This article was originally posted on May 11, 2015 and is being reposted due to recent financial trouble at Germany’s largest bank, Deutsch Bank.
In my previous post, Why the Greek Drama Will Soon Become a Tragedy, I shared a prophetic vision from the late David Wilkerson in which he warned of bank runs starting in the United States within about two weeks after the first country goes bankrupt. The purpose of this post is to clarify what he meant.
With all the focus on Greece, it would be easy to assume they will be the first country to default. However, in another message David Wilkerson said he saw it starting in Germany. So we could see a scenario where Greece misses one or more loan payments without causing a financial melt-down for European banks, at least not right away. However, the losses caused by the Greek default would make it very hard for European financial institutions to absorb, which could then cause Germany’s economy to collapse. The whole system would start coming unglued.
As Europe’s largest economy, Germany has been carrying more than their fair share of the load in the European Union. Over the past five years, they have been a major contributor to bail out funds not only for Greece, but also Portugal, Italy, Ireland, and Spain. In the process, they have put themselves at risk if any of those nations default.
Today we see Greece reaching a critical point of needing additional funds to avoid a banking crisis. However, Germany cannot continue to support the weaker European nations forever. After five years of playing “extend and pretend”, the German people are weary of sending their hard-earned money to bail out other nations, especially Greece because they are not showing signs of recovering and are not complying with the terms of the loans. But now the Germans have put themselves in a predicament because they have extended so much credit to Greece that a default there could take down Germany too. Recognizing this danger, the Germans have grown increasingly reluctant to continue sending more funds. The gig is just about up.
Professional violinist Maurice Sklar shared the following prophetic insight showing Germany would play the key role in the coming financial disaster in Europe:
There is an even greater financial disaster that is falling upon Europe that will collapse the euro, cause panic and chaos there. Germany will refuse to prop up the euro any more. Basic needs in the poorer European nations will be threatened. Many will lose their money overnight as the stage is set for the financial takeover of the Antichrist system. This is imminent, and the dollar will also follow, although it will survive for a season more.
I believe we are now very close to the day when Germany will refuse to send any more bailout funds, especially to Greece. However, the big question is what happens after that?
Only the Lord knows the answer because the global economy is now in uncharted territory for at least two reasons, derivatives and debt.
- Derivatives – Never before in history have so many financial institutions exposed themselves to so much risk in the form of derivatives, which are financial products that derive all of their value from an underlying asset. Derivatives allow financial institutions to leverage their assets many times over. As a result, many investors hold a claim to the same asset while none of them actually own anything of real value. This approach works great when market values are moving up because profits are multiplied, but it is very dangerous when market values are moving down because losses are multiplied too. Large losses can force even very large banks to go bankrupt.
- Debt – Never before in history have there been so many nations in so much debt. Sovereign debt levels have increased significantly among almost all developed nations since the 2008 collapse of the housing market. The enormous debt burden makes it almost impossible to absorb the cost of any unexpected disasters.
The combination of the derivatives and debt leaves no wiggle room. Any large default could cause the global financial system could come crashing down like a house of cards.
That is exactly what David Wilkerson saw happening. In the audio message shown at the bottom of this post, he reveals the first country to go bankrupt is Germany, not Greece. So when we hear the news that Greece has missed their first loan payment to the IMF or ECB, we should not panic or run out and withdraw all of our funds from the bank. If David Wilkerson’s vision is correct, the country to watch is Germany.
We should also keep in mind the difference between missing a payment and being declared in technical default, which occurs 60 days later if the payment is still due. So there is a question about when the two-week clock starts ticking.
Yesterday a visitor to this site, named Frank, shared more information about David Wilkerson’s vision.
I thought you might like to see the results of a bit of research I’ve done, in which I found an old audio message by David Wilkerson, in which he identifies the first important European country to suffer an economic collapse: Not Greece, but Germany! (Not to say Greece won’t collapse, but read on).
To give some background, first, in his book, “The Vision,” at the beginning of chapter 1, Wilkerson states, “I see total economic confusion striking Europe first, and then affecting Japan, the United States, Canada, and all other nations shortly thereafter.”
So, the economic collapse begins in Europe. There is a slightly different version of this which is circulating on various sites on the internet, usually titled “David Wilkerson’s Economic Vision.” This is the one you quoted, where he narrates how the collapse starts in Europe, spreads to South America, then Mexico, then the U.S. Notice he again mentions Europe first, and then later, “the first country (that) goes bankrupt,” but doesn’t identify the country. Well, I did some more digging and found this audio sermon by Wilkerson:
AT EXACTLY 2:03 (see audio below) HE STATES: “It’s going to start in GERMANY!!!” After that he says it will “spread to Japan, and finally to the U.S.” I believe Greece defaulting on its loan to the EU will certainly weaken Germany, but it’s when GERMANY, the economic powerhouse of Europe, defaults, that the real clock, according to Wilkerson, starts ticking.
Greece defaulting on one or more of its future commitments to the EU/Germany may take a long time to cause a collapse in Germany; however, since so much of world commerce is interlocked, a panic resulting from a Greek default or combination of defaults could also develop very quickly. The German banking system is tottering on the brink of collapse as we speak. About a month ago, Duesseldorfer Hypothekenbank AG, a German bank, nearly collapsed after a margin call for $375 million. Deutsche Bank had a $75 trillion derivative exposure, and that was reported a year ago:
So, it wouldn’t take much to tip Germany (and other EU) countries over the edge, setting of a panic in short order. I’m thinking that if Wilkerson’s vision in this case plays out, and it sure looks that way, Greece will start defaulting on some of those debts, and the EU will be able to withstand some of these for a short while. But when Germany, considered the most financially solid of all EU countries, defaults, it will cause investors to totally lose confidence, and we will see a frenzied run on banks, a bank holiday, Cyprus-like currency reset (or worse), followed by a collapse, which then spreads worldwide.
Thanks Frank for sharing those excellent points!
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.