Where Is America in Biblical Prophecy?
The Lord prophesied that before His return a Fourth Kingdom would arise,
often referred to as ''the revived Roman Empire,'' that would crush and rule
over all the other kingdoms of the earth (Daniel 7:23).
In more common terms, this implies a global, one-world government will someday
exercise total sovereignty over virtually all of the people and nations of the
earth. This suggests that America will eventually surrender its own national
sovereignty and submit to the power, authority, and dominion of the coming
Fourth Kingdom. Furthermore, there are many who ask, ''Why hasn’t God judged
Billy Graham’s memorable quip several decades ago pointed out, ''If God
doesn’t judge America, He will have to apologize to Sodom and Gomorrah!''
Thomas Jefferson expressed the same idea in 1781 when he opined, ''I tremble
for my country when I recall that God is just, and His justice will not sleep
There are, at present, at least four emerging challenges to America: 1) Ezekiel 39:6,
which hints at a nuclear exchange; 2) Al Qaeda, with its ''American Hiroshima'';
3) Iran, and its EMP threat; and 4) The collapse of the U.S. economy. It is this
last one that is not widely understood.
Bretton Woods and Its Betrayal
The U.S. had positioned itself with this in mind before the war because it
was known that America would end up supplying its allies with provisions,
weapons, and thousands of other items during WW II, with the only acceptable
form of payment being gold. Thus, the U.S. had accumulated a significant portion
of the world’s gold by the conclusion of the war.
The Bretton Woods agreement worked well until the guns-and-butter policy of
the 1960s was instituted and the money supply was expanded as never before to
finance the Vietnam War and Lyndon Johnson’s ''Great Society'' programs.
Crisis and Repudiation
A dollar crisis erupted in 1970-1971 when foreign central banks, who had been
flooded with dollars funding U.S. deficits, began to demand payment for their
dollars in gold according to the Bretton Woods agreement. The U.S. had printed
so many dollars and borrowed so much money from foreign banks that U.S. gold
reserves were rendered insufficient (by a ratio of over five to one!), making
full payment in gold impossible. The crisis required an immediate solution to
save America from default and bankruptcy.
The U.S. resorted to immediately severing the link between the dollar and
gold, making it abundantly clear to all its creditors that America would never
repay any of the billions of dollars it had borrowed with physical gold, so the
depreciating paper dollars were then backed by nothing but the ''reputation'' of
the U.S. Government.
The act of severing this link was functionally equivalent to an act of
bankruptcy by the U.S. Government. However, because of its economic, political,
and military power, no government on earth could oppose this action as they had
no viable alternative. They were literally forced to continue accepting
depreciating dollars in payment for their goods and services sold to
In order to ensure that the world had an economic reason to continue holding
dollars, America made an agreement with Saudi Arabia wherein the Saudis would
accept only U.S. dollars as payment for their oil. With this move the dollar
suddenly became backed by the one commodity every nation had to have to survive:
OIL! In order to buy oil one would have to own dollars to pay for it. Even
though the dollar could no longer be exchanged for gold, it was now exchangeable
for Black Gold: oil.
In exchange for accepting only U.S. dollars, America agreed to support the
power and position of the House of Saud and to protect them if they were ever
attacked by one of their neighbors. This guarantee was fulfilled when Saddam
attacked Kuwait and threatened to attack Saudi Arabia in 1991. In the ensuing
years world demand for oil continued to increase, and so did the demand for
dollars, forcing foreign governments all over the world to accumulate increasing
amounts of dollars in order to purchase their oil. Over time, world markets
evolved to the point where other commodities such as wheat, corn, soybeans,
natural gas, gold, silver, and many others were all traded in dollars. Thus, the
position of the U.S. dollar as the world’s reserve currency was firmly
established, as was the requirement of foreign central banks to accumulate
dollars to pay for all these commodities purchased on the world market.
With this system firmly in place the U.S. could then print and borrow as much
money as was needed without regard to any budget discipline whatsoever. As long
as the dollar was the only acceptable means of payment for oil, its dominant
position as the world’s reserve currency was assured, and America could borrow
and spend whatever it wanted without fear of flooding the globe with excess
dollars. The supremacy of the U.S. dollar as the world’s reserve currency
ensured that America could dominate the world economically and politically, and
could raise the necessary amount of cash through borrowings to fund (among other
things) the military, making it the most formidable military power on earth.
