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Moscow Says Massive "Holy Grail" Gas Deal With China Is 98% Ready

Tyler Durden's picture




 

We have previously profiled the "holy grail" gas deal between Russia and China on several occasions, and with its announcement scheduled for next week (barring some unmitigated disaster) during Putin's first visit to China since Xi's appointment as president last March, it is time to do a status update on where it stands even if according to SCMP, at this point finding the "holy grail" is merely a formality.

The Hong Kong publication reports that China and Russia hope to sign a massive deal for natural gas supply when their leaders meet in a regional summit in Shanghai next week, a senior diplomat has said. Under the deal, Russia will supply 38 billion cubic metres of natural gas annually to China for 30 years. Deputy Foreign Minister Cheng Guoping told reporters yesterday that President Xi Jinping would discuss the deal and other points of co-operation with his Russian counterpart, Vladimir Putin, who will visit Shanghai on Tuesday.

Russian Deputy Energy Minister Anatoly Yanovsky said on Monday that the deal was "98 per cent ready". Supply would begin no later than the end of 2018.

Indicating just how important China now is to Russia, Bloomberg adds that traveling with Putin will be the who-is-who of Russian politics and business:

  • Gazprom CEO Alexey Miller also in delegation as Russian President Vladimir Putin visits China on May 20-21, Yuri Ushakov, Kremlin foreign policy aide, tells reporters in Moscow.
  • Ushakov also says that Russia-China trade may reach $100b as early as this year.
  • Gazprom working on China gas deal, Rosneft working onSinopec deal, Novatek working on deal
  • China-Russia talks demand compromises on both sides
  • Worsening relations with U.S. and allies "clearly to some degree influence" China talks
  • Billionaire Oleg Deripaska also traveling to China

As reported previously, the deal is between Russia's Gazprom and China National Petroleum Corporation (CNPC), but the two sides have yet to agree on pricing despite more than a decade of negotiations. Xi will meet Putin on the sidelines of the Conference on Interaction and Confidence Building Measures in Asia, to be attended by 46 nations and agencies.

"The companies of the two nations are exchanging views on the pricing issue," Cheng said. "We will strive to get the companies to sign the natural gas co-operation deal and [have it] witnessed by both state leaders while Putin is in China."

Cheng said Xi and Putin reached a consensus over natural gas co-operation when Xi attended the Sochi Winter Olympics in February. Companies of both nations have reached agreement on many aspects of the deal.

More:

Russian business daily Vedomosti reported last month that the companies were negotiating a price in the range of US$360 to US$400 per 1,000 cubic metres.

 

Gazprom chief executive officer Alexey Miller said last year that the supply could be boosted to 60 billion cubic metres a year over the period of the contract. The gas would be supplied via two pipelines entering northeast and northwest China.

 

Russia has been trying to diversify its energy export base beyond the European market, where Gazprom generates about 80 per cent of its revenue.

 

China relied on imports for nearly a third of its natural gas needs, Xinhua said.

 

It imported 53 billion cubic metres of natural gas last year, according to the China National Petroleum Corporation.

 

Putin's visit will be his first to China since Xi was named president in March last year.

Quid pro quo: "Observers expect both leaders to take a united stand on major international issues, and Putin may seek China's support on Russia's dealings with Ukraine."

And also on the dollar as we reported in "Russia Holds "De-Dollarization Meeting": China, Iran Willing To Drop USD From Bilateral Trade." In which case expect random Chinese space rockets to mysteriously explode during take off too.

 

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Fri, 05/16/2014 - 08:21 | 4765844 GetZeeGold
GetZeeGold's picture

 

 

They will pay in dollars......right?

Fri, 05/16/2014 - 08:24 | 4765852 Sudden Debt
Sudden Debt's picture

they're pulling another finger right now I guess...

Fri, 05/16/2014 - 08:34 | 4765897 Tabarnaque
Tabarnaque's picture

Let's see many hundreds of billons of treasuries little Belgium will now have to buy! Welcome to the world free of fascist petro-dollars. And F__k the banksters!  

Fri, 05/16/2014 - 08:43 | 4765928 power steering
power steering's picture

Bovina Sancta !!!

Fri, 05/16/2014 - 09:17 | 4766072 gmrpeabody
gmrpeabody's picture

Great chance to get that gold thingy going...

Fri, 05/16/2014 - 09:42 | 4766187 douglas
douglas's picture

Of course the Russians are gonna take Yuan!  Thanks to globalization and the fact that for the first time in history ALL currencies are FIAT, when one of the major currencies go then all will follow in short order.  At least the Chinese will have Gold to back up their new currency after THEY (those who hold the Gold) set the price North of $10,000 an oz.  I dont think all that shiny Tungsten in Ft Knox is gonna be much good for propping up the US dollar...

Fri, 05/16/2014 - 09:47 | 4766207 Flakmeister
Flakmeister's picture

Projecting are we?

The last thing the Chinese would do is back their currency with gold...

Fri, 05/16/2014 - 10:26 | 4766383 TannyDanner
TannyDanner's picture

Maybe it will be partially backed by gold or maybe it will just be purely for confidence, either way he who has the gold has the power.

Fri, 05/16/2014 - 10:33 | 4766416 Flakmeister
Flakmeister's picture

Nyet....

The 20th century has shown that he who controls the oil has the power...

