I’m sure readers in all nations are well aware of the worsening financial crisis involving the now-imminent default of Greece on its debts to its creditors and the ensuing chaos that is spreading throughout Europe and the world as a result of this fact. This is so well reported that I see little need to discuss much about the details of what is happening. Greece has been negotiating with a group of negotiators from the IMF, the EU and the Big Banks who are Greece’s creditors to try and reach an agreement that would resolve the crisis and keep Greece in the Eurozone. The “happy talk” establishment financial media has been wrong all week. They periodically reported a deal was “imminent,” and then when a deal proved to be unobtainable, the financial “happy talk” party line was that the Greek situation wouldn’t affect global markets that much. They were wrong again. In a moment I’ll offer my theory on why the global markets are in such an unexpectedly-large state of chaos as a result of the Greek situation. Hard times have come to Greece. The banks closed and will stay closed for approximately a week. The Greek stock market shut down. Greek citizens are limited to an ATM withdraw of only 60 Euros a day…if they can find an ATM that has any currency to dispense.
The first two links [1, 2] report on the facts of the Greek rejection of the terms offered by the IMF and other Greek creditors. Greek Prime Minister Tsipras gave the global financial entities a major surprise when he called a snap referendum on the IMF’s terms which would let the Greek citizens decide whether to accept the IMF/EU/Big Bank offer or not. Global markets reacted with fear. The failure of the Greek-Creditor negotiations and the calling of a Greek referendum powerfully roiled Wall Street. The third link reports the Dow Jones Average in the USA had its worst sell-off of the year. The crisis was also noticed on the other side of the planet from Europe as China’s Premier called for a solution to the problem and for an agreement to be reached that would keep Greece in the Eurozone (fourth link).
Now I’ll offer my theory re: why the Greek financial crisis roiled the global markets more than the financial media expected. The financial world has seen sovereign defaults before. What usually happens is the IMF steps in and imposes a deal on the bankrupt nation’s government and banking system and then life moves on for the investment community while the indebted nation is left to suffer. These deals are made in back rooms where only the powerful elites have any voice. That is how the elites like things to happen. However, the Greek Prime Minister surprised them. He didn’t make any of the usual back-room deals that would indenture his nation to indefinite economic servitude according to the desires of the international lending community. Instead, he refused to make any deal with the creditors. He decided to explain the offered deal to the Greek citizens and let them decide their own future regarding which course of action they wanted to take. Prime Minister Tsipras also urged his nation’s voters to vote “No” on the referendum. According to many media accounts I’ve read (or heard on cable-TV news), the creditor bloc was stunned by this surprise action by Tsipras. I think the last thing the creditor bloc wants is to have any precedent set that the people of a bankrupt nation will have the last say on what course of action they take.
I believe Tsipras and the Greeks have figured out what is happening. If the IMF loans money to Greece and Greece then pays off loans to Big Banks with that money from the IMF, it means Greece is simply being used as a “pass-through” for the IMF to send money to the Big Banks. Why doesn’t the IMF simply send the money directly to the Big Banks rather than route it through Greece? That would not serve the interests of the Big Banks. By routing the money to the Greek nation packaged as a new “loan,” it inflates the Greek debt burden without offering the Greek people any actual help when that money gets forwarded by Greece to the Big Banks. On one cable channel tonight, I noticed one sign in a sea of protesters that read “Jails for Euro Bankers.” That shows the depth of Greek rage at the IMF and European banking community. Keep in mind that there is also a “wild card” in this crisis that has received scant media attention. During the midst of the Greek negotiations with the IMF and other creditors, Greek Prime Minister Tsipras flew to Russia for a friendly meeting with Vladimir Putin. What deals were made remains secret. However, that key meeting between Tsipras and Putin makes the Russian leader a largely hidden but important player in these negotiations and their outcome.
I think that the global financial markets tumbled so badly because this Greek tragedy is unfolding in a way where it reveals the IMF is losing control of its ability to control financial crises and impose a banker-approved solution for each major crisis. Having the people of indebted nations make the decision on their own financial future and not allowing the IMF to impose a solution introduces great uncertainties into global financial markets and troubles undermines the power of the banking elites. In short, the IMF insisted on imposing a solution on Greece, and Greece told the IMF to “take a hike.” I think global markets are very afraid that the Greek referendum will set a precedent for future bankrupt nations to emulate. Future bankrupt or heavily-indebted nations may also choose to ignore the IMF’s imposed banker solutions and, instead, let their people decide their own financial destiny. The fact that Greece opted for a referendum cuts the Big Bankers out of the decision-making loop on how to resolve the crisis. I think this shocks them and it sent a wave of fear through global investment markets.
From a biblical perspective, we are seeing steadily-more instability being introduced into the global financial/monetary/banking system. The system almost collapsed globally in 2008, and one does wonder how long this teetering global financial system can hang on before some triggering event sets off a cascading series of market collapses that cannot be reversed. As I’ve noted in many previous posts, Revelation 17-18 foretells the current global financial system will collapse at some point in the latter day period of time. Revelation 17-18 calls the modern financial system “Babylon the Great” or “The Great Whore.” Revelation 17:9-18 reveals that an alliance of global nations or entities will coordinate a financial/monetary attack vs. the current global financial system to deliberately collapse it at some point. This rebel alliance is called “the seven heads and ten horns” and future events will reveal who or what they are. Revelation 17:16 prophesies the collapse of the current global system will be a very hard one. The language of that verse says: “And the ten horns…these shall hate the whore, and shall make her desolate and naked and shall eat her flesh and burn her with fire.” That sounds like they are going to overthrow the current system with “extreme prejudice” and set up a new global order which Revelation 17 calls a new “beast” system. Revelation 13:1-5 reveals that this beast system will be in power for a mere 42 months before Jesus Christ returns and annihilates the beast system (Revelation 19:11-20:4). As usual, I make no predictions regarding dates when these prophecies will be fulfilled or what will be the trigger which causes them to be fulfilled. It is my personal opinion that the seven heads and ten horns are already coordinating their actions for this global “re-set” and that their plans are well under way already. We are drawing steadily closer to the fulfillment of major biblical prophecies.
Current world leaders have forgotten that the Creator God is the biggest “player” in world geopolitics. They will be stunned when they experience his power in mankind’s affairs as he fulfills his prophecies.