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Two monetary systems fight to the death as we approach the 70th anniversary of King Dollar

Apr 09, 2014

Former Assistant Treasury Secretary, Dr. Paul Craig Roberts, tells us how the recent Federal Reserve fight to suppress the price of gold and uphold the value of the dollar is a losing battle. A smaller problem is only made worse by postponing the inevitable.


Former Assistant Treasury Secretary, Dr. Paul Craig Roberts, says, “Gold and the dollar are in a fight to the death.”…

Despite the fact the price of gold has been pushed down since 2011, it still has about the highest rate of return of just about anything in the 21st century.   The Federal Reserve, in order to protect quantitative easing which is necessary to save the banks, began manipulating the gold price in a new and more intense way.  They used their bullion banks to short the gold in the COMEX futures market.  The trouble with this policy is that it’s been going on long enough that it’s being recognized by people who formerly thought ‘the Federal Reserve would never do anything like that.’  Of course they would, and people are catching on.” …

Dr. Roberts goes on to say,

“Another factor is central banks such as China and Russia are purchasing more and more gold. . . . So, what is happening is the actual physical quantity of gold is moving out to Asia in such large quantities that supply in the West to meet purchases is diminished dramatically.  This is starting to bite on the ability of the Federal Reserve of this sort of operation of rigging the gold price. . . . So, it looks like the Fed could be running out of the ability to continue this policy, in which case it will be bad news for the dollar.”  So, is the Fed losing the fight to the death between gold and the dollar?  Dr. Roberts says, “They are not losing right now, but they’re running out of bullets; but the Chinese and the Russians are not running out of dollars in which to buy gold.  The Fed is running out of gold in which to make these deliveries.” 

My Comment:

The Fed so far has succeeded in kicking the can down the road, but it has not solved the systemic debt problem. This reminds me of video games, where you win until you lose. The pressure increases slowly until it becomes impossible to continue the game.

The price suppression of gold, which the Fed carries out through the big banks, only makes gold cheap so that Asian nations can afford to buy more of it with their dollars. It is plain that the Fed has decided to keep the gold price at around $1300 per ounce, and silver at about $20 per ounce. Any time it goes over those benchmarks, the big banks “sell” more futures contracts (paper gold) in order to contain the price genie in the bottle.

For those who understand this, and if they have money to spend, it is a tremendous buying opportunity that may never again be repeated in history. But at some point this will change, probably quite suddenly, and then the bargain prices will end. Those holding dollars in savings accounts or US treasury bonds will be the big losers, as they see the value (buying power) of their savings plummet. They will then wish they had converted it or spent it on items of value, or used it to support of the Kingdom in some way.

This change-event will be like the final birth pangs into the Age to come. Economic pangs are usually accompanied by war pangs as well, because economic competition, disruption, or disputes are the usual cause of all wars, at least in recent centuries.

The collapse of the US dollar will be one of the largest economic disruptions in world history. There are many who believe it will happen in 2014. From my study of prophecy, I give it a 90% chance of happening in 2014 and a 99.9% chance of it happening from 2014-2017.

Preparing the Way through Elisha

The critical time in history, according to prophetic time cycles, is from 2006/7 to 2016/17, and as we have reached various end points, the pressure has increased. The war to bring down this beast empire through spiritual warfare ended in October 2006. We won. Babylon lost. Since that time, even while Babylon has been falling, we have focused upon the positive side of preparing the way for the Kingdom of God. This is represented, not in terms of Elijah, but Elisha.

“Elijah” came in the person of John the Baptist to prepare the way for Christ in His first appearance. “Elisha” is no longer an individual, but is the company of overcomers who are called to prepare the way for Christ in His second appearance. Early into this work (the end of 2008) my friend Ron received this revelation, and it was soon confirmed by others and by actual events. This was the revelation necessary to begin this prep work on April 12, 2009.

Very little of this work involves spiritual warfare as such. It should be viewed more as spiritual preparation to replace Babylon with the Kingdom of God. And while there is still some Babylonian backlash from our earlier victories, this opposition can only hinder, but not stop, the progress of the Kingdom.

A “Rejoice” Mindset

The Kingdom is coming. While most look ahead and see only a future rise of Mystery Babylon, we know that Babylon came in 1913-14 and is now falling. Our warfare ended Oct. 7, 2006. Therefore, we are able to focus our labor and efforts in preparing for the Kingdom of God, instead of spending all our time trying to hide from the Antichrist.

