Following
on from Kevin Hester's article, The
Demise of the U.S. Dollar and the Law of Unintended Consequences
collide I have
put together some important articles on the end of the dominance of
the US dollar
This
really dates back to the Fed's Quantitative Easing response to the
2008 crash, the failing power of the empire and America's being shown
to be a “Paper Tiger' in this latest fiasco with meddling with the
Ukraine.
The
greatest danger to all us stems from the fact that the declining
superpower still has a huge military and nuclear weapons.
It's
On: Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan
10
April 2014
Curious
what the fate of the petrodollar is? Look no farther than this
Interfax update blasted moments ago by Bloomberg: "Gazprom
Considers 'Symbolic' Yuan Bond Issue, Interfax Says."
Bloomberg
adds that the gas giant is considering proposals from potential
organizers to market bonds in yuan, Interfax reports, citing people
with knowledge of the matter.
- Gazprom unlikely be able to gain more than $300m due to mkt volume, newswire reports
- No mandates, deal timeline yet
- Issue may add new investors, become a “topical” public relations act amid tensions with U.S., EU
Well,
yes. It's called "symbolic" for a reason. More importantly,
it is a symbol of what happens when one can "create" money
de novo without the presence of the world's increasingly defunct
reserve currency, either secured by gas or by future cash flows,
i.e., unsecured.
Confused?
Read:
...
and the New New Normal
flow of funds will suddenly become clear -
- Gazprom delivering gas to China.
- China Gazprom paying in Yuan (convertible into Rubles)
- Gazprom funding itself increasingly in Yuan.
- Russia buying Chinese goods and services in Yuan (convertible into Rubles)
And
all of this with the US banker cartel completely disintermediated
courtesy of the glaring absence of the USD in any of the above listed
steps, or as some may call it: from
the Petrodollar to the Gas-o-yuan (something 40
central banks have already figured out...
just not the Fed).
Russia Will Decouple Trade From Dollar
China Will Reopen the Old Silk Road as a New Trading Route Linking Germany, Russia & China
9
April, 2014
Russia
has just dropped another bombshell, announcing not only the
de-coupling of its trade from the dollar, but also that its
hydrocarbon trade will in the future be carried out in rubles and
local currencies of its trading partners – no longer in dollars –
see Voice of Russia
Russia’s
trade in hydrocarbons amounts to about a trillion dollars per year.
Other countries, especially the BRICS and BRCIS-associates (BRICSA)
may soon follow suit and join forces with Russia, abandoning the
‘petro-dollar’ as trading unit for oil and gas.
This
could amount to tens of trillions in loss for demand of petro-dollars
per year (US GDP about 17 trillion dollars – December 2013) –
leaving an important dent in the US economy would be an
understatement.
Added
to this is the declaration today by Russia’s Press TV – China
will re-open the old Silk Road as a new trading route linking
Germany, Russia and China, allowing to connect and develop new
markets along the road, especially in Central Asia, where this new
project will bring economic and political stability, and in Western
China provinces,where “New Areas” of development will be created.
The
first one will be the Lanzhou New Area in China’s Northwestern
Gansu Province, one of China’s poorest regions.
“During
his visit to Duisburg, Chinese President Xi Jinping made a master
stroke of economic diplomacy that runs directly counter to the
Washington neo-conservative faction’s effort to bring a new
confrontation between NATO and Russia.” (press TV, April 6, 2014)
“Using
the role of Duisburg as the world’s largest inland harbor, an
historic transportation hub of Europe and of Germany’s Ruhr steel
industry center, he proposed that Germany and China cooperate on
building a new “economic Silk Road” linking China and Europe.
The
implications for economic growth across Eurasia are staggering.”
Curiously,
western media have so far been oblivious to both events. It seems
like a desire to extending the falsehood of our western illusion and
arrogance – as long as the silence will bear.
Germany,
the economic driver of Europe – the world’s fourth largest
economy (US$ 3.6 trillion GDP) – on the western end of the new
trading axis, will be like a giant magnet, attracting other European
trading partners of Germany’s to the New Silk Road.
What
looks like a future gain for Russia and China, also bringing about
security and stability, would be a lethal loss for Washington.
In
addition, the BRICS are preparing to launch a new currency –
composed by a basket of their local currencies – to be used for
international trading, as well as for a new reserve currency,
replacing the rather worthless debt ridden dollar – a welcome feat
for the world.
Along
with the new BRICS(A) currency will come a new international payment
settlement system, replacing the SWIFT and IBAN exchanges, thereby
breaking the hegemony of the infamous privately owned currency and
gold manipulator, the Bank for International Settlement (BIS) in
Basle, Switzerland – also called the central bank of all central
banks.
To
be sure – the BIS is a privately owned for profit institution, was
created in the early 1930’s, in the midst of the big economic
melt-down of the 20th Century.
The
BIS was formed precisely for that purpose – to control the world’s
monetary system, along with the also privately owned FED and the Wall
Street Banksters – the epitome of private unregulated ownership.
