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"Wars, Rumors Of Wars, Skyrocketing Oil Prices And Global Economic Chaos – Why Is All Of This Happening?"
Michael Snyder writes about "Wars, Rumors Of Wars, Skyrocketing Oil Prices And Global Economic Chaos." He argues that, if we're not running on empty already (though we probably are), we will be if the price of oil continues rising. Ilene
Courtesy of Michael Snyder at Economic Collapse
Did anyone out there anticipate that 2011 would be such a wild year? The year is barely over two months old and we have already seen multiple civil wars erupt, rumors of more wars all over the mainstream media (potentially even including the United States), riots and revolutions breaking out all over the globe, oil prices soaring into the stratosphere and chaos on global financial markets.
So why is all of this happening? Is all of this one big coincidence or is there a reason why we are witnessing such global chaos right now? Is it just coincidence that revolutions have broken out in over a dozen countries in the Middle East all at the same time? Is it just a coincidence that global prices for oil, food and precious metals are all skyrocketing? Is it just a coincidence that world financial markets suddenly seem more vulnerable than at any time since 2008? Looking at what is going on in the world right now, it is very tempting to use the phrase "a perfect storm" to describe it. Unfortunately, this "perfect storm" is very likely to plunge the global economy into yet another financial collapse if it continues to get even worse.
After decades of relative stability, the Middle East has erupted in chaos in 2011. In the post-World War 2 era, we have never seen a time when there have been so many major internal revolutions all at once. All of these simultaneous revolutions are driving the price of oil rapidly upwards.
The price of West Texas crude is now over $102 a barrel and the price of Brent crude is now over $116 a barrel and if the chaos in the Middle East continues those numbers are likely to go a lot higher.
Meanwhile, gold has set a new all-time record this week and the price of silver is absolutely exploding.
In fact, just about every kind of "hard asset" that you can possibly name is going up in price. Investors don't like all of this instability and they are looking for safe places to put their money.
Unfortunately, the global situation looks like it may become even more heated.
The calls for military action against Libya are rapidly reaching a crescendo.
The U.S. Senate has unanimously passed a resolution calling for the UN Security Council to impose a no-fly zone over Libya, and many members of Congress are openly declaring that the U.S. and NATO should take unilateral action no matter what the UN ultimately decides.
But implementing a no-fly zone is not a simple thing. It is not just a matter of telling Libya not to fly their planes. Rather, imposing a no-fly zone over Libya would constitute a major military operation.
U.S. Secretary of Defense Robert Gates is even admitting that enforcing a no-fly zone over Libya would begin with a huge military strike.....
"Let's just call a spade a spade. A no-fly zone begins with an attack on Libya to destroy the air defenses ... and then you can fly planes around the country and not worry about our guys being shot down."
U.S. commander General James Mattis made a similar comment on Tuesday....
You would have to remove the air defense capability in order to establish the no-fly zone so it - no illusions here, it would be a military operation.
Essentially, imposing a no-fly zone over Libya would be an act of war.
Most of our representatives in Washington D.C. seem to be quite ready to go to war in Libya, but it is another story entirely when it comes to the American people. A recent Rasmussen poll found that a whopping 67 percent of Americans do not want the U.S. to get more involved in the unrest going on in Arab countries and only 17 percent of Americans do want the U.S. to get more directly involved.
But the American people don't get to decide whether we go to war or not. Our leaders in Washington D.C. do. The USS Enterprise and other major warships are on their way to Libya, and U.S. forces throughout the Mediterranean are on high alert.
So could the U.S. really get involved in another war in the Middle East?
Well, if the U.S. and NATO choose to get involved they will do it without the approval of the rest of the world.
On Wednesday, the Arab League issued a statement which specifically rejected "any foreign interference within Libya on behalf of the opposition".
Not only that, but any military action by the UN will most likely be blocked by both China and Russia.
Russia's ambassador to NATO, Dmitry Rogozin, says that any military action against Libya without UN approval would be a violation of international law....
"If someone in Washington is seeking a blitzkrieg in Libya, it is a serious mistake because any use of military force outside the NATO responsibility zone will be considered a violation of international law."
But Libya is far from the only crisis point in the Middle East.
