdown”).

Evidence today is vindicating the above statements. Last August, two Chinese government officials highlighted how China could use its massive U.S. dollar holdings (which include hundreds of billions in government treasuries) as a political weapon to influence the United States. One Chinese cabinet-rank minister went as far as saying that America’s debt should be used as a “bargaining chip” to influence trade talks. Another Chinese official warned that China could set off a dollar crash if it so desired. Chinese state media referred to the country’s stockpile of U.S. dollars as its economic “nuclear option,” capable of destroying the dollar at will.

In early November, a Chinese central bank vice director warned that the dollar was losing its luster as a reserve currency and that China might start diversifying its currency reserves—selling its dollars and U.S. treasuries, for example. The announcement roiled financial markets, causing a drop in the dollar’s value and a 350-point plunge in the Dow Jones industrial average.

But as foreign investment has begun to leave America, other countries—especially in Europe—have begun to benefit from all that foreign money looking for a new home.

The Rise of Europe

When the euro was launched nine years ago, many critics said it could never share the field with the dollar, pound or yen. Critics and analysts, while focusing on the many obstacles that a culturally fragmented Europe would need to overcome, largely overlooked or dismissed the economic strength a united Europe could exert if monetary union succeeded.

But because of our reliance on Bible prophecy, the Trumpet stands out as a voice that consistently and correctly predicted the rise of the euro and a European empire.

In May 1998, when many thought the euro would not be a viable currency, the Trumpet wrote the following concerning its launch: “The most profound and significant event since the fall of the Berlin Wall is about to break on to the world scene. It is an event which will change the whole framework of existing global political, economic and financial cooperation” (“EMU Takes Off”).

Earlier, in August 1997, the Trumpet asked,

[I]f the Japanese and other foreign debt holders pull out their support of the United States and the U.S. collapses financially, how will those investors attempt to keep themselves from financial collapse? The answer fits perfectly with Bible prophecy, which indicates they will probably put their money with the new economic superpower, which will be forced into a meteoric rise because of the fall and failure of the present economic superpower America, when it is abandoned by its economic “lovers.”Unknown to virtually everyone on Earth, America is being replaced in its role as the world’s sole-surviving superpower. Today, even as you read this article, a religio-political machine … is on the rise in Europe.Do we begin to catch a glimpse of imminent global economic upheaval? Can we see the competitive spirit with which the euro is being implemented? Can we see how the pullout of Japan as America’s financial underpinning could open the door for the euro to become the dominant international currency? … Once this occurs, the new euro will probably be catapulted into prominence and increased value, all the while climbing higher as it pushes the dollar deeper into the financial abyss!

Today the global shift in investment from the dollar to the euro is stopping the mouths of critics. Europe and the euro are on the rise—largely because of the weakness of America and its dollar. The euro has risen about 60 percent against the dollar since 2002.

As the Trumpetreported in November/December 2007, even former U.S. Federal Reserve Bank chief Alan Greenspan sees the possibility of the euro replacing the dollar as the world’s reserve currency. Greenspan warned in a September 2007 article in the German magazine Stern that both private investors and central banks were beginning to dump dollars in favor of the euro, narrowing the gap between the number of dollars held by foreign central banks as compared to euros. Greenspan also noted that the greenback didn’t actually “have all that much of an advantage” over the euro anymore and that in terms of cross-border trade, the dollar accounts for 43 percent, while the euro is used in a close 39 percent of exchange.

The world’s economic landscape is drastically changing. The dollar is on the verge of collapse, foreign investors are beginning to abandon the U.S., and investor confidence is shifting to Europe. The Trumpet has been warning of these events for decades. Future world events are not secret. The Bible reveals them and makes them plain.

Watch global trends! The dollar’s recent depreciation is only the beginning of many more biblically prophesied events that will drastically impact the Western world. As the parable of the fig tree tells us in Matthew 24:32-35 concerning end-time events leading up to the return of Jesus Christ, “when you see all these things, know that it is near, even at the doors.”