The
BIS is known to hold at least half a dozen secret meetings per year,
attended by the world’s elite, deciding the fate of countries and
entire populations.
Their
demise would be another welcome new development.
As
the new trading road and monetary system will take hold, other
countries and nations, so far in the claws of US dependence, will
flock to the ‘new system’, gradually isolating Washington’s
military industrial economy (sic) and its NATO killing machine.
This
Economic Sea Change may bring the empire to its knees, without
spilling a drop of blood. An area of new hope for justice and more
equality, a rebirth of sovereign states, may dawn and turn the spiral
of darkness into a spiral of light.
Peter
Koenig is an economist and former World Bank staff. He worked
extensively around the world in the fields of environment and water
resources.
Russia
prepares to attack the petrodollar
The
US dollar's position as the base currency for global energy trading
gives the US a number of unfair advantages. It seems that Moscow is
ready to take those advantages away.
4
April 2014
The
existence of "petrodollars" is one of the pillars of
America's economic might because it creates a significant external
demand for American currency, allowing the US to accumulate enormous
debts without defaulting. If a Japanese buyer wants to buy a barrel
of Saudi oil, he has to pay in dollars even if no American oil
company ever touches the said barrel. Dollar has held a dominant
position in global trading for such a long time that even Gazprom's
natural gas contracts for Europe are priced and paid for in US
dollars. Until recently, a significant part of EU-China trade had
been priced in dollars.
Lately,
China has led the BRICS efforts to dislodge the dollar from its
position as the main global currency, but the "sanctions war"
between Washington and Moscow gave an impetus to the long-awaited
scheme to launch the petroruble and switch all Russian energy exports
away from the US currency .
The
main supporters of this plan are Sergey Glaziev, the economic aide of
the Russian President and Igor Sechin, the CEO of Rosneft, the
biggest Russian oil company and a close ally of Vladimir Putin. Both
have been very vocal in their quest to replace the dollar with the
Russian ruble. Now, several top Russian officials are pushing the
plan forward.
First,
it was the Minister of Economy, Alexei Ulyukaev who told Russia 24
news channel that the Russian energy companies must ditch the dollar.
"They must be braver in signing contracts in rubles and the
currencies of partner-countries," he said.
Then,
on March 2, Andrei Kostin, the CEO of state-owned VTB bank, told the
press that Gazprom, Rosneft and Rosoboronexport, state company
specialized in weapon exports, can start trading in rubles. "
I've spoken to Gazprom, to Rosneft and Rosoboronexport management and
they don't mind switching their exports to rubles. They only need a
mechanism to do that ", Kostin told the attendees of the annual
Russian Bank Association meeting.
Judging
by the statement made at the same meeting by Valentina Matviyenko,
the speaker of Russia's upper house of parliament, it is safe to
assume that no resources will be spared to create such a mechanism. "
Some ‘hot headed' decision-makers have already forgotten that the
global economic crisis of 2008 - which is still taking its toll on
the world - started with a collapse of certain credit institutions in
the US, Great Britain and other countries. This is why we believe
that any hostile financial actions are a double-edged sword and even
the slightest error will send the boomerang back to the aborigines,"
she said.
It
seems that Moscow has decided who will be in charge of the
"boomerang". Igor Sechin, the CEO of Rosneft, has been
nominated to chair the board of directors of Saint-Petersburg
Commodity Exchange, a specialized commodity exchange. In October
2013, speaking at the World Energy Congress in Korea, Sechin called
for a "global mechanism to trade natural gas" and went on
suggesting that " it was advisable to create an international
exchange for the participating countries, where transactions could be
registered with the use of regional currencies ". Now, one of
the most influential leaders of the global energy trading community
has the perfect instrument to make this plan a reality. A Russian
commodity exchange where reference prices for Russian oil and natural
gas will be set in rubles instead of dollars will be a strong blow to
the petrodollar.
Rosneft
has recently signed a series of big contracts for oil exports to
China and is close to signing a "jumbo deal" with Indian
companies. In both deals, there are no US dollars involved. Reuters
reports, that Russia is close to entering a goods-for-oil swap
transaction with Iran that will give Rosneft around 500,000 barrels
of Iranian oil per day to sell in the global market. The White House
and the russophobes in the Senate are livid and are trying to block
the transaction because it opens up some very serious and nasty
scenarios for the petrodollar. If Sechin decides to sell this Iranian
oil for rubles, through a Russian exchange, such move will boost the
chances of the "petroruble" and will hurt the petrodollar.
It
can be said that the US sanctions have opened a Pandora's box of
troubles for the American currency. The Russian retaliation will
surely be unpleasant for Washington, but what happens if other oil
producers and consumers decide to follow the example set by Russia?
During the last month, China opened two centers to process
yuan-denominated trade flows, one in London and one in Frankfurt. Are
the Chinese preparing a similar move against the greenback? We'll
soon find out.
