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Ron Paul Says: Watch The Petrodollar

Tyler Durden's picture




 

Submitted by Nick Giambruno via CaseyResearch,

The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better.—Ron Paul

Dr. Paul is referring to the petrodollar system, one of the main pillars that’s been holding up the US dollar’s status as the world’s premier reserve currency since the breakdown of Bretton Woods.

Want to know when the fiat US dollar will collapse? Watch the petrodollar system and the factors affecting it. This is critically important, because once the dollar loses its coveted reserve status, the consequences will be dire for Americans.

At that moment, I believe Washington will become sufficiently desperate to enforce the radical measures that governments throughout world history have always implemented when their currencies were threatened—overt capital controls, wealth confiscation, people controls, price and wage controls, pension nationalizations, etc.

And there’s more. The destruction of the dollar will wipe out most people’s wealth, leading to political and social consequences that will likely be worse than the financial consequences.

From Bretton Woods to the Petrodollar

The dollar’s role as the world’s reserve currency was first established in 1944, with the Bretton Woods international monetary system. The US—victorious in WWII, and possessing the overwhelmingly largest gold reserves in the world (around 717 million ounces)—could reconstruct the global monetary system with the dollar at its center.

The Bretton Woods arrangement linked another country’s currency to the US dollar at a fixed exchange rate, and the US dollar was tied to gold, also at a fixed exchange rate. Countries accumulated dollars in their reserves to engage in international trade or to exchange them with the US government for gold at $35 an ounce.

By the late 1960s, exuberant spending from welfare and warfare—combined with the Federal Reserve monetizing the deficits—drastically increased the number of dollars in circulation in relation to the gold backing it.

This monetary inflation caused nervous countries to accelerate their exchange of dollars for gold at $35. The result was a serious drain on the US gold supply (from 20,000 tonnes to around 290 million ounces by 1971, an amount it supposedly still holds).

With gold reserves shrinking rapidly, President Nixon officially ended convertibility of the dollar to gold, thus ending the Bretton Woods system on August 15, 1971. It was a default, and it took with it the main reason countries primarily held their reserves in dollars. The buck’s preeminent value in international trade was gone. Demand for dollars by foreign nations was sure to fall, along with its purchasing power.

That hurt OPEC, whose members were the world’s leading suppliers of a commodity even more valuable than gold: oil. OPEC countries needed a way to retain the real value of their earnings in the face of a declining currency, without having to jack the price of oil sky high.

If the dollar was to remain strong, it had to reinvent its status as the world’s reserve currency, and that required a new world financial arrangement, one which would give foreign nations an ironclad reason to hold and use dollars. Nixon dispatched his National Security Advisor Henry Kissinger to Saudi Arabia.

The Petrodollar System

Between 1972 and 1974, the US and Saudi governments created the petrodollar system.

Saudi Arabia was chosen because of its vast petroleum reserves, its dominant influence in OPEC, and the (correct) perception that the Saudi royal family was corruptible.

Under the new petrodollar system, the US guaranteed the survival of the House of Saud by providing a total commitment to its political and military security. In return, Saudi Arabia agreed to:

  • Use its dominant influence in OPEC to ensure that all global oil transactions would be conducted only in US dollars.
  • Invest a large amount of its oil revenue in US Treasury securities and use the interest income from those securities to pay US companies to modernize the infrastructure of Saudi Arabia.
  • Guarantee the price of oil within limits acceptable to the US and act to prevent another oil embargo by other OPEC members.

No dollars, no access to the world’s most important commodity. It’s a very compelling reason to hold your reserves in dollars.

For example, if Italy wants to buy oil from Kuwait, it has to first purchase US dollars on the foreign exchange market to pay for the oil, thus creating an artificial demand for US dollars that wouldn’t exist if Italy could pay in euros.

The US is just a toll collector in a transaction that has nothing to do with a product or service. But that translates into increased purchasing power and a deeper, more liquid market for the dollar and Treasuries.

Additionally, the US has the unique privilege of using its own currency—which it can print at will—to purchase its imports, including oil.

The benefits of the petrodollar system to the US are impossible to overstate.

What to Watch For

Today, the geopolitical sands of the Middle East are rapidly shifting.

The faltering strategic regional position of Saudi Arabia, the rise of Iran (which is not part of the petrodollar system), failed US interventions, Russia’s increasing power as an energy giant, and the emergence of the BRICS nations (which offer the potential of future alternative economic/security arrangements) all affect the sustainability of the petrodollar system.

My colleague Marin Katusa’s mentioned in his book; The Colder War, you need to be aware of what Vladimir Putin is doing. Putin would like nothing more than to sabotage the petrodollar, and he’s forging alliances across the planet that he hopes will help him achieve his goal.

At the same time, you should watch the relationship between the US and Saudi Arabia, which has been deteriorating.

The Saudis are furious at what they perceive to be the US not holding up its end of the petrodollar deal. They believe that as part of the US commitment to keep the region safe for the monarchy, the US should have attacked its regional rivals Syria and Iran by now. And they may feel they are no longer obliged to uphold their part of the deal, namely selling their oil only in US dollars.

They’re already heavily involved with China and could also tilt toward Russia. Oil traded in rubles or yuan could be the future result—a death knell for the petrodollar.

Conclusion

It was evident long before Nixon closed the gold window and ended the Bretton Woods system in 1971 that a paradigm shift in the global monetary system was inevitable.

Now another shift also seems inevitable. Ron Paul’s words alert us as to when a dollar collapse is imminent.

“We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros.”

Someday, perhaps soon, Americans will wake up to a new reality, like they did on August 15, 1971.

 

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Thu, 11/06/2014 - 17:33 | 5421245 10mm
10mm's picture

Thanks Ron. Were on it and hope for it. DIE you fucker.

Thu, 11/06/2014 - 17:37 | 5421260 SilverIsKing
SilverIsKing's picture

Are you referring to Ron or the USD?

Thu, 11/06/2014 - 17:49 | 5421310 Pareto
Pareto's picture

Good question.  He's gotta mean the $USD.  Can't be referring to Ron - nobody supports stewardship of currency or competing currencies more than the good doc.

Thu, 11/06/2014 - 18:03 | 5421364 Publicus
Publicus's picture

Oil is far better than gold.

Thu, 11/06/2014 - 18:07 | 5421375 zaphod
zaphod's picture

Saudi's decided this week to not only keep accepting dollars, but to require less dollars for the same amount of oil.

This is the wrong direction.

Thu, 11/06/2014 - 18:16 | 5421403 LawsofPhysics
LawsofPhysics's picture

Unless a real slowdown has already been accouted for.  Competing businesses that have a financial buffer will in fact lower prices to put the competition out of business.  This happens all the time.

Fri, 11/07/2014 - 00:33 | 5422616 TheReplacement
TheReplacement's picture

OTOH, 'We are dependent on your oil like you are dependent on our muscle.  Turn off the juice and we'll not only not invade Syria and Iran we'll let ISIS capture some more hardware and turn them on you.'

Or,

'We'll bomb you.'

Thu, 11/06/2014 - 18:16 | 5421404 Timmay
Timmay's picture

You may not be thinking deep enough, we are now exporting LESS inflation......

Thu, 11/06/2014 - 19:03 | 5421577 deflator
deflator's picture

 Would less dollar denominated trade result in a lesser ability to export inflation/deflation?

Russia, China and others have recently made on the books non dollar denominated trade deals. Sanctions against Russia guarantee that there is off the books, ie:, non dollar denominated trade for Russian commodities by sanctioning countries. 

