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Is This The Next Dollar Peg To Fall?
On Monday, we showed you the dramatic visual evidence in support of Kazakh PM Karim Massimov’s contention that "at the end of the day, most of the oil-producing countries will go into the free floating regime [including Saudi Arabia and the United Arab Emirates because] for the next three to five, maybe seven years, the price for commodities will [not] come back to the level that it used to be at in 2014."
Expectations for an FX regime change in Saudi Arabia in the face of a ballooning budget gap and the first current account deficit in a decade are readily apparent in riyal 12-month forwards and just to drive the point home, have a look at the following, which shows that anticipation for a dirham deval is running at a veritable fever pitch:
For more on the genesis of the "new era", see "Why It Really All Comes Down To The Death Of The Petrodollar."
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Petrodollar death........sheeesh
as long as the antichrist gets it in the head
Gaudy Saudi's...
I'm sure the Saudis (scum sucking psycho terrorist fucks that they are who deserve to have their backyards turned into glass parking lots) want some revenge for having all their gold stolen that had been stored in London which is now most likely residing in China. They deserved it. But they still could cause major damage to the petro-dollar. They could end it completely.
Ready for WWIII, folks?
Long cans of baked beans. ;-)
They will end it completely by soon agreeing that China, it's largest customer, will buy crude in CNY.
you can't rape the willing
I'm with you, it's coming apart. The oil producers can't get the oil back high to make money so they have to go for broke and Saudi has hurt themselves and lost all their gold and their investments of the petrodollar are worth what the US will allow them to have.
Serves the fuckers right.
Remember 73!
I hope that Saudi Arabia collapses soon in tribal warfare. It is the epitome of what the top 0.01% want to make the US, a country ruled by princes and businessmen in which the ordinary person has no voice, no hope and no future. Migrant workers, brought to SA by instability that it has itself created by funding terrorism, are even worse off.
Were I the President, I would use the Fifth Fleet (stationed in the Gulf, currently to protect these corrupt kingdoms) to give all of the Gulf emirs and kings a wake-up call.
I figured it was only a matter of time before they ended up poor as Spain did after they ran out of silver from the Americas.
If sand was money, they would still spend themselves broke.
Inquisitions are expensive, you have know idea what it cost to outfit a torture room and a dungeon, a rack alone will set you back 10 Doubloons.
The later Bush can confirm that. He's personally signed-off a hell of a lot of fully furnished torture chambers all over the planet.
Saudi Arabia is remarkably similar to the US. In both instances, there is a royal class who siphon off the wealth of the country and use if for themselves, leaving just enough for the general population not to revolt.
<< Inquisitions are expensive >>
That's exactly why the Saudis don't bother with expensive trials or torture rooms. They simply catch their prey, drag them to the center square, and behead them.
No fuss, no muss. It's cheap too.
Reminds me of my pastor at the church I went to in college. He was doing missions over in Iraq, and while touring a mosque the imam brags about how Moses and Adam are buried there. So the pastor asks how that can be (In the Bible, Moses's last whereabouts are unknown, but many miles to the west at minimum). Next thing he knew he was in the trunk of a car, with the driver stopping at the house of each of the elders to decide what to do with him. In the end they dumped him out in the desert outside the city.
Someone else in the same group was less lucky, so they decided to stop operations after that. It's serious business over there.
As someone outside this particular paradigm, what I hear you saying is that your guy who believes in fictional characters was arguing with other guys who believe in fictional characters, about where a fictional character was buried. And someone got killed over it.
No, they used real characters, to write their fictions.
Can there be any doubt that hell exists? Just immagine having to sit at the Clinton's (stolen from the white house when they left dead broke) breakfast table.
In the Hamptons.
I wouldn't wish the Clinton's special kind of hell on anyone.
How ever the Obamas may have purchased a similar model.
Dem ragheads do not tolerate any difference of opinion. There is one "truth" and that is whatever they say.
Yo all try saying sumfing different................... Just be glad yo all still around to read this.
Crazy ragheads. "I am the way and the truth and the life. No one comes to the Father except through me." - Jesus
And Brawndo.
Well that's one way to make sure to get some inflation in the system; make sure the whole world rejects your fiat.