Emerging
Dynamics of Petro-Yuan Standard
4
April 2014
The
shocks will be many as the USDollar struggles and falls off the
global financial stage in full view.
The
desperate maneuvers like in Syria and Ukraine should be seen as last
ditch efforts to save a dying system. For two decades the USDollar
has been defended by military means.
Worse,
for 50 years the USGovt has been a hidden nazi enclave of wicked
fascists who have hidden behind their overt disdain for communism,
with Kissinger the flag bearer, with Brzezinski the ideologue, with
Papa Bush the executor, with narcotics and genetics and gold thefts
their principal agenda.
The
official US support of fascist regimes includes a list of nations as
long as your arm. Since 2008 when the Lehman kill was executed in
order to rescue Goldman Sachs, when Fannie Mae was hidden under the
USGovt roof to prevent its $trillion fraud from being exposed, and
when AIG was tucked in the USFed basement closet for ample monetized
rescues to patch the derivative black holes, the Anglo-American
banking system has indeed been going through trials and tribulations,
leading to its death throes.
The
climax of the banking system death process is upon us finally, the
fibrillations of sudden illiquidity against the backdrop of
relentless unforgiving insolvency so evident to those with eyes that
function. Never before has the US Govt been so plain in its fascist
ways, with abuses on domestic soil and installed nazi regimes on
foreign soil.
They
kill economies systematically. They wage war relentlessly, using it
as a business initiative. They control bank movements obsessively.
They monitor human movement compulsively. In Kiev were seen the
swastikas on armbands. The name Neo-Con is derived as a more
palatable version of Neo-Nazi. The game is over for their captured
gutted violated USDollar kingdom in a veritable killing field of
nations.
The
entire world must create a more workable system, an equitable system.
The banking structures and trading systems require it. No longer can
the Anglo-American free credit card be tolerated. No longer can the
exporting nations accept vendor financed trade, the credit extended
by the producers. No longer can the world be subjected to USMilitary
aggression, financed by the victim nations. No longer can a deeply
corrupted and immoral pack of leaders be permitted to roam in
privileged channels. No longer can absent criminal prosecution be
forced upon the masses. No longer can the battle among vile secular
bankers and satanic bankers and bankers from the Sanhedrin tree be
permitted in the open. No longer can the battle go on for tight
global control with liberties tossed in the dustbin. The path to
totalitarianism financed by narcotics in a magnificent undertow must
be interrupted, the Orwellian world within view.
The
Paradigm Shift is far along, no more an infant project. The Western
leading nations have transformed into the Axis of Fascism. The
Eastern leading nations have emerged as seeking viable fair
solutions, essentially a return to the Gold Standard. The physical
gold migration from London and Switzerland proves the shift in power
underway. The swing nations of Germany, Saudi Arabia, Turkey, India,
and Iran will play pivotal roles in shaping the future. The year 2014
will not end with any remote resemblance to its start.
UKRAINE
PREFACE
Ukraine
was clearly the Waterloo event for the USDollar, which requires the
passage of time for critical changes in psychology and perception.
Putin is in no hurry. Besides, when Russia does respond, it will be
on the financial and economic front, where the US & British
puppeteers are legless and without moral spine. The US-led Western
NATO forces, joined by secretive mercenary forces and Blackstone
thugs, invaded Ukraine and thereby fell into a significant trap set
by Putin. The Germans had been making important moves toward a deeper
alliance with Russia. The first interruption was Cyprus, where
Russian banks conduct intermediary operations and where GazpromBank
has offices, and where the Russians were purchasing gold in large
quantities. The second interruption was Syria, where the Russians
were working steadfastly to establish the Iran Shiite gas pipelines
for Gazprom system integration, which would (will) supply the Western
European market. The third interruption is Ukraine, the last ditch
attempt to cut Russia off from Eastern Europe, using Western energy
firms as the leverage device. Under the cloud of confusion, the
Western fascists stole the Ukrainian central bank gold and diverted
$70 billion of public funds into Swiss banks. The world is on the
path to demanding a solution, as the fascists are being recognized
and called out. The world demands a viable solution. It is coming. It
will shake the world.
NARCO
BANKS IN NEW YORK & LONDON
Since
the Black Monday 1987 event, the big US money center banks became
dependent upon narco money laundering functions. Since the 2003 wars
with Iraq and Afghanistan, the big US banks would fail without the
steady narco fund injections. Managing reserve efficacy requirements
in overnight accounting has become a daily challenge. In the
following decade, these big banks, together with the big London
banks, joined in service by the big French and German banks, have
lashed themselves together with derivative rope, while working in
deep collusion to rig the LIBOR, the FOREX, and the GOLD markets. The
bold crimes and illicit activity and blatant malfeasance are in the
open nowadays, have been in the open for over two years, yet without
any semblance of prosecution, remedy, or restitution. The regulators
continue in their musical chair exercises, which include sitting on
their hands while saluting their bank masters. The big US banks have
become control centers for criminal interventions in some bizarre
service to preserve a corrupted system, while crafting legislation in
the USCongress that serves their purposes. Their big bank structures
are as filled with toxic matter as they are crime syndicate vault
stores. The world demands a viable solution. It is coming. It will
shake the world.
