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It is no secret that we are living in a time of global crisis. The financial meltdown of Wall Street, bank failures, the subprime lending crisis, and uncontrollable gasoline prices are creating enormous stress for Americans. And now we are facing a

global economic crisis that many are comparing to the events leading up to the Great Depression.

People everywhere are asking themselves critical questions like: “What is happening?” “Where are we headed?”

“What can I do to protect myself and safeguard my family?”

You can be assured that God is not surprised by these issues—in fact, all of these events are clearly documented in the Bible as signals pointing to the “end of the age” as we know it. In Financial Armageddon, Pastor John Hagee, a master teacher on Bible prophecy and an astute and successful businessman, clearly demonstrates…

Why our current economic crisis is happeningWhat will ensure your financial freedom in the face of any crisisHow world events are lining up with Bible prophecy What the Bible says will happen nextAnd much, much more!

As you read, remember that God has promised to bless His people. You can rest assured that He is in control. You will be encouraged to put your trust in God—our Master Investment Counselor—with the assurance that He will never let you down.

Discover how oil will become the ultimate weapon of war

Learn the four events that will cause the West to implode

Keep your investments from funding the enemy’s advance

Why energy independence is key to our survival

We are in a battle for our very survival...

Everything prophesied in the Bible is coming to pass!

What you must do to survivethe devastation of an economic collapse!

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ISBN: 978-1-59979-603-1

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v��

Foreword

The financial crisis that developed on Wall Street �n the fall of 2008 �s unl�ke anyth�ng I’ve seen before �n

my career. No one seems to have the answers, even though everyone �s try�ng to figure out what the cr�s�s means.

Financial Armageddon by Pastor John Hagee prov�des answers from the Word of God. Hagee �s a powerful m�n�ster whose preach�ng and teach�ng put d�fficult t�mes �nto perspect�ve for Chr�st�ans, and he has great �ns�ght �nto the mean�ng of current events from a b�bl�cal perspect�ve. For example, when o�l pr�ces skyrocketed �n m�d-2008, Hagee prepared a teach�ng ser�es t�tled “The O�l Cr�s�s and the Road to Armageddon.” The response to the ser�es was more than double what �s usually expected. Why? Because people want answers, and Hagee g�ves them.

I bel�eve the ex�st�ng cr�s�s �s so �mportant that I encouraged our Strang Book Group to rush th�s book �nto pr�nt. It appeared on bookstore shelves only s�x weeks after we conce�ved the �dea—a t�me frame that �s almost unheard of �n publ�sh�ng c�rcles.

The problems we are currently exper�enc�ng have a greater s�gn�ficance than a typ�cal cred�t crunch or mortgage cr�s�s. They are a precursor to a tremendous battle that w�ll take place at what the B�ble calls Armageddon. (See Revelat�on 16:14, 16.) In order to understand them, we must learn to d�scern the t�mes, as the sons of Issachar d�d �n 1 Chron�cles 12:32, and v�ew them �n l�ght of the Word of God.

As a bus�nessman, I read Hagee’s manuscr�pt w�th great �nterest. What happens on Wall Street or �n �nternat�onal markets affects me and those who work w�th me. Plus, I have some �nvestments �n the stock market for my ret�rement years, and I don’t want to see them w�ped out. Whether you own a bus�ness as I do or work for someone else, I know you too want to understand what �s go�ng on.

Let me add my perspect�ve to what you’re about to read, and

v��� | Financial A r m A g e d d o n Foreword  |  �x

maybe I can help you comprehend someth�ng about what the med�a somet�mes hyster�cally call a financial meltdown.

The stock market has plummeted before, and I bel�eve �t w�ll recover. So I’m not plann�ng to revamp my stock portfol�o. I expect the value of the stocks to �ncrease �n the future. I st�ll remember the dot-com bubble that burst a few years ago, the recess�on of 1992, and the terr�ble “stagflat�on” of the 1970s when I was just beg�nn�ng my career.

Our current s�tuat�on has come as no surpr�se. Cons�der�ng some of the bad loans that were made, the creative instruments Wall Street created, and the overblown real estate market, �t was only a matter of t�me unt�l someth�ng drast�c happened to correct the m�stakes. But the pan�c that has set �n has made the problems worse, even though our federal government has spent b�ll�ons of dollars to try to stab�l�ze the market.

I th�nk we can expect that Amer�ca w�ll come out of th�s bear market and financ�al slump just as �t has before. But every t�me we exper�ence a downturn, people want our government to do more. Year by year we become more of an �nternat�onal market, depend�ng on �nternat�onal banks to help stab�l�ze the financ�al s�tuat�on. If th�s doesn’t occur, people pan�c.

When people pan�c, they look for a strong leader who w�ll g�ve them what they want and make the�r financ�al problems go away. Do you see the pattern that develops? A global economy and global cr�ses make people yearn for a global leader to solve the�r problems. Suddenly you have the scenar�o the B�ble says leads to the r�se of a man called the Ant�chr�st, who leads us �nto the Battle of Armageddon!

If you don’t th�nk th�s �s poss�ble, look at h�story. It was the terr�ble �nflat�on and financ�al problems after World War I �n Germany that made the people turn to H�tler. Not only could �t happen aga�n, but, accord�ng to the B�ble, �t will happen aga�n.

That’s why �t’s �mportant to understand what �s go�ng on. All of us are at r�sk because we l�ve �n a complex, world-financ�al system that causes us to be dependent on others to prov�de the grocer�es we buy and to del�ver the gas we put �n our cars. We are dependent on others to have the money to

buy the goods and serv�ces we sell or to pay our paychecks. When any part of the system breaks down, we are vulnerable l�ke everyone else. Per�od.

So we must do what we can not only to surv�ve but also to thr�ve �n d�fficult econom�c s�tuat�ons such as the current bear market on Wall Street, wh�ch may be part of the b�gger finan-c�al Armageddon that �s com�ng.

The first step �s to re�n �n our fear. F�nanc�al cr�s�s can lead to collapse s�mply because people become afra�d and pan�c. We must understand that God’s Word �s true whether stocks are up or down and whether cred�t �s t�ght or abundant.

Long before Pres�dent Frankl�n D. Roosevelt, �n h�s 1933 �naugural address, sa�d �n reference to the depressed econom�c cond�t�on of our nat�on, “The only th�ng we have to fear �s fear �tself,”1 God H�mself had g�ven us the admon�t�on not to fear. He sa�d through the prophet Isa�ah, “‘Fear not, for I have redeemed you. . . . When you pass through the waters, I w�ll be w�th you; and through the r�vers, they shall not overflow you. When you walk through the fire, you shall not be burned, nor shall the flame scorch you. . . . S�nce you were prec�ous �n My s�ght, you have been honored, and I have loved you” (Isa. 43:1–4).

