In short, prophecy is the Word of God spoken through prophets by the power of the Holy Spirit. The Word builds us up and strengthens us in the faith, gives us insights into the Truth and encourages us in our faith journey. Speaking from a Catholic Charismatic point of view, prophecy does not deal with foretelling the future, leastways, I have never heard a prophecy foretelling the future. A person with the Gift of Prophecy will be given inspirations that generally deal with what is going on in the group at the time.
The Gift of Prophecy:
The ability to sense what God is saying to a group or an individual, and to pass on that message. This usually takes the form of encouragement, comfort, hope or exhortation.
St. Paul, speaking of prophecy in 1 Corinthians 14, does not confine its meaning to predictions of future events, but includes under it Divine inspirations concerning what is secret, whether future or not.
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