Here we go again! A new threat of war, but a different place. This time Islamist Militants are going from town to town in Iraq taking over key Sunni cities, as they vow to take Baghdad the capital. There have been many uprisings and takeovers in the past, and the US never even lifted a finger over it. But Iraq is proving to be a different story as Obama and all the US Senators combined, are calling for some type of military action in Iraq to stop this militant take over. In fact, Obama is saying all options are on the table. But why is it different this time?
The difference has to do with US interests, which happens to be in Iraqi oil. In 2003, under the Bush administration, the US went into Iraq for humanitarian reasons, to overthrow Saddam Hussein, and allow the people to have control over their assets so they could buy and sell and basically have an income for themselves. Since Saddam was withholding basic necessities from the people, an agreement was made, that once the dictator was overthrown, the US would provide food in exchange for oil. Unlike the failed oil for food program from the past, this time the program would be overseen and run by the UN. The sale of the oil, was set up in an escrow account as a type of development fund for Iraq. Along with this deal, the Iraqi’s were guaranteed absolute legal protection for US interests in Iraqi oil. This means that all loans pertaining to oil was backed up by the US. Credit and direct financing were also obtained through the US. Any and all structural problems involving the oil would be fixed and financed by the US even in the event of a terror attack. So this agreement alone, made by Bush is enough in itself to prompt an airstrike against Islamist extremists but there is more.
The US is producing oil in Iraq. Our ability to manufacture oil in Iraq at lowered costs, is undoubtedly what is keeping prices down at the pumps. Major oil producers Opec and Exxon held an emergency meeting in Iraq today, and made their fears known to President Obama. The biggest fear is that there are many pipelines running through Iraq, a major one going to Turkey. If any of these are sabotaged, oil will be shut off, and production will go down. And according to the law of supply and demand, if there isn’t enough to go around, prices will sky rocket around the globe.
In response to the US saying they need to protect their interest in Iraq and the threat of oil being cut off, the US stock market took a dive with the DOW falling over 109 points. Oil stocks peaked at over 110 dollars per barrel, but quickly fell off. Gas prices at the pump reached to $3.92 per gallon and show signs of rising. In 2008 unsustainable oil prices reached $124 a barrel and $4.11 at the pump. This crisis in Iraq could quickly escalate to those levels and beyond, putting our economy into a tailspin.
Once prices at the pump get so high, consumers cut back, causing gas prices to suddenly plummet. This creates a deflationary spiral that is difficult to get out of. When investors see the oil and gas prices plummeting, they pull out, causing an economic collapse.
There are many reasons why a war with Iraq is inevitable. But the fear of losing the supply in oil in Iraq, causing gas prices to sky rocket, is the reason why the US must intervene. High gas prices will bring the US economy to a halt. Consumers will cut back and retailers will pass the added expense onto the consumers causing prices on everything to go up. Consumers stop buying, demand is down, manufacturing stops, prices begin to plummet, people will start losing their jobs as consumer buying power is lost.
The last time this happened in 2008, the US acted quickly to counteract the deflationary effects by printing money.The extra printed dollars created inflation in the US, by making the dollar worth less. The US then was able to sell the printed money overseas in which foreign countries used it for collateral on loans. But since the value of the dollar has dropped, world banks are becoming more and more reluctant to accept the dollar as collateral, because it is not as worth as much as it used to be. So printing money may no longer be a viable option for the US. The bottom line is that if the US was to go through another economic collapse like the one in 2008, this time there may be no way out.
How likely is it that an economic collapse could happen again and soon? Considering the current circumstances, a US intervention has to take place in Iraq or gas prices will sky rocket quickly. Also stock markets will be affected and could crash just because of the fear of what will happen to the US oil interest. So the US has no choice but to act quickly before the oil is jeopardized. As the US intervenes, the stock market will be very vulnerable until the time that a solution has been reached. In this case, it will happen when the Islamists are controlled and removed from the region. But this may be more easier said then done. It depends on who is backing them, how many there are, etc. If they are being backed by Iran and Russia, it could cause a full blown mid east conflict, which could go on for years. Prices at the pump and the stock market would be compromised during this time. The US having an already fragile economy from the weakened dollar may gradually lose its financial strength being forced to put everything into this war.
There is a very strong possibility that these Islamists are being funded by Russia in an effort to provoke a war. Russia having a fragile economy now due to the sanctions placed on them because of the Ukraine, may see this as an opportunity to acquire resources and strength. If the terrorists are successful at taking Iraq and its oil, then Russia, backing them up if needed, could come in and possess it. They will no longer need to worry about the state of their economy, as they could sell the newly acquired oil. But they have to go through the US first and the US will not give it up without a fight. According to this theory, if the US intervenes, Russia and its allies such as Iran, will surely back up the Islamist terrorists as they undoubtedly promised that they would. It is apparent that this situation could quickly escalate into World War Three.
The events happening here with Iraq is one of the biggest signs yet that the tribulation is about to begin, as America’s oil is being threatened, which could drag the whole world into war. These are perilous times and we are on the verge! Jesus is surely coming, just as He promised! No matter how these events play out, one things is for sure, we are truly living in the end days. The tribulation hour and the rise of the Antichrist is upon us. The Bible foretells of a great world wide famine and economic collapse that is coming, during the hour of tribulation. Give your life and your heart over to Jesus today and He will save you from the horror that is about to come upon the earth. The signs are all here that he will be coming soon to get his bride. These are all the people who have asked Jesus into their hearts and have turned from their sins. Don’t be left behind, now is the time, all are invited to come to Him! Its a free and open invitation so what have you got to lose? In fact you have everything to gain so ask Jesus into your heart today before its too late!