BY JAMES RICKARDS: Source is DailyReckoning.com MARCH 25, 2020
Since Federal Reserve resources were barely able to prevent complete collapse in 2008, it should be expected that an even larger collapse will overwhelm the Fed’s balance sheet.
That’s exactly the situation we’re facing right now.
The specter of a global debt crisis suggests the urgency for new liquidity sources, bigger than those that central banks can provide. The logic leads quickly to one currency for the planet.
The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of special drawing rights (SDRs), and this monetary operation will effectively end the dollar’s role as the leading reserve currency.
The Federal Reserve has a printing press, they can print dollars. The IMF also has a printing press and can print SDRs. It’s just world money that could be handed out.
The IMF could function like a central bank through more frequent issuance of SDRs and by encouraging the use of “private SDRs” by banks and borrowers.
What exactly is an SDR?
The SDR is a form of world money printed by the IMF. It was created in 1969 as the realization of an earlier idea for world money called the “bancor,” proposed by John Maynard Keynes at the Bretton Woods conference in 1944.
The bancor was never adopted, but the SDR has been going strong for 50 years. I am often asked, “If I had 100 SDRs how many dollars would that be worth? How many euros would that be worth?”
There’s a formula for determining that, and as of today there are five currencies in the formula: dollars, sterling, yen, euros and yuan. Those are the five currencies that comprise in the SDR calculation.
The important thing to realize that the SDR is a source of potentially unlimited global liquidity. That’s why SDRs were invented in 1969 (when the world was seeking alternatives to the dollar), and that’s why they will be used in the imminent future.
At the previous rate of progress, it may have taken decades for the SDR to pose a serious challenge to the dollar. But as I’ve said for years, that process could be rapidly accelerated in a financial crisis where the world needed liquidity and the central banks were unable to provide it because they still have not normalized their balance sheets from the last crisis.
“In that case,” I’ve argued previously, “the replacement of the dollar could happen almost overnight.”
Well, guess what?
We’re facing a global financial crisis worse even than 2008. That’s because each crisis is larger than the previous one. The reason has to do with the system scale. In complex dynamic systems such as capital markets, risk is an exponential function of system scale. Increasing market scale correlates with exponentially larger market collapses.
This means a market panic far larger than the Panic of 2008.
SDRs have been used before. They were issued in several tranches during the monetary turmoil between 1971 and 1981 before they were put back on the shelf. In 2009 (also in a time of financial crisis). A new issue of SDRs was distributed to IMF members to provide liquidity after the panic of 2008.
The 2009 issuance was a case of the IMF “testing the plumbing” of the system to make sure it worked properly. With no issuance of SDRs for 28 years, from 1981–2009, the IMF wanted to rehearse the governance, computational and legal processes for issuing SDRs.
The purpose was partly to alleviate liquidity concerns at the time, but also partly to make sure the system works in case a large new issuance was needed on short notice. The 2009 experience showed the system worked fine.
Since 2009, the IMF has proceeded in slow steps to create a platform for massive new issuances of SDRs and the creation of a deep liquid pool of SDR-denominated assets.
On Jan. 7, 2011, the IMF issued a master plan for replacing the dollar with SDRs. This included the creation of an SDR bond market, SDR dealers, and ancillary facilities such as repos, derivatives, settlement and clearance channels, and the entire apparatus of a liquid bond market. A liquid bond market is critical.
The IMF study recommended that the SDR bond market replicate the infrastructure of the U.S. Treasury market, with hedging, financing, settlement and clearance mechanisms substantially similar to those used to support trading in Treasury securities today.
In November 2015, the Executive Committee of the IMF formally voted to admit the Chinese yuan into the basket of currencies into which an SDR is convertible.
In July 2016, the IMF issued a paper calling for the creation of a private SDR bond market. These bonds are called “M-SDRs” (for market SDRs) in contrast to “O-SDRs” (for official SDRs).
In August 2016, the World Bank announced that it would issue SDR-denominated bonds to private purchasers. Industrial and Commercial Bank of China (ICBC), the largest bank in China, will be the lead underwriter on the deal.
In September 2016, the IMF included the Chinese yuan in the SDR basket, giving China seat at the monetary table.
Over the next several years, we will see the issuance of SDRs to transnational organizations, such as the U.N. and World Bank, to be spent on climate change infrastructure and other elite pet projects outside the supervision of any democratically elected bodies. (I call this the New Blueprint for Worldwide Inflation.)
The SDR can be issued in abundance to IMF members and can also be used in the future for a select list of the most important transactions in the world, including balance-of-payments settlements, oil pricing and the financial accounts of the world’s largest corporations, such as Exxon Mobil, Toyota and Royal Dutch Shell.
So the international monetary elite has been awaiting the global liquidity crisis that we’re facing right now. In the not-too-distant future, there will be massive issuances of SDRs to return liquidity to the world. The result will be the end of the dollar as the leading global reserve currency.
