The King Dollar is mortally wounded.
The Global Currency RESET is not far out.
Many notice but the masses seem largely unaware. Since 1971, the Gold Standard has been removed from its anchor position. But since 1973, the Petro-Dollar has taken its place. It has called for crude oil sales led by the Saudis and OPEC to be transacted in USDollar terms, for oil surpluses to be stored in USTreasury Bonds, and for some kickbacks from the Saudis to the USMilitary complex for weapons purchases. Of course, the US is ready willing and able to create strife and to foment wars whereby the Arab oil monarchs will need more weapons.
Since 2014, many events have pointed to the crippled condition of the important link between the USDollar and crude oil. The price has plunged by 50% of more, and not recovered. It is currently lurching in the nether bounds near the $45 level. Anything less than $65 to $70 per barrel is very dangerous for keeping the oil sovereigns afloat and for keeping the US energy sector solvent. Witness the Wall Street banks having tremendous problems with impaired bonds and toxic energy portfolios. They seem not resolvable. They cannot keep the oil price over $50, a sign of their impotence.
Not enough financial analysts connect the new normal of a much lower crude oil price with the eventual vanishing act of the Petro-Dollar. The Wall Street banks are deeply exposed on their entire energy portfolios, which include both bonds and commercial loans. Tens of $billions will have to be written off as loss, beyond the $billions already declared as losses. These corrupt banks have worked their magic to lift the oil price above the $50 level, but failed. They worked the task for over a year, but failed. They need an oil price over $60, but failed. The Saudis did not help the cause, by their ongoing extra output to finance their filthy Yemen War. The Saudis earned the anger of their OPEC partners, especially the Gulf Arab allies. The Wall Street banks deeply resent the Saudis for this deed, but the USMilitary complex loves the Saudis. The other Arab oil producers also harbor consider rancor toward the Saudis, who really have no friends in the entire Persian Gulf region. They are so worthy of a palace coup, which would bring clamors of rejoicing in many corners of the West if it were to occur. The day might be close.
The Saudi warrior prince just made more enemies in-house with the push to become crown prince. The dozens of half-brothers will plot against him. Many analysts believe an internal collapse in Saudi-land cannot occur, due to control by the royals of the key factions like the military and religious center. Keep in mind that bankruptcy has a way of sweeping factions aside. A failed ARAMCO stock deal could trigger some internal battles, and reveal the bankruptcy in addition to the lies on national oil reserve wealth. The kingdom’s bankruptcy could become a major topic soon, as the Jackass has been harping on. Be on the lookout for a strange suspicious death event for the king, which could trigger violent episodes from rival half-brothers, many of whom have had their families cut out of wealth distribution (confiscation) for decades.
PETRO-DOLLAR IS DEAD
The Petro-Dollar is a dead standard. The important functional parts, such as the derivative machinery, have been dismantled over the last four years. A key hint on the massive rift between the US and Saudis was the contrived legal prosecution cases with the big Swiss banks. It seems the Swiss simply bent over and took it in the rear flank from the Washington NeoCon criminals.
No precedent exists for the USGovt to sack control of a sovereign nation’s big banks like what happened with UBS and Credit Suisse. Pay no heed to the formal charges of tax evasion and Iran sanction violations.
These were pretexts for stealing the Arab gold in Swiss bullion banks. Notice that a year later, the Saudis worked to move hidden gold hoards into the safe confines of Deutsche Bank. The threads are complex, since the Qataris pulled their funds out of D-Bank, thus rendering it more exposed. Some of the most convincing evidence of a dead defunct Petro-Dollar is the multiple fronts of war to defend the USDollar. Back in 2005, the Jackass wrote often about how in several years the King Dollar will be defended by war. It is here.
Right here, right now, the numerous hot spots rage with war, sanctions, and boycotts within the Arab monarchies. The Jackass regards sanctions as a clear indication of failed foreign and economic policy. A crystal clear observation is that unity behind the USDollar is gone. The failure of the Petro-Dollar is a signal to all countries to bail out on the USD and to find a better linkage for commerce and banking. The Eurasian Trade Zone does precisely that on both fronts.
