Iran Vs. America … Round Two
Woe to those who plan iniquity, to those who plot evil
on their beds! At morning's light they carry it out because it is in their
power to do it. They covet fields and seize them, and houses, and take them.
They defraud a man of his home, a fellowman of his
Therefore, the LORD says: "I am planning disaster
against this people, from which you cannot save yourselves. You will no longer
walk proudly, for it will be a time of calamity. (Micah 2:1-3)
Keep your lives free from the love of money and be
content with what you have, because God has said, "Never will I leave
you; never will I forsake you."
So we say with confidence, "The Lord is my helper; I
will not be afraid. What can man do to me?" (Hebrews 13:5-6)
With all the talk about Iran's suspected nuclear capability and what
the world should be doing to stop its development, a darker and even more
sinister Iranian plot against the US is receiving little public
attention. It concerns how the
world currently purchases oil, and how Iran, the
world's number two producer, is working to change
Today there are two oil exchanges in the world, in
New York and London, and both require payment in American
dollars. This means that any oil
purchasing country has to keep large reserves of US currency on
hand to fund their ongoing needs.
Most Americans assume that the value of their money is pretty constant,
but like just about everything else in the world the dollar's value in
international markets is determined by the demand for it.
As countries purchase and pay for oil, their dollar
reserves are depleted and they have to buy more of them to make sure they'll
always have enough for future purchases.
As the price of oil keeps going up an artificial demand for the US
dollar has been created that according to some analysts has inflated its value
on world markets by as much as 25 to 40%. But since both of the world's oil
exchanges are owned by American interests, there's not much anyone can do
about it. The US benefits
greatly by this as it keeps the prices of foreign goods Americans buy lower
than they would otherwise be, and also makes the purchase of foreign oil much
How In The World Did That
How does a country get that kind of clout in the world
market place? Good question, and here's the briefest of summaries in
answer. I developed this summary
in part from an excellent article entitled The Proposed Iranian Oil
Krassimir Petrov. Petrov is an
Austrian Macro Economist/Investment Strategist with a Ph. D. in economics from
State University. He teaches Macroeconomics,
International Finance, and Econometrics at the American University in Bulgaria. You can read the entire article, and I hope you
do, at http://www.masternewmedia.org/.
American dollars were backed by gold, and by the early 20th century
the US economy had become the world's
strongest. But recovering from
the Stock Market crash and Great Depression required such a level of spending
that Franklin Roosevelt had to detach the dollar from its gold backing in
1932. The US simply didn't have enough gold
to cover all the money he needed to print.
later the US, having required gold as payment
for weapons and war materiel it sold to other countries during WW2, owned most
of the world's gold. This allowed
the US to restore the gold standard
(but only for dealing with other nations) in 1945, making the now strong again
dollar the reserve currency of the world.
In the mid 1960's
Lyndon Johnson's simultaneous goals of fighting the Viet Nam war and
eliminating poverty at home required detaching the dollar from gold again to
permit the printing of enough currency to meet the expense of these two costly
goals. (Both were failures.) When nations demanded gold for their dollars as
they had been promised since 1945, the US refused and
formally defaulted on its commitment on August 15, 1971. It was tantamount to declaring
bankruptcy, but the US was powerful enough otherwise to get away with paying
the nations of the world for the goods and services they had provided in
dollars backed only by the "full faith and credit" of the USA.
year, to restore confidence in the dollar, the US signed an iron clad
agreement with Saudi Arabia, the world's largest oil exporter, where in return
for US support and protection, the Saudis agreed to only accept US dollars for
their oil and convinced the rest of OPEC to do the same. Now, even though other countries can't
get gold for their dollars, they can get oil. (Some speculate that the real reason
for the US war in
Iraq is that Saddam Hussein tried
to break this agreement and sell his oil for Euros and Yen. According to this view, the
US deposed him as an example to
keep other OPEC countries from following suit and causing the dollar to
And Now For Round Two
proposes to challenge the US by opening its own oil exchange called the
Iranian Oil Burse, or IOB, and permitting customers to pay in Euros, the
currency of Iran's largest trading partner.