SDRs will perhaps never be issued in bank note form and may never be used on an everyday basis by citizens around the world. But even such limited usage does not alter the fact that the SDR is world money controlled by elites.
But monetary resets have happened three times before, in 1914, 1939 and 1971. On average, it happens about every 30 or 40 years. We’re going on 50.
So we’re long overdue.
You’ll still have dollars, but they’ll be local currency like the Mexican peso, for example. But its global dominance will end.
Based on past practice, we can expect that the dollar will be devalued by 50–80% in the coming years.
A devaluation of this magnitude will wipe out the value of your life’s savings. You’ll still have just as many dollars, but they won’t be worth nearly as much.
Individuals will not be allowed to own SDRs, but you can still protect your wealth by buying gold — if you can find any.
It should also be no surprise Boris will implement Brexit on 31 October, the last date agreed between Mrs May’s government and the EU. Johnson was elected by Conservative constituency members to do just that. His cabinet appointees are fully supportive, including ex-Remainers (that’s politics!) and he has appointed an aggressive rottweiler, Dominic Cummings, as his Brexit enforcer. Already, his influence over Brexit strategy can be detected. There are no compromises to be had, a point which slower minds in the commentariat find difficult to comprehend and accept.
It is likely there will be an agreement on the way forward after Brexit, which could involve a transition period, but nothing like that agreed with Mrs May. If, as seems unlikely, the EU digs its heels in, the UK will walk away. That is the message being given by the new administration.
The establishment media are still wrong-footed on Brexit. The BBC, and others, have been too idle to analyse properly, taking their information from biased pro-remain sources and politicians who are out of the loop. They are still doing it. Disinformation is substituted for truth.
The EU, disinformed by Remainers including a chorus of past ministers and prime ministers, has relied on the divisions within Parliament to put Britain into a political and economic stasis. Their repeated utterances (there will be no new negotiation, the withdrawal agreement stands etc.) reflect the continuation of the EU’s established position. That is likely to change, because the EU will find it is forced to accept the dangers to its own position.
There is a crucial difference between the new cabinet and its predecessor. In Johnson, as well as ministers such as Rees-Mogg, Raab, Javid and Gove there appears to be an understanding of and commitment to free markets, unlike anything we have seen since Margaret Thatcher. Obviously, the strength of that commitment is yet to be tested.
The new reality and the dismissal of the old socialising compromisers should swing Parliament behind the instructions given to it by the electorate in the Brexit referendum. An advertising campaign to prepare everyone for Brexit without a deal starts now. The strategy is not to go to Brussels (UK-US is being negotiated first) but only when Brussels comes to its senses will a dialog commence. Facing a lost cause, Remainers are likely to melt like midsummer hailstones, and the euro-nuts, like Dominic Grieve, will sink into obscurity.
The electoral consequences are appalling for the Labour Party. By changing from its conditional support for implementing the Brexit referendum to demanding a second one with the intention of overturning the first, they have almost guaranteed that in a general election they will face a wipe-out. This is important, because it means that they have no incentive to table a vote of no confidence in Johnson’s government. They have already gambled and lost.
Because of Labour’s bad call it looks like Boris’s government will get its way and is here to stay, not only through Brexit, but beyond. The EU will have to get used to it. The Europeans have lost control over the negotiations and seem unlikely to get more than a pittance of the £39bn settlement agreed with Mrs May. When Boris refers to our friends in Europe, he actually means our adversaries. When he refers to his preference for a deal against no deal, he means a deal only on his government’s terms. Already, trade negotiations are commencing with America, existing EU trade agreements with other significant nations will be simply novated, and the whole of the Commonwealth, including populous India are ready to sign up.
This is the new reality and Dominic Cummings’s task is to ensure all government departments are firmly on message. There is bound to be a little drift from this black and white, but the process of political destruction now moves from London to Brussels. Having made such a fuss of it, the Irish border is a non-issue. The UK has no need to put in a border. With lower UK tariffs, ownership of the problem is fully transferred to the EU and the Irish government.
Assuming the Treasury has already made provisions for it, Boris needs the £39bn promised by Mrs May to the EU to be reallocated to a mixture of the health service, education, law enforcement and tax cuts. Then there’s that infamous £350m per week, which was on the side of the Brexit bus. That was gross of the Thatcher rebate, so the actual figure is closer to £275m per week, and there was an amount within that spent in the UK under the EU’s sole direction. That left £181m in 2016, sent to Brussels for the privilege of EU membership, or £9.4bn per annum. How much of that can be diverted for funding government spending depends on the new government’s tariff policies. There is no doubt that from a purely economic point of view they should be removed in their entirety.
By not paying the planned £39bn divorce settlement and gaining the £9.4bn net annual payments to the EU, Johnson has some wriggle room when it comes to funding his spending plans and tax cuts. Without it, he will have to rely on inflationary financing, and hopefully there are enough wise heads in the cabinet to dissuade him from going down that road. Therefore, if only because of the money, the odds strongly favour a hardball approach on Brexit negotiations instead of compromise.