This is bourne out by the observation that gold has slowly been deflating against oil since the demise of BW....

Fri, 05/16/2014 - 13:46 | 4767049 nope-1004
nope-1004's picture

It's quite easy to show anything deflating when measured in US dollars.  The Fed manipulates dollars and rates, so saying one asset is deflating against another, when BOTH are fictitiously priced, is the problem.  The Saudi's want oil above $75, the US wants Gold obliterated to preserve Clown Bux internationally.  They are both complicit in the mispricing going on.

We don't have true price discovery.  We have Fed bux, printed to keep the illusionary USD reserve and TBTF banks alive.

The entire thing is a shit show.

Will the US send Horse Face to solve this little problem?  lmao....

 

Fri, 05/16/2014 - 13:54 | 4767088 Flakmeister
Flakmeister's picture

If the gold and oil are "deflating" when measured in USD, how the fuck is the price of gold $1300 bucks when it was once $35....

Likewise for oil...

And lay off the stupid sauce, when you take the ratio of two commodity prices, you get a pure number, independent of the USD....

Time was when one oz of Au bought over 20 barrels of oil, them days are long gone...

Fri, 05/16/2014 - 14:07 | 4767133 nope-1004
nope-1004's picture

"when you take the ratio of two commodity prices"

 

Priced in what?  What are you pricing these in?  Certainly not the USD, correct?  That would be "stupid".

The Fed has been mispricing assets for 100 years.

 

Fri, 05/16/2014 - 14:16 | 4767179 Flakmeister
Flakmeister's picture

Give it up buddy, you are so lost as to be beyond hope...

Fri, 05/16/2014 - 14:18 | 4767187 nope-1004
nope-1004's picture

lmao

Fri, 05/16/2014 - 14:29 | 4767234 Flakmeister
Flakmeister's picture

Do you even know what a ratio is?

Because you certainly have no idea what "deflate" means...

Fri, 05/16/2014 - 17:36 | 4767824 BrosephStiglitz
BrosephStiglitz's picture

So long as they are priced in the same currency, it does not matter.  The corresponding ratio will be eliminate the currency it is priced in:

[Oil/USD] / [Gold/USD] = Oil/Gold

Substitute Euros, Yen, anything else.  It's all the same.

I'll check this out myself Flak.  Looks interesting.

Fri, 05/16/2014 - 14:17 | 4767185 balanced
balanced's picture

Are you seriously the only person on Earth that doesn't know that the price of gold has been artificially suppressed?

Fri, 05/16/2014 - 15:03 | 4767354 Flakmeister
Flakmeister's picture

\facepalm....

By how much, $20? $50 an oz? 

Let me guess, $1000 an oz?

The only ratios that really matter at Gold to Wheat, and Gold to Oil and both those say that gold is slipping....

Fri, 05/16/2014 - 14:07 | 4767124 DaveyJones
DaveyJones's picture

Crazy thought but it seems like both things are necessary for a little power - a real currency and a real energy source. If the energy source were irrelevant, there'd be less petro dollar deaths and recent history would look a little different

Fri, 05/16/2014 - 16:13 | 4767607 Muc Metals
Muc Metals's picture

This chart says: yout claim is  BS:

 

Dollar, Gold and Oil - Historical Chart Compares the movement in the real dollar index with gold and oil prices since 1974. The oil and gold series are adjusted for CPI inflation and the real dollar index is adjusted for the relevant trading partners own currency inflation rates.

 

http://www.macrotrends.net/1334/dollar-gold-and-oil-historical-chart

 

 

Sat, 05/17/2014 - 10:49 | 4769175 Flakmeister
Flakmeister's picture

Try this and take into account the WTI Brent difference...

http://pricedingold.com/charts/Crude-1950.pdf

Sat, 05/17/2014 - 05:33 | 4768866 cocky roach
cocky roach's picture

Ah, I see our bullshit alarm system is working perfectly.

Fri, 05/16/2014 - 14:28 | 4767229 EatYourCornTake...
EatYourCornTakeyourPill's picture

Flakmeister is 100% correct. You think that the CHinese government would back thier currency with gold. lol. Please. All the chinese have been doing since the 80s is imitating the US model. For any government, fiat is > hard assets. So no there will never be a gold backed currency, unless it's somehow created outside of the realm of the government but then there will be nobody to enforce it other than gangs and tribes. So yeah, pick your poison tinfoil hat commenters.

Fri, 05/16/2014 - 14:42 | 4767271 DaveyJones
DaveyJones's picture

like most primates, the Chinese have imitated but they've also been around a hell of a lot longer than us and with that comes alittle wisdom, perspective, and humility. They are taking huge additional moves in real assets and slowly getting out of OUR game. When you hold 3T you have to be carefull. They're not idiots and are building numerous escape plans knowing we are idiots and they may have to move quickly...    

Fri, 05/16/2014 - 10:58 | 4766444 Payne
Payne's picture

The Chinese are probably the largest holder of Gold in the World and the Russians have lots of energy to export.  It is incredibly short sighted fiat centric mind set that would expect them to not have a commodity to commodity componet in the trade agreement.  Meaning somewhere in the contract rubles to gold or rubles to platinum etc will be specified.  This was a normal contract in the US up until 1933.  They do not have to give up FIAT currency they just back a major long term contract to OIL for GOLD or Gold equivalent in whatever equivalents they are willing to take.  This will be as momentous as the Petro dollar in reverse.

