A development has occurred in the global oil markets which could have very serious consequences for the US dollar, the US Federal Reserve Board and the USA itself. The first two links below [first, second] offer information that India is going to pay for Iranian oil in gold, and that China may do so as well. If this happens, the longstanding tradition of the oil markets being priced in US dollars will begin to crumble as nations seek ways to protect themselves from what they see an inevitable crisis in the US dollar. One can hardly blame the nations for taking such actions as the US dollar and federal budget have been so mismanaged for so long by both Republican and Democrat White Houses and Congresses that the US dollar/US federal budget situation is approaching a point where a major crisis is inevitable.
When/if the US dollar gets squeezed out as the major currency of trade in settling global oil purchases, the consequences for the dollar could be very serious as the world will no longer need US dollars any more to settle oil contracts. This will most likely result in a falling dollar and rising prices in gold and whatever other currencies take the US dollar’s place in the oil markets. However, it is not just in the oil markets where the US dollar is being squeezed out of its role as the global reserve currency. The articles together report that many nations are taking steps to eliminate the US dollar from their bilateral trade transactions of any kind so they are insulated from a future expected dollar crisis. The national bilateral pairs where the dollar is reportedly being dropped are China-Japan (discussed in a previous post), India-China, Russia-China, India-Iran and Brazil-China. These are just the ones being openly reported. Who knows how many other nations are taking similar steps without publicizing them? It is clear that the rest of the world sees that the endless profligacy in Washington, DC and the refusal of American leaders to face reality about the necessary cuts and actions that are urgently needed means that they must prepare for the eventual demise of the US dollar in its role as the global reserve currency.
Are Americans being told about this very ominous trend and the even more ominous consequences it will have for inflation, jobs, etc. within the US economy? Of course not. Americans are being fed a diet of endless “bread and circuses” distractions in sports matches, the GOP debates, endless inane TV shows, etc. Hopefully, readers of this blog are taking the steps outlined in my article, Should Christians Prepare for Future Hard Times?, available for free at this website. The masses will be caught flatfooted by the inevitable dollar crisis. You have been warned and should not be caught surprised by the event when it happens.
The final link mentions the Indian plan to pay for Iranian oil in gold and the efforts of nations to exclude the dollar in their bilateral trades, but it also has a large amount of other eye-opening information about the overall global financial markets which, if true, augurs very ill for the future of America and its citizens. Eventually the truths about all market manipulations will be fully made known. Luke 12:3-4 cites Jesus Christ as saying all the things done in secret will eventually be known to all (whether in this life or at the Judgment seat of Christ when he returns to judge all). However, I think other nations are fully aware of what is going in all US-dollar-based national and supranational entities. That is why they are taking ever-bolder steps to remove the US dollar from their global trade actions.
All of this means that we are progressing closer to the prophesied collapse of the global, dollar-based financial system that is called “Babylon the Great” in Revelation 17-18. Revelation 17:16 has language which indicates that this collapse will not result in a smooth segue into a new global financial system, but that it will be a hard fall instead. Indeed, wars may be fought as the global financial systems realign. It should also be noted that the “seven heads and ten horns” that cooperate to pull down the current global financial system are not named. I expect that it will include nations from both western and eastern bloc nations. It is critical to realize that the “seven heads and ten horns” of Revelation 17 are NOT the Gog-Magog alliance or its eventual targets: the modern tribes of Israel who lead the western nations. The Gog-Magog alliance will attack the western nations at the very end of this age toward the end of the beast system’s reign as Ezekiel 38-39 makes very clear while the collapse of Babylon the Great’s system occurs before the beast system even comes into being (as Revelation 17:12 states).