On a Crash Course: Coming Collapse of the U.S. Dollar
By Pastor Hal Mayer
Welcome to another message from Keep the Faith. I hope you are well and prospering in the Lord. Most of all, I hope you are getting ready to meet Jesus in the clouds of glory. He is coming soon, you know. And we don’t have time to play with sin. Now is the time to be an overcomer in the name and in the power of Jesus Christ. Your eternal destiny depends on it.
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Today, I have a very sobering message for you. If you haven’t noticed that there are problems in the global economy, you have your head buried in the sand. But what is the situation? And what can we expect in the future?
But before we get into our message for today, let us bow our heads in prayer and ask the Lord for His Holy Spirit as we share together. Our Father in heaven, we come to you today needing to understand your thoughts. We need to know what heaven thinks about the things that are rapidly coming upon the world. We seem to be heading from one crisis to another. No sooner does one crisis or disaster fade into our memories, but then the next one comes upon us rapidly. It’s like those tornados in the United States in recent times. When one funnel cloud would dissipate, another would pop up. We see that in the world every thing is in an unsettled state. As we near the close of probation, we see that nature is more and more turned out of its course as severe weather, earthquakes, volcanoes and other disasters wreak havoc around the planet. But there are other types of prophetic problems arising too, such as the precarious economy. So please speak to us today about our need, and help us understand the big picture in the great struggle that is coming upon the world. In Jesus’ name, amen.
Please turn with me, if you can, in your Bibles to Luke 21:25-26. Here is a passage in which Jesus tells us plainly what is going to happen to the nations.
“And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring; Men’s hearts failing them for fear, and for looking after those things which are coming on the earth: for the powers of heaven shall be shaken.”
Do you think these verses are being fulfilled today? Yes, they are partly being fulfilled. There is certainly perplexity among the nations. There is certainly distress, war, famine, pestilence, economic misery, human cries of woe from earthquakes, tornadoes and other disasters. The problems we face are only getting worse. The planet is facing severe challenges. In verse Luke 21 verse 9 Jesus said that we would hear of commotions. Have you heard any commotions lately? Aren’t the struggles going on in the nations of the Middle East and in North Africa and Greece a lot of commotion? They certainly are. Today, I want to talk to you about the cause of these “commotions.” I also want to talk to you about the future and the commotions and eruptions that will cause men’s hearts to fail them for fear. But we don’t need to fear if we are in Christ. That is the great comfort of the true Christian who loves God’s law and lives for Jesus. Do you know what Jesus is doing by letting the world suffer increasing woe? It is to get the hearts of His people ready for peace and joy. The more woe we see, the more pain we suffer, the more ready our hearts will be for the sheer tranquility of heaven. What a blessing that will be! He wants you to learn to be in sympathy with Jesus and heaven, reach out to your fellow suffering human beings and bring them to the knowledge of Jesus and His love. He has to permit Satan to carry out his agenda in the world and in His church so that everyone will ultimately have a clear view of Satan’s malicious designs. He doesn’t bring the suffering per se, but he allows it for a warning to the worldly to turn from their sins and rebellion.
In the last few years, economic crises have erupted all around the world. Places like Iceland, Greece, Ireland, Portugal, Spain and some other European countries are struggling to keep their economies from collapsing. People, who are dependent on government support for pensions, health care, and other social service contracts, are facing severe cuts in their benefits as promises of government leaders are being shredded. In addition to the personal pain, these nations are being forced to accept rescue packages from the European Union and the International Monetary Fund, which is turning them into vassal states in the new Holy Roman Empire. Now Greece is about to receive another huge bailout from the European Union and the International Monetary Fund, because it has not been able to cut through the huge deficits with austerity measures. So the pain is not going to go away for its citizens either. It is only going to get worse. Ditto for other countries in the economic periphery of Europe.
But the economic virus is not limited to these peripheral European countries. Recently we saw major upheavals in the Middle East and North Africa where quite a number of nations have overthrown their leaders and are demanding a new set of political and economic principles. Their economies are in a shambles, and as food prices skyrocket, the people demand change. The stress is spreading around in an ever-widening circle of wave after wave of economic bad news.