Fri, 05/16/2014 - 10:59 | 4766531 Chupacabra-322
Chupacabra-322's picture

I believe it was Henry Kessinger who spoke of the importance of "Regional" Currnecies in regard to the development of the NWO.

However, I do not have the exact quote form the War Criminal at large.

Fri, 05/16/2014 - 13:07 | 4766954 nonstandardanalysis
nonstandardanalysis's picture

payne, it may make some sense.  the russians export both gold and oil.  if the chinese import both gold and oil, the russians will be selling them both gold and oil and will essentially see the return of their gold which the chinese will have had to purchase with either goods or fiat.  russia can't really lose rather like allowing the EU and merika to pay the gas bill owing in the ukraine.

Fri, 05/16/2014 - 11:21 | 4766638 RaceToTheBottom
RaceToTheBottom's picture

The Chinese print 3X what the US does. 

Is that because they want to back their currency with gold also?

Fri, 05/16/2014 - 11:39 | 4766700 F0ster
F0ster's picture

When one goes 'gold backed' there will need to be a global audit of all country's planning to back currencies with gold. That should be very interesting. US won't be trusted based on it's stated gold holding. We'll see who's holding what cards at the end of this global gold poker game.

Fri, 05/16/2014 - 12:02 | 4766782 Flakmeister
Flakmeister's picture

What planet are you referring to...

The concept of a gold standard is deader than dogshit here on Earth...

Fri, 05/16/2014 - 14:11 | 4767150 DaveyJones
DaveyJones's picture

do not confuse bankers and politicians with other life forms

Fri, 05/16/2014 - 14:22 | 4767204 Flakmeister
Flakmeister's picture

Doesn't matter...

It's deader than dogshit...

In the limit were there are no politicians and bankers there won't be any significant need for a MOE...

Fri, 05/16/2014 - 19:01 | 4767996 BrosephStiglitz
BrosephStiglitz's picture

I agree.  A return to the gold standard does seem very unlikely.

Fri, 05/16/2014 - 14:18 | 4767193 ATM
ATM's picture

It is dead for now. After the shit storm of fiats going supernova no person on earth will hold paper ever for 10 generations. 

Fri, 05/16/2014 - 14:23 | 4767209 Flakmeister
Flakmeister's picture

I think we will be damn lucky if the majority of humans are not hunter-gatherers in 10 generations...

Fri, 05/16/2014 - 14:25 | 4767213 Flakmeister
Flakmeister's picture

.

Fri, 05/16/2014 - 12:40 | 4766903 Cathartes Aura
Cathartes Aura's picture

the "Chinese" named nationstate also has the Rothschild advice since, oh, early 70's? was it?

history rhymes, repeats, takes a shit & moves right along. . .

Fri, 05/16/2014 - 08:44 | 4765931 Latina Lover
Latina Lover's picture

Why should China and Russia use Fed Reserve Notes to settle trade, when they can settle in their own currencies and  cut out the USD middleman/parasites? 

Fri, 05/16/2014 - 08:46 | 4765947 dontgoforit
dontgoforit's picture

All this while our guy sits on the side-lines and diddles with his putter.

Fri, 05/16/2014 - 09:36 | 4766163 Latina Lover
Latina Lover's picture

You mean Reggie is playing with his putter.

Fri, 05/16/2014 - 12:42 | 4766907 Cathartes Aura
Cathartes Aura's picture

and whatever your guy plays with

gets repeat plays

in your minds.

Fri, 05/16/2014 - 08:51 | 4765967 Bangin7GramRocks
Bangin7GramRocks's picture

They shouldn't, but if they do it just proves dollar dominance and we should expect a huge increase in QE.

Fri, 05/16/2014 - 10:27 | 4766389 666
666's picture

Wouldn't it be awesome if they used gold for payment?

Fri, 05/16/2014 - 09:07 | 4766021 EatYourCornTake...
EatYourCornTakeyourPill's picture

Simple answer to your question.

China pays Gazprom in yuan. What does Gazprom do with Yuan? They can't hold it as reserves since it devalues rapidly. Will Gazprom buy Chinese manufactured goods and sell them on the markets in Russia for rubles? I doubt that very much.

USD is accepted worldwide for any good. That's why it's the reserve currency. It allows gazprom flexibility and liquidity. Nobody in the world wants yuan or rubles.

That's why.

Fri, 05/16/2014 - 09:14 | 4766054 douglas
douglas's picture

Here´s a novel idea - Gazprom takes those Yuan and buys Gold with it...

Fri, 05/16/2014 - 09:46 | 4766082 BrosephStiglitz
BrosephStiglitz's picture

Hell they could even buy luxury toilet paper with it.  7 billion asses still ensures more utility in trade than the USD.

Fri, 05/16/2014 - 09:20 | 4766085 Flakmeister
Flakmeister's picture

And who sells their gold for yuan?

Fri, 05/16/2014 - 09:40 | 4766177 Latina Lover
Latina Lover's picture

At least Yuan are better than the carbon credits that the global warmists are trying to foist on the masses. Imagine if the suckers had fallen for that fraud, LOL>

Fri, 05/16/2014 - 09:51 | 4766230 Flakmeister
Flakmeister's picture

Yep, no shortage of people angling to make a fast buck no matter what means is available...