The EU’s problems are mounting
There is likely to be an important consequence, and that is a Johnson Brexit could trigger a mounting financial and ultimately political crisis in the European Union.
A study last year by Germany’s Halle Institute estimated a no-deal Brexit would cost 12,000 jobs in the UK, and 422,000 jobs in the other 27 EU members, of which 100,000 are in Germany and 50,000 in France.[i] Yesterday, Ireland’s central bank forecast a loss of up to 100,000 jobs in the medium term in Ireland alone, on a no-deal. Clearly, the EU’s negotiators risk losing the wholehearted support of its two largest post-Brexit paymasters and others. But for Brussels, giving in on Brexit encourages rebellion from disaffected populations in other member states. Rather like the Soviets ruling Eastern Europe in the late eighties, the Brussels establishment finds itself struggling to keep its non-democratic political model intact.
It is increasingly likely Brussels will find events are spinning out of its control. For the UK, this introduces collateral damage, necessitating even more urgent separation from the EU. In a paper published at end-June, Bob Lyddon points out that a Eurozone financial crisis (which is becoming increasingly likely, as argued below) could cause the UK’s contingent liability as an EU member to be as much as €441bn. “This derives from the near-criminal irresponsibility by the UK’s negotiators”.[ii]
Whatever the numbers, there can be no doubt that this is an extremely serious issue. Furthermore, in the event of a financial and systemic crisis in the Eurozone, the UK will face its own crisis, if only because of cross-liabilities through the two banking systems. And the cyclical economic downturn that always follows the failure of a period of credit expansion is coming up on the inside rail very rapidly.
The EU economy is left badly unbalanced, with Germany dominating production and exports. Other populous member states, notably in the Club Med and France, are in a financial mess. They have relied on Germany’s production to provide for their unproductive profligacy. Her production output is now contracting.
Germany has been hit by three adverse developments at the same time. There is President Trump’s tariff war against China, which has undermined Germany’s largest growing markets at the eastern end of the Silk Road, and the threat he will deploy similar tactics against Germany. There is EU environmental legislation, which is making Germany’s motor production obsolete and forcing manufacturers to put a time-limit on existing production while investing enormous sums in electric technology. The damage this has done extends down the whole production chain, undermining the Mittelstand.
Then there is the crisis in Germany’s major banks, most publicly seen in Deutsche Bank because of longtail liabilities from its investment banking division. But all German banks, as well as those throughout the EU, face a lethal combination of margin compression from negative interest rates and a legacy of an expensive branch network when customers are migrating to online banking. The slump in German production now provides an additional threat to their loan books.
In the background, there is the turn in the global credit cycle from its expansionary phase into a periodic contraction, usually resulting in a credit crisis. To understand the transition from credit expansion to a tendency for it to contract is to recognise that the expansion of credit as a means of stimulating an economy depends on tricking economic actors into believing prospects are improving. When the evidence mounts that they are not, monetary stimulation fails, and credit begins to contract. Despite the ECB maintaining negative interest rates, despite the ability of highly-rated companies to raise finance at zero or even negative rates, and despite the ECB’s offer to pay companies to borrow (which is what deeper negative rates amount to) economic actors are now aware that it is all deception.
This is why Germany now has all the appearances of being in the early stages of a deepening economic slump, and there is nothing monetary policy can do about it. Brexit will simply add to these problems, not just for manufacturers, but for their bankers as well, as the Halle Institute report implies.
It is increasingly difficult to see how with escalating budget deficits in member governments Brussels can afford to continue with its head-in-the-sand approach to trade negotiations with Britain. The eurocrats naturally retreat into more protectionism when they see the system threatened. But asking Germany, France, the Netherlands, Austria, Finland, Sweden and Denmark for more money when their tax revenues are slumping is unlikely to cut much ice.
The new Johnson team will know some of this. There may be a temptation to make a portion of the £39bn, promised by Mrs May, available to Brussels to alleviate their pain in return for a quick deal. This goes against the new hard attitude of the Johnson government, exemplified by the presence of Dominic Cummings. But we shall see how this one pans out.
The UK economy Post-Brexit
Meanwhile, as economist Patrick Minford recently pointed out, a US-UK trade deal could lower prices of goods in the UK by as much as 20%, being the effect of EU tariff protection against global competition, raising prices above the world price level by that amount. [iii] Minford estimates a UK-US trade deal would lead to an overall gain to UK GDP of between four and eight per cent, a markedly different outcome from the project fear propaganda of the old establishment. And in the event of No Deal with the EU, the UK Treasury will receive up to £13bn in tariffs from EU importers, assuming no reduction in EU imports. Obviously, there will be substitution of EU goods for goods from the US and elsewhere, once trade agreements are in place, so this will be a maximum revenue figure.
