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Guest Post: From PetroDollar To PetroYuan – The Coming Proxy Wars

Tyler Durden's picture





 

Submitted by Golem XIV via Golem XIV Thoughts blog,

Why would the central bank of Nigeria decide to sell dollars and buy Yuan?

At first glance it might not seem the most interesting or pressing question for you to consider. But I think it is one of those little loose threads that if pulled upon carefully begins to unravel the hints and traces of a much larger story. But please be warned this is speculative.

Two days ago the Nigerian Central Bank announced it was going to increase the share of its foreign currency reserves held in Yuan from 2% at present, to up to 7%. To do this it was going to sell US Dollars. Now a 5% swing in anything financial is big. In our debt drunk times it’s difficult somethimes to remember that 2.15 billion dollars (which is what 5% comes to) is actually a great deal of money, even if it is less than a drop in America’s multi trillion dollar debt ocean. On the other hand even a 5% increase in Yuan would still leave 80% of Nigeria’s $43 billion worth of reserves in dollars.

BUT while it is small in raw financial terms I think it is significant in geopolitical terms.

Nigeria is Africa’s second largest oil and gas exporter. It holds as many dollars as it does because oil is sold in dollars. Nigeria gets paid in dollars which it then needs to recycle. This is the famous petrodollar in action. It is also a major reason the dollar is still the world’s major reserve currency and that in turn is why America can have such a monumental pile of debt and still (for now) be the  risk-off haven that institutional  investors run to when other currencies and markets become too risky and unstable.

What interest me is that prior to this announcement from Nigeria’s central bank, China has, for some years now, been working hard and succesully to buy exploitation rights in Nigeria’s oil fields. In 2009 The Wall Street Journal reported,

 Chinese companies have proposed investing $50 billion to buy 6 billion barrels of oil reserves in Nigeria, the African nation’s presidential adviser on energy said Tuesday.

A year later in 2010 the WSJ reported,

Nigeria and China have signed a tentative deal to build three oil refineries in the West African state at a cost of $23 billion, in a move to boost badly needed gasoline supply in Nigeria and to position China for more access to the country’s coveted high-quality oil reserves.

And just last year China extended a $1.1 billion loan in return for a reported agreement that oil exports to China would increase from around 20 000 barrels a day to 200 000 per day by 2015. This loan was on top of a range of development agreements betwen the two countries for various infrasctructure projects such a telecoms and railways.

Nigeria had, as of 2011, over 37 billion barrels of proven oil reserves. China is now one of its major trading partners. China wants Nigerian oil and my guess is that if it isn’t doing so already it is going to trade it entirely in Yuan. Such a move would mean Nigeria would need fewer dollars and more Yuan and the PetroYuan would begin to rise at the expense of the Petrodollar.

For some years now China has been making the Yuan a settlement currency. I have written about this a lot over the years. In 2012 I wrote a piece called “A new reserve currency to challenge the dollar – What’s really going on in the Straits of Hormuz.” China has created a series of bilateral settlement agreements with, among others, the EU, South Korea, Iran, India and Russia. All of these agreements by-pass the US dollar. If China now trades its oil in Yuan where will that leave the dollar?  Of course Saudi would never agree to such a thing, would it?

Now Its a long way from Nigeria’s 200 000 barerels a day to overthrowing the dollar as the premiere oil currency. But let’s face it the US has gone to war on more than one occasion recently in part because the country involved had been going to sell its oil in Euros. And the US is Europe’s friend, isn’t it?

The US hawks have always been afflicted with dominophobia – fear of falling dominoes. Somewhere in a room in the Pentagon or Langley, there is a huddle of spooks, military types, oil men and State department advisors all wondering how to prevent this new creeping menace. Because you cannot afford to be complacent you know. It starts in one country and if you don’t do something other’s will follow and before you know it the rich Western Africa oil bonanza is flowing into Yuan, to be followed by all those North African and Middle Eastern Arab Spring countries where the clean-cut boys are already having to ‘advise’ on the need to take a firm line with potentially anti-American Muslim Brotherhood types by  locking them up, shooting them and generally branding them as terrorists.

What would happen, someone will mention almost in a whisper, if Qatar were to triumph over Saudi and then cut a multi-lateral deal to sell its gas in Euros to Europe and in Yuan to China?

But to return from the overheated imaginations of the Virginia Hawks to some sort of reality, Nigeria is increasing its Yuan reserve at the expense of the dollar and is developing far closer ties to China than to the US. Which is why I think you will soon find the US dramatically increasing its involvement, both financial and military, in Angola.

Angola is going to be America’s answer to China’s Nigeria. And I think the signs are already there.

While in Nigeria Chinese companies are expanding, in Angola the big players are the Western Oil majors: Chevron/Texaco(US), Exxonmobil (US), BP (UK), ENI (Italy), Total (FR), Maersk (DK) and Statoil (NOR). There are others but these are the big players. Of these Total is probably the largest presence producing about a third of all Angola’s oil output. And Total has recently increased its presence. Of the others Chevron is one of the largest and is expanding aggressively.

Angola itself is busy selling off new concessions. 10 new blocks containing an estimated 7 billion barrels of oil, which is over half of all Angola’s proven reserves  are to be auctioned this year. Angola has recently edged ahead of Nigeria to be Africa’s largest oil exporter. If I’m correct I expect the Western nations/companies, led by the US and new best war-buddy, France to make sure the Chinese do not get a large share of the spoils.  One to watch.

As part of this new Western push, I expect to see China also restricted in any new oil fields around Sao Tome and Principe.  The big players to date are Chervon, Exxonmobil and Nigeria. The latter suggesting a way in for the Chinese that I think the Westerners will want to push shut.  To which end what I found interesting about recent events in Soa Tome and Principe is the visit there of Isabel dos Santos, the daughter of Angola’s President for life. I have written about her and her banking empire in The Eurofiscal Corruption Contest – The Portuguese entry.  Isobel is most often refered to as Africa’s or Angola’s most famous business woman or Africa’s richest woman (She’s a billionaire). Rarely does anyone from the press raise the question of how she became so vastly wealthy.

