Fulfilled Prophecy #13 – latest on EU’s financial shaking

Let’s look once again at ongoing indicators for the fulfillment of the prophetic word given just over 3 years ago on the fall of the EU (UK/EU In/Out #4 refers).

In the knowledge that the European Parliament in Strasbourg is built in honour of the Tower of Babel (UK/EU In/Out #2 – Significant Spiritual Signs),  ‘ML’ noticed an ‘interesting turn of phrase’ in an email of last week on financial affairs, in which it states (emphasis mine):

“The unbridled money printing by central banks… the negative interest rates… the colossal levels of debt worldwide… they’ve built a tower of Babel in the global economy. “

GERMANY

In No-deal Brexit risks a rude economic shock for Germany and fragile Eurozone the  Telegraph’s international business editor Ambrose Evans-Pritchard, is of the opinion,

There is no such thing as Theresa May’s Brexit deal. The Withdrawal Agreement is merely a legal contract to pay £39bn, with the Irish back-stop for good measure. In exchange, Britain secures a transition phase with no veto rights, bound to accept all fresh EU law even when it threatens the national interest. On payment of the exit fee we also secure the ‘privilege’ of starting talks on a deal. The terms of that deal must be agreed by all 27 EU states (unlike the Withdrawal Agreement)…’ (emphasis mine).

Here’s a few extracts of his, as ever, noteworthy in-depth analysis:

‘…The EU’s own circumstances have deteriorated dramatically over the last year. This matters. The first ‘recession’ casualties of Brexit have been Germany and Italy, not Britain, mirabile dictu. [ie. wonderful to say]…

‘…For the last two years Germany’s industrial lobbies have adopted a dismissive tone on Brexit, deeming it a sad spectacle of economic self-harm, with minor implications for them. They would not rescue Brexiteers by pushing for a friendly market deal. The integrity of the EU project matters more.  It has not been hard to keep up this mantra. The British government has yielded at each stage. What Deutschland Inc was not expecting is that Parliament might block the Withdrawal Agreement altogether, leading to a hard Brexit by default…

‘…Germany is being hit by multiple shocks, but Brexit is clearly one of them. The much-needed fall in sterling has clipped German imports and led to import substitution at the margin.  The current account deficit has improved markedly when adjusted for full-employment (the relevant metric)…

He concludes, ‘My fear is that Berlin will try to head off this threat by offering Theresa May just enough legal pomade on the Irish back-stop to slide the Withdrawal Agreement through Parliament, without really changing the substance.’

POLAND

Also in an interview reported yesterday, Poland’s Prime Minister Mateusz Morawiecki  criticised senior EU officials over their “unfortunate behaviour” at last week’s Brussels summit, calling on European leaders to help our PM to navigate the “storm” of Brexit.

Poland has repeatedly spoken up on behalf of Mrs May in the Brexit talks, but has stopped short of breaking ranks with the EU on its red lines, such as the integrity of the single market and the Irish backstop. Warsaw shares London’s wariness of the EU’s push towards deeper integration (and eventual) pressure on the country to replace the zloty with the euro…

‘Whereas some EU leaders have poured scorn on Mrs May’s Brexit proposals, such as the Chequers plan, Polish officials have been impressed by the Prime Minister’s firmness on her red lines, in particular on stopping vast payments to the EU and ending the jurisdiction of EU courts.

“There were some hardline politics on both sides of the table during the negotiations, but finally a compromise was reached. Mrs May made a huge effort, and the Withdrawal Agreement is the best possible outcome that could have been achieved,” Mr Morawiecki said.’

It was only 6 weeks ago when Donald Tusk, President of the European Council, warned that “Poland could accidentally(!) leave the EU” – PolExit! (Update on Leaderless EU).

FRANCE – ITALY

Ambrose writes (11 Dec) ‘Emmanuel Macron’s bid to buy off France’s “gilets jaunes” protesters with instant budget handouts threatens to blast through eurozone’s fiscal limits, fatally damaging his credibility as the champion of the European project and the guardian of French public accounts.

‘The package of short-term measures announced in a theatrical mea culpa on Monday night leaves President Macron’s putative “grand bargain” with Germany in tatters…

‘..The new measures will leave France with a bigger budget deficit than Italy’s on every key measure, putting Brussels in a delicate position as it prepares sanctions against the rebel Lega-Five Star coalition in Rome…’ (Macron’s credibility shattered as France joins Italy in budget disgrace).

The EU is not all it’s cracked up to be as its cracks keep spreading and widening!

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2 thoughts on “Fulfilled Prophecy #13 – latest on EU’s financial shaking

  1. It’s worth reading this article on Italy as the next threat to the Eurozone at mises.org: https://mises.org/wire/italy-brewing-storm-within-eu

    Italy has threatened to pull out of the EU and recreate its own currency if the EU calls on it to cross a red line. The Italian finances are a mess generally and there is still the problem of QE losing its ability to fight the fundamental systemic problems of modern banking.

    Liked by 1 person

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