Iran Withdraws Money From European Banks

Iran Withdraws Money From European Banks

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Will sanctions ever work against Iran?

Iran has withdrawn around $75 billion of its foreign assets from European banks. This withdrawal was ordered by Iranian President Mahmoud Ahmadinejad in order to protect those assets from European threats to impose new sanctions over Tehran’s controversial nuclear ambitions.

According to Mohsen Talaie, Iran’s deputy foreign minister in charge of economic affairs, part of Iran’s assets in European banks has been converted into gold and another part has been transferred to banks in Asia.

During his recent trip to Europe, United States President George W. Bush won support for proposed new sanctions against Iran from leaders on the Continent. Yet the Iranian regime is showing no signs of slowing down its uranium enrichment process. Ahmadinejad has responded to these threatened sanctions in a televised speech where he called Bush a lame-duck president who has failed at every attempt to hurt Iran and said that the Western world cannot do anything to stop the Iranian nuclear program.

Governments across Europe, by repeatedly threatening to sanction Iran and then only halfheartedly carrying out those threats, are not deterring Iran’s nuclear ambitions; they are only giving the Iranians time to move their economic assets elsewhere. It may take the detonation of an Iranian nuclear device in a major Western city to wake the world up, but eventually someone is going to have to deal decisively with Iran.

That somebody is going to be Europe. To find out why, read The King of the South by Trumpet editor in chief Gerald Flurry.

Winston S. Churchill: The Watchman

Winston S. Churchill: The Watchman

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There has probably never been a greater political watchman than Winston Churchill. His foresight saved the Western world from demise in World War II. Yet today, the West scorns his message. The biggest tragedy of World War II is that we didn’t learn from that shameful and near-fatal disaster.

In 1932, there were 2 million members in the Nazi Party—400,000 men belonged to Hitler’s semi-military “storm troopers.” Three of the Nazis’ most strident demands were: 1) They wanted an end to the Versailles Treaty—a treaty to make the Germans pay for the damage they caused by starting World War i! 2) They wanted to rearm—something they were not allowed to do after World War i. 3) They demanded that German Jews be removed from all walks of German life (Iran’s President Mahmoud Ahmadinejad has made far more outrageous statements today).

This last demand should have alerted the world to where Germany’s rearmament would lead! Actually, there was really only one prominent leader who was alarmed by what was happening in Germany. He spoke out publicly against it. That man was Winston Churchill. He wanted to see Britain strengthen its weak military. Yet Britain’s foreign secretary, Sir John Simon, was working feverishly to get the British government to rapidly and comprehensively disarm! His appeal gained strong and enthusiastic support. Other members of Parliament were also working to achieve that goal.

Winston Churchill was a voice crying in the wilderness.

How could so many of our leaders in the U.S. and Britain—almost all of them—have been so weak in dealing with Hitler? Why was the British Parliament thinking of disarming as Germany rapidly rearmed?

Across the Atlantic, America was assuming a similarly passive posture. We might have remained that way throughout World War ii if Japan hadn’t directly provoked us at Pearl Harbor. As Edward R. Murrow said, “America didn’t enter into the war, they were bombed into it.”

Our leaders lacked the watchman quality of a strong leader like Churchill. He faced reality and spoke the truth in a dangerous world. Most leaders in the U.S. and UK lived in a weak world of illusion.

Martin Gilbert wrote the greatest biography ever of this great leader, Winston S. Churchill. In Volume 5, The Prophet of Truth, he wrote, “Into Europe’s ‘highly complicated and electrical situations,’ Churchill declared, ‘our well-meaning but thoughtless and reckless pacifists expect us to plunge with sweeping gestures, encouraged by long-distance halloos from the United States’” (emphasis mine throughout).

The U.S. was into appeasement even more than Britain. Both nations made horrendous misjudgments about Hitler. We should be embarrassed even today by our shameful weakness against one of the worst tyrants ever.

The big question is, did we learn anything from this towering mistake that almost cost us our freedom? Did Churchill’s example teach us why we made such colossal misjudgments?