 

 Events in Ukraine and the resulting sanctions against Russia would have never happened if Russia and Putin had not been previously pushing for an end to U.S. dollar hegemony.

Thu, 11/06/2014 - 19:54 | 5421772 Theta_Burn
Theta_Burn's picture

 Events in Ukraine and the resulting sanctions against Russia would have never happened if Russia and Putin had not been previously pushing for an end to U.S. dollar hegemony.

 

There was not a peep about this pre-Ukraine cluster fuck.. it could be possible but unlikely..

More likely is.. 

The planet is fed-up with the dollar pimps and want out of a system that if you don't tow-the-line we unleash financial armageddon and lock you out.

The same pimps started a conflict next to a country that has the ability and resorces to speed the whole de-dollar process up...AND give the pimps cover for when it all comes crashing down...

The sanctions were the spark that set it off..

 

 

 

 

 

Thu, 11/06/2014 - 20:15 | 5421853 SafelyGraze
SafelyGraze's picture

one day msm is showing you rachel maddow talking to missus andrea mitchell greenspan about how we should frame the electionographic questions

the next day msm msm is showing you rand paul framing the electionographic questions

 

Thu, 11/06/2014 - 22:22 | 5422256 MontgomeryScott
MontgomeryScott's picture

“We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros.”

Someday, perhaps soon, Americans will wake up to a new reality, like they did on August 15, 1971.

 

Rachel Maddow is a used-up bulldyke whose viewership is now exclusively made up of feminist college graduates with degrees in social work, and men who desire to be pegged by a 'stronger woman'.

RAND Paul isn't RON Paul. Almost nothing like him at all, in fact.

Dr. Paul (the older one), and the guys at Casey Research, on the other hand, and those like them, (and like ME) have been forewarning anyone and everyone who would stop to listen about the imminent collapse of the USD (and the nation as a whole) due to the systemic cancer that began life as the Federal Reserve Act of 1913. The OPEC ACCORDS of 1971 simply PROVED OUT the end of the USD as a store of REAL wealth.

FUCK the MSM. No, really. FUCK THE MSM, and that bulldyke sold-out twat Rachel Maddow!

Thu, 11/06/2014 - 23:08 | 5422384 markmotive
Thu, 11/06/2014 - 21:31 | 5422073 Escrava Isaura
Escrava Isaura's picture

 

 

Simplified, but you’ll get it:

 

There are ‘mainly’ three (elites) forces fighting for their survival:

a) The government b) The financial c) The military.

 

Their main enemies are:

a) Domestic population and debt in foreign currencies.

b) Fixed exchange rate and gold (destabilization).

c) Offshore dollars (petrodollars) to pay for military expansion.

 

Key Point

The main culprits are the financials, the military, and the domestic population ignorance.

 

Here’s an example, by L. Randall Wray: 

…. even if they are, their banks are not necessarily prudent. (Think Ireland! While the government was the paragon of financial prudence, its banks lent in foreign currency until the cows came home. When borrowers defaulted, the Irish government took on all the foreign currency debt—quite imprudent!)

 

Further, it is not true that floating rate standards invariably lead to hyperinflations. If that were true, we’d have hyperinflation all the time.

 

http://www.economonitor.com/lrwray/2011/08/24/zimbabwe-weimer-republic-how-modern-money-theory-replies-to-hyperinflation-hyperventilators-part-1/

 

 

 

Thu, 11/06/2014 - 21:28 | 5422076 daveO
daveO's picture

 Events in Ukraine and the resulting sanctions against Russia would have never happened if Russia and Putin had not been previously pushing for an end to U.S. dollar hegemony.

No, if only Russia and Putin had handed Cheney their energy resources at a huge discount.  http://www.abovetopsecret.com/forum/thread1038802/pg1
Thu, 11/06/2014 - 18:45 | 5421536 bbq on whitehou...
bbq on whitehouse lawn's picture

A riseing currency is a red flag that demand is slowing, otherwise you would need to buy short positions to cover your buying of the long position.

As the currency rises in value it makes loans in that currency unprofitable causeing it to be used less. Its not a good cycle. Like the euro why would anyone buy euro bonds in Spain or France or Italy? Less used no need to buy the bonds that create the inflation. Thats why German debt is yielding less then Italy. Same euro but if you are forced to hold euros then what bond are you going to want to hold them in?
Its a through the looking glass world. What you see is not what is but a reflection of it. Currency that is held is the long position, to hedge you need a short, its these shorts that are priced. More shorts allows for cheaper shorts (supply/demand).

Thu, 11/06/2014 - 21:02 | 5422018 Hacked Economy
Hacked Economy's picture

What about shatting your shorts?

Thu, 11/06/2014 - 23:21 | 5422420 nuke ISIS now
nuke ISIS now's picture

I Say that instead of the petro dollar, the new dollar should be based on feces, yes we switch from a petro dollar to the poop-dollar

 

 

Thu, 11/06/2014 - 21:07 | 5422028 McCormick No. 9
McCormick No. 9's picture

Why an end to the petrodollar is deflationary:

This is counterintuitive. Most comments about an end to the petrodollar suggest massive currency repatriation and a subsequent domestic inflationary dynamic. Here is what will really happen.

Dollar devaluation resulting in a loss of petrodollar status will send bond yields soaring, and interest rates will skyrocket. The repatriation of dollars will give the FED no choice but to raise interest rates- then the entire unravelling of QE and stimulus is on, via interest rate conflagaration.

Some of this interest increase can be soaked up by excess dollar supply, but essentially this will only buffer the deflationary dynamic, not result in an inflationary one. Perhaps another positive will be that the weak dollar boosts the Fed balance sheet and in some small way spurs export competitiveness in the US, but these advantages will be short-lived and not deep enough to offset the deleterious consequenses (although talking heads will exaggerate these points by quantum levels).

The carry trade will soak up most of the excess, leaving a liquidity queeze between an ironic lack of dollars and burgeoning interest rates. Combine this with a sudden energy shortage as the US is faced for once with buying energy at a premium- something the rest of the world has had to do for the last 40 years.

Combine a lack of credit with steep interest rates and punishing energy prices, and you have the perfect recipie for a major deflationary dynamic.

Brave New World, Bitchez! Where's your burning glasses (to mix literary references)?

 

 

 

 

 

 

Thu, 11/06/2014 - 21:51 | 5422157 cnmcdee
cnmcdee's picture

Basically it's tying the bull up to a post and machete cutting it's throat and watching the blood squirt out.

If interest rates skyrocketed like they did in 1984 back to 20% it will be CARNAGE AND BLOOD - literally.  People will loose their homes and the housing market will loose 90% of it's value on TOP of the 40% haircut many experienced. 

It's why I live in Motels while on my week off from work camp.  I make lots of money and could buy a house - but I know I'm literally tying myself to the bull which is about to get slaughtered if I take a mortgage now.

I just ordered my micro wood stove and I spend *lots* of time in the bush honing survival skills and stockpiling food.

 

Thu, 11/06/2014 - 22:05 | 5422210 logicalman
logicalman's picture

Take out a mortgage on a 'home'

Pay it off.

Do you own it?

No.

You still have to pay rent (Property tax to the government)

That's on top of the fact you paid for the place 3 of 4 times, given the interest.

Want to move to another town?

Pay real estate idiots at both ends of the deal plus government fees?

Don't see the sense in 'buying' a house.

If I was to just walk from where I live, it would cost me a month's rent.

Whoop deee do!

