Skip to comments.The U.S.-Saudi crackup reaches a dramatic tipping point
Posted on 10/23/2013 7:57:34 PM PDT by Rabin
The strange thing about the crackup in U.S.-Saudi relations is that it has been on the way for more than two years, like a slow-motion car wreck, but nobody in Riyadh or Washington has done anything to avert it.
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Maybe we just produce more energy than they do.
A.)What deals have been made and
B.) Who made them?
I think Obama's asking the same questions and that's why he's eavesdropping on everyone.
The US is now the worlds #1 energy producer. Game change.
Yes, we proce more. Check.
The Saudi’s switch to gold for settlement, or a gold backed Yuan. Check mate.
The Saudis switch to gold for settlement, or a gold backed Yuan. Check mate.
3 Trillion barrels in the Green River Formation comes on line..
US becomes energy independent and a nett exporter of oil and gas....
Game, Set and Match to the US.
Break with the Saudi freak show.
They’re a future threat, recognize it.
It isn’t just about oil, that’s only part of the deal. It’s also about a thing called “petrodollars” which have established the US dollar as the de facto global reserve currency. It is that defacto global reserve currency status resulting from the petrodollar arrangement between OPEC and America that has enabled us to run up a 17 trillion dollar national debt. Should that arrangement suddenly end...there will be far reaching and lasting consequences.
Kerry promised a war in Syria to install a Wahhabi regime.
He failed to deliver, and King Abdullah is pissed.
That, and Obama refused to bolster Mubbarak and recognized the militant Muslim Brotherhood, both of which bode ill for King Abdullah.
Finally, Obama engages with Iran without consulting his Arab friends, which is kind of like engaging with the IRA without consulting with British back in the 70s.
Doomsday happens when Saudi persuades OPEC to join in with China and Russia to price oil in terms of gold and gold-backed yuan and riyals.
And, with QE infinity, why haven’t they done it already?
This might be the first step in a massive global shift.
If the dollar stops being the reserve currency, we will be in trouble fast.
Maybe they have.
Oil exports are a small part of this puzzle. The status of the dollar as a reserve currency is what is at stake. Today, there is not another currency strong enough. But that could change. When that happens all of the oil in the west won’t help us.
Bingo. you broke the code.
The Saudis drop the requirement for payment of oil in dollars, the currency bubble pops and QE Over kicks in.
The Saudis demand payment in US dollars and buy US goods that are really made in China. Why not eliminate the middle man?
In these conversations I point to the failure of East Germany and the Soviet Union. The possible collapse in the USD as reserve currency could happen just as quickly. When the economy loses confidence, the result is dramatic.
Unfortunely, the yuan s worthless.
I don’t know if you have heard but china is run by a communist dictatorship.
This means all investments belong to them.
But please prove me wrong and invest there with confidence.
Dollar switch has been argued for decades.
It’s over. We have all the energy. Russia and saud are history. Good bye.
I think we will have to disagree, agreeably.
I agree China is a mess.
I just cannot see them continuing to buy our crap bonds.
We will see what happens.