Category: Global Economy

What comes next after economy falls

The economic crisis across Europe has made it clear that the European Union isn’t meeting today’s economic realities, a condition that promises to have a global impact on other economies, including that of the United States, according to a report from Joseph Farah’s G2 Bulletin.

The economic crisis is growing worse as central European bank lending to such countries as Italy, Greece and Spain now has dwindled to a trickle because investors are backing away from funding the region’s lenders.

There isn’t enough capital on hand to finance debt which is due to mature next year. Analysts believe there need to be dramatic changes in the structure of the EU if it is to survive.

They add that the EU is at the stage now where it needs to change to a more centralized parliament representing the respective members, who will have to give up some national sovereignty to create what amounts to a United States of Europe.

“The old EU is finished,” said one informed regional observer. “The 27-member bloc has never been as unpopular as it is today.”

As it now stands, the old EU is made up of countries whose parliaments can dictate the limits of their participation. They’ve seen how some countries in southern Europe with fewer resources and spiraling debt are forcing the more productive countries of northern Europe to help bail out the less fortunate ones, without any requirement for the southern countries to implement belt-tightening measures needed to help themselves recover from their own economic downturn.

As a consequence, the richer, northern countries such as Germany are dictating terms to such southern countries as Greece and Italy on belt-tightening measures needed to receive further bailout money.

Given the level of interdependence by countries now, it is too late to recede to a more isolated position. In fact, these experts say the thinking is toward “more Europe” with expanded powers and a “real government.” These analysts say that Europe today is where the U.S. was as a confederation prior to 1787 when the U.S. Constitution gave the U.S. a federal system.

Then, the confederation was comprised of 13 sovereign states with a Congress having certain powers in foreign affairs, to borrow money, deliver mail and control Indian affairs.

However, Congress then didn’t have the power to enforce its requests to states for money or troops until the 13 states ratified the U.S. Constitution.

Various analysts’ views are reflected in the concept put forward by Charles Grant of the Center for European Reform. He envisions a democratically united Europe in which citizens of the various countries vote directly for European commissioners, much like the U.S. does now in electing its representatives for the U.S. House of Representatives and Senate.

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Vatican Calls for Global Government

The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises.

A major document from the Vatican’s Justice and Peace department should be music to the ears of the “Occupy Wall Street” demonstrators and similar movements around the world who have protested against the economic downturn.

The 18-page document, “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was at times very specific, calling, for example, for taxation measures on financial transactions.

“The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence,” it said.

It condemned what it called “the idolatry of the market” as well as a “neo-liberal thinking” that it said looked exclusively at technical solutions to economic problems.

“In fact, the crisis has revealed behaviours like selfishness, collective greed and hoarding of goods on a great scale,” it said, adding that world economics needed an “ethic of solidarity” among rich and poor nations.

“If no solutions are found to the various forms of injustice, the negative effects that will follow on the social, political and economic level will be destined to create a climate of growing hostility and even violence, and ultimately undermine the very foundations of democratic institutions, even the ones considered most solid,” it said.

It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions.

Such an authority should start with the United Nations as its reference point but later become independent and be endowed with the power to see to it that developed countries were not allowed to wield “excessive power over the weaker countries”.

EFFECTIVE STRUCTURES

In a section explaining why the Vatican felt the reform of the global economy was necessary, the document said:

“In economic and financial matters, the most significant difficulties come from the lack of an effective set of structures that can guarantee, in addition to a system of governance, a system of government for the economy and international finance.”

It said the International Monetary Fund (IMF) no longer had the power or ability to stabilise world finance by regulating overall money supply and it was no longer able to watch “over the amount of credit risk taken on by the system.”

The world needed a “minimum shared body of rules to manage the global financial market” and “some form of global monetary management”.

“In fact, one can see an emerging requirement for a body that will carry out the functions of a kind of ‘central world bank’ that regulates the flow and system of monetary exchanges similar to the national central banks,” it said.

The document, which was being presented at a news conference later on Monday, acknowledged that such change would take years to put into place and was bound to encounter resistance.

“Of course, this transformation will be made at the cost of a gradual, balanced transfer of a part of each nation’s powers to a world authority and to regional authorities, but this is necessary at a time when the dynamism of human society and the economy and the progress of technology are transcending borders, which are in fact already very eroded in a globalised world.”

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Be Prepared

While it can mean many things to be prepared, this article I am attaching is talking about being prepared for a collapse of our and the world’s economy. While believers in Christ will be Raptured out beofre the Tribulation it does not mean that we will not experience tough times while we are still here occupying for our Lord.

So get your spiritual house in order, get your phyiscal house in order and be prepared. Do not be found like the 5 follosih virgins in Matthew 25 unprepared.

Enjoy the article. Keep looking up!

Like Chickens Running With Their Heads Cut Of1

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