Those who fail to learn from history are destined to repeat its catastrophes! Today a nuclear first strike is apt to win the next major war. So our margin for error is much smaller. That means we must stop a Hitler-type movement before it gains power.

We can’t afford the pacifist attitude we had before World War ii and survive nationally. Yet our pacifist attitude today is far worse than it was then. The appeasers are in control, and it’s getting dangerously worse.

“Smooth Things”

On Nov. 17, 1932, Churchill wrote in the Daily Mail,

Do not delude yourselves. Do not let His Majesty’s government believe—I am sure they do believe—that all that Germany is asking for is equal status. I believe the refined term now is equal qualitative status by indefinitely deferred stages. That is not what Germany is seeking. All these bands of sturdy Teutonic youths, marching through the streets and roads of Germany, with the light of desire in the eyes to suffer for their Fatherland, are not looking for status. They are looking for weapons, and, when they have the weapons, believe me they will then ask for the return of lost territories and lost colonies, and when that demand is made it cannot fail to shake and possibly shatter to their foundations every one of the countries I have mentioned, and some other countries I have not mentioned ….I cannot recall at any time, when the gap between the kind of words which statesmen used and what was actually happening in many countries was so great as it is now. The habit of saying smooth things and uttering pious platitudes and sentiments to gain applause, without relation to the underlying facts, is more pronounced now than it has ever been in my experience.

Churchill pleaded for leaders to speak the truth and not “smooth things” to the people. He even used a Bible expression to get their attention.

“Now go, write it before them in a table, and note it in a book, that it may be for the time to come for ever and ever” (Isaiah 30:8). The expression “time to come” in Hebrew is “the latter day.” So these prophecies were written in a book for the time we are living in now. “That this is a rebellious people, lying children, children that will not hear the law of the Lord: Which say to the seers, See not; and to the prophets, Prophesy not unto us right things, speak unto us smooth things, prophesy deceits” (verses 9-10). This was addressed to God’s spiritual and national leaders today. First it is to God’s own people. They wanted “deceits” to make it easy to rebel against God’s law. They knew God’s truth and prophecy. Then they rejected true prophecy and wanted “smooth things” from their leaders. They didn’t want a true watchman to warn them or the world.

Leaders like Winston Churchill and Isaiah refused to “prophesy deceits.” That is the mark of a great leader! They always tell the truth, no matter how hard it is to accept!

Churchill had to battle pacifist statesmen from every quarter. And Isaiah prophesied that we would get even worse leadership today than what Churchill battled against!

We were entering into “the latter days” even when Churchill was on the scene. He was fighting against Israel’s end-time attitude of wanting to hear “smooth things.”

We have been proving and teaching for over 50 years that Israel is primarily America and Britain. Churchill was fighting against this condition that was prophesied. And it’s going to get even worse! So expect physical and spiritual Israel to clamor for “smooth things” as we drift into disaster upon disaster!

Do we believe God? Do we have the courage to face the truth? Can we rise above our own weakness, or must we drown in it?

God says most will say, “Get you out of the way, turn aside out of the path, cause the Holy One of Israel to cease from before us” (verse 11). God’s people are turning away from the “Holy One of Israel.” That means physical and spiritual Israel. (If you want to prove what nations comprise Israel today, write for our free book The United States and Britain in Prophecy.) The people of Israel are the only people who have a history with the Holy One of Israel!

This prophecy is being fulfilled even now. It would behoove each one of you to drop everything and prove what I am telling you today!

A Leader’s Responsibility

Churchill said, “The responsibility of ministers to guarantee the safety of the country from day to day and from hour to hour is direct and inalienable.” Often a leader forgets his responsibility. His job is to do all he can to save his church or nation. Ultimately, this can only be done by God. But leaders also have their role to play.

A physical or spiritual leader must not forget why he is the leader. He has a duty to tell the truth in good and in bad times and then do all he can to protect his flock!

Churchill refused to soften or change his views for the people or the party leadership. Where is such a leader today?

