A number of news items are showing that events in the Middle East continue to march us to the Second Signpost.
Iran Nuclear Deal
US president Trump is threatening to boycott or end the Iran nuclear deal, on May 12. Though the nuclear deal is far better for Iran (as I posted here), allowing the regime to continue its development of both the atom bomb and ballistic missiles, if it were to end, sanctions would likely be placed back on Iran. The Iranian people would likely protest. This would of course put more pressure on the regime to do what it is planning to do.
Trump has also made some new assignments within his cabinet that further tips the balance of the current administration towards confrontation with Iran. John Bolton will replace H.R. McMaster as National Security Adviser. Trump confirmed this on March 22, 2018. Bolton will begin his position as National Security Advisor on April 9, 2018.
An article in Newsweek has this to say about Bolton:
Bolton’s embrace of war and disdain for diplomacy may surpass even Trump’s own. Unlike Trump, who now (falsely) pretends to have opposed the Iraq war, Bolton continues unapologetically to defend the war, as well as his role in the debacle. He now calls for bombing Iran too, and for launching a first strike against North Korea—both extremely dangerous positions broadly opposed by experts across the spectrum.
Bolton is considered by many in Washington to be the ultimate neocon, the ultimate hawk. True, the Trump administration can’t just send an army to Iran without Congress having something to say about it, but with Bolton, one never knows what agitation could occur toward Iran.
In addition, Trump will be nominating Mike Pompeo for Secretary of State, succeeding Tillerson.
Pompeo is another war hawk. According to Wikipedia he has said, “I look forward to rolling back this disastrous deal with the world’s largest state sponsor of terrorism.” He also believes 2,000 sorties will destroy Iran’s nuclear capability.
The UK Independent has this to say about Bolton and Pompeo:
Armed conflict between the US and Iran is becoming more probable by the day as super-hawks replace hawks in the Trump administration. The new National Security Adviser, John Bolton, has called for the US to withdraw from the Iran nuclear deal of 2015 and advocated immediate regime change in Tehran. The new Secretary of State, Mike Pompeo, has said the agreement, which Trump may withdraw from on 12 May, is “a disaster”.
Once Iranian forces run out across the Middle East, as I have written about before, one-fourth of the world’s oil may be cut off, or at least, the US petrodollar will be killed off. If China is to be politically independent as Revelation 16:12 suggests, China must have its own source of oil outside of the Middle East (it does, its Russia), and it must have the market set up to purchase oil in a currency other than US dollars.
In this news piece from Bloomberg, China was to begin a market trading oil in gold-backed Yuan on March 26. It did open March 26, with 10 billion notional trades, with a volume on par with NY trading of West Texas Intermediate (WTI). This new market allows the creation of the “PetroYuan.” One advantage to a Chinese marker for oil is that Russia, Iran, and China do not have to buy and sell oil in US dollars, and thus be subject to US sanctions. The US can only enforce sanctions if business is conducted in US dollars.
This article gives a little background to China and Russia trading oil.
Several years ago, 100% of oil was bought and sold in US dollars. Even Russia used US dollars to sell its oil to countries like China. Iran stopped using the dollar, reducing the US dollar share of the global oil trade to 95%. Now that Russia and China have stopped using the US dollar, the US dollar share is reduced to between 80-85% of the global oil market.
The Second Signpost could take that share down to 60% which could start an avalanche, making the dollar unstable, and more of the oil market gravitating to the China market.
The bottom line is the US dollar could be reduced in value, starting a hyperinflationary trend, and at the same time, allowing China to remain energy independent of the entire coming mess in the Middle East.