 

Thu, 11/06/2014 - 19:15 | 5421660 itchy166
itchy166's picture

Its an attack on the US shale oil boom.  The Saudis upped their price to Europe and Asia...

Thu, 11/06/2014 - 20:47 | 5421978 sandhillexit
sandhillexit's picture

Because Biden flew over and asked them to lower prices.  Joe is a genius in his own mind.  They must have had a great laugh as he walked out the door.  "OKAY....he asked us to do it!"  "Our friends in Texas are pissed.  SO what!  It's a 3-fer.  We can crush Russia, Iran and Texas shale gas at the same time."  Biden has still got plans for 2016.  A much weaker shale economy in the US helps his cause, Texas down and Michigan up.  Holding the price up in Europe that was the tell.  Markets?  who needs markets.  It's who you know that counts.

Thu, 11/06/2014 - 20:35 | 5421940 Kirk2NCC1701
Kirk2NCC1701's picture

As if the Saudis don't have enough regional enemies already (Iran, Iraq, Syria, Yemen) and dare piss off the Russians, they have also pissed off a bunch of other Oil producers -- who have Motive (want higher prices), Means* and Opportunity to get even:  Canada, US Shale Frackers (especially in TX), Venezuela, African oil producers.

Would not be surprised if more "accidents" were to happen.  In fact, like most 'folks' here, I'd join the Schadenfreude community that would have a good laugh at the Saudi Wahhabi scum.

* Have funds to pay for the 'Means':  Top shelf Mercs.

Thu, 11/06/2014 - 22:00 | 5422190 Escrava Isaura
Escrava Isaura's picture

 

 

Kirk2NCC1701

US is the boss of the world.

Saudi Arabia is just an oil laundering, puppet.

 

The sheeple of the world ain’t seen nothing, yet.

They’re clueless of how bad things are about to get.

 

 

Thu, 11/06/2014 - 22:11 | 5422224 logicalman
logicalman's picture

Hopefully, one day, the right heads will roll in Saudi.

 

Fri, 11/07/2014 - 00:42 | 5422626 Free2Speak
Free2Speak's picture

Zaphod said:

"Saudi's decided this week to not only keep accepting dollars, but to require less dollars for the same amount of oil.

This is the wrong direction."

 

 

Unless they are demanding the difference in GOLD.

Fri, 11/07/2014 - 02:25 | 5422764 Lionhearted
Lionhearted's picture

It's simple. America is quickly dwarfing Saudi Arabia's oil importance with fracking and new discoveries. If they can keep the price of oil bellow the $77 break even point on fracking they can kill their competition, for a while. Although it's a losing strategy for them. If America can supply their own oil they no longer need Saudi oil. The deal is over, no more need to supply protection and say see you later to your 3000 room air conditioned mansion in the desert. The invisible hand of the market has spoken.

Fri, 11/07/2014 - 02:28 | 5422767 Lionhearted
Lionhearted's picture

It's simple. America is quickly dwarfing Saudi Arabia's oil importance with fracking and new discoveries. If they can keep the price of oil bellow the $77 break even point on fracking they can kill their competition, for a while. Although it's a losing strategy for them. If America can supply their own oil they no longer need Saudi oil. The deal is over, no more need to supply protection and say see you later to your 3000 room air conditioned mansion in the desert. The invisible hand of the market has spoken.

 

http://www.breakingnewsenglish.com/1308/130802-fracking-4.html

Thu, 11/06/2014 - 21:59 | 5422183 logicalman
logicalman's picture

Makes a real mess at the bottom of your safe!

 

Thu, 11/06/2014 - 22:30 | 5422280 Marco
Marco's picture

Guns are better than gold ... the house of Saud knows it's ever only one good fuck up away from counter revolution and with ISIS they fucked up really fucking hard, so their need for the US isn't going away.

Thu, 11/06/2014 - 18:52 | 5421567 Miggy
Miggy's picture

The US military complex is far too advanced for the Saudis to do something stupid. The central planners will cause a catastrophe in the US like take down the grid before we will see something like the Saudis making a major move from the dollar.

 

John 3:16

Thu, 11/06/2014 - 22:34 | 5422296 Marco
Marco's picture

The Saudis let themselved be coaxed into breathing life into ISIS (while the neocons were cheering on the sidelines). That they are stupid is a given, just because the US can sometimes point their stupidity in the "right" direction doesn't mean they can't be randomly stupid as well.

Thu, 11/06/2014 - 17:42 | 5421269 tarsubil
tarsubil's picture

What everyone should realize is that Ron was only able to say the things he did because he had something all other politicians in the US lack: bravery and some semblance of moral fiber. While he didn't single handedly take down the entire entrenched system including the banks and the military industrial complex, he did voice the truth without giving into intimidation or into temptations that would lead to blackmail.

[Edited as I might have been hasty in my interpretation.]

Thu, 11/06/2014 - 18:48 | 5421558 bbq on whitehou...
bbq on whitehouse lawn's picture

Ron Paul could have had the paper and seal on fort knox carban tested to see how old they were. He didnt.
Ron Paul could have done many things to kick off a fire storm but didnt, for reason only he knows.

Thu, 11/06/2014 - 19:13 | 5421644 Bioscale
Bioscale's picture

Maybe he did not want to get murdered?

Thu, 11/06/2014 - 20:48 | 5421979 ILLILLILLI
ILLILLILLI's picture

Oh, that!

Thu, 11/06/2014 - 22:21 | 5422240 Cathartes Aura
Cathartes Aura's picture

decades long career.

and family dynasty, aka Randy.

'bout covers it.

 

by the way, what is the Paul family stance on nine eleven?

Thu, 11/06/2014 - 20:37 | 5421949 Kirk2NCC1701
Kirk2NCC1701's picture

Many voices make a Choir, many drops make an Ocean, and you eat a Big Fish one bite at a time.

Think, plan and act accordingly.

Thu, 11/06/2014 - 17:42 | 5421278 trader1
trader1's picture

precious metals stocks are green today.

Thu, 11/06/2014 - 17:47 | 5421296 Mr Pink
Mr Pink's picture

Yeah, on up days they gain a half of a percent and on down days they lose 4%. At this rate, by spring I'm going to have to pay Sanford and Son to haul my silver to the recycling yard

Thu, 11/06/2014 - 17:57 | 5421335 LawsofPhysics
LawsofPhysics's picture

I'll send you the address for that yard.  Silver has numerous industrial applications...

 

...funny that you mention recycling.  I have a family friend that has three "shredders".  When all three are up and running, they make ~$17,000 per day.  Two guys driving front-end loaders just keeping feeding them, old cars, dishwashers, whatever.

They have been sending tons and tons of metal to...  wait for it....   China.

The kicker is that all operations have been idle for about a month now.  Apparently their Chinese contacts won't even return their phone calls.  Something is up.

Thu, 11/06/2014 - 18:40 | 5421515 Tinky
Tinky's picture

Very interesting anecdote. Thanks.

Thu, 11/06/2014 - 18:44 | 5421538 Calmyourself
Calmyourself's picture

I have an acquaintance doing the same business I am checking with him, where is this anecdotal information generally located in Conus?

Thu, 11/06/2014 - 22:36 | 5422298 MontgomeryScott
MontgomeryScott's picture

Don't be foolish about silver and what is happening. It has broken through the low price levels, and people are BUYING physical facter than it can be stockpiled.

http://www.reuters.com/article/2014/11/05/usa-mint-silver-coins-idUSL1N0...

