Information Related to "The Eurozone Debt Crisis: Calamity Still Looms"
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John Ross Schroeder
Ardent EU supporters promote a best-case scenario, the debt crisis concluding with diminished consequences. Others lay out worst-case scenarios, such as Britain's Daniel Hannan in his October 2011 Standpoint article "The End of Europe's Fantasy Is Now in Sight." Whatever happens, in the long run God's Word will be the determining factor.
German Chancellor Angela Merkel. In late October, European leaders reached a debt agreement in Brussels.
Source: Wikimedia Commons
Apparently some residents of the so-called "Brussels bunker" now work merrily along in a surreal atmosphere of relative calm. One ambassador in Brussels, de facto capital of the European Union (EU), expressed it this way: "I feel like a filing clerk in Berlin in 1945. The work of government goes on, even as the war approaches" (quoted in "Charlemagne: In the Brussels Bunker," The Economist, Sept. 17, 2011).
Despite the enormity of the EU bailout recently agreed on by Germany and France and the measures adopted to avert catastrophe in late October, competent observers will tell you that although more time has been bought at a great price, this crisis is far from over - and most probably the worst remains yet to come.
Something instinctive within the German psyche tells this country that neither nations nor individuals can flaunt financial laws and get away with it.
As Time magazine reported: "Germany is dominating Europe. While the other major economies of the region - France, Italy, Spain and the U.K. - have stumbled out of the Great Recession, the German economy is probably the strongest it has been since the post–Cold War unification of East and West Germany in 1990. The reasons are hard work and thrift.
"As its neighbors gorged on cheap credit and built too many houses during the pre-2008 go-go years, Germany was busy reforming its economy. Policymakers liberalized the labor market to boost job creation, corporate managers invested in technology, and unions accepted changes in work rules that lowered costs. That experience has influenced Berlin's approach to the euro-zone debt crisis" (Michael Schuman, "Why Germany Can't Save Europe, Much Less the World,"Oct. 3, 2011, emphasis added throughout).
To the German mind, economically weaker euro countries should become stronger by following the German penchant for hard work, thrift and wise management of resources. Not to do so breaks natural laws.
The Economist's column titled "Charlemagne" picks up the thread of this thought. "There is an angry self-righteousness to German rhetoric. Schulden, the German word for debt, is derived from Schuld, which also means guilt. In a revealing recent speech in Washington DC, Wolfgang Schäuble, the German finance minister, said that the crisis was the result of forsaking 'long-term gains for short-term gratification,' by piling up debt and abandoning competitiveness. The answer is not to throw more money at the problem…Why should sinners be given an easy way out?" ("Keep the Fire Burning," Oct. 1, 2011).
The piece continues: "Declaring that sinning countries should suffer the consequences of their debt is not to bestow sacredness on financiers." Schauble insists that they are guilty for flagrantly using money to make more money without truly serving the real economy.
The Charlemagne column concludes: "For Germany there is much Schuld to go around. The proper response to financial sin is not through buying indulgences, but through repentance, faith in the tenets of financial stability and good works: pay down the debt, be righteous in your public finances, restrain the lust for higher wages and curb the greed of moneylenders. Only in this way can Europe avoid damnation."
On this issue the Germans are close to biblical teaching, with perhaps one or two reservations. King David of Israel wrote, "The wicked borrows and does not repay" (Psalm 37:21). This saying constitutes an apt admonition for debt-ridden governments and individuals today.
However, David qualifies his own judgment by further stating that "the righteous shows mercy and gives" (verse 21). There comes a time to extend a helping hand to someone in debt by being merciful, especially if the size of that debt threatens the welfare of others, be they private individuals or nations.
It's interesting to consider that Jesus Christ drew a comparison between sin and debt in the Sermon on the Mount - as wrongdoing demands the payment of a penalty. One of the petitions in what is called the Lord's Prayer asks God to "forgive us our debts, as we forgive our debtors" (Matthew 6:12). Luke's version says, "And forgive us our sins, for we also forgive everyone who is indebted to us" (Luke 11:4). This includes actual monetary debt - wherein the lender is wronged if not paid back.
A sound principle derived from the biblical year of release provides for the forgiveness of certain types of debt every seven years within the Israelite community. But the principle of debt forgiveness certainly applies across the board to all mankind.
The scale of the EU bailout is quite far from enough to deal with the enormous debt figures of countries like Spain and Italy, both of which are perched dangerously on the precipice. In British football (soccer) terms, it's like kicking the ball into the long grass where you can't find it for a while. Put another way, we'll deal with this problem mañana. But the gargantuan size of the problem makes it a train wreck waiting to happen. There is no magic bullet. In that sense Wolfgang Schauble is right.