She made a visit to the islands and both she and Angola’s state companies have begun to invest heavily. Angolan companies now have a very commanding position in the island’s economy and Angola, even though its own people live in poverty, found the money to loan Sao Tome and Principe  $180 million which is half of the island’s GDP. Top that Beijing! The Islands are Portuguese speaking, the largest bank is Portuguese, and the islands also house a broadcast station for Voice of America.

I think taken together the signs are that the West, led by America, has in mind to try to contain or perhaps even confront Chinese expansion particularly as it concerns access to oil and gas in West and North Africa, and to rare earth minerals – but that’s another story. I don’t think there can be any doubt that America and Europe are looking at Chinese expansion and its hunger for resources and see a threat. The question is what will they do?  America is accustomed to being the hegemonic power and its hawks have proved over and over that they are are quite prepared for military confrontation. The question for them would be how? Invading countries who have – in reality – very little military or economic might is one thing, but directly confronting another superpower is another.  I think all sides would see direct and open military confrontation to be out of the question. Not just for military reasons but for global economic ones as well. They need to find ways of fighting that do not sink the world economy  - neither its flows of goods and trade , nor its flows of captail and debt. Which is why I wonder about the possibility of seeing an era of new proxy wars being faught out in tit-for-tat destabilization escalating up to protracted gorilla/civil wars.

In West Africa the  front line seems to run between Angola and Nigeria.  So who would like to play a game of destabilize your neighbour? There is already unrest about Chinese goods flooding Nigeria. How tempting might it be to think about fanning flames of unrest in already unstable Nigeria espeicially in the delta?

In return what would you have to do to re-ignite the lines of mistrust and division which blighted Angola through decades of civil war? Dos Santos and the MPLA may have been the Soviet proxy but he’s a capitalist now. So, how about a nice cold-war style proxy war?  I cannot bring myself to believe that no one at the Pentagon has dusted off the old plans for such conflict and set some analysts to working up some new ones with China scribbled in, in place of Russia.

Something is, I suspect, already afoot. One last pull on that little thread, one last detail that makes me wonder. Just last April (2013) the Israeli billionaire, Dan Gertler sold back to the government of the Democratic Republic of Congo, one of the  oil companies/exploration blocks he had bought from it, but for 300% more than he paid. Anti-corruption campaigners have been up in arms.

Two facts interest me . One, that the purchase was actually financed by Sanangol, the Angolan state oil company (the company from which $32 billion had gone missing. Missing billions: billionaire dos Santos… No connection obviously). The DRC is to pay Sanangol back from oil revenue. Until that time, of course, Sanangol calls the tune.  Two, that this oil block lies between the DRC and Angola in what was contested territory but has since been decreed a zone of cooperation.

Now this sale by Gertler could just be a bog standard pillage-Africa deal. And I might well be seeing things that just aren’t there, but why now? This sort of big money, that is connected to the top of the DRC government (how do you think Gertler was able to buy the concession at the price he did? And who do you think might be the, so far, hidden second beneficiary of Gertler’s oil company? The government minister who sold the concession to him in the first place,  maybe?) moves when its contacts suggest this is a better time to lock in profit than times to come.

All in all, if I were a religious man, I would be saying a prayer for the children of Nigeria and Angola.

A note on all this speculation and non-financial stuff.  I don’t usually write this much speculation but recently I have become more convinced that we are in a watershed in which everything around us, all the rules we are used to, all the lines on the map, are up for grabs and are changing around us. For me, finance is not separate from politics so we have to understand how they rub against one another.  I hope you will bear with me.

 


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Fri, 01/31/2014 - 21:04 | Link to Comment sixsigma cygnus...
sixsigma cygnusatratus's picture

"And just last year China extended a $1.1 billion loan in return for a reported agreement [with Nigeria] that oil exports to China would increase from around 20 000 barrels a day to 200 000 per day by 2015."

Uh, yeah I got that email too, but I didn't fall for it...

Fri, 01/31/2014 - 22:21 | Link to Comment National Blessing
National Blessing's picture

The dollar might suck.  But the yuan is even worse.  Out the frying pan and into the fire.  Balls.

Fri, 01/31/2014 - 22:28 | Link to Comment satoshi911
satoshi911's picture

RMB vs USD?

Diversification.

How many 'AAA' rated currency's?

SGD, CNY, NOK, CHF, ... not many I don't think CNY is 'AAA', but the other 3 are,...

Nobody is saying to put your wealth, in CNY(RMB), and you can't even if you wanted to.

The problem with RMB is its like BTC, you can enter, but can't exit, the CHINESE are terrified that if they let the RMB float and somebody does a naked short or massive SELL that they lose control, thus there are massive capital controls on RMB ( 20,000/day ... )

*

IMHO those that talk about RMB being useful are talking shit.

*

Live from Ukraine(tm).

Sat, 02/01/2014 - 03:24 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Debt piles, all of them. The only one that is really AAA, where assets & liabilities ALWAYS match, is the cleanest CLEAN shirt: symbol XBT

Sat, 02/01/2014 - 07:55 | Link to Comment negative rates
negative rates's picture

You mean that same bank that tells you they have your money and want to give it back to you, then once you accept, they steal the rest of your money, THAT BANK?

Sat, 02/01/2014 - 00:02 | Link to Comment q99x2
q99x2's picture

Fuck all the wars. Trade oil in the PetroBitCoin.

Sat, 02/01/2014 - 11:41 | Link to Comment BennyBoy
BennyBoy's picture

We begin bombing in 3 2 1.....Just like in Iraq

Fri, 01/31/2014 - 21:04 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Yuan dominos and containment, bitchez.  I hope we get a new Doors or other good band for the troops who will die for bankers.  Again.  

