News and Prophecy Staff

June 1 marked an historic event between close trade partners—Japan and China. Japan is China’s largest trade partner and the two nations are growing closer together.  On June 1 the two began trading directly in their own currencies instead of in U.S. dollars.  This direct currency exchange will bolster their relationship and could be used by China to press for the eventual replacement of the dollar with the yuan as the world’s reserve currency (Agence France-Presse, May 29, 2012).

The San Francisco Board of Supervisors recently voted overwhelmingly to urge the U.S. Navy to name a vessel the “USS Harvey Milk.”  Harvey Milk was one of the first openly homosexual politicians in the U.S. and served on the San Francisco Board of Supervisors.  In order to determine if the idea was a good one, the Board consulted the spirits.

This week the United States Congress is debating a bill that would prohibit abortions on the basis of the sex of the unborn child.

Some politicians claim the U.S. economy is rising from the ashes even while Europe’s financial situation melts down.  However, numerous analysts believe more turmoil remains for the United States.   In Europe, Britain gives wise financial advice but continues to “borrow” endlessly without fixing its own financial problems.  According to one financial analyst, “The entire [British] tax system needs to be replaced with something coherent.”  In fact, he notes that “…the optimal size of government is closer to a third” (The Telegraph, May 17, 2012).

Noted economic historian Niall Ferguson observed in a recent interview that the only real solution to Europe’s financial crisis is a full fiscal union—a true United States of Europe—that would be unquestionably under the leadership of the financial powerhouse, Germany.   Ferguson believes Europe could limp along for a while with Greece falling into step with EU demands and Germany digging deeper into its wealthy pockets.    However, he states that while “I am not a federalist… the costs of the single currency disintegrating are really so high and would impact so many people, that t