I saw the floor limit published as about $12.53 or something.

http://www.bloomberg.com/news/2014-11-06/american-eagle-silver-coins-sol...

(just in case you didn't read the first article by the MSM on this)

PAPER, on the other hand, will be worth as much as paper ANYTHING is.

Thu, 11/06/2014 - 18:59 | 5421603 SuperVinci
SuperVinci's picture

"Silver has numerous industrial applications..."

+1

Supply is very numerous as well!

Thu, 11/06/2014 - 19:06 | 5421619 SuperVinci
SuperVinci's picture

"Silver has numerous industrial applications..."

+1

Supply is very numerous as well!

Thu, 11/06/2014 - 22:43 | 5422314 MontgomeryScott
MontgomeryScott's picture

Of course, in the event of a water landing, your aircraft is equipped with self-deploying individual pods which will protect you from drowning, shark attacks, and are equipped with a barcalounger and a cell phone (as well as a television). The supply of these 'waterpods' is as numerous as the number of passengers.

That's the story.

Good luck with YOUR bullshit story, SuperVinci.

Thu, 11/06/2014 - 20:26 | 5421899 Meatballs
Meatballs's picture

Huge steel glut in China.  Was discussed here in the last couple of weeks. 

 

Thu, 11/06/2014 - 22:49 | 5422330 MontgomeryScott
MontgomeryScott's picture

DAMN.

Do you mean to lell us that they're STILL trying to work through all the WTC steel from the Freshkills Landfill in New York?

I GOTTA get me over to WALMART! The wife wants some new wrought-iron patio furniture for next Spring...

Thu, 11/06/2014 - 18:26 | 5421451 EBT excepted
EBT excepted's picture

it comin' Gracie, da big one...

Thu, 11/06/2014 - 18:52 | 5421568 Uchtdorf
Uchtdorf's picture

Elizabeth. Gracie was from an earlier era.

Thu, 11/06/2014 - 23:01 | 5422358 MontgomeryScott
MontgomeryScott's picture

'You hear that, Elizabeth? I'm comin' to join you, honey!'

http://www.youtube.com/watch?v=stdi-1tIUhM

 

He's thinking of George Burns and Gracie Allen. I think television sets were a novelty back then, and they used vacuum tubes to modulate their outputted cathode ray displays. Broadcasters in the CONUS hadn't integrated 'living color' (and wouldn't do so for another decade or so).

Here's the premiere of season FIVE, which was actually filmed IN COLOR (extremely rare):

http://www.youtube.com/watch?v=uN7y4Sj9loI

 

 

 

Fri, 11/07/2014 - 08:33 | 5422779 Lionhearted
Lionhearted's picture

Would you rather buy PM's when the fiat dollar is worth more or when the fiat dollar is worthless? Thank God for the manipulated increase in the fiat dollar. Now I get MORE silver for a lower price. BTW ten years from now how much will it cost to print paper? Zimbabwe has a trillion dollar bill you can buy one get a Trillion dollar bill on eBay for 18 pieces of fiat paper.

Thu, 11/06/2014 - 17:44 | 5421289 takeaction
takeaction's picture

I think I have a good poop coming.

Thu, 11/06/2014 - 17:51 | 5421326 LawsofPhysics
LawsofPhysics's picture

Funny how those who speak the truth are suddenly "hated"...

< meh >

Some will have access to potable calories available for consumption, most will not.

same as it ever was.

Thu, 11/06/2014 - 19:19 | 5421681 OW My Balls
OW My Balls's picture

Brawndo = The Thirst Mutilator!

Thu, 11/06/2014 - 17:53 | 5421327 LawsofPhysics
LawsofPhysics's picture

Damn the NSA....

Thu, 11/06/2014 - 18:35 | 5421493 Armed Resistance
Armed Resistance's picture

How did you decide to use your dick size as your screen name?  Brilliant!

 

Thu, 11/06/2014 - 20:55 | 5422000 Oliver Klozoff
Oliver Klozoff's picture

Post of the Day.

Thu, 11/06/2014 - 18:46 | 5421542 kill switch
kill switch's picture

It's the dollar!!!

Thu, 11/06/2014 - 17:35 | 5421254 JustObserving
JustObserving's picture

All good things come to an end including the petrodollar.  All it takes is an attack on an important oil pipeline or an oilfield.  Saudi Arabia has many enemies and many will be glad to provide a coup de grace to Saudi oil production.

Thu, 11/06/2014 - 17:43 | 5421287 Winston Churchill
Winston Churchill's picture

I'm surprised it hasn't happened yet.

Putin has a few axes to grind with the house of Saud ,with the bonus of killing the petrodollar.

The fact it hasn't is also a signal.

Thu, 11/06/2014 - 19:02 | 5421609 trulz4lulz
trulz4lulz's picture

Just seen an article from an alphabet network about a russian computer virus. This particular virus attacks the infrastructure. Before todat, this was just a conspiracy as to this thing existing. Now its been announced to the public that these trojan horses do exist.

Thu, 11/06/2014 - 23:37 | 5422467 logicalman
logicalman's picture

But do you believe those who announce those responsible?

 

Thu, 11/06/2014 - 17:35 | 5421257 FreeShitter
FreeShitter's picture

Watch for Mushroom clouds first before the collapse.

Thu, 11/06/2014 - 20:43 | 5421965 Kirk2NCC1701
Kirk2NCC1701's picture

I suggest also watch your Dough-Lard supply.  You'll need both when TSHTF.

Pb, Brass and decent friends with brass balls helps too.

Thu, 11/06/2014 - 17:37 | 5421261 kchrisc
kchrisc's picture

The Zionist banksters plan on switching out the petrodollar with an SDR type currency. That way they can still squeeze blood from the bankrupt sheeple after the petrodollar goes supernova.

An American, not US subject.

 

"Save the world! Guillotine a bankster!"

Thu, 11/06/2014 - 17:46 | 5421294 agent default
agent default's picture

When the USD goes so does the US military.  Who will fight the wars for these scumbags in order to enforce their will?

Thu, 11/06/2014 - 18:13 | 5421394 LawsofPhysics
LawsofPhysics's picture

That's the problem I have with the "SDR".  America, myself included, is full of veterans, spouses of veterans, children of veterans etc. (the result of perpetual war without significant death by comparison to say WWII).  All of these people have wealth in various fiat and assets.  MOST have their wealth priced in dollars.

Go ahead, switch to the SDR and kill the dollar, go ahead, I triple dog dare you motherfucker.

Thu, 11/06/2014 - 19:08 | 5421629 crazytechnician
crazytechnician's picture

The SDR is a dinosaur. Buy 1 bitcoin for each member of your family. Yeah it's a lottery ticket all right but a better bet than holding 300 bucks in toilet paper with ink on it.

Thu, 11/06/2014 - 19:21 | 5421683 kchrisc
kchrisc's picture

With respect to you, and all other Bitcoin fans, but in the coming collapse the rule will be:

"If you don't got it, you don't have it." If you don't have it in your possession, and/or are depending on "the system," you are going to be rudely awakened, and sadly surprised.

An American, not US subject.

Thu, 11/06/2014 - 20:03 | 5421819 crazytechnician
crazytechnician's picture

Fully understand , but if the system fails to that point then metals won't be worth anything. At that point the only thing with any value will be secure shelter , food , water and clean air. That won't last long with total implosion of the system. Especially if the grid goes down , humanity is toast at that point. I think the current financial system will fold into a new digital system. Yeah it will be extremely painful but certainly not armageddon.

