The Global Energy Crisis Is About To Start
In a Nutshell
The video argues that a global energy crisis is underway, triggered by Middle East conflicts disrupting oil routes, pushing diesel to record highs and driving up food, shipping, and borrowing costs. It presents four overlapping explanations for the crisis—geopolitical warfare against the U.S. bond market, profit-seeking by defense, finance, and tech sectors, deliberate U.S. sabotage of foreign energy to boost its own exports, and end-times religious beliefs among key leaders—and concludes that the most likely outcome is a hyperinflationary crash, best prepared for by holding real assets and emergency supplies.
These notes were generated by AI and may contain inaccuracies.
The world's energy routes are being rearranged. The Wall Street Journal published a headline stating that oil executives believe the major fuel crisis has begun. This crisis will affect fuel prices at the pumps and the cost of heating homes. Gasoline prices have reached $4, diesel prices have reached $6, and mortgage interest rates have hit 7%. Truck drivers are messaging about planning a strike. The average national diesel price has reached $6.40, the highest level ever recorded.
Four theories explain why diesel has become extremely expensive, causing everything reliant on diesel to become more expensive. The theories will be reviewed with evidence for each, reasons why people believe in each, and which one is most truthful along with preparation strategies.
On February 28, the United States and Israel attacked Iran. In response, Iran closed the Strait of Hormuz, through which one-fifth of the world's oil flowed. Oil prices rose by the most since the Gulf War, increasing by 59% in March. Multiple truces and alleged deals followed that never materialized.
In September, an Iranian-backed militia in Yemen called the Houthis seized control of the Bab al-Mandab strait. On September 11, Saudi Arabia shut down its only backup pipeline after it was attacked by drones. The Saudi Crown Prince contacted the White House twice on the same day seeking assistance. Trump replied that he would not help. Saudi Arabia then contacted refineries in Europe to inform them that oil promised for September would not be delivered, causing oil prices to rise.
On September 16, the Federal Reserve raised interest rates for the first time since 2023. Amid war and an election, the yield on 10-year Treasury bonds exceeded 5%. This proved disastrous for the bond market and is the reason mortgage rates in America reached 7%. JPMorgan Chase issued a memo stating they have no idea what will happen to the world and no longer have a basis for pricing oil.
The first theory states that the world is emerging from the mantle of the American empire, and Iran has realized that the best weapon is to attack the American bond market. This represents the Suez Canal moment for the United States. The United States has approximately $40 trillion in debt, with a large portion due each year that must be borrowed again at current interest rates.
When the yield on 10-year bonds rises from 4% to 5%, the government's interest bill increases by hundreds of billions of dollars. Interest on the debt is now greater than the entire defense budget. According to one historian, any country that spends more on benefits than on its military is a country in decline.
Iran is attacking something the United States cannot defend: the U.S. bond market. Expensive oil means expensive diesel, which means expensive food and shipping, leading to inflation. When inflation rises, the Federal Reserve raises interest rates, which occurred on September 16.
The Speaker of the Iranian Parliament stated they would continue to attack oil infrastructure before every Federal Reserve meeting, forcing the Fed to choose between raising interest rates and damaging the US economy or stopping rate increases during an oil boom and losing credibility. The next Federal Reserve meeting is scheduled for October 27.
Raising interest rates does not solve the current problem because the Fed's tools are designed to combat lending-based inflation, not inflation caused by oil shortages and a $2 trillion deficit. When debt is 120% of GDP, higher interest rates increase the deficit further. People with money in safe investments like Treasury bonds and money market funds benefit from higher rates, while ordinary people pay more for groceries, fuel, and borrowing. This creates a K-shaped economy.
The second theory states that the situation is about applying pressure points to concentrate more capital and control. The three main players are the defense industry, Wall Street, and Big Tech.
The defense industry benefits from the US approving a $24 billion sale of 48 F-35 fighter jets to Saudi Arabia in the same week the US declined to provide direct assistance. The US may be unable to help because it is running out of missiles, as China manufactures critical components and refuses to supply materials if the US continues destabilizing the world.