FRACTURED GULF MONARCHIES
The recent events within the Gulf Region have been extremely disruptive. Clearly the region is permanently fractured. The battles between the Saudis and Qataris date back to conflict over the Muslim Brotherhood and events in Egypt. The conflict has many sides which continue to erupt. It seems that the Qataris have taken the cultural lead over the Saudis in areas of education, symphonies, and media. The ISIS guerrilla element also complicates the relationship. The Saudis and Qataris support rival guerrilla groups.
The ISIS organization is a creation of Langley and Mossad, of the USGovt and Israeli Govt, for the purpose of conducting proxy wars and instilling terror on the Syrian front. Russian President Putin conducted a Powerpoint Presentation of the vast financial links from Washington and Israel via the Swiss banks to fund ISIS groups, all done as a sideshow to a G-7 Meeting last year. It was as intriguing as it was shocking, but not covered by the lapdog Western Press. Their changed names and multiple groups only add to the confusion, which pleases both Washington and their controllers in Israel.
Soon the truth will come out that not only is the war over the competing natural gas pipelines, but over huge Leviathan energy deposits which extend into the Golan Heights. This territory is hotly disputed for 20 years, originally Syrian land, but taken by Israel. It contains a huge amount of oil & gas.
THE COMPETING PIPELINES
It is a mere hop skip and jump for the Saudis to invade Qatar. They could possibly receive USMilitary aid easily, since the US maintains a big military base in the tiny emirate. The invasion would be unprecedented within the Arab world, ever since Saddam tried to overrun Kuwat two decades ago. The unmentioned issue in the Western Press is that Qatar battles with the Saudis for competing natural gas pipelines.
The pipeline conflict lies at the core of the entire Syrian War, but never is it mentioned. The site of the battle is Syria for its pipeline crossroads. The press refuses to mention energy pipelines, and surely refuses to mention that Israel lusts for full control of the giant Leviathan energy deposit in Syria, primarily located in the Golan Heights.
Saudi Arabia tends to disrupt all Arab natural gas pipelines in favor of crude oil supply.
Qatar is a leading LNG producer, and Saudi Arabia does now want Iranian natgas competition. Russia supports the Iran pipeline, while the United States supports the Qatar pipeline. The ISIS guerrillas are in the mix, run by the Langley and Mossad offices. The rest is noise. The story is incredibly complicated, very difficult to comprehend, and made more confusing by the press which lies and distorts on mostly every aspect of the story.
Observe an unprecedented move designed to punish one of the region’s financial superpowers for its ties with Iran and Islamist groups in the region. Saudi Arabia cited Qatar’s support of terrorist groups, aiming to destabilize the region. The pot calls the kettle black in this case, in truly laughable manner. The ISIS groups include the Muslim Brotherhood, Islamic State, Daesh, and al-Qaeda.
The reality is that several ISIS guerrilla groups operate in Syria and Iraq, which are at odds. The comedy seems to be a battle of whose terrorist groups are better and more honorable, when none preach any Muslim religious tenets at all, just theft, profit, rape, violence, and pilferage. An alarming but true factor is that the ISIS guerrillas actually recruit men, with the promise of permitted rape of women under their protection in the captured towns. The Western Press does not mention this either, while they feature the false video events of beheadings (with no blood squirts).
The over-arching issue is the pipeline, since the potential source of tremendous income at a time when the crude oil decline has rendered great harm to all Gulf nations. The object is supplying energy to Western Europe. The battle has amplified since the United States created a dead buffer zone in Ukraine, blocking Russian Gazprom natgas supply from reaching Europe.
The Russians reacted by diverting the pipeline construction process through Turkey, with some delays. The leaders in Ankara are more than willing to cooperate, since the US-led failed coup attempt in 2016 emboldened Turkish President Erdogan. The USGovt must be frustrated and angry that every since foreign policy initiative since 9/11 has been a miserable failure. It does not stop them from making the next mistake, since they learn nothing. Arrogance, corruption, and aggression are a bad mix.