The point is No Deal is not the disaster promised by the May establishment and its business lobbyists. It is a disaster for the remaining EU. Exiting the EU offers the Johnson government a good start, a clean sheet. Any compromise with the EU on trade and money detracts from this benefit.
It is an opportunity for Britain to reset the approach to political economy, which is our next topic. For attention-deficit politicians, there are two important factors to understand that are central to formulating post-Brexit policy: the reason why trade imbalances arise, and therefore how trade and economic policies should be constructed, and the destructive effects of inflationary financing.
How trade imbalances arise
It is vital to understand the source of trade imbalances, so that the mistake made by President Trump, which is driving the world into a Smoot-Hawley-style 1930s slump, is not repeated by Britain. The common error is to believe that the exchange rate sets trade surpluses and deficits. It therefore follows, the argument goes, that artificially raising the price of imported goods by imposing tariffs achieves the same effect.
The simplest explanation to understand why this is wrong is to start with a theoretical sound money example before progressing to the current fiat money environment. When gold was money and if unbacked currency and credit were not available, imports could only be paid for in gold or fully-backed gold substitutes. The same is true of exports. An individual borrowing to buy an imported good has to source gold or a fully-backed gold substitute, so the provider of money has to defer consumption, which includes that of imported goods. And unless the people in a nation collectively adjust the amount of gold in circulation, imports will always balance exports.
Compare this with nations trading with each other using unbacked state-issued currencies. These are issued at will by central banks as new money and by commercial banks in the form of bank credit. Therefore, anyone can buy an imported good without having to have the money, so long as a bank advances the credit.
Money and Credit expanded out of thin air replaces the need for imports to be paid for by exports. Now that all countries work their currencies the same way, the trade balance becomes a relative matter. Other things being equal, the country which expands its money and credit the greatest ends up with the largest trade deficit, and the one that expands the least the largest trade surplus.
But national statistics are designed to reflect money spent on consumption (GDP) separating out money spent on capital items. A nation whose population has a savings habit will spend less on imported consumer goods than a nation with a lower tendency to save. This is why Japan’s monetary expansion has not fuelled a trade deficit in consumer goods. In other nations, such as the US and UK, where personal savings are now minimal, credit expansion leads to chronic trade deficits.
The expansion of fiat money to bridge the gap between tax revenue and government spending similarly leads to a rise in imports, because the expansion of money and credit, when they are not saved by the consumers who ultimately benefit, always ends up fuelling consumer imports, often as a second or third order event. This gives rise to the twin deficit phenomenon commonly observed in both the UK and US, where consumer savings are virtually non-existent.
The destruction arising from inflationary financing
The Keynesian policy of stimulating an economy through a temporary budget deficit relied on deceiving economic actors into thinking there was more demand in the economy than existed. Like all confidence tricks, it eventually fails. Governments end up with perpetual budget deficits, which trend larger with every unresolved credit cycle.
Expanding money and credit as a means of funding government spending through the creation of debt has now become central to state finances everywhere, including the UK. The advantage for governments is very few people understand that this form of finance transfers wealth from the producers in an economy to the state. But the government is eating its own seed-corn by impoverishing its tax base, which if continued leads inexorably towards the destruction of its currency.
Any politician who claims to be a free-marketeer is not one unless sound money, devoid of inflationary financing, is embraced. Taking into account the importance of sound money and the reasons trade imbalances arise, a Johnson government that understands these issues will be equipped to fashion economic and monetary policy for the future. It is not enough to merely pay lip service to the necessary objectives, but to grasp the economic theory behind them, so that socialist and neo-Keynesian claptrap can be fully exposed in reasoned debate.
These are two objectives to strive towards, and will necessarily take time, because changes in government policy must steer the electorate along with it. They should be pinned up as mission statements on the notice boards in Downing Street. That being accepted, the following supporting policies must be implemented to re-orientate the ship of state towards economic success:
Tax policy. Tax cuts should be broadly financed by reductions in government spending, not through increasing the budget deficit in the hope that the economic stimulus will generate higher taxes. Welfare must only support people in genuine need, not those with just a sense of entitlement.
Government spending. Means must be found to reduce the proportion of government spending in the economy as a whole, to reduce the burden on the productive private sector. A financial and economic crisis requires departmental spending to be slashed, not just future planned increases cut, as was the case under Gordon Brown in 2009.
Encouragement to save. Taxes should be removed from savings and capital gains. Inheritance tax must be abolished. This is to allow people to accumulate personal wealth and to reduce the need for the state to provide.
Trade. Trade agreements with other nations should be viewed as a first step towards wholly free trade. By exploiting the comparative advantage of allowing people to buy what they want from providers of goods and services irrespective of location, capital resources will naturally be redeployed towards their more efficient use. This is why understanding that trade imbalances do not arise from currency differentials is so important.