Next we must understand that there are d�fferent levels of econom�c problems. The first �s a normal negat�ve cycle �n the markets. Such cycles come and go, and th�ngs usually get better. But at the same t�me, they set us up for a greater danger, what author Larry Bates calls “the new econom�c d�sorder,” �n wh�ch world banks control the money, cartels control o�l, and ev�l leaders set the scenar�o for the com�ng Ant�chr�st.2

When Armageddon comes, no one w�ll escape �t, because world events w�ll crash together w�th b�bl�cal prophecy �n the final confl�ct of the ages, as Pastor Hagee expla�ns �n these pages. Yet there �s hope for bel�evers who understand that the Rapture w�ll take away Chr�st�ans “�n the tw�nkl�ng of an eye.”

Of course, �t’s that knowledge that has also led generat�ons of Chr�st�ans to be pass�ve and s�mply wa�t for the Second Com�ng to wh�sk them away from all the troubles of the world. The�r att�tude �s l�ke that of the preacher who joked, “It’s eas�er

x | Financial A r m A g e d d o n Foreword  |  x�

to th�nk about the ‘sweet by-and-by’ than �t �s to deal w�th the nasty now-and-now.”

Maybe the problems we’re exper�enc�ng w�ll wake up the church. Maybe godly leaders w�ll emerge �n government and the econom�c commun�ty to prov�de answers based on the pr�nc�ples of God’s Word that w�ll change the t�de or at least slow �t down.

Some Chr�st�ans �n the world—bel�evers �n the Sudan, Commun�st Ch�na, or Ind�a, where there has been so much v�olence aga�nst Chr�st�ans, or �n the Musl�m world, where Chr�st�an�ty �s banned—may th�nk Armageddon has already begun. Amer�cans, on the other hand, bel�eve they are somehow �mmune. They th�nk, “Surely these problems won’t happen to us.” We’ve been blessed w�th relat�ve peace and prosper�ty so long we bel�eve they are our r�ghts. Yet bad th�ngs can happen and are happen�ng. As the leader of the free world, Amer�ca �s not exempt.

Cons�der 9/11. We never thought we would be attacked on our own so�l, but we were. I bel�eve many other events that have been prophes�ed w�ll take place, and we can only prepare.

As people the world over become more and more host�le to the gospel, and as those who are ev�l get �nto power and take away our freedoms, Chr�st�ans must do what the Jews d�d �n Europe, where they were persecuted for years—engage �n profess�ons and trades we can take w�th us when th�ngs get bad. The trend that developed dur�ng those years expla�ns why many Jews are �n bank�ng, jewelry, and so on rather than farm�ng today.

So what can Chr�st�ans do? Start bus�nesses. Get �nvolved �n the process to change th�ngs rather than be�ng subject to the wh�ms of b�g bus�ness.

Then run your small bus�ness �n a way that can handle a downturn. Have reserves; keep debt low; make fallback plans. In the process, be able to help others as the B�ble says.

Too often Chr�st�ans, l�ke the men Moses sent to spy out the Prom�sed Land (Num. 13:32–33), have seen themselves as grasshoppers �n the�r own eyes—�n th�s case, as be�ng at the

bottom of the econom�c totem pole just wa�t�ng for the Rapture. Th�s �mage �s not accurate, and the B�ble has answers for the mess we’re �n. That’s why John Hagee’s book �s so �mportant. Read �t and share �t w�th fr�ends. Follow the adv�ce he g�ves.

Remember that, no matter what happens, we are to do as the nobleman �n the B�ble �nstructed h�s servants, and “occupy t�ll [our Master] come[s]” (Luke 19:13, kjv).

—Stephen StrangFounder and Publisher of Charisma

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Chapter 2

Amer icA’s economic meltdow n: the Per fect stor m

★

In this chapter, we will discover how our global econom�c cr�s�s reveals a panorama of th�ngs to come.1 In the

past quarter century, the Un�ted States has w�tnessed unparalleled econom�c growth. Dur�ng th�s per�od, the nat�on ga�ned forty m�ll�on jobs, the Dow Jones moved from e�ght hundred to over fourteen thousand, and the world saw a s�gn�ficant reduct�on �n poverty.2

However, by the end of Fr�day, October 10, 2008, the Dow ended �ts worst week �n h�story, dropp�ng over 18 percent �n just five days. Even more troubl�ng, from �ts h�gh one year earl�er, the Dow was down over 40 percent. Another stock market �nd�cator, the S&P �00, was down over 42 percent.3 One est�mate suggested that more than $7 tr�ll�on �n share-holder value had been w�ped out.4

In the two prev�ous years, more than one m�ll�on people had lost the�r homes, w�th another m�ll�on expected to lose them �n the com�ng year.5 One scholar bel�eves �t �s conce�v-able we could see a total drop of 2� percent �n hous�ng pr�ces, comparable to the Great Depress�on.6 Former Federal Reserve cha�rman Paul Volcker has sa�d, “We are �n the m�dst of the worst financ�al turmo�l s�nce the Great Depress�on.”

We are not there yet. Unemployment dur�ng that per�od h�t

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2� percent, far worse than the current 6 percent, and the nat�on exper�enced sharp drops �n GDP (gross domest�c product), someth�ng the nat�on has yet to see �n 2008. Nevertheless, banks have fa�led, the federal government �s tak�ng d�rect control of large parts of the Amer�can economy, and pol�t�cal leaders are prom�s�ng large tax h�kes �n response to the cr�s�s.7

Compar�sons to the 1930s are becom�ng more common and have even entered the pol�t�cal debate.

The Un�ted States has exper�enced bank�ng cr�ses before �n �ts h�story. Earl�er examples �nclude 1797, 1819, 1837, 18�7, 1873, 1893, 1907, 1929, and 1987.8 The quest�on �s: What caused the current financ�al cr�s�s? Th�s chapter w�ll outl�ne the causes of our current problems, connect�ng those causes to other aspects of the Amer�can and world econom�c systems.

How tHe Financial crisis e volved

The current financ�al cr�s�s was caused by the real estate bubble that began �n the late 1990s, but �t �s connected and l�nked to a var�ety of other factors. In an effort to clar�fy the story, I w�ll treat each factor �n turn, but �t �s �mportant to recogn�ze that these var�ous elements are all �nterconnected.

Subprime lendingA central aspect of the publ�c ph�losophy �n the Un�ted States

�s home ownersh�p. One scholar calls �t a “nat�onal obsess�on.”9

Home ownersh�p �s perce�ved as an �ntegral part of the Amer�can dream, and publ�c pol�cy �s geared to promote �t. The federal �ncome tax code �s structured to encourage home ownersh�p, and �t has been a key aspect of electoral pol�t�cs. Th�s ph�losophy became so powerful that �n 1977 Congress passed, and Pres�dent J�mmy Carter s�gned �nto law, the Commun�ty Re�nvestment Act (CRA), wh�ch declared that banks have “an affirmat�ve obl�-gat�on” to meet the cred�t needs of the commun�t�es �n wh�ch they are chartered. When banks were later accused of d�scr�m�-nat�ng aga�nst poor and m�nor�ty ne�ghborhoods, the Cl�nton adm�n�strat�on t�ghtened the regulat�ons on banks to encourage them to �nvest more money �n h�gher-r�sk areas.