You may remember that it all started in the United States when Lehman Brothers Investment Bank collapsed. The problems in the U.S. have not disappeared. They have just been somewhat masked by the Federal Reserve, the U.S. central bank. Now the United States is about to enter another staggering economic crisis. It has piled up so much debt that it is fast coming to the point where it will not be able to pay the interest. The problems in the U.S. real estate market in 2008 caused serious economic emergencies in many countries around the world. The problem was not just confined to the United States. This led to serious problems with global banks and investment firms around the world. But now the same problems that were in the banks are now in the U.S. Federal Government. Excessive borrowing on cheap credit has created the looming crisis. The next phase of the economic crisis involving the United States will threaten your way of life like nothing else could, and most people don’t know what to do when they can’t use credit cards, they can’t buy gold or silver, or when they can’t get enough money to pay for food. I hope you heard what I just said. Let me say it again. Most people don’t know what to do when they can’t pay for their food. This breathtaking calamity will affect you no matter where you live.
Do you realize what the Lord says will happen? Listen to this from the book Early Writings, page 282-283. “I saw the saints leaving the cities and villages, and associating together in companies, and living in the most solitary places. Angels provided them food and water, while the wicked were suffering from hunger and thirst. Then I saw the leading men of the earth consulting together, and Satan and his angels busy around them. I saw a writing, copies of which were scattered in different parts of the land, giving orders that unless the saints should yield their peculiar faith, give up the Sabbath, and observe the first day of the week, the people were at liberty after a certain time to put them to death.”
Think about this statement for a moment. From it we can see that several things are coming upon the world. During the time of trouble the most severe judgments of God will be in the land. Leading up to the time of trouble, there will be increasing problems with basic necessities like food and water, especially in the cities, but also in the country. The statement said that angels will provide those who keep God’s commandments, particularly His Sabbath command, with food and water while the wicked, those who despise His holy law and reject His Sabbath, will suffer from hunger and thirst.
How do the wicked starve from hunger and thirst? Well, there are two ways, and both are in play in the last days. Either the food isn’t available, or the people do not have enough money to buy it, either through inflation or through lack of income. And I believe from the words of inspiration that this is going to be excruciating.
Here is another statement that gives a bit more detail. It is from the Spirit of Prophecy, Vol. 4, and page 446. “While God’s judgments are visited upon the earth, and the wicked are dying from hunger and thirst, angels provide the righteous with food and water.”
Notice that there will not only be a famine of food in the earth, but a famine for water. And it will be so bad that people will die from it. Now that’s serious. I suspect that this is not just talking about those living in the arid parts of the earth. I suspect that this is talking about countries that currently have plenty of food and water. We are already beginning to see the first part of this prophecy. As extreme weather, by storm or drought, causes crops to fail or be destroyed, food prices will climb sky-high. Other commodities will also increase dramatically. You and I need to understand the serious problem that is coming on the world and is just beginning to unfold.
Here is yet another statement from God’s messenger that ties in the economic crises. This one is from Maranatha, page 181. “The Lord has shown me in vision, repeatedly, that it is contrary to the Bible to make any provision for our temporal wants in the time of trouble. I saw that if the saints have food laid up by them, or in the fields, in the time of trouble when sword, famine, and pestilence are in the land, it will be taken from them by violent hands, and strangers would reap their fields. Then will be the time for us to trust wholly in God, and He will sustain us. I saw that our bread and water would be sure at that time, and we should not lack, or suffer hunger. The Lord has shown me that some of His children would fear when they see the price of food rising, and they would buy food and lay it by for the time of trouble. Then in a time of need, I saw them go to their food and look at it, and it had bred worms, and was full of living creatures, and not fit for use.”
Again, we need to think about what this statement is saying, and for that matter what it is not saying. There is a lot in it. Note that the author was shown repeatedly. This is not just a low-level principle that is not so important. It is a high-level principle that deserves repeated instruction from the Lord. Let’s face it; it is vitally important that you follow God’s instructions. When there is hunger in the land, God says He will provide for His people.
Jesus Himself said that our Heavenly Father cares for us even more than He cares for the sparrow. You can read that in Luke 12:6, 7. “Are not five sparrows sold for two farthings, and not one of them is forgotten before God? But even the very hairs of your head are all numbered. Fear not therefore: ye are of more value than many sparrows.”