Monetary policy. Steps must be taken to restrict the Bank of England from manipulating the economy through monetary policy. Targeting inflation and employment must be abandoned, and markets allowed to set interest rates. Credit expansion should be curtailed by ensuring that UK banks and branches of foreign banks operate to stricter capital rules. Goal-seeking stress-testing must end. In the longer-term, banks should lose the protection of limited liability, which has allowed bankers to make rash lending decisions without bearing the ultimate cost.
Gold. The Treasury must replenish the nation’s gold reserves. The risk of a global currency crisis is increasing by the day, and foreign currency reserves will need to be reallocated at least in line with those of other major nations.
Brexit is an opportunity to reset economic, monetary and trade policies. The implications of getting rid of the EU millstone go far beyond the leaving date of 31 October. Assuming a Johnson government has a good grasp of why free trade benefits the economy and why trade imbalances exist, combined with the courage to steer Britain towards the long-term prosperity offered by free markets, it will derive its future power from a strong economy instead of merely claiming it based on the past.
Re-Digging the Wells of Revival: Dutch Sheets’ Visits to Cane Ridge and Wales
Scripture makes it clear that the Lord accomplishes His purposes on the earth not through one man or movement, but through the labors and legacy of many across multiple generations (Heb. 11:39-12:2). Working through a divine timeline that extends beyond a single lifetime, the Lord desires that we honor and build upon the foundations laid by those who have gone before us.
In Genesis 26, we are told that when Isaac dug water wells, he didn’t get to start with his own. Isaac recognized his hereditary right and responsibility to re-dig and restore the ancient wells of his father Abraham, which the Philistines stopped up after he died.
It was after re-digging his father’s wells that that the Lord appeared to Isaac and pronounced over him the same blessing previously spoken over Abraham. Not long after that, the Lord allowed Isaac’s servants to unearth his very own well.
I have spent more than a decade of my life teaching about the synergy of the ages; exhorting believers that in order for us to move forward in fulfilling God’s purposes for our generation, we must reach back to remember, honor and add to what He has done through previous generations. Through a recent sequence of events, however, the Lord once again invited me to tap into some historic wells of revival in order to release a fresh river of His glory to flow into our generation.
A few months ago, I was invited to minister at a small log cabin-style church in Kentucky, which happens to be the site of the historic Cane Ridge Revival of the late 1800s. During that powerful move of the Holy Spirit, tens of thousands of people came by wagon to the hillsides of Kentucky, hungry to hear the preaching of the Word and bask in the glory of God for days at a time. At these camp meetings, it was common to see dozens of ministers preaching simultaneously across the countryside, while multitudes were strewn along the ground, being moved upon by the extremely weighty presence of God. This revival swept through the southern states and beyond, helping to birth the Second Great Awakening! I found it most interesting that the Lord set up my itinerary in such a way that from Cane Ridge, He sent me to Wales—another extremely significant site of revival history!
Moving From Well to Well
The nation of Wales is the place where revivalist Evan Roberts was baptized in the fire of God and commissioned by the Lord as a leader in the world-reaching Welsh Revival of the early 1900s. So many people were radically saved in that spiritual outpouring, that the nation of Wales experienced societal transformation. Judges had no cases to try, and law enforcement officials had no crime to deal with, so they formed traveling evangelistic singing groups!
The presence of God was so strong among the common people that pubs closed down, sporting events were cancelled, thousands of depressed and drunken miners came to Jesus, and hundreds left everything behind to give their lives on the foreign mission field. It is believed that since the 1900s, there has never been a revival in world history that cannot trace its roots back to the nation-shaking Welsh Revival.
Wales was also home to Rees Howells, another significant contributor to revival history. His life of intercession, chronicled in the biography, Rees Howells Intercessor, has greatly influenced many people and movements of prayer, myself included. After being powerfully swept into the Welsh Revival, this former miner-turned-missionary devoted the rest of his life to serving the purposes of God for his generation—in the place of prayer.
In 1924 Howells founded The Bible College of Wales to train others in what the Lord had taught him. That place soon became a house of prayer for all nations, with students and staff joining Howells in fighting world battles on their knees. What transpired on that small campus unquestionably affected the course of world history, and has left a legacy of prayer that the Lord is inviting us to lay hold of today.
Fighting the Battles of the Kingdom
Howells’ intercessors prayed all through World War II, engaging in the spiritual warfare necessary to take down the demonic powers encroaching upon the governments of nations through the dictatorial leadership of men like Hitler, Stalin and Mussolini. They also prayed fervently through the 1948 U.N.-mandated vote on Israel’s status as a nation. Even after Howells’ passing, their ardent intercession continued under the leadership of his son, Samuel. They prayed through the Cuban missile crises, the Cold War between the U.S. and the USSR, and also helped pray in the signs and wonders movement of the 1940s, 1950s and 1960s.