The federal government also encourages home ownersh�p through the Federal Nat�onal Mortgage Assoc�at�on (Fann�e Mae) and the Federal Home Loan Mortgage Corporat�on (Fredd�e Mac). Fann�e Mae was establ�shed dur�ng the Great Depress�on, wh�le Fredd�e Mac was created �n 1970 to prov�de compet�t�on to Fann�e Mae. Although the two compan�es eventually became publ�cly traded compan�es, the federal government heav�ly regulates them, and the�r charters requ�re them to promote home ownersh�p among lower-�ncome and d�sadvantaged groups.10 In th�s sense, home ownersh�p for the poor �s seen by some as a key c�v�l r�ghts �ssue, and both Pres�-dent B�ll Cl�nton and Pres�dent George W. Bush pushed home ownersh�p as a matter of pol�cy.

None of th�s expla�ns why th�ngs got out of hand. How d�d a ph�losophy of home ownersh�p become a real estate bubble that burst?

As recently as the early 1980s, mortgage rates were as h�gh as 18 percent. By 2003 they had decl�ned to just over � percent. In the �nter�m, several �mportant th�ngs happened. In the 1990s, Ch�na began to r�se �n �mportance as an econom�c powerhouse. Manufactur�ng �n Ch�na began to flood the world w�th cheap products, wh�ch helped to keep �nflat�on low. Th�s allowed central banks, such as the Federal Reserve �n the Un�ted States, to keep �nterest rates very low.

Deflat�on, not �nflat�on, was a major concern. When the tech-stock bubble collapsed �n 2000, lead�ng to the relat�vely m�ld recess�on of 2001, �nvestors looked for a place to put the�r money. That place was real estate.11

For most of the century pr�or to 1997, home pr�ces had not changed very much. When adjusted for �nflat�on, pr�ces var�ed sl�ghtly w�th�n a fa�rly narrow band. But �n the late 1990s, a hous�ng boom took off. From 1997 to 2006, real home pr�ces �ncreased 8� percent.12 Home sales rose and pr�ces rose, caus�ng bu�ld�ng construct�on to r�se for all sorts of reasons. Some buyers s�mply wanted to take advantage of the boom to renovate or remodel the�r homes. Others wanted to refinance to ga�n greater wealth. Some used the opportun�ty to trade up

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to a h�gher-qual�ty home. F�rst-t�me buyers sought to grab a p�ece of the Amer�can dream.

One of the th�ngs that made th�s mass�ve level of act�v�ty poss�ble was the ex�stence of subpr�me loans. Subprime loans are loans made to �nd�v�duals who have a weak or troubled cred�t h�story.13 Prime borrowers are people who have a good h�story of debt repayment. Subprime borrowers are people who e�ther have problems w�th debt repayment or who have no cred�t h�story at all. W�th offic�al government pol�cy encourag�ng home ownersh�p for as many people as poss�ble, �ncent�ves ex�sted for lend�ng �nst�tut�ons to prov�de new loan products for people w�th shaky cred�t h�stor�es—espec�ally those from poor or m�nor�ty ne�ghborhoods, the pr�me target of Fann�e Mae and Fredd�e Mac.

Pol�cy makers, �nclud�ng Federal Reserve cha�rman Alan Greenspan, encouraged the development and use of subpr�me loans. In 2006, 90 percent of subpr�me loans came �n the form of adjustable rate mortgages (ARMs). F�xed-rate mortgages, the more trad�t�onal form of financ�ng homes, lock �n monthly payments that never change. ARMs typ�cally start at an �nterest rate lower than fixed-rate loans but reset after a per�od of t�me to match a spec�fic �nterest rate benchmark. Rates may adjust as often as every s�x months, up or down depend�ng on the �nterest rate. Other veh�cles used to encourage home ownersh�p �ncluded l�ttle to no down payments, m�n�mal or nonex�stent proof of �ncome, and even stated income loans �n wh�ch the borrower s�mply states h�s �ncome and the lender accepts that number w�thout proof.14 In short, lenders who should have known better were g�v�ng loans to people purchas�ng homes they could not afford.

All of th�s act�v�ty m�ght have been fine had hous�ng pr�ces cont�nued to r�se. However, scholars analyz�ng th�s s�tuat�on agreed that a bubble psychology took shape �n the global economy. People began to bel�eve we were �n a new era �n wh�ch pr�ces would never come down, at least not nat�onally. In a new era of riskless risk, people began to th�nk that home pr�ces would stay h�gh permanently.15

The hous�ng boom turned �nto a bubble when people began to th�nk of hous�ng not as a means to buy a home but as an �nvestment. W�th the tech-stock bubble gone and low �nterest rates, what can we do w�th our money? So, �nvestors sought a p�ece of the act�on, as d�d speculators who bought and sold propert�es qu�ckly for a profit. Banks took advantage of the s�tu-at�on to seek h�gher profits by mak�ng r�sk�er bets. Instead of banks hold�ng a mortgage for the l�fe of the loan, banks began to collect all of the loans, �nclud�ng r�sky subpr�me loans, �nto a s�ngle pool; then they d�v�ded th�s pool �nto separate p�eces to sell to a global market.16

The r�de came to an abrupt end �n 2006. As hous�ng pr�ces cont�nued to r�se, hous�ng construct�on boomed. Eventu-ally pr�ces got too h�gh, and overpr�ced homes began to fall �n value. When adjustable-rate mortgages had the�r rates reset, people suddenly found they could not afford to make the�r payments. Home owners saw three hundred fifty dollars per month added to the�r house payment. The result was the beg�nn�ng of an era of bankruptc�es and foreclosures that has yet to end. Home owners soon owed more on the�r loans than the�r houses were worth. Pr�ces came crash�ng down, w�th the drop felt �n all sectors of the country and at all pr�ce t�ers, as well as overseas.17

Far worse, bank�ng �nst�tut�ons were caught flat-footed. Bad subpr�me loans had been d�v�ded �nto many smaller parts and spread throughout the world’s financ�al system, and all of a sudden those �nvestment veh�cles were bad. No one knew exactly where these assets were, and the result was a pan�c and loss of fa�th and trust �n the system. Th�s led to a reevaluat�on of r�sk �n general. After all, �f mortgages were overvalued, so m�ght be all k�nds of other assets. Th�s �s how the bundl�ng of mortgages, compr�s�ng only $200 b�ll�on �n a mult�tr�ll�on-dollar global economy, could cause banks �n other countr�es to go under.18

The result �n 2008 �s now well known. The hous�ng crash and ensu�ng loss of confidence �n the cred�t markets caused the �nvestment firm Bear Stearns to lose access to cred�t �n March. At that t�me, the federal government chose to �ntervene and

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rescue Bear Stearns by fac�l�tat�ng �ts sale to JPMorgan Chase. Congress gave the Treasury Department author�ty to take over Fann�e Mae and Fredd�e Mac �n July, and the Treasury nat�on-al�zed those two ent�t�es on September 8.