EVERY
MAJOR FINANCIAL MARKET CORRUPT
It
has become comical that supposed experts actually believe certain
markets to be viable, or offer value, or present opportunity. The
following financial markets are deeply corrupted and heavily
controlled. USTreasury Bonds are maintained by direct unsterilized
USFed monetization and bond purchases, reinforced by Interest Rate
Swap derivative contracts. The USTBond market controls are
furthermore blessed as the new normal, a stabilizing force, in almost
full consensus. The US Stock market is maintained by the Working
Group for Financial Markets, when the Wall Street banks are subject
to fatigue. The USDollar is maintained by the USDept Treasury's
favorite tool, the Exchange Stabilization Fund, which employs FOREX
derivatives with its army of Western banker tools. The Crude Oil
market is maintained by the Wall Street trading desks, but to a
lesser extent of control in recent months, as the Saudi Petro-Dollar
is fast fading into the annals of history. The Gold market is
maintained by Wall Street naked shorts, in concert with London bank
naked shorts, aided by SPDR Gold Trust inventory raids, aided by
denied COMEX deliveries, all under the sleepy eyes of the Commodity
Futures Trading Commission. The US Big Bank stocks are maintained by
phony accounting blessed by the Financial Accounting Standard Board,
which overlooks the falsified portfolios for their asset values and
hollowed out reserves. One could go on further. The world demands a
viable solution. It is coming. It will shake the world.
CONTAMINATED
GLOBAL BANKING SYSTEM
The
global banking system cannot continue to function with USTreasury
Bonds as reserve capital. It is not pristine, not of high value, not
of any value really. The USTBonds are toxic paper that serves as
phantom foundation for the Western banking system. The fiat
currencies are backed by debt which is falling apart into crumbs on
the floor. The USTBonds cannot be called AAA-rated much longer, since
they are from a nearly infinite USGovt debt balance sheet, when
considering unfunded liabilities. The global banking system suffers
from acute blood contamination. The bank welfare, the social network,
the broad-based pensions, the war costs, these have bankrupted the
USGovt balance sheet at a time when the USEconomy fails to recover,
except when the Weimar rose colored glasses are worn for perception
visual aids. The world demands a viable solution. It is coming. It
will shake the world.
BACKLASH
TO TOXIC USFED MONETARY POLICY
The
backlash to the widely approved USFed hyper monetary inflation policy
has finally come. The backlash actually began last September 2013
when the pathetic trial balloon from Taper Talk had its bluff called.
The outcome was the stark realization that the QE to Infinity was
actual policy, cheered on by the financial markets, begged by the US
corporate captains of industry, who both urgently require credit
faucets to flow. The global fallout has included higher food prices,
higher business cost structure in every nation, shuttered businesses,
and profound economic deterioration, which has resulted in widespread
capital destruction. Anyone like Michael Pento (see CNBC last days of
March) who calls the USFed policy destructive is wiped clean. The
entire Eastern world is demanding an end to the debasement of
USD-based assets and reserves, along with the harmful influence to
lift cost structures everywhere. The world demands a viable solution.
It is coming. It will shake the world.
URGENT
CALL FOR GLOBAL REACTION
The
Eastern nations have had enough of the Anglo-American hegemony
(called bullying or criminal force feeding). They dislike the usual
weapons used such as Bank SWIFT blocks, bank center obstacles,
sanctions against companies doing business with labeled rogue
nations, interrupted contract bidding, and more. The Eastern nations
began banding together with the G-20 Meetings, then put the G-7 and
G-8 into the shadows, then built the BRICS nation consortium. Finally
they are constructing the potent BRICS Development Bank and the BRICS
Central Bank and the BRICS communications network. Their central bank
is the sleeper cell in the mix. It will be revealed soon as the
processing center to convert USTBonds to Gold bullion. Later it will
convert other major nation sovereign debt to Gold bullion, like
UKGilts, EuroBonds, and JapGovtBonds. The Eastern nations have acted
in unison, shown solidarity, worked in coordinated channels, and seek
common goals. They are a force to be reckoned with, while the G-7
diminishes into a mist of a faded empire. Out of the BRICS will come
new organizations and institutions that fortify the East and display
in full force the Global Paradigm Shift. The BRICS and G-20 are the
agents to the shift, led by Russian & Chinese projects, pacts,
accords, and initiatives. It is coming. It will shake the world.