Thu, 11/06/2014 - 21:56 | 5422176 cnmcdee
cnmcdee's picture

That's why I'm training and preparing <now> while there is infrastructure to support the transition.

Living in the bush is one of the most empowering things you can do, and the most freeing and the most challenging.

It's like going into cold water - don't jump in wade in slow and climatize to the new climate.

Thu, 11/06/2014 - 23:48 | 5422494 logicalman
logicalman's picture

Are you sure about the 'not armageddon' bit.

If TSHTF and society completely breaks down, what happens to the (approximately) 450 nuke reacors spread across the globe?

We may have a front row seat to watch a mass extinction event.

 

Thu, 11/06/2014 - 19:16 | 5421665 kchrisc
kchrisc's picture

Actually, they won't switch the American people's wealth to SDRs, as their wealth will evaporate with the petrodollar. They will switch the debt the American people have into SDRs. If you can't pay in gold, Euros, or whatever, they'll come for the collateral and/or the debtor.

And for those thinking, "not possible," remember the ethnicity of those that own and run the government via power-junctions, especially the courts, and also own and run the banks.

An American, not US subject.

Thu, 11/06/2014 - 19:51 | 5421771 sleigher
sleigher's picture

I think that is what he meant by "go ahead, I triple dog dare you motherfucker."  

They can try and "take ownership" but I suspect all those "blades of grass" will have little billows of smoke rising from them.

Thu, 11/06/2014 - 19:41 | 5421750 Socratic Dog
Socratic Dog's picture

.gov gives not a rat's ass about veterans.  It has a history of killing them en masse.  Look up the Bonus Army.  Although wiki seems to whitewash the killing aspect.

https://en.wikipedia.org/wiki/Bonus_Army

Thu, 11/06/2014 - 18:18 | 5421415 Jack Burton
Jack Burton's picture

Special Drawing Rights are waiting in the wings to be brought out to recapitalize the planet as soon as the Petro Dollar falters. SDR is why the elites are long the stock markets. When all else fails, the SDR will ride to rescue manipulated markets, soverign debt, banks and the US war machine.

Thu, 11/06/2014 - 18:48 | 5421557 lasvegaspersona
lasvegaspersona's picture

JB

I don't believe the major producers of the planet will accept SDRs as they are just another worthless creation of the IMF. It is possible they could function as a medium of exchange but they will not be viewed as having any real worth except for support they might get as a tool to get trade done.

Thu, 11/06/2014 - 19:10 | 5421634 crazytechnician
crazytechnician's picture

SDR is just another paper Ponzi scheme. BTC is the future.

Thu, 11/06/2014 - 20:03 | 5421815 kchrisc
kchrisc's picture

I could point out a few obvious things about Bitcoin, but one stands out well above the rest:

The elites, and their instrument of violence, the DC US government, persecuted and robbed the people behind the Liberty Dollar. The Liberty Dollar, as a private "hard-money" currency, was, and is, being violently oppressed. Yet those same elites, and forces, support and push the "virtual-money" currency Bitcoin.

Though phrased as a statement, the above is really a question; a very important question. All embracing Bitcoin as a refuge should ponder that question well, and tread lightly.

An American, not US subject.

 

https://en.wikipedia.org/wiki/Liberty_Dollar

Thu, 11/06/2014 - 20:15 | 5421835 crazytechnician
crazytechnician's picture

The Liberty Dollar was a centralised system , wide open to attack. Bitcoin is totally decentralised , world-wide system and cannot be attacked by conventional means. In fact the only way to attack bitcoin is to take down the global Internet. Of course that may be possible but doing that would cost far more than allowing bitcoin to thrive. I don't agree that the Elites are pushing bitcoin , just that it has no real attack vector that they can actually target or push against. In fact bitcoin incentivises early adoption , so it's possible that the Elites , instead of attacking it may end up using it as a life raft. Average Joe blow at this point also has this opportunity if prepared to take some risk. Like I say it's a lottery ticket , there is no guarantee , just like there is no guarantee with metals or toilet paper with some ink on it,

You will find that many bitcoiners are serious stackers as well and are seriously informed as to what money / currency is or should be.

Fri, 11/07/2014 - 00:33 | 5422620 Rock On Roger
Rock On Roger's picture

I'm pretty sure bitcoin won't be accepted at Wonowon.

 

Alaska Highway

Thu, 11/06/2014 - 23:34 | 5422455 CrazyCooter
CrazyCooter's picture

You sir are correct. As I have posted before, BitCoin is a very elaborate ABG strategy designed and implemented by the elite.

ABG = Anything But Gold.

Regards,

Cooter

Thu, 11/06/2014 - 19:38 | 5421738 kchrisc
kchrisc's picture

"I don't believe the major producers of the planet will accept SDRs as they are just another worthless creation of the IMF."

With respect, but you need to go and research who runs things for their benefit. They are the ones that will decide who will or will not accept, or pay, in SDRs.

An American, not US subject.

 

Jews were THE founders of the NAACP in 1909 (Look it up.). What for? To instill the idea, meme, into the American people that judging a man's behavior is the same as prejudging his ethnicity. Why? What other group benefits by a "racism" wall against behavior accountability?

Thu, 11/06/2014 - 21:11 | 5422035 crazytechnician
crazytechnician's picture

How will retailers, shippers , end users , airports , merchants , banks , actually use the SDR system ? It's not like they can just install an SDR app. on their tablet , phone or sales terminal.

But they can with BTC !

Thu, 11/06/2014 - 19:08 | 5421632 SuperVinci
SuperVinci's picture

So after king $ dies, the reserve currancy, the savers are going to turn right around and accept new paper with a different name?

Can you elaborate how this all goes down?

Thu, 11/06/2014 - 19:52 | 5421782 kchrisc
kchrisc's picture

The petrodollar will die and take the American people's wealth with it. The banksters will come out and say that henceforth, all debts need be paid in SDRs and/or a currency from the SDR currency basket (An SDR is a basket of currencies.). The people will say, "Fuck you, the contract says 'dollars,' and we're broke." The banksters will say tough, pay in SDRs. Their pocketed judges will concur.

If one does not pay, they will take the underlying collateral, and/or the debtor.

We sort of saw a bit of that post 2007/2008. The banksters and their partners in crime, Wall St., were propped up by more fiat, and then they took possession of a bunch of homes, etc. Then they started to rent them out. In a post petrodollar world, the banksters will take your home that you can't pay on, and then rent it out to others.

Heads they win, or tails you lose. Unless we, the American people, turn the tide with guillotines.

An American, not US subject

 

My mantra: "Their heads, we win, or their tails in the wind, they lose."

Thu, 11/06/2014 - 21:05 | 5422025 css1971
css1971's picture

They will use the excuse of bringing "stability" to international markets.

You will continue to use dollars but key international trade will happen through and priced in SDRs, and the world will have been taken over directly by the banksters. The rest is inevitable.

The use of SDRs will increase and be used for increasing percentages of world trade.

Then there will be floating currency/SDR pairs traded freely.

Then notes and coins will be created.

Then countries will abandon their local currencies to use SDRs directly at a local level.

At this point, the one world parliament will be created and the one world government instated with the IMF as the world central bank.

 

20 Years? 40?

Thu, 11/06/2014 - 22:38 | 5422307 petkovplamen
petkovplamen's picture

more like 5 to 10  years, tops.

Thu, 11/06/2014 - 20:56 | 5422008 Kirk2NCC1701
Kirk2NCC1701's picture

Jack, you sound a bit like a Jim Rickards convert -- which I was also, for a while.  The thing is...