This map tells it all. Israel & the United States via Qatar want to stop the Iranian pipeline at all costs. The Russians support the Iran Gas Pipeline, while the Chinese buy natgas from Iran. The little players are always crushed in the middle, as Iraq and Syria find themselves in the cross-fire. Tiny Qatar has some potent friends, and is more astute than Assad in Syria from the start. Note the Qatar pipeline pathway does not enter Iraq, but remains in Saudi Arabia, cutting through Jordan, and entering Syria.
The USGovt objective is to destroy the entire nation of Syria, more genocide as standard operating procedure. The competing Natgas Pipelines are at the heart of the dispute, the conflict, and the war, yet the pipelines are never mentioned in the Western Press. The propaganda continues to spew nonsense about sectarian violence and Assad’s nerve gas events which never occurred. The longstanding established purveyor of nerve gas has been the United States, dating back to the Iran-Iraq Twenty Year War. The Russian Military presence raises the war risk, but it assures the defeat of ISIS.
TINY QATAR SHINES BRIGHT
Qatar is in the middle of the GCC countries. It has tried to pursue an independent foreign policy. The Gulf Arabs are deeply divided and dislike those in middle ground. They attempt for unity within the Gulf Cooperative Council, but none is evident anymore, only strife and calls to sanction. Qatar’s geopolitical importance is far reaching, not only for its vast wealth, but because Qatar is one of the biggest producer of liquefied natural gas. While the country has a population smaller than Houston Texas, it has one of the world’s largest sovereign wealth funds with over $335 billion investments in companies such as Volkswagen, Rosneft (Russian oil), Barclays (British bank), Credit Suisse (Swiss bank), and Tiffanys (Anglo retail chain).
Qatar hosts the two largest USMilitary bases in Middle East, including the Command Center CENTCOM. All the ISIS guerrillas are being trained in Qatar by the USMilitary, the ultimate irony and another dirty secret. The Qatar Royals are in bed with the US to a much greater extent than the Saudis. Another irony in a series of ironies is that the Saudis might find themselves off man out with respect to the USMilitary and Arab oil monarchs. Suddenly Qatar stands to lose a huge amount in future natural gas sales to Europe, as the Russian-Turkish pipeline comes into view. In the Jackass opinion, this action indicates the Saudis are parting ways with the United States in bizarre fashion, notwithstanding the fanfare of the supposed $350bn weapons deal over ten years. The USMilitary has a giant hub in Qatar. The US has supported the Qatar pipeline. The Saudis are attacking Qatar.
The Jackass forecast is that the USGovt will seek detente with Iran, permit the Iran Natgas Pipeline construction (under Russian aegis), and work toward peaceful coexistence. The USGovt realizes it cannot wage war with Iran, overrun the country illegally like it did with Iraq under Saddam. Also, Iran has triple the Iraqi population. The Iran Pipeline will represent a core element of the dual universe of a Dollar world coexisting with an RMB world. The Iranians will work to use the Chinese RMB, the Russian Ruble, and even the Euro currencies for payment of natural gas shipments. Eventually the introduction of the Gold Trade Note will emerge, all under the Iranian commercial shadow. More irony since the US slapped sanctions on Iran three years ago.
SAUDI LUST FOR RESERVES
The Saudis might lust after the Qatari reserves, with steep arrogance of ambition amidst their own bankruptcy and ruin. The precedent has been set in concrete in just the past two years. The Riyadh Royals in the Saudi Kingdom have been striving to steal the vast energy deposits located in Yemen, which the Western Press refuses to mention. The volumes are gigantic, and the geology is shared by the two countries located on the same Arabian Peninsula. Only small press leaks have been seen in the British press, actually its alternative press.
