Portugal edges closer to crisis

The situation in the European Union has been on the slow burner of late, but that doesn't mean that all is well.  In fact it is quite the opposite.  Greek debt has now been downgraded below junk bond status, as the Greek bailout of a few months back seems to have been fumbled away by the Greeks.  Now Portugal is being forced to increase the yields on their debt to higher and higher levels to attract buyers.  This can't and won't go on forever.  One broker has now said that the euro is a car crash waiting to happen, and Portugal may be the wreck that causes the pileup.

With all that is happening in the middle-east, and the potential for greatly increased oil prices, the possibility of economic chaos in the European Union has never been greater.  We have mentioned before that it is our belief that a global economic collapse is coming, and a reformed European Union will be the catalyst to a new global economic world order.  Bible prophecy tells us that an end-time economic empire will arise, (what we believe will be a European Super state), from which the tentacles will spread world wide into 10 Kingdoms, (economic zones), holding power for a brief period of time.

“He gave me this explanation: ‘The fourth beast is a fourth kingdom that will appear on earth. It will be different from all the other kingdoms and will devour the whole earth, trampling it down and crushing it. The ten horns are ten kings who will come from this kingdom. Daniel 7:23-24 NIV

“The ten horns you saw are ten kings who have not yet received a kingdom, but who for one hour will receive authority as kings along with the beast. They have one purpose and will give their power and authority to the beast. Revelation 17:12-13 NIV

From the articles:

"Some of the big holders of Portugal, Ireland and Greek paper are the banks, and the banks are in the core. Everyone is exposed to everyone else. That's why this problem is so intractable, and it's not in anyone's interests for anyone to default."  "I think this could potentially be a very tricky month for the euro - it's a car crash waiting to happen," says Michael Derks of foreign exchange broker FxPro. "I think Portugal is weeks away, and I think Portugal will be the trigger."

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Greece launched a tirade against credit ratings agencies Monday after Moody's downgraded its debt grade further below junk status, warning the bailed-out euro country might have to default on its massive borrowings. The agency slashed its rating by three notches to B1 from Ba1 and warned it may cut again if the government's commitment to austerity wanes or international creditors become less willing to support it - Greece was saved from bankruptcy last May after accepting a euro110 billion ($154 billion) bailout from the EU and the International Monetary Fund.

Portugal edges closer to crisis

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10710543

Greece slams rating agencies after Moody's cut

http://hosted.ap.org/dynamic/stories/E/EU_GREECE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-03-07-07-43-14