European Debt Crisis and Inflation Scare

Steven LeBlanc

Europe is on a course to print more money in effort to save the European Union from fracturing. This may ease the worries of the world financial markets in the short term, but the long-term consequences of such actions are frightening. Printing more money most likely will lead to high rates of inflation in the near future.

Printing more Euros is not a long term solution to the European Debt crisis, but that is what the European Central Bank is proposing in order to avert a panic among Eurozone countries; there is also the belief that taking on more debt in the short run will help the Union ‘live another day’ enabling it to resolve its financial problems over the long run.

The European Central Bank’s (ECB) announcement late last week, that it would buy sovereign bonds to ease the euro zone debt crisis, this move has boosted confidence that the European monetary crisis may be easing, at least in the short term. The news catapulted the U.S. stock market to hit a new 52-week high.

The ECB President Mario Draghi said the central bank would buy bonds with maturities of up to three years of troubled Eurozone countries if the ailing country in need of help agreed to strict conditions to put their financial house in order. This means the European Central Bank tells the specific nation needing help, if you submit yourself to our authority we will serve as the Bank that buys your short-term debt. But of course this means printing more money and incurring even more debt.

The Wall Street Journal Reports (Stocks Cheer Stimulus—For Now)—by E.S. Browning and Matt Phillips—September 6, 2012:

Since 2009, four central banks—the Fed, the ECB, the Bank of England and the Bank of Japan—have injected more than $3.9 trillion in largely new money into the world’s financial system, according to data compiled by J.P. Morgan Chase economic research. The banks used that money to buy financial assets such as government bonds as a means of pushing up asset prices and pushing down the cost of credit.

Many observers of this ‘enthusiasm for printing money’ wonder when inflation will kick in. The famed investors, John Paulson and George Soros are investing significant sums of their portfolios into gold—they believe it is just a matter of time before inflation flares. Investing guru Jim Rogers is heavily invested in commodities including gold. The price of gold is believed to rise when goods and services demand higher prices.

German Bundesbank officials are very much against the Central Bank intervention, stating that printing more money could trigger shocking inflation once the economy rebounds. Germany has the most to lose from this printing more money solution because it is the largest backer of the European Central Bank.

Europe is in crisis so it may be hard to believe that a European power will one day become the great political, economic and military force in the world. But that is what prophecy tells us will take place. A European “Beast” power will dominate the world agenda and become the world’s most powerful economic force. All nations will be impacted by this end-time super-state. America will decline in power as Europe rises in power (see our booklet the United States and Britain in Prophecy)

This powerful political, religious and economic system is mentioned in the book of Revelation. It will rise and enjoy great trading partnerships, but then it is to be destroyed by Jesus Christ when He returns. This destroyed economic system of the Beast (end-time European power) is eulogized in a funeral lament in Revelation 18. It is revealed that the merchants of the earth have waxed rich through trade with this economic power (Revelation 18:2-3,15). Notice what is says of her downfall in Revelation 18:17-19 when Christ dismantles the Beast Empire:

“And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off, and cried when they saw the smoke of her burning, saying, What city is like unto this great city! And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas, that great city, wherein were made rich all that had ships in the sea by reason of her costliness!”

Keep watching Europe—it will impact the whole world economy. Great changes in Europe are yet to take place.

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