This mindset is more important than most people realize, and is more than they can really comprehend. It means that we can follow the leading of the Spirit without fear of the future. In fact, we can rejoice in it, knowing that we are not only on the winning side, but that we have already won the battle!

Our victory in 2006 was an outgrowth from the earlier, more foundational victory that Jesus won by His resurrection a long time ago.

Much of the Church concedes the earth to an Antichrist and awaits the great escape (rapture), as if the Church must be evacuated in the face of sure defeat. We, on the other hand, know that we are more than conquerors, as Paul tells us.

Daniel 7:21 tells us that the “little horn” was to wage war against the saints and overpower them until the time came for them to possess the Kingdom. That time frame of the “little horn” began in 529-536 A.D. with the Emperor Justinian, who made “alterations in times and in law” (Daniel 7:25).

In other words, he changed the calendar to the present system, based on the birth of Christ, and he changed the entire legal system from Roman law to Church law. After 1,260 years (“a time, times, and half a time”), this beast received a deadly wound from the French Revolution (1789-1794), but he was healed in 1804 when Napoleon reinstated the Pope in order to have someone worthy of crowning him as emperor. That healed beast then became allied with a second beast that was rising. Revelation 13 (which quotes Daniel 7 directly) explains that the religious beast from the sea was joined by a financial, banking beast from the earth. Historians call it “The Holy Alliance.”


According to Karen Hudes, who worked twenty years at the World Bank as an attorney, the income taxes that Americans pay to the Treasury are not used in the nation’s budget but are divided up between these two beasts—the financial beast in London gets 40%, and the Vatican gets 60%. The US government’s budget comes from other forms of taxation.

However, we are drawing near the end of these beasts’ dominion. These beasts have been defeated and are ready to be cast down from their positions of spiritual power by which they have ruled the West and have dominated the rest of the world. The results of spiritual warfare are seen on earth shortly afterward—in this case, after October 2006.

The Kings of the East

The fall of the original city of Babylon was accomplished by kings from the east. In those days these were Cyrus and Darius, kings of Persia and Medea. But modern “Mystery Babylon” is no longer the old city but an economic-political-religious world system with its head in the West. Revelation 16:12 says that it is slated to be overthrown by “kings from the east” according to the pattern of Babylon’s overthrow in 537 B.C. However, this time there are new actors on the stage of history.

Today it is China and Russia with their Eastern concept of an asset-backed banking system that will overthrow the current Western system of fiat money. The conflict between these two banking systems is becoming clear to many people today, but most do not understand the prophetic significance of what is happening. Dr. Paul Craig Roberts, whose article we quoted earlier, writes about the gold shift from West to East. Dr. Jim Willie writes about the Global Paradigm Shift from West to East. Today the focus is upon Ukraine, which is caught in the middle of a global economic war that most of the Ukrainians do not understand.

If we do not understand the prophetic conflict, we too will be manipulated into supporting the wrong side of prophecy. In ancient times, if a Judean had supported Babylon in its defensive war with Cyrus and Darius, he would have taken sides against the army which God had raised up to set them free. It was the decree of Cyrus that allowed the Judeans to return to their homeland.

So also it is with us today. If we side with our Babylonian captors, we will find ourselves at odds with God’s way of answering our prayers to be set free from the oppression of Babylon. We recognize, of course, that the current Babylonian system has made many people very wealthy. This wealth is directly traceable to the Bretton Woods Agreement in July 1-22, 1944, whereby the US dollar was made the world reserve currency.

In a few months we will reach the 70th anniversary of this Agreement. To me, this is like reaching the end of the 70-year captivity to Babylon. It is a time to watch. The original prophetic pattern was set in Daniel 5, where the king of Babylon was killed. This time it will be King Dollar that is “killed.”

In a few days the IMF will be meeting in New York to decide what to do about the refusal of the US Congress to pass the 2010 reform package for the world banking system. These reforms were pushed by China and Russia as part of the Eastern asset-backed system. The whole world has signed off on these reforms, except for the US Congress. Congress objects that the reforms mean that the US would lose some of its power. Congress patriotically supports the Babylonian banking beast in its death throes.

If the IMF decides to bypass the US Congress altogether, the US will find itself increasingly isolated in world trade. The Fed cannot sanction the rest of the world unless it intends to sanction itself.

Given the 70-year rule of King Dollar is coming to an end in July, it is important that we monitor world events this year, especially between now and July 22. No doubt I will write more in the next few months to keep you updated as we see our prayers answered and prepare for the Kingdom that lies ahead.

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Blog Author: Dr. Stephen Jones