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Another Petro-State Throws In The Towel: The Last Nail In The Petrodollar Coffin

Tyler Durden's picture




 

Submitted by  Eugen von Böhm-Bawerk  of Bawerk.net

Another Petro-State Throws In The Towel - The Last Nail In The Petrodollar coffin

Source: Norwegian Ministry of Finance, Bawerk.net

According to the proposed budget submitted by the current ‘blue-blue’ government the Norwegian deficit will reach another record high in 2016. Mainland taxes are expected to bring in 1,008 billion NOKs, while expenditures are estimated at 1,215 billion NOKs. In other words, 2016 will be another year of record mainland deficit which need to be covered by the offshore sector and its 6,900 bn NOK sovereign wealth fund (SWF).

While record mainland deficits covered by the petroleum sector is nothing new in Norwegian budget history, on the contrary it is closer to the norm, the 2016 budget did raise some eyebrows. The other side of the ledger, the net inflow to the SWF from activities in the North Sea will, again according to budget, be lower than the required amount to cover the deficit. This has never happened before and is testimony of the sea change occurring in the world of petrodollar recycling. Interestingly enough, the need to liquidate SWF holdings is helping to create further deflation in the Eurodollar system in a self-reinforcing loop.

As Eurodollar liquidity dries up and consequently pushes up the price of actual dollar (note, Eurodollars are international claims to domestic US dollars but for which no such dollars actual exists) the problem for petro-states compounds. One way this manifest itself is through international purchasing power of prior savings. A SWF as the Norwegian was created through a surplus of exports over imports meaning it can only be utilized through future imports over exports. When the Norwegians look at their wealth expressed in Norwegian kroner it all looks fine, but expressed in dollars the SWF has shrunk considerably in size. Thus, the surfeit imports expected by the Norwegian populace cannot be met. Norway rode high on a wave of liquidity which pushed up commodity currencies, leading Norwegians to consume more imported goods today, without realizing they were tapping into the principal of their future. When the tide turns the gross misconception is revealed.

Source: Norwegian Ministry of Finance, Central Bank of Norway, Bawerk.net

The Government claims it is all fine though. The current down-cycle will, according to them, end early 2016 so despite a 2 percentage point reduction in corporate- and personal income tax, mainland tax revenues are expected to increase 1.9 per cent.  That is obviously a pipedream, just as the expected 17.9 per cent increase in interest and dividend income which will make sure the SWF continue to grow at a healthy pace despite the massive mainland deficit.

Assuming oil prices remain low, mainland tax revenue will plummet as they are very much a function of what goes on offshore, while expenditure will rise as they do in all welfare states during a down cycle.

If we are right, a global recession is imminent, meaning the expected increase in dividend income will never materialize.

In other words, the drawdown of the SWF will exceed its inflow even after adding financial income flows. The last remnant of the petro-dollar will thus die in 2016.

For a country 100 per cent dependent on continued leverage in the Eurodollar system the absolutely best case scenario is for the US economy to grow just slowly enough for international monetary policy to again realign; reducing the value of the USD through continued ZIRP in the US.

Robust growth in the US will prompt Yellen to hike, spiking the dollar (as Eurodollar claims scramble for actual dollars) while paradoxically a recession in the US will lead to the exact same outcome. The goldilocks scenario of 1-2 per cent growth is the best that the Norwegian government can hope for. It will minimize the gap between the lies and propaganda spewed out by the Ministry of Finance and reality.

 

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Fri, 10/09/2015 - 17:48 | 6650784 Latina Lover
Latina Lover's picture

Death to the Fed Reserve! Time for a currency reset. Down with the Banksters, or rather, hang them high!

Fri, 10/09/2015 - 17:59 | 6650826 FireBrander
FireBrander's picture

huilhg

Fri, 10/09/2015 - 18:03 | 6650834 Deathrips
Deathrips's picture

Fiat money is neofuedalism...kill the fiat!

 

Long Physical!!

 

RIPS

Fri, 10/09/2015 - 18:11 | 6650854 Soul Glow
Soul Glow's picture

Amen.

Fri, 10/09/2015 - 18:16 | 6650868 macholatte
macholatte's picture

 

Fundamental Transformation

Change You Better Believe In

 

GET USED TO IT.