IRAN
SANCTIONS WORKAROUND AS GOLD TRADE PROTOTYPE
When
the USGovt imposed sanctions against Iran in 2012, the chest beating
was in full view. The celebrations took place before the battles were
waged, and then lost. The British and European Governments followed
suit, like the goose stepped phalanx they represent, all done in full
view. The primping in the mirror was in full view. The browbeating
was in full view. The handshakes were in full view. The banker-led
Western governments were very impressed with themselves. The Jackass
at the time mocked them at every opportunity and every turn, for
their futile efforts and self-aggrandizement. The triangle or Iran,
Turkey, and India defeated the USGovt sanctions with clever gold
trade settlement schemes, using intermediaries, avoiding legal
obstacles, and accomplishing the task to make payments for Iranian
oil & gas shipments. The US left a door open for Iranian
companies to serve as mules to deliver gold bullion, gold that was
provided by Turkish banks acting as intermediaries. The Indian energy
customer found a way to make payment to Iran. The sanctions
workaround was born. It will serve as a model in defiance to the
Western clown show, which erected a veritable Maginot Line that the
Persian mules jumped over. How pathetic the arrogance of the
Anglo-American banker hacks! The Gold Trade settlement has a
prototype, developed but in need of some refinement. The Gold
Standard will return, not in bank transfer platforms or currency
trading platforms, but in peer-to-peer transactions made in
settlement. The world demands a new payment system, an alternative to
the deeply flawed USD-centric current system. Even effective viable
barter systems are to emerge. It is coming. It will shake the world.
SHANGHAI
SETS OIL PRICE IN YUAN
A
year ago, the Shanghai crowd began the highly disruptive practice of
permitting a higher gold futures contract price, when compared to the
corrupted suppressed New York and London price. Perhaps some extra
optimism was involved, hoping for wide premiums in Shanghai versus
NY/London. However, even 2% to 3% is sufficient to promote arbitrage
and a gradual but significant drainage of gold bullion, leaving
London and entering Hong Kong and Shanghai. Next comes the Shanghai
crude oil futures contract, to be priced in Chinese Yuan terms. The
new Shanghai Free Trade Zone is fast forming. It will feature fully
convertible Chinese Yuan by June, not in two years. It will happen
this summer. The component of Shanghai Yuan price for crude oil and
gold together will be highly disruptive to the entire Petro-Dollar
system. The endorsement must come from the Saudis, which will happen
on cue. It will spawn the Petro-Yuan, to first challenge the
Petro-Dollar, then displace it. The foundation for the USDollar is
fracturing in full view. It is coming. It will shake the world.
RUSSIA
SUPPLIES ENERGY TO EUROPE & CHINA
Russia
is the true powerhouse in the crude oil sector. The Saudis are
yesterday's news, as their excess capacity is non-existent. Their
water cut is over 90% in the giant Ghawar, meaning its fields produce
almost ten times as much brine water as crude oil. The Russians have
the excess capacity and will begin to flex their energy muscles very
soon. Price is determined at the margin, not the myth or false
billboard. The focus has been on natural gas, but the oil & gas
will be double barreled shot gun applied to alter the European hearts
and minds. The Jackass forecasts that the Kremlin will announce that
oil & gas payments by European clients must be in Rubles, Yuan,
or Gold bullion. The surprise will be inclusion of Yuan for potential
payments to Russia, which will demonstrate an alliance with China.
Thoughts and threats of isolating Russia are as absurd as notions of
gold sitting in Fort Knox. A nation with twelve time zones cannot be
encircled. The payments for Russian energy sales in Yuan terms will
be a significant part of the Petro-Yuan system to emerge. Moreover,
the Russians can use the Yuan to purchase finished products from
China, and to aid the internationalization of the Yuan itself. Some
serious back scratching is about to be exhibited by the Eastern
Dynamic Duo. It is coming. It will shake the world.
CHINA
INSISTS ON PAYMENTS IN YUAN TERMS
Naturally,
the world's biggest oil importer will work to set terms for its own
purchase of crude oil. They will hasten a change from any present
system that requires them to pay for Saudi oil, or Iranian oil, or
Indonesian oil, or Nigerian oil, the change to feature payment in
USDollar terms. They have sufficient market power to dictate terms,
and they will do exactly that. They will insist on purchasing oil
imports with transactions completed in Chinese Yuan payments. They
will strongarm the Saudis into accepting Yuan payments, and the
entire cast of weakling OPEC players will follow the leader. The
Petro-Yuan will be born in Saudi Arabia, with a Beijing phone call.
It is coming. It will shake the world.
