YOU ARE NOW ON

THE CUTTING EDGE

Copyright © 2006 Cutting Edge Ministries. All rights reserved. See full copyright notice below.

Does anyone remember President Bush's infamous "Axis of Evil" declaration? That statement was so bold and so aggressive that some people in the world -- especially the leaders of those nations -- took Bush's statement as a Declaration of War. Let us review that momentous event, which occurred shortly after the attacks of 9/11, as we quote segments from our Headline News Archives article, "PRESIDENT BUSH DECLARES WAR ON ALL 'AXIS OF EVIL' NATIONS!", NEWS1750, posted November 25, 2001.

When President Bush signed his Executive Order authorizing special forces ground troops to clandestinely attack and destroy Weapons of Mass Destruction, he has effectively declared war on each nation! Maybe Robert Fisk was right all along: "There's a firestorm coming and it is being provoked by Mr. Bush"!

This declaration came just a few weeks after Deputy Secretary of Defense Wolfensberger made a startling declaration.

NEWS BRIEF: "Stage Set For Attack", by Susanne M. Schafer, Associated Press, The Sun Chronicle, Friday, September 14, 2001

"WASHINGTON -- "In the most explicit descriptions yet of the Bush administration's intentions, Deputy Defense Secretary Paul Wolfowitz said Thursday the retaliation would be continued until the roots of terrorism are destroyed. 'These people try to hide. They won't be able to hide forever ... They think their harbors are safe, but they won't be safe forever ... it's not simply a matter of capturing people and holding them accountable, but removing the sanctuaries, removing the support systems, ending states who sponsor terrorism." [Page 2]

"Ending states" is a most somber and terrifying term, for it strongly implies that the Bush Administration has every intention of destroying entire nation states with unconventional weapons. And, we have them in abundance, despite the years of military drawdown by the Clinton Administration. We have nuclear, chemical, biological weapons, and scalar weapons [HARRP electromagnetic weapons] that can easily destroy entire states in a matter of an hour or two.

Just two days after the attacks of 9/11, Deputy Defense Secretary Paul Wolfowitz warned that the United States would strike without warning into the countries suspected of planning terrorism, sponsoring terrorism. At this time, we warned that an entire country might be annihilated because of bad intelligence, a reality which occurs all the time! For the first time, an official of the Bush Administration warned other sovereign nations throughout the world that we would reserve the right to attack their country -- or attack within their country -- if we suspected them of harboring terrorists. Even though the last sentence captured our attention -- "ending states who sponsor terrorism" -- if you take this sentence away, Wolfowitz might very well have been hinting that the U.S. would surgically strike at the Weapons of Mass Destruction within the country possessing them.

As events have proven, President Bush DID strike countries "suspected of planning terrorism, sponsoring terrorism". And, as events have since shown, President Bush lied when he led American troops into battle based upon supposed intelligence which showed that Saddam had Weapons of Mass Destruction which could be fielded in 45 minutes and delivered to targets throughout the Middle East. Even fellow Illuminists have admitted that President Bush lied to the American people. If you are not familiar with this information, please take a moment to read:

* NEWS2045 -- "IMPEACHMENT OF PRESIDENT BUSH?" -- Read retired Marine Corps General Zinni publicly accuse President Bush of lying to the American people as to why he ordered the Iraqi invasion, realizing that Zinni is just as committed an Illuminist as is Bush. We provide the understanding within this article as to what is really going on.

* NEWS1927 -- "IRAQI CHILDREN UNDER FAR WORSE CONDITIONS THAN UNDER SADDAM! DEPLETED URANIUM SICKENING THE POPULATION!!

Read the remarks of David Kay, former head of Bush's WMD investigation team in Iraq said that a person is "delusional" if they continue to believe WMD ever existed! Just as UN inspectors repeatedly said, Saddam never had any WMD. The only way in which Bush could get the "intelligence reports" he needed to say that WMD were a threat in Iraq was by deliberately creating a bogus intelligence service called "Office of Special Plans", from which the bogus reports poured forth [NEWS1890 and NEWS1890b).