Wall Street profits by financing the war. Banks including JPMorgan, Goldman Sachs, Citigroup, and Bank of America buy government bonds and resell them. When bonds are in demand, banks pay $99 and sell for $100, keeping $1 profit. Currently, foreign central banks have dumped $236 billion in US bonds since the war started, so banks pay $95 and sell for $100, keeping $5 profit. Applied to $2 trillion annually, this represents significant profit.
Banks profit in four ways: buying bonds at discount and reselling at higher prices; creating new buyers through the Genius Act requiring stablecoins and digital dollars to be backed by US Treasury bonds; raising interest rates since banks lend at 5% while paying nothing on checking and savings accounts, with the Federal Reserve owned by those banks; and acquiring more assets during economic crises when the big eats the small.
Big Tech profits by requesting government regulations that require licenses, compliance departments, and minimal capital, preventing newcomers from competing. AI CEOs are requesting regulations at the height of their success. Jensen Huang of Nvidia made similar statements. The companies are actually asking to be exempt from existing regulations so that if their products cause harm, they can ignore existing laws and be protected from lawsuits.
The third theory states that the destruction of global energy infrastructure is deliberate, with the United States as the likely perpetrator. The United States is the world's largest producer of oil and gas. By burning other countries' supplies, the world is forced to turn to the US. If the world cannot be made to want the US currency, it can be made to need US energy priced in dollars.
Saudi Arabia never asked the United States for help as reported. The US is in an economic war with China, whose factories run on Gulf oil. Closing both straits puts pressure on China while forcing Asia and Europe to buy from the US instead of Saudi Arabia.
The US is leaving the Middle East permanently and is pressuring Saudi Arabia to sign the Abraham Accords with Israel. Saudi Arabia refuses until there is a Palestinian state. The US is using proxies to apply indirect pressure as a negotiating tactic. US bases are being withdrawn to Poland, Greenland, Venezuela, and the Arctic, securing energy resources and shipping lanes closer to home under the Monroe Doctrine.
In 2022, three weeks before Russia invaded Ukraine, Joe Biden stated that if Russia invades, there will be no Nord Stream 2 pipeline. Seven months later, the pipeline was destroyed. The following year, a State Department official told the Senate the administration was pleased Nord Stream 2 had become a lump of metal on the seabed. The US replaced Russia as Europe's main gas supplier with long-term contracts priced in dollars.
The evidence includes: China buying more Gulf oil than any other country and being hurt by both strait closures; Qatar losing production lines and now in talks to buy gas from a Texas terminal in which Qatar owns 70%; Venezuela signing an agreement to develop oil with US assistance; and Japan, Korea, and Europe being pushed toward the Western Hemisphere.
The fourth theory states that decision-makers are basing choices on prophecy with the goal of bringing about the end of the world. This involves people in positions of power in three different governments.
Within American Christianity, Christian Zionism holds that the modern state of Israel must exist, expand, and be attacked by enemies as events leading to Christ's return. About a quarter of Americans are evangelicals, and a significant portion hold this interpretation. This movement is organized, votes, and contacts Congress. Thomas Massie lost in primaries after three billionaires spent $30 million to influence the election.
Vice President Vance was asked about the end times and stated: "I want to know your opinion on the end times. We don't know when the Lord will come. But we are commanded to try as much as possible to make the world the kind of world God wants it to be. While I wouldn't be shocked if we were living in the end times, what I'm trying to focus on is doing as much of God's work as possible right now, and if that leads to the end times, that's okay."
Israeli Prime Minister Benjamin Netanyahu was asked what he was reading and stated "The Jews versus Rome. The Jews versus Rome." When asked why he chose it, he replied: "Well, we lost that battle. We have to win the next one."
He says, "Yes, we lost that battle." "We cannot lose this battle." That's biblical. True, when the Gaza war began, he told the country, "Remember what Amalek did to you." That's a verse from the Bible. Amalek is the enemy that God commands Israel to destroy. And now, his office later said, "He meant Hamas." Fine, whatever. But, in his own words, "This is not a war with Iran." "It's a two-thousand-year-old war."
