Zero Hedge: The Ukraine conflict is taking a toll on the Euro-zone and it could result in finally pushing it over the edge. Everything flowing from Russia’s incursion poses a big negative for the region which is already struggling. When you couple soaring energy prices with stagnate growth and a growing trade balance with China you have the recipe for disaster. This is also apparent on the inflation front.
According to Reuters, the Euro-zone inflation rate surged to yet another record high in May. Inflation accelerated to 8.1% in May from 7.4% in April. A big part of the problem is that it is no longer just energy pulling up the headline figure. Looking past the headline figure, we find excluding food and energy prices, inflation rose to 4.4% year-on-year from 3.9%. This puts pressure on the European Central Bank to increase rates further. The timing of such a move is horrible in that Europe’s dust-up with Russia has brought to the forefront just how weak Europe is.
Lurking in the background is the strong possibility that the Ukraine conflict will drag on and Russia could completely cut off gas to Europe. Currently, it appears Russia intends to keep Europe from filling storage, this will substantially increase Russia’s leverage in the winter months. Already talks of gas rationing are being floated if we see further cuts to Russian gas supplies. In the past three months, Russia cut off supply to several European countries that refused to pay for gas in rubles and has also substantially reduced the flow through the Nord Stream. This has cut off supplies to France and reduced flows to Germany by some 60 percent.
With inflation running at 4 times the ECB’s 2% target, ECB policymakers are facing the toxic mix of raising rates at the same time the economy is shifting into reverse. The choice between galloping inflation, and political instability due to economic misery, is difficult. Hoping to tame inflation and thread the needle, ECB President Christine Lagarde is moving to raise rates. Some policymakers and economists doubt small moves will be enough, especially since underlying inflation is showing no signs of abating.
Due to supply chain problems following the pandemic, then as a result of Russia’s war in Ukraine, prices have been soaring across Europe. Read More …
Opinion: The last time Europe had a complete economic meltdown was 1933. The outcome set the stage for future prophecy. To see how, we go to Daniel 9:26.
“And after the sixty-two weeks
Messiah shall be cut off, but not for Himself;
And the people of the prince who is to come
Shall destroy the city and the sanctuary.
The end of it shall be with a flood”
That the people of the prince who is to come (Antichrist), will have destroyed the city (Jerusalem) and the sanctuary (Temple) clearly points to Rome’s invasion of Jerusalem in AD 70.
Rome, not coincidentally, is also the seat of the Vatican, the world’s largest Christian denomination, and the likely residence of a powerful religious leader called the False Prophet (Rev. 13:11).
And out of revived Rome (Europe), the final Hitler will come.
A lesson from history, Adolf Hitler rises out of economic chaos:
Germany’s Weimar Republic, (1919 to 1933), fell into hyperinflation after World War I. In October 1923, German prices rose at the rate of 41 percent per day. Starving Germans eventually brought in Adolf Hitler, as a savior for the economy.
Adolf Hitler was elected Chancellor of Germany in 1933. In the same way, Antichrist will rise previously unheard of power out of the Revived Roman Empire after wars (Rev. 6:3-4) severe hyperinflation (Rev. 6:5-6) and massive death (Rev. 6:7-8), leaving a clueless world to suffer 21 Judgments leading to the second coming of the Savior (Revelation 19:11-16)
Daniel 9:26 is one of 4 verses (vs. 24-27) that gives us a 490 year period of history that is so packed with prophecy that many Christians and Jews find difficult to grasp. See Daniel’s 70 Weeks in Bible Prophecy 101 Chapter 5 HERE