The bottom line understanding is both simple and profound: President Bush carried out precisely the kind of aggressive "Regime Change" foreign policy he envisioned, and it has absolutely backfired. Not only have none of America's objectives for the Iraq War ever been realized -- except for the physical removal of Saddam Hussein -- but our troops have become bogged down in a war which cannot be won with the current tactics and with the current troop levels.

But, just as importantly, President Bush's extremely tough foreign policy has caused oil prices to spike so high for so long that he has strengthened greatly the very regimes he is trying to overthrow! Further, Russia has now been resurrected by these long-term high oil prices from a nearly defunct National Treasury to one brimming with liquid capital! We are going to examine three nations in this article today, to see how greatly each one has been strengthened by the high oil prices which President Bush's threatening policy has created.

Looking Back

Let us look backward to see how far oil prices have jumped. I am afraid too many people have quite forgotten.

"In mid-February 1999, the price of crude oil, which had averaged between $13 to $11 per barrel in 1998 (from around $19.30 per cent in 1997) … falling oil prices have had a profound effect on its economy. In fact, Tehran claims that it loses $1 billion with every $1 drop in the price of oil … (“The Glut: Oil Price Crisis: Implications for Gulf Producers”, CIAO Net, April, 1999, http://www.ciaonet.org/olj/sa/sa_99das01.html)

Today, crude oil prices are hovering around $75 per barrel, not $11 as it was in 1998! This increase is $64 per barrel, or nearly a 700% increase!! Remember this reality the next time you hear that the huge oil companies are making $6-$8 billion profits each quarter!

The Root Cause

What has driven these oil prices so high for so long and kept them at their peaks? While hurricane losses have contributed to this high energy price, the largest single factor -- without question -- is the constant badgering of Iran by President Bush and so many of his officials. Remember, the United States began threatening with attack for her supposed nuclear development plan in Summer, 2003. Thus, Iran has been continually threatened for three (3) full years. How much has this constant haranguing influenced the price of oil? The answer may surprise you.

"“The price of crude excluding the Iranian situation at current growth rates and demand levels would be around $55 to $60 … So, how much of a risk premium is likely baked into the current price of crude? Well, with crude currently around $70 per barrel, we would say that there is about a $10-$15 per barrel risk premium associated with Iran’s nuclear ambitions… Iran can say, “Deal!” If they do, Iran gets trade, aid, nuclear energy and the world off its back. Sounds like a pretty sweet offer. Of course, the price of crude is likely to fall back below $60 …” (“Economic Commentary, FX-Forecast, June 22, 2006, http://futures.fxstreet.com/futures/content/showcontent.asp?menu=macro&idproveidor=113690 )

Now, let us examine three nations -- Russia, Iran, and Venezuela.

Russia

Russia was a former superpower who had fallen on such hard times that, by 1999, some experts wondered if the country could remain solvent. Today, she is afloat with a Treasury brimming with cash. Her talk of re-emergence as a superpower on the world scene is running rampant. You will see how important these high oil prices are to Russia right now. Let us review some pertinent statistics.

"Russia depends upon energy (mainly oil and natural gas) exports for critical shares of its total export earnings (around 50% in 2003) and government revenues. Oil export revenues also are used to help pay off Russia's large (around $108 billion as of April 2005) foreign debt. Thus, oil price fluctuations are of definite concern to Russia. The sharp rebound in oil prices over the past few years has been good news overall for Russia -- and especially its oil sector -- after an extremely difficult 1998 and early 1999. During 2000-2004, for instance, Russia's top oil producers made windfall profits, resulting in billions of dollars worth of additional tax revenues to the Russian government. Many Russian oil companies also have begun to upgrade decaying oil infrastructure and to undertake new exploratory drilling. EIA is forecasting Russian oil export revenues at $109 billion for 2005, up 22% from 2004 (which marked the highest revenues in 'real' terms since 1990), on higher oil prices and slightly higher net oil exports."

