Undoubtedly, you’ve heard about Greece’s insolvency. It was reported in late May of this year that Greece had no way to pay its debtors in June without some form of settlement.
Most of Europe became monetarily incestuous in 1999 when it created a region-wide currency called the Euro. The problems have been endless for the Greek people since the 2008 global financial crisis, because of Greece’s massive levels of government debt. As a result the country spiraled into a Depression, and its instability jeopardizes the solvency of all of Europe. Remember, the Euro is the second largest reserve currency in the world.
In 2008 when Congress defied the will of the people and bailed out the “too big to fail banks,” vocally adamant groups like the Tea Party and Occupy Wall Street took their first gasps of breath. These groups were largely a reaction to the government giving billions of dollars to large corporations and banks. The government noticed this disdain and began conspiring to have “bail-ins” instead of bailouts.
The IMF, which is the world bank of the world, has already stated that it recommends banks imposing a ten percent tax on all depositors now. In bank bail-ins, banks will take money out of depositor’s accounts to stabilize themselves. It’s a fact that when you deposit money in a bank you are an unsecured lender to the bank. You and I are last in line to get our deposited funds when a bank goes out of business.
The European Commission has ordered eleven countries to either form a Bank Recovery and Resolution Directive or answer for not doing so before the EU Court of Justice. These directives are needed to bail-in Greece. Europe faltering is seen as a macro-problematic crisis with the potential to further destabilize large sections of the world.
Europe is not much different than the United States. High levels of government spending necessarily cause instability. Proverbs 22:7 states, “The rich ruleth over the poor, and the borrower is servant to the lender.” America has been the borrower, much like Europe, and the probability of America becoming a servant to the lender is growing.