The Saudi Deputy Crown Prince Mohamed bin Salman (MbS) clearly has his focus on the ailing Saudi Economy, its depleted reserves, and failing stature. The Saudi Kingdom is bankrupt, made a crippled player by the deflated crude oil price, which results in much lower oil revenue. The Saudis have introduced their first sovereign bond offerings, a confirmation of deficit buildup. They continue to waste and squander huge amounts of money in their filthy dirty war in Yemen, complete with regular ugly war crimes like bombing civilian hospitals, marketplaces, and schools. Such bomb runs never make headlines in the Western Press, only fabricated Syrian bomb runs. The Saudi Military even deploys the infamous phosphorus bombs which burn people alive at 10 thousand degrees Fahrenheit. The USMilitary tested such heinous bombs in Rumallah Iraq a few years ago.
An invasion and takeover of Qatar could restore the Saudi stature, according to the lunatics in charge of the palace. Such invasion must be supported by the USMilitary, since it has giant stations in Qatar. If truth be told, Prince Salman needs a cyanide cocktail, some grapes, a couple lap dances in the desert, and the promise of paradise with virgins. His ambition is noted along with the imminent ruin of the Saudi Kingdom, one more angle to consider in the complex Gulf Region.
The big change agent issue is that Qatar altered course, no longer aligned with Saudi gas pipeline strategies. The Emir in Qatar flipped into the Iran Gas Pipeline camp, firmly entrenched based upon recent developments.
The clueless wrong-footed and deeply deranged USGovt is trying to force more costly natural gas purchase upon Western Europe by engaging in a failed strategy of pipeline obstructions. The Washington NeoCon bird-brains are trying to sell Western Europe a supply whose volume is far less than what the Europeans require. They will opt for Russian and Iranian adequate supply, and remove all US efforts at obstruction.
The two vital cogs to the Petro-Dollar for over 40 years have been Saudi Arabia and the United Arab Emirates. The former is broke on oil reserves, the latter broke on FOREX reserves. The UAE is so pathetically lost and broken, that it has resort to asset thefts under royal guidance within their fractured banking system. The situation is so bizarre and broken, that the Saudis and Emiratis of UAE have had a few hot war episodes in the midst of the ugly Yemen War. The two Arab stalwarts fought a fierce battle to control the Aden Airport. Apparently, the UAE mercenaries won the airport but the Saudis wanted it for air sorties and logistics. The Arabs never come to agreement on anything, as seen in OPEC with fights over nameplates and lunch menus. But they all agree on the Vienna prostitute selections.
MASSIVE CURRENCY FOUNDATION VOID
In ancient times, the societies had the wisdom to use salt as currency, since it was tangible. Later, gold & silver were discovered and used effectively as money. In frontier times in what later became the United States, wampum was a common form of exchange such as beaver, otter, and bear pelts. These societies all had more honor and integrity that the Khazarian Nazi human scum that has been in charge of mankind’s corrupt monetary system for the last 45 years. With the Petro-Dollar effectively dead, a massive void has developed on the global financial stage. Enter the NatGas Cartel led by Russia, Iran, and Qatar. Its impact will be tremendous and far reaching.
The void must be filled for carrying FOREX banners, since no gold has yet to be pledged in any currency backing, or even any banking system core reserves placement. The sale of crude oil in USD terms has ruled since 1971, forming the defacto Petro-Dollar standard. That standard has crumbled. A huge event is coming very soon.
The impact will extend from the Chinese energy purchases from Gulf Arab sources, this time paid in RMB terms. The event will solidify Chinese presence in the Gulf Region, and mark the fading influence of the Untied States. Watch for any key potential event. The Chinese might decide upon an over-priced investment in ARAMCO in order to apply RMB leverage. The Chinese are already raising their presence, and not just in Saudi-land. Qatar did $86bn in RMB trade with China in the last two years, with firm expectation of much greater commercial growth.
Enter the NatGas Cartel of Russia, Iran, Qatar to fill the currency foundation void. This pipeline will avoid Syria, sure to become a neutral DMZ in time. The USGovt specializes in razing a nation, leveling its economy, destroying its infra-structure, and creating a vast demilitarized zone. Much precedent exists.