We are heading into the worst crisis ever in this world, with chemical, biological and nuclear weapons. Only those people drowning in illusion can fail to see the great dangers.

The fact that there is no Winston Churchill on the world scene today is in itself a frightful warning! Our free booklet Winston S. Churchill: The Watchman explains why.

Hostile Educators

On Jan. 30, 1933, Adolf Hitler became Germany’s chancellor. On February 17, Churchill spoke at the 25th anniversary meeting of the Anti-Socialist and Anti-Communist Union. Commenting on the recent debate in the Oxford Union, at which a majority of the undergraduates present had approved the motion “That this House refuses in any circumstances to fight for King and Country,” Churchill declared:

That abject, squalid, shameless avowal was made last week by 275 votes to 153 in the debating society of our most famous university. We are told we ought not to treat it seriously. The Times talks of the Children’s Hour. I disagree. It is a very disquieting and disgusting symptom, [and he proceeded to explain why it troubled him].My mind turns across the narrow waters of Channel and the North Sea, where great nations stand determined to defend their national glories or national existence with their lives. I think of Germany, with its splendid ancient songs, demanding to be conscripted into an army; eagerly seeking the most terrible weapons of war; burning to suffer and die for their fatherland. I think of Italy, with her ardent Fascisti, her renowned Chief, and stern sense of national duty. …One can almost feel the curl of contempt upon the lips of the manhood of all these peoples when they read this message sent out by Oxford University in the name of young England.

That was the pathetic view of Britain’s future leaders. Churchill’s views were met with almost total hostility at Oxford. Our educators today are even greater appeasers. But he wasn’t crushed by his opponents. He only grew stronger!

Oxford was the leader of the pacifists. Other colleges and universities thought similarly in America and Britain. Have our educational institutions learned a lesson from the Hitler experience? No they have not! Neither have our political leaders, nor the media.

As Churchill said, mankind is unteachable. They refuse to learn. History keeps repeating itself in endless catastrophes! Being so wrong about one of the worst crimes and criminals in history is no small error!

Hostile Parliament

Anthony Eden (who later became prime minister) rebuked Churchill in Parliament. Martin Gilbert wrote:

As for Germany, they did not wish to double her army, but to change the system “which was imposed on her at Versailles,” replacing a small long-service army by a larger, but short-service militia.The house of Commons cheered Eden’s rebukes. On the following morning the press were strongly censorious. “The House was enraged in an ugly mood—towards Mr. Churchill,” declared the Daily Dispatch; and the Northern Echo called Churchill’s speech “vitriolic,” “a furious onslaught” and “one of the most audacious he has delivered.”

That didn’t deter Churchill from his warning. On July 9 he wrote in the Daily Mail: “I look with wonder upon our thoughtless crowds disporting themselves in the summer sunshine, and upon this unheeding House of Commons which seems to have no higher function than to cheer a minister”—and all the while, across the North Sea, “A terrible process is a stir. Germany is arming”!

Hitler continued to grow in power during 1934. On June 30, most of his Nazi Party rivals were killed. It was a night of bloody butchery. Still, most of the people in America and Britain continued to praise Hitler or refuse to fight against him. It was a shameful time in our history.

More and more, the Germans were building a strong military as they violated the Versailles Treaty. Churchill said,

Germany’s illegal air force was rapidly approaching equality with our own. … So far I have dealt with what I believe is the known, but beyond the known there is also the unknown. We hear from all sides of an air development in Germany far in excess of anything which I have stated today. As to that all I would say is, “Beware!” Germany is a country fertile in military surprises.

Still, the critics in Parliament discussed Churchill’s “scaremongering speech” or his “mad policy” proposals toward Germany.

Our leaders see little danger today in this nuclear age—where a surprise attack wins all!

As before World War ii, this generation has to grapple with having lived for many years in unreality. Our big battle in foreign policy is not to give in to rock-hard tyrants. But that is what we routinely do.

Winston Churchill asked some hard questions. It was not just a concern about foreign policy. He discussed issues upon which Britain’s whole existence depended. We ought to be asking some hard questions today.