Too bad that what you are babbling on about has zero relevance to the current discussion...

Fri, 05/16/2014 - 09:53 | 4766240 BrosephStiglitz
BrosephStiglitz's picture

This is possibly the mother of all retarded purchases- puts BTFD to shame:

http://www.forbes.com/sites/oliverchiang/2010/11/17/meet-the-man-who-pai...

 

Fri, 05/16/2014 - 11:28 | 4766669 RaceToTheBottom
RaceToTheBottom's picture

I respect that guy much more than any WS dick

Fri, 05/16/2014 - 14:21 | 4767202 ATM
ATM's picture

Sounds like bitcins.

Fri, 05/16/2014 - 09:28 | 4766124 FMR Bankster
FMR Bankster's picture

People are looking for a dramatic change in the terms of trade but it's slowly happening everyday. 20 years ago close to 90% of all world trade was done in dollars. That's now down to less than 75%. In addition world currency reserves are now less than 70% in dollars. Energy is the big dog in this equation and as long as the Saudi's rely on us for protection they will stay will the dollar. But US power (economic and military) is slowly declining. We're still at the top, but nowhere near where we were 20 years ago.

Fri, 05/16/2014 - 12:08 | 4766808 EatYourCornTake...
EatYourCornTakeyourPill's picture

20 years is a long time. 1 war or 1 invention will change all of that and the US will never lose top status. 1 war between china and japan or its neighbors will set it back 100 years of catching up to the US. Once that happens, where do you think capital will go? Exactly to the US. The rich from China buy up real estate here at a premium because nobody wants to keep their money in China. BRICS are too volatile, USD is much more stable

Fri, 05/16/2014 - 14:31 | 4767226 DaveyJones
DaveyJones's picture

nice post. But I don't think anything is slow and steady here. Everything is getting faster. History doesn't like smooth lines either. Something's gonna bust soon. There's lots of factors to play with and they aren't all economic. We are making lots of enemies and burnings lots of bridges. Nobody likes us anymore. Nobody trusts us anymore. I don't blame them. We also have accelerated the process with evil deeds on the rest of the world and our own citizens. People on this site often declare that they took an economic move not just for their own economic good but to hurt an evil player. Mankind works that way. The Saudis are one helluva wild card. Their own people are about to blow and realize the deals cut between us and them only help a few of them. We're realizing the same. The bad guys have also pushed a dying, dishonest system past limits many experts thought were impossible. I hope I'm wrong, but this will be ugly       

Fri, 05/16/2014 - 14:51 | 4767308 Miffed Microbio...
Miffed Microbiologist's picture

Well said Davy,

Not only the speed but the sheer number of problems facing the world today at the same time simply boggles my mind. Economic, political, sociological, environmental, geopolitical , psychological. I'm convinced there simply isn't going to be an easy painless solution. I was debating this with someone I had just met by chance at a coffee shop, just worried for Mankind. He looked me in the eye and said " Why are you so concerned about lemmings? Maybe the whole point of their existence here is to be such. You and I just need to be aware of what they are and not get caught with them when they run for the cliff" There are some awake people out there. So rarely I am speechless by a random encounter.

I'm surrounded by the San Diego fires now which is probably feeding my fatalism but sometimes I find it hard to care and just want it all to burn down.

Miffed;-)

Fri, 05/16/2014 - 11:04 | 4766553 Chupacabra-322
Chupacabra-322's picture

@ Douglas,

Yep, buys China's Gold.

Fri, 05/16/2014 - 09:15 | 4766060 I am a Man I am...
I am a Man I am Forty's picture

And I think the point is that this is all changing.

Fri, 05/16/2014 - 09:19 | 4766077 Tabarnaque
Tabarnaque's picture

I think that you should read this very instructive article. Russia and the rest of the BRICS are moving away from the USD. A parallel financial/monetary/trade system is emerging. It is already in motion and can't be stopped.

http://www.zerohedge.com/news/2014-05-13/russia-holds-de-dollarization-meeting-china-iran-willing-drop-usd-bilateral-trade

Fri, 05/16/2014 - 09:31 | 4766091 BrosephStiglitz
BrosephStiglitz's picture

I have been absolutely dying to get my hands on some Ruble denominated trades since the sanctions went into place.   Once the sanctions lift (or this next round of bankruptcies occurs) it will be a very different world.  You can keep on waving the flag, or you can sharpen up and drop your biases and turn the situation to advantage. 

The only real question in town is whether the Russians have the reserves to defend their currency.  Probably not, and the Ruble might be lost.  Either way they are an energy and agricultural exporter with very little in the way of external and internal debt.  They are a tropical island surrounded by an ocean of sewage as far as I am concerned.

Fri, 05/16/2014 - 12:06 | 4766797 EatYourCornTake...
EatYourCornTakeyourPill's picture

I was born in Russia. I know what it means to try to do business there. I wouldn't put one cent there, it's so corrupt. Insurance companies don't pay out, banks will declare bankruptcy, credit is really expensive.

So don't tell me about biases. I know exactly what shithole I left to come live in the greatest country in the world.

