The Garner Ted Armstrong Evangelistic Association
 
 

Europe’s Impending Calamity

By Michael Burkert

 

 

            We have big trouble in the United States and everyone knows it. Every day, our President tells us how bad it is and that it’s not going to get better any time soon.

Unemployment is nearing 8% and foreclosures, repossessions of homes, automobiles and even the family washing machine are not uncommon. Before it’s over, these things will be even more common than they are now. Due to our own problems at home, our nation is not paying a great deal of attention to our friends in the European Union and beyond. Trust me when I say that Europe is in big trouble and it isn’t getting any better.
 

            There’s a serious financial disaster waiting to happen in Europe that will shadow our troubles at home. The European Union is saddled with a whopping 25 trillion dollar debt that is growing exponentially every day! Most of us, if any, cannot even imagine 25 trillion dollars!
 

            The leading candidate among many to fall financially in Eastern Europe is Russia. Only a few months ago, Russia’s leader, Vladimir Putin, announced a U S 400 billion dollar program to modernize the Russian Armed Forces. This intention had the EU scared and intimidated. My former colleagues at NATO headquarters, as well as my friends in the German Bundeswehr were nearing panic over the thought of a “Russian steamroller” once again forming on their borders. However, today in the light of $33.00 per barrel oil, opposed to $150.00 oil, Russia is barely able to pay her soldiers every month, let alone fork out $400 billion for modernization. If Russia defaults on her loan obligations, the European Union will suffer an extreme calamity that may spell the end of the Union.
 

            Austria’s Finance Minister, Josef Proell has undertaken a frantic effort to raise $180 billion in a bailout of the Russian economy. Austria has already lent nearly $300 billion to Russia, Ukraine, Belarus, and other former Soviet bloc countries and is worried stiff over their failure to remain solvent. Already, Austria has lent over 70 percent of her GDP to former Soviet countries. Default will spell financial collapse for Austria.
 

            In Brussels, it was revealed that Eastern European countries have borrowed over U. S. $1.7 trillion in the past year alone. Russia’s interest payment alone is near $500 billion and with oil so cheap cannot even begin to think about servicing her debt! Russia is near bankruptcy and may take Austria and the European Union down with her.
 

            Many Eastern European nations, such as Poland, Czech Republic, Ukraine, and others are financed with Swiss and EU money. Many mortgages on Polish homes are financed in Euro and must be paid in Euro. Sixty percent of Polish homes are financed in Swiss francs. However, the Polish zloty has turned in all time lows against the Euro and thousands of Poles are in jeopardy of losing their homes. Since the zloty recently halved against the Swiss franc, even more Poles may lose their homes due to foreclosure. Poland has no welfare system as does Western Europe and the United States. If you are homeless in Poland, you are in serious trouble.
 

            These same dire strait troubles are permeating Eastern Europe. How quickly things change! How quickly things change. When I left Germany in 2006, Eastern Europe and the European Union appeared to me to be on a roll! Many of the indicators I had seen and written about previously, seemed to be completely opposite to what I was witnessing as prosperity was rampant and all around. Even the German unemployment rate, which I had reported as high, was on the decline. But as fast as things are moving, it’s hard not to see that many of the predictions that have been made over the years are going to come to pass, and soon.
 

            For years, Garner Ted Armstrong warned of a coming international financial meltdown and the consequences such an event would inevitably bring upon us. He warned that the European Union as we know it today would not survive as a bloated, oversized behemoth. What he warned us about is coming down the pike.
 

            What is most scary to me is the fact that the German economy has shrunk by 8.4% just in the last quarter of 2008. Deutsch Bank projections call for an overall continued shrinkage of the economy at a staggering 9% for 2009. This is the sort of shrinkage level that stokes popular revolt. Don’t think for one minute that the ultra nationalist parties, particularly the National Democratic Party or NPD isn’t watching events closely as they see their ranks already growing. Now, it is normal every day Germans, fed up with the failures of western-style democracy coupled with disdain for the masses of hostile immigrants from the Middle East. Most Germans blame the United States for imposing “human rights” ideals and policies over the past 50 years.
 

            Most Germans blame the United States for the worldwide meltdown of economies, theirs included! Wagging the “Nazi finger” in the faces of the Germans is rapidly losing the traction that it once had. Financial meltdown will topple governments and will usher in totalitarian regimes. It always has! So many EU countries are in trouble that Berlin can only participate in limited bailouts. However, based on their  own history, German economists are leery of any Obama-style bailouts. German economists know that they can’t spend their way to prosperity, nor can they get out of debt by spending more money. The history of the Weimar inflation of the 1920s that ushered in Hitler and the Third Reich is not as lost on Germans as it is to us here in the United States and British Commonwealth nations.
 

            The indications are that Germany will not even attempt to rescue Spain, Portugal, Ireland, Greece, or Iceland as they proceed to financially implode. Rather, Germany will wait on the sidelines and exploit this crisis for her own benefit. Even if Berlin accepts the plan for EU “union bonds” as is currently being proposed, Germany will not openly participate in the rescue of Italy, as an example, as the Italian public debt increases to 112% of its GDP. Neither will Germany rush to the rescue of Austria and her “Hapsburg adventurism” in Eastern Europe.
 

Breaking News Stories
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Further reading:
Our Commentary
Global Financial Meltdown...Now Near?  –by Garner Ted Armstrong
Is A GLOBAL ECONOMIC MELTDOWN UNDERWAY?  –by Garner Ted Armstrong
UN, NATO, Europe Divided!   –by Garner Ted Armstrong

Ugly Anti-Americanism In France And Germany - Where Will It Lead?  –by Garner Ted Armstrong
NATO...Are Its Final Days Just Ahead?   –by Chris Cumming & Mark Armstrong
The Euro...the New World Currency?   –by Chris Cumming

NAZI Legitimacy? –by Mark Armstrong
Are the EU and the Euro on the Ropes? –by Michael Burkert
Postponing Economic Meltdown in Germany –by Michael Burkert 

Hitler and Nazi Resurgence –by Chris Cumming
Economic Collapse – Planned Disaster  –by Jim Josephsen
Economic Meltdown - Averted or Just Delayed? –by Mark Armstrong
 
21st Century Watch
America's Economic Woes by Jim Josephsen  Volume 11, Number 1
 
Quote by Garner Ted Armstrong:
 "The inflated bubble that is the global economy will eventually burst. Billions will be lost overnight when the stock markets of the major nations crash. The United States and Britain will be reduced to the kind of poverty and joblessness that was extant during “the Great Depression,” only worse. Our cities will begin to resemble some of those of Bangladesh.

"When that happens, massive unemployment, and the strident voices of ultra-nationalists will be heard in the streets of many nations, especially in Europe and Germany."
~Is A GLOBAL ECONOMIC MELTDOWN UNDERWAY? 
Resources
 

Photo:
The European Union