SAUDIS
COMPLY WITH YUAN & OTHER PAYMENTS
The
Saudis are in a huge bind. They lost their USGovt protector for the
last 50 years. They need a new protector in order to continue the
pilferage and plunder of the desert kingdom's natural wealth. It is
hardly a royal family asset, but the West enables it to be exactly
so. The Arab Spring charade and smokescreen effectively ripped the
cord between the WashingtonDC and Riyadh. The turning point was
Egypt, where the US engineered a Morsi regime installment, which the
Saudis quickly eradicated. Now the dirty little secret is that the
Saudis are more in control of the Suez Canal than the US and British
gangsters, where Persian Gulf oil for the European market must make
passage. But the Persian Gulf needs more unity, and needs a cohesive
agent, which must be design sail some impressive ships and sport some
hefty guns. The Chinese not only fit the bill, but the Saudis have
already answered the call. The economic summit in late March in
Beijing, led by President Xi Jinping and Prince Salman, provided all
the necessary groundwork. The Saudis have a Chinese missile deal in
the works, sort of a consummated marriage. The Saudis will soon
announce, while standing under the Chinese umbrella, that any oil
payments are acceptable in USDollars, Chinese Yuan, Euros, British
Pounds, Swiss Francs, and Japanese Yen. The Saudis will transform
themselves into an equal opportunity crude oil mart with many working
windows. They will kneel before all fiat paper princes, including the
King Dollar. It is coming. It will shake the world.
OPEC
FADES WHILE GAZPROM WRESTS CONTROL
The
influence of OPEC will fade with the Saudi desert sun. The OPEC
cartel serves as the Petro-Dollar active platform to enforce the
payment system in USDollar terms. Deviations invite USMilitary
reaction. See Iraq, dateline 2003. See Iran, dateline 2012. Oil
policy is dominated by the Saudis in the OPEC meetings, often held in
Vienna. The Arab Royals like to get out of the office and mingle,
even see the world that is not sun scorched. In order to comply with
the Chinese new leadership in the oil and currency nexus, the Saudis
will have to swallow hard and permit the Iranians to become a leading
player within the NatGasCoop. It will supplant OPEC. It will be led
by Russian Gazprom. It will not be dominated by oil transport ships,
but rather by natgas pipelines. The key new ports will be in Syria,
in Israel, with connector valves to Greece, Ukraine, and soon
Pakistan. What OPEC is to the Petro-Dollar, the NatGasCoop will be to
the Petro-Yuan. The risk to the Arab kingdoms is a return to desert
tents and away from palaces. The coop cartel will include strange
bedfellows like Iran, Qatar, Israel, Turkmenistan, Algeria, and
Russia. It is coming. It will shake the world.
EUROPE
CAUGHT IN THE MIDDLE
The
grand prize has always been Europe. With NATO, the United States
captured it. But with bond fraud, failed banks, monetary inflation,
toxic patches, austerity plans, bank bail-in threats, agency
eavesdropping, and narcotics trafficking, the Anglo-Americans have
wrecked their alliance with Western Europe. The clincher and breaking
point will be action in Ukraine. The USGovt has been in violation of
NATO Treaties forged with Russia ever since 2004 when the defensive
missile shield was put in place in Eastern Europe. At the same time,
the US courted certain eastern nations to join NATO in a real big
stretch. The stretch to impose a nazi regime in Kiev is the final
straw. The European nations are splintering away from the US fold,
one by one. The reasons stated appear to be financial in uniform
fashion. The London bankers and the German bankers will not forego
the lucrative Yuan Bond trade, just for a lousy two bits in Ukraine.
Besides, they did not share in the looted Ukraine central bank gold,
which went to New York Fed vaults. The United States will find itself
horribly isolated again and soon, just like in Syria. The Western
energy giants of Chevron, Royal Dutch Shell, and ENI of Italy will
not enjoy sufficient spoils to keep the European alliance together.
It is a pathetic alliance. It has no strong dogma besides thefts and
sacked control. It has no deep commitment. The nazi modus operandi
has been laid bare. Europe will move gradually to the future, and
depart from the past. Europe will be led by Germany, whose
industrialist elite are 90% pro-Russian. Europe will turn its back on
the United States initiative in Ukraine, with political lip service
offered in support, but with absent military commitment and support,
or approval for attack under any pretense. Europe will back the
Petro-Yuan that is pushed by Russia and China, thus disproving any
hint of Russian isolation. Europe will be the midwife to the
Petro-Yuan birth. It is coming. It will shake the world.
DEATH
OF PETRO-DOLLAR
The
death of the Petro-Dollar was written when the USFed announced
Quantitative Easing and the uncontrolled spew of bond purchases. The
central bank monetary policy to debase the USDollar forced Eastern
nations to begin diversification plans out of the USTreasury Bonds
held in banking reserves. They suddenly become toxic, falling in
value, or propped in value by the Weimar press managed in New York.
The death of the Petro-Dollar was confirmed when the Saudis ousted
Mohamed Morsi from the US designed throne in Cairo Egypt. One must
wonder what early assurance China had given to Riyadh Royals in order
for the Saudis to pump $6 billion into the Egyptian coffers,
alongside certain other Persian Gulf participation. The death of the
Petro-Dollar was given a hidden eulogy in Beijing when Xi and Salman
worked out numerous supporting deals to lay the foundation for a
decade of union. The death of the Petro-Dollar will cause
unprecedented ripple effects across the Western world. It is coming.
It will shake the world.