Fri, 05/16/2014 - 12:23 | 4766858 paddyirishman
paddyirishman's picture

you're full of shit CIA stooge, where's your evidence for your lies and nowhere is as corrupt as the USSA

Fri, 05/16/2014 - 14:23 | 4767207 balanced
balanced's picture

Seriously? The USSA is indeed corrupt to the core, but to say that "nowhere is as corrupt as the USSA", well that's just ignorant.

Fri, 05/16/2014 - 14:23 | 4767212 EatYourCornTake...
EatYourCornTakeyourPill's picture

Put your money where your mouth is and invest in Russia then. I would if I was as confident as you are.

Fri, 05/16/2014 - 14:51 | 4767300 richsob
richsob's picture

The people you are arguing with here are delusional.  I lived in Russian for years and did business there too until it just became too corrupt and expensive.  The average stooge on this website supporting Putin/Mother Russia is either dead broke and has no business giving financial opinions anyway or stuck in a time warp where Russia will always eventually get its ass handed to it because their educational system fails when it comes to teaching true versions of history.  I love the Russian people; they are some of the most generous people in the world and they are sure as hell tougher than the average American.  But the Russian intellect is crude; it conveys a strength to stubborness and nationalism that doesn't square with the reality of the modern age.  Putin is dangerous for many reasons but the people he is most dangerous to is the Russian people.  Signing contracts to sell Russian energy to the Chinese will prove nothing in the long run when there is the inevitable falling out between two systems that will not play well together over the long haul.

Fri, 05/16/2014 - 14:58 | 4767335 blentus
blentus's picture

Poor Russian :(

Did he not notice? :(

Fri, 05/16/2014 - 15:07 | 4767362 DaveyJones
DaveyJones's picture

everything is relative. everything changes. every empire pushes past its limits. Russia is corrupt. So is India, China, and Arkansas. It's a matter of scale, and risk, and change. Every human and political group is capable of unspeakable crimes. I see this constant theme in both my criminal law practice and my neighborhood that has Microsoft employees from all over. They seem to confuse relative corruption with absolute. American corruption may not be everyday obvious but that depends on your expertise doesn't it. It makes sense and history shows us that the most powerful country often becomes the most corrupt.    

Fri, 05/16/2014 - 18:16 | 4767918 mc225
mc225's picture

wow, are you over in redmond? were you around to see it grow from say, the late '80s until now? amazing amount of growth. i was there in the early-to-mid-'90s. it was pretty koo then. for instance, only one stop light on ne40th street, from 148th ave to 156th ave. went back years later and it looked like 3 or 4 lights added in... totally congested by then...

but the 'entire puget sound area' is growing. some of these housing developments out here are trippy... like, all of these houses with no yards, hanging out over the street. like a sense of no space... crowded.

Fri, 05/16/2014 - 14:57 | 4767328 blentus
blentus's picture

Yes. Because you are born in Russia, you are an expert on Russia.

Do you even realize how retarded you are?

Fri, 05/16/2014 - 09:37 | 4766164 Stuck on Zero
Stuck on Zero's picture

China really doesn't need to pay for the gas.  The land that gas came from really belongs to China. 

 

Fri, 05/16/2014 - 08:52 | 4765969 Joe Tierney
Joe Tierney's picture

If Belgium keeps that up, it will give them MAJOR INDIGESTION!. Haff to rename the land to Belchum when they start puking the Dollar Toilet Treasuries back up.

Fri, 05/16/2014 - 10:14 | 4766329 The Black Bishop
The Black Bishop's picture

"I asked for money! Why are you trying to give me toiletpaper?!"

Fri, 05/16/2014 - 08:27 | 4765864 TideFighter
TideFighter's picture

Sanctions, Bitchez! They work so well.... Barry still fondling his rooks...Putin has half the game played..

Fri, 05/16/2014 - 08:34 | 4765895 mayhem_korner
mayhem_korner's picture

 

 

Fondling his rooks...or spanking his "bishop"?

Fri, 05/16/2014 - 08:37 | 4765907 grozniy
grozniy's picture

Bishop was sent to G-Bay for some cockmeat sandwich

Fri, 05/16/2014 - 08:38 | 4765911 Bindar Dundat
Bindar Dundat's picture

I go back to the best line ever on ZH :  "Barry is still wondering why the red ones taste the same as the black ones....Putin has the game half played."

Fri, 05/16/2014 - 10:14 | 4766321 Save_America1st
Save_America1st's picture

Remember:  This is all being done by design.  It's not so much that obama is "messing" up and making mistakes in all these geo-political challenges with Russia and China.

It's by design to look that way.  obama is just an empty suit puppet being controlled by the global elite. 

They want America to go down and this is the way they are trying to achieve it.  obama and the rest of the scum he surrounds himself with as well as a large majority of our elected and non-elected beaurocrats are more than happy to play along as they achieve great wealth, power, and status among the global elite.  But they're all just puppets too and they're greed and treason won't get them far.

This is all part of their Cloward and Piven strategy to overhwelm America with debt and chaos until the entire system collapses under the weight of it all. 

They don't care how it occurs and have launched a multi-faceted attack against us from many directions with obamacare, QE, wars, Agenda 21, deindustrialization of our manufacuring, insane environmental regulations, Common Core, crony Fascism, etc. etc.

All being used against us to destroy our society, freedom, and rights under the Constitution and Bill of Rights which they despise and wish to replace with a Marxist/Fasicst/Authoritarian regime or Oligarchy.

They've done very well so far, haven't the little mother fuckers??? 