In other words, Jesus is telling us that we don’t have to fear for the absence of food in the time of trouble, for your heavenly Father Who feeds the sparrows, and Who cares much more for you than for them, will feed you directly. But you have to be in Christ. You have to have His Spirit in you. You cannot get that at the last moment. You have to get it now, if you are going to survive the time of trouble.
Another point to notice about this statement is that some of God’s children will succumb to fear when they see the price of food rising and will try to hoard food in storage for the time of trouble. First, let me say that I believe this is talking about hyper-inflation, a massive run-up in prices, not just the gradual though rather rapid rising prices that we have seen in recent times. I believe this fear is common. Many of us think about buying up food to hedge the future costs when faced with soaring food prices. I have from time to time myself thought about that.
But when I read God’s counsel, I see that hoarding food for the final crisis is not God’s plan. He wants to do something awesome for His people. He wants them to learn to trust Him completely. He wants to provide them some kind of food in their distress. Can you imagine what that will be like? Imagine an angel coming to you with a basket. When you look inside there are the best mangos you’ve ever seen in your life. There are some grapes that have a flavor like you’ve never tasted before. And they give you more energy than you’ve ever had in your life. Maybe God will give us a taste of manna. You know, getting the Israelites, God’s church in Old Testament times, to trust Him completely was the purpose of the manna. I don’t know what it will exactly be like to have angels bring food to God’s saints, but my imagination wants to run riot. I love the thought, and I believe that you need to imagine it too. It will encourage you if you have this in your mind when you go through difficulty. God promises to sustain His people! And that is a promise that you can rely on. My friend, get your life right with God. Let Jesus have full control of your heart. You won’t regret it and the reward is phenomenal.
Are food prices rising right now? They certainly are. In fact, world food prices are at an all-time high, and there is no end in sight. Food production is being strained. Some of the crops are being diverted into fuel production. On top of that food is being hoarded by some nations to somehow buffer the effect of the exponentially increasing cost of staple foods, pushing prices even higher.
In the last year, world wheat prices, for instance, rose by 75%. Now that doesn’t make much of a difference to a loaf of bread in the United States or Europe, Australia, or New Zealand. But in India, and in Bangladesh, Tunisia, Egypt and Africa, it makes a huge difference because the people living in these developing countries are so poor that most of their income is spent on food, clothing and shelter. So a major increase in the price of commodities leads to larger increases in retail prices. This, in turn, takes a much larger percentage out of their meager income. Since most of them are already living on the edge, this makes the bread, corn meal, rice, or whatever else they normally purchase to eat, much to pricey.
But world food prices are also taking quite a bite out of the income of families in western countries as well. If wages don’t increase in tandem with the inflated cost of living, people in western countries will eventually lose the advantage they have and they too will spend a much greater percentage of their income on food. Food and water are looming as a key point of distress of nations in the near future.
In recent times there has been a small reprieve in gas, petrol and food price increases, but don’t be deceived by the lull. It is only temporary. Prices are going to rise again. If you fall into fear and lay up food in storage for the time of trouble, it will either be taken from you or will be no good to eat.
So, what does this mean? Does this mean we should have nothing in storage for the next few months? Look, Jesus was talking about the time of trouble. Some people go to great lengths to get enough food to last them several years, or a decade should there be a time of trouble. But God’s says don’t do that.
That does not mean however, that you should not store up food in your pantry for up to a year. That is always what happens when you are dependent on the growing season. If you are following God’s counsel and living off the land, you will need to find a way to have a garden and live as much out of it as you can. You will need to can or freeze enough of your produce to last a year until the next harvest comes along. This is the way it always has been. There is nothing wrong with that. This passage is not speaking about storing up food in harmony with the natural agricultural cycle. Nor is it talking about the time BEFORE the time of trouble.
During the time prior to the great tribulation, there will be increasing stress and distress for quite some time, and it is not wrong to have something in store for the needs of your family up until that time. But don’t go out and hoard food and store it up with the intent to have it available during the time when God’s people will be put to the test. For just as God allows them to be tested, they are also to test God and let Him prove Himself and provide all their needs. But you had better start trusting God now, and getting yourself into the country and starting to live off the land.
Notice also that the statement said that there would be sword, famine, and pestilence in the land. Think about that. What does “sword” mean? Why, that means war, perhaps civil war, or riots and heavy-handed police or military action against citizens who are upset because of the lack of food and water available to them. You know from watching what is happening in other countries that when there is a lack of food, the prices sky-rocket, and the people get angry and protest to the government demanding that something be done about it. They even overthrow their leaders. Don’t think that this can’t happen in your country.