In fact, a much larger problem may be brewing in Saudi Arabia.
On Facebook, a "Day of Rage" is being hyped for March 11th. Other dates being promoted for "revolution" in Saudi Arabia include March 20th and March 21st.
But if Saudi Arabia sees the same kind of chaos that we have seen in other countries in the Middle East there is no telling how high the price of oil could go.
Could we see $125 oil?
Could we see $150 oil?
Could we see $200 oil?
Saudi Arabia exports more oil than anyone else in the world, so if their oil production gets interrupted it is going to have a dramatic impact on the global economy.
For example, are you ready to pay 5 dollars for a gallon of gasoline in the United States?
For decades, the entire globe has been blessed with very cheap oil and this has resulted in a massive economic boom.
But times are changing.
The economic situation over in Europe is already deteriorating and any additional bad news could plunge that entire continent into a major crisis. A recently released report from Ernst & Young is warning that if oil goes up to 150 dollars a barrel and it stays there, "at least" one eurozone country will default and the entire eurozone will be plunged back into recession.
A much higher price for oil would obviously not be good for the U.S. economy either. Do you remember what happened back in 2008? The price of oil hit a record high in June and then the entire financial system came unglued just a few months later.
But if we see a repeat of 2008 it may be a lot worse this time because the global financial system is now more unstable than ever.
The truth is that the entire world is still trying to recover from the last financial crisis. The Federal Reserve is pumping massive quantities of dollars into the U.S. economy in an attempt to stimulate it back to life, but so far it is not working too well.
The rest of the world does not appreciate all of this "money printing" and the inflation that this is causing is beginning to create massive imbalances on global financial markets.
The world is starting to lose faith in the U.S. dollar. Right now, approximately 85% of all foreign-exchange transactions in the world involve the U.S. dollar. Not only that, 60% of all the currency reserves in the world are in U.S. dollars. With the U.S. dollar rapidly becoming less stable, many are now wondering if it should continue to be used as the reserve currency of the world.
The truth is that if the U.S. dollar falls, it is going to create a tremendous amount of financial chaos in almost every nation on the globe.
Unfortunately, as I have written about so many times previously, the U.S. economy is dying. The U.S. government is absolutely drowning in debt, and leaders all over the planet are calling for the establishment of a new global reserve currency.
The days of the United States being the "economic engine of the planet" are rapidly coming to an end.
The U.S. economy is not ever going to fully "recover". In fact, the U.S. economy is basically "running on empty" at this point as Gerald Celente recently noted during an interview on RT television....
The entire U.S. economy was designed to operate on massive amounts of very cheap oil. Americans do more driving than anyone else in the world. Many of us are so lazy that we won't even walk to a store if it is on the other side of the parking lot.
If oil hits record levels in 2011, it is going to be a massive shock to the U.S. economic system. Any hopes for an "economic recovery" will be completely dashed.
In fact, if one wanted to "take down" the U.S. economy, driving up the price of oil would be a perfect way to do it.
And if one wanted to drive up the price of oil, a perfect way to do that would be to create all kinds of chaos in the Middle East.
So is all of this craziness that we are seeing in 2011 just a big coincidence or is there a reason why all of this is happening?
Please feel free to leave a comment with your opinion on the matter below....
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Until the philospohy that hold one man superior and another inferior is abandoned and totally destroyed - everywhere is war.
what a shame what a shame
for the day dat we where born
we never seen the right dollar here
only the count of fear we a see oh!
Bring back the money with the sign of the Lion money
Me say fe get back the money with the sign of the dragon money
dat we no use him no no
Bring back the money with the sign of the Lion money
Me say fe get back the money with the sign of the dragon money
for we no waaaant
to hear no more about your great sir francis dread
put us slave driver like wise
we no waaaant
to hear no more about your great long John Silver
dat na have drop to use the sufferes dem
Bring back the money with the sign of the Lion money
wat gone down can tell your friends dat i tell yu dat
i jus fe take back the money with the sign of the dragon money
dats (?)even fe feed the hungry belly pickney dem me say yu
Bring back the money with the sign of the Lion money
Me no waaant
to hear no more about your great sir francis dread
the old slave driver
we no waaaant
to hear no more about your great long John Silver
dat only help to colonialize our mind lord
Bring back the money with the sign of the Lion money
Lion dollars we want to see
Inna Jamdung
Take back the money with the sign of the dragon money
I am so tired to hear the sufferes dem a bawll
Bring back the money with the sign of the Lion money
The Lion dollars can't satisfy good wants and needs
Take back the money with the sign of the Dragon money
One sake one sake inna aluminum kind hehe!