On April 11 Churchill wrote to his wife:

My statements about the air[force] last November are being proved true, and Baldwin’s contradictions are completely falsified. There is no doubt that the Germans are already substantially superior to us in the air, and that they are manufacturing at such a rate that we cannot catch them. … How discreditable for the government to have been misled, and to have misled Parliament upon a matter involving the safety of the country.

In a letter to her two days later he said,

It is a shocking thing when a government openly commits itself to statements on a matter affecting the public safety which are bound to be flagrantly disproved by events. …On the whole, since you have been away the only great thing that has happened has been that Germany is now the greatest armed power in Europe. But I think the Allies are all banking up against her and then I hope she will be kept in her place and not attempt to plunge into a terrible contest. Rothermere rings me up every day. His anxiety is pitiful. He thinks the Germans are all-powerful and that the French are corrupt and useless, and the English hopeless and doomed. He proposes to meet this situation by groveling to Germany. “Dear Germany, do destroy us last!” I endeavor to inculcate a more robust attitude.

As danger worsened, the leaders and Parliament kept reassuring the public with false statements. Being self-deceived, they deceived the people. The leaders were too weak to face the hard truth.

And so are our leaders today.

The Threat From Latin America

The Threat From Latin America

Joedson Alves/AFP/Getty Images

As South America unifies, it is increasingly looking to Europe rather than the United States.

Latin American regional giant Brazil has become the driving force behind a proposed economic, political and military union that threatens to exclude the United States from military planning in the vast region spanning from Cape Horn to the isthmus of Panama.

On May 23, leaders from the 12 sovereign nations of South America met in the Brazilian capital and signed the constituent treaty outlining the legal framework of the Union of South American Nations (unasur). This legal framework outlines a plan of action that is to culminate in the establishment of an EU-style government for the South American continent. It would unite South America’s two major trade blocs—Mercosur and the Andean Community—and would establish a South American parliament based in Cochabamba, Bolivia. In addition to these measures, the constituent treaty would establish a South American Defense Council to mediate regional conflicts and defend the region from foreign intervention.

“We are going to make it so that the strength of South America is born of the union of our peoples,” Brazilian Defense Minister Nelson Jobim told the press back in April.

The constituent treaty will come into full force after it is ratified by nine of its 12 would-be member states.

While there are definite obstacles to overcome, the political, economic and military integration of South America is bound to be eased by the fact that it is the only multinational continent in the world to be united by a common linguistic background, a common culture, and a common religion. These factors should make South America’s path to integration a lot smoother than the rocky road the European Union has had to travel for the past 51 years. Venezuelan President Hugo Chavez’s exclamation that “From Mexico to Argentina, we are one whole nation” may be a little premature, but it definitely holds a core of truth.

This region is being united by more than just religion, culture and money, however. It is being united by a dangerous ideology that every American should know about. That ideology is anti-Americanism.


One of the key stimulations that emerged during the framing of unasur and the South American Defense Council was that the United States was to be in no way involved. According to the Brazilian defense minister, “[T]here is no possibility of participation by the United States because the council is South American and the U.S. is not in South America.” He has already met with U.S. Secretary of State Condoleezza Rice and Secretary of Defense Robert Gates to firmly establish this.

The United States has been deeply entrenched in Latin American affairs since 1823, when U.S. President James Monroe established the Monroe Doctrine to keep European powers out of the New World. In pursuit of American interests, the United States has overthrown no less than 40 hostile Latin American governments in the 20th century alone. What many in America view as a policy of protection and liberation, however, is now viewed in Latin America as a policy of imperialism.

As a sign of just how far America’s relationship with Latin America has fallen, the Pentagon has found it necessary to redeploy the U.S. Navy’s 4th Fleet to the waters off the eastern coast of South and Central America for the first time since shortly after World War ii. This move is likely in response to all the anti-American rhetoric being spewed from the mouth of Hugo Chavez. Rear Adm. James Stevenson, commander of U.S. Naval Forces Southern Command, said that the deployment would probably focus on security issues and would send a clear message to the entire Latin American region.