Also, think where this is most likely to happen. The greatest troubles will be in the cities. But the cities are not the only places where there is likely to be violence. No doubt there will also be conflicts out in the country as well. That’s why God’s people have to go to the solitary places and be fully dependent on Him. Their lands will be taken from them if they still have them. Their gardens will be stripped of their produce. People in and around cities will panic and will come out into the country hoping to find food. They will scavenge and steal, and if you resist they will do you violence. It will be a very dangerous time to have a garden full of produce when people are hungry. You will lose all you have. So live your normal life in harmony with God’s revealed will.
But this statement tells us plainly what the conditions will be like in the time of trouble. There will be famines, pestilences and war. Can you imagine war in the peaceful country where you live? All you have to do to imagine it is to look at what happened when prices of food got to high in some of those Middle Eastern nations or those North African nations. There was strife and bloodshed as governments lost their ability to control their populations. The leaders resorted to violence, and the people, in some places, retaliated with more violence. This is what happens when people get hungry and their survival is threatened.
These statements set the stage for our subject today. There is going to be great distress of nations with perplexity, Jesus said. Do you think that people are perplexed?
Just when you think the economy is going to recover, just when gas or petrol prices start to come down a little, just when you are starting to breath easier, things are going to get worse. We are in the eye of the hurricane.
In 2008 the first phase of the economic storm began through the collapse of the housing market in the U.S.A. This had a ripple effect on the economy in other parts of the world, through banks that had invested in the U.S. real estate market. But the problems mounted, particularly as the loss of jobs rose to astronomically high levels and unemployment soared and the American people went on a buying strike. They just stopped buying anything except the most basic supplies for the most part.
The U.S. Federal Reserve started guaranteeing mortgage lending agencies, banks and even some big businesses, like AIG, GM, Fannie Mae and Freddie Mac. That was QE1, or the first phase of quantitative easing, a Federal Reserve euphemism for creating money out of thin air to support the failing housing and industry sector. And boy did they! Billions upon billions of dollars were created out of nothing to bolster the banks, bail out insurance companies, and turn on the financial spigots for families in trouble. Hundreds of billions of dollars were approved by the U.S. Congress for a stimulus package that was supposed to jumpstart the U.S. economy and bring back prosperity. But it didn’t happen. Yes, the eye-watering amount of money was spent, but the economy continues to struggle. Most of the jobs created were in the federal government, not in productive industry.
Now, after a second round of quantitative easing, known as QE2, in which the Federal Reserve has tried to buy up U.S. Treasury bills that nobody else wants, they have created billions and billions more dollars out of thin air. Now the United States is standing on the brink of the financial precipice. QE2 was schedule to stop recently, but the Federal Government cannot risk defaulting on its obligations, so it has to keep borrowing more money, and so by default (no pun intended) QE3 has begun. They had to. They had no choice. The only option, when the United States has sent much of its industry overseas and Americans produce much less than they consume, is to print more money.
This is dangerous for the global economy as well as for the United States, and world leaders are desperately trying to hold it all together until they are able to centralize the control of the economy away from the U.S. dollar. Keep in mind that the United States, whether you like it or not, is directly linked to almost all the other countries of the world. Oil is sold in U.S. dollars, which means that every country has to peg its currency to the U.S. dollar. This has made it so that the U.S. dollar is the reserve currency of the world. This means that the United States is the one country that controls the economy of the world. And this has been true for the last 60 years or so. Now all that is about to change, and your life is likely going to be quite different, particularly if you live in the United States, but also to a great degree if you live in another country.
What has saved the United States in its reckless disregard of economic principles, what has preserved the United States in spite of its enormous deficit, is the fact that the U.S. dollar is the reserve currency of the world. And the economic crisis precipitated by the collapse of the mortgage markets gave world leaders the excuse to develop a way to gradually strip the United States of this protection. The consequences will be enormous. There is coming an economic tsunami that is likely going to overwhelm most people who will not know what to do. They just hope and pray that they will be able to ride out the storm. They just blindly go about their daily business, choosing to be oblivious to the realities around them. They believe what government officials tell them. And usually the message is that everything is improving and that we are headed back to the days of prosperity, though it is temporarily slow going. So goes the official version.