Bring back the money with the sign of the Lion money
Clap me with the Lion but back way with the dragon
Me say Bring back the money with the sign of the Lion money
back way with the dragon inna dis ya time
The dragon must drop
Bring back the money with the sign of the Lion money
for we no waaaant
to hear no more about your great sir francis dread
we no waaaant
to hear no more about your dreadlock John Silver
(1) when you don't have an answer...you can default to three items...it is Geo. bush's fault, global warming or aliens. take your pick
(2) why the hell should we impose a no fly zone....why use our jets, our jet fuel ??? Put more of our kids at risk...so the Euroids can have oil ? Screw 'em. Let them do some heavy work for a change........we're broke
George Bush is an alien - he's a damn Yankee masquerading as a Texan. Seriously. Anybody ever seen him on a horse?
And it's his fault.
Ode to the Wisconsin Dims.....
Oooooooh.... Theeeeey
Ran through the briars and they ran through the brambles.
They ran through the bushes where a rabbit couldn't go.
They ran so fast, the hounds couldn't catch 'em.
Down the Mississippi to the Gulf of Mexico.
Stick that where the sun doesn't shine, Ms. Mother Jones. Some of us have been around this track before.
Finally, the democrats are leaning to use the tactics Republicans have always used. I endorse the use of any tactic to oppose the Republican whores of the elite to destroy the US middle class.
Notice the Lybian Rebels SCREAMING for BUSH to come to their aid?.
Bet the OBunster really liked that with his Hubris, at around 2 milllion.
... wait for it:
MISSION ACCOMPLISHED
RELEASE THE CRACKIN !!!!!
Release the Crackers! Erik Prince! Where are you now?!
Release the cracklin's!
Then release the Kraken, on Blankfein's head.
Not to nit pick... but I think its Kraken
Perhaps he was referring to the refining process of petroleum products. ;-)
lol, maybe we should ask him if its hydro-cracked or catalytically done. He looks more like a steam reformed kind to me. Lot of natural gas in that feedstock!
No grand conspiracy beyond the human tendency to live for the moment and be selfish.
We build complex systems and cultures around it, but at the core is the lust for mammon.
Not thinking about tomorrow, not thinking about your neighbor, and being willing to steal from the mouths of babes and the elderly whilst dressing it up in pretty clothing, fancy titles, and cultural columns of calcified cruelty are what build this chalk pantheon of pride.
Our Rome will fall certainly, but what will become of the nuclear weapons?
Another war. That should do wonders for the price of driving the Hummers to the mall for some more Chinese goods. America! What a country.
I used to do that too, but lately I simply cannot tear myself away from my round-the-clock vigil watching FOX, NBC and CBS while I breathlessly await breaking news of the latest manifestation of Charlie Sheen's mental breakdown. It is simply too engrossing and important to miss!
I think it's about time we talked about your Charlie Sheen habit... that can melt your face, you know
http://www.youtube.com/watch?v=wYuLjGQQ-jg
The World is NOT! running out of Oil... It is running out of Conventional / Lite Sweet Crude / Affordable Oil though... see video above.
Quoting JW n FL / GLP ^TrInIty^ / J.L. / J.E.W. / JackWagon (take your pick)
>> The World is NOT! running out of Oil... It is running out of Conventional / Lite Sweet Crude / Affordable Oil though.
Take a look at the "hubbert curve" even a "guns / ammo / preps / meds." fiend as yourself should understand, even by your own words. Oil is running out, and it's no co-incidence that the world reserve currency the Petro-Dollar is going the same way at the same time. Oil is no good to anyone if it is totally unaffordable (and I'm not talking about $5 gallon). Go back to the the fire sale at the other place.
http://www.youtube.com/watch?v=F-QA2rkpBSY
And the orchard is not running out of apples, it's just running out of the cheap'n'easy, low-hanging, fresh-and-beautiful ones. Get the long ladders and the peelers ready, because we just reached Peak Apples.