"In addition to oil prices, Russian oil production has rebounded over the past few years. In 2004, Russia produced around 9.3 million bbl/d of oil, up over 50%, from 6.1 million bbl/d, in 1998. For 2005, Russian oil production is expected to average about 9.5 million bbl/d, with consumption of 2.6 million bbl/d and net exports of 6.8 million bbl/d." (“Major Non-OPEC Countries' Oil Revenues”, Energy Information Administration”, June, 2005, http://www.eia.doe.gov/cabs/opecnon.html )

Therefore, while world oil prices surged upward by 700%, Russia's oil production swelled by 50%. What is the predictable result?

"Buoyed by surging oil export revenues, Russia's real gross domestic product (GDP) grew 10% in 2000, with slower (but still strong) growth in 2001 (5.1%), in 2002 (4.7%), and in 2003 (7.3%). Russia's real GDP grew strongly again in 2004, at a 7.1% rate, with 5%-6% annual growth expected during 2005 and 2006. The oil export revenue windfall experienced by Russia since 2000 has helped the Russian government pay down some of its large foreign debt and to run significant budget and trade surpluses, with an estimated $88 billion merchandise trade surplus and a $60 billion current account surplus in 2004. In addition, Russia's foreign exchange and gold reserves totaled around $125 billion at the end of 2004." (Ibid.)

Once Russia's oil industry began raking in profits, President Putin's office began to tighten income tax laws so that the Federal Government could bring in substantial increases in total tax revenue.

"On a related note, the Russian government recently has been attempting to capture more of the country's oil revenues from oil companies, in part by raising their taxes and in part by cracking down on their use of tax "loopholes." It is estimated that Russian oil and natural gas revenues provide at least 40% of the national government's budget (and over half of export earnings), mainly through taxes on hydrocarbon production and duties on exported crude and products ... For 2005, Russia reportedly is assuming (for budgetary purposes) an average oil price of around $20-$21 per barrel for the country's benchmark Urals crude stream, well below EIA's forecast of around $45 per barrel for Russian crude. Plans are for extra revenues above the assumed budget price to be transferred to the country's Stabilization Fund, which was expected to reach $19 billion by the end of 2004 (and $30 billion by the end of 2005). In general, President Putin has stated that windfall oil revenues should be spent on paying off foreign debt (see above), as opposed to financing new pipeline projects." (Ibid.)

This next segment illustrates just how rich Russia is rapidly becoming.

In 1998, Russia was very short on cash. It went to the IMF and got a $15 billion credit line. When it didn’t hold up its end of the bargain – taking steps to collect a bit of revenue – then Treasury Secretary Rubin pulled the plug on the program after only $5 billion had been disbursed. He argued that there was no point in throwing more good money after bad.
“$5b. Chump change. That is less than ½ of what Russia added to its reserves in the first three weeks of April. Russia’s reserves were $217.1b on April 21, up from $205.9b at the end of March. For the full month, Russia’s reserves will probably grow by $15 billion.

“By the end of the year, Russia will likely have as many reserves – around $300b – as the IMF has on deposit. Talk about a reversal of fortune.” (“And the money keeps rolling in …”, by Brad Setser, May 2, 2006, http://www.rgemonitor.com/blog/setser/oil/ )

Indeed, talk about a "reversal of fortune"!

This next new story illustrates how much cash Russia currently possessed -- thanks to Bush's high oil prices.

"“Russia is gearing up to host the leaders of the worlds most developed countries at a G8 Summit in St. Petersburg. The leaders will get to see the fruit of the Russian energy boom: with oil prices soaring, the country is swimming in cash … As oil prices continue to grow, so do Russia's gold and foreign currency reserves, which are now the 4th largest in the world -- a remarkable recovery after the 1998 ruble crisis … “ (“Energy Revenues and Corruption Increase in Russia”, VOA News, 13 July 2006; http://www.voanews.com/english/2006-07-13-voa25.cfm )

Once Russia pays off her foreign debt, she shall no longer remain beholden to the Illuminati financial masters, and can stake her own policy, should that be her desire. We believe one of the biggest reasons that Russia is so aggressively defending Iran, Venezuela and Syria against President Bush, is because she is becoming financially free and her government expenditures is producing a military worth to be called "superpower".

Russia could not have become a global power so rapidly, had it not been for President Bush's unending attacks on Iran.