Recently, Ben Bernanke, chairman of the U.S. Federal Reserve made a public statement in which he said that he expects the economy to improve in the long term, and suggested that the sluggish improvements of the recent past are temporary.
“If the nation is to have a healthy economic future, policymakers urgently need to put the federal government’s finances on a sustainable trajectory,” he said. But, don’t do anything too drastic. He continued; “But, on the other hand, a sharp fiscal consolidation focused on the very near term could be self-defeating if it were to undercut the still-fragile recovery.” He said that policy makers should look for long-term consolidation and deficit reduction plans.
Do you believe that the recovery will improve and that the slow start is only temporary? I don’t. He is just trying to keep people from panicking. Imagine him saying, it is unsustainable, and there is no way the U.S. can pull out of this, and we are going to have a major collapse. That would be devastating to the markets. Yet, that is what he said. He said that “policymakers (that means government officials) urgently (note that word urgently) need to put the federal government’s finances on a sustainable trajectory. In other words, the federal government’s finances are not on a sustainable trajectory at all at the moment.
Ben Bernanke is masking the real problem. He is a master at clouding the issue, making the stark facts that the United States is bankrupt less clear. His murky language only calms the fears of the market so that they will not panic and remove liquidity and flee to safer havens like non-U.S. currencies or assets.
But the moment of truth will come and is fast approaching. We don’t know exactly when the financial collapse will come, but it will certainly come. The Federal Reserve may be able to hold off the day of reckoning a bit longer. Events may delay global leaders plans to implement alternatives to the U.S. dollar as the world currency. But the nightmare scenario is surely going to come sooner or later. God has many ways to hold off the winds of strife. But once the U.S. dollar is no longer the world’s reserve currency, the dollar appeal will end, and a new currency could likely replace it. And as a result, the Americans will be poorer, much poorer.
Already U.S. debt is fast approaching the point where income from taxes and other sources will be only enough to pay the interest on the debt. This is unsustainable. Yet Bernanke’s message to the people of the United States was that they should start spending again, and spend with confidence. Is he crazy? Or is he masking the real situation? When the U.S. government allows the bulk of U.S. industry to be taken out of the country, the main source of economic growth is consumer spending, which is very fickle. While the economy is subsidized by low interest rates, people think they are rich and spend more than they can afford. But when the economy turns down, they stop spending for fear that they will lose their ability to pay for their basic needs. When people are afraid for their financial future, they stop spending. Bernanke is just trying to calm their fears.
I don’t know about you, but I am wary when a government or economic leader makes this kind of statement. What he says is usually the exact opposite of what is the truth.
For instance, during the Euro crisis, Irish leaders said that there was no reason to think that there would be a bailout. “Ireland’s minister for European Affairs Dick Roche denied… that Ireland needed emergency financing… ‘There is no reason why we should trigger an EU or IMF-type bailout.’”
It wasn’t long after that Ireland got its first bailout. Now fears are mounting again of the need for a second bailout, and once again Irish leaders are saying it isn’t necessary.
At the end of May, 2011, Irish central bank Governor Patrick Honohan said, “There was no need for a ‘hypothetical’ discussion about whether Ireland will need a second bailout if it is unable to return to market funding next year.”
The same thing happened in Portugal. First, there were denials that a bailout would be needed in January, 2011. But then a few short months later, in May, Portugal received its first bailout from the EU and the International Monetary Fund.
So, you need to be very careful to think about what is really being said by economists when the fundamental principles of the economy are heading downward. They are not trustworthy.
You cannot hope that things will just get better. They are going to get worse, though governments and reserve banks will try to do so gradually. Right now, we have been in a little lull, the eye of the storm. People are made to feel that things are going to gradually get better so that they don’t panic, and so that they believe that they can spend with confidence, go in debt, and live beyond their means again.
The Federal Reserve is buying so many U.S. Treasury bills that the United States is up to its eyeballs in debt, not only to China, but to the U.S. Federal Reserve. China is still buying some T-Bills, as they are called, but China is slowing down a lot.
The trouble is that the U.S. Administration is increasing the debt load of the United States government at a record pace. In 2010 the federal government’s financial condition deteriorated rapidly, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit. The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
“This gap between spending commitments and revenue last year equals more than one-third of the nation’s gross domestic product.