Their story could be likened to Moses’ hilltop intercession affecting Joshua’s frontline battle. Scripture states that as long as Moses held up the staff of God in his hand, Joshua and Israel prevailed, but when Moses let his hands down, the enemy prevailed. Through this prophetic act of intercession—lifting up the rod, which represented the authority and power of God—the Lord faithfully responded by releasing victory on the battlefield (Ex. 17:8-16.) Likewise, Howells and his intercessors continually “held up” spiritual authority in the heavenly realms while soldiers experienced miraculous breakthroughs, enabling them to execute victory on the battlefield.
During WWII in particular, God would give Howells prophetic insight concerning what was going to happen next and where they needed to strategically focus their intercession. After class each day, these devoted intercessors would contend in travailing prayer for hours and hours on end, sometimes praying through the night. They were determined to match in the spirit realm, the level of intensity and self-sacrifice experienced by heads of nations and soldiers on the frontlines of battle.
Impassioned about fulfilling their godly calling, Howells said, “If I am not called up to fight, and I know another way to help them and I don’t do it, I ought to be killed instead of them. They are facing death … for you and me. If they suffer more than we suffer for them, it will be our lifelong shame.” Howells and his students gave their lives to fighting the battles spiritually as if they were called to the frontlines of the war. With each new assignment, these hidden intercessors prevailed in their prayers, and the world marveled and breathed heavy sighs of relief at such dramatic turnarounds.
Re-Digging a Well
Despite the rich revival history at The Bible College of Wales, this spiritual well had fallen into disrepair. After the death of Howells’ son, Samuel, the directors of the school found it too costly to maintain the campus and keep the school running. For decades, the property went further into decay and was about to be sold to a developer for housing.
The Lord, however, had other plans and saw to it that this spiritual well was preserved and unstopped. He moved upon the heart of a pastor from Singapore, who not only caught God’s vision for restoring that place but also was willing to pay the price to make it happen. This pastor raised $10 million to purchase and restore the historic Bible College of Wales so that people from around the world could drink from this well of revival once again!
As a student of revival history, a teacher on intercession, and one called to awaken this nation to the purposes of God through prayer, it has always been a great desire of my heart to visit Wales and drink from its spiritual wells. Right after my time of ministry at Cane Ridge, I had the great honor of not only visiting the Bible College of Wales, but also serving as a key participant in the rededication ceremony for this historic well of revival.
During our stay at the Bible College, Ceci and I were assigned to the room of Rees’ son, Samuel Howells. This room sits directly above the prayer room where decades of nation-changing prophetic intercession took place—what a privilege! Among the gathering of key leaders from around the world, I was also extended the honor of rededicating Howells’ Ebenezer stone of remembrance (1 Sam. 7:12).
Similar to what the prophet Samuel did to commemorate Israel’s victory against their enemies, Howells set up a huge stone as a continual reminder of the Lord’s providence and provision. Inscribed on one side of its marble top is the phrase, “Faith Is Substance.” On the other side, the words, “Jehovah Jireh.” When, as part of the rededication ceremony, this remembrance stone was relocated to the center of the campus and anointing oil was poured upon it, we could sense the glory of the Lord.
In that very holy moment, God met with me in a powerful way. I was overcome with the Lord’s kindness at gathering us all to this place to drink from this historic well. In that moment, I pledged to help carry on Howells’ legacy of prayer and recommitted my life to raising up a movement of prayer to take out the giants of our day and usher in a Third Great Awakening.
The rededication ceremony at the Bible College was not the only special appointment the Lord had planned for me. The same Singaporean leaders that restored Howells’ campus also purchased the little church in Wales where revivalist Evan Roberts met with God.
During the renovation process for converting that church into a house of prayer, the original Bible used by Evan Roberts during the Welsh Revival was found sitting under decades of dust on the pulpit of the church! I marveled at this find. You can see the Bible and the remembrance stone among the pictures below.
Paying the Price
I am so grateful for the Singaporeans who accepted the Lord’s invitation to take on the extremely costly and painstaking restoration of this well of revival history. But the investment required for releasing God’s river of revival into the nations of the earth doesn’t end with restored facilities.
God desires to raise up Roberts-like revivalists and bands of Howells-like intercessors through which He can release a greater awakening and shift the course of nations today. This will require a high level of commitment. These men were so powerfully used of God because they complied with the great extremes God required of them. This is a principle repeatedly seen in Scripture.
As I prayer walked the grounds of the Bible College of Wales, while I communed with the Lord in the church where Evan Roberts met with God, and even now, I hear Holy Spirit asking, “Who will pay the price in this generation?” God used Howells and his intercessors to contend against and defeat the demonic powers and principalities trying to take over the world.
Today, the goliaths of Islam, communism, human trafficking, abortion and the sexual rights agenda are standing at our door. Never has there been more at stake. We need the same warrior spirit of Howells’ era to arise in us—both in the place of prayer and in being a prophetic voice. No doubt, God has a plan. He always does something great in the face of the impossible!