On September 1�, Lehman Brothers took the honors for the largest bankruptcy fil�ng �n Amer�can h�story. The follow�ng day, the Federal Reserve made a loan to shore up Amer�can Internat�onal Group (AIG), the largest �nsurance company �n the world. All of these firms had trouble secur�ng financ�ng because of the hous�ng crash, due pr�mar�ly to bad subpr�me loans. As financ�al �nst�tut�ons throughout the world began to understand what had happened, the result�ng loss of trust prompted them to stop lend�ng to each other.

In the wake of these act�ons and the result�ng stock market turmo�l, the federal government �s tak�ng unprecedented act�ons to address the problem, �nclud�ng a $700 b�ll�on ba�lout plan for Wall Street and cla�m�ng part ownersh�p of the largest banks to prov�de stab�l�ty to the market.

Other factorsThe relat�onsh�p between subpr�me lend�ng and the hous�ng

bubble was the pr�nc�pal cause of the current financ�al cr�s�s, but there are related factors as well. For example, the role of the new Ch�nese economy cannot be overstated. Ch�na’s emergence as an econom�c power �n the 1990s helped force down pr�ces for manufactured goods, lead�ng the Federal Reserve to keep �nterest rates down to fight deflat�on. Ch�na’s entry �nto the World Trade Organ�zat�on (WTO) made �t a low-cost place to produce goods, and Ch�na soon began produc�ng more than 10 percent of the world’s goods, adversely �mpact�ng �ndustr�es �n other countr�es. The result�ng trade defic�t meant fore�gn coun-tr�es were �nvest�ng heav�ly �n U.S. Treasury bonds, as well as other �tems such as mortgage secur�t�es. Ch�nese demand and explos�ve growth also led to soar�ng o�l pr�ces, thus l�nk�ng real estate speculat�on to speculat�on �n energy. The surge �n o�l pr�ces led to �ncreas�ng �nvestment �n energy, �nclud�ng ethanol, wh�ch led �n turn to a surge �n food pr�ces, creat�ng tremendous problems �n develop�ng countr�es.19

Some scholars call attent�on to the potent�ally dangerous role Ch�na plays �n the global economy. Potent�ally, Ch�na repre-sents the next econom�c bubble. In �ts attempt to jo�n market forces to a Marx�st pol�t�cal system r�pe w�th corrupt�on and �neffic�ency, Ch�na �s pav�ng the way for problems at the global level. Its purchas�ng of commod�t�es worldw�de, �nclud�ng o�l, �nd�cates a s�m�lar psychology to the real estate bubble—no one bel�eves �t w�ll burst. When �t does, the consequences for the world w�ll be deflat�on, global stock market collapse, and long-term stagnat�on.

The grow�ng d�sproport�onate male-female rat�o �n Ch�na, due to �ts one-ch�ld pol�cy and common pract�ce of abort�ng female bab�es, �s creat�ng a demograph�c n�ghtmare that w�ll only compound the problem. Alternat�vely, Ch�na could w�th-draw �ts reserves from the global system, lead�ng to world �nflat�on as central banks ra�se �nterest rates to compensate.20

Such a move would seem unl�kely. A 2007 study found that no s�ngle nat�on holds enough U.S.

debt to cause a major d�srupt�on, and tak�ng such act�on would underm�ne the value of the�r own hold�ngs, caus�ng them to suffer huge losses.21 St�ll, that prognos�s depends on the assump-t�on that nat�ons w�ll always act rat�onally, and the current subpr�me cr�s�s demonstrates the folly of such an assumpt�on.

L�nked to both Ch�na and the real estate bubble �s the role of fore�gn o�l. In m�d-2007, the pr�ce of o�l was s�xty-five dollars per barrel. One year later �t had nearly doubled. Demand for o�l by Ch�na helped ra�se the pr�ce, but Amer�can consump-t�on of fore�gn o�l played �ts own part. The hous�ng cr�s�s led to a drop �n the dollar, creat�ng another surge �n o�l, food, and commod�ty pr�ces. The result�ng h�gh o�l pr�ces jo�ned the subpr�me cr�s�s �n putt�ng downward pressure on the dollar.

To put th�s problem �n perspect�ve, every penny �ncrease �n the pr�ce of a gallon of gas costs over one b�ll�on dollars �n extra annual spend�ng. The jump from three dollars per gallon to four dollars per gallon caused the nat�on’s gas b�ll to r�se more than $100 b�ll�on, render�ng the federal government’s

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2008 st�mulus checks nearly �mpotent. The potent�al for a free fall of the dollar and collapse of the economy �s very real.22

Ind�rectly l�nked to the subpr�me cr�s�s, but d�rectly connected to �ts potent�al consequences, �s the state of Amer�ca’s nat�onal debt. Before the Wall Street ba�lout package passed by Congress, the most obv�ous source of r�s�ng debt for the Un�ted States was from money spent to fight the war �n Iraq, wh�ch over the past five years �s rap�dly near�ng $600 b�ll�on. That may be dwarfed by the $700 b�ll�on ba�lout package and $2�0 b�ll�on govern-ment purchase of bank shares. The federal defic�t for fiscal year 2008 �s est�mated at a record $4�� b�ll�on, more than tw�ce the amount of the 2007 budget defic�t. Some analysts bel�eve that fiscal year 2009 could see a defic�t �n excess of $700 b�ll�on.

Far more �mpos�ng on the future �s the ent�tlement debt �ncurred by the Un�ted States. As the baby boom generat�on beg�ns to move �nto ret�rement, we may see the Soc�al Secur�ty and Med�care systems overloaded. Between 2000 and 2030, the s�xty-five-year-old populat�on w�ll more than double �n th�s country. The number of ret�rees w�ll go from th�rty-five m�ll�on to seventy-two m�ll�on—20 percent of the total popu-lat�on. The cost of Soc�al Secur�ty, Med�care, and Med�ca�d w�ll r�se from $1.1 tr�ll�on and 40 percent of the federal budget today to more than $2 tr�ll�on and 7� percent of the federal budget �n 2030.23 Med�care Part A benefit payments should exceed revenue th�s year, and assets w�ll not be suffic�ent to pay full benefits as early as 2019. Soc�al Secur�ty payments w�ll exceed revenue �n 2017, and assets w�ll not be suffic�ent to pay full benefits by 2041.

Total nat�onal debt—the �nterest on wh�ch const�tutes an �ncreas�ngly large percentage of the annual federal budget—now exceeds $9 tr�ll�on.24 Perhaps most shock�ng, the true nat�onal debt—defined as all debt held �n the Un�ted States, publ�c and pr�vate—�s $�3 tr�ll�on. Common sense tells us that such a debt �s unsusta�nable.

consequences oF tHe Financial crisis

Although �t �s �mportant not to exaggerate the consequences of the current financ�al cr�s�s, �t �s cr�t�cal that we understand where �t could take us. The obv�ous consequences l�e �n the econom�c arena, should the cr�s�s cont�nue and worsen. If people suspect that they w�ll lose the�r money, we could see a run on the banks. Banks keep only a fract�on of depos�ted money on hand, and such a run would be devastat�ng. The cr�s�s that led to the Great Depress�on started before 1929 �n the hous�ng market.