Given that the SDR is composed only of the Top 4 Western currencies (USD, EUR, JPY, GBP), it will have a bitch of a time to force itself onto the rest of G20.  If the BRICS are just "playing along", they sure are putting on one hell of a show -- that's hurting them more than it hurts the US, UK or Japan.  Therefore... this is no "show":  their pain is real, and the consequences will get more and more real, more and more painful.

In the Future... All money/currency will be backed by Precious Assets:  Precious Energies + Precious MaterialsIt is the ONLY currency model that is acceptable universally and sustainable indefinitely.  All else is not.  The only thing that's TBD is the "When" and "How".  In the meantime, everyone is jockeying for position at the G20 Monetary-Model Table.

I'm hedging accordingly:  ASSET DIVERSIFICATION, RESILIENCE and RISK MITIGATION.  Others may stick to their "One-Trick Pony" model, if they wish.

Thu, 11/06/2014 - 23:38 | 5422470 CrazyCooter
CrazyCooter's picture

ZH topic from a while back; the Agri-Dollar.

http://www.zerohedge.com/news/2012-11-24/goodbye-petrodollar-hello-agri-...

I think this one of the best post-PetroDollar thesis I have seen, but only because (1) it is not gold and (2) we use all our oil.

Of particular note; countries who import all their food ...

Regards,

Cooter

Thu, 11/06/2014 - 23:57 | 5422526 VWAndy
VWAndy's picture

One shot if we are lucky. We might not get another shot for hundreds of years. Generational continuity, they are weakest at the switch over. Thats the moment.

Thu, 11/06/2014 - 19:21 | 5421686 Stares straight...
Stares straight ahead's picture

It will happen on a weekend...

Thu, 11/06/2014 - 17:37 | 5421262 trader1
trader1's picture

should we also watch

a story about neighbors helping neighbors?

(open question.i'd like to see the best win with happy ending for all.)

from der Spiegel:

Indeed, the real test for the people here is yet to come. If the blast furnaces, steel works and coke plants remain out of operation this winter, tens of thousands of people could lose their jobs. If that happens, it will make it harder for separatist leaders to continue to direct the collective discontent at Kiev given that they were the ones who cut ties with the rest of the country.

The government of the People's Republic has announced its plan to establish its own state bank as well as an academy of sciences. But the establishment of real state structures isn't really moving forward, particularly given the lack of economists among the leadership. Prime Minister Alexander Zakharchenko, who mostly makes appearances in combat fatigues, is considered to be a military man through and through.

Growing Disputes

In addition, the disputes between leaders in Donetsk and Lugansk are growing -- a development Moscow views with dismay. Their citizen militias are disintegrating into different groups that are each pursuing different agendas. Some are refusing to recognize the leaders of the People's Republics and others don't want to accept the terms of the Minsk Protocol. One of the biggest problems is the Cossacks, who control 80 percent of the Lugansk region and have now proclaimed their own state, the Lugansk Democratic Republic. The situation in Lugansk itself is especially complicated given that the city is partly under the control of criminal gangs.

Resistance is even stirring in Donetsk. Three weeks ago, a party calling itself "New Russia" held a protest in the city center and pilloried leaders of the separatist republic for agreements they had made with Kiev. Speakers at the demonstration said the cease-fire must be ended immediately and that attacks against Ukrainian positions should resume.

A short time later, assailants perpetrated an assassination attempt against New Russia's leader, who as recently as this spring had been the "people's governor" of Donetsk. Afterwards, the election staff of the separatist prime minister were attacked, allegedly by fighters answering to a commander based in the city of Horlivka some 50 kilometers away. The commander also refuses to recognize the government in Donetsk.

"It is difficult to find someone within the territories of the People's Republics with whom one can bargain," the Russian magazine Ogoniokwrote last week. And that goes to the heart of Putin's biggest problem. As long as there is no one in charge in Donetsk who can be taken seriously, it will be impossible for Kiev to take up talks with the breakaway regions. Nor will it be possible to establish peace.

The aim of elections in the Donbass region on Sunday had been to tackle this problem and to provide Zakharchenko with the appearance of at least a modicum of legitimacy. But in contrast to the independence referendum in May, very few even seemed interested in the vote in the days immediately leading up to it.

So few that the rebel election commission announced just before the poll that not only residents, but also "internationalists" from Russia could cast ballots -- the very people "who came here to defend Donbass freedom with weapons in their hands."

Thu, 11/06/2014 - 18:32 | 5421476 Volkodav
Volkodav's picture

BS

Zakharchenko carried big vote (79%) in big turnout.

Kyiv there was the weak support for all choices...

Fri, 11/07/2014 - 16:50 | 5425011 trader1
trader1's picture

...not only residents, but also "internationalists" from Russia could cast ballots -- the very people "who came here to defend Donbass freedom with weapons in their hands.

Thu, 11/06/2014 - 18:32 | 5421484 Jack Burton
Jack Burton's picture

This is quite simply a German Media story. The recent news that German media is largely controlled by US State Department and American intelligence agencies is no surprise to readers of German press. The above article is very well written, and nearly completely lacking in sources. It reads like what I would write were I working for the US State Department. What makes this article stunning is not what it says, with no source to back it up, BUT what it does not say!

No mention of refugees streaming into Russia, many of the unemployed whom the article pins great hopes on swinging towards Kiev, are already with their familes in Russia as refugees of months of deadly shelling, bombing, ballitic missile strikes and Air Attacks on civilian housing, schools and hospitals. Nearly a million working families have left under Kievs relentless attacks. So, NO, these people will not be swing Kiev's way when the steel works don't open.

As for the completely fragmented so called rebels. Surely that is some kind of joke. Perhaps 1/4 of that was true in early August. But early August is over, the rebels have united into a Novorussian united army, with common leadership, but seperate battle fronts. Two elections have been held and confirmed as free, open and fair by international observers. The 1 st declared a desire for independence, check!, the second has had an even bigger turn out and has selected leaders by the ballot box. So, sorry, no disunity there.

To be blunt, this German article reflects the German media's slavish control by the US State department and even intelligence organizations as recently revealed. US corporate control of media extends well into Europe. This same paper declared Russia had shot down the Malaysian plane, which German intelligence services have gone PUBLIC is clearing Russia of any and all involment. This is simply a CNN type story, written to make it look good for Kiev. I can guarantee you that nobody in east Ukriane is going to swing to Kiev, in fact, no force on earth will ever be able to make those people live under Kiev rule.

It is sad that the usual liar media is published as if it was real news, and not out and out propaganda and lies. I suggest the entire article is well written, and devoid of any substance but America's dream wrold fanatasy of East Ukrainians begging to be ruled by America. Via the puppets of Kiev. If anything, Kiev may soon be visited by a united army, aimed to throw America's Nazi puppets into the river.

Thu, 11/06/2014 - 20:27 | 5421900 Idaho potato head
Idaho potato head's picture

JB if I could help I would, I have a nephew fighting in the east. My prayers are with him.

Thu, 11/06/2014 - 22:30 | 5422284 Thanatos
Thanatos's picture

You may know this already, but if not it should be intersting to you.

Not really a Alex Jones fan, but I couldn't find this video anywhere else..

Its not alex jones, its an internal pentagon presser.

They (DoD) basically say that they are going to take over all the "alternative" media via a limited-truth telling hijack.

Once the hijack is in place, they can start injecting their propaganda.

Watch the video for yourself.

http://www.infowars.com/government-promises-to-stop-lying-under-drudge-r...