The $61.6 trillion in unfunded obligations amounts to $527,000 per household. That’s more than five times what Americans have borrowed for everything else — mortgages, car loans and other debt.
In 2011 the new debt will be $1.6 trillion dollars. The overall national debt is more than $14.4 trillion in addition to the debt burden and commitments of previous years. Ben Bernanke of the Federal Reserve is creating hundreds of billions of dollars out of thin air, and then turning around and buying debt from Timothy Geithner who was once the chairman of the New York branch of the Federal Reserve. And apparently there is no end in sight.
These men are in this together. Their plan is to help each other in the process of robbing you of the value of your dollars. For every dollar that is created out of thin air and sent circulating through the markets, the value of your other dollars declines. We call that inflation because the effect of the decline in the value of your dollar is to increase the price of goods and services. Do you know why the cost of food and energy is sky-high and going up? It is partly because of quantitative easing, and partly because of increasing strain on supplies. But the problem would be a lot easier if it weren’t for that electronic process of creating more cash to circulate in the economy.
The United States dollar is soon going to drop of the cliff, especially when it is no longer the reserve currency. The United States is trapped. There is no way to come out of this crisis. All government leaders can do is try to ease the pain. And it is all going to change your lifestyle as we head into this currency crisis.
The national debt problems in Europe with Greece, Ireland and Portugal is child’s play compared to what is coming from the United States, when world economic leaders are finished with their plans.
The key issue is the imminent collapse of the U.S. dollar, which will be triggered by losing its status as the world’s reserve currency. And world leaders are working to that end. Sam Zell, one of the richest men in the world and a very successful investor said. “My single biggest financial concern is the loss of the dollar as the reserve currency. I can’t imagine anything more disastrous to our country. I’m hoping against hope that [isn’t going to] happen, but you’re already seeing things in the markets that are suggesting that confidence in the dollar is waning.”
If things don’t change, Zell said “I think you could see a 25 percent reduction in the standard of living in [the USA] if the US dollar was no longer the world’s reserve currency,” he said. “That’s how valuable it is.”
Warren Buffett, perhaps the best known investor in the world recently said that “over time [the U.S. Dollar] will become ‘less important’ as America’s ‘dominance’ of the world’s economic system ‘diminishes.’”
Another investor, Ray Dalio said, “It’s inevitable that the dollar’s role as the world’s currency will diminish from the dominant world currency to one of a few.” he said.
Do you think these investors are joking? No they’re not. They are serious because they have billions of dollars of investments at stake and have to think realistically.
In other words, these men are saying that the collapse of the U.S. monetary system is under way already. The U.S. is already in over its head in debt. There is no way to fill the chasm. Even if deficit spending stopped in 2011, there would be no way that the debt could be paid off in 100 years. And there is nothing that Congress can do about it except make it worse. There is nothing that the President can to do about it, except make it worse. They may make a show of trying to do something to limit the debt, but they cannot do anything substantial. It would be political suicide.
The United States is trapped in a vice grip, and it is inevitable that the dollar will fall from its favored position in the world. We are in the midst of that process presently. Right now the U.S. cannot go broke. All they have to do is print more dollars and then pay their debts. The United States buys everything in dollars. It doesn’t have to buy anything in Euros, Australian dollars, New Zealand dollars, Japanese yen, or Chinese yuan, or anything else. The fact that the dollar is the reserve currency gives the United States a huge advantage. In other words, money creation is the only thing keeping the U.S. dollar from collapsing. So they won’t stop doing that. It is too dangerous. But to continue create enormous amounts of money is also dangerous. It is creating the very collapse that the Federal Reserve is supposedly trying to avoid. The money creation is radically devaluing the dollar. It’s just going more slowly. And when the U.S. dollar loses its spot as the global reserve currency, the economic crisis will likely be ten times worse than what happened in 2008. The economic crisis of 2008 was child’s play compared to the coming financial apocalypse.
I might add at this point, that when the crisis hits, Americans may be willing to accept a dictator in place of an elected president if that person proposes to solve the problems. I’m not saying that will actually happen. All I’m saying is that it is possible.