I believe the Lord allowed for the restoration of these spiritual wells in Wales because He is releasing a spirit of contending prayer and revival into the nations of the earth once again. I believe we will see a new momentum of intercession—appealing to heaven and fighting kingdom battles on our knees, until the greatest Great Awakening the world has ever seen occurs.
You are a part of this! There is a spiritual inheritance available to you. Young people, especially, it is your time to arise! The Lord is anointing you to overthrow the Goliaths of our day and contend for the destinies of nations. The Lord is searching for those who will say, “I will pay the price.” For those who invest their lives in these costly battles of intercession, He will show Himself strong! (See 2 Chronicles 16:9.)
Dutch Sheets is an internationally recognized teacher, conference speaker and author of The Power of Hope. He has written more than 20 books, translated into over 30 languages. His first work, Intercessory Prayer, sold nearly a million copies and is being used to empower believers worldwide for passionate prayer and societal transformation.
It has become clear in the last few years that the western media is controlled and owned by globalist leaders who have a hidden agenda.
The truth about what is really happening in Syria and the world is opposite to what we hear on the nightly news. Sadly we are all subject to well crafted propaganda designed to promote the agenda of the ruling class.
Is that conspiracy theory? After doing extensive research on the global financial system and the philosophies of many of the leading economic and political institutions in the world since the 2008 GFC- I have come to realize that the TRUTH has been hidden on purpose.
These three video’s will give you a little glimpse of what is happening. Maybe when the Snowdon feature film is released we will learn a little more? Read more on these issues at this website. Alan
Why Everything You Hear About Aleppo Is Wrong- Vanessa Beeley
I am hearing that there could be another serious financial correction coming before during October 2016.
Harry Dent in his Sept 2015 book called “What to do when the Bubble Pops” has some concerning and informative research. Plus many Youtube stories and now more main stream outlets are saying there is a serious correction or worse coming soon . It does concern me that so many are now using alarming news reports and headlines in order to try to sell their newsletters/books and seminars.
There some important facts and trends appearing – these are the facts:
According to Harry Dent the world is facing some serious ageing demographics (Baby Boomers) that will cause major downturns in many industries – and this is one major reason causing the economic concerns globally.
Alan Greenspan has recently come out sounding a warning about the ageing baby boomer trend and that Governments especially in the US are not focusing on the issue, which according to Greenspan – if its not addressed will cause serious economic problems.
APRA – Australia financial regulator has released a report sounding a warning that Australian Banks are at serious risk because of the high private debt levels in average families who have mortgages. The private debt levels are higher than back in 2008, so if another GFC hits jobs then there will be a quick and significant level of mortgage defaults that might bring down a few major banks.
The China stock market is currently down 42% from its past highs, and the Chinese slow down has already been hurting Australian Industry and could have more serious effects in Australia – especially if China continues to slow. Dent believes China will have a major ongoing downward corrections because of all the Malinvestment.
Retired US Congressman Ron Paul – is warning the world that the US Government is getting ready to confiscate large portions of it’s citizens assets, in particular the 7 Tillion Dollars of private super/retirement funds in order to prop up the Government and the Banking system.
China and other BRIC’s countries have been buying up large amounts of gold with the possible plan to establish a new reserve currency – The Chinese Yuan Renminbi will be added to the United Nations/IMF- SDR (Special Drawing Rights) currency on October 1st 2016.
All G20 nations are committed to giving their banking system the ability to legally “Bail in” or recapitalize the failing banks with the savings of their depositors.
The counties that need close attention right now are bond markets in Spain and Italy as they are the next canary in the mine.
Oxfam UK released a report in Jan 2016 about what has been happening in the world economy as it relates to financial inequality. I am not a socialist but when you hear that “62 people own as much as the poorest half of the world’s population” and 1% of the world’s population owns more 99% of the worlds wealth you realize we have a real problem!
Is it any wonder that Donald Trump is getting so much support from the common man. It’s because the average wage earner and small business owner is waking up that the system is rigged and that a very small % of wealthy elite – eg 62 people are getting control of the world and the peoples governments in every nation.
When this happened in France in 1789 the people revolted in the French Revolution. Now it looks like its a global phenomenon.
When not one top banking executive has been jailed because of all the corruption exposed during the 2007-8 GFC – it is now obvious that not only are the big banks do big to fail they are now do big to prosecute!
If there is another GFC the Banks now have legal authority to take depositors money (Bail in) to recapitalize their balance sheets.
Its time we move away from what seems a like a Death Economy towards a Life economy. A Preferred Economy that is gives back hope of a better future for all.
If you want to check out the Oxfam report click here www.oxfam.org
Alfred Deakin was Australia’s 2nd Prime Minister who was also the nation’s founding father! Australian’s know very little about the man who served his nation so faithfully, with such dedication and humility that even his political enemies loved and admired him.