The Saudis are getting their asses kicked in Yemen.
See "How The Saudi/UAE Invasion Of Yemen Fails" at http://www.moonofalabama.org/2015/08/how-the-saudiuae-invasion-of-yemen-...
Lots of links to Houthis infantry with anti-tank weapons taking out Saudi and UAE armor. https://www.youtube.com/watch?v=RtOmEeeW7Lc
The Houthis are even on the offensive inside SA
"Around Jizan in Saudi Arabia, former Yemeni territory, a Saudi engineering platoon was ambushed in leafy terrain (video 3 min, photos). One M88A1 armored recovery vehicle, 1 M2A2 infantry fighting vehicle, 1 Al Shibl armored fighting vehicles, 3 armored bulldozers and 1 smaller tactical vehicle were destroyed."
Saudi soldiers? What a laugh. Laziest folks on earth....just want to hang at the mall.
Imported folks do all the labor so Saudis have forgotten how to do anything. As the country goes BK it will be fun to watch the boys shrivel up.
Shia versus Sunni. Stay tuned. There is more of this story to come.
shitties vs the snotties
Saudis are Wahabi. In some ways more radical than shiites and certainly suunis.
1 smaller tactical vehicle was destroyed.
Oh stop it. They killed a camel. Just admit it.
Kind of funny how there were no Saudis present. Looks like they all got out and ran.
I wonder how this will all play out in the long run. Resource-rich countries will still have something that other countries need. Will a worldwide barter exchange emerge from the ashes of several "currencies" that are trying to balance out against each other? A world standard for oil could be agreed on by OPEC - such as X number of bushels of grain per barrel, or one tonne of copper ore could be the equivalent of one roll of sheet steel. I guess eventually the CX (currency exchange) can have a tote board with equivalents that any supplier of commodities or finished goods could derive an exchange from. How many bushels of corn for that hot-rolled steel? Well, how many barrels of oil would that steel cost - and then extrapolate from there.
Or, maybe we'll all descend into a Mad max scenario.
+1. That is a fair assement. I don't know either but the USD is WAY overvalued making other currencies look cheap. I am not sure which one to pick but USD shit has to change. I am not so sure I want to play but I see it.
Gold might figure in there somewhere...
Nah. i-phones will be the new currency. Or maybe twitter likes, or some such.
1,000 happy faces for that ton of ore!
So I am not the only one seeing this? Where is the best place to buy foreign currencies? How do you folks do it? I don't know where the best deal is and I know what I want to buy because none of this USD valuation bullshit can continue on. We are on full retard alert.
I am personally Long Dong.
It's a hard currency.
The dirham, by the way, is the currency unit of the United Arab Emirates, in case nobody has ever heard of the stupid little thing.
And I thought ham was illegal in the ME.
It's the currency I get paid in...free of income tax.
I convert the balance of my current account into gold as frequently as achievable. Have done so for 8 years.
Do you use the little gold ATMs?
No. Premiums are too high...and they don't dispense my preferred medium of 1kg bars.
Www.gold.ae works just fine.
What ar you going to do when TSHTF and you need to get out of the UAE quick smart. How on Earth are you going to get out of the UAE with any of your gold!!
Have you got a yacht?!? They certainly won't let you fly out of there with it!!
Same here, although i am contemplating buying USD in the short term until it goes supernova and then unwind back into AED and Gold. Anyone got other suggestions?
Gold now.
Gold tomorrow.
Gold next week.
Gold while the USD(AED) is strong and Au/ Ag has been manipulated down by toilet paper ETFs.
Assuming also that you have a mortgage-free house with a big garden. If not, then you need one of these also.
"...for the next three to five, maybe seven years, the price for commodities will [not] come back to the level that it used to be at in 2014."
When nations embark on currency devaluation (the U.S. included), do not people begin to look for real things to put their money in?
people in venezuela, were buying flatscreens, refrigerators, washers and such. their motivation had evolved from what to invest savings in, to what can I get for these shit pesos right now.
surely the more countries deval, the more "normal" the end correction will be, just leaving the US dollar ridiculously overvalued in the end.
spot is 3.673. 12mo fwd is 3.6836.
0.3% difference. Hardly expectation of any meaningful devaluation.