Iran

Iran is heavily dependent upon oil revenues. This next news story ran in November, 2001, while the next one ran in June, 2006.

"For Iran, along with many OPEC producers, this is a risky strategy: 80% of government revenue is derived from its abundant oil fields.” (Iran's new-look economy ready for Russian oil price war”, By Simeon Kerr, 20th November 2001 - Dow Jones International News)

Notice the percentage has not changed in 5 years.

"I think something like 80 percent of Iran's budget comes from oil revenue. And so obviously it would be a very serious problem for Iran if oil were disrupted on the market’, she said.” (Iran To Get Detailed Proposal on Nuclear Talks in Days, Rice Says”, USINFO.GOV, http://usinfo.state.gov/is/Archive/2006/Jun/05-828881.html )

Secretary of State Rice is quoted here as saying that she believes Iran will not use oil as a weapon against the West because 80% of its revenues come from the international sale of crude oil. Secretary Rice does not address two important issues in this regard.

1) Iran's oil revenues the past three years have been so swollen that she might very well have set aside enough monies to withstand any cut-off of international oil revenues;

2) Iran's use of the oil weapon may be selective, i.e., she might refuse to sell to nations like the United States, while selling to nations not threatening her.

"LONDON, July 11 (IranMania) - Crude oil fell for a third day in New York on speculation a negotiated settlement may be possible over nuclear research by Iran, the world's fourth-largest oil producer … Oil fell from the record $75.78 a barrel it reached on July 7 … after Iran's chief nuclear negotiator, Ali Larijani, said he had held constructive talks with European officials on a package of incentives to stop the Islamic republic's uranium enrichment .... The decline in geopolitical risk is behind the lower price of oil on Friday and today', said Dariusz Kowalczyk, a commodity strategist with CFC Seymour Ltd. in Hong Kong. \'The threat to supply stability is not high enough to justify oil above $75'.'' (IranMania, “Oil falls a 3rd day amid optimism on Iran N-row’)

Notice that this article tells us that Iran is the #4 largest oil producer on the global stage. When you deliberately pick fights with several countries in the Top 10 oil producers, you are going to drive prices sky-high! That seems to be the Plan, as the Illuminati Card Game does contain an "Energy Card".

This next article tells us that Iran is pumping so much oil, and she is upgrading so much of her equipment, she is investing a lot of money in oil drilling rigs.

"LONDON, July 9 IranMania) - Given the rise in the oil prices and the growth in the world’s oil drilling activities, Iran’s oil industry is facing a shortage of drilling rigs … As a result of the record highs in the oil prices, the prices of the offshore oil drilling rigs have increased by up to 300 percent…” (“Iran’s oil industry facing shortage of drilling rigs”, Sunday, July 09, 2006}

This next article reiterates the dramatic effect President Bush's threats to nations such as Iran, North Korea are having on the price of oil. While Venezuela is not mentioned, threats to overthrow her government have certainly contributed significantly to the huge jump in the price of crude oil.

"At the start of 2005, crude oil stood at around $40 per barrel, and was just $20 per barrel at the beginning of 2002 … With no shortage of geopolitical hot-spots across the world, ranging from North Korea and Iran to ongoing instability in oil producers Nigeria and Iraq, analysts contend that prices could head higher.” (“Oil prices set for new records beyond $80”, Iran Mania, 7/72006, http://www.iranmania.com/News/ArticleView/Default.asp?ArchiveNews=Yes&NewsCode=44189&NewsKind=CurrentAffairs)

This next segment illustrates that Iran's Treasury is, indeed, brimming over with receipts.

"Iran is actually spending its surging oil revenue rather than salting most of it away, unlike most other oil states …" (“Hmmm. Iran isn’t like other oil producing countries … by Brad Setser, June 23, 2006, http://www.rgemonitor.com/blog/setser/oil/ )

While Iran is spending much of her "surging" oil revenues, other articles over the past few months have indicated that she is not spending all of it, but is setting aside a goodly amount of it in a "Stabilization Fund". This is the fund upon which she will draw if she decides to withhold crude oil from the global markets. Remember, also, as we get ready to study Venezuela, that Iran can probably count upon other major oil producing countries -- like Venezuela -- to also withhold crude oil. If this occurs, the magnitude of Iran's action shall have increased exponentially!