Fri, 01/31/2014 - 21:26 | Link to Comment One of We
One of We's picture

Bullish MIC(USA congress), agent orange(DOW/MON), and body bags (http://www.usabodybags.com/)

Fri, 01/31/2014 - 21:33 | Link to Comment LetThemEatRand
LetThemEatRand's picture

The good thing about Africa is that you don't need Agent Orange.  You can turn sand to glass.  With sufficient heat.  And then it won't mess up the sensitive electronics.  Definitely long body bags.

Fri, 01/31/2014 - 21:51 | Link to Comment One of We
One of We's picture

Glass is for northern Africa, I'm thinking central/SE Africa is where the latest biggest USA-instigated mass atrocity will occur.  Expecting a few nuke plants to be built on both sides of the continent to more efficiently turn natgas into fertilizer and HO(Herbicide Orange) to first defoliate and then infest with GMO crops that the starving Africans(and probably everyone else by then) "need" so much.....if that doesn't kill off enough useless eaters then they Fukushima Africa....

Fri, 01/31/2014 - 22:52 | Link to Comment satoshi911
satoshi911's picture

OVer 50% HIV in AFRICA, everyone is already dead.

Another problem in NORTH AFRICA, is water, ... and the NILE is already largely decimated.

But yes, 'maybe' somebody could make nuclear salt-water plants, but why africa, the entire mediterrean basin is a desert, .. why not foliate Israel? First?

 

Sat, 02/01/2014 - 10:55 | Link to Comment robobbob
robobbob's picture

water? like most resources, its availabilty owes as much to propaganda and ownership rights as it does to its actual existance.

 

http://www.dailymail.co.uk/sciencetech/article-2133339/Massive-undergrou...

Sat, 02/01/2014 - 11:59 | Link to Comment Spastica Rex
Spastica Rex's picture

I knew there were no hard resource limits.

I wouldn't be surprised if there was a slick of light sweet crude floating on that underground aquifer, too.

Sat, 02/01/2014 - 16:41 | Link to Comment DosZap
DosZap's picture

The good thing about Africa is that you don't need Agent Orange.  You can turn sand to glass.  With sufficient heat.  And then it won't mess up the sensitive electronics.  Definitely long body bags.

 

With that kind of heat, no need for body bags, ashes are hell to sack bowin in the wind.

Fri, 01/31/2014 - 21:43 | Link to Comment Yen Cross
Yen Cross's picture

 LTER, shutup and listen. 

 African /Baltic pipelines.

Fri, 01/31/2014 - 21:47 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Russia is also a good existential threat that requires constant war posturing.  The MIC really misses the Soviet Union, but Russia will do.

Sat, 02/01/2014 - 10:39 | Link to Comment Icewater Enema
Icewater Enema's picture

YC,

This is late but thanks for the link. Fascinating, gives some background to all the concern over Ukraine and Kiev riots lately. This is why I read ZH & comments.

Fri, 01/31/2014 - 21:06 | Link to Comment ArrestBobRubin
ArrestBobRubin's picture

Oh Snap, someone wants out of the "Western" banking "system". I guess this means the next "Hitler" Who Must Be Stopped will be.... a Nigerian?

Fri, 01/31/2014 - 21:10 | Link to Comment Atomizer
Atomizer's picture

Mr. Janet Yellon has been past the blaming economy baton.

Fri, 01/31/2014 - 21:50 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

In general, what is wrong with this article is the fundamental fact that Shell, Exxon and Chevron are all in Nigeria -- and they can't hold their production up.  If there were huge oil opportunities in these "proven reserves", those three would have been all over them 5-10 years ago as their internal corporate peaks were manifesting themselves.

When you are inclined to think about things monetary, stop.  Think instead about what oil-relevant reality is underneath whatever matter you are observing, because oil is all the matters.

Sat, 02/01/2014 - 00:56 | Link to Comment Flakmeister
Flakmeister's picture

Moreover, they are fighting a loosing battle against crude pirates which also trashes the infrastructure... Very costly game of whack a mole...

The locals will prevail, they have nothing to lose....

Geopolitically, what may be playing a role is that US refining capacity for light sweet crude is satisfied by other means, US imports of Nigerian oil are now negligible and from a quality perspective have been replaced by Bakken flows. Therefore, allowing the Chinese a guarentee of some supply is at small real cost...

As you can see, the US only ever imported at most 2% of Nigerian production, or at most 40 mbpd. Imports are currently deminimus 

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUSNI1&f=M

http://www.eia.gov/countries/country-data.cfm?fips=ni

Sat, 02/01/2014 - 10:31 | Link to Comment DaveyJones
DaveyJones's picture

just because your are crude pirate does not mean you are crude pirate

Sat, 02/01/2014 - 07:05 | Link to Comment falak pema
falak pema's picture

One aspect that escapes this writer is the emergence of local African Entrepreneurs who are now patriotic in mindset and not interested in being stooges to western plays organised around the Seven Sisters of Exxon and Shell and their french counterparts in Françafrique and Areva nuclear plays.

Take a look at this Nigerian Oligarch. He will have a say in things in the coming years and he may be representative of a Madiba/Mandela strain that started in Congo with Lumumba.

The age of local African voices not surrogate to Western interests, capable of playing off China/India vs Euro-America hegemony should also be considered. It is in its infant stage this awareness, from Somalia to Nigeria, but its coming.

A force to be reckoned with Africa rising as patriotic instincts not surrogates to "Allah Boko Haram or Commie Comrade slang".

 Aliko Dangote remember his name :   Aliko Dangote - Forbes

Does Warren Buffet OWN this guy???

My personal feeling is the Western Petro oligarchies will be playing a defensive game given their past scams all over the world.

The Age of Shell and Exxon may now be constrained more and more by National behemoths and by smaller companies and by local Oligarchs like this guy.

Just look at Shells FIRESALE to a tune of 30 billion $  that they now undertake to divest of "non strategic" assets. Total is also feeling the pinch, as its proven reserves diminish.