U.S. fiscal discipline during the ’80s and ’90s was lax, but it was nothing
compared to what was to take place under the current administration, which has
embarked on the largest borrowing spree in the nation’s history. America began
to experience larger and larger current account deficits as it spent billions
more every month on goods and services than it sold abroad. During 2005, the
current trade deficit increased to an annualized $800 billion! Total U.S.
outstanding debt now exceeds a staggering $8 trillion dollars, of which a large
majority is owed to foreigners.
This staggering mountain of debt poses one of the greatest threats to the
economic survival of the United States if circumstances were to arise wherein
the dollar was not the only currency that nations could use to pay for their
oil. If nations suddenly had a choice as to whether to pay for oil in euros
rather than dollars, the supremacy of the American dollar would be seriously
threatened, along with its economic viability.
The primary risk for America, should this option become available, would
manifest itself in reduced demand for dollars on the global foreign exchange
markets, as nations would require fewer and fewer dollars to pay for their oil.
Reduced demand for any item implies a lower price down the road, and this
dynamic would doubtless result in a depreciating dollar relative to other global
currencies. Foreign central banks, needing more euros to buy oil, would seek to
denominate ever increasing amounts of their foreign currency reserves in
This in turn would mean that America would find it increasingly more
difficult to borrow the $3 billion dollars a day it must have to keep
the U.S. economy afloat, pay the interest on $8 trillion dollars in debt, as
well as continue to fund its enormous continuing deficit.
Why Did America Really Invade Iraq?
The stated reason by the Bush Administration for invading Iraq was that
Saddam possessed weapons of mass destruction and was prepared to use them
against Israel, Iraq’s other neighbors, and possibly America.1 There
are some that believe that the real reasons why America invaded Iraq are found
in events and policy development that happened before the invasion but which
were never revealed to the American public. There are two such reasons
First, to ensure that the dollar remained unchallenged as the world’s reserve
currency, so that the U.S. could continue to fund its massive deficits and
sustain its economy and its political and military supremacy. What does the
dollar have to do with all of this and how does the invasion of Iraq fit into
It seems that Saddam sealed his fate in September 2000, when he demanded that
all Iraqi oil sold under the U.N. Oil for Food Program must be paid for in euros
rather than dollars. Saddam’s actions were a direct threat to the supremacy of
the U.S. dollar as the world’s reserve currency and the ability of the U.S. to
continue to fund its massive deficits. This is born out by the fact that two
months after the U.S. invaded Iraq, the Oil for Food program was terminated and
all of the Iraqi euro accounts were switched back to dollars. No longer did the
world have the option of buying oil from Iraq and paying for it in euros.
Forcing the Iraqi accounts to convert from euros to dollars cost the Iraqis a
great deal of money because the dollar had fallen in value relative to the Euro
by some 13%! Not surprisingly, this detail has never been prominently mentioned
by the five U.S. major media conglomerates who control 90% of information flow
in the U.S., but confirmation of this vital fact provides insight into one of
the crucial - yet overlooked - rationales for the 2003 Iraq war.
The second possible reason for the Iraq war is hinted at in a 1999 speech
given by Dick Cheney while he was still CEO of Halliburton:
By some estimates, there will be an average of two-percent annual growth
in global oil demand over the years ahead, along with, conservatively, a
three-percent natural decline in production from existing reserves. That means
by 2010 we will need on the order of an additional 50 million barrels a
If the Vice President of the United States truly believed, as he stated
before becoming Vice President, that world oil production was about to peak and
go into decline, would this be sufficient motivation for the U.S. to ensure its
economic survival by sending its military to Iraq in order to secure control
over the second-largest oil and gas reserves on earth?
Who Opposed the War and Why?
The nations who vehemently opposed the war in Iraq were Russia, Germany,
France, and China. The real underlying reason was never spoken of by the press
or by the Administration. The reason all these nations opposed the war was
because they all had contracts to purchase and develop Iraq’s vast oil and gas
reserves. American and British oil giants were excluded by Saddam and left out
in the cold. It is significant that, after the U.S. conquered Iraq, most of
these contracts and agreements with France, Germany, Russia, and China were
cancelled and given to U.S. and British Oil companies. To the victor go the
Saddam had begun the process of excluding American and British oil and gas
corporations from acquiring stakes in Iraq’s bountiful hydrocarbons in the
spring of 1997. Relief to Iraqis and restored confidence in the durability of
the Saddam regime by the international community had already begun to occur
after the UN’s Oil for Food scheme was introduced the previous December.
A consortium of Russian companies, led by the state-owned Lukoil, took a 75
percent share (with the state-owned Iraq National Oil Company taking 25 percent)
in a joint corporation to develop the West Qurna oil field in southern Iraq.