We are not out of oil but.......wouldn't it be interesting if,in the fairly near future, we found out that because the Sauds have been pumping so much water into Ghawar in the last decade, to keep production as high as possible, that Ghawar is now actually on a steep slope of decline and the Sauds can't continue as they have been? This possibility is not really very far fetched, if you ask me.
It's called pump and dump.
The NWO vampires just move on to the next zombie herd they've fattened to suck them dry.
Hey, could you explain to us the principle behind the Saudi's oil field management practices? Why do they pump sea water in?
To maximize the extraction of the replenishment of oil from upper mantle sources, if any. Squeezing the most out of what they have as soon as they get it.
Kind of like what you do with the wak the propaganda they feed you.
They made the Faustian bargain and are treading water (oil) on the ponzi scheme like everyone else. They are terminal under the business plan they have accepted and will be abandoned like an exploited dry husk once they have been sucked dry by the resource limiting vampires that pimp and abuse them.
Next phase. Put the corraled herd in NA on a limited diet.
You do know who you're working for don't you?
You have just demonstrated that you are a simple loon. Not someone that knows some stuff and has a pet theory, just a complete loon that has no grasp of reality.
Here is a gedanken:
Let us assume that abiotic oil is real. The mechanism should be uniform, i.e. Russia is no different from US etc.. Now given the vast endowment of hydrocarbons in North America, one would expect that the drilling to depths in NA would result in abiotic oil being found. Given the cost of drilling down, a company like Exxon could afford such an R&D project, after they routinely spend $250 million to drill a hole in the Gulf and elsewhere.
Given that Exxon has not publically claimed anything tell you something? Moreover, if they even thought there was a chance of success, why wouldn't they have done it?
Furthermore, lets assume that they *did* find oil way down? Do you think they are conspiring to cover it up? Anybody that was aware, and it is pretty hard to completely cover things up, would then go off and drill their very own hole and crush the oil market. No matter what Exxon paid them off, they would be able to gain far vaster riches by going their own way.
I just mentioned Exxon, there are whole slew of companies capable of doing this.
So it would appear that abiotic oil is not only scientifically crap, it also fails on every other rational test applied to it...
Do you think they are conspiring to cover it up?
Yes I do.
Anybody that was aware, and it is pretty hard to completely cover things up, would then go off and drill their very own hole and crush the oil market.
Big Oil, the CIA and the MIC have been inextricably intertwined since the Iranian coup that installed the Shah. He went off script and was removed and replaced with chaos and then replaced by controlled religious extremism. The vertical integration of these resource aggregators has only increased since then as has their power and direction. Oil is energy, energy is power, power is knowledge and thus knowledge must be controlled.
Only large mega surficial reserves such as the Alberta tar sands cannot be denied so they must be accepted into the current reserve calculation for North America. Those hydrocarbon resources are clearly apparent...sub-surface audits on government lands covered by environmentally sensitive areas, not so much.
I have to admit I enjoy these exchanges despite your insults. It helps me to further examine and test my ‘loony’ perspective.
In some ways I hope you’re right and that I am crazy because if this analysis is correct (and it is certainly not exclusively mine) the level of evil and malignant behavior to plan and execute such a model of Malthusian terror is truly psychotic. The expansion of the TSA, police state, fraud and destruction in the global banking system and the myriad of dots connecting to a real NWO planning to ruthlessly deal with just another ‘resource’, (i.e. humans) to be controlled by this power, says otherwise.
I saw a great quote recently: “Sometimes being paranoid is just being fully informed.”
Plan accordingly.
P.S. The science on abiotic oil is pretty much proven and accepted outside the infosphere of western oil exploitation. My response was to provide speculative political reasoning for the western myth.
Peace
V
Nothing wrong with being paranoid, be paranoid about the "Patriot Act" and shit like that...
But you are failing to see the forest for the trees if you think there is any conspiracy to not get the oil out. Think very carefully about how oil companies make money. It is not the oil price, it is the margins between cost and price...
You are telling me that all the majors are idiots and you have the one true way? That smacks of dementia.