They are ALL desperate to maintain high profiles but are finding that the likes of Saud Aramco, Chineses national oil behemoths, Gazprom et al (now the emerging association between national oil companies of Iran/Iraq rapprochement) will constrain the ex-Seven Sisters to more dangerous and risky ROI plays.

Its a bitch when a Pax Americana reversal under debt and past moral hazard consequences AFFECT the fire power of these Oil dinosaurs, now on the defensive world wide. 

The more you itch the more you scratch! 

Sat, 02/01/2014 - 10:34 | Link to Comment DaveyJones
DaveyJones's picture

"One aspect that escapes this writer is the emergence of local African Entrepreneurs who are now patriotic in mindset and not interested in being stooges to western plays"

that disease seems to be spreading.

 

Sat, 02/01/2014 - 12:18 | Link to Comment Rafferty
Rafferty's picture

African Entrepreneurs??  That's an oxymoron, like German comedians or Greek taxpayers.

 

Any African who attains any sort of power will loot and steal for himself first and then for his clan second. 

Fri, 01/31/2014 - 21:12 | Link to Comment Seize Mars
Seize Mars's picture

Sorry I stopped reading at "gorilla wars."

LOL.

Moron

Fri, 01/31/2014 - 21:20 | Link to Comment sixsigma cygnus...
sixsigma cygnusatratus's picture

"...new proxy wars being faught..."

How much does it cost to hire a proofreader? 

Fri, 01/31/2014 - 21:23 | Link to Comment Atomizer
Atomizer's picture

Did you mean Wall Street Urinal reporting? LOL

Moron

Fri, 01/31/2014 - 21:55 | Link to Comment vulcanraven
vulcanraven's picture

I see what the author did there...

Sat, 02/01/2014 - 08:15 | Link to Comment TPTB_r_TBTF
TPTB_r_TBTF's picture

yeah, calling them "Jungle-Bunny Wars" would have caused an outrage.

 

But by labeling them "gorilla wars", the authour can claim it to be a slip up.

Fri, 01/31/2014 - 22:05 | Link to Comment PN7
PN7's picture

The author got distacted.  Was thinking of the NBA.

Sat, 02/01/2014 - 09:47 | Link to Comment RafterManFMJ
RafterManFMJ's picture

The last gorilla war I fought in, I got poo in my hair.

Sat, 02/01/2014 - 12:23 | Link to Comment Rafferty
Rafferty's picture

Well, he is talking about Africa after all.  But in all honesty, how can you take seriously a commentator who'd write something as gross as that?

Fri, 01/31/2014 - 21:16 | Link to Comment Redhotfill
Redhotfill's picture

I guess this would bring new meaning to the popular Nigerian phrase,  "I go chop your (petro) dollar!"  

https://www.youtube.com/watch?v=6tv8LSMVVi8

Fri, 01/31/2014 - 21:16 | Link to Comment One of We
One of We's picture

Drill away but can we leave at least one continent free of nuclear paraphenalia just in case Fuku turns out to be the canary in the coal mine for the rest of the planet.

Fri, 01/31/2014 - 21:25 | Link to Comment Atomizer
Atomizer's picture

Her mushroom cloud haircut will threaten global fuck sticks who don’t want participate in ObamaCare (ACA). Doesn’t make sense now, you’ll understand in future.

Fri, 01/31/2014 - 21:20 | Link to Comment Smuckers
Smuckers's picture

You'll know it's real when those dead prince Nigerian email scams are being denominated in yuan.

Fri, 01/31/2014 - 21:26 | Link to Comment falconflight
falconflight's picture

Yeah, no shyt.

Fri, 01/31/2014 - 21:32 | Link to Comment williambanzai7
williambanzai7's picture

Fri, 01/31/2014 - 21:35 | Link to Comment Yen Cross
Yen Cross's picture

  Billy!  Every piece of art you draw, Exemplifies personal freedom...

Fri, 01/31/2014 - 21:31 | Link to Comment Yen Cross
Yen Cross's picture

  Everyone's tempestuous<> Can't we all get along?

  MOAR part time jobs, and lower CPI says we're "XAU"...

Fri, 01/31/2014 - 21:33 | Link to Comment satoshi911
satoshi911's picture

Africa is what we in this business call a 'LAB',  most of the fascism in the world and the police state business has been going on for 30+ years.

Micro-Payments have been doing well in Africa for 5+ years, ...going to a RMB based micro-payment system, tests well; also with the  dry run's are done in the most criminally corrupt place on earth, you know they'll be rock solid in the main-stream.

*

Africa is an IMF Laboratory for RMB micropayment settlement.

Well there be a panic when it expands outside of Africa? I think so, ... by that I mean the MSM will create a panic of interest so that every body wants to  jump in,... there just has to be a get rich quick aspect.

If I were a Nigerian hustler, I would be selling this as the 'next bitcoin' to morons in the west.

 

Sat, 02/01/2014 - 12:26 | Link to Comment Rafferty
Rafferty's picture

"If I were a Nigerian hustler"

 

Is there any other kind of Nigerian?

Fri, 01/31/2014 - 21:33 | Link to Comment Atomizer
Atomizer's picture

African silk road path to renewed nigger slave wages. They sit in Europe, Brussels.

Fri, 01/31/2014 - 21:39 | Link to Comment Implicit simplicit
Implicit simplicit's picture

Africa, the new middle east. The spies from the us and china are jockeying for position, and the loser is ... Africa after multple civil conflicts are started., and millions of poor people die. Business as usual.

Fri, 01/31/2014 - 21:44 | Link to Comment satoshi911
satoshi911's picture

If you actually traveled in this country, you wouldn't say that.

Africa is the most rotten poor country on earth.

Long ago I summed up Africa on one of my many safari's.

"Africa is a nation of humans who live under rocks by day, where their only wealth is the dirt on their naked body's. At dusk and dawn they dig up roots and eat them. A mud pools they get on all fours like animals and slurp MUD-WATER".