Qatar is huge in LNG, linked to Germany and Russia for technology expertise. Iran is on the verge to surpass Qatar in natgas output. They work cooperatively though. Iran and Qatar share a giant natgas field in the Persian Gulf. It is called the South Pars field by Iran, and called the North Dome field by Qatar. The offshore deposit is a natural gas condensate field located in the Persian Gulf. It is by far the world’s largest natural gas field, with shared ownership by Iran and Qatar.
They will not go to war therefore on a jointly owned project with significant investment to date. Incredibly, the gas field is estimated to contain 36 trillion cubic meters of natural gas. It currently has significant production, led by Qatar Petroleum and South Pars Gas Company, with increases soon expected after French Total entered into a EUR 5 billion contract. As footnote, it should be noted that Iran has a mini-LNG construction contract with South Korea for further interior production.
The NatGas Cartel will not be USD-based. Payments will be Chinese RMB, the Russian Ruble, and later the Gold Trade Note. The connection with Western Europe assures usage of the Euro currency eventually. The introduction of the Gold Trade Note will set the tone for the Eurasian Trade Zone payment system and resulting financial structure. The giant output supply to Western Europe, combined with Russian-Turkish flows, will alter the balance of geopolitical power.
The Ukraine obstruction will become a sideshow of irrelevance and a tribute to US warmonger brutality. The brewing US-Germany trade war shows the fractures at work over Nord Stream-2, which drive home the point that the USGovt has lost control and lost power, in addition to prestige and influence. The United States will soon be recognized as a rogue nation. They have been disinvited from the European Minsk Accord negotiations over the Ukraine truce. The Untied States faces isolation, another Jackass forecast coming to pass. The isolation will accelerate, given the gradual revelations of chemtrail poison, GMO food alteration of human chromosomes, laced vaccines with actual viruses, and gas fracking water contamination, among other crimes against humanity.
The USDollar failure in the Middle East is a signpost for every country to bail. The series of wars to defend the crippled toxic USD is a signpost for every country to seek a better leading partner. Europe cannot survive without the One Belt One Road cornucopia of $billion contracts and ample projects. All trade goes through China and Russia, who lead the Eurasian Trade Zone formation and provide its SCO security blanket, which will rival NATO. An important factor, causing consternation to the propaganda artistans in the West, is that Russia is a net debt free nation while US is bankrupt and cannot save itself.
Germany was bounced from Turkey, which now is splintering off the NATO family of warmongers and heroin distributors. Suddenly Turkey appears more influential than the western Nations, and might soon rent the Russian Military some space at the giant Inclirlik Airbase. The Petro-Dollar failure gives Iran, Qatar, and Russia the primary hand. The USGovt sanctions on Russia no longer mean anything. European nations are working to restore relations commercially in defiance. The USGovt sanctions against Iran backfired. It produced the Gold for Oil sale with India.
The Global Currency RESET is not far out. The pricing in financial markets is dictated by derivatives solely for the purpose of keeping the Too Big to Fail Banks solvent. The USFed’s hyper monetary inflation, better known euphemistically as QE, is designed to keep these big broken banks liquid. Without the derivatives of bond purchases, the big banks would all be in failure mode like those in Spain and Italy.
But the United States is the exceptional nation. The newly emerging Natgas cartel will primarily deal in CNY, RUB, and EUR currencies, which is why the United States is trying to force expensive NG sales onto Europe. The Washington NeoCons are busy throwing hurdles in the way of Nord Stream 2, as well as Turkish Stream. To use Saddam type of language, the mother of all pipelines will be connecting Iran-Qatar-Iraq-Syria-Turkey to Europe. The King Dollar and its reign of terror is coming to an end. That end is now visible. The excitement will come when Gold enters the payment system picture, and the enduring depression among gold investors will come to a welcomed end.
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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 [email protected]