Duh!
Excellent video. Rubin was dead on in his predictions.
Everyone should read this article, excellent build up to todays turmoil.
oil endgame now 6-12mths...
ilene you are totally correct re: 2008, there wasn't really a recovery just inflation driven crack up boom, the US govt has subsidised as much as they can to offset inflation. Oil is the tipping point, which Obama will not be able to do offset or subsidize. Like what the Saudis are doing - because the US doesn't produce oil...unless they invade a country that does.
Now as long as Bernanke prints and Obama tries to hold back widespead US inflation, deficits, oil will go upward. Geopolitical tensions increase = endgame.
according to lindsey williams, the elite will have oil go to $200, reneg on treasuries the arabs have, then open the oil fields in the states to gain from high priced oil. china will get their oil from russia, which will be paid for in yuan.
Lindsey Williams also said the floor of the Gulf of Mexica was spilting apart from the BP oil disaster and it was going to cause a 200 ft tsunami that was going to crash into Florida and kill 3 million people. He's a kook!
don't know who the F*** that guy is, probably doesn't trade in the markets.
thing is, middle east have created a put on oil, it won't go under 100 now, unless china crashes..that might happen in 2011.
US prints, middle east drops the oil % output - which means they can subsidize price inflation (the Saudis have already started doing this re: stimulus) imported from the US.
It's so messed up...war will be inevitable. meantime the oil trade is on
How you figuring a put?
metaphorically speaking, the oil Barron's drop the % on output and draw a line under a $100...kinda like the Bernanke and greenspan puts.
there is going to be a pingball bid on stocks and oil...till china goes nuts
It's kinda like Flubber ...... you throw a few things together and you get the mess this world is currently in. Mix over-population, with technological (or productivity) enhancements ........ corporations trying to keep their margins fat and happy, banks being creative rather than boring, politicians being politicians, 3rd world nations saying -- "Hey -- 3rd world my ass!" -- we want to suck out what's left in Mother Earth's tits.
You eventually realize, that innovation is bad for the job market and all that left is coffee and an odd assortment of pastries to keep the world happy. Face it --- the earth's over-populated and the blood-letting is beginning.
Yep. Good list.
As Bill Hicks would say 'Too many of ya...!'
And floods of refugees will come - mostly from crappy islamic countries.
Bangladesh has 127 million primitives living on a 2m above sea level, flood plain, and many bleeding heart liberals don't seem to see we don't have room for them.
Sadly the west is going to fill up with these men, mostly,well before the tree-huggers realise the new arrivals don't like gays, want sharia and won't sing kum-ba-ya.
The usa's invasion will slower as geography protects somewhat.
There are still a few "hard assets" out there that have actually came down in price and avalibility is back up, for now.
Brass, lead, copper, and gunpowder.
Winchester, Federal, CCI- all going UP 5-15% 5/1/11. The other majors raised prices 1/11.
Isn't it odd how the ammo prices got jacked sky high in 2007/2008 due to higher input costs...but when the bottom fell out of commodities beginning in mid 2008 the price never fell, even well into 09/10 when lower input costs were in play on current manufacture?
Ammo prices didn't fall in '08-'09 because all of you gun nuts were freaking out because Obama got elected.
Yet another 0bunghole worshipping jackass. You might as well kill off that last brain cell. It's not doing you any good
Silver has come down in "price"; and avilability is excellent. But, you do not understand this. woe unto you. But Silver now. at two to one margin if possible. Speak to me again in two years. These train wrecks take time.
Silver has come down in "price"; and avilability is excellent. But, you do not understand this. woe unto you. But Silver now. at two to one margin if possible. Speak to me again in two years. These train wrecks take time.
zuckerber and dorsey, could they be sleeper agents?
Obama better get some more of that black shoe polish to hide his gray hair.
And ye shall hear of wars & rumors of wars...For nation shall rise against nation, & kingdom against kingdom:" (Matthew 24:7)
100 M people killed in wars over just the last century
War, the ultimate population control by failed politicians and their corporate bankers
The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favor to the learned; but time and shit happeneth to them all.
You forgot to add " No new refineries since 1976, the ultimate oil price control by big oil and their
big oil funded greenie compatriots"