And look how he describes the United States. This is a different time. Rome and Jerusalem clashed over values. It was a great tragedy for the Jewish people. But the new Rome, the United States, sees itself as the new Jerusalem. So, from his perspective, he sees the United States as the modern-day Rome, which is also the new Jerusalem. Isn't that right? That's his basic way of combining or linking Christian Zionism with the politics of Israel. Those are his own words. Okay.
Now, Iran. The Iranian regime also sees this from a prophetic perspective. They are preparing for the return of the Mahdi, the figure in the Islamic tradition who appears before the end times to cleanse the world of evil. You can imagine how certain these people are now, after the United States got rid of the Ayatollah, who was a holy figure to them. So, within this war, there are three governments, and within each of them, a small group of people. In some cases, these people are in the highest positions. They are very powerful people. And they see all of this as the fulfillment of religious texts. Now, they probably get all this information from different religions and different books, right? But they all share the same story: the story of the end times. Even if you don't believe a word of this prophecy and think it's crazy, that's fine, but this theory is a useful framework for explaining how long this conflict could last and how bad it could get. So, this is the fourth theory. I don't particularly like this one, but I find it very useful for understanding parts of this story.
So, putting it all together, all these theories contain some truth, don't they? Because each one is really the same story told from a different perspective. Like Iran acting in its own self-interest. Banks acting in their own self-interest. Defense contractors, AI companies, religious believers—they're all following their impulses. Some want power, some want control over the flow of capital, and some want their prophecy to come true. The question that ultimately plagues me is: How am I going to prepare for any of this? If the fourth theory comes true in its entirety, I don't think anyone can. Unless you have a bunker somewhere, can grow your own food and provide your own water, in which case you're probably a thought billionaire.
All of this is already happening. It may be a coincidence, but at least seeing billionaires preparing for this by building bunkers is a useful indication that they believe it's a possibility.
Now, assuming the Fourth Theory doesn't fully materialize—and I hope it doesn't—the way to prepare is to have emergency assets, because there are only two possible paths forward. Up or down, plain and simple. But specifically, either it's a hyperinflationary crash where the government can't sell its debt, so the Federal Reserve prints more money to buy it, and the prices of everything skyrocket, right? Assets are the ones that rise the most. In that world, you want to own things that can't be printed: stocks because companies are raising prices, gold, Bitcoin, collectibles, and real assets.
The second outcome, of course, is a crash. It's a deflationary crash where interest rates stay high, the joints of the economy are damaged, people lose their jobs, and prices collapse because nobody can buy anything. In that world, cash is king, and gold and silver hold their value better than other financial assets and stocks. True, gold and silver could also fall, but historically, they tend to fall. To a lesser extent, by comparison. If there is a downturn, the worst thing you can own is debt. True, because that's when people lose their income and possessions.
I have no idea what scenario we're facing. Maybe none of that happens, and the world continues as before, which is certainly what I hope. But if I had to choose one outcome, I'd be optimistic and lean towards a hyperinflationary crash where prices soar. The main reason I believe this path is that if we were heading towards a massive conflict like World War III, the market would have already priced it in. The insiders would know by now. And they would have allocated their money accordingly. This would mean we would see insanely high gold prices, the likes of which we've never seen before, and a collapse of confidence in the entire system. All of that would be reflected in the price of some asset in some market, somewhere. I don't think that has happened yet. But it seems we are somewhat headed in that direction. That's why I want to own assets that will help me in both scenarios. I also keep a few months' worth of food and essentials at home, just in case, because if the diesel shortage worsens, things could get much worse than just higher fuel prices. So, I've done what I can. If this interests you, I go into more detail in the Premium Members section, where I list everything I've prepared and provide a full analysis of how I made my investment decision. If that's valuable to you, you can find all that and more in the Members section, where I post my videos early and share more of my actual thoughts. The links are below. Thanks so much for watching this video and for being a Premium Member if you are, and I'll see you here next time. Take care. Goodbye.
Keep Andrei Jikh in your library
Save the videos and channels worth coming back to, and find them again in one place.
