Is the Euro doomed? Notice the following view this week from David Brown:
With European economies mired in recession, is the euro living on borrowed time?
The euro is living on borrowed time and the deepening monetary muddle in Europe won’t help the currency once the dust settles on the US elections. The euro looks overvalued and a prime target for an ambush later this year. Europe’s monetary pacesetter, the European Central Bank, seems to be fighting a losing battle, struggling to keep the European economy from slipping into a deeper recession. The more policy stimulus the ECB throws into the ring, the greater the damage to its monetary reputation, and to little avail so far. 08/24/20 https://www.scmp.com/comment/opinion/article/3098555/european-economies-mired-recession-euro-living-borrowed-time
Over the years, others have claimed that the Euro was doomed.
A couple of years ago, Hans-Werner Sinn wrote:
Are we seeing the twilight of the euro?
31 July 2018
In May 1998, irrevocable conversion rates for the currencies that would be merged into the euro were implemented. In a sense, this makes the single currency just over 20 years old. The first decade of its life had the feeling of a party, particularly in Southern Europe; but the second decade brought the inevitable hangover. Now, as we enter the third decade, the prevailing mood seems to be one of increasing political radicalization. …Now that we are entering the euro’s third decade, it is worth noting that Portugal, Spain, and Greece are all governed by radical socialists who have abandoned the concept of fiscal responsibility, which they call “austerity policy.” Worse still, Italy’s establishment parties have all been swept away. The country’s new populist government – comprising the Five Star Movement and Lega Nord – intends to increase the country’s debt substantially to pay for its proposed tax cuts and guaranteed-income scheme; and it might threaten to abandon the euro altogether if the EU refuses to play along.
In view of these facts, even the most committed euro enthusiast cannot honestly say that the single currency has been a success. Europe has quite plainly overextended itself. Unfortunately, the great sociologist Ralf Dahrendorf was right to conclude that, “The currency union is a grave error, a quixotic, reckless, and misguided goal, that will not unite but break up Europe.”
Notice that Hans-Werner Sinn agrees with Ralf Dahrendorf who concluded that the Euro will break up Europe.
Here is a view of the Euro from Edward Hadas:
The euro is doomed. That claim was first made as soon as a European single currency was officially suggested in 1970. Predictions of disaster have come steadily ever since. The actual appearance of the currency in virtual form in 1999, the euro zone banking crisis that started in 2010, and now a new eurosceptic Italian government have all spurred warnings of inevitable woe. …
Still, while the euro did not spark the rise of nationalism, that rise could certainly doom it. The future of the single currency depends on which historical force proves stronger – the drive for nationalist independence or the momentum towards European unity. The latter, which brings peace and prosperity, is down but far from out. This drama could still have a happy ending. 07/04/18 https://www.reuters.com/article/us-europe-eurozone-breakingviews/breakingviews-hadas-the-euro-is-not-doomed-idUSKBN1JU200
While I would not call what will happen with Europe a “happy ending,” biblically we know that Europe will rise again and unite (cf. Revelation 13:1-10; Daniel 2:41-43; Revelation 17:12-13).
Notice one move by the Germans related to the Euro a couple of years ago:
Deutsche Bank has moved a “large part” of its euro clearing activity to Frankfurt from London in a boost to the efforts of the eurozone’s top financial centre to lure business away from the City before Brexit. … the change, confirmed by a spokesman and first reported by the Financial Times, will be seen as a victory in Deutsche Börse’s campaign to grab a larger slice of the euro clearing market. …
A spokeswoman for Eurex said it had a market share of 8% of euro clearing, up from virtually zero a year ago.
Hubertus Väth, the chief executive of the marketing group Frankfurt Main Finance, told the FT that moving euro clearing from London to Frankfurt was “on top of our priority list from the very first day after the Brexit referendum”.
Clearing houses act as an intermediary and guarantor between firms that buy and sell financial instruments such as interest rate swaps.
London hosted about 70% of euro transaction clearing as of 2013, according to the Bank for International Settlements.
So, because of Brexit, the Europeans are taking steps to get more control over the Euro.
That being said, Europe will have issues and the Euro will have issues. The Euro has already had issues that many have wondered about this year (watch End of the Eurozone?).
The Bible shows that the final European Beast power will not be naturally-united:
41 Whereas you saw the feet and toes, partly of potter’s clay and partly of iron, the kingdom shall be divided; yet the strength of the iron shall be in it, just as you saw the iron mixed with ceramic clay. 42 And as the toes of the feet were partly of iron and partly of clay, so the kingdom shall be partly strong and partly fragile. 43 As you saw iron mixed with ceramic clay, they will mingle with the seed of men; but they will not adhere to one another, just as iron does not mix with clay. (Daniel 2:41-43)
As I have written for years, there will be more civil unrest in Spain. Greece, Italy, and other parts of Europe will have unrest. Cracks in the Eurozone could well lead to not just difficulties, but to temporal unification.