Bill Simon, the CEO of Wal-Mart, and the world’s largest company, recently made some comments about inflation. “U.S. consumers face ‘serious’ inflation in the months ahead for clothing, food and other products. Wal-Mart is working with suppliers to minimize the effect of cost increases…”
“Still, inflation is ‘going to be serious,’ he said.” “We’re seeing cost increases starting to come through at a pretty rapid rate.”
U.S. creditors like China are on the horns of a dilemma. If they unload dollars on the market that will reduce the value of the dollars they have left. And until there is a replacement for the dollar as the world reserve currency, China has to buy more U.S. debt, just to keep things going. So China has begun to do something very cunning. They are buying up assets around the world and spending their dollars hand over fist. They are buying commodities like copper and zinc. They bought a huge aluminum corporation called Rio Tinto. They are buying car companies like Volvo, petroleum companies like Occidental Petroleum, energy companies in Brazil, infrastructure companies, agriculture companies, land in Africa, Australia and South America, etc. The list is long and growing everyday. And they don’t care what they have to pay for it. They know that one day they will control huge markets and this will keep the resources coming to them. They also know that those very assets will increase in value as the crisis unfolds. So they don’t really care what they have to spend.
But this is a shrewd way to unload dollars into tangible assets that are not in dollar-based economies. Those assets will produce revenue in other currencies. China is buying up the world, and nobody will be able to take it from them. China is not conquering the world by military might. It is doing so by become the world’s CEO. And it is all thanks to low U.S. interest rates that for years fueled the U.S. economy. Now that money is gone. It will never come back.
And it was planned. Under Alan Greenspan, the Federal Reserve created the asset bubbles that are now popping one by one, by lowering interest rates to bolster the economy. Now we are facing the backlash and Alan Greenspan has conveniently retired.
In the mean time China is trimming their purchases of U.S. Treasuries and starting to purchase bonds in other currencies. This is one of the things that is forcing the Federal Reserve to purchase U.S. Treasuries so that the government can continue to operate. China is cutting back, but it is leaving the U.S. in debt to the Federal Reserve while pumping trillions of dollars into the market, which is deflating the dollar dramatically.
But China is also joining with other nations in an astute move. They started having secret meetings with Gulf State Arabs. Western countries knew about the meetings, but they didn’t know the details of the discussions. But it is now beginning to be understood what they are planning. “In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council.
“Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
“These plans will change the face of international financial transactions,” one Chinese banker said. “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.”
Friends, once oil is no longer priced in dollars that will be the end of the dollar as the world’s reserve currency. When I first heard the financial leaders talking about ending the U.S. dollar’s dominance as the world currency, I wondered how they are going to do it. Now I see how it is being done.
In a 2008 interview with the Financial Times, Jim Rogers, one of the most successful investors in the world, said that he wants to get out of the dollar because “it is a flawed and maybe, even, doomed currency.”
On another occasion he wrote, “The dollar is not just in decline; it’s a mess. If something isn’t done soon, I believe the dollar could lose its status as the world’s reserve currency and medium of exchange, something that would lead to a huge decline in the standard of living for U.S. citizens like nothing we’ve seen in nearly a century.
Brazilian economist Ricardo Amaral recently wrote “There are many reasons why the US economic and financial system is heading into the ‘Perfect Storm’ resulting in the final collapse and meltdown of the US dollar.”
“The United States had a good run during the last 60 years, and enjoyed it’s very special status as the main world reserve currency, but if you are smart enough to connect the dots then you will realize that the U.S. dollar has reached the end of the line.
“There’s no safety nets left today in the United States, and when the stampede starts out of the US dollar it will create the biggest international monetary crisis the world has ever seen; the ‘Mother’ of all international monetary crises, and the final collapse and massive meltdown of the U.S. dollar. The world economy and financial system is a very complex system, it’s like a dynamic jigsaw puzzle where the parts keep moving, and the jigsaw puzzle evolves into something else.”
Don’t think that if you live outside the U.S. that the coming economic collapse of the U.S. dollar is not going to affect you. The IMF isn’t really interested in protecting you. It is interested in protecting globalist plans.
On March 2, 2011 the Wall Street Journal published an article titled: Why the Dollar’s Reign Is Near an End, the author said, “I believe that over the next 10 years, we’re going to see a profound shift toward a world in which several currencies compete for dominance.”
“The impact of such a shift will be equally profound, with implications for, among other things, the stability of exchange rates, the stability of financial markets, the ease with which the U.S. will be able to finance budget and current-account deficits, and whether the Fed can follow a policy of benign neglect toward the dollar.”
