The Trumpet (Link) - Brad Macdonald & Richard Palmer (July 22, 2011)
Nearly 30 years ago Herbert Armstrong prophesied that a massive banking crisis “could suddenly result in triggering European nations to unite as a new world power larger than either the Soviet Union or the U.S.” (emphasis added throughout).
On Thursday, that prophecy became reality.
To many observers, Thursday’s eurozone meeting in Brussels seemed like just another meeting. Europe’s leaders, noted some economists, have once again kicked the can down the road. These people have gotten bogged down in the details. In reality, unlike previous summits, Europe’s leaders on Thursday made several important long-term decisions that catapult the Continent toward becoming a European superstate.
“[I]t is almost impossible to overestimate the importance of the decision which European leaders seemed last night to be reaching,” wrote the Telegraph’s chief political commentator, Peter Oborne, in an article titled “The euro crisis will give Germany the empire it’s always dreamed of.”
Even German Chancellor Angela Merkel, a lady not prone to exaggeration or speaking in dramatic terms, announced Thursday that “this is a historic day.”
“What we are doing now is an example for deeper integration—handing over and transferring more competences to EU institutions,” Merkel said.
The deal announced Thursday extends a €109 billion loan to Greece, and lowers the interest rate that Greece, Ireland and Portugal have to pay on their loans. But the most important conclusions are the changes to Europe’s bailout mechanism.
Here is what Mr. Oborne wrote about Thursday’s developments—read it slowly and carefully:
By authorizing a huge expansion in the bailout fund that is propping up the EU’s peripheral members (largely in order to stop the contagion spreading to Italy and Spain), the eurozone has taken the decisive step to becoming a fiscal union.
On Thursday, we heard the death knell for sovereignty in some European states, countries like Greece, Portugal and any others that will in the future take their orders from a centralized financial authority. Oborne continued:
So long as the settlement is accepted by national parliaments, yesterday will come to be seen as the witching hour after which Europe will cease to be, except vestigially, a collection of nation states. It will have one economic government, one currency, one foreign policy. This integration will be so complete that taxpayers in the more prosperous countries will be expected to pay for the welfare systems and pension plans of failing EU states.
The eurozone leaders’ decision turns the bailout mechanism into a “European Monetary Fund,” and even the prototype of a European treasury. The fund will now be allowed to help out Spain and Italy without those nations having to submit to a formal bailout. It will also be allowed to buy government debt from banks and investors.
In essence, it subjugates southern Europe to Germany!
“Their economic sovereignty has been obliterated; they face a future as vassal states, their role reduced to the one enjoyed by the European colonies of the 19th and early 20th centuries,” wrote Oborne. “They will provide cheap labor, raw materials, agricultural produce and a ready market for the manufactured goods and services provided by the far more productive and efficient northern Europeans.”
After Thursday’s meeting, Ambrose Evans-Pritchard wrote, “Europe’s leaders have grasped the nettle. Faced with a spiraling bond crisis in Italy and Spain and the greatest threat to the EU project for 50 years, they have ripped up their bailout strategy and taken a large stride towards a ‘liability union.’ … Germany has dropped its vehement opposition to debt sharing and crossed the line in the sand towards fiscal federalism.”
The Telegraph’s Jeremy Warner wrote, “The agreement refers to a ‘European Marshall Plan’ to restore competitiveness to Greece. This doesn’t appear to mean money. Instead it seems to refer to the provision of ‘exceptional technical assistance to help Greece implement its reforms.’ In other words, someone else will be running Greece’s affairs. That might be regarded as a positive development. Greece has, after all, proved quite incapable of running them for itself. Democracy has nevertheless been suspended.”
This deal is a major leap toward a superstate. But there are still some hurdles that need to be overcome, the first of which is that the deal is probably illegal. A court case is already underway in Germany’s constitutional court to determine if these bailouts break the law. By signing up to the deal, Merkel violated a German parliament resolution that limits how far she could go in promising to help other nations with their debts. Whatever happens, Germany is not going to abandon the idea of European unification. Why? It is because ultimately these developments will benefit Germany.
Back to Oborne:
While these nations relapse into pre-modern economic systems, Germany is busy turning into one of the most dynamic and productive economies in the world. Despite the grumbling, for the Germans, the bailouts are worth every penny, because they guarantee a cheap outlet for their manufactured goods. Yesterday’s witching hour of the European Union means that Germany has come very close to realizing Bismarck’s dream of an economic empire stretching from central Europe to the eastern Mediterranean.
Europe will unify, and it will be on German terms!
The deal also has to be approved by the parliaments of all 27 EU member states—including Britain’s, which could raise some severe objections.
Many experts also believe the measures put forward yesterday simply aren’t enough to fix Europe’s problem. Some worry that even with proposed sacrifices by private investors—which could be classified as Europe’s first sovereign default since World War II—Greece will still need more help in the future. Europe hasn’t published all the details of the changes to the bailout fund. Will Europe be giving it more money? Will it be big enough to ensure Italy and Spain don’t get into trouble?
The drama is definitely not over. Europe just took a giant leap toward becoming a German-led superstate, but expect this crisis to force Germany and Europe to take more radical steps toward unification.
Mr. Armstrong told us years in advance where Europe will soon arrive. He forecast “a sort of soon-coming ‘United States of Europe’—a union of 10 nations to rise up out of or following the Common Market of today.”
In addition, he foretold of a second outcome that we can closely watch in light of this development: Britain, he said, “will not be in that empire soon to come.”
This, too, is happening before our eyes. As Europe comes together, several important British politicians, including Prime Minister David Cameron and Chancellor of the Exchequer George Osborne, are saying that Britain should end its longstanding opposition to a “two-speed Europe”—where a core group of nations accelerate their integration—and instead use this opportunity to negotiate more independence.
So, this financial crisis is not only driving further European unification, it also appears to be causing Britain to look for a way out. Two of Herbert Armstrong’s most prominent prophecies are being fulfilled in the same moment!
This prophecy is one that Trumpet editor in chief Gerald Flurry has also highlighted. “Watch closely. Germany will use this crisis to force Europe to unite more tightly,” he wrote earlier this year. “In the process, some eurozone countries will be forced out of the union.” There are still more turbulent times ahead for the euro. But as Mr. Flurry wrote, “Every country that leaves the EU puts us one step closer to seeing the German-led 10-nation European superstate!”
“We are witnessing one of the most significant moments ever in the history of Europe,” Mr. Flurry said. †