Fri, 10/09/2015 - 19:05 | 6650981 negative rates
negative rates's picture

Hope ends in failure, action on the other hand, still has a few days left.

Fri, 10/09/2015 - 19:39 | 6651053 Clockwork Orange
Clockwork Orange's picture

I just hope somebody has The Courage to Act.

Fri, 10/09/2015 - 20:45 | 6651221 Pinto Currency
Pinto Currency's picture

 

 

Norway better have some of their SWF investments in gold bullion.

The paper is going to go whoof in the fiat debt system implosion.

deagel.com is projecting  a 50% population reduction in Norway over the next 10 years.

http://www.deagel.com/country/forecast.aspx?pag=2&sort=GDP&ord=DESC

Tells me they are holding paper.

Fri, 10/09/2015 - 22:40 | 6651477 McCormick No. 9
McCormick No. 9's picture

Norway- like Saudi Arabia, the climate and ecology allow for only a subsistence economy, if humans try to live according to what the land provides. In other words, for thousands of years, Norwegians were impoverished and backwards, but free. The oil will only last so long, then, its back to fishing and farming and viking for a living.

Sat, 10/10/2015 - 00:43 | 6651671 847328_3527
847328_3527's picture
Sweden poised for 150,000 asylum seekers this year

 

http://news.yahoo.com/sweden-poised-150-000-asylum-seekers-131909991.html

Sat, 10/10/2015 - 01:02 | 6651699 uhland62
uhland62's picture

They are taking them in as if they could print billions for these asylum seekers. Soon the empty bank towers in Frankfurt will house migrants, as they call them, but only if they can separate the ethnicities and religions. The many police hours and injuries are very expensive. Then comes the other cost, rent and once they're out, the usual damage that these people cause. The banks will want the damages paid for and if the government takes 'ownership' of these migrants, that'll be very costly. When living in ivory towers, people make wrong decisions.

Sat, 10/10/2015 - 04:22 | 6651838 Nenad
Nenad's picture
Obama will not finish his second term! Banned independent documentary reveals the truth. This will scare millions! Current Events Linked to Ancient Biblical Prophecy! http://motivationdose.com/is-america-babylon/
Sat, 10/10/2015 - 17:22 | 6653444 HowdyDoody
HowdyDoody's picture

Sweden's immigration policy is controlled by whom? Who promotes Swedish mulitculturalism? How influential is the American Israeli Barbara Spectre?

Sat, 10/10/2015 - 03:08 | 6651795 Macon Richardson
Macon Richardson's picture

Let's go viking now.

Everybody's leaning how.

Come on a safari with me.

Sat, 10/10/2015 - 05:26 | 6651876 Renfield
Renfield's picture

<<deagel.com is projecting  a 50% population reduction in Norway over the next 10 years. http://www.deagel.com/country/forecast.aspx?pag=2&sort=GDP&ord=DESC >>

Wow. What a page.

Australia is forecast to reduce from 22,510,000 to 8,882,220, 40% of current. Canada from 34,830,000 to 24,594,680, 70% of current. UK from 63,740,000 to 22,570,600, 65% of current. US from 318,890,000 to 64,879,000, 20% of current. Hell of a reduction rate for one decade. Russia fares relatively lightly, forecast from 142,470,000 to 136,979,80, 90% of current.

The reasons suggested include the following:

<<The key element to understand the process that the USA will enter in the upcoming decade is migration. In the past, specially in the 20th century, the key factor that allowed the USA to rise to its colossus status was immigration with the benefits of a demographic expansion supporting the credit expansion and the brain drain from the rest of the world benefiting the States. The collapse of the Western financial system will wipe out the standard of living of its population while ending ponzi schemes such as the stock exchange and the pension funds. The population will be hit so badly by a full array of bubbles and ponzi schemes that the migration engine will start to work in reverse accelerating itself due to ripple effects thus leading to the demise of the States. This unseen situation for the States will develop itself in a cascade pattern with unprecedented and devastating effects for the economy. Jobs offshoring will surely end with many American Corporations relocating overseas thus becoming foreign Corporations!!!! We see a significant part of the American population migrating to Latin America and Asia while migration to Europe - suffering a similar illness - won't be relevant. Nevertheless the death toll will be horrible... When pensioners see their retirement disappear in front of their eyes and there are no servicing jobs you can imagine what is going to happen next. At least younger people can migrate. Never in human history were so many elders among the population. In past centuries people were lucky to get to their 30s or 40s. The American downfall is set to be far worse than the Soviet Union's one. A confluence of crisis with a devastating result.>>

Gloom 'n' doom? Well, they're a military site. Pessimism may be their professional outlook, but I expect Deagle's done a little homework on his subject. Who is Dr. Edwin A. Deagle?