Less apocalypt�cally, the country faces a real threat of reces-s�on. Demand for home construct�on w�ll fall, wh�ch w�ll affect employment and the economy. State and local publ�c finances depend on property taxes, and the hous�ng crash could nega-t�vely affect government finances. A fall�ng dollar and renewed surge �n o�l and food pr�ces w�ll put pressure on the fam�ly budget, and a decl�ne �n home owners’ net worth w�ll make money for college that much more d�fficult to come by. Some households w�ll see the�r nest eggs d�sappear, wh�le others w�ll no longer have access to cred�t.25

Internat�onally, we are already see�ng the effects of the subpr�me cr�s�s. Iceland has essent�ally gone bankrupt, forced to accept help from Russ�a and to once aga�n cons�der poss�ble membersh�p �n the European Un�on (EU), further expand�ng that body. The v�gorous act�ons of nat�onal governments also ra�se the specter of moral hazard—ba�l�ng out r�sk takers w�th taxpayer money. Th�s may be an understandable devel-opment s�nce the cr�s�s �tself has �ts genes�s �n the lack of moral v�rtue—when work�ng hard �s seen as less �mportant than shrewd �nvest�ng, and �rrespons�ble bankers and pol�t�cal leaders v�olate the�r trust.

The most profound and potent�ally far-reach�ng consequences may be pol�t�cal. H�stor�cally, econom�c cr�ses have never been k�nd to the �ncumbent party �n a pres�dent�al elect�on year. Severe recess�on �n the late 1830s called �nto quest�on the stew-ardsh�p of the economy by Jackson�an Democrats, allow�ng the Wh�g party to w�n control of both Congress and the Wh�te House for the only t�me �n �ts h�story. The worst depress�on

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of the 1800s started �n 1893 just as Grover Cleveland began h�s second term. Four b�tter years later he surrendered the office to Republ�can W�ll�am McK�nley, who began a th�rty-s�x-year dom�nance of nat�onal pol�t�cs by the GOP. By 1932, however, Republ�can management of the economy had been d�scred�ted w�th the onset of the Great Depress�on, allow�ng Frankl�n Roosevelt to redefine Amer�can pol�t�cs for the next few decades. Only the stagflat�on and fore�gn pol�cy weakness of the Carter adm�n�strat�on ended the New Deal era, pav�ng the way for Ronald Reagan and modern conservat�sm.

Th�s h�stor�cal overv�ew �s �mportant because the current financ�al cr�s�s �s be�ng spoken of �n terms compar�ng �t to the Great Depress�on. It rema�ns to be seen how bad th�ngs w�ll get, but there �s no quest�on that the cr�s�s has helped make Democrat�c pres�dent�al cand�date Barack Obama the presumpt�ve favor�te for the 2008 elect�on, w�th a strong l�kel�-hood of br�ng�ng substant�ally stronger Democrat�c major�t�es �nto both houses of Congress come January 2009, perhaps even a fil�buster-proof major�ty �n the Senate. If a strong elect�on v�ctory by Obama �s �nterpreted as more than s�mply a des�re to change management—�f, �nstead, �t �s �nterpreted as a des�re for a new publ�c ph�losophy—then �t �s poss�ble to argue that conservat�ve free-market econom�c pol�c�es have been repud�-ated and the Reagan era has come to an end.26

What would that mean? Some scholars are already call�ng for act�on “on the scale of the New Deal–era reformers.”27 Such act�on would mean a sh�ft away from free trade and entrepreneur�al�sm �n favor of protect�on�sm and class warfare. A renewed emphas�s on the red�str�but�on of wealth would be jo�ned to a preference for large, new federal programs, start�ng w�th a comprehens�ve health-care program. The response to the financ�al cr�s�s w�ll �nvolve more government ba�louts at all levels and further efforts to st�mulate the economy. The prom�sed tax cuts and programs for clean energy and jobs and �nfrastructure spend�ng w�ll create a defic�t and debt problem seem�ngly �mposs�ble to address.28

And, of course, these domest�c and econom�c �ssues w�ll be

l�nked to l�beral pol�c�es �n nat�onal secur�ty and fore�gn pol�cy, as well as soc�al �ssues. A Democrat�c adm�n�strat�on w�ll l�kely be much more sympathet�c to European sens�b�l�t�es and w�ll work d�l�gently to coord�nate act�ons and pol�c�es w�th the EU. It w�ll be, �n short, the return of b�g government.

The future �s not yet set �n stone, but h�story demonstrates that voters are remarkably unforg�v�ng toward the party they hold respons�ble for econom�c d�saster. The facts are much more compl�cated, of course, but facts are less relevant to voters who are angry.

37

Chapter 4

A fight for wor ld control★

Iran is racing toward nuclear weapons and promises to w�pe Israel off the map. Pres�dent Ahmad�nejad has made �t

clear that he also �ntends to attack Amer�ca. One of the ult�mate weapons of war �s o�l. Amer�ca �s fac�ng an o�l cr�s�s that affects every person �n our nat�on and threatens our nat�onal secur�ty.

The recent Iran�an m�ss�le test presented yet another round of �ntense speculat�on that war m�ght erupt between Iran, Israel, and the Un�ted States. Let’s get our facts stra�ght. Iran has been �n confl�ct w�th Israel and Amer�ca s�nce 1979 as �t came to power under the present theocrat�c d�ctatorsh�p.

The cr�s�s fac�ng Amer�ca and Israel �s the real�ty of weapons that are now ava�lable to Iran for use aga�nst both countr�es. Rad�cal Islam�c Iran�ans refer to Amer�ca as “the Great Satan,” and Israel as the “l�ttle Satan,” and are no longer content w�th s�mple truck bombs and su�c�de bombers wear�ng vests laden w�th explos�ves.

W�th the help of Russ�a, Ch�na, and North Korea, Iran has produced an array of ant�sh�p m�ss�les, m�nes, and speedboats capable of s�nk�ng vessels �n the Stra�t of Hormuz.1 Now they are try�ng to put together monster weapons—nuclear m�ss�les and bombs.

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“holy war,” wh�ch w�ll engulf the ent�re world, h�s mess�ah w�ll appear. He w�ll lead the “holy warr�ors” of rad�cal Islam to a global Sharia, mean�ng that every nat�on on the face of the earth w�ll be under Islam�c law. Ahmad�nejad bel�eves that he has the power and the duty to br�ng th�s about.

Remember, h�story teaches us that those who fa�l to remember the m�stakes of the past are doomed to repeat them �n the future. One of the most trag�c events of recent h�story was H�tler’s Holocaust aga�nst the Jew�sh people dur�ng World War II. There are a number of lessons that we can learn from the Holocaust, but one of the most �mportant �s th�s: when a man�ac threatens to k�ll you, take h�m at h�s man�acal word.

When H�tler began h�s threats to k�ll the Jew�sh people, few took h�m ser�ously. That was a trag�c m�stake. Ahmad�nejad �s the new Hitler of the Middle East. He wants a nuclear holocaust. He wants “the Great Satan,” wh�ch �s Amer�ca, to fall and be �n subm�ss�on to Islam, and he wants to utterly destroy Israel.

