Prophecy Watch: The European Debt Crisis

Prophecy Watch: The European Debt Crisis

Prophecy Watch: The European Debt Crisis is an article that explains the consequences of a Grexit.

This past Sunday, Greece passed a resolution that said “no” to more austerity to get more debt relief. The problem is that Greece is out of money. In order to get more help, they will have to make more reforms, and tighten their belt. The problem for the Greeks is that their future is being dictated by richer creditor countries (like Germany). In the end, Greece will probably exit the Eurozone, and change its currency from the Euro to the drachma. (I wrote about this potential “Grexit” in other articles entitled: Prophecy Watch: Grexit  and Prophecy Watch: Grexit Explained.) Perhaps, Greece will go so far as to exit the European Union. If that were the case, they would be open to make whatever changes are necessary to help their desperate economic situation.

The problem is that all of the European Union countries are intertwined. What happens in one country will affect another. What happens to Greece could give incentive to Portugal, Spain, and Italy to also make the same referendums. These countries along with Greece could revolt economically and politically to the point that the European Union dream could dissolve. No one wants to see that happen. The economic chaos that could come as a result would be devastating for Europe as well as the entire world.

The problem with the European debt crisis is that the European Union developed a monetary policy, but not a fiscal policy. The difference between the two policies is made clear in the video below (which can be found here). The video may seem long. Yet, in twelve minutes it summarizes the problem and the potential solutions that can prevent a similar economic crisis from ruining the European Union. The video also shows how the European Union could truly end up becoming the United States of Europe.