He established the Australian High Court; he was the founder of the Navy and pioneered many of Australia’s foundations. He worked tirelessly towards seeing the unification of the Australian colonies into a great federation and made Australia one nation. In the first Federal government he was Attorney General and Edmund Barton’s right hand man. Serving as Prime Minister for 3 terms, his Government passed more than 17 critical pieces of legislation and provided important national stability in a very chaotic unstable period.
He was one of the world’s greatest orators of his time, extremely literate; he read 100 books (in English and French) every year for much of his life. Few people understood where his incredible energy, humility and character came from, but the secret was his prayer life.
He wrote down 400 prayers in a small private journal and within these pages are words of profound insight, humility and desire to know the will of God and a desire to be filled with Gods spirit so he could be empowered to serve his nation.
He saw Heaven and heard Gods voice speak to him. Deakin was coming home late one night from Parliament, to his house in South Yarra that was one block from Melbourne botanical gardens – it was just after he lost the election in April 1910 and he was feeling jaded and his nerves were on edge. It was then he heard a voice saying to him, in a pleasant, cheerful and a colloquial tone “Finish your job and turn in” Deakin said ” as if it had come by telegram or cable from afar, but from a living sender much better informed, of far wider outlook and deeper insight and higher authority than my own reflections supply”
These two men are well known for their out spoken position on the mistakes global leaders are making, that may well crash the financial system. They believe that centralized banking is what is causing the problems in our global economies.
David Stockman will take you back to before world war 1 and explain what has happened and how history could have been very different if a few people made a few different decisions. We would have been living in a very prosperous world for ALL people and not just a select few.
David Stockman Talks Historical Dominoes
He is a former Congressman from Michigan, former Director of the Office of Management and Budget under President Ronald Reagan, and former partner at The Blackstone Group. Stockman is the author of The Triumph of Politics: Why the Reagan Revolution Failed (1986) and 2013’s The Great Deformation: The Corruption of Capitalism in America. On the show today we discussed how some of his work traces “historical dominoes.” It was fascinating to learn how certain events in history led to others and so on, until we wind up with thus and so… For example: how did the creation of the Fed in 1913 lead to the 2008 crisis? What was the chain of events?
Gerald Celente is an American trend forecaster, publisher of the Trends Journal, business consultant and author who makes predictions about the global financial markets and other events of historical importance.
Gerald can get a little excited in his interviews and this one is no exception – but don’t let that detract – the interviewer gets him back on track and he has some profound things to share including this desire to stay in USA and fight for the freedom of the country through a new initiative called http://occupypeace.us/ It seems like a new Revolution is beginning!
The Russian Ruble has dropped by 50% to the US Dollar
This drop is mainly due to International Sanctions and the Oil price dropping from $107US to $52US in last 6 months. This is now starting to cause serious hardship inside Russia and the ramifications for 2015 are troubling. Certainly it will cause significant inflation and this is one reason why the Russian central bank has raised interest rates to 17% overnight.
About $100 Billion dollars have already left the country during 2014 seeking safer waters which has caused the central bank to tighten capital controls on the flow of money.
Devaluations of this size can cause runaway hyperinflation which is when local owners of Rubles buy up any fixed assets and trade-able goods before their paper money looses more value. This increases the velocity of money ( the speed the paper money changes hands) which further increases the price of goods. This is what happened in Germany leading up to the 2WW.
There are some concerning similarities to what happened leading up to the WW1 and WW2 when you consider the super powers arguing over Ukraine, 100 years from the conflict in the Balkans that started the First World War. Then consider that Japan went to war when the US put an oil embargo on Japan because of Japans expansionist actions in 1930’s.
Oil is again in the center of the issue and again embargo’s are being used to try and coerce Russia to back down over Ukraine.
There has even been some suggestion that the US administration wants a regime change in Russia and this explains Washington’s actions and rhetoric. It is clear that both the Russian President Putin and US President Obama don’t like each other and especially when Putin out maneuvered Obama in Syria. Could it be that Obama is playing a very risking game of Russian roulette?
The question is – why is the West so upset over Ukraine when Russia has such a long history in that region and share a border with the country. It is only natural that Russia will want to secure its borders and would not want NATO living so close. It is interesting to note that the current Kiev Government was supposedly setup by western powers, after deposing a pro Russian elected Ukrainian Government.
Lets be praying that sound heads prevail during these times as we maybe in store for some rocky oceans in the coming years.
Syria, March 04, 2014: A Jihadist group in control of the northern Syrian city of Raqqa has given Christians a devastating ultimatum: convert to Islam, pay the jizya tax and abide by a list of restrictions, or else risk being killed.
In a statement posted online, the Islamic State in Iraq and the Levant (ISIS) said it would give Christians protection if they paid the tax and agreed to its conditions, adding:
“If they reject, they are subject to being legitimate targets, and nothing will remain between them and ISIS other than the sword.”