Several years ago, former pr�me m�n�ster of Israel Benjam�n Netanyahu sat �n my office and told me that when he was �n office, he gave photograph�c proof to Amer�ca’s �ntell�gence commun�ty that Russ�a was help�ng Iran develop m�ss�les capable of h�tt�ng Jerusalem, London, and New York. Our �ntell�gence agenc�es d�d not bel�eve h�s �nformat�on unt�l he gave them p�ctor�al proof that �t was happen�ng.

That was years ago. Now on nat�onal telev�s�on, you see Iran shoot�ng m�ss�les to demonstrate to the world that they have the technology.

When Iran obta�ns nuclear ab�l�ty—and they w�ll unless they are stopped by a preempt�ve m�l�tary str�ke—they w�ll be able to put nuclear warheads on those m�ss�les. Can you �mag�ne the global chaos that would be created �f New York, London, and Jerusalem were all h�t w�th nuclear m�ss�les at the same t�me?

There are many Amer�cans who do not bel�eve that Iran can launch a nuclear weapon that w�ll land �n Amer�ca. They are absolutely wrong! In recent test�mony before the House Armed Serv�ces Comm�ttee (HASC), Dr. W�ll�am Graham, cha�rman of

tHe tHre at oF ir an

In a matter of months, Iran �s go�ng to be �n pos�t�on to execute the threats of Pres�dent Ahmad�nejad to “w�pe Israel off the map.”2 In a telev�s�on �nterv�ew �n June 2008, Ahmad�nejad sa�d, “Today, the t�me for the fall of the satan�c power of the Un�ted States has come and the countdown to the ann�h�lat�on of the emperor of power and wealth has started.”3 Pres�dent Ahmad�nejad has made h�s �ntent�ons very clear.

Amer�ca, �t’s t�me for us to wake up! Many Amer�cans look at our Star Wars m�l�tary defense system and assume a false sense of secur�ty. Let me rem�nd you that on 9/11 more than three thousand Amer�cans were murdered �n cold blood �n the tw�n towers of the World Trade Center �n New York C�ty, the Pentagon, and a field �n Pennsylvan�a. How were they murdered? Not by nat�ons w�th gu�ded m�ss�les . . . not by h�gh-tech weaponry . . . not by d�v�s�ons of an �nvad�ng army . . . but by e�ghteen rad�cal Islam�c fanat�cs w�th box cutters who used our h�jacked a�rl�ners as m�ss�les of death to k�ll our own people. That was not soph�st�cated. It was caveman technology, but �t proved to be very successful.

September 11 proved that rad�cal Islam has the w�ll to k�ll Amer�cans, and they have the w�ll to conquer us. They just lack the power. But Iran �s rac�ng toward the development of nuclear weapons. They’re work�ng day and n�ght. They’re �gnor�ng every form of d�plomacy. They are �gnor�ng the mandates of the Atom�c Energy Comm�ss�on.

When they have that nuclear weapon, rad�cal Islam w�ll have the power—and w�ll use �t to attack you and your family. We face a real danger. We, the Un�ted States of Amer�ca, have an enemy that �ntends to destroy us. We need to come out of pol�t-�cal correctness and come to the world of real�ty. Amer�cans w�ll sl�p from stage seven to e�ght, “dependence back �nto bondage,” �f we allow nuclear weapons to get �n the hands of our enem�es.

Pres�dent Ahmad�nejad bel�eves that �f he starts World War III, the Islam�c mess�ah w�ll suddenly and myster�ously appear. Understand that he doesn’t know who th�s mess�ah �s or where he �s, but he bel�eves the moment that Iran starts th�s

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Four critic al steps to stop ir an

Amer�ca �s �n a war for �ts surv�val. Many Amer�cans do not want to adm�t �t, but that �s the truth. Execut�ng an extens�ve preempt�ve m�l�tary str�ke aga�nst Iran w�ll most certa�nly lead to a world confl�ct. Once the nuclear gen�e gets out of the bottle �n the M�ddle East, there w�ll be no stopp�ng World War III. There are four ways the Amer�can people can stop what �s happen�ng �n the M�ddle East w�thout fir�ng a shot.

1. Americans can divest their stocks from private and public pension portfolios that are attached to Iran.

Every state �n the Un�ted States has pens�on funds filled w�th assets worth b�ll�ons of dollars. Many Amer�cans have �nvested a port�on of the�r wages �nto pens�on funds that �n turn �nvest �n overseas stocks and pr�vate equ�ty stocks. In a Reuters report dated January 16, 2008, we can see that the Un�ted States has �nvested more than $3.6 b�ll�on dollars �n Iran’s petrochem�cal, gas, and o�l �ndustr�es.7

If you—and every other Amer�can—would remove stocks and �nvestments from Iran-owned �ndustr�es and ask your governor and state leg�slators to d�vest publ�c funds from Iran, the b�ll�ons of U.S. dollars that they’re currently us�ng to make weapons would be removed from the�r economy.

The state of Flor�da was one of the first states to pass d�vestment leg�slat�on. The state of Texas has already begun to d�vest. Several b�lls have recently been put before Congress that would restr�ct U.S. cooperat�on w�th states and compa-n�es do�ng bus�ness w�th Iran. Leg�slat�ve proposals have also been put forth that would order pens�on funds to d�vest from firms w�th commerc�al l�nks to Iran.8 But w�th the onset of our most recent econom�c cr�s�s, there �s some �nd�cat�on that the push for d�vestment may be chang�ng. A recent report by Cra�g Karm�n, a reporter for the “Money and Invest�ng” sect�on of the Wall Street Journal, states:

Recently, w�th markets pummel�ng most pens�on funds, th�s hard-l�ne stance �s com�ng under greater scrut�ny. Lawmakers are opt�ng for less-str�ngent b�lls, offer�ng

the Comm�ss�on to Assess the Threat to the Un�ted States from Electromagnet�c Pulse (EMP) Attack, a blue-r�bbon panel estab-l�shed by Congress �n 2001, warned that the U.S. �ntell�gence commun�ty “doesn’t have a story” to expla�n the recent Iran�an nuclear tests. In h�s test�mony, he stated:

The only plaus�ble explanat�on we can find �s that the Iran�ans are figur�ng out how to launch a m�ss�le from a sh�p and get �t up to alt�tude and then detonate �t. And that’s exactly what you would do �f you had a nuclear weapon on a Scud or a Shahab-3 or other m�ss�le, and you wanted to explode �t over the Un�ted States.4

By launch�ng a nuclear m�ss�le off a sh�p, Iran could make good on the�r pledge to br�ng about “a world w�thout Amer�ca.” They don’t need to have the ab�l�ty to launch the m�ss�le across the ocean. But they can br�ng a sh�p w�th�n a hundred m�les of Amer�ca’s coastl�ne and launch the�r m�ss�les from there.