…European countries urgently want political union, the very UNITED STATES OF EUROPE I have been assuring PLAIN TRUTH readers for 31 years is definitely coming. It will unite them into a giant third World Power…
There is a definite German “Kultur! There is a French culture that is in many respects quite different. Then there is a still different Italian culture, a Spanish culture, a Scandinavian culture, a Swiss culture–and all are different! European nations speak different languages, have different aspirations, different customs, different traditions. Europe is often called a “crazy-quilt” of nations.
HOW, THEN, CAN THEY AGREE TOGETHER AND UNITE? For years The PLAIN TRUTH has said these nations are going to have to realize their inability to unite themselves politically-to choose a common political-military Leader that all can trust. They are going to finally face the fact they must look to a Supreme Authority they can all trust! That Supreme Authority cannot be a politician, or a general (De Gaulle is both). The only possible answer is a Religious Leader! (Armstrong HW. Personal. Plain Truth, November 1965, pp.1-2)
So, he felt that while they needed a political-military leader, he also felt some type of religious leader was needed to unify Europeans.
But there was more. In a sermon on July 7, 1984, he added:
And I can see now, the event that is going to trigger the formation of the reunification in Europe; the resurrection of the medieval Holy Roman Empire that we’ve been looking forward to that is prophesied to come…
But I believe that some event is going to happen suddenly just like out a blue sky that is going to shock the whole world and is going to cause the nations in Europe to realize they must unite! … Well now I think I can see what may be the very event that is going to trigger … that is the economic situation in the world …
The whole banking structure in the United States is a network all jointed together. But not only that, one nation has to deal with other nations and imports and exports. And so they have to have a means of transforming money from one nation to another. And so the banking structure is international and interwoven …
Now when the financial structure breaks down, all civilization is going to break down …
Europe will reorganize and unite for a time.
A militaristic leader will rise up in Europe and gain control:
12 “The ten horns which you saw are ten kings who have received no kingdom as yet, but they receive authority for one hour as kings with the beast. 13 These are of one mind, and they will give their power and authority to the beast. (Revelation 17:12-13)
But as far as the Euro and the US dollar go, back in 2009, I wrote the following:
It would seem that once the U.S. dollar totally collapses people all around the world will consider that even if the Euro is strong, having a more gold-backed currency would be safer. Having the European power acquiring a lot more gold to back the Euro (even if the backing is only implied) or possibly other future European currency (that might potentially replace the Euro) may greatly increase European credibility, prosperity, and influence around the globe.
And I have quoted that at this news page off and on since then. Here are some things I wrote in 2017 in my book Donald Trump and America’s Apocalypse:
While the Bible shows the Europeans will have difficulties being together (Daniel 2:41-43), it also shows that they will reorganize and unite (Revelation 17:12-13). …
It has been proposed that various nations around the world are already in the process of accumulating gold to one day overthrow the U.S. dollar—and that the “U.S. is unprepared for this strategic alternative to dollar dominance” (Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016).
When the U.S. dollar totally collapses people all around the world will consider that even if the Euro (or something similar) is strong, having a more gold-backed currency would be safer.
The collapse of the USA dollar will shake a lot of the world’s confidence in non-gold backed currencies.
The Europeans do not have to have a perfect currency, only one that is perceived to be in better shape than the USA dollar.
Having the European power acquiring more gold to back the Euro or possibly another future European currency (that might potentially replace the Euro or even a basket of currencies) may greatly increase European credibility, prosperity, and influence around the globe, even if the backing is only implied.
The reality is that the Euro has issues, but Europe and others are taking steps to replace the US dollar as the world’s primary reserve currency and are using gold as part of their plan.
Whether it is to head off a crisis, back the Euro or some future currency, or to dethrone the US dollar, the Europeans are preparing for financial change.
Back in 1971, the old WCG clearly taught that the Europeans would get their own currency:
Envision the startling future of Western Europe… A “United States of Europe” possessing one single currency – a currency so strong that it will replace the U.S. dollar as the kingpin currency of world trade. (Hogberg G. EUROPE’S COMMON MARKET RISING WORLD COLOSSUS. Plain Truth, May 1971)
The Europeans do have their own currency, and while it has not yet replaced the dollar, the time will come when the world will NOT keep the US dollar as its primary reserve currency.
A crisis and reorganization (cf. Revelation 17:12-13) will come to Europe, but will unite behind the Beast for at least 42 months before Jesus returns (cf. Revelation 13:1-10).
Economic factors will one of several causes that will bring that together.
Some items of possibly related interest may include:
