A fresh "train wreck" may be coming in the u.s. Mortgage market as rates reset upwards in September. The euro is on the brink of collapse. Investors are dumping the currency, as well as stocks, and rushing to infation-proof havens like gold. The German chancellor, Angela Merkel, recently admitted the bailout does little more than "buy time" for the european union.
A fresh "train wreck" may be coming in the u.s. Mortgage market as rates reset upwards in September. The euro is on the brink of collapse. Investors are dumping the currency, as well as stocks, and rushing to infation-proof havens like gold. The German chancellor, Angela Merkel, recently admitted the bailout does little more than "buy time" for the european union.
A fresh "train wreck" may be coming in the u.s. Mortgage market as rates reset upwards in September. The euro is on the brink of collapse. Investors are dumping the currency, as well as stocks, and rushing to infation-proof havens like gold. The German chancellor, Angela Merkel, recently admitted the bailout does little more than "buy time" for the european union.
A DIGEST OF SIGNIFICANT WORLD NEWS FROM THE PHILADELPHIA TRUMPET STAFF FOR THE WEEK OF MAY 16-22, 2010
Benedict XVI has
repeatedly afrmed a pressing need for a renewed commitment of Catholic in political life. Without having been asked their opinion, 440 million Europeans have just joined a new country. Im here to tell you that you are wrong. We all are. Were in denial. A fresh train wreck may be coming in the U.S. mortgage market as rates on a wave of option ARM contracts reset upwards in September. This is not just an America in decline. This is an America in retreat. E urope is in chaos. The euro is on the brink of collapse. Investors are dumping the currency, as well as stocks, and rushing to infation-proof havens like gold. Greece is up to its ears in debt and cant pay it back. Its citi- zens are taking to the streets in violent protest against any austerity measures intended to roll back benefts. Other European nations are now threatening to pull out of the eurozone. The trillion-dollar rescue package has done little to ease the panic spreading across the Continent. The German chancellor, Angela Merkel, recently admitted the bailout does little more than buy time for the European Union. Yet, on Tuesday, Chancellor Merkel urged German lawmak- ers to accept Germanys share of the rescue package. The euro is in danger, she said. If we do not avert this danger, then the consequences for Europe are incalculable, and then the consequences beyond Europe are incalculable. The German people, meanwhile, are dead-set against the thought of Germany being responsible for nursing the EUs sick members back to health. This has some wonder- ing if Merkels government will survive the crisis. Once hailed as the undisputed queen of Europe, the Times of London recently wrote, the chancellor is facing increasing criticism that she is dithering just when decisive leader- ship is needed (emphasis mine). The sure word of prophecy reveals that decisive German- ic leadership is coming. In fact, thats the biggest storyline now developing behind the scenes of the current fnancial crisis. It hasnt yet made newspaper headlines, but like so many of the events now making news in Europe, we have been forecasting it for decades. As early as 1952, Herbert W. Armstrong said a revived Germany would become the heart and core of the united Europe. Today, Germany is the undisputed king of a united Europe. Yes, at present, its an oversized union of disparate parts grappling to solve an economic crisis. But somewhere behind the scenes, there is a strongman who sees this crisis as an opportunity to galvanize the German people and cut down the European Union into a much stronger, more manageable consortium of ten kings. Its all prophesied in the Bible! In fact, the current economic crisis is only hastening its fulfllment. Mr. Arm- strong accurately predicted this as well. In July 1984, he said a world economic crisis would be the trigger that accelerates the formation of a German-led, European superpower. Even European history attests to the fact that an author- itarian strong man often needs a crisis to impose his will on Europeand the rest of the world. Germany, from the beginning of the European experi- ment, has been preparing for this very crisis. Go back and read what we reported in September 2002, when the fedgling euro had just been introduced as the eurozones common currency. Back then, Trumpet columnist Ron Fra- ser alerted our readers to a likely spike in gold prices, which was then selling at about $300 per ounce. At the time, he wrote, the United States and Canada were busy liquidating their gold reserves. Germany, on the other hand, was an active buyer in the gold market. Added to this, Mr. Fraser noted, every member of the new eurozone had signed over its gold reserves to the Eu- ropean Central Bank in Frankfurt. Thus, whether the euro succeeded or not, Germany would be in the drivers seat, Mr. Fraser said. He then made this astounding statement: If an economic crisis in Europe does bring failure to the system that supports the fedgling euro, then it will be up to Germany to suggest the solutions. That was in 2002. In 2008, after the failure of American banks triggered a global fnancial meltdown, we warned that the European economy was following a similar path. European leaders have been waiting for years for just such an economic crisis, Robert Morley wrote. A crisis of this magnitude allows them to sweep away national sovereign- ties and consolidate power for the greater good. Then, when rioting broke out in Greece later that year, in December 2008, we wrote that it was sure to get worse and that Germany had been planning for this very economic crisis long before it even adopted the euro. The crisis in Greece is a forerunner of a whole rash of similar crises set to soon break out across Europe, Richard Palmer wrote. They will provide the catalyst for the EUs leading nation, Germany, to rise to the fore with solutions of its own mak- ing to such crises. Now look at where we areand prepare for whats com- ing! On Tuesday, in the same speech she used to get Ger- man lawmakers on board with the bailout package, Chan- cellor Merkel also said Europe needed an agreement under which, as a last resort, its possible to exclude a country europe in crisis see CRISIS page 10 STEPHEN FLURRY COLUMNIST Middle east I ran agreed Monday to a nuclear fuel swap on Turkish territory. Iran, Brazil and Turkey signed the deal during a trilateral meeting on the side- lines of a G-15 summit in Tehran. The Group of 15 was formed in 1989 to pursue economic coopera- tion among develop- ing nations and now contains 17 countries. Under the proposal, Iran would ship more than half of its low-enriched uranium to Turkey in exchange for nuclear fuel for a research reac- tor, but would not be required to freeze uranium enrichment. In the long term, the agreement could bring Iran to at least being a nuclear threshold state, leaving it at a good jumping-off point toward nuclear capability, Haaretz.com reports (May 18). Iran backed out of a similar deal proposed by world powers last October, and could easily walk away from this deal as well. Washington reacted skeptically to the agreement, which strengthens Tehrans negotiating power against the U.S. The following day, Russia and China reportedly agreed on a UN Security Council draft resolution that would impose a fourth set of sanctions on Iran over its nuclear program. Russia, however, is far from enthusiastic about the move. In reference to the agreement Iran made the previous day, a Russian Foreign Ministry offcial said, Our position is, give them another chance. We should take into account this demonstration of readiness by Iran. Even if the resolution is approved, however, it is hardly likely to dissuade Tehran from enriching uranium. The sanctions, which mainly expand current measures, would be fairly bland, according to Stratfor (May 18). The draft resolution does not ad- dress energy trade, which Irans economy is dependent upon. GUARDIAN | May 16 taliban: the indistinguishable enemy T hey may be repressive fanatics who enslave women and give sanc- tuary to al Qaeda, but the U.S.-led occupation of Afghanistan has transformed the Taliban into Pashtun freedom fghters. There are two principal reasons for this. First, despite our best attempts, the foreign troops and the state they prop up are viewed as outsiders who have come not to liberate the country but subjugate it. Second armies, by their very nature, must intimidate and coerce the population into accepting their authority. Despite the talk of winning hearts and minds and civilian surges, much of what we do in Afghanistan creates fear and hostility. As to the frst point, the sense of subjugation by foreign powers is exacerbated by the Karzai administrations inability to provide effective governance. Why should we expect a regime built on foreign military intervention and local warlords to have popular support? Locked in understandable revulsion towards the Taliban, the U.S. and its allies THE TRUMPET WEEKLY May 22, 2010 2 ATTA KENARE/AFP/GETTY IMAGES the fruits of Weakness it is perfectly obvious that Irans latest urani- um maneuver, brokered by Brazil and Turkey, is a ruse. It will, however, make meaningful sanctions more diffcult. Americas proposed Security Council resolution is already laugh- ably weak. Yet Turkey and Brazilboth cur- rent members of the Security Councilare so opposed to sanctions that they will not even discuss the resolution. And China will now have a new excuse to weaken it further. But the deeper meaning of the uranium- export stunt is the brazenness with which Brazil and Turkey gave cover to the mullahs nuclear ambitions and deliberately under- mined U.S. efforts to curb Irans program. The real news is that already notorious photo: the president of Brazil, our largest ally in Lat- in America, and the prime minister of Turkey, for more than half a century the Muslim anchor of nato, raising hands together with Mahmoud Ahmadinejad, the most virulently anti-American leader in the world. That picturea defant, triumphant take- that-Uncle-Samis a crushing verdict on the Obama foreign policy. It demonstrates how rising powers, traditional American allies, having watched this administration in action, have decided that theres no cost in lining up with Americas enemies and no proft in lining up with a U.S. president given to apologies and appeasement. Theyve watched President Obamas humiliating attempts to appease Iran . Theyve watched America acquiesce to Rus- sias re-exerting sway over Eastern Europe . Theyve watched our appeasement of Syria, Irans agent in the Arab Levant . Theyve observed the administrations gratuitous slap at Britain over the Falklands . And in Latin America, they see not, just U.S. passivity as Venezuelas Hugo Chavez organizes his anti-American Bolivarian coalition while deepening military and com- mercial ties with Iran and Russia. They saw active U.S. support in Honduras for a pro- Chavez would-be dictator seeking unconsti- tutional powers in defance of the democratic institutions of that country. This is not just an America in decline. This is an America in retreataccepting, ratifying and declaring its decline, and invit- ing rising powers to fll the vacuum. Given Obamas policies and principles, Turkey and Brazil are acting rationally. Theres noth- ing to fear from Obama, and everything to gain by ingratiating yourself with Americas rising adversaries. After all, they actually believe in helping ones friends and punish- ing ones enemies. WASHINGTON POST, CHARLES KRAUTHAMMER | MAY 21 Leaders of Brazil, Iran and Turkey raise their hands after the Islamic republic inked a nuclear fuel swap deal in Tehran. THE TRUMPET WEEKLY May 22, 2010 3 forgot they had to offer a better alternative. Although harsh and primitive, the insurgency has gained a reputa- tion for speedy justice that is juxtaposed against the Western-backed Karzai regimes endemic corruption. REUTERS | May 18 u.s. Wants to Build up Hezbollah moderates T he obama administration is looking for ways to build up moderate elements within the Lebanese Hezbollah guerrilla movement and to diminish the infuence of hard-liners, a top White House offcial said on Tuesday. John Brennan, assistant to the president for homeland security and counterterrorism, met with Lebanese leaders during a recent visit. Hezbollah is a very interesting organization, Brennan told a Washington conference, citing its evolution from purely a terrorist organization to a militia to an organization that now has members within the parliament and the cabinet. There is certainly the elements of Hezbollah that are truly a concern to us what theyre doing. And what we need to do is to fnd ways to diminish their infuence within the organization and to try to build up the more moderate elements, Brennan said. He did not spell out how Washington hoped to promote moderate elements given that the organization is branded a foreign terrorist organization by the United States. YNET NEWS | May 20 iran says can destroy israel in Week M ahmoud ahmadinejads chief of staff, Esfandiar Rahim Mashaei, said Wednesday that if Israel attacked Iran it would be de- stroyed within a week. Speaking at a political conference of ultra-conservatives in Irans north, Mashaei said, If the Zionist regime attacks Iran, the Zionists will have no longer than a week to live. The semi-offcial Fars news agency quoted him as saying that the Islamic Republic would destroy Israel in less than 10 days. Mashaei, who was also formerly a vice president, added that new sanctions to be im- posed on Iran for its nuclear program would only harm Western countries. The statesman is considered a close affliate of the Iranian president and has previously caused a stir by saying that Iran was a friend of the Israeli people. He later retracted this statement and issued a contrary one saying Israel should be destroyed. europe T he euro, and therefore the whole EU, is on the brink of collapse, German Chancellor Angela Merkel told the German parliament on May 19. She announced a unilateral ban on risky trading practices, Who really did Win World War ii? one could be forgiven for asking who really won World War II, and what it really achieved. Today, the British offer a sad refection of the strength of leader- ship, pride in national power and the level of will- ing public sacrifce which, together with the support of their Ameri- can brother nation, combined against the most terrible odds to lick the enemy 65 years ago. This year on May 8 when the British people celebrated VE Day, they did so un- der a situation of a hung Parliament, truly a witness to the dearth of statesmanlike, Churchillian leadership evident in the ranks of elites in Britain today. At the same time that the British were remembering their victory over Nazi tyranny, the same spirit that drove the Nazi imperialist dream was at work in the minds of those who were busy behind closed doors fguring out a plan that will accelerate the achievement of the dream that Hitler and Kaiser Wilhelm had both possessed: a European continent united under Berlins control. Their emergency closed-door session ended with the very bank that Hitler had used to effect massive transfers of Nazi wealth inter- nationallythe Bank of International Settlementsonce again being handed a similar power. The reality is that the power that the nation of Germany has won either direct- ly or via its dominance of the EU courtesy of the global fnancial crisiswhich began in September 2008 with the subprime mortgage meltdown in America and recently consummated with the sovereign debt fasco in Europeis mind-blowing to say the least. And its all happened within barely 18 months! The European Central Bank, the G-20, the Financial Stability Board and the Bank of International Settlements have all shown over this period that they now dance to Germanys tune! At this very mo- ment, the future of the European Union, the worlds single largest trading bloc, is very obviously in Germanys hands. The greatest single lack in Germany today is political leadership. Watch for Angela Merkels fall to consummate with the rise of the leader who will seize this opportunity to propel Germany to domi- nance of the Western world!
RON FRASER | COLUMNIST THE TRUMPET WEEKLY May 22, 2010 4 including short-sellingessentially betting that the price of a stock will go downon Germanys most important stocks. The move triggered panic over the future of the euro: Shares in London, Paris, Berlin and Madrid all fell by about 3 percent, and the euro fell to its lowest-ever value, though it made a slight recovery shortly after. Similar to other past crises, the situation has the fngerprints of a German-engineered crisis that will result in a German-engineered solution. In another move to use the euro crisis to its own advantage, Merkel, along with German Finance Minister Wolfgang Schuble, said to fnan- cial ministers and offcials from around the world that stricter fnancial regulation was needed. Let us send a common signal, she said on May 20, stating that we need stricter rules. Germany and the Palestinian Authority (PA) began the new German-Palestinian Steering Committee on May 18. This high-level partnership is Germanys latest attempt to get involved in the Middle East peace process. German Foreign Minister Guido Westerwelle met with Salam Fayyad, prime minister of the PA. At the same time, the education, economy, interior and development ministers from the two cabinets met. The steering committee is set to meet once a yearin a similar fashion to the regular joint cabinet meetings that Germany holds with Israel. Westerwelle also announced that Germany would be giving the PA $62 million in aid. Watch for Germany to get more involved in the peace process. BRAD MACDONALD | Columnist now imminent: Britains exodus from europe I s it a coincidence that just as Europe was ap- proaching fnancial meltdown, Britain was bogged down in a post-election leadership crisis. General elections in Britain took place May 6, but it took till May 11 before a clear-cut victor emerged to take Britains helm. During the four days in which the UK was essentially headless, events of terrifc magnitude unfolded in Europe. On May 10, with British politics in complete dis- array, the German-led European Union announced its 750 eurozone bailout, which inevitably will equip Germany with greater fnancial and political control over Europe! When you think on the news of Europes fnancial crisis over the last two weeks, what personalities come to mind? French President Nico- las Sarkozy dominated the headlines; so did Angela Merkel and Greek President Karolos Papoulias, as well as personalities from the Europe- an Central Bank and the International Monetary Fund. Even President Barack Obama made the front page. Meanwhile, as the massive fnan- cial crisis unraveled across the Channel, Gordon Brown, Nick Clegg and David Cameron were as elusive as the Scarlet Pimpernel. The European Union was expanding its reach into sovereign mem- ber states and British leadership was gridlocked and silent. Within 48 hours of the EU announcing the rescue package, the European Com- mission had proposed its frst set of economic reforms for Europe. First, mechanisms ought to be created to more consistently enforce punishment of a member state if it breaches EU rules on budget defcits and federal debt. Second, surveillance of the fscal operations of EU member states by the European Commission must be stepped up. Third, national budgets of EU member states will be vetted by the European Commission before implementation. perfect storm as market tremors Hit china, europe and the u.s. it is the perfect storm, said Andrew Rob- erts, credit strategist at rbs. People have been too complacent about risky assets. This is a global defation scare and people need to get ready for falls in U.S. and European bond yields to 2 percent. The global stock market sell-off contin- ued for a third day on Friday in Europe and Asia. Londons ftse 100 dropped 2 percent to trade below 5,000 for the frst time since last November. Germany lost 2.4 percent, France 2.2 percent and Japan 2.5 percent. Wall Street is set to open lower. Investors shrugged off German approval of a $1 trillion (700m) eurozone rescue package, doubtful that it can resolve the debt crisis. World equities are now heading for the biggest monthly fall since October 2008. David Rosenberg from Gluskin Sheff said a fresh train wreck may be coming in the U.S. mortgage market as rates on a wave of option arm contracts reset upwards in Sep- tember. This may compound a defationary process already eating at the U.S. economy as Washingtons fscal stimulus wears off and the effects of a stronger dollar feed through. Core infation has dropped to the lowest since 1964. Meanwhile, monetary tightening in China has begun to set off tremors. Shanghais bourse has tumbled 20 percent since mid- April (or 58 percent from its 2007 peak), dragging down oil and base metals. Above all, nothing has been resolved in Europe. Investors are baffed by the ca- cophony of voices in Europe. A day after Ger- man Chancellor Angela Merkel said the euro was in existential danger, French fnance minister Christine Lagarde replied that the euro is absolutely not in danger. While Ms. Merkel is likely to win backing for the rescue in the Bundestag on Friday, this does not settle the deeper issue of wheth- er Germany will accept an EU debt union. Ar- ticles in the German media have questioned whether the country should remain part of emu. Should we bring back the Deutsche- mark? screamed a front-page story in Bild Zeitung. Fresh cases challenging Germanys emu membership are certain. France may have won a Pyhrric victory, securing a short-term triumph at the cost of alienating the German people and setting off a political process that may cause Germany to turn its back on emu. TELEGRAPH, AMBROSE EVANS-PRITCHARD | MAY 21 Berlin has written some very large checks to ameliorate the econom- ic crisis, Stratfor explained last week, and in return, Germany wants to redefne how the eurozone is run. In the short term, and while the threat of fnancial Armageddon still looms, this will prompt poten- tially momentous institutional changes in europe (May 14; emphasis mine throughout). How far-reaching are Germanys designs on Europe? Just when you thought the EU could not go any further down the road towards authoritarian excess, it gets worse, wrote the Telegraphs Ambrose Evans-Pritchard in response to the idea of EU powers, under the watchful eyes of Berlin, vetting the budgets of EU member states (May 14). Under this new condition, EU fnance ministers will pass judgment on the British (or Dutch, or Danish, or French) budgets before the elected bodies of these ancient and sovereign nations have seen the proposals, he warned. Did we not we not fght the English Civil War and kill a king over such a prerogative? Evans-Pritchard lamented. Of course, Britain can do what it has always done when it comes to EU initiatives it does not like: It can refuse to participate or simply drag its feet in implementing them. Essentially, this is what it did last week, when after agreeing to contribute 13 billion to the EU rescue package, it re- fused to offer another 50 billion of loan guarantees to its European part- ners. Problem is, with Europe tottering on the edge of fnancial Armaged- don, any non-compliance by Britain only heightens tensions with Europe. Consider, for example, the comment last week by Jean-Pierre Jouyet, current chairman of Frances fnancial services authority, in response to Britains refusal to get on board the EUs rescue package for the eurozone. The English are very certainly going to be targeted given the political diffculties they have, he warned. On May 11, French bank bnp Paribas warned its clients that Britain would very soon have its Greek moment, which would inevitably precipitate a run on the pound. Help yourself and heaven will help you, Jouyet told Britain acidly. If you dont want to show solidarity to the eurozone, then lets see what hap- pens to the United Kingdom. The warning from France was bitter and clear: A fnancial crisis in Britain is imminent, and when it hits, Britain should not count on Europe for assistance! Evans-Pritchard stated that the moment of defnition is fast arriv- ing for Britain (op. cit). As this crisis unfolds, and as German-inspired European imperialism takes hold of Europes fnances and politics, it will put Britain and the eurozone on such separate courses that it will amount to separation in all but name, he wrote. This is an event Herbert Armstrong anticipated for decades: Britains exodus from Europe is now imminent! CATHOLIC NEWS AGENCY | May 20 no future for europe Without christian roots D uring a recent symposium in Rome on the Orthodox and Catho- lic Churches of Europe, the no-nonsense president of the Pon- tifcal Council for Promoting Christian Unity, Cardinal Walter Kasper, refected briefy on the future of Europe. With his characteris- tic frankness, he said, If Europe wants to have a future again, it must frst and foremost renew its Christian roots. The symposium Orthodox and Catholics in Europe today. The Christian roots and the common cultural heritage of the East and West took place Wednesday afternoon at the Romes Russian Orthodox par- ish of St. Catherine of Alexandria. The 77-year-old prelate noted that in their crises, the East and West THE TRUMPET WEEKLY May 22, 2010 5 eurozone coup dtat spring 2010 really marks a tipping point of the global systemic crisis . Finally, the eurozone leaders recent decisions confrm leap/e2020s anticipations, contrary to the dominant chatter of these last few months, of the fact that not only will the euro not explode because of the Greek problem but, on the contrary, a strengthened eurozone will emerge from this stage of the crisis. One could even consider that, since the eurozone decision, a kind of eurozone coup dtat supported by Sweden and Poland, to create a huge apparatus to protect the in- terests of the 26 EU member states, the geopolitical deal in Europe has changed radically. Because it runs contrary to the prejudices which fashion their vision of the world, several months will be needed by the majority of the media and players to accept that, behind the appearance of a purely European budgetary-fnancial decision, lies a geopolitical split with worldwide impact. The fact remains that without know- ing it, and without having [been] asked their opinion, 440 million Europeans have just joined a new country, Euroland, of which some already share the curren- cy, the euro, and of which all now share the indebtedness and the joint means to solve the serious problems posed in the context of the global systemic crisis. The budgetary and fnancial decisions taken during the summit of the weekend of May 8 in terms of a response to the Euro- pean public debt crisis can be evaluated differently according to ones analysis of the crisis and its causes but, without doubt, a radical unraveling of European governance has just taken place: A col- lective continental governance has just brutally emerged, ironically 65 years after the end of the Second World War . Under the pressure of events set off by the crisis, the eurozone has thus under- taken to grasp its independence with regard to the Anglo-Saxon world still expressed via the fnancial markets. This 750 billion and this new European gov- ernance (of the 26) constitutes, at the one and the same time, the putting in place of the fortifcations against the next storms caused by draconian Western indebted- ness, and which will affect the United Kingdom and then the United States causing disturbances of which the Greek crisis has only given a small preview.
LEAP/E 2020 | MAY 16 face similar challenges, historically being civilizations deeply defned by the Christian faith. He added that it isnt Christianity itself, rather its inculturation that is in danger in Europe. The continent is marked by spiritual weakness, he said, and it needs a renewal beginning with the healing of Christian divisions. To fnd its spiritual and missionary strength again, Europe needs a newfound unity, frst and foremost among Christians. ZENIT | May 18 vatican to study Bringing catholics Back to politics T he pontifical Council for the Laity will begin its 24th plenary as- sembly Thursday, dedicating the three-day meeting to consider Witnesses to Christ in the Political Community. A communiqu from the council noted how Benedict xvi has repeat- edly affrmed a pressing need for a renewed commitment of Catholics in political life. Cardinal Stanislaw Rylko, president of the dicastery, will inaugurate the event. Three lectures are scheduled: Lorenzo Ornaghi, rector of the Sacred Heart Catholic University in Milan, Italy, will speak on politics and democracy today: status quaestionis; Cardinal Camillo Ruini, presi- dent of the Italian bishops Cultural Project, will examine the topic of Church and political community: certain vital points; fnally Arch- bishop Salvatore Fisichella, president of the Pontifcal Academy for Life, will speak on the responsibility of the lay faithful in political life. Andrea Riccardi, founder of the Catholic lay community of SantEgidio, will give a report on great Christian personalities in the history of politics. And the undersecretary of the Pontifcal Council for the Laity, Guzmn Carriquiry, will speak on methods for forming the lay faithful in politics. asia T rade between China and Taiwan leaped to $44.26 billion in the frst four months of 2010, which is 67.9 percent higher than the same period last year, according to the Chinese Ministry of Com- merce. The bilateral increase included $8.52 billion of Chinese exports to Taiwan, up 63.8 percent from last year, and $35.74 billion of Taiwan- ese exports to mainland China, an increase of 68.9 percent from the 2009 fgure. China is Taiwans largest export market. Since Taiwanese President Ma Ying-jeou took offce in May 2008, Taipei and Beijing have made a series of cross-strait deals, and now the two governments are fast-tracking negotiations to bring about a bilateral free-trade agreement. Over 50 years ago, Herbert W. Armstrong predicted that China would eventually capture Taiwan. The fourishing relationship between Beijing and Taipei indicates a nonviolent economic takeover is already underway. Beijing called for caution on Thursday after Seoul formally accused North Korea of sinking a South Korean naval vessel two months ago, showcasing Chinas decisive role in how the matter will play out. Follow- ing the accusation, Pyongyang issued a belligerent denial, saying, Our army and people will promptly react to any punishment and retaliation and to any sanctions infringing upon our state interests with various forms of tough measures including an all-out war. Although such harsh THE TRUMPET WEEKLY May 22, 2010 6 Britain is going to look back on Monday, January 1, 1973, in all probability, as a most tragically historic datea date fraught with ominous potentialities! For that date marked the United Kingdoms entry into the European Community. Herbert Armstrong, Plain Truth, March 1973 david cameron and angela merkel to clash on his frst foreign trip, the Prime Minis- ter meets the German Chancellor for talks that diplomats have suggested will be chilly or even frosty. Cameron will warn Merkel that he has promised Britons a referendum on a new EU treaty. Chancellor Merkel has insisted that all European countries must give up sovereignty to give the EU new economic powers to prevent another Greek and euro zone crisis. She has previously expressed anger at Mr. Cameron, before he became Britains leader, over his opposition to the Lisbon Treaty. A Conservative decision last year to break away from her Christian Democrats and other pro-EU center parties to form a eurosceptic group in the European Parlia- ment also angered her. At the same time as Mr. Cameron is in Berlin, George Osborne is in Brussels for a meeting of Europes fnance ministers chaired by Herman Van Rompuy, the EU President. At the meeting, Germany will formally propose changes to the existing Lisbon Treaty in a move towards economic government. Wolfgang Schauble, Germanys fnance minister, said on Thursday that he was ready to take on British opposition. We wont make it without amendments to the existing treaties. I know many other coun- tries are skeptical. That is why we will be having arguments back and forth, he said. A nine point German paper will be tabled at the Brussels meeting. Included in the proposals will be a new requirement for the government and Treasury to sub- mit budgets to EU scrutiny before they are discussed in the House of Commons. We should discuss the proposals with an open mind and speak candidly about the differ- ent options. If our goal is to create a strong and lasting framework for Monetary Union, we must also take the possibility of amendments to the Treaty into consider- ation, the paper states.
TELEGRAPH | MAY 21 THE TRUMPET WEEKLY May 22, 2010 7 JAVIER SORIANO/AFP/GETTY IMAGES rhetoric is not unusual from North Korea, it caused South Korean mar- kets and currency to fall sharply. Despite the economic tremors, Seoul says it will forge ahead with plans to bring the case to the UN Security Council next week. As North Koreas closest ally, China will likely use its position as one of the Security Councils fve permanent seats to veto any action against Pyongyang. China has often defended North Korea in the past, and has successfully thwarted previous attempts to impose UN sanctions on the country by threatening to use its veto power. latin aMerica/africa T he european Union and the South American trading bloc Mercosur agreed Monday to resume free-trade talks that stalled in 2004. The EU also formed its frst-ever free-trade agreement with Central American nations Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Pana- maon Tuesday, as a summit was opened in Madrid between European leaders and leaders from Latin America and the Caribbean. The EU is the largest investor in Latin America, as well as the regions second-largest trading partner. European President Herman Van Rompuy said, EU and Latin America are natural partners and allies. Our countries are linked by strong historical, cultural and economic ties. In May 1962, the Trumpets predecessor, the Plain Truth, declared that the United States is going to be left out in the cold as two gigantic trade blocs, Europe and Latin America, mesh together and begin calling the shots in world commerce. A terrorist suspect arrested in Iraq stated that he was considering attacking the Dutch soccer team or their fans at the World Cup in South Africa. Dutch Authorities said on May 19 that they were taking the threat seriously. We discussed the possibility of taking revenge for the insults of the prophet by attacking Denmark and Holland, the terrorist, Abdullah Azam Saleh al-Qahtani, said. If we were not able to reach the teams, then wed target the fans. Sports teams are increasingly becom- ing a target for militants, and the World Cup could be a way for them to push at Western nations. anglo-aMerica T he index of leading economic indicators declined unexpectedly in April. Bloomberg reported that the U.S. economys rebound from recession was led by manufacturing and spread to consumer spending and service industries, but that fewer new constructions, job losses and slumping stocks indicated the recovery is not as strong as hoped. The unemployment rate remains at 9.9 percent as 1.6 million college graduates prepare to seek jobs. For people under 25, the unem- ployment rate is at its highest level since the Labor Department began tracking the data in 1948: 19.6 percent. The British economy is going to take another hit as 12,000 British Airways fight attendants get ready to walk off the job. On Thursday, a British court ruled against banning the unions strike, which would ground 30 percent of the airlines fights as early as Monday. European and Latin America heads of states met in Madrid this week for an EU-LAC summit. Generation of maybe later children researchers found that, despite chil- dren being parents main priority, 80 percent admit they dont devote enough time to them. In fact, the report found working parents spend less than an hour a day giving their kids one-to-one attentionwith the average child get- ting just 36 minutes with their mother and father. Childrens responses to the survey painted a similar picture, claiming par- ents are too preoccupied with working, tidying and checking e-mails to address their needs. And almost eight out of ten children said they were fed up of being parked in front of the television instead of being entertained. The trendwhich also showed adults are parenting remotely from their laptops or kitchen sink and continually promising their attention laterwas uncovered in a study of 3,000 working parents and their children . James Carnduff of Admiral, which conducted the research as part of its Family Jour- neys campaign, said: We live in ever busier times with many parents taking work home with them once they leave the offce, but it seems this is having a negative effect on the relationship they have with their children. Parents need to remember that playing with your kids is a great way to relieve stress and forget about work. But kids are fed up with being treated like second best. Two thirds said mum and dad are always saying theyll help with homework or play later. James Carnduff added: Trying to balance work and home life can be diffcult in modern society, but simple things like going on trips as a family can be easy and fun, and dont need to cost a lot of money. Were encouraging families to take more trips out together; these family memories are the things our kids remember from their child- hood. The poll reveals 92 percent of par- ents consider their children to be their absolute highest priority in life. Nine in ten parents say they only work to give their children a nice life, and 90 percent only want to keep a nice house so that their kids have somewhere nice to grow up.
TELEGRAPH | MAY 19 THE TRUMPET WEEKLY May 22, 2010 8 Offcials in Louisiana reported landfall of the Gulf of Mexico oil spill along 35 miles of shoreline on Wednesday. Thick pools of heavy, brown- ish oil hit several areas of the states fragile coastline, including crucial marshes which slow erosion. The crude is harming wildlife and could damage the marshy barriers that slow the disappearance of Louisi- anas coastline into the Gulf. Offcials said they feared the containment booms foating on the surface were not stopping the oil because it was traveling under the surface. Also on Wednesday, the National Oceanic and Atmospheric Administration said some of the slick had reached the fast-moving loop current, which will carry it to the Gulf Stream and the Florida coast in 10 days or less. Meanwhile, the Obama administration kicked out a top physics sci- entist it had selected for a panel on solving the oil spill because he has written that the human body was not designed for homosexuality and that people be concerned with intellect, talent and character instead of racial diversity. Britons will watch the frst-ever television advertisement for abor- tions beginning on Monday. An international charity that executes 65,000 abortions per year in Britain is airing the ad. The Times Online states that about half of Britains 42,000 teenage pregnancies each year end in abortion. One third of British women have had an abortion. More than 90 percent are funded by the National Health Service. In Australia, the New South Wales transport minister, David Camp- bell, resigned on Thursday after he was flmed leaving a homosexual sex club in Sydney and getting into his offcial car. He is married, with two adult sons. One of the states most senior offcials, Campbell was defended by other politicians as being the victim. Hes done nothing wrong, one senior Labor member of parliament said. TELEGRAPH | May 18 al Qaeda operative cannot Be deported T he leader of a terrorist cell planning an attack on Easter shoppers in Manchester cannot be deported back to Pakistan in case he is tortured, a tribunal has ruled. Police did not fnd any explosives when they swooped on the cell in April last year, but MI5 has main- tained that the men, all students from Pakistan, were members of a UK-based network linked to al Qaeda involved in attack planning. The Special Immigration and Appeals Commission said it was satis- fed Abid Naseer, the alleged ringleader, was behind an imminent al Qaeda-backed plot but said he risked being tortured if he was returned to Pakistan. The men were never charged but the Home Offce attempt- ed to deport Naseer and nine others on national security grounds. Eight of the 10 men, who had all arrived in Britain on student visas, chose to return to Pakistan. The two remaining men, including Naseer, have now won their attempt to remain in Britain. The Home Offce said it was not planning to appeal but it is thought the men are likely to be placed under control orders on their release from prison at huge expense to the public purse. The Special Immigra- tion and Appeals Commission said it was satisfed that Naseer was an al Qaeda operative who posed and still poses a serious threat to the national security of the United Kingdom and that it is conducive to the public good that he should be deported. Nevertheless, it said Pakistan had a long and well-documented his- tory of disappearances, illegal detention and of the torture and ill-treat- ment of those detained, usually to produce information, a confession or compliance. pornland, oregon: child prostitution in portland child prostitution has become a national problem in this country. Yes, I know that you have trouble believing that. You dont want to believe it, so you tend not to. Widespread sex traffcking in children?, you may be saying to yourself. Sure, it happens overseas in places like Thailand and Moldova, and while there may be some of it here theres not that much of it in our country. Im here to tell you that you are wrong. We all are. Were in denial. In covering news for more than 60 years, Id like to think that few stories shock me anymore. But this is one of them. Eighty-year-old men paying a pre- mium to violate teenage girls, sometimes supplied by former drug gangs now into child sex traffcking big time? Youve got to be kidding. Nope. Thats happening and a lot more along the same lines. The business is booming. And according to Doug Justus, the workhorse sergeant in charge of Portlands tiny Vice Detail, many of the children caught up in this are middle-class kids from the area. It is an out-of-control problem. Its unbelievable, say Justus. If you had told me three years ago that a 14-year- old girl would go to a food court, meet a guy, and three hours later be selling herself, Id a said, no way. It happens every single day, every day. It is a very lucrative business, accord- ing to Justus. An average pimp with one kid will make between $800 and $l,000 a day. Thats seven days a week, 30 days a month, he said. And the pimps usually have a stable of young girls. No wonder so many criminals in the drug trade have turned to it which they have in droves. Theres less chance of being caught, less chance of being prosecuted if caught, lighter sentencesif anyif convicted. How many children are being peddled on the streets of Portland and in other cities and towns, to say nothing of the Internet . Hard to know about the real numbers. The most conservative esti- mates are that at least 100,000 American children are being victimized. Many experts say they believe its closer to 300,000 or more. Whatever the number, it is a national outrage and disgrace. And the problem is growing, not diminishing. HUFFINGTON POST, DAN RATHER | MAY 18 THE TRUMPET WEEKLY May 22, 2010 9 ASSOCIATED PRESS | May 18 immigrant crossings into arizona on the rise T he migrants walk for days through miles of mesquite scrub, run- ning low on food and sometimes water, paying armed drug thug guides and dodging U.S. law enforcement offcers along the way. And still they keep coming. The latest fgures show that Arizona, which is about to put into ef- fect the nations toughest immigration law, also is the only border state where illegal crossings are on the rise. While tightened security and daunting fences in Texas and Cali- fornia have made Arizona a busy crossing corridor for years, migrant smugglers now are fnding new ways through the states treacherous deserts. New U.S. Border Patrol statistics show arrests on the Arizona border were up 6 percentby about 10,000from October to April . Statis- tics from the Mexican side also show a rise in illegal crossings through Arizona. ASSOCIATED PRESS | May 19 foreclosures Break records T he mortgage crisis is dragging on the economic recovery as more homeowners fall behind on their payments. More than 10 per- cent of homeowners had missed at least one mortgage payment in the January-March period, the Mortgage Bankers Association said Wednesday. Thats a record high and up from 9.5 percent in the fourth quarter of last year and 9.1 percent a year earlier. Around 4.3 million homeowners, or about 8 percent of all Americans with a mortgage, are at risk of losing their homes, the trade groups top economist estimates. They have either missed at least three months of payments or are in foreclosure. Many analysts have been forecast- ing home prices will dip again as more of these homes go up for sale at deeply discounted prices. More than 4.6 percent of homeowners were in foreclosure, also a record. BLOOMBERG | May 19 volcker says time is running out F ormer federal Reserve Chairman Paul Volcker, a top outside adviser to President Barack Obama, said time is growing short for the U.S. to address problems ranging from its budget defcit to Social Security obligations. We better get started, the 82-year-old former central banker said in a speech yesterday in Stanford, California. Todays concerns may soon become tomorrows existential crises. Volcker, speaking hours after the euro fell to a four-year low against the dollar, said Europe demonstrates for the U.S. the hazards of un- controlled borrowing. Little has happened to allay my concerns raised fve years ago that dangerous and intractable problems were violent Hurricanes could Hamper oil clean-up meteorologists in the United States are warn- ing of an unusually active hurricane season this summer, stirring concerns that just one severe tempest at sea early on could cripple ongoing operations by BP and the U.S. govern- ment to plug the crippled oil well in the Gulf of Mexico and contain the already giant spill. All efforts on the shoreline and at sea, the booms and structures and rigs involved in clean-up and containment could stop work- ing, said Ian MacDonald, a professor of oceanography at Florida State University. If a storm comes into this situation it could vastly complicate everything. Executives for BP said last night that a tube successfully inserted into the mouth of the wells riser pipe over the weekend was captur- ing roughly one ffth of that leak and deliv- ering the oil and the gas to a tanker above. They expressed hope that the quantity of oil entering the pipe would increase in the coming days. While it represented a frst bit of encour- aging news, offcials in Washington said the tube was not a solution to the problem. Because of data showing a diminishing of the El Nio effect this year and a slight warming of waters in the Atlantic, scientists are agreed that the season is shaping up to be unusually active. Separately, BP was being told that parts of the vast slick created by the leak are now within a few miles of, or may already be in contact with, the so-called Gulf loop deep currents circulating in a clockwise direc- tion. Like a conveyor belt, the current may quickly begin to move some of the oil towards the Florida Keys. Thereafter, the Gulf Stream could carry it round to Miami Beach and the eastern seaboard of Florida. This cant be passed off as an its not going to be a problem, said William Hogarth of the University of South Floridas College of Marine Science. This is a very sensitive area. We are concerned with what happens in the Florida Keys. The Keys are home to the largest coral reef in the United States. They are also a tour- ism hub.
INDEPENDENT | MAY 18 THE TRUMPET WEEKLY May 22, 2010 10 from the eurozone if again and again it doesnt fulfll the requirements. That statement reveals the will of the German people. They want new rules where individual eurozone nations must pay for their own fnancial mismanagementor else face the possibility of expulsion. But Merkels actions belie those strong words of warning. Shes already caved in to pressure from Barack Obama and French President Sarkozy on the bailout package, which puts German taxpayers on the hook for about $150 billion to help rescue Greece. Soon to be added to that tab may well be the chancellorship of An- gela Merkel. Germany, and Europe, will soon have their strongman. All the mechanisms are now in placeincluding the groundswell of support he will need to capitalize on the current crisisfor him to pare down the bloated, 27-member union to the powerfully destructive, biblically prophesied ten kings. Beginning with Mr. Armstrongs ministry, we have been forecast- ing this for more than 60 yearsdating back to a time when the cities of Germany were lying prostrate beneath the devastation of the Second World War. Now, fnally, these prophecies are therebeing fulflledfor all to see! CRISIS from page 1 rising in the U.S., said Volcker, chairman of the presidents Economic Recovery Advisory Board. Intractable not just because of the combi- nation of complicated issues, but because there seemed to be so little willingness or capacity to do much about it, he said during a dinner at the Stanford Institute for Economic Policy Research. The time we have is growing short and there are serious questions, most imme- diately about the sustainability of our commitment to growing entitle- ment programs. The Obama administration is forecasting a record annual budget defcit of $1.6 trillion. The shortfall is projected to be $10 trillion over the next 10 years, with interest payments on the debt forecast to qua- druple to more than $900 billion annually. Any thoughts that participants in the fnancial community might have had that conditions were returning to normal should by now be shattered, he said. WALL STREET JOURNAL | May 21 problem Banks at 775 A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corp.s list of problem institutions in the frst quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets. Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climb- ing for the 16th consecutive quarter, fdic offcials said in a briefng on Thursday. The banking system still has many problems to work through, and we cannot ignore the possibility of more fnancial market volatility, fdic Chairman Sheila Bair said. fdic offcials said they expected the number of failed banks to peak this year after climbing steadily over the past three years. Regula- tors have shut 72 banks so far this year, more than double the number closed by this time last year. Ms. Bair said regulators were preparing for a steady pace of additional closures through the end of the year. A total of 237 banks have failed since the beginning of 2008. cavemen r us after years of anticipation, the genetic code of Nean- derthal cavemen is being decoded. And it is unravel- ing the theory of evolution. Apparently Neanderthals are a little more closely related to humans than ex- pected. How close? Lets just say that the man Aunt Thelma married may really be a Neanderthal after all. According to a May 7 Science article, the Neanderthal genome sequencing is nearing completion. What scientists have found so far is astounding: Humans and Neanderthals are practically identical at the dna code level. The researchers used dna captured from the nucleus of cells found in three bone fragments from three different female Ne- anderthals found in Croatia. The scientists then compared the Neanderthal genome to the human at 14,000 protein coding gene segments that differ between humans and chimpanzees. What did the scientists fnd? Simply put: Neanderthals are human. There was virtu- ally no difference between the two codes. The few differences they did fnd were so slight that researchers say that they are functionally irrelevantand that if more Neanderthal genomes could be compared there might be no differences at all! But that is not all the scientists found. The data suggests Neanderthals are as closely related to humans as Chinese are to Germans, or French to Javanese. Fur- thermore, the genetic material analyzed indicated that Neanderthals and humans interbred and produced children that inter- bredand regularly. Uncle Jeds jutting eyebrow? Chalk that one down to dna passed down from genera- tion to generation. Whatever our differ- ences, theyre not in the composition of your building blocks, reports Wired Science. The Neanderthal genome shows most humans are cavemen. Did you get that? All those supposed pre- man, caveman bones are actually just plain old human skeletons. The scientists that now admit that Nean- derthals were fully human have reclassifed them as Homo sapiens neanderthalensis which is just the scientifc way of saying the bones are a variety of true humans. So much for the Neanderthal as an an- cient monkey-man theory. That is certainly good news for Aunt Thelma and Uncle Jedbut not so good for the evolutionists. They will just have to modify their theory again.