I'm skeptical we can ever turn this all around unless or until a collapse does actually occur and we (the good guys) battle it out with them either by civil war or military take-over of the government to replace them, kill them, or throw them all in jail, and then re-establish civilian government with the original Constitution and Bill of Rights.

Until then I think all we can do is watch this shit-show continue, keep trying to wake more people up, and prepare our asses off by stacking phyzz, supplies, guns, ammo, food, water, etc. 

Just get ready for it.  Because once they finally achieve destroying the dollar and replacing it as the world reserve currency, America is going to plunge into some seriously deep shit for a very long time.  And we need people who are physically and mentally prepared to head into this and lead the rest who will be completely caught off guard.

This treasonous government is building an army around us of those who are fully dependent on them and once they collapse everything they know those people will run to them begging for anything to survive.  That's the ultimate trap being set for America so that they can deal us the final blow of a full authoritarian regime.

We have to be ready to fight that at all costs, folks.  No joke.  This is very fucking serious. 

 

Fri, 05/16/2014 - 13:58 | 4767099 dontgoforit
dontgoforit's picture

A Rockefeller reflection in a rancid soup.

Fri, 05/16/2014 - 08:26 | 4765866 Theta_Burn
Theta_Burn's picture

On a dollar for dollar treasury liquidation....yes

I'm wondering what position America will take on this hostile-to-its-best-interests uppercut to the chin...

Fri, 05/16/2014 - 08:35 | 4765891 mayhem_korner
mayhem_korner's picture

I'm wondering what position America will take on this hostile-to-its-best-interests uppercut to the chin...

 

Barry is shaking his Magic 8 Ball as we speak.

Fri, 05/16/2014 - 08:31 | 4765887 Jayda1850
Jayda1850's picture

And indeed that is the entire crux of the issue at hand because once there becomes open competition for buying energy using alternatives to the US dollar its gonna be, "last one out, shut the door and turn out the lights" for the US. Another empire gone the same way damn near every empire ends.

Fri, 05/16/2014 - 08:35 | 4765900 williambanzai7
williambanzai7's picture

Fri, 05/16/2014 - 09:17 | 4766070 Cognitive Dissonance
Cognitive Dissonance's picture

An Atlanta Braves fan perhaps? I've seen stranger things right here on ZH. :)

Fri, 05/16/2014 - 10:11 | 4766312 quasimodo
quasimodo's picture

SOB he is in good shape for his age, hell he's in good shape period. 

Lemme see skinny barry mounted atop a little colt.

Fri, 05/16/2014 - 10:24 | 4766375 dsty
dsty's picture

great pictures, click away

Fri, 05/16/2014 - 12:01 | 4766779 The Big Ching-aso
The Big Ching-aso's picture

Is he from the Commiekaze tribe?

Fri, 05/16/2014 - 13:47 | 4767066 dontgoforit
dontgoforit's picture

Krow.

Fri, 05/16/2014 - 08:36 | 4765904 BandGap
BandGap's picture

Sure, Russian "dollars" or Chinese "dollars" or golden "dollars".

It's all in your frame of reference.

Fri, 05/16/2014 - 08:24 | 4765851 1000yrdstare
1000yrdstare's picture

What is your quest?

To seek the Holy Grail!

What is the capital of Wisteria?

Fri, 05/16/2014 - 08:36 | 4765903 Headbanger
Headbanger's picture

How far can a swallow fly?

Fri, 05/16/2014 - 08:44 | 4765937 power steering
power steering's picture

What's a Hemingway?

Fri, 05/16/2014 - 09:30 | 4766126 falak pema
falak pema's picture

it gets Zeldad every day by a scott fitz gerald like in a dangerous summer. (Better to get gored than to be bored).

I wrote a moveable feast....yes, but I wrote tender is the night...what?? with the old man and the sea?... No with to have and to have not! Well that's a farewell to arms ! Yes if you get shot like Jay G in his pool ! 

Fri, 05/16/2014 - 09:32 | 4766145 Hulk
Hulk's picture

What is in the fucking water over there ???

Fri, 05/16/2014 - 13:51 | 4767071 dontgoforit
dontgoforit's picture

Don't know, but give me some of that Gatsby stuff! I hear it's great.

Fri, 05/16/2014 - 08:50 | 4765955 They_Live
They_Live's picture

What do you mean? An African or European swallow?

Fri, 05/16/2014 - 09:07 | 4766019 Gavrikon
Gavrikon's picture

Obama prefers the white swallow.

Fri, 05/16/2014 - 09:13 | 4766048 Proofreder
Proofreder's picture

A Stork Brings Babies.

A Swallow doesn't.

Fri, 05/16/2014 - 08:26 | 4765856 Cognitive Dissonance
Cognitive Dissonance's picture

The only thing that matters in this deal is if the gas is paid for in USD or not. Nothing else makes any difference in the grand scheme of things other than the almight US dollar.

Fri, 05/16/2014 - 08:28 | 4765870 LawsofPhysics
LawsofPhysics's picture

Come on CD, you know that no FRNs will be exchanged in this deal, that's the "problem".

 

 

Fri, 05/16/2014 - 08:34 | 4765896 Cognitive Dissonance
Cognitive Dissonance's picture

One can hope. It will be considered a matter of national security and the pretext for all kinds of thrashing about by the US as the death throes of Empire really begins. A brief review of the collateral damage during the End of Empire is never pretty. Forget nuclear bombs, think derivative bombs.