They plan to begin offering their oil on the IOB beginning in March 2006. If successful, it means that countries
will soon have the choice of paying OPEC for their oil with inflated US
dollars or effectively receiving a 25% discount by purchasing it from
Iran in Euros. Just about every country in the world
will benefit greatly by this, especially the EU, whose currency would
immediately become much stronger and more stable in world financial
Everyone except the US that is,
where foreign oil costs would skyrocket as the dollar declined in value, as
would the cost of all other foreign goods. Within a few years, the
US economy would decline to near
third world status, and its national debt, which has again risen to record
levels, would be impossible to repay.
In short, the most powerful nation on earth would again be bankrupt as
countries around the world dump large portions of their dollar reserves to buy
Euros, driving its value even lower.
Some experts have calculated that this would be more
devastating to the US than
if Iran exploded a nuclear warhead in
one of our major cities or wiped out our electronics with an EMP detonation.
Even though America's
military power would still be intact, at least for the time being,
Iran would have done nothing that
could justify retaliation.
Iran could rightly say that they've
only employed a lesson from free market capitalism, providing the world a much
needed commodity at a better price.
The ten horns you saw are ten kings who have not yet
received a kingdom, but who for one hour will receive authority as kings along
with the beast. (Rev. 17:12)
This would also hasten the shift of global power from the
US to Europe as Bible Prophecy suggests. The Euro, which floundered following
France's defeat of the proposed EU
constitution, would become the world's financial
reserve currency like the dollar is now and the British pound sterling once
was. EU countries like
Italy that went off the
Euro in favor of their former currency, would come flocking back, and the EU
economy, already larger than that of the US, would get
a huge shot in the arm.
You Gonna Let 'Em Get Away With That?
Obviously, the US can't just stand by and let that happen, so
how does Iran expect to pull this off? After all, look at what happened to
Saddam. It turns out that there
are two things working in Iran's favor that Saddam didn't
have going for him. First of all
the US, thanks in no small
part to Iran and its
partner Syria, is deeply
entangled in a very expensive ($100,000 US per minute!) war in
Iraq with no quick end in sight.
Almost no one in the world believes that the
US could afford to engineer
a "regime change" in Iran
at the same time, with all that would entail, although that's eventually what
it will take to permanently stop Iran. But with Israel's help the US could use Iran's nuclear
ambitions as a pretext to mount a massive pre-emptive strike, temporarily
putting a stop to both the nuclear program and the IOB.
And that brings us to the second thing. Iran doesn't
have to succeed to win this battle. In fact, in some ways, the bigger the mess
they create, the better. Iran has
leaders who believe that by plunging the world into utter chaos they can
hasten the return of the Islamic Messiah, or Mahdi, the hidden 12th
Imam, and they believe the time is right.
In the latter part of their reign, when rebels have
become completely wicked, a stern faced king, a master of intrigue will
arise. He will become very
strong, but not by his own power. He will cause astounding devastation and
will succeed in whatever he does. He will destroy the mighty men and the holy
people. He will cause deceit to
prosper and will consider himself superior. When they feel secure, (by
means of peace, KJV) he will destroy many and take his stand against the
Prince of Princes. Yet he will be
destroyed, but not by human power. (Daniel 8:23-25)
To that end it appears from current news reports that
Iran has two potentially war
inducing events planned for March of 2006. The first is their initial underground
test of a nuclear weapon. (That
ought to put to rest the debate about just how close Iran is to
going nuclear!) And the second is
the opening of the IOB.
Either one should be enough to prompt a US (or Israeli, or both) attack, and that's
just what Iran's President wants. By getting a foreign, preferably
western nation to mount a pre-emptive attack on his country, the President of
Iran believes he can force the world into a war devastating enough to bring
the Mahdi back to Earth to judge Islam's enemies and inaugurate the promised
universal peace under Islamic rule.
Our last article gave you all the details on this.
Of course, you and I know that this plan will only work if
the King of the Universe is ready to fire the starting pistol to begin Earth's
race to the End Times. But it
sure will make the month of March one of the most exciting yet. Better stay
alert. If you listen carefully, you can almost hear the Footsteps of the