Africa  is what it is, the poorest place on earth, and human beings by majority live worse than an ASIAN dog.

*

Toss in one further important note, over 50% have HIV infection, FT DETRICK long ago created the HIV virus, and infected Africa. I predict that all black men on the continent are extinct by 2030.

 

 

Fri, 01/31/2014 - 21:46 | Link to Comment akak
akak's picture

Apparently you have never looked at a globe nor a world map, as Africa is a continent, NOT a country.

Fri, 01/31/2014 - 21:49 | Link to Comment Yen Cross
Yen Cross's picture

  Hey AKAK I got this one!

Fri, 01/31/2014 - 21:50 | Link to Comment akak
akak's picture

Have at it Yen!

I just don't have the patience to do a proper job of it today.

Fri, 01/31/2014 - 21:54 | Link to Comment Yen Cross
Yen Cross's picture

 Thanks Akak. You're #1 forever though.

Fri, 01/31/2014 - 22:08 | Link to Comment satoshi911
satoshi911's picture

Goldman Sachs houses the biggest cyber bot army on earth to fill the internet with bullshit.

Funny the biggest Goldman-Sachs offices are Salt-Lake (NSA), Bangalore, and NYC.

Funny that cmd&control is NYC, spying SLC, and BOTSHIT is Bangalore.

Goldman Sachs a Nazi empire, that only a Nazi mother could love.

 

Fri, 01/31/2014 - 21:56 | Link to Comment satoshi911
satoshi911's picture

If you actually traveled in AFRICA, you would know that the locals don't see the boundary's. ... All these country's are western lines in the sand.

Crossing the country's in Africa, doesn't even merit signage, its just endless dirt tracks in every direction.

That's why I'll go either way talk continent, or country,... the west divided the place up into many places, but GEOLOGY is really how it should be divided.

Fri, 01/31/2014 - 22:36 | Link to Comment Ness.
Ness.'s picture

Did you see any Lions on your Safari to AFRICA?  Did they accept Bitcoins?

Fri, 01/31/2014 - 22:48 | Link to Comment satoshi911
satoshi911's picture

You ask, and I answer.

In Africa, they have 'game parks', or national parks as we would call them in the USA.

In Africa, the Parks are an oasis, of how things used to be, just outside the parks everything is stark desert, inside the park's is lush vegetation trees and animals.

Yes, there are lions, but your not allowed to leave a vehicle, the animals aren't smart enough to know your food in a vehicle, but on foot a human lasts about 1 second in Africa, unless your a bushman.

I always take a private 'land cruiser' and drive, you can go on the tracks on a motorcycle, but it wouldn't be safe on a motorcycle in the bush,

A topless rig is ok, your still safe, but the trees and bush have these needles that rip your skin off, so I like to have a hard-top.

*

Lions and BITCOIN, ... poor people want food, and clean water.

I have story, ... once in a village I gave a kid a bottle of water, he looked at me ( I speak SWAHILI, its an easy language to learn ) and said "I have never seen water like this", later I found out that he had never had water anywhere other from the ditch, to him water is brown and muddy. A few day later I saw the kid and bottle was only down a few inches,... he was pulling the cap and just getting his tongue wet and putting the cap back on.

In Africa there is no garbage all cans and bottles become art or weapons.

They take bottle cap's and soda cans  and make spears and knives.

Yes, there are lions, and yes they are everywhere,

I meet also ADD that your not allow in a PARK, without an armed guard 24/7, ... and your really not allowed to walk around.

It's about $25/day fee to be in a PARK last time I was there,

*

Lastly, outside of the parks where HUMANS freely roam, there is nothing, no plants, ... no animals, ... of course the LOCALS hate the parks, they see them as food going to waste, but if it weren't for the PARKS all life and plants in Africa would be long gone.

 

Fri, 01/31/2014 - 23:10 | Link to Comment Ness.
Ness.'s picture

I was just being a smartass <Friday's will do that>.  I appreciate your honest reply to my dickhead post.  I hiked Kilimanjaro in the early 00's and loved it, changed my life forever.  I've been hiking anything and everything I can since.  I agree, outside of the tourist $$ supporting the parks, my grandkids would only see the real Africa on re-runs on the 'TeeVee'.  The locals despise the raping of both their land and their dignity.  Sad.

I respectfully yield.  Carry on.

 

 

Fri, 01/31/2014 - 21:57 | Link to Comment Yen Cross
Yen Cross's picture

 Blobbing river pig farmer.  Denialism ghost.

  Chinism capitalism loving, turd rotting in hell!

Fri, 01/31/2014 - 22:37 | Link to Comment Baldrick
Baldrick's picture

i loled..

Fri, 01/31/2014 - 21:58 | Link to Comment Tinky
Tinky's picture

Given that example, satoshi, please do us all a favor and spare us any further summaries in the future.

Sat, 02/01/2014 - 10:40 | Link to Comment robobbob
robobbob's picture

I don't know why you're getting so many red arrows. your description may be un PC and over generalized, but not entirely off the mark. I know people want to be all enlightened and are deathly afraid of being called racists, but aside from a handful of bright spots, what you said is true. The fact that Euro-elites, bankers, and multinationals have done all they can to keep it in that state is another discussion.

Curious why you finger the us? special projects could have just as easily come out of europe, south africa or a certain little place on the eastern mediterranian coast.

Sat, 02/01/2014 - 20:17 | Link to Comment CultiVader
CultiVader's picture

you sent that piece of "country" nonsense twice and didnt catch it?  You write some interesting stuff and appear to have a vast knowledge of things. So why is your grammar often so strikingly off and you dont catch simple slips in your writing?   You reek of something untrustworthy.

Fri, 01/31/2014 - 21:40 | Link to Comment satoshi911
satoshi911's picture

CHINA USA GOLDMAN-SACHS are two asshole country's sharing a common GoldmanSachs Rectum

I think taken together the signs are that the West, led by America, has in mind to try to contain or perhaps even confront Chinese expansion particularly as it concerns access to oil and gas in West and North Africa, and to rare earth minerals – but that’s another story.

