EU Considering a Partial Greek Default; Fed Considering USA Default

World Currencies

A lot of the financial headlines are not good:

Fed Secretly Preparing for Doomsday

21 July 2011

Fearing the worst, the Federal Reserve is actively preparing for the US to default on its $14.3 trillion debt.
Plan to deal with the unthinkable.

New Rescue Plan for Greece May Include ‘Selective Default’

New York Times – 21 July 2011

BRUSSELS – European leaders began a crucial meeting Thursday after talks between Germany and France produced agreement on a rescue plan for Greece that may push the country to default on some of its debt for a short period.

Progress scarce as debt limit impasse continues

Forbes – ‎21 July 2011

WASHINGTON — Progress remains elusive as official Washington grapples day after day for a way out of a debt dilemma that has the government sliding toward a first-ever default on its financial obligations.

Printing money is Europe’s only way out

http://www.marketwatch.com/story/printing-money-is-europes-only-way-out-2011-07-20?reflink=MW_GoogleNews

The euro now threatens the world with economic meltdown

http://www.dailymail.co.uk/debate/article-2017107/CHRISTOPHER-BOOKER-The-euro-threatens-world-economic-meltdown.html?ito=feeds-newsxml

European economists warn survival of the euro is at stake

http://www.telegraph.co.uk/finance/financialcrisis/8650866/European-economists-warn-survival-of-the-euro-is-at-stake-letter-in-full.html

Make-or-break day for Europe

http://www.businessday.co.za/articles/Content.aspx?id=148866

Germany, France agree deal as euro summit looms

http://www.bi-me.com/main.php?id=53655&t=1&c=34&cg=4&mset=1011

While the Europeans have a lot of debt, the USA has even more. Despite the debt crises in several EU nations, the debt situation is worse in the USA and individual USA states have problems similar to the indebted EU countries. And while Europe may not have done enough to solve those issues, it seems to have at least tried to take stronger steps than the USA and many of its states have.

As I have mentioned before, the debt situation has convinced many nations that the world needs to be free of the US dollar as “the world’s reserve currency.” One of the reasons, from a carnal perspective, that the Euro has not crashed is because it is somewhat of the de facto alternative reserve currency after the USA dollar. While in theory, Chinese renminbi yuan could be, to be frank, financial people around the world simply trust the Chinese less than they do the Americans or the Europeans. Other national currencies, like those of the Canadians, Norwegians, or Swiss, simply do not have a big enough amount of total economic activity backing them up to make them a global alternative to the US dollar or the Euro. This is also one of the reasons that gold has tended to go up in dollar terms the past several years.

I have long warned about more civil unrest coming to Europe, and the current crisis may be a major factor in that direction. If major civil unrest does break out, look to see if militaristic leaders rise up–if so, one is likely to be the final King of the North, the final Beast leader of Bible prophecy.

The current budget/debt/borrowing limit stalemate in the USA is telling the world that the USA really does not intend to pay down its debt, only that it may not raise it as fast as it otherwise would. This is dangerous. While the USA will somehow muddle through, it has not made itself look like a first-rate financial power during the past few weeks of public debate on its federal budget.

Eventually, despite Europe’s problems (cf. Daniel 2:42-43), Bible prophecy shows that Europe will be THE major economic superpower for a short time. And as I have written many times at COGwriter, I expect the euro to drop in value from time to time, and even to plummet should major civil unrest occur, until the euro (or whatever replacement currency Europe would have should the euro be dropped, including a possible world currency) becomes the actual world reserve currency essentially replacing the US dollar.

For details on those prophecies, check out the following:

Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? What is ahead for Europe?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
Might German Baron Karl-Theodor zu Guttenberg become the King of the North? Is the German Defense Minister one to watch? What do Catholic, Byzantine, and biblical prophecies suggest?
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold?
Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo (non-Dutch) Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? What will happen to Jerusalem and the Jews in Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Will the Anglo-Nations be Divided and Have People Taken as Slaves? Will the lands of the United States, United Kingdom, Canada, Australia, and New Zealand be divided? What about Jerusalem? What does Bible prophecy teach? Are there non-biblical prophecies that support this idea? Who will divide those lands? Who will end up with the lands and the people?
Canada in Prophecy: What Does Bible Prophecy, Catholic Prophecy, and other Predictions Suggest About the Future of Canada? There are prophecies that suggest involvement with Canada. And many are not positive about its future.
Who is the King of the West? Why is there no End-Time King of the West in Bible Prophecy? Is the United States the King of the West?
Prophecies of Barack Obama? Eight reasons why Barack Obama is apocalyptic and eight reasons why Barack Obama is not the Antichrist. This article includes many biblical and non-biblical prophecies, from around the world, that seem to discuss Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? Might Barack Obama set the stage for the kings of the North and South as at least one Shiite prophecy suggests? This is the longest and most complete article on this page on Barack Obama prophecies. Read it and decide for yourself if President Obama seems to be fulfilling various prophecies.
Barack Obama, Prophecy, and the Destruction of the United States Some claim that Barack Obama is the prophesied “son of Kenya”, based up an early 20th century writing.
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? When does the six thousand years of human rule end?
Can the Great Tribulation Begin in 2011, 2012, or 2013? Can the Great Tribulation begin today? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?