The size of debts could be conceived of in former times. They were more tangible. But today debts are somewhat surreal - measured in electronic figures in computer databases, often with lots of zeros. We live in the time of cyberfinance. Our minds simply cannot begin to imagine debt measured in billions of dollars, much less trillions.
Yet sheer size does not negate consequences. Nor does it cancel out what the Scriptures plainly tell us. The apostle Paul wrote, "Do not be deceived, God is not mocked; for whatever a man sows, that he will also reap" (Galatians 6:7). Paul is speaking spiritually, but the simple principle of cause and effect applies to all aspects of life, including our financial affairs. Yet Paul stated earlier in the same chapter, "Bear one another's burdens, and so fulfill the law of Christ" (verse 2). There is a balance in understanding these matters.
The penalty for sin is not always immediate. King Solomon observed: "Because the sentence against an evil work is not executed speedily, therefore the heart of the sons of men is fully set in them to do evil. Though a sinner does evil a hundred times, and his days are prolonged, yet I surely know that it will be well with those who fear God, who fear before Him" (Ecclesiastes 8:11-12).
On an economic level we may persuade ourselves that sending "good" money after bad will somehow work out in the long run. We may even deceive ourselves into thinking that we can avert the consequences of our economic sins by simply printing more money. Maybe for a while.
But basic laws of economics remain universally true in spite of the ingenuity of man's incredible technological genius, now resident in our banking systems. In the climate of today's globalization of financial dealings, when the payment finally comes due and there is no way out, the consequences will be twice as tragic - sadly accompanied by much international, national and individual suffering.
The exact nature of the consequences we cannot predict with absolute accuracy. But clearly Europe could very well be headed for economic disaster - big time. Ultimately even Germany cannot save the EU from the inevitable penalties of vast overspending and an appalling lack of fiscal discipline. (Neither will America escape the consequences brought on by its enormous debt. A substantial downturn in Europe may even act as a trigger, partially causing the economic downfall of the United States.)
But why are these things happening now, and where is Europe headed? What does the Bible tell us?
The biblical books of Daniel and Revelation reveal what will eventually occur in Central Europe. An angel told the apostle John what will happen: "The ten horns which you see [in prophetic vision] are ten kings who have received no kingdom as yet, but they receive authority for one hour [a relatively short time in prophetic terms] as kings with the beast. These are of one mind and they will give their power and authority to the beast" (Revelation 17:12-13).
Now why would these nations do that? Today the individual countries of Europe are apparently becoming even more reluctant to continue to cede their sovereign powers to the European Union. Yet is it not probable that a horrendous financial depression could cause these same nations to look in desperation to a charismatic dictatorial personality for economic salvation? The Bible refers to such a ruler who is coming, as well as the empire he heads up, as "the beast." Runaway inflation and severe hardship in the Germany of the 1920s helped produced Hitler's Third Reich. Today newspapers in Britain are even starting to speak of a FourthReich.
A passage in the book of Daniel describes what we see in contemporary Europe, at least the beginnings of it. In the prophetic vision of a human form representing the succession of human empires, the ten toes, the final stage, are portrayed as part iron and part clay. So the final kingdom of man will be "partly strong and partly fragile"(Daniel 2:42). Iron does not mix well with clay (verse 43). Yet at the end of the day the Bible says that these diverse nations will put aside their national differences temporarily to astound the world. Adolf Hitler did pull Germany out of the Great Depression. His regime built the autobahnsand the Volkswagen, the people's car. The book of Revelation shows that the final union agreed to by 10 European leaders will produce a great economic empire in Europe.
The good news is that the Bible reveals that Jesus Christ will put an end to the reign of this Beast power. "The seventh angel sounded his trumpet, and there were loud [angelic] voices in heaven, which said: 'The kingdom of the world has become the kingdom of our Lord and of his Christ, and he will reign for ever and ever" (Revelation 11:15, New International Version). This occurs at His second coming.
These biblical prophecies are very real. They will happen in God's own time. However, a relatively short article simply cannot do justice to the whole panorama of prophetic fulfillment at the time of the end. To comprehend much more, please request our free booklets You Can Understand Bible Prophecy, The Book of Revelation Unveiledand Are We Living in the Time of the End?
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Keywords: Germany European economy financial laws debt guilt European debt fourth reich beast power
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