Thu, 11/06/2014 - 17:41 | 5421280 Rainman
Rainman's picture

Oblameo didn't build this, but he sure knew how to take the entire region into a whole new level of fuckedupedness. Hoax and chains, comrades....hoax and chains.

Thu, 11/06/2014 - 17:44 | 5421286 Gringo Viejo
Gringo Viejo's picture

Stack. Measure your wealth in ounces. If you think about it, the fiat cost of an ounce is irrelevant.

Thu, 11/06/2014 - 17:50 | 5421311 yogibear
yogibear's picture

The COMEX on their Ponzi fractional physical game. 

Thu, 11/06/2014 - 20:45 | 5421973 css1971
css1971's picture

grams and kilograms.

Cmon people get with the 21st century.

Thu, 11/06/2014 - 23:52 | 5422515 logicalman
logicalman's picture

1oz is easier to type than 31.103grams

Thu, 11/06/2014 - 17:47 | 5421298 yogibear
yogibear's picture

Someone should to make the COMEX implode with all their fractionaly owned physical.

Buy loads of contracts and demand delivery of the PMs at a time when mines are closing due to  low prices.

 

 

Thu, 11/06/2014 - 18:28 | 5421455 RaceToTheBottom
RaceToTheBottom's picture

Since they have the power to kill the Comex, but don't, what does that mean?

Does that mean they are waiting or does that mean they want the Comex alive?

Thu, 11/06/2014 - 17:55 | 5421331 Irishcyclist
Irishcyclist's picture

Soberlook.com presented an interesting analysis a couple of weeks ago, about how long Saudi can absorb lower oil prices circa $83.

The analysis quotes Deutsche Bank which estimates that Saudi has a sufficient buffer to absorb low oil prices for the next 7 years!

http://soberlook.com/2014/10/the-saudis-have-staying-power-to.html

 

 

Thu, 11/06/2014 - 17:55 | 5421341 p00k1e
p00k1e's picture

That Ron Paul is a crazy old codger!

He said it, “when oil-producing countries demand gold, or its equivalent”.

1. The U.S. is now an oil producing country.
2. Oil-producing countries already demand an equivalent, dollars!

   

Thu, 11/06/2014 - 18:38 | 5421509 lasvegaspersona
lasvegaspersona's picture

Pookie

The first payment for Saudi oil was in gold coins...32,000 of them. It is said the king counted them himself...the Saudis still recognize the role of gold.

Fiat works fine for the money they plan to spend but for long term preservation of wealth...they still demand gold.

Thu, 11/06/2014 - 19:36 | 5421722 lakecity55
lakecity55's picture

Yet people do not understand the Arabs know exactly what gold is. They all have a stash.

Thu, 11/06/2014 - 18:51 | 5421566 Dinero D. Profit
Dinero D. Profit's picture

I too am a crazy old codger, and I like Ron Paul's attitude.  Maybe I'll meet him some day at a rally protesting the next war.

I am fond of anti-war marches, I enjoy the comraderie.  The protests don't change a damn thing, but I protest as a matter of principle.  It's like fresh air on the soul.

Peace and Love, Ron.  Keep making your pitch.  Sleep well.

 

Thu, 11/06/2014 - 19:13 | 5421653 SuperVinci
SuperVinci's picture

"already demand an equivalent (to real gold), dollars!

 

BWAAAAAHAAAAAAAHAAAAAAAAA!

Funniest inane comment ever!

Thu, 11/06/2014 - 19:39 | 5421744 Lea
Lea's picture

"2. Oil-producing countries already demand an equivalent, dollars!"

Re-read the article. The dollar is not backed by gold. It's not an equivalent.

Thu, 11/06/2014 - 21:04 | 5422020 Kirk2NCC1701
Kirk2NCC1701's picture

Do you have to 'work' at these ridiculous claims, or do they come naturally to you?

You should know that, ultimately, only currencies that are backed by something EVERYONE values and trusts will be accepted universally. 

Else you'll have to use Shock & Awe.  And we all know how well that's working.

Thu, 11/06/2014 - 21:23 | 5422053 Savyindallas
Savyindallas's picture

deletd

Thu, 11/06/2014 - 21:24 | 5422056 Savyindallas
Savyindallas's picture

Didn't Shock @ Awe work  -for about a week? 

Thu, 11/06/2014 - 17:58 | 5421349 Time for Titus
Time for Titus's picture

Ha ha. Nice false flag set up in place by ABC.

"A destructive “Trojan Horse” malware program has penetrated the software that runs much of the nation’s critical infrastructure and is poised to cause an economic catastrophe, according to the Department of Homeland Security.

National Security sources told ABC News there is evidence that the malware was inserted by hackers believed to be sponsored by the Russian government, and is a very serious threat."

http://abcnews.go.com/US/trojan-horse-bug-lurking-vital-us-computers-201...

Thu, 11/06/2014 - 18:40 | 5421525 lasvegaspersona
lasvegaspersona's picture

Only a few americans would believe DHS.

The good thing about falling apart now is that we are doing it at a time of extreme distrust in government. I don't see americans rising up demanding more government. they will be pissed and expect some government help but most know how useless the Feds really are.

Thu, 11/06/2014 - 18:56 | 5421554 MarkAntony
MarkAntony's picture

And now, without further ado, we bring you World War Three!!!

 

This feature presentation is brought to you by the gracious Obummer Foundation. Supplemental financial support provided by The New Republican Congress and its affiliates.

We hope you enjoy our feature presentation on this and other PBS channels...

Thu, 11/06/2014 - 19:34 | 5421718 lakecity55
lakecity55's picture

NATO probably has a malware program installed on the Russians' systems too.

Thu, 11/06/2014 - 20:24 | 5421896 trulz4lulz
trulz4lulz's picture

Those darned Ruskies again!

Thu, 11/06/2014 - 22:27 | 5422268 e_goldstein
e_goldstein's picture

or it's Stuxnet.

Thu, 11/06/2014 - 18:01 | 5421360 Dapper Dan
Dapper Dan's picture

Very few americans understand what happened on Aug 15, 1971  

go  head, axe dem.

 

 

http://fofoa.blogspot.com/2010/04/gold-money-more-than-meets-eye.html

GOLD & MONEY: More Than Meets the Eye

by Aristotle The estimable economist Milton Friedman stated his forgettable opinion in 1974 that OPEC would collapse and oil would never get up to $10 per barrel. In all fairness to Professor Friedman, we must recognize his position as coming from a staunch monetarist, emphasizing money supply as the "true religion" for the Federal Reserve to keep the US Dollar as good as Gold. At times, he half-seriously argued for the abolition of the Federal Reserve in light of the simple monetary policy guidelines that could serve in its stead, with the economy returning to a state of self-regulation. Milton's mistake was two-fold. First was his knowledge that Arabian oil could be produced for one dime of real money, and that inevitable competition among OPEC members would surely keep the price close to cost of production. Second, and most importantly, Milton failed to account for the possibility that the government would abandon such reasonable monetary management to keep the dollar nearly as good as Gold. This fact was NOT lost, however, on the oil producing countries. read more at link
Thu, 11/06/2014 - 18:07 | 5421372 mayhem_korner
mayhem_korner's picture

 

 

ONE Saudi contract settled in something other than USD and the game ends. 

Put your car, your pink and blue pegs, your Fire Insurance, and your Share the Wealth cards on the space marked Poor Farm.

Fri, 11/07/2014 - 15:21 | 5424648 Monty Burns
Monty Burns's picture

"ONE Saudi contract settled in something other than USD and the game ends. "

Maybe it ends for the Saudis via another war of liberation and some humanitarian bombing.

Fri, 11/07/2014 - 15:21 | 5424649 Monty Burns
Monty Burns's picture

"ONE Saudi contract settled in something other than USD and the game ends. "

Maybe it ends for the Saudis via another war of liberation and some humanitarian bombing.

Thu, 11/06/2014 - 18:16 | 5421410 limacon
limacon's picture

Wait a bit . This catastrophe thing is getting too far ahead of itself .

The petrodollar is halfway dead . 

That is why the oil price is so anemic . 

A lot of demand is not made in dollars . 

Simple .

 

This baby is still live and kicking .

And it does not need a stimulus now the little monetary tiff between Japan and US has ended (sort of)

This is good !

Taking in each other's washing is working .

See

https://www.academia.edu/9160541/Laundry_Economics_

or

http://andreswhy.blogspot.com/2014/11/laundry-economics.html

Thu, 11/06/2014 - 18:22 | 5421430 Herdee
Herdee's picture

It's probably the reason why the Republicans want the XL/Keystone Pipeline project to come down from Alberta,Canada.There's more oil than Saudi Arabia has and it's right next door with a friendly country north of the U.S. There's no reason why North America can't be energy self sufficient.Only Obama stands in the way of that.Eventually the goal is to hook in everything coming down from Alaska.As well,Canada's Arctic region holds vast amounts of oil just like Russia.

Thu, 11/06/2014 - 19:09 | 5421628 OceanX
OceanX's picture

Maybe you should learn the difference between tar sand and crude.  Additionally, the difference between: resoure, reserve and proven reserve

...that may alter your opinion,  Oh yeah and EROI,

Thu, 11/06/2014 - 21:12 | 5422034 flapdoodle
flapdoodle's picture

Call me a cynic but I always assumed the opposition to the Keystone project was fake. The idea was to extend building it into the future, as a reserve (also to placate the Saudis that it would not be competition for their oil)

If there is an abrupt end to opposition to Keystone, in my mind that means that TPTB have concluded that its time to use this reserve - there must be real problems up ahead with supply or transportation, or both. Perhaps the big fraud that is shale oil starts running out of steam, Saudis go tits up, etc...

I see it as the equivalent of the reserve gas tank light blinking on should we see the keystone pipeline start to gain momentum...

Fri, 11/07/2014 - 00:20 | 5422591 Rock On Roger
Rock On Roger's picture

Fuck Keystone.

We'll refine our own oil.

The humans of earth have had enough of USA

Stealing resources.

Thu, 11/06/2014 - 18:29 | 5421458 EemieMeanieMinieMoe
EemieMeanieMinieMoe's picture

Endeavor to persevere.......

Thu, 11/06/2014 - 18:31 | 5421466 lasvegaspersona
lasvegaspersona's picture

In 1983 Dr. Paul and Fed member Charles Partee had a debate. Partee was for using gold as an indicator of sentiment towards the currency and Paul was for a return to the gold standard.

https://www.youtube.com/watch?v=kcm8VvBcUdE

I think Partee had the correct view and even then Dr. Paul recognized some of the many problems a return to the gold standard would cause. 

The ECB has adopted the use of gold more in a manner in line with Partee. I hope Dr. Paul has looked at this issue again. He is the most prominent voice in the country when it comes to gold and the views are close enough that I believe he could support the use of gold, on the balance sheet, marked to market as the ECB does.

It is really a good method that allows gold to float free of the currency even if the printer decides to print more currency that it should. A gold standard allows the government to decree the price of gold and governments don't like gold...ask Dr. Paul..or Alan Greenspan...it is true.

Thu, 11/06/2014 - 18:33 | 5421486 NoWayJose
NoWayJose's picture

If you were an oil exporter to Japan, and you saw the effects of Abenomics - would you really want to negtotiate prices in Yen?

Thu, 11/06/2014 - 18:40 | 5421519 Phuk u
Phuk u's picture

Dapper, theres a lot of reading in that piece, too much for

my highlighter pen but summarising if we kept to a gold standard

a dollar would be worth a dollar and the price of a barrel would

be a lot less than it is. Now with all this QE floating around oil and PMs

are going down in value whereas 'stawks' are going up. WTF is going on ?

It is bewildering.

Thu, 11/06/2014 - 18:39 | 5421521 jacship
jacship's picture

COMING SOON TO A COUNTRY NEAR YOU

Thu, 11/06/2014 - 18:46 | 5421548 Duc888
Duc888's picture

lasvegaspersona: The good thing about falling apart now is that we are doing it at a time of extreme distrust in government. I don't see americans rising up demanding more government.

 

You'd be surprised at the dickheadedness of some libs.  Really.

Thu, 11/06/2014 - 18:53 | 5421570 lasvegaspersona
lasvegaspersona's picture

I talk to about 15 to 20 patients daily. Even my black patients are starting to say...Obama who?

Putin rates higher than Congress (but so do bedbugs...so not sure what significance that has...

When people see where the government has let this go they will not likley be too supportive. the government employees who have just lost their jobs will be angry too.

Thu, 11/06/2014 - 18:55 | 5421583 kill switch
kill switch's picture

 

The Saudis are in a quid pro quo with the Amerikkans to oust Assad in Syria,, as a reward they will lower the price of AMERIKKAN oil,,,and increase the price for Russia and China...Has nothing to do with demand destruction...They want to fuck China and Russia....Good Luck!!!

Thu, 11/06/2014 - 18:59 | 5421597 lasvegaspersona
lasvegaspersona's picture

They can only fuck russia and china in dollar terms. If those two just want to trade and do it without dollars they could overcome any pressure from the Saudis.

Thu, 11/06/2014 - 19:24 | 5421693 kill switch
kill switch's picture

Remenber I said GOOD LUCK!!!!!!

Fri, 11/07/2014 - 00:13 | 5422573 Rock On Roger
Rock On Roger's picture

What does Russia need to buy with american fiat?

Fri, 11/07/2014 - 20:04 | 5425697 kill switch
kill switch's picture

 

It's not a question of need but of strategic procurement with all the t's they own!!

Thu, 11/06/2014 - 18:54 | 5421584 teslaberry
teslaberry's picture

THIS ARTICLE SAID NOTHING NEW. 

Thu, 11/06/2014 - 20:39 | 5421952 css1971
css1971's picture

True. But sometimes they set up a series of articles with a reminder. Like a 1 -  2 jab cross combo.

For example:

 

ISIS reaches Saudi border:

http://english.alarabiya.net/en/views/news/middle-east/2014/06/27/ISIS-h...

 

And all of a sudden, oil pipelines are exploding:

http://www.zerohedge.com/news/2014-11-05/isis-sabotage-saudi-stocks-curr...

 

No not a terrorist attack. Just an accident. Nothing to see here, move along move along.

Thu, 11/06/2014 - 18:57 | 5421588 lasvegaspersona
lasvegaspersona's picture

GLD inventory is down 9 tons in less than a week.

It seems to be resuming the losses it suffered in 2013. Again we ask...where is this gold going. They still have slightly more than half of the peak but it is going fast and this hoard is the only large stash outside of central banks and perhaps a few hidden tons amongst the elite.

Thu, 11/06/2014 - 20:24 | 5421895 Manipuflation
Manipuflation's picture

I agree with your premise but they do not have the metal.  We have the metal.  What the fuck will these assholes do about that fact?  If they say they have the metal then let us see it. 

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