Will Gold Replace the Petrodollar?

While America keeps wracking up debt and punishing other nations with financial freezings, the day is soon coming when “faith and confidence”in the US Dollar will suddenly vanish.  By the looks of things and the prophecy in the Bible, silver and gold may play a part in the new financial system. Not you and I paying with gold coins but the currency will be backed by precious metals.  As we have said numerous times, we hope that America’s collapse is triggered by the rapture...and we pray that Jesus comes for us really soon!

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 For decades, foreign nations have tried to get away from the dollar. They disliked America’s financial dominance by holding the world’s reserve currency. The dollar has its great dominance in the oil market. The petrodollar system is essentially the global practice of exchanging oil for US dollars rather than any other currency. This means that no matter what country is buying the oil, they pay the oil-producing country in petrodollars, which are denominated in US dollars.

The dollar-based system survives on trust. People know it’s not going to lose any major value in a short period of time. Because there are so many dollars in circulation, traders can move huge mountains of cash in various transactions in a matter of seconds. In 2018, the average total volume of treasury securities traded per day was over 547 billion US dollars. A dealer in France can get a dollar-based loan and buy $200 million worth of steel out of Australia.

China has tried to convince the world that its renminbi would make a good replacement for the dollar. President Xi traveled the world, making one trade agreement after another that promised both nations would use their own currency for trade. Nothing happened because few people trust a currency that is completely controlled by the Chinese government. If a financial crisis occurred in China that caused the value of the renminbi to collapse, holders of the currency would suffer major losses.

A key driving force in why nations wanted to get away from the dollar is the American practice of using it as a weapon against other nations. Since 1990, the use of sanctions by the United States significantly increased, and since 1998, the United States has established economic sanctions on more than 20 countries.

The Russians had their bank accounts locked up because of their invasion of Ukraine. It’s not just thugs and dictators that have to toe the line with American policy. Banks in Switzerland long had a history of secrecy with money. Uncle Sam said open your accounts so we can look for American tax dodgers, or we will kick out the dollar trade system. Switzerland had no choice but to comply.

In many Latin American nations, it is very hard to open a bank account. The Fed assumes that anyone who sends money south of the border is dealing in drugs. You are a criminal until proven innocent. Many of the laws that were established after 9/11 have motivated the US government to stick its nose into everyone’s personal business.

Another motivation for a dollar replacement is the massive national debt and trade deficit the US has with the rest of the world. Our current debt has reached $31.4 trillion, which was only $13 trillion in 2010. Our trade deficit is equally out of control. Each month foreign countries ship us $100 billion more in Goods  than we ship to them.

International bankers are increasingly coming to the conclusion that a gold-based system is the only way to wrestle control from America and put the US on a financial diet. Gold has no counterparty risk. If a nation has a ton of gold in a bank, there is no one in Washington who can press a button and make it worthless.

No rich nation should ever allow gold to leave its border. When you read about countries selling off their reserves, it’s because they’re in a state of economic collapse. What allows a nation to retain its gold is a financial system that makes gold transactions on a fractional reserve system, the same way the dollar operates. A nation may have gold worth on the market $10 billion, but it can back a banking system of $100 billion.

If a nation suffers high inflation, the citizens can be protected by the value of gold soaring in price. India has suffered many financial calamities over the years. Millions survived the hardship by having their core assets in gold.

One overhanging reason why we need a financial system is related to what happened during the Great Recession of 2008-2009. The world had a massive meltdown with losses reaching, in one report, $26 trillion. The Federal Reserve is the only entity that could produce dollars, so it made good all these losses. A little over a decade later, the world is right back to those same levels of derivative and leverage.

I don’t know what role the Antichrist would play in a gold reserve system. Since he will be the man with all the answers, he may introduce several of its key components.

“Neither their silver nor their gold shall be able to deliver them on the day of the wrath of the LORD. In the fire of his jealousy, all the earth shall be consumed; for a full and sudden end he will make of all the inhabitants of the earth” (Zephaniah 1:18).

https://www.raptureready.com/category/nearing-midnight/