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Alternate fuels have been around for the past century, but the big oil companies have suppressed them in order to sell its own product (oil). But with the nearing demise of the US dollar and the rise of Russia, propelled by its oil and gas sales, it seems that a new tactic is emerging in the economic war. The US Navy is now announcing that they have suddenly discovered how to convert seawater into CO2 and hydrogen. The plan is to equip its ships with this capability by 2015.
I believe the US government is hoping to undercut the need for Russian oil by suddenly “discovering” alternate fuels. As long as the big US and European oil companies reigned supreme, alternate fuels were suppressed. Patents were bought up and buried. But now that Russia is becoming an economic powerhouse from its oil and gas sales, it has forced the US to disgorge some of its suppressed technology in an attempt to retain its position as a world power.
In fact, I have long suspected that there was a hidden reason why the Bakken oil field began to be developed in recent years in North Dakota. It comes at a time when the US relationship with the Saudis is fraying at the seams. After the US covert operations led the overthrow of President Mubarak of Egypt (in the guise of the Arab Spring democracy movement), the Saudis in turn overthrew the US-backed Muslim Brotherhood government of the new President Morsi. The Saudis then gave $6 billion to support the military government that replaced Morsi. That was a slap in the face to the US and to President Obama.
The second heated exchange came when the USA had to back down in Syria, after the Saudis agreed to help overthrow President Assad. Russia stepped in and stopped a US-led invasion plan, and this angered the Saudis even further.
Saudi Arabia sees the US as becoming increasingly impotent and is now turning East (China) for its support and protection. Dr Jim Willie believes that even though the Saudi government (which is Sunni Muslim) hates Iran (which is Shi’a), the Saudis will swallow their religious pride and make a hard business decision to join with Iran in the Eurasian Trade Zone with Russia, China, and India—and by extension all of the BRICS nations. Willie thinks that the defection of Saudi Arabia from the West to the East will mark the final collapse of the dollar. Why? Because the petro-dollar was born in Saudi Arabia in 1973 when they agreed to accept only dollars in payment for Saudi oil.
The Result of Trade Sanctions
The landscape is changing rapidly. A couple years ago the US imposed sanctions against Iran and cut them off from the SWIFT system, whereby payments for international trade are made in dollars--the "world currency." India, however, still wanted to buy Iranian oil, so they developed a new way to bypass the Fed. India now pays Iran in gold, using Turkey as its intermediary. This marked the start of a whole new trade settlement system that has returned to the gold base that had been abandoned in 1971.
The US government itself forced this to happen by issuing trade sanctions.
The US is now trying to impose trade sanctions on Russia. Once again, the plan is backfiring. It is one thing to sanction Iran, quite another to sanction Russia, which stretches out for 14 time zones and is backed by China. Sanctions give the appearance of not allowing other countries the PRIVILEGE of using the US dollar in international trade. But treating the use of the dollar as if it were a privilege is a fatal mistake. In the end, those sanctions have made it desirable to break the Fed’s monopoly on wire transfers by setting up an alternative system.
This erodes the US dollar as the world currency, because nations can make whatever alternate arrangements that they wish between each other. If they are forbidden to make payments in dollars, using the SWIFT system, then they can always set up a competing system that is sanction-free.
The BRICS nations have already done this last year, setting up their own trade settlement bank in South Africa (the "S" in BRICS). Sanctions on Russia (the "R" in BRICS) will only accelerate the demise of the dollar's importance in world trade payments. Why should a nation have to pay for imports using US dollars--and pay the fee (tax) to the Fed--when they can just use each other's currencies and save billions of dollars in the process?
Germany, the European Pivot Nation
It seems that Germany will be the deciding factor in this battle between East and West. It is reported that 90% of German corporate leaders are pro-Russian in this conflict and will not allow their government to impose any serious sanctions on Russia. They have too much to lose in the way of business deals, to say nothing of their need for Russian oil and gas. In the end, politics is dictated by economic interests, regardless of the power brokers' wish lists. If the US tries to sanction Russia as they did Iran, Russia will simply force every European country to pay for its oil and gas in roubles, gold, or perhaps even euros. They will bypass the dollar altogether. Such a scenario would be the end of King Dollar, and the US will be relegated to an armed-and-dangerous third world economic power.
If the US pushes Europe too hard, they will be forced to take sides. They will choose Russia over the US, simply because the rest of the world is getting very tired of US bullying. Up to now, they have tolerated it because of the economic benefits or military protection that such a relationship offered. But the world is fast changing. When the US no longer has an economy that can support its foreign imports, it will find itself friendless and isolated in the world.