SHOCK
WAVES FORCE NEW DOLLAR SPLIT
The
shock waves will be enormous and far reaching, hitting every sector
of the USEconomy. The price system will undergo shock from the
unwillingness of foreign suppliers to accept old USDollars. The
import prices will rise significantly. The supply network will
undergo shock from shortages and pockets of inventory lapse. The
USGovt will find tremendous challenges in funding its deficits, while
the USFed loses its control of the USTreasury market. Expect even the
derivative machinery to suffer deep strain, if not breakdown. Foreign
banks will engage a grandiose dumping exercise. The new Scheiss
Dollar must be born in order to finance the US debt and to assure
imported supply, thus to ensure continuation of the USEconomy itself.
The USGovt has no jurisdiction over foreign contracts, period! The
shock waves for the Petro-Dollar death will urgently force the launch
of the domestic Dollar, the decision hastened by the extreme vacuum
to come. The Scheiss Dollar will feature an exchange rate that must
undergo a painful sequence of devaluations. The poor currency baby
will not find stability easily, since devaluations will not be large
enough to bring about equilibrium, and will be too small in the hope
to avoid disruptions. It is coming. It will shake the world.
BIRTH
OF EURASIAN TRADE ZONE
The
motive for Cyprus action, Syria action, and Ukraine action is to
prevent, obstruct, and forestall the progression in the Eurasian
Trade Zone. If truth be known, the conflict between the United States
and Russia has additional roots in Georgia, dateline 2008. The
skeletal system for the trade zone is to be the Gazprom energy
pipelines and the scattered LNG nodes. Its headquarters will be
Moscow, Beijing, and Berlin, all shown in time, with strong
satellites in Delhi and Tokyo. The role played by Iran, Turkey, and
Brazil will also be important. The passage of time will be crucially
important in the following weeks and months, since time permits the
rapid degradation. All of Eastern Europe is watching the horror show
in Ukraine, and especially in Kiev. As the rape and pillage is
continued in orchestration by the USGovt security agencies, the
European Soros gangsters, and the Blackstone thugs, all Eastern
European nations will be watching closely. They will wish to escape
the scourge of the Anglo-Americans, their French tyrant poodles, the
Big Oil firm plunderers, and the Attila the Hun lookalikes. The
contamination of the water tables in Ukraine, Bulgaria, Romania, and
Poland might turn the tide. The trap has been set, but it cannot
spring shut to trap the Western pirates without the passage of time.
Putin will use that passage of time to permit the public sentiment to
change, and to permit the Ukraine Economy to collapse in double quick
timeframe. Without its central bank gold, and without the $billions
in official state funds, and without the Western investors, the
nation will collapse in three months. It is coming. It will shake the
world.
THE
NEW DIPLOMATIC GIANTS
A
tremendous opportunity has arisen. The Chinese are in a position to
mediate between the United States and Russia, while in the background
working vigorously to put the Petro-Yuan final touches in place,
while in the background working to put the Gold-backed Yuan currency
in place, while in the background working to build the components to
the Eurasian Trade Zone, while in the background working to convert
the BRICS Banks into a gold acquisition office. China can look like
the champion for peace, while winking at Putin through the Kremlin
window. Furthermore, China can take the lead in diplomatic roles in
the Persian Gulf, like between the Saudis and Oman. Many are the
bilateral conflicts within the Persian Gulf, all the result of the
Moslem Brotherhood influx supported by the Al-Qaeda main office in
Langley. Never has their Al-Q leadership and coordination been more
obvious from US offices. As footnote, let it be known that Germany
has an open opportunity to rise as the European diplomatic champion.
The Germans can mediate between Russia and the other European nations
who wish to break away from the US Nazi camp. The important swing
state for the uniting of Europe with Asia is Germany, and has always
been Germany. The Schaeuble foibles will be overcome in time, a bump
in the road. It is coming. It will shake the world.
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com. For personal questions about subscriptions, contact him at JimWillieCB@aol.com
Russian
oil firm says Asian buyers willing to use euros
*
Russia mulls counter measures against Western sanctions
*
Moscow expects harsher sanctions over Ukraine (Adds detail, analyst,
traders comment)
By
Vladimir Soldatkin and Florence Tan
10
April 2014
MOSCOW/SINGAPORE,
April 10 (Reuters) - Russian state-controlled oil producer Gazprom
Neft said it had received positive responses from Asian clients about
the possibility of using euros as a settlement currency instead of
the dollar.
Company
head Alexander Dyukov said this week Gazprom Neft had broached the
idea of dropping the dollar, traditionally the currency of choice for
the global energy sector, in response to a possible new round of
Western sanctions over Russia's annexation of Crimea.
He
said the company had discussed with buyers the possibility of
switching contracts to euros and that 95 percent had said they were
ready to do it. Gazprom Neft ships around 30,000 barrels per day of
oil eastward.
"Gazprom
Neft has held discussions with its eastern partners about the
possibility of completing settlements in the European currency. They,
in turn, expressed their potential readiness for this," the oil
arm of top Russian top natural
gas producer
Gazprom said in emailed comments on Thursday.
Three
buyers in Japan and China said
they had been approached by Gazprom to settle oil payments
in currencies other
than the dollar. Two of the buyers said they were still considering
the proposal, while the third said his company had bought crude using
euros before and did not see it as a problem.
"Switching
to euros is not a big deal. The problem is who will bear the exchange
cost," a trader with a Japanese buyer of Russian Asia-bound
ESPO crude
oil blend
said.
The
United States and the European Union have already imposed some
sanctions, mainly on individuals, over the Crimea crisis and have
threatened more sanctions if Russia sends troops into eastern
Ukraine.
Moscow
has reserved the right to send in troops if it deems them necessary
to protect Russian speakers in Ukraine from what it says are
nationalist and neo-fascist groups.
President
Vladimir Putin has urged Russian companies to forge closer ties with
Asian energy powerhouses as relations with Europe and the United
States have become frosty.
Earlier
on Thursday, First Deputy Prime Minister Igor Shuvalov said Russia
had potential partners to turn to for oil and gas trade other than in
the West.
Analysts
said the proposal to use euros instead of dollars was rhetoric rather
than an immediate possibility.
"It's
obvious that the shift from the existing system of settlements is
fraught with costs and does not promise benefits" for Russia,
Valery Nesterov, an analyst with Sberbank CIB in Moscow, said.
"It
is more likely about future contracts, not current deals, as the
settlement currency had been already agreed."
Some
traders have been sceptical about the prospect that Russian companies
could drop the use of dollars for settlements, because countries with
close political ties to the United States, such as Japan, could find
such a switch too politically sensitive to agree.
One
ESPO buyer in Japan said his company did not have direct dealings
with Gazprom Neft but that he was aware of some requests being made.
If
Russia was serious about such a shift, the big sellers such as
Gazprom and state oil company Rosneft would be looking at similar
moves, but so far there have been no signs of that, he said.
Rosneft
Chief Executive Officer Igor Sechin, a long-standing ally of
President Vladimir Putin, said on Thursday the company would use
settlement currencies that have already been agreed in contracts,
according to local media reports.
We will look back on these days, those of us who survive, and say why didn't we see the signs?
ReplyDeleteIn recent years the occupation by 10,000's of mostly U.S, soldiers of Afghanistan, the overthrow of Saddam Hussein in Iraq who had been their ally in a proxy war against the Republic of Iran, The No Fly Zone over Libya that overnight morphed into regime change and the brutal slaughter of Muamar Gadaffi all televised for our macabre pleasure or horror and more latterly the equally brutal illegal war on Syria where U.S. proxies have been beheading men, women and children for their macabre gratification and even uploaded to You Tube to be viewed by the de-sensitised generation who have grown up with Video war games.
These have all been machinations of the desire to control the worlds Fossil Fuels and the revenue streams that flow from them.
The bitter irony for myself and others is that in reality, much of these hydro carbons are worthless.
As we exploit these resources, and exploit is the appropriate term we bring closer the demise of our planet.
I am quickly coming to the conclusion that this certain demise will be speeded up by War and almost certainly a Nuclear one that will undoubtedly involve a nuclear winter.
U.S. Dollar hegemony is doomed by the printing presses of the privately owned U.S. Federal reserve and with it's demise will commence a shooting war of unprecedented proportions.
It seems obvious to me that we have now crossed 'The Rubicon' and there will be no going back.
U.S. neocons have marched headlong into the Ukraine and with the expenditure of $5b of fake U.S. currency have pushed the Russian Bear to the brink. Some pundits have hypothesised that Vladimir Putin has fallen into their trap with his responses to the Crimea and Ukraine situations. I am not so sure who set the Trap and who has fallen in.
The one certainty for me is that the Russians play chess and the North Americans play checkers.
As a youth I played chess with an older brother who had a near photographic memory and was a mathematician and he used to slaughter me at chess.
I believe the Russian Bear will slaughter the wily but stupid American wolf but we will all be led to the slaughter as the U.S. goes down.
I'm not attacking the people of the U.S. I'm attacking their leadership and the Fascists who have taken control of their country and debased the moat amazing constitution on the Planet.
Another Great article by Seemorerocks, Thx Robin Westenra, you rock
Reference;
"The Rubicon was a stream separating Cisalpine Gaul from Italy. When Julius Caesar led his troops from Gaul to the Rubicon, Caesar paused on the northern end of a bridge debating whether to cross or not. It would be a crime against Rome for proconsul Caesar to bring his troops in from the province, but if he didn't, he would be stripped of command and prosecuted. Although he hesitated, Caesar did cross the Rubicon (although we are not sure exactly where), in January 49 B.C., thereby starting a civil war."
http://ancienthistory.about.com/.../caesare.../g/Rubicon.htm