This oil field holds 11 billion barrels of oil - a third of the total U.S. oil
reserves. Then, China National Petroleum Corporation entered the scene and
entered into an agreement to develop the Adhab oil field.
China’s lead was followed by Total Societe Anonyme of France (now
TotalFinaElf), which agreed to develop Nahr Omar oil field in the south - almost
as bountiful a field as the West Qurna. Then Ranger Oil of Canada secured a $250
million contract for field development and exploration in the Western Desert,
followed by India’s Oil & Natural Gas Corporation and Reliance Petroleum’s
signing of a deal to develop the Tuba oil field.3
Without exception, almost all of the above contracts to develop, transport,
and purchase Iraq’s oil were cancelled and declared null and void by the Bush
Administration after the war was over. These same contracts were then awarded to
British and American oil giants. It is readily apparent that securing control
over the development, sale, transportation, and distribution of these oil and
gas reserves for America and Britain was undoubtedly one of the primary reasons
for the war in Iraq. This was undoubtedly grounded in the recognition that world
oil production would peak sometime between 2006 and 2010.
In July 2003, two major oil companies agreed to buy 10 million barrels of
Iraqi oil under the first long-term contracts to be offered by Iraq since the
end of the war. BP, PLC and Royal Dutch/Shell Group of Cos. each had announced
that they expected to ship two million barrels of Basra Light crude per month,
starting in August and ending in December. They would load the oil on tankers at
Iraq’s Persian Gulf export terminal of Mina al-Bakr. This was a reward for
British participation in the invasion and conquering of Iraq.
U.S. Executive Order #13303
The veracity of these actions appear confirmed by executive order. In May
2003, President George Bush issued Executive Order #13303, which stated:
...Any attachment, judgment, decree, lien, execution, garnishment, or
other judicial process is prohibited, and shall be deemed null and void with
respect to... all Iraqi petroleum and petroleum products and interests
With this executive order the President granted American oil companies, or
individuals who are involved in the production, transportation, or distribution
of Iraqi oil, a lifetime exemption from any kind of legal action against them in
the United States.
''In other words, if Exxon-Mobil or Chevron-Texaco touch Iraqi oil, anything
they or anyone else does with it is immune from legal proceedings in the U.S.,''
explained Jim Vallette, an analyst with the Sustainable Energy & Economy
Network of the Institute for Policy Studies in Washington D.C.
This action made it impossible for any of the nations who had their contracts
nullified by the President to sue to reinstate them because the oil companies to
whom they were given are immune from any judicial proceeding against them in the
United States! ''Effectively, Bush has unilaterally declared Iraqi oil to be the
unassailable province of U.S. and British oil corporations,'' Vallette
We can more often judge the true motives of nations and leaders not by what
they say, but by what they do. Their actions reveal their true motives, not what
they say for public consumption.
The Lifeblood of the American Economy
Oil is the lifeblood of the American economy. The U.S. has approximately 5%
of the world’s population but consumes over 20% or more of the world’s daily oil
production. What will be the consequences if we are rapidly approaching the time
when world oil production peaks and the price of oil continues to skyrocket,
choking off economic activity and creating massive unemployment?
With nations like China and India growing exponentially, the demand for oil
cannot go anywhere but up. Where will the oil production come from to meet the
demand of two nations that possess 2.4 billion people, as they seek to purchase
new cars, trucks, tractors, and all of the other products that are petroleum
based? Continuously increasing oil prices could at some point cause the U.S.
economy to shrink to unimaginable levels. Almost everything we use today in our
modern life has petroleum as its base: from plastics to fertilizer to gas for
your car - they all utilize petroleum as their base. Food production is almost
totally dependent upon fuel and fertilizers that are petroleum based.
Is the world really approaching a time when the price of oil will force the
price of food to levels unknown in modern history?
And I heard something like a voice in the center of the four living
creatures saying, ''A quart of wheat for a denarius (a days wages), and three
quarts of barley for a denarius; and do not damage the oil and the
wine.'' - Revelation 6:6
The IOB (Iranian Oil Bourse) could accelerate the already existent global
trend of shifting foreign currency reserves from dollars to euros. ''Countries
could begin the process of switching to euro reserves from dollar reserves and
this could bring down the value of the U.S. currency. Imports would start to
cost Americans a lot more. As countries and businesses convert their dollar
assets into euro assets, the U.S. property bubble would, without doubt,
If oil trades in euros, it is only a matter of time before wheat, soybeans,
natural gas, gold, silver, copper, and all of the other major commodities will
come to be traded in euros as well. Nations want to protect their own interests,
and no nation wants to have its reserves denominated in a currency that is
depreciating, but rather in one that is appreciating, or is at least stable.