One bbc news analysis article, titled “How the U.S. ‘lost’ Latin America,” sums up the distribution of Latin America’s anti-Americanism this way: “If you were to color a map of anti-Americanism in Latin America, for nearly 50 years Fidel Castro’s Cuba has been the deepest red. Three of the most economically developed countries—Brazil, Chile and Argentina—are now in varying shades of left-of-center pink.” The article continues that Venezuela and Bolivia could both now be considered deep red and says that current conditions in Peru, Mexico and Nicaragua indicate that they also may become more anti-American in the near future. Colombia is the only country in the region that could really be considered an “ally” of the U.S.

U.S.-Venezuelan lawyer Eva Golinger, who has dedicated herself to exposing U.S. intervention in Venezuela, claims that the United States has literally lost control of the region. “The backyard of the U.S. has gone,” she says. “It’s created its own neighborhood, and the U.S. isn’t part of it.”

Former Nicaraguan President Violeta Chamorro further lamented the fact that U.S. politicians can always seem to find the money to sponsor wars in Latin America, but can rarely seem to come up with enough funds for peacetime developments. She claims that even a slice of the money used to back anti-Communist Contra guerillas in her country would be enough to build a whole new Nicaragua.

European Alliance

If peace-time investment levels are the problem, however, Germany and its EU allies should be Latin America’s best friends. Even though the European trade bloc is still only Latin America’s second-greatest trade partner (behind the United States), it is definitely Latin America’s greatest investor and its primary donor of developmental aid. German trade alone across the entire Latin American region has already risen to a value of $55 billion as of last year—making Germany Latin America’s largest trade partner in the European Union.

German industrial giants like ThyssenKrupp AG have been developing relationships with Latin American countries through their investments since 1837. Now ThyssenKrupp is building the largest steel-producing complex to be built in Brazil in 20 years. When finished, this steel-producing complex will have cost $4.6 billion and will be ready to start actively churning out steel products to be sold to Germany and South America. It is reported that a full 10 percent of Brazil’s industrial gross domestic product is produced by German daughter companies throughout the nation.

Germany has sold 340 German tanks to the Chilean military over the past 12 years. Even though Germany’s relationship with Venezuela is still pretty rocky at times, high levels of economic investment, developmental aid, and arms exports are forging a strategic partnership between a German-led EU and most of Latin America. As anti-Americanism increases, Europe is becoming the rising star south of the Rio Grande.

This relationship is not completely one-sided by any means, because Latin America is far more important to Europe as an industrial base than as a simple trade partner. The entire region from the Rio Grande to Terra del Fuego is a giant storehouse of timber, natural gas, crude oil, minerals, precious metals, and especially iron. These are resources that Europe needs if it is to continue its ascension to world superpower status.

So, what does the emergence of a unified, anti-American, European-oriented trade bloc mean for the world? Consider the following quote from the May 1962 Plain Truth:The United States is going to be left out in the cold as twogigantic trade blocs, Europe and Latin America, mesh together and begin calling the shots in world commerce. The United States is going to be literally besieged—economically—frozen out of world trade.”

If the United States lost Latin America to Europe as a primary trade partner, the effects would be devastating. The U.S. economy would starve to death industrially—it is that reliant on its southern neighbors. Such an eventuality could even be the death knell for the U.S. dollar. If the dollar were to collapse, as it is in grave danger of doing, the economic reverberations would shake this world’s financial systems to their core. Britain, Canada, Australia, New Zealand and Israel would all experience economic meltdown. The nations of Asia, which are based on American consumerism, would suffer, at least temporarily. The only self-sustaining economic bloc at that point would be Europe. Countries across Latin America (and Africa) would have no option other than complete reliance on the economic ties that a German-led EU is currently establishing with them.

Either in name or in effect, the nations of Latin America would become virtual colonies of a European empire. It is as T.H. Tetens wrote in his book Germany Plots With the Kremlin, “South America will be conquered by business agents, not by guns.”