Americans will be baffled and outraged that they helped so many nations through foreign aid and disaster aid, only to find those countries turning against us. "Ungrateful wretches!" they will shout, not knowing that all that foreign aid was not really "aid" at all but a bribe that bought foreign leaders' allegiance. Much of that aid went into the personal bank accounts of corrupt foreign leaders. Americans will not understand, because they cannot believe that their own government would be anything but benevolent.
The Eroding Power of Babylon since 2007
Everything began to change in 2007 with the subprime mortgage crisis, followed by the 2008 banking crisis. If you followed our ministry in past years, you will remember that we conducted a 13-year "Jubilee Prayer Campaign" from 1993-2006 for the overthrow of Babylon, designed to set God's people free and to establish the Kingdom of God. When we made our final decree at Babylon, NY on October 7, 2006, we then held a Tabernacles conference in Reading, PA the following week end. There I explained that Babylon would begin to collapse within a year. The subprime mortgage crisis surfaced in July 2007.
In the months and years that followed, the politicians and economists all insisted the recovery was just around the corner, citing past precedents. But this was no ordinary collapse. The whole system was broken. The seeds of its debt-system were sown into the system itself from the beginning, and this ensured that eventually, it would collapse in the wake of its self-created load of debt. The banks and government have tried hard to prop it back up and to manipulate the stock market, but this is becoming increasingly impossible to sustain. They have tried to sustain the value of the US dollar by manipulating the price of gold downward, but this has only caused other countries to buy gold at bargain-basement prices. The US has no more gold, in spite of its lies about gold in Fort Knox.
When all of this hits the surface (this year, I believe), Americans will be in a state of shock.
There are still a few more tricks that the US government can do to prop up its corpse besides applying more lipstick and eye shadow. There is little doubt that they will nationalize pension funds and retirement funds, taking the money and replacing it with an IOU (treasury bonds). They already did this with the Social Security Trust Fund back in the 1990's, which made it look like the government was running a surplus in those "good" Clinton years. They are even now planning to do this again, but this time with all retirement funds. Their retirement fund will be turned into a government welfare program. The retirement checks will not stop coming, but everyone will become dependent upon the government.
The other trick the government can do is to do a Cyprus-style "bail-in" by taking a so-called "wealth tax." In other words, they could take 10% of everyone's bank accounts and tout it as "an emergency one-time tax." Of course, the billionaires will know about this ahead of time, so they will move their money overseas to safe havens, leaving the rest of us to be robbed.
These are events that we should consider to be the death-throes of the current form of US government. What will it look like politically? It will be a virtual dictatorship, whether they declare martial law in public or not.
It used to be prudent to save money. That was when the inflationary rate was low. When high inflation came in the late 1970’s as the result of going off the gold standard, it became more prudent to spend money on things that were going up in price, such as houses and land. The subprime mortgage crisis in 2007 suddenly brought about a collapse in housing prices, ending thirty years of land and houses as a good store of value.
Since that time, as the big banks and the US government have struggled with insolvency, Americans have to change their way of thinking and must develop a new way of thinking. When governments get hungry, people must hide their food.
In today’s world, where the government itself presents the greatest danger to personal wealth, those who have savings or retirement accounts can no longer assume that their money is protected by law and the justice department. It is better to spend the money on things which have more stability. Many are suggesting gold, silver, or other metals. Paper contracts are insufficient—such as a paper that says you own a certain amount of gold somewhere in cyberspace. Paper is only as good as someone’s ability to make good on the contract.
My own way of thinking is that whatever money I own is now at its highest value and will only go down in value as time passes. At some point it may drop 50% if the guacamole hits the fan. It is better to use money today than try to use it later when it is worth much less.
Unfortunately, many are still stuck on the old mindset of the past, where savings accounts made good sense. Back in those days “a penny saved was a penny earned.” Nowadays, a penny saved is a half-penny earned. Those who cannot change their old mindset will be the ones who will suffer most.
Here is where it is most helpful to understand Bible prophecy. If we understand that the Western Fed-based monetary system is the core of Mystery Babylon (as a governmental system), then we can start to grasp the meaning of its collapse when God overthrows it.
Revelation 18:11 makes it clear that the economic system will be affected by the collapse. This will affect everyone in some way, but the better one understands financial matters, the better able one will be able to lessen the pain—or even to prosper in it.