As nations begin to choose the euro over the dollar, the U.S. Treasury’s
ability to finance the U.S. deficit and pay the interest expense on $8 trillion
dollars will become increasingly more difficult. We will be forced to make some
very hard choices in order to preserve our economy. Among the possibilities are:
substantially raising taxes, making major cuts in spending in all areas
(including the military), raising interest rates to whatever levels it takes to
enable the U.S. Treasury to continue to fund the deficit, or simply by just
printing money to fund the deficit, leading to sustained and possible
These coming events could portend horrific economic consequences for the U.S.
economy and for the lifestyle we have come to know and expect.
If this scenario begins to unfold, individuals who have excessive mortgage
and credit card debt, or who have loans - personal or business - that float with
the prime rate, will have to pay ever increasing interest rates, which at some
point leads to massive defaults and bankruptcies. It appears that there could be
substantial economic dislocations in America, probably leading to unemployment
levels unknown in modern times, which would undoubtedly bring on severe
financial distress for millions of Americans. The lifestyle we have enjoyed and
have become accustomed to could change dramatically in the coming years.
The Missing Report Card
There is a new Chairman of the Federal Reserve System - regarded by many as
the most powerful non-elected official in the world: Ben Benanke. (Under
Greenspan’s 18-year tenure, the U.S. dollar’s value was cut in half.) It will be
important to watch how he deals with the forthcoming debt dilemmas.
Until 1971 the Federal Reserve System, also known as ''the Fed,'' defined the
money supply as equal to the sum of currency in circulation (excluding bank
vault cash) and demand deposits (checking accounts). This definition of the
money supply ignored saving accounts and time deposits (accounts that earned
interest but could not be withdrawn without penalty until they matured).
Monetary authorities and economists became concerned that estimates of monetary
growth could be misleading if those estimates ignored savings accounts and time
In 1971 the Federal Reserve began publishing measures of broader monetary
supplies. The monetary aggregates were given the names M1, M2, and M3. M1 was
comparable to the original money supply measure - that is, currency in
circulation and demand deposits. M2 equaled M1 plus accounts such as savings
accounts and small time deposits. M3 was an even broader measure, adding in
larger time deposits. M3 is, in effect, a primary report card on the Fed and the
control of inflation.
However, effective March 23, 2006, the M3 will now no longer be reported!
It is also significant to note that turnover has been continuing at the top
posts of the Federal Reserve: Fed Vice Chairman, Roger Ferguson unexpectedly
announced he was stepping down. This on the heels of the resignation of the
Philadelphia Fed Regional Bank President Anthony Santomero, which followed
resignations of two of the seven Fed Governor spots and six of the twelve Fed
Regional Bank President posts over the preceding two years.
What do they see coming?
One World Currency
How could America, and the nations of the world, lose their sovereignty
without a shot being fired? Can you imagine the panic that will take place in
the markets of the world if the dollar crashes? With 70% of the worlds reserves
held in dollars, nations may watch helplessly as their currency reserves
evaporate as the value of the dollar plummets. Realize that the U.S. is now the
world’s largest debtor. And the Bible cautions us, ''The borrower is servant to
One solution to the forthcoming ''dollar crisis'' could be the creation of a
''one world currency,'' prophesied in the Bible. The leaders of the world will
seek to establish a one-world currency. (Already we hear talk, in the hallways
of the Bank of International Settlements, of an ''Amero,'' a unified currency
for North America.)
To move toward a one-world currency, the world leaders would create and
empower a world governing body that would have control over the creation,
supply, and distribution of money worldwide. When a nation gives up its control
over the printing of its money to someone else, it gives up its sovereignty
(e.g., to the Fourth Kingdom described in the book of Daniel?).
The fourth beast shall be the fourth kingdom upon earth, which shall be
diverse from all kingdoms, and shall devour the whole earth, and shall tread it
down, and break it in pieces. - Daniel 7:23
There will be exciting times ahead! But we need to be diligent and very
disciplined in regards to our personal stewardship.
- The lingering doubts about their existence is pretty much confined to the
highly biased press and the liberal establishment. General Sada (the Iraqi
general) has published his book on this subject, Saddam’s Secrets.
- April 2004, Middle East Magazine. Where are we going to find all
this oil? To gain a greater understanding of how serious this issue is, take
time to read the following article. ''Life After the Oil Crash.''
- The Nation, Oil, Iraq, and America, Dec 2002.
- The Foundation for the Economics of Sustainability, Nov. 15,