Did you hear what he said? In essence, he said that the impact of the shift away from the dollar will be influenced by the ease with which the U.S. will be able to finance its budget and current deficits. The fact is, that the U.S. will not be able to do this. The Federal Reserve is doing what it can to hold the economy together until such a time as the shift away from the dollar can be done successfully. Eventually, they will have to replace the dollar with another currency, like the Amero, or some other thing.
On February 10, 2011 the International Monetary Fund issued a report calling for an alternative to the dollar as the worlds reserve currency. “The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system… The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.”
In other words, the IMF wants to become the world’s lender instead of the United States. SDRs or Special Drawing Rights are based on a weighted basket of international currencies. The bottom line, as best as I can understand it, is that world economic leaders are attempting a controlled crash of the U.S. dollar while protecting other currencies as best they can. They want a reserve currency that is under globalist control. They will achieve it eventually.
And this is where prophecy intersects with the global economy. Revelation 18:15 tells us that the “merchants of the earth” are in cooperation with Babylon, the world power with a mixture of church and state, to make themselves rich. These central bankers and globalist financiers are in a conspiracy with the Vatican to control the world’s wealth. They deal in many precious things, but most of all they deal in “the souls of men.”
Listen to it: “And the merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing.” This is talking about the time when Babylon is punished. But it is also telling us what is happening now. These central bankers and economists are getting more power and wealth as they work with Rome. And Rome gets more power too.
Many of these men who are involved in this globalization of the economy have sold their souls to Rome. They may not even realize it, but they are in a game, which has an end. That end is the collapse of the financial system when Rome reaches its heights of power.
But first they have to globalize the economy, and this is what is happening right now. They have to get control away from the U.S. dollar without jeopardizing the system that feeds them their power and wealth. But the time is coming when it will all collapse around them.
Verse 17 says that in “one hour so great riches is come to nought.” And verse 19 says that they will “throw dust on their heads” and cry.
Revelation 13:8 tells us that “all that dwell upon the earth shall worship him [the papacy], whose names are not written in the book of life of the Lamb slain from the foundation of the world.”
In order for that religious power to enforce a global form of worship, there must first be a global political order and a global economic order. This is what is being constructed right now. And it will have serious implications for you and your family, both in the United States and in other nations. Once the U.S. dollar is no longer the world’s reserve currency, then Rome will be much freer to manipulate global assets through the merchants of the earth, and ascend to the heights of power described in Revelation.
The final test, the Sunday law, is closely linked to the coming financial collapse. As distress of nations with perplexity increases, the people of the United States will feel that God has abandoned them and will seek to bring the nation back to God. They will press their legislative bodies to enact religious laws that will require all to worship according to the principles of Roman Catholicism, particularly in Sunday worship. National ruin will not come before Sunday worship laws, and perhaps even anti-Sabbath laws are enacted. But they will surely lead to national ruin.
Listen to this statement from Last Day Events, pg. 133-134. “When our nation, in its legislative councils, shall enact laws to bind the consciences of men in regard to their religious privileges, enforcing Sunday observance, and bringing oppressive power to bear against those who keep the seventh-day Sabbath, the law of God will, to all intents and purposes, be made void in our land, and national apostasy will be followed by national ruin.”
The shift away from the dollar may not be the final collapse of the United States, but it will certainly move us a good long way along those lines. As economic distress increases, watch for parallel movements in the religious world as we near the close of probation.
The most important thing for you, my friend, is to get your name into the Lamb’s book of life. Nothing should be allowed to stand in your way of achieving that. Your heart and the hearts of your children and family must be surrendered to His power. Let Him infuse you with His grace so that you can be an overcomer and live by all of His Ten Commandments. Friends, it’s not too late for you to turn around now. It is not too late for you to make a new start and invite Jesus into your life. It is not too late for you to gain the victory over all your sins so that you will be prepared to receive the latter rain and survive the coming economic collapse.
In addition to your spiritual preparation you should do some other things. Get out of debt like credit card debt, especially Also get out of any other debt that is not related to your mortgage on your home. Do not live beyond your means. Also get out of the city if you live in one. Learn to grow a garden and an orchard. Live more simply. You don’t need all the technology and gadgets.
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