Fri, 05/16/2014 - 08:38 | 4765910 LawsofPhysics
LawsofPhysics's picture

I can only be concerned about so many things.  Since I do provide raw milk (both cow and goat) for my neighbors and I, I now have to wonder if my operation will be raided by USDA zealots with submachine guns.

It already happened to some poor sap in California.  I think he is still "awaiting charges" in jail.

Fri, 05/16/2014 - 09:35 | 4766158 Hulk
Hulk's picture

Just spray raw milk all over them. If they believe what they are enforcing, they should go running for the hills...

Fri, 05/16/2014 - 16:39 | 4767674 DaveyJones
DaveyJones's picture

nice. and if they are truly what we think they are, the mlik will curdle immediately

Fri, 05/16/2014 - 09:58 | 4766265 Chump
Chump's picture

C'mon man...if you're going to do something as heinous as sell milk to people, at least have the common sense not to write about it in public.  Do you know how many resources are being diverted right now to track you down?

Fri, 05/16/2014 - 08:39 | 4765914 fonzannoon
fonzannoon's picture

don't sweat this deal. housing starts just came in strong. the markets are rallying. anyone holding treasuries are about to get crushed under the growth avalanche that is screaming towards them.

Fri, 05/16/2014 - 08:43 | 4765932 BrosephStiglitz
BrosephStiglitz's picture

Growth avalanche?  Where is the growth going to come from exactly?

Fri, 05/16/2014 - 08:55 | 4765986 LawsofPhysics
LawsofPhysics's picture

Yes, ghetto construction is way up. "winning"

Fri, 05/16/2014 - 09:07 | 4766023 BrosephStiglitz
BrosephStiglitz's picture

http://supexmag.com/ghettopoly/

Time to go long on crack and koolaid. 

Fri, 05/16/2014 - 09:35 | 4766159 Old Man River
Old Man River's picture

I do not agree, but to some - who would not call it "ghetto" - this is sincerely "winning" in terms of their wolrd view. It is simply planned, affordable, subsidized accomodations. Beautiful, right?

 

Right now Fannie and Freddie sort-of "secure" most everything right now, be it homes or rentals. While the middle class gradually dies, foreclosed homes, rentals, etc. will slowly and necessarily become planned, affordable, subsidized accomodations or they will simply be let go in favor of more centralized, equitable, integrated communal living. If one manages well enough, there will be many different types of criminals coming. Hooligans will come for a lack of municipal revenues (no police). Bureaucrats will come with higher taxes. Federalis will come with new regulations that cannot be reconciled. Etc.

 

White flag.

 

Wecome, folks, to New Serenity Heights Metroplex - a planned community. Here are the keys to Dorm #1663C. You will be allowed electricity from 8 am - 8 pm. Lavatory is down the hall to your right.

Fri, 05/16/2014 - 12:46 | 4766917 Cathartes Aura
Cathartes Aura's picture

21st agenda.

Fri, 05/16/2014 - 18:24 | 4767925 mc225
mc225's picture

sort of like a reverse pol pot tactic; rather than clearing the cities, clear the countryside.

Fri, 05/16/2014 - 09:21 | 4766088 Al Huxley
Al Huxley's picture

I think in this goldilocks environment we can expect gains in bonds AND equities. 

Fri, 05/16/2014 - 08:38 | 4765899 BrosephStiglitz
BrosephStiglitz's picture

Not really.  That is a big part of it, but Putin is still jabbing his thumb in the Eurozone's eye with this deal.

The best part: whether it is done in dollars, or Euros, or Rupees, or Yuan.. both leaders can spin this deal as the next big thing to their citizens. 

Fri, 05/16/2014 - 11:22 | 4766647 smokintoad
smokintoad's picture

Do svidaniya, Dollar

Fri, 05/16/2014 - 08:25 | 4765858 NoDebt
NoDebt's picture

98% ready.  Story of my life.

Fri, 05/16/2014 - 08:30 | 4765885 youngman
youngman's picture

Where is JZ on Youtube to say he is a billionaire..before the deal is done...this deal needs some hype...and coolness

Fri, 05/16/2014 - 08:33 | 4765892 fonzannoon
fonzannoon's picture

yes 98%. only thing left is that pesky "price". other than that they both agreed that they like pizza and big titties.

Fri, 05/16/2014 - 08:36 | 4765905 Cognitive Dissonance
Cognitive Dissonance's picture

Pepperoni and onion with a side order of 38D please. Hold the post Fukushima anchovies.

Fri, 05/16/2014 - 08:41 | 4765924 TheFourthStooge-ing
TheFourthStooge-ing's picture

Hey, can we get half of it with banana republic peppers?

Fri, 05/16/2014 - 09:12 | 4766037 intric8
intric8's picture

98% ready? Thats because

"nobody is ever 100% ready"

Fri, 05/16/2014 - 09:15 | 4766045 intric8
intric8's picture

.

Fri, 05/16/2014 - 09:08 | 4766025 Gavrikon
Gavrikon's picture

Make mine DDD, please.  I dislike small breasts.

Fri, 05/16/2014 - 08:46 | 4765948 SoDamnMad
SoDamnMad's picture

Just a problem with the price not being settled yet.