In Jerusalem Countdown, I wrote about the EMP, an elec-tromagnet�c pulse dev�ce that could totally stop all forms of electr�c�ty.5 Dur�ng h�s test�mony before the HASC, Dr. Graham warned that Iran has the ab�l�ty to execute such an attack on Amer�ca, wh�ch would w�pe out all electr�cal capa-b�l�ty �n Amer�ca.6

S�mply stated, a m�ss�le carry�ng enr�ched pluton�um would explode �n the atmosphere over the Un�ted States of Amer�ca. W�th�n a matter of seconds, all electr�cal power would be d�sabled. Rad�o and telev�s�on stat�ons would go off the a�r. Telephones would not work. Cars, trucks, tractors—all motor veh�cles—would not start. The refr�gerators and freezers �n your home would fa�l to funct�on, and all your food would spo�l. The Internet—today’s techno-commun�cat�ons superstar, would be �naccess�ble.

Th�nk about th�s: The pres�dent of the Un�ted States would not be able to commun�cate w�th m�l�tary leaders around the world. All commun�cat�on of any k�nd would gr�nd to a halt! We would be back �n the days of the pony express! Iran has the power to do th�s. It’s not as d�fficult as you may th�nk.

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to work for the people. We can vote them �n, and we can vote them out.

I would suggest that you take a look at the vot�ng records of your state and government offic�als, and �f they have voted aga�nst any form of dr�ll�ng . . . vote them out of office. You can do that to help save Amer�ca. Break�ng our add�ct�on to fore�gn o�l �s a matter of nat�onal secur�ty.

3. Develop effective antimissile defenses.Russ�a v�gorously objects to the NATO ant�m�ss�le system.

But w�th the�r recent �nvas�on of Georg�a, they have demon-strated the�r �ntent�on to lead a m�l�tary armada that w�ll attempt to make Russ�a a superpower once aga�n. And bel�eve me, Russ�a �s �n Georg�a because they want the�r o�l. They want to control that seaport.

Russ�a has been �n bed w�th Iran and Ch�na s�nce 1990, and I bel�eve they have demonstrated that they care noth�ng about Amer�ca’s future. Israel has developed an ant�m�ss�le defense system, and so should Amer�ca.

4. Help the Iranian people liberate themselves from the country’s theocratic dictators.

I know of Iran�ans—who call themselves Persians—who v�s�t Iran annually to be w�th the�r fam�ly members. They report that 70 percent of Iran�ans want to be l�berated from the rel�-g�ous fanat�cs who are controll�ng the�r country. Th�nk about that. At least 70 percent want to be l�berated, but they are be�ng controlled by the rad�cal 30 percent who have the guns.

Amer�ca needs to develop and deploy an �ntens�ve and comprehens�ve effort to ass�st the Iran�an people �n l�berat�ng themselves. We can prov�de �nformat�on technolog�es. We can send ass�stance to students �n un�vers�t�es, ass�stance to teachers, and ass�stance to trade un�ons. In add�t�on to these strateg�es, I bel�eve that covert operat�ons should be �n play to help the Iran�ans l�berate themselves from theocrat�c d�ctatorsh�p.

These measures could br�ng dramat�c results that would be far better than Iran�an nuclear m�ss�les that h�t New York, Wash-�ngton DC, San Franc�sco, Los Angeles, or any Amer�can c�ty. I

fund managers more flex�b�l�ty or s�mply reject�ng new d�vestment measures.9

Amer�cans must cont�nue to see the cr�t�cal need to demand that Amer�ca stop financ�ng Iran’s nuclear power advancements.

Why are OPEC leaders hold�ng emergency meet�ngs regard�ng the pr�ce of o�l? Because the�r �ncome �s presently fall�ng l�ke a rock.

Iran �s exper�enc�ng a rap�d decrease �n �ncome w�th the current econom�c global meltdown. Our enem�es don’t want us to find alternat�ve energy sources. They don’t want us to conserve energy, and they certa�nly don’t want us dr�ll�ng for o�l. They want to hold us hostage to the�r o�l so we can finance the�r nuclear product�ons and man�acal dreams of a nuclear holocaust for Israel.

If the mere ment�on of conservat�on, alternat�ve fuel sources, and added dr�ll�ng causes OPEC leaders to suddenly assemble, what would happen �f we d�vested our dollars, dr�lled for o�l on our own so�l, developed alternat�ve fuel sources, and conserved our energy?

We could stop the flow of seventy b�ll�on dollars per year to countr�es that seek our destruct�on.

The energy cr�s�s �s the “Ach�lles’ heel” of Amer�ca’s secur�ty. We must solve th�s energy cr�s�s, and solve �t now!

2. Drill here; drill now. Drill, baby, drill!The second step we can take �s to call our U.S. senator or

congressman and tell them to start dr�ll�ng for o�l r�ght now �n the Un�ted States of Amer�ca. Dr�ll �n Anwar. Dr�ll offshore. Dr�ll �n Colorado. Dr�ll �n Wyom�ng. Dr�ll �n Utah. Dr�ll �n your bathtub �f there �s a chance you m�ght str�ke o�l.

Amer�ca must end �ts add�ct�on to fore�gn o�l. We need to develop w�nd power, nuclear power, b�o power, solar power, coal power, and every alternat�ve fuel source �mag�nable. Every person �n Amer�ca needs to get that message �n h�s or her m�nd. We should make our pos�t�on aga�nst fore�gn o�l depen-dence clear by vot�ng aga�nst every person �n Congress who �s prevent�ng alternat�ve fuel development from happen�ng.

We are a democracy—and government offic�als are elected

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over the thorny �ssue, say�ng they w�ll allow a twenty-s�x-year-old ban on new explorat�on to exp�re.12

It �s my op�n�on, as well as that of at least 74 percent of Amer-�cans, that we need to �mmed�ately reduce the OPEC control problem. Because Amer�cans are talk�ng about dr�ll�ng and the current econom�c cr�s�s, the pr�ce of o�l has begun fall�ng and �s cont�nu�ng to go down as I’m wr�t�ng th�s book. But don’t forget the “pr�ce roller coaster” we have been on! Pr�ces w�ll go down and up aga�n as the OPEC powers yank our puppet str�ngs.

The current o�l energy cr�s�s has produced a new cr�me wave �n Amer�ca. Th�eves are now steal�ng gas and d�esel fuel from farms and ranches �n rural areas and from gas stat�ons. The other n�ght wh�le I was watch�ng our local news, I saw one of the sl�ckest thefts I’ve seen �n a long t�me. Someone had pulled a huge tra�ler �nto a serv�ce stat�on. From �ns�de that tra�ler, th�eves pulled up the floor, und�d the l�ds to the gas tanks that were �n the ground, put down huge hoses, and sucked out thou-sands of gallons of gas and d�esel, then drove off.

Farmers are be�ng pushed to the financ�al edge because people are steal�ng the�r fuel. One farmer �n Cal�forn�a made th�s statement: “It’s an ep�dem�c, g�gant�c problem. In Kern County alone, we’re gett�ng reports of five to seven d�esel thefts from farms a week. It’s happen�ng �n other parts of the San Joaqu�n Valley, too.”13

If you enjoy eat�ng, you need to be concerned about the well-be�ng of agr�culture �n Amer�ca. But �t’s not just happen�ng �n the farmlands of Amer�ca; th�eves are steal�ng grease from restaurants to make b�ofuel. Pol�cemen are now be�ng put on b�cycles �n major c�t�es to save fuel, and others are now walk�ng the beat �nstead of dr�v�ng �n squad cars. Th�nk about th�s: �t �s hard to g�ve “hot pursu�t” to th�eves who are steal�ng thou-sands of gallons of d�esel fuel at local gas stat�ons when you are pursu�ng on a b�cycle!

Add�ng more problems to an already cr�t�cal energy cr�s�s, there has even been talk of gas rat�on�ng due to the devas-tat�ng Hurr�canes Gustav and Ike �n 2008. Recently, John Hofme�ster, former pres�dent of Shell O�l Co. and one of the

assure you that any c�ty w�th�n one hundred m�les of the coast of Amer�ca �s an open target for a m�ss�le launched at sea by Iran.

oil—tHe we apon oF war

We are now exper�enc�ng an econom�c war aga�nst Amer�ca through o�l. Amer�ca has not bu�lt a refinery s�nce 1976. We have been financ�ally raped by OPEC wh�le Congress �s look�ng the other way. Every t�me you stop for gas, you exper�ence the pa�n at the pump. We have enough o�l offshore and �n Amer�ca to g�ve us del�verance from OPEC control, yet our Congress �s allow�ng Saud� Arab�a to control our economy, our nat�onal secur�ty, and your personal financ�al secur�ty by bow�ng to OPEC’s demand that we stop dr�ll�ng for o�l here �n Amer�ca.

Gas rose to more than four dollars a gallon �n some states. I can remember when I bought gasol�ne for fifteen cents a gallon. What do you th�nk w�ll happen when Iran dec�des to stop a sh�p �n the Stra�t of Hormuz, and the pr�ce of gasol�ne doubles to e�ght dollars per gallon—�f you can get �t at all?10

Several years ago on one of my telev�s�on broadcasts, I sa�d that gas would cost three dollars a gallon. People wrote me from all over the country say�ng, “That’s �mposs�ble. . . . It w�ll never happen.” Now we pray for three dollars a gallon of gas!

It �s a fact that the OPEC o�l barons of the M�ddle East control Amer�ca’s economy and your financ�al secur�ty. The only way to get out of the�r control �s by access�ng the resources that Amer�ca has—and us�ng them.

W�th gasol�ne at four dollars per gallon, the average fam�ly �n Amer�ca w�ll spend four thousand dollars more per year for gas. A Zogby Poll posted June 20, 2008, has shown that 74 percent of Amer�cans favor �ncreased offshore dr�ll�ng for o�l �n Amer�ca.11 In sp�te of that, a major�ty of the Congress has res�sted every effort to dr�ll for more o�l.

The �ssue of offshore dr�ll�ng has been a heated d�scuss�on �n our current pol�t�cal elect�on-year cl�mate. Recently, after months spent vow�ng to protect the nat�on’s coastl�nes from new offshore o�l dr�ll�ng, Congress caved to the Wh�te House

46 | Financial A r m A g e d d o n A Fight   for  World  Contro l   |  47

was donated to UC–Berkeley’s Center For M�ddle East Stud�es from two Saud� she�ks l�nked to fund�ng al-Qaeda; $2.� m�ll�on dollars to Harvard; $8.1 m�ll�on dollars to Georgetown; $11 m�ll�on dollars to Cornell; $1.� m�ll�on dollars to Texas A&M; $� m�ll�on dollars to MIT; $1 m�ll�on dollars to Pr�nceton. Rutgers rece�ved $� m�ll�on dollars to endow a cha�r. So d�d Columb�a, wh�ch tr�ed to obscure the money’s source. Other rec�p�ents of Saud� largesse �nclude UC–Santa Barbara, Johns Hopk�ns, R�ce Un�vers�ty, Amer�can Un�vers�ty, Un�vers�ty of Ch�cago, Syracuse Un�vers�ty, USC, UCLA, Duke Un�vers�ty and Howard Un�vers�ty, among many others.16

The �ntellectual po�son from these stud�es has poured �nto the m�nds of our un�vers�ty students for years. What �s the �rony of th�s? We’re pay�ng the M�ddle East professors �n our un�vers�t�es to po�son our sons and daughters w�th the b�ll�ons of dollars Amer�ca spends to fill our gas tanks. Our money �s send�ng rad�cal Islam�c teachers to Amer�ca’s un�vers�t�es to teach our ch�ldren to hate the Un�ted States of Amer�ca and to hate Israel.

For the first t�me Amer�ca �s �nvolved �n a war where o�l �s go�ng to determ�ne the v�ct�m and the v�ctor!

most �nfluent�al vo�ces �n the o�l �ndustry, called for “short-term gasol�ne rat�on�ng by �ntroduc�ng odd-even purchases based on an automob�le’s l�cense plate and by l�m�t�ng the amount of gasol�ne dr�vers can purchase.”14

wHat is BeHind tHe energy crisis?

Dur�ng the energy cr�s�s of 1973 we had long gas l�nes. Infla-t�on rose by 20 percent. Dur�ng the Carter adm�n�strat�on, Amer�ca faced one of �ts toughest energy cr�ses �n 1979 when OPEC �nst�tuted a ser�es of o�l pr�ce �ncreases that sent gaso-l�ne pr�ces skyrocket�ng and led to severe shortages. Why d�d OPEC create th�s gas cr�s�s �n Amer�ca? The Islam�c OPEC countr�es hate Israel, and they hate Amer�ca for help�ng Israel. When Amer�ca would not d�stance �tself from Israel, OPEC �mmed�ately slowed down the o�l product�on and slowed down the del�very, result�ng �n skyrocket�ng gas pr�ces and �nflat�on.

It can happen aga�n! Today, 30 percent of the corn crop �s go�ng �nto b�ofuel.1� What’s the result? H�gh food pr�ces. Every corn product �s skyrocket�ng. The pr�ces of beef, ch�cken, and pork are also go�ng up, because cows, ch�ckens, and p�gs eat corn! Us�ng a food source to make a b�ofuel �s not a br�ght �dea.

Arab o�l barons control the product�on of o�l and have the power to blackma�l the nat�ons of the world to do the�r b�dd�ng. OPEC �s try�ng to destab�l�ze Amer�ca’s economy through o�l. And they’re try�ng to create hyper�nflat�on. Unless our country starts develop�ng a way to end the add�ct�on to fore�gn o�l, OPEC w�ll be successful �n �ts attempts to completely destroy our economy.

OPEC �s also us�ng the b�ll�ons of dollars we are send�ng them for o�l to bra�nwash our college and un�vers�ty students to hate Amer�ca and Israel. In an art�cle posted on Front PageMagaz�ne.com, Lee Kaplan stated:

The money the Saud�s are pour�ng �nto our un�vers�t�es �n the form of g�fts and endowments �s alarm�ng: K�ng Fahd donated $20 m�ll�on dollars to set up a M�ddle East Stud�es Center at the Un�vers�ty of Arkansas; $� m�ll�on

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