 

[ All one has to do is go travel in AFRICA, and you will see that the USA has bases all over the continent. ]

I don’t think there can be any doubt that America and Europe are looking at Chinese expansion and its hunger for resources and see a threat.

[ The issue is INVESTMENT, while the USA has bases they don't invest a nickel. Me thinks that the presence of US bases that the USA could take anything anytime they want, once the investor has fattened the PIG. ]

The question is what will they do?  America is accustomed to being the hegemonic power and its hawks have proved over and over that they are are quite prepared for military confrontation. The question for them would be how?

[ The USA pretty much walked away from everything on earth, except Middle East Oil, that said there are still 1,000's of bases that are manned, but never mentioned in public. ]

*

I always say that the USA-CHINA are now married, and Goldman-Sachs was the minister of the marriage, that the USA will be the BULLY to keep the GOLDMAN-SACHS marriage INTACT.

Fri, 01/31/2014 - 21:47 | Link to Comment Yen Cross
Yen Cross's picture

 So you're the irrelevant "YUAN" dipshit?

Fri, 01/31/2014 - 21:45 | Link to Comment logicalman
logicalman's picture

I guess when god wants to fuck with the inhabitants of a planet he just puts oil under its surface.

I'm an atheist, to be clear, but I suppose I could be wrong!

Sat, 02/01/2014 - 10:37 | Link to Comment DaveyJones
DaveyJones's picture

 when god wants to fuck with the inhabitants of a planet he just puts man over its surface

Fri, 01/31/2014 - 21:50 | Link to Comment satoshi911
satoshi911's picture

Fort Detrick /?di?tr?k/ is a United States Army Medical Command .... a claim that Fort Detrick was the site where the United States government "invented" HIV.

*

HIV was engineered in the 1960's, Leukemia in monkeys transferred to pigs, and introduced in HAITI, and transferred to Africa.

*

Never fear about Africa, it will most likely be an ASIAN continent by 2050.

The USA made a deal a long time ago with CHINA,

USA: Provides security

CHINA: Provides investment

*

The UN (IMF) under UNO control and world-health, was actually first to report a paper in the early 1960's of the possibility of creating a sexually transmitted strain of Leukemia. Any student of this shit knows that the  CIA oversees the antidote for this reason, its always been a UN-IMF Military tool.

*

Sorry guy's but if we're going to talk about AFRICA, then we need to view the big picture and GOLDMAN-SACHS long term plan to CULL all black men in Africa.


Sat, 02/01/2014 - 11:46 | Link to Comment Flakmeister
Flakmeister's picture

My, what a fertile imagination...

So tell us how NASA faked the moon landings and how Global Warming is a hoax...

Fri, 01/31/2014 - 21:54 | Link to Comment Billy Shears
Billy Shears's picture

Decent article, and in all honesty I didn't finish it before commenting, but China is definitely going to FAIL along with a slew of others, including of course the US.

Fri, 01/31/2014 - 22:00 | Link to Comment satoshi911
satoshi911's picture

ELYSIUM is On Earth - Goldman Sachs may admit you, if you bought an 'E' Ticket

Nairobi has the best weather on earth, at 2km in elevation, and on the equator, its a pleasant 70F 24/7/365, the only problem is poverty and blacks.

The USA/CHINA (IMF-GOLDMAN SACHS) 50 years ago unleashed HIV to exterminate all blacks in Africa.

Someday NAIROBI will be ELIYSIUM for ELITE WHITE & CHINESE.

Anybody that doesn't see this coming, is a blind fool.

*

I wanna say one more thing about AFRICA, no where else on earth when you look to the sky at night, can you see the star's.

When you look you see the constellations; you see the horse, you see all, to look at the star's at night in AFRICA, you see what men saw 4,000 years ago.

Sat, 02/01/2014 - 10:42 | Link to Comment DaveyJones
DaveyJones's picture

"the only problem is poverty and blacks"

here on this continent, the only problem is absurd wealth and old white guys 

Sat, 02/01/2014 - 16:05 | Link to Comment Flakmeister
Flakmeister's picture

Actually the night sky looked slightly different 4,000 years (precession)...

So why is there no major Astronomical Observatory that I am aware of on the continent?

Sat, 02/01/2014 - 18:13 | Link to Comment tyrone
tyrone's picture

WTF does Nairobi have to do with either Nigeria or Angola??  FYI, Nairobi is in Kenya on the EAST side of Africa.  Nigeria and Angola are both on the WEST side of Africa.  More than a thousand miles apart.  

 

might want to bone up on your geography, stupid. 

Fri, 01/31/2014 - 22:20 | Link to Comment Jack Burton
Jack Burton's picture

Isn't it logical to sell oil to China and get Yuan in return, then simply use the Yuan in your account, in a Chinese Bank, to pay the bill of export on a whole shit load of consumer goods to stock Nigeria's stores? My point is, why do China and Nigera need to let the USA take a big cut off secondary financial gain from a transaction where China buys Nigerian oil and Nigeria buys conusmer goods made in China.

Personally, were I Chinese or Nigerian, I would tell Bernanke and his crowd to go fuck themselves. Or perhaps I am being too simple about this, and the dollar really is a huge advantage for everyone to settle all international trade deals in. But my mind tells me, there is no fucking advantage in this for anyone but the US Government.

Fri, 01/31/2014 - 22:34 | Link to Comment satoshi911
satoshi911's picture

Today Africa, ... tomorrow the Arabian Pennninsula, ... then it gets interesting.

The chinese can and will buy Persia and Arabia.

The USA model is to steal by force, the ASIAN model is to purchase.

*

Best of all the Chinese have hired the USA to be the COPS, its all a done deal courtesy of Goldman-Sachs.

The USA is happy to be the worlds policeman, but what would one expect from a failed prison colony?