Vlad  We are selling this for $480 per thousand CF

Xi   We will be willing to pay $240 per thousand CF from our brother Russians.  Yes

 

Fri, 05/16/2014 - 08:54 | 4765979 fonzannoon
fonzannoon's picture

so Vlad and Xi are negotiating in dollars, interesting.

Fri, 05/16/2014 - 09:18 | 4766074 Proofreder
Proofreder's picture

per thousand Cubic Meters

CuFt are so passe'

Fri, 05/16/2014 - 14:44 | 4767279 dontgoforit
dontgoforit's picture

It's a really LARGE deal.

Fri, 05/16/2014 - 10:27 | 4766388 One of We
One of We's picture

"A good plan violently executed now is better than a perfect plan next week."

Fri, 05/16/2014 - 11:50 | 4766736 ndree
ndree's picture

2% is putin's signature in yuan/rubles.

Fri, 05/16/2014 - 08:31 | 4765861 ltsgt1
ltsgt1's picture

I predict the US will intervene in the brutal suppressions of the peace loving Muslims population within Russia and China very very soon.

Unless, as Cognitive Dissonance stated, if the transaction were to be paid in dollar, then the US will provide technical and intel assistances to help the peace loving Russains and Chinese to eradicate the terrorists.
Fri, 05/16/2014 - 08:28 | 4765863 buzzsaw99
buzzsaw99's picture

I hope this means china will burn less coal but somehow I doubt it. Dirty bastards.

Fri, 05/16/2014 - 08:31 | 4765884 TideFighter
TideFighter's picture

How many chocolate Belgium Waffles per cubic meter?

Fri, 05/16/2014 - 09:20 | 4766086 Proofreder
Proofreder's picture

42

because 42 is always the correct answer ...

Fri, 05/16/2014 - 08:43 | 4765933 Tabarnaque
Tabarnaque's picture

Russia will only be in a position to start sending Nat Gas by late 2018... Until then, the coal burning will just get worst.

Fri, 05/16/2014 - 08:30 | 4765880 orangegeek
orangegeek's picture

Communists doing deals with communists.

 

What could go wrong here?

Fri, 05/16/2014 - 08:31 | 4765890 youngman
youngman's picture

I wonder if they trust each other....I know I do not...lol

Fri, 05/16/2014 - 08:40 | 4765918 BrosephStiglitz
BrosephStiglitz's picture

Get out of the 1950s Sen. McCarthy.  The Reds are no longer under the beds.

Fri, 05/16/2014 - 09:02 | 4765992 BadDog
BadDog's picture

Better to worry about the fascists in DC.

Fri, 05/16/2014 - 10:02 | 4766285 Zeta Reticuli
Zeta Reticuli's picture

China does capitalism better than America. Who's the communist? And what exactly is a communist anyway? I live in China and everybody here is a rabid capitalist.

Fri, 05/16/2014 - 10:43 | 4766448 KidHorn
KidHorn's picture

Communism doesn't exist anymore. What the two countries are is socialist. Not communist. A socialist gov't is one where one party runs everything. In the case of China and Russia, the party is named the communist party, but it's an old name that no longer has relevance.

Fri, 05/16/2014 - 08:32 | 4765881 MilwaukeeMark
MilwaukeeMark's picture

Obama should go into the computer dating business .. really!
I mean, if he could bring these two unlikely partners together in a relationship that will make all their dreams come true .. to destroy the US petrodollar to re-patriate all that fiat currency we have been printing back to our shores like the Indonesian Tsnumani, just think what he could do for divorced middle aged people.

Fri, 05/16/2014 - 09:58 | 4766266 813kml
813kml's picture

eHegemony

Fri, 05/16/2014 - 08:30 | 4765883 mayhem_korner
mayhem_korner's picture

 

 

They look like they're waiting for Alex to finish reading the Final Jeopardy! question.

Fri, 05/16/2014 - 08:40 | 4765919 Bindar Dundat
Bindar Dundat's picture

I will take " Fuck the Yanks" for $200 Alex.

Fri, 05/16/2014 - 08:53 | 4765975 dontgoforit
dontgoforit's picture

How about "Who's Golden" for 'Daily Double!'

Fri, 05/16/2014 - 08:34 | 4765898 adonisdemilo
adonisdemilo's picture

Putin must know that he will have to avoid any grassy knolls whilst he's on his travels.

Fri, 05/16/2014 - 08:38 | 4765913 intric8
intric8's picture

What can Russia and China say? The u.s. had it coming.

The bullying and hypocrisy became unbearable

Fri, 05/16/2014 - 08:41 | 4765923 Duude
Duude's picture

If we're lucky, China may turn more to building more natural gas power stations and stop slapping up coal power. 

Fri, 05/16/2014 - 08:42 | 4765925 greatbeard
greatbeard's picture

2018?  Heck, there will be a Republican in the White House then, everything will be fine.

Fri, 05/16/2014 - 08:45 | 4765940 Flakmeister
Flakmeister's picture

You forgot the /sarc flag...

Fri, 05/16/2014 - 09:46 | 4766202 MEAN BUSINESS
MEAN BUSINESS's picture

Flak, starting to wonder if you'd done a DOTE Dave. That WAIS image remains...

Would be awesome to see a DOTE  ZH account...

A farewell to Dave

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