Venezuela

President Chavez of Venezuela has shrewdly managed his country's finances since taking power. This fact makes him a much more dangerous enemy.

"Chavez has seen world oil prices go from $10 a barrel when he was first elected in 1998 to more than $70 today. He has used these windfall billions to finance dozens of social projects on behalf of the poor at home, and provide assistance to regional neighbors from Cuba to Argentina … the rising economic tide has … lifted the poor's boats… ‘You can see the sense of prosperity flowing through all levels of society' … “ (“Oil spawns new wave of newly rich in Venezuela”, San Luis Obispo, July 21, 2006, http://www.sanluisobispo.com/mld/sanluisobispo/news/world/15090843.htm )

President Bush has really threatened Chavez' government! He has actively attempted to overthrow him, on a number of occasions.

"Chinese Xinhua news agency reports that Venezuelan Vice President Jose Vicente Rangel has accused the United States of supporting the opposition to launch a new destabilization campaign in the country. The main target of the US-financed campaign is Venezuela's state-run petroleum company PDVSA, Rangel said, adding that a second target is the country's poor, to whom the United States is providing assistance … The opposition is preparing a "second assault on PDVSA," said Rangel. He accused the United States of supporting the April 2002coup d'etat against President Hugo Chavez and the national strike that paralyzed the country's oil industry at the end of 2002.” (“Venezuela accuses US of new destabilization campaign”, Venezuelan Oil & Gas)

How big is Venezuela on the global stage?

"The International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) say Venezuela's oil output has dropped in the last two months to 2.51 million barrels a day. The Venezuelan government, however, insists that it is still on 3.3 million barrels a day. “ (“Venezuela pledges to maintain oil supply to US despite closures”, News Monster, July 14, 2006, http://news.monstersandcritics.com/business/article_1181042.php/Venezuela_pledges_to_maintain_oil_supply_to_US_despite_closures )

Venezuela is officially listed by OPEC as the #5 exporter of oil in the world today, while Iran is listed as #4. ("Nigeria and Her Membership of OPEC", Africa Economic Analysis, 12/21/2005, http://www.africaeconomicanalysis.org/articles/gen/opec.html )

Thus, President Bush has been threatening the #3 and #4 oil exporting nations in the world today, whose combined export equals 523 millions of barrels per day. And, these countries are supported heavily by the resurgent superpower, Russia, whose net exports on the world market equals 4.76 million barrels per day, making her the #2 largest oil exporter in the world. Thus, President Bush has been angering the #2, #3, and #4 oil exporting nations in the world by his aggressive, "Regime Change" foreign policy.

Is it any wonder that oil prices have shot up from $11 per barrel in 1998 to over $75 per barrel today? Knowingly, or unknowingly, President Bush has dramatically strengthenedthe very nations he had intended to bring down, and he has enabled Russia to resume her place as a superpower on the earth, in just a matter of years.

Truly, when Bush strengthenedRussia and Iran (Persia) so dramatically, he has ensured that they will have the economic resources to finance a major move against Israel at the End of the Age (Ezekiel 38-39 -- read NEWS2116, "RUSSIA IS BOLDLY MOVING INTO THE MIDDLE EAST -- PREPARING TO LEAD THE PROPHESIED NATIONS AGAINST ISRAEL IN FULFILLMENT OF EZEKIEL 38 -39 PROPHECIES!!"

The End of the Age is upon us. Are you spiritually ready? Is your family? Are you adequately protecting your loved ones? This is the reason for this ministry, to enable you to first understand the peril facing you, and then help you develop strategies to warn and protect your loved ones. Once you have been thoroughly trained, you can also use your knowledge as a means to open the door of discussion with an unsaved person. I have been able to use it many times, and have seen people come to Jesus Christ as a result. These perilous times are also a time when we can reach many souls for Jesus Christ, making an eternal difference.

Become a Headline news subscriber HERE.