News Review - 13 Apr 2018
perfectStormPetroDollar

US trade wars with China and Europe… Petrodollar in trouble… Europe swings to the right… Germany looks to Russia.Are we headed for…

The Perfect Storm?

Great changes are happening in world trade. Until now, much of America’s wealth has come from the fact that the US dollar is the world’s reserve currency. This is vital in the oil trade, where the petrodollar has been the main medium of payment – until now. Now it is under serious threat – from Russia, China and several other nations. As the following article points out: “…if the petrodollar dies, so does America as a superpower.”

The Petrodollar System

Vladimir Putin is stripping America of its superpower status. But he’s not using bombs or tanks to do it. He plans to destroy the one thing that underpins demand for the dollar and Americans’ way of life: the petrodollar system. This was the secret pact Kissinger struck in the vast oil rich deserts of Saudi Arabia.

America guaranteed to defend Saudi Arabia and the House of Saud in perpetuity if the Saudis would sell oil in dollars. But many countries resent this system, and their leading spokesman is Putin. There’s a new Colder War going on, and it’s threatening the only thing holding America at the top.

The stakes have never been higher… we’ve never been more vulnerable. Because if the petrodollar dies, so does America as a superpower.( internationalman.com)

America’s Death Throes

Here is how the Russians view the situation:

China and Russia have already ditched the US dollar in their vast energy trade. Now China is leveraging Saudi Arabia to also abandon the greenback for oil sales. No wonder, it seems, that US policies are increasingly lashing out.

Now, only a few weeks ago, China and Saudi Arabia – the world’s second-biggest oil producer – reportedly launched earnest negotiations for future energy fuel trade to be conducted in yuan. Commentators say Saudi Arabia has little choice in the matter, since China has been progressively reducing the kingdom’s market share with other oil exporters, like Russia and Iran. If the Saudis want to maintain exports to the world’s biggest economy, then they will have to do their business in Chinese currency, not the US dollar as they have customarily done.

Randy Martin, an American political analyst, said the long-anticipated decline in the petrodollar is picking up pace.

The petrodollar is in decline, and consequently the entire financial system that undergirds the western economies,’ Martin said. ‘China and Russia have laid the global economic foundation for the new “Silk Road” and the emergence of a new Eurasian economy that puts the US and its petrodollar on the outside. That leaves the US dollar and its economy in tatters…’

The demise of the petrodollar is the telltale sign of another empire sunsetting. But that transition to a more reasonable and sustainable world order is akin to negotiating a way out of a minefield.

Fortunately, Russia and China may have sufficient military power to deter the desperate, waning American empire from trying to incite catastrophic war. However, death throes are seldom rational events.( sputniknews.com)

Sign Of US Dollar Collapse?

“If we want to better understand the answer to the elusive question of ‘When will the fiat US dollar collapse?’, we have to watch the petrodollar system and the factors affecting it. This is critically important, because once the dollar loses this coveted status… the destruction of the dollar is going to wipe out the wealth of a lot people, and that will cause political and social consequences that will likely be worse than the financial consequences.

By considering Ron Paul’s words, ‘We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros…’ we will know when the dollar collapse is imminent.( munknee.com)

Dump The Dollar?

There have been several attempts by different nations to “dump the dollar”. Both Iraq and Libya tried – and failed – crushed by US might!

Iraq Dumps Dollar

October 2000 - “In October 2000 Iraq insisted on dumping the US dollar - ‘the currency of the enemy’ - for the more multilateral euro.” ( theguardian.com)


11 September 2001 - “19 militants associated with the Islamic extremist group al-Qaeda hijacked four airplanes and carried out suicide attacks against targets in the United States. Almost 3,000 people were killed during the 9/11 terrorist attacks, which triggered major US initiatives to combat terrorism and defined the presidency of George W Bush.” ( history.com)

First - Iraq Invaded!

March 2003 - America and allies invaded Iraq – Saddam Hussein was captured and killed. End of problem!

Next – Libya Dumps The Dollar

“Libya is Africa‘s largest oil producer. But one possible reason in particular for Gadhafi’s fall from grace has gained significant traction among analysts and segments of the non-Western media: central banking and the global monetary system.

According to more than a few observers, Gadhafi’s plan to quit selling Libyan oil in US dollars — demanding payment instead in gold-backed ‘dinars’ (a single African currency made from gold) — was the real cause. The regime, sitting on massive amounts of gold, estimated at close to 150 tons, was also pushing other African and Middle Eastern governments to follow suit.

And it literally had the potential to bring down the dollar and the world monetary system by extension, according to analysts.( thenewamerican.com)

True Motive For Libya Intervention Confirmed

“Newly disclosed emails show that Libya’s plan to create a gold-backed currency to compete with the euro and dollar was a motive for NATO’s intervention. French intelligence ‘discovered’ a Libyan initiative to freely compete with European currency through a local alternative, and this had to be subverted through military aggression.” ( foreignpolicyjournal.com)

Can China Succeed In Killing The US Dollar?

“Muammar Gaddafi wanted to shatter the dominance of the greenback in the Middle East by introducing gold-backed dinar, but failed. China has a chance to finish what he started, one industry expert has told RT.

‘Ideas related to oil trade in currencies other than the dollar arose more than once. Some of them were severely suppressed by the United States, one example is Muammar Gaddafi, who proposed the introduction of a regional currency gold dinar and trading oil in the Middle East in this currency,’ Aleksandr Egorov, foreign exchange strategist at TeleTrade, told RT.

However, this time, an attempt to oust the dollar could be successful. China has launched oil futures backed by yuan, and Beijing has what Gaddafi didn’t, according to the expert.

‘Along with the Chinese role in the global economy and the growing interest in the renminbi, China is also protected by a nuclear shield. It can afford to try to shatter the monopoly in oil trade. This will give even more weight to the Chinese yuan. In addition, China’s economy is the world’s largest consumer of oil, and consequently, all world producers of raw materials will have to reckon with the strategy of the Chinese authorities,’ Egorov said.

According to the analyst, the timing for the launch of the petro-yuan is perfect. Key oil producers Russia, Iran and Venezuela are under pressure from US sanctions, and it is a good moment for them to ditch the dollar in oil trade and substitute it with the yuan.” ( rt.com)

China Prepares Death Blow To The Dollar

“On March 26 China will finally launch a yuan-dominated oil futures contract. Over the last decade there have been a number of ‘false-starts,’ but this time the contract has gotten approval from China’s State Council.

With that approval, the ‘petroyuan’ will become real and China will set out to challenge the ‘petrodollar’ for dominance. Adam Levinson, managing partner and chief investment officer at hedge fund manager Graticule Asset Management Asia (GAMA), already warned last year that China launching a yuan-denominated oil futures contract will shock those investors who have not been paying attention.

This could be a death blow for an already weakening US dollar, and the rise of the yuan as the dominant world currency.

The petrodollar is backed by Treasuries, so it can help fuel US deficit spending.

Take that away, and the US is in trouble. It looks like that time has come…( oilprice.com)

The US Is In Trouble – Serious Trouble!

Iraq and Libya were relatively easy targets – but China and Russia are vastly different propositions. Both can defend themselves – ultimately with nuclear weapons!

And then there is the debt – a huge mountain of debt.

US Debt - $21,031,067,004,766.00 – and rising fast!
( usdebtclock.org)

It is hard to visualize such a huge amount. However, if we look at the interest which America has to pay on this debt, it is a much more manageable number – a mere $500 billion – every year.

Even this amount is staggering! There are only 25 nations on earth who have an annual gross domestic product (GDP) in excess of $500 billion! (data from statisticstimes.com)

America’s debt situation is now at the critical point where they have to borrow more money just to pay off the interest! The debt level is increasing, as the following article points out!

“US Government debt levels have risen above $21 trillion for the first time yesterday, standing now significantly higher than the yearly tax receipts income of around $3.27 trillion, half a trillion of which goes towards debt interest payments.

The borrowing rate is increasing at an accelerating speed. It used to be half a trillion a year, it now stands at $1 trillion every six months.( trustnodes.com)

How Serious Is The Situation?

Just review a few of the quotes from the articles above:

“… if the petrodollar dies, so does America as a superpower.”
Vladimir Putin is stripping America of its superpower status.”
“… that will cause political and social consequences that will likely be worse than the financial consequences.
Gadhafi …literally had the potential to bring down the dollar and the world monetary system.”

We have to keep in mind the prophecies concerning modern day Israel – America and Britain.

I also will do this unto you; I will even appoint over you terror…(Leviticus 26:16)

And I will break the pride of your power…(Leviticus 26:19)

The sword without, and terror within…(Deuteronomy 32:25)

The big question is, will America embark on yet another war to “save the dollar”?

World Overview

When we look at the Petrodollar problem in the context of world events, the situation looks even more serious.

Germany: The Enemy Within – At The Top

“There’s an enemy within the new German government: the far-right Alternative for Germany (AfD), a xenophobic nationalistic party that clambered into the Bundestag for the first time this term. Or rather, the toxic rhetoric of that party has found its way into the coalition. The far right’s noxious populism has seeped into the highest halls of power, even to those surrounding Chancellor Angela Merkel.

In the administration’s first week in office, before Merkel had the chance to breathe, members of her own freshly picked Cabinet started attacking her from the right, using the arguments and jargon of the AfD - exactly what they agreed to avoid. The chief culprit was a familiar friend/foe: the new interior minister, Horst Seehofer of the Christian Social Union, or CSU - which is the conservative sister party of Merkel’s own Christian Democratic Union, or CDU.

Seehofer demanded, for example, that his ministry be renamed the ‘ Federal Ministry of Interior, Building and Heimat.’ Heimat can be translated as ‘homeland,’ but it is a very loaded term in German as it was central to Nazi ideology and its ethos of territorial expansion. All Germans in Europe, preached Hitler, belonged within the borders of the German Heimat. This ethnically pure homeland was folkish, seamless and imbued with the essence of Germanness.

Seehofer shocked his Cabinet peers with a surprise attack on one of the cornerstones of Merkel’s 12-year chancellery. ‘ Islam,’ he said, ‘does not belong to Germany,’ contradicting Merkel’s express words to the contrary. ‘Germany is shaped by Christianity. This includes free Sundays, church holidays and rituals such as Easter, Pentecost and Christmas’… Seehofer’s words could have come straight from the mouths of the AfD’s leaders.( cnn.com)

Germany Needs Russia

“Angela Merkel’s Foreign Minister said Germany needs to regain trust with Russia as splits emerge in the Chancellor’s Cabinet over how to deal with Vladimir Putin. The provocative remarks from Heiko Maas come just weeks after Russia was roundly condemned by the international community for poisoning double agent Sergei Skripal in Britain. Mr Maas, of Mrs Merkel’s coalition partners the Social Democratic Party (SPD) said: ‘We need Russia as a partner to settle regional conflicts, for disarmament and as an important pillar of multilateralism. We are therefore open for dialogue and are trying to rebuild trust bit by bit if Russia is ready’.” ( express.co.uk)

The World Is Descending Into Tyranny

It wasn’t supposed to happen this way. After the Soviet Union’s collapse in 1991, democracy was supposed to be irresistible. While some of us were more skeptical than others, even cynics allowed that freedom seemed to have the upper hand. Instead, barely a quarter-century along, democracy and political freedoms are newly embattled, as one society after another defaults to reborn tyranny, striding behind religious extremism, xenophobic nationalism — or both.

On Sunday, Vladimir Putin was re-elected as Russia’s president with almost 77 percent of the vote. With his relentlessly propagandized image at home, Putin would have won a free election, but that wouldn’t have been enough: He feels the need of an unassailable mandate, of recognition as his country’s savior. So serious opposition candidates were excluded (and one murdered), while ballot box stuffing was shameless. Czars are just that way.

Days earlier, China’s President Xi Jinping engineered his lifetime tenure (he didn’t bother with the charade of a nationwide vote). Xi’s the most powerful leader China has had since Mao in his heyday, and Mao cost China tens of millions of lives.

In NATO member Turkey, President Recep Tayyip Erdogan, a would-be sultan, has dismantled the constitution; jailed tens of thousands of opposition members; staged massive show trials; destroyed freedom of the press; attacked minorities; empowered religious fanatics; and, now, invaded Syria not to defeat the remnants of ISIS, but to crush our Kurdish allies.

In Egypt, where democracy came and went in a blink, President Abdel Fattah al-Sissi rules ruthlessly, while Syria’s Bashar al-Assad has survived every prediction of his fall. In Iran, Ayatollah Ali Khamenei, unelected, remains the undisputed ruler. Even Kim Jong Un, a tin-pot despot, has gained international recognition at a level his predecessors never achieved.

In NATO and European Union members Hungary and the Czech Republic, strongmen dominate the political scene. Romania and Slovakia struggle to maintain democratic forms, and even Poland has seen its constitution undermined. Corruption, tyranny’s handmaiden, is everywhere. In Italy and France, pro-Putin, neo-fascist parties are political forces to be reckoned with, while Moscow also backs far-right parties in Germany and Austria.

Tyrants may oppress you. They may lead you into disastrous wars. But they don’t demand that you take personal responsibility, that great burden of democracy. And every tyrant worth his salt provides scapegoats for his people’s failures: It’s never your fault, it’s them. It’s a message demagogues promote even here. Tyrants offer certainty. All you have to do is let them run things. It’s a deal too many humans gladly embrace.

Meanwhile, freedom means insecurity, and democracy signals chaos to unprepared societies. As we’ve seen for almost three decades now, the sudden imposition of democratic forms on traditional societies is like handing a child a grenade.” ( nypost.com)

This Article Sums Up Today’s World. CHAOS!

Man has tried many forms of government – and none of them work. Today’s world stands testimony to this fact. Mankind rejected God’s way of life, and today we see the results. Worse still, from a human standpoint, there are no solutions in sight – because mankind is blind to the cause of all his problems.

At the founding of America, religion was the anchor. Laws were based on sound principles laid out in the Bible. Not any more!

We’re At The End Of White Christian America

“In a report entitled America’s Changing Religious Identity, the nonpartisan research organization Public Religion Research Institute (PRRI) concluded that white Christians were now a minority in the US population. In 1976, eight in 10 Americans were identified as such, and a full 55% were white Protestants. Even as recently as 1996, white Christians were two-thirds of the population.

The ‘youngest’ faiths in America – those with the largest proportion of young adherents – are non-Christian: Islam, Buddhism and Hinduism. This reflects the second big driver of white Christian decline: both America and its family of faiths are becoming less white.( theguardian.com)

This World - No Understanding Of World Events!

Many years ago, Mr Armstrong warned:

“This may sound incredible, but it’s true. Editors, newscasters, foreign correspondents do not understand the real meaning of the world news they report, analyse and discuss. Heads of government are utterly unaware of the true significance of the very world-shaking events with which they deal. They have no conception of where these events are leading. Incredible? Perhaps – but true!” ( The United States & Britain In Prophecy - Chapter 1)

But there is a sure solution coming!