Sat, 02/01/2014 - 10:42 | Link to Comment DaveyJones
DaveyJones's picture

"The USA model is to steal by force, the ASIAN model is to purchase."

like most things, it depends on the moment is history

Fri, 01/31/2014 - 22:32 | Link to Comment Pickleton
Pickleton's picture

As to the question, Why would the central bank of Nigeria decide to sell dollars and buy Yuan?

 

So they can bug the shit out of the chinese to save their fucking prince from whatever he's into this week.

Fri, 01/31/2014 - 22:37 | Link to Comment satoshi911
satoshi911's picture

The Chinese have a far better relationship and respect for MUSLIM than the USA.

There are mosques all over ASIA, and nobody disses them or mis-treats Muslim.

Only in the USA are they treated with disrespect.

IMHO its only a matter of time that the CHINESE step into MUSLIM OIL country's and show them some R.E.S.P.E.C.T

*

RESPECT and MONEY (RMB/CNY) talks and bullshit(USA) walks... This is the future.

Fri, 01/31/2014 - 22:48 | Link to Comment Pickleton
Pickleton's picture

Umm, I'm pretty sure China has plenty o clashes with their Uighur muslim population. 

And just who was it that made the middle east wealthy off of oil money?  It sure as hell wasn't the chinese and didn't have shit to do with the RMB/CNY

The chiniese only respect one thing.  FORCE.  Muslim's only care about one thing ALLAH.  well two.  Camel humping. 

And when the Chinese do step into MUSLIM OIL countries, they're going to end up with the same problems the USA is ahving with them. 

Fri, 01/31/2014 - 22:49 | Link to Comment Pickleton
Pickleton's picture

Umm, I'm pretty sure China has plenty o clashes with their Uighur muslim population. 

And just who was it that made the middle east wealthy off of oil money?  It sure as hell wasn't the chinese and didn't have shit to do with the RMB/CNY

The chiniese only respect one thing.  FORCE.  Muslim's only care about one thing ALLAH.  well two.  beating the shit out of their women.  Well three.  camel humping.

And when the Chinese do step into MUSLIM OIL countries, they're going to end up with the same problems the USA is having with them. 

Fri, 01/31/2014 - 23:00 | Link to Comment satoshi911
satoshi911's picture

The CHINESE are smart, they will send MUSLIM-CHINESE to do the business, and work.

There are millions of MUSLIM CHINESE, and they are kind, generous, non-drinking, non smoking and loving people.

*

Too bad the USA had to send GOLDMAN-SACHS assholes instead of Chinese Muslim, then history might have ended differently.

*

Lastly, talking about CAMEL HUMPING? Largely a myth, but if you go to google and type "DOG FUCKING TACOMA" you will find 10's of 1,000's of videos of guys fucking animals. In the west beastiality is mainstream, in the ISLAM world its only a myth.

Sat, 02/01/2014 - 08:00 | Link to Comment TPTB_r_TBTF
TPTB_r_TBTF's picture

Muslims rape their boys,

because they donT want to defile their girls.

 

Edit:  unless they married the little girl.

Sat, 02/01/2014 - 10:04 | Link to Comment Zadok
Zadok's picture

I don't know about camel, too high, but sheep shagging is VERY mainstream.

Something about nothing new under the sun...

Don't lie...

Edit: BTW Satoshi, you write like a troll.

Sat, 02/01/2014 - 16:07 | Link to Comment Flakmeister
Flakmeister's picture

No, he writes like an emotionally stunted teenager raised in an intellectual vacuum mixed in with a dose of bigotry...

Sun, 02/02/2014 - 23:46 | Link to Comment Zadok
Zadok's picture

Ok, you got me there, that too.

Fri, 01/31/2014 - 23:00 | Link to Comment satoshi911
satoshi911's picture

The CHINESE only care about one thing, MAKING MONEY. WEALTH.

*

The USA only cares about one thing. Death.

You might not know, but in ASIA the white man is the symbol of death.

Sat, 02/01/2014 - 11:55 | Link to Comment Flakmeister
Flakmeister's picture

Chinatown in Victoria is a neat place. It might be the smallest Chinatown with the biggest gate...

Check out Fan Tan Alley when you are in town...

Sat, 02/01/2014 - 01:09 | Link to Comment The Shodge
The Shodge's picture

That's because the Chinese are indifferent towards religion. Anyone who is not indifferent will find that islam is a retarded totalitarian system presenting itself as a wannabe religion. Of course then it becomes a challenge for any normal person to show 'respect'. You can't really blame the US for that. Buddhists, Hindu's, Christians and atheists worldwide struggle with respecting this idiotic believe system.

Sat, 02/01/2014 - 03:31 | Link to Comment the tower
the tower's picture

If you think that you are governed by an invisible power and have conversations with it then you're jst a fucking nutcase. Any religion is idiotic and dangerous. Religion is a mental disease and I can't wait for the day when there is a pill to cure it.

 

Sat, 02/01/2014 - 10:50 | Link to Comment robobbob
robobbob's picture

not too keen on falun gong. tends to get you sent to a camp.

Sat, 02/01/2014 - 00:25 | Link to Comment FredFlintstone
FredFlintstone's picture

Name 3 people you would like to have dinner with: Jesus, Albert Einstein and Satoshi911.

Sat, 02/01/2014 - 11:56 | Link to Comment Flakmeister
Flakmeister's picture

Yeah, good idea to have at least one guest there you could understand....

\facepalm

Sat, 02/01/2014 - 03:08 | Link to Comment gwar5
gwar5's picture

What a titillating question.

I go with Mary Ann from Gilligan's Island.... Jeanie from I Dream of Jeanie.... and Betty Rubble so I can tell her how to drive that car! Dinner is for the little head. Serious talk, something else!  

Seriously though, Jesus; but  then I wouldn't be able to choose 2 more among: Newton, Einstein, Sun Tzu, Voltaire, Moses, Socrates, Swedenbourg, Da vinci, Goethe. So I'll just see who shows up.

 

 

Sat, 02/01/2014 - 09:32 | Link to Comment Took Red Pill
Took Red Pill's picture

Tyler (does that count as more than one?)

Sat, 02/01/2014 - 02:41 | Link to Comment Kina
Kina's picture

China is happy with religion so long as they control it...ie State chosen ministers.

Sat, 02/01/2014 - 02:44 | Link to Comment Kina
Kina's picture

The US fortunes pegged to the House of Saud.

 

Is why the Sauds got so butt hurt when Obama wouldn't start a war with Syria.

Sat, 02/01/2014 - 02:44 | Link to Comment Kina
Kina's picture

NOw I wonder if China and Russia will play the US game and fund dissent and rebellion against Saud.

Sat, 02/01/2014 - 12:43 | Link to Comment Flakmeister
Flakmeister's picture

The Russians have been doing that for 60 years with little sucess...

As bad as doing business with the US is, Russia is even worse and everyone knows it...

Sat, 02/01/2014 - 02:46 | Link to Comment smacker
smacker's picture

The USG could pick off offenders one by one if they dared to use a currency for trade other than USD (eg: Iraq, Libya). But it becomes more difficult when lots of countries begin doing it, step by step. That is what we see happening now. Brazil, UK, EU and many others including Nigeria are all doing Yuan swap deals with China.

Short of bombing every one of these offenders, the USG has little choice but to accept that the USD is in decline and will eventually go the way of all previous empire currencies.

At the same time, all these countries have to reflect on the sheer amount of USG debt that is held around the world and the possibility of the USG defaulting. All parties have to play this game very carefully.

Sat, 02/01/2014 - 02:52 | Link to Comment gwar5
gwar5's picture

Petrodollar vs PetroYuan is the USDs Waterloo.  (And the Rothschilds will have the inside information, again)

 

 

Sat, 02/01/2014 - 03:15 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

America can hit two birds (of unspecified color/plumage) with one Blackstone, by having the many unemployed/EBTs from the inner cities work in those oil fields, and have them paid in dollars.

Young spook/magician taps his African Marauder's Map and mutters: "I solemnly swear that I'm up to no fucking good".

Sat, 02/01/2014 - 05:35 | Link to Comment TheCosmicTaco
TheCosmicTaco's picture

Hard to believe some Nigerian government minister hasn't stolen that alleged $43 billion in forex reserves yet. I want a full audit done before I'm believing this Harry Potter bullshit number...

And wouldn't it be funny if Bitcoin turned out to be a 419 scam...

Sat, 02/01/2014 - 05:53 | Link to Comment ebworthen
ebworthen's picture

Because China's giving them a better deal?

Sat, 02/01/2014 - 09:24 | Link to Comment deerhunter
deerhunter's picture

the only reason the FRN's in your pocket buy you anything is they guy or gal taking it in trade is told to do so.  It is green paper mixed with a little cloth.  Nothing more, nothing less.  However,  the biggest, baddest, fastest and most overpricedly equipped military on the globe backs up the truth that that green paper cloth is the most common currency on the planet.  It is conceived in sin and backed by the ability to rain death on your head and mine.  Wow.  Our entire lives we are groomed and trained to fit in and accept the status quo.  I was in 4th grade and on the way to a candy store when I saw the first mixed American coin.  No more silver. We are usually taught not to steal because it is unacceptable behavior.  All that stops at the bank's doors.  All that stops at the door to city hall and all government agencies beyond.  The lie is finally bubbling to the surface.  The world is accepting the truth that those greeb paper cloth pieces of paper are nothing more than just that.  It is the military and government machines backed by the financiers along with their pimps and whores that must be dealt with.  The dollar as reserve currency will not go quietly into that dark night but I believe in my lifetime I will see it go.  Just some Saturday morning ponderings.

Sat, 02/01/2014 - 09:59 | Link to Comment enloe creek
enloe creek's picture

cool beans

Sat, 02/01/2014 - 09:41 | Link to Comment enloe creek
enloe creek's picture

no high seas shipping folks but what navy allows
6 months of no food imports will decide who's who boys

Sat, 02/01/2014 - 11:51 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Is there a M number that quantifies all the dollars out there, electronic or otherwise including in despots hands?

Sun, 02/02/2014 - 05:04 | Link to Comment Bearwagon
Bearwagon's picture

Of course there is, and you already mentioned it. That is the monster group "M" (or "F1"), also known as the "Friendly Giant Group". http://en.wikipedia.org/wiki/Monster_group

Sun, 02/02/2014 - 12:54 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Mathematics has nothing to do with Economics.  

Mathematics is a science. 

Economics is a way to steal money from little old ladies, now expanded to everyone except the 1%

Sat, 02/01/2014 - 15:05 | Link to Comment ItsDanger
ItsDanger's picture

The US is doomed to lose this fight.  You can't win a multi-front war.

Sat, 02/01/2014 - 18:02 | Link to Comment tyrone
tyrone's picture

while the US scrambles to head off China in West Africa, it might be interesting to see if they are still paying attention to China's attempts to venture into South America's oil reserves.  In recent years, they wined and dined Hugo Chavez in an attempt to obtain rights and leases to Venezuela's massive petro-reserves in the Orinoco delta.  After all, Venezuela has the world's second or third largest reserves.  But Chavez said no, that he had guaranteed the local indigenous tribes in the Delta Amacuro territory that there would not be any oil business coming in to disrupt the indians lifestyle (Chavez himself had indigenous blood).  Well, fast forward to the present, where Hugo is now gone and there is a new group in power in Caracas.  Will the Chinese try again?

Sat, 02/01/2014 - 18:52 | Link to Comment T-NUTZ
T-NUTZ's picture

400 years
And it's the same -
the same philosophy
I said it's four hundred years
Look, how long
And the people they still can't see.
Why do they fight against the poor youth of today?
And without these youths, they would be gone -
All gone astray

-Peter Tosh

 

 

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