<<Portrait of DoD Dr. Edwin A. Deagle, Jr., Assistant to the Secretary of Defense and the Deputy Secretary of Defense, (U.S. Army photo by Mr. Scott Davis) (Released) (PC-192312), 6/29/1994>>

https://research.archives.gov/id/6671943

<<Edwin A. Deagle AWARDS AND CITATIONS: Legion of Merit
Awarded for actions during the Vietnam War
The President of the United States of America, authorized by Act of Congress, 20 July 1942, takes pleasure in presenting a Second Bronze Oak Leaf Cluster in lieu of a Third Award of the Legion of Merit to Colonel (Transportation Corps) Edwin A. Deagle, United States Army, for exceptionally meritorious conduct in the performance of outstanding services to the Government of the United States from July 1961 to July 1964.
General Orders: Department of the Army, General Orders No. 28 (August 24, 1964)
Action Date: July 1961 - July 1964
Service: Army
Rank: Colonel>>

https://research.archives.gov/id/6671943

He may be blowing smoke or have an agenda, but he's not your average crank and may know something of what he's talking about. I wouldn't dismiss his forecasts.

Sat, 10/10/2015 - 05:14 | 6651879 BurningBetty
BurningBetty's picture

All Norwegian gold sold here...no gold in the vaults. Our super-insanely-educated-and-intelligent-phds figured gold in the vaults was just waste of space and was costing upkeep. So they sold all the gold for like $400 an ounce. They kept 1kg bar for admiration purposes, so people can admire an "outdated" pet rock.

Sun, 10/11/2015 - 02:43 | 6654601 GoinFawr
GoinFawr's picture

+1 Now that could be a lynchpin yet

Fri, 10/09/2015 - 18:27 | 6650887 jeff montanye
jeff montanye's picture

what i don't get is "paradoxically a recession in the US will lead to the exact same outcome".  indeed paradoxically.  how about some exigesis on this?  rate hikes/dollar strength in recession?

Fri, 10/09/2015 - 18:04 | 6650837 FireBrander
FireBrander's picture

$24 Billion deficit? Hardly worth mentioning.

Fri, 10/09/2015 - 18:50 | 6650947 caustixoid
caustixoid's picture

It's pretty big when you only have 5 million people.  I mean that's a 20% deficit right?  Don't think the Greeks managed that in a single year...

Fri, 10/09/2015 - 20:03 | 6651065 GoinFawr
GoinFawr's picture

Oh indeud, another 3 decades or so of that and Norway might even begin carrying a national debt too.

Fri, 10/09/2015 - 18:02 | 6650832 Deathrips
Deathrips's picture

Promises from liars are bad enough..when they form a tidal wave and hit you like the great trash avalance in idiocracy...its not good.

 

RIPS

Fri, 10/09/2015 - 20:47 | 6651225 Freddie
Freddie's picture

I guess those Muslims that the left ZWO flooded Norway with are getting expensive.   That young man Anders Brevik who went on a rampage had said oslo had been a nice town but now Norway was festering with third worlders.  Thanks to the ZWO,  Note: I am not supporting what he did.  He was one of the few people who have spoken out on the "transformation" that occurred in Norway.

Fri, 10/09/2015 - 23:53 | 6651607 Nostradumbass
Nostradumbass's picture

Here is someone who has been yelling from the rooftops about the invasion into Europe and Scandinavia:

http://www.redicecreations.com/

Sat, 10/10/2015 - 00:30 | 6651663 847328_3527
847328_3527's picture

Even the little town of Bergen is flooded with gangs of angry Muzzies roaming the streets at night. Used to be a pleasant place-------no more.

Fri, 10/09/2015 - 18:45 | 6650937 jcdenton
jcdenton's picture

Currency reset coming ..

So says Jim Sinclair, Bill Holter, Bix Weir, et al ..

Best source IMVHO would be Presidential Totten Doctrine (1875) Secret Agent, operating as we converse under EO 12333, Operation Stillpoint. He kept Soviet generals from pushing buttons, by buying their rocket fuel between '85 and '90. And actually paying KGB and GRU officers (among them GRU Lt. Col. Vladimir Putin) to guard such fuel stocks, and shoot to kill any rogue general from utilizing them against NATO forces.

Putin was there in '90, witnessing the signing of the General Agreement on Cooperation. This prevented a hot WW3/4 and saved many Russians and other Soviet subjects from starving and freezing to death in the winter months.

http://eagleonetowanta.com/wp-content/uploads/2015/03/General-Agreement-...

Same Totten Doctrine Secret Agent can do the same for America and Americans if they only knew about him, and openly prayed for his assistance ..

https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp

Fri, 10/09/2015 - 18:53 | 6650953 runswithscissors
runswithscissors's picture

its always the "last nail" but the petrodollar marches on...DEATH TO THE PETRODOLLAR! 

Fri, 10/09/2015 - 19:37 | 6651046 Lucky Leprachaun
Lucky Leprachaun's picture

Right on both counts.  The petrodollar must be perforated with nails at this stage.

Fri, 10/09/2015 - 17:49 | 6650791 OMG
Fri, 10/09/2015 - 18:10 | 6650847 FireBrander
FireBrander's picture

4200 people to run Twitter? WTF? That is insane.

Fri, 10/09/2015 - 18:12 | 6650853 FireBrander
FireBrander's picture
"Whirlpool Moves Production Of Washers To Ohio From Mexico"

http://www.forbes.com/sites/danbigman/2013/12/20/another-sign-of-gatheri...

Fri, 10/09/2015 - 18:34 | 6650905 jeff montanye
jeff montanye's picture

thanks for the link.

what i liked: "the Clyde plant is the largest washing-machine factory in the world. . . . About 80-100 jobs will be created in Ohio."

manufacturing is not what is once was from the standpoint of the working person.

robert robot on the other hand . . . .

Fri, 10/09/2015 - 22:36 | 6651463 Tom Servo
Tom Servo's picture

4200 FTE's, plus a TON of agencies like www.huhcorp.com

 

Fri, 10/09/2015 - 18:34 | 6650906 Mike in GA
Mike in GA's picture

a 2013 article?  WTF?

Sat, 10/10/2015 - 06:29 | 6651935 Iam_Silverman
Iam_Silverman's picture

""Whirlpool Moves Production Of Washers To Ohio From Mexico" "

While most would think that this is in response to global pressures or the cost of transportation, the actual reason is more surprising.  The Whirlpool executives are actually being proactive! (I know, what a shocker, huh?).  They have seen the unwillingness of the current administration to stem the tide of illegal immigration, and figured in only a couple of years all of their workers in Mexico would be in the US anyway.  So, no training for new employees required.  Makes great sense, to me......

Fri, 10/09/2015 - 19:09 | 6650985 knukles
knukles's picture

Why would something like Twitter even need 4200 employees?  Seriously.

Fri, 10/09/2015 - 19:27 | 6651019 NoPension
NoPension's picture

Because.

Or...

To justify the market cap?

Friends?

Sat, 10/10/2015 - 00:27 | 6651659 Oh regional Indian
Oh regional Indian's picture

The FANG's have a whole lot of people doing nothing, or staring at their navels.

This is the Bankster way of keeping enough people on a sorta dole, so they can spend.

Were it not for these virtual wonders and their virtual employees, everything would be whooshing down the drain.

Well known fact in India, a ton of outsourcing companies have been keeping people with full pay on the bench for upto 18 months....

Which for-profit entity would do such madness unless there was an ulterior motive.

Now, everyone with an app idea and the ability to fog a mirror is getting funded....

Silly CON valley 3.0 or whatever...

Fri, 10/09/2015 - 19:28 | 6651021 swmnguy
swmnguy's picture

I would have thought they had a really bloated staff of, maybe, 200.  And a bunch of marketing contractors.

Fri, 10/09/2015 - 19:43 | 6651040 Killdo
Killdo's picture

San Francisco is getting cleaner: a few months ago while walking by Twitter HQ on Market street I saw only one man taking a shit right in front of their entrance. At 11am

Fri, 10/09/2015 - 19:43 | 6651069 Hulk
Hulk's picture

1 to manage the server and 4199 to spell check !!!

Fri, 10/09/2015 - 20:55 | 6651247 Freddie
Freddie's picture

I thought maybe they sit around postuing content on twitter to fool the global sheep.

Maybe they can tweet about the #bumstakingadumpinsanfran

Fri, 10/09/2015 - 19:48 | 6651086 Secret Weapon
Secret Weapon's picture

If they have great tits who cares?

Fri, 10/09/2015 - 20:14 | 6651150 Tinky
Tinky's picture

I could explain, but it would require 143 characters.

Sorry.

Fri, 10/09/2015 - 21:13 | 6651285 TSA gropee
TSA gropee's picture

4000 chiefs, and 200 indians? In this strange world, who really knows...

Fri, 10/09/2015 - 21:24 | 6651308 shovelhead
shovelhead's picture

Someone has to drink all that Green Mtn. Coffee.

Sat, 10/10/2015 - 00:54 | 6651690 Blano
Blano's picture

Somebody has to censor those evil Christians and conservatives.  Doesn't happen all by itself.

Sat, 10/10/2015 - 05:18 | 6651882 BurningBetty
BurningBetty's picture

 

That's easy. It's because they need to filter who tweets what to NSA.

Fri, 10/09/2015 - 19:36 | 6651039 Lucky Leprachaun
Lucky Leprachaun's picture

Bloody hell, I could operate Twitter with about 50 people.

Sat, 10/10/2015 - 10:37 | 6652382 Slomotrainwreck
Slomotrainwreck's picture

OT Twiiter is hitting the shitter:

 

+1 for the shitter

Fri, 10/09/2015 - 18:03 | 6650835 DanDaley
DanDaley's picture

Your King Oscar sardines are still going to be in oil...just not olive oil.

Fri, 10/09/2015 - 18:49 | 6650943 Charles Wilson
Charles Wilson's picture

See also: Kentucky Fried Chicken "Honey Sauce".  'N on and on and on...

Fri, 10/09/2015 - 19:33 | 6651020 Lumberjack
Lumberjack's picture

I'm not so much worried about that. The sardines are just fine. Most think that sardines and scrod are a species (order scrod at a restaurant and ask the waiter/waitress what species they are), but I have news for you they are not a species. I have some sardines from Portugal and they are delicious too. Most here may not know but Norway's pension fund DEPENDS on revenue fom Statoil. Statoil tried the offshore renewable wind thing and that proved not to make economic sense. I smell a rat here.

Fri, 10/09/2015 - 21:31 | 6651320 shovelhead
shovelhead's picture

Scrod are supposed to be young smaller cod. In the Northeast usually rock cod.

Tourist joints will fry up pollack and pass it off as scrod. Locals will throw it back at them.

We used to pull so much cod that we'd boil the pollack for the cats.

 

Fri, 10/09/2015 - 18:02 | 6650833 SillySalesmanQu...
SillySalesmanQuestion's picture

102+ years of pre-planning is about to unfold, rather spectacularly too...enjoy the show.

Fri, 10/09/2015 - 18:07 | 6650843 FlSapo
FlSapo's picture

You dont pre-plan a system for 102 years without a contingency plan and a plan b and c. We just have to get the Popcorn out and wait for them to say 'Pullit!'.

Fri, 10/09/2015 - 19:26 | 6651011 Bemused Observer
Bemused Observer's picture

You don't pre-plan a system for 102 years unless you have a lifespan of at least triple that...Seriously, how can anyone buy a 'plot' that takes generations to unfold?

Human beings simply do not work that way. They can't even get their own kids to follow 'the program', whatever it is. The generations that take over anything most certainly do NOT 'follow the program' of the prior generations. It simply is not logical to believe in a conspiracy that involves such lock-step unity over many generations and events.

If there is any 'conspiracy', it is a conspiracy of greed and hubris. These are explanation enough for what we see. There is no Master Plan...they are just dumb fucks winging it and making a hell of a mess, and we are the other dumb fucks who are letting them.

Fri, 10/09/2015 - 20:37 | 6651202 Cabreado
Cabreado's picture

There doesn't even need to be a "Master Plan."

Those predisposed to Control are just fine with slow and steady progress towards just about anything, as long as their personal needs (pathological) and expectations are met...

so the natural course of things, ie. unchecked* Control, is what we're seeing, plan or no plan...

the greed and hubris -- that of the sycophants too, and therefore *unchecked -- are the ready and willing enablers along the way.

Fri, 10/09/2015 - 18:23 | 6650884 moratar
moratar's picture

What plan?

Fri, 10/09/2015 - 20:53 | 6651230 Lumberjack
Lumberjack's picture

 

Do you know about 100 year plans?

 

 

http://www.gongol.com/research/economics/100yearplans/

 

http://sequoiacapital.tumblr.com/post/16475246491/evernote-the-100-year-...

 

ully.https://www.reit.com/investing/reit-basics/forming-real-estate-investmen...

 

Then next thing would be this: GLBL... an energy REIT of sorts. Compare the charts of the same entity.  SUNE; TERP and GLBL. and watch VERY carefully.

 

Keep a close eye on the Plum Creek REIT.....

 

Fri, 10/09/2015 - 18:10 | 6650845 wizteknet
wizteknet's picture

Need a billionaire to make a trillion pissed? call me when ready u got my number!? lol seriously

Fri, 10/09/2015 - 18:11 | 6650851 Buck Johnson
Buck Johnson's picture

And we aren't in a recessin?  We are in the start of a recession and it's going to be a very very gold one and long too.

 

Fri, 10/09/2015 - 18:21 | 6650880 yogibear
yogibear's picture

The sooner the petrodollar is killed the better.

It will be fun seeing the fed trying to print out of it's mess.

Fri, 10/09/2015 - 18:30 | 6650899 ToSoft4Truth
ToSoft4Truth's picture

Israel chooses the dollar and if they are the chosen and choose us, well, we are gonna be OK. 

Fri, 10/09/2015 - 18:41 | 6650926 Atomizer
Atomizer's picture

Tell you about a funny story. Still in HHI, I wandered off to the pool this afternoon. 

It's really quiet here this time of season. I swear on my mother's grave, saw Henry Kissenger's nephew at the pool. He was fat, coke bottle glasses, and the Jewish Kissenger nappy haircut. 

I said nothing. Physically bit down on my tongue. My question was, are you related to Henry Kissenger? Let it go. 

We all can relate to Henry jump starting the Petrodollar recycling scheme for the Federal Reserve. 

Fri, 10/09/2015 - 19:26 | 6651015 Ms No
Ms No's picture

Don't let it go...  If he says yes tie some mahi around his neck and take him swimming with the whities.  Sharks are rumored to the love spawn of the undead and anyone involved in banking.  Sharks also hate cinnamon but love pepper.

Or..you could just keep kicking that fat ass off the side of the pool and find out if he is a sinker.  You can always resescutate him later if your feeling generous, water boarding is legal now just be sure to check the pool side first aid kit for a CPR mask. Do NOT accidentally get any of his spittle on you, if you come back acting weird we are gonna know.  

Fri, 10/09/2015 - 20:11 | 6651135 Atomizer
Atomizer's picture

Have to behave. It's one of our rental properties. The other owners who stay here full time know my wife and I. 

I just couldn't believe my eyes. Had no intention of picking on him. Thank God for self control. 

Fri, 10/09/2015 - 22:55 | 6651500 BarkingCat
BarkingCat's picture

>>>>>Or..you could just keep kicking that fat ass off the side of the pool and find out if he is a sinker.<<<<

Doesn't shit float?

Fri, 10/09/2015 - 18:50 | 6650944 Postal
Postal's picture

So, now I have to pay strippers in oil instead of dollars? That's gonna be messy...

Fri, 10/09/2015 - 18:55 | 6650958 silverer
silverer's picture

So much for the flag wavers ballyhooing how great it all is in socialist rainbow land.  Copy them! Copy them!

Fri, 10/09/2015 - 19:38 | 6651035 GoinFawr
GoinFawr's picture

"You can't...read?"

https://youtu.be/tGCdrLdWHok?t=252 t'riffic, really t'riffic.
Fri, 10/09/2015 - 19:00 | 6650967 news printer
news printer's picture
Muslim Press Claims Saudi King Salman bin Abdulaziz Hospitalized for Dementia

 

Informed sources told Arabic-language al-Ahd news agency that King Salman is now in the Intensive Care Unit (ICU) section of King Faisal Specialist Hospital in the Saudi capital.

 

The sources also said that given the Saudi king's unstable and aggravating health conditions, officials have ceased plans to transfer him to US hospitals.


According to witnesses, his exact state of dementia is a source of speculation but he is known to have held cogent conversations as recently as last October. !!!!!!!


He can also forget what he said minutes ago, or faces he has known all his life. This is typical of the disease.

 

en.abna24.com/service/middle-east-west-asia/archive/2015/10/06/713917/story.html

Fri, 10/09/2015 - 21:21 | 6651302 espirit
espirit's picture

Aka 'cornflakesdisease'.

Fri, 10/09/2015 - 23:19 | 6651540 Yen Cross
Yen Cross's picture

 That was funny.

 

Fri, 10/09/2015 - 19:03 | 6650970 Jack Burton
Jack Burton's picture

"the world of petrodollar recycling"

The USA Dollar hegemony system was partly built upon Petro Dollar recycling. And of course Chinese trade surplus recycling. We have already seen the Chinese Treasury selling. That is a nail in the world reserve currency. Falling oil revenues dry up another major dollar recycling system.

Many on ZH have noted the not so gradual approach of World War. To be blunt, the prospect in Washington DC of the loss of dollar world wide hegemony is creeping closer and closer. What does this mean to the world's only super power and vast global empire? Well, it puts in threat the ability of Washington to print green paper and have all the rest of the earth to supply in return manufactured goods, energy, commodities and services. All in return for green paper. Washington spends twice what it's taxes return each year. That leaves 1/2 of the entire federal spending to come from printed green paper.

To be clear. When Washington loses the power to print, it has lost over half of it's global power in one stroke. The prospect of that can only lead to global war. The US Neoconservatives are laying the foundations for global war, World War Three. It is either go to war, or lose the global super power status built on Money Printing.

Unless you think America remains the global super power based on it's vibrant productive economy?

Fri, 10/09/2015 - 19:48 | 6651028 GoinFawr
GoinFawr's picture

Oh great, thanks for reminding me of that one Jack; well, sweet dreams to you too.

Fri, 10/09/2015 - 20:19 | 6651157 Yen Cross
Yen Cross's picture

  If you weren't such a snarky little prick, you might sequester some up^votes.

   Some of your ideas require a degree of intellect and understanding that I appreciate.   There's a fine line between sarchasm and insecurity. :-P

Fri, 10/09/2015 - 21:19 | 6651297 espirit
espirit's picture

But, but, but...

We like snarky.

And besides, Jack has the ZH Seal of Approval.

Fri, 10/09/2015 - 19:51 | 6651094 smacker
smacker's picture

"[...] it puts in threat the ability of Washington to print green paper and have all the rest of the earth to supply in return manufactured goods, energy, commodities and services."

The irony of this absolute truth is that it's unknown or not understood by probably 90%+ of the global population.

Fri, 10/09/2015 - 22:12 | 6651416 Blankone
Blankone's picture

Would be interested in seeing a source print a table of the petro sellers, their amount and if they use the dollar at any point in the transaction on a percentage basis.

Would like to see which petro buyers buy their supply without using the dollar at any point in the trade.

The focus on petrodollar is not without justification.  But, the big dog overall to watch is China.  China is trying to move outside the dollar for transactions other than petro.  It is not in the news but they are quietly moving to create a system where smaller countries can avoid the dollar and the SWIFT system for regular transactions.  If the world starts to question the safety of holding such large amounts of their wealth in dollars they will diversify by using the system of China's if it functions properly.    There is no clear info about how robust China's system is shaping up to be.  Russia's "system" to avoid SWIFT is a joke so far.  SWIFT is already weaponized and providing an alternative will attract all sorts of commerce that wishing to keep certain eyes out of their business.

Fri, 10/09/2015 - 19:03 | 6650971 jtlien
jtlien's picture

Uff da

Fri, 10/09/2015 - 19:32 | 6651032 swmnguy
swmnguy's picture

I live in Minnesota so it took me a moment to realize you were making a topical reference to the fact this story is about Norway.  It wasn't just the