Russian inflation
Most of North America has been experiencing steady and consistent growth this past decade. For the most part inflation had been kept in check, never exceeding a rate of five percent. Unfortunately in Russia, things are very different. The Toronto Star reported, December 31, 1998, that the 1998 rate of inflation hit a mind-boggling 84% in Russia. Expressed in laymen’s terms, this means that if an individual had $100 in savings at the beginning of the year, its purchasing power would be equivalent to $12 at end of the year.

The Star reported: "Russian inflation, which appeared under control until a financial crisis struck last summer, hit 84% for 1998. With Russia still mired in crisis, many private economists expect the rate for 1999 to be as high, if not higher. In preparing the 1999 federal budget, Prime Minister Yevgeny Primakov’s government has forecast inflation at 30%. but many analysts regard this as overly optimistic. Russia suffered from hyperinflation for several years after it moved to a market economy in 1992, but the government seemed to be taming inflation in recent years. The rate was 11% in 1997 and the government was expecting single-digit inflation for 1998 until the financial crisis struck in August. Since then, the Russian currency has lost much of its value, the government has effectively defaulted on some of its debts and the economy has been shrinking. The economy contracted about 5% in 1998 and Russia remains trapped in one of the worst depressions ever experienced by an industrialized nation."

To compound matters a Russian court recently declared one of the country’s largest banks bankrupt, clearing the way for the first liquidation of a major bank since the August crisis. The unfortunate aspect of this bankruptcy is that there is no equivalent in Russia of the Federal Deposit Insurance Corporation or the Canadian Deposit Insurance Corporation. This means that all deposits on record were lost. Instead of reimbursing the depositors, merely the creditors were reimbursed, for pennies on the ruble.

The new Euro - "Euroka"
Newspaper headlines reported that: "From War’s Ashes, A Single Future." What started as a thought by Winston Churchill in 1946, when he called for a United States of Europe, has taken another major step toward reality.

On January 1, 1999, 11 nations in Europe formed together to start trading in a new currency now referred to as the Euro. The New York Times reported, January 2, 1999: "Though Euro notes and coins will not enter circulation until 2002, European banks and stock exchanges are required to carry out transactions in Euros as soon as markets open Monday. Instead of pricing and trading stocks in 11 currencies, traders will suddenly have to do so in just one. Broker’s computer systems will have to calculate stock valuations like price-earnings ratios in Euros even if the company still reports its earnings in marks or lira."

Obstacles to trade and investment across borders continue to fall before the European Union’s campaign to build a single market roughly the size of the American economy.

The Euro history
This "United States of Europe" took its first step to reality in 1957, when West Germany, France, Italy, Belgium, the Netherlands and Luxembourg set up the European Economic Community. In 1972, European leaders agreed to pursue a common economic and monetary system and created the European Currency Unit. In 1986 an agreement was reached on a tariff-free internal market to be established for all members of the European Community by the end of 1992. In 1991, at the Maastrich summit meeting in the Netherlands, agreement was reached on a European Central Bank and a common currency to start by 1999, for eligible nations. In 1998, 11 countries decided to introduce a common currency in January, 1999. Today, this thought has become a reality. It is the plan of the founders of the Maastrich treaty to increase trading and thus make the entire European economy stronger and more vibrant.

It has been stated by many Bible students that the formation of the European economic community parallels Daniel’s prophecies concerning the latter days. In describing the period following that of the Roman empire, the prophecy states: "Whereas you saw the feet and toes, partly of potter’s clay and partly of iron, the kingdom shall be divided; yet the strength of the iron shall be in it, just as you saw the iron mixed with ceramic clay. And as the toes of the feet were partly of iron and partly of clay, so the kingdom shall be partly strong and partly fragile" (Dan. 2:41, 42). While these nations form a single unit in many ways, they remain distinct entities in many others. Could this be the condition described by Daniel?

Similarly, the economic despair currently gripping Russia might well induce her to plunge headlong into war to regain wealth and prestige.

We continue to warn ourselves to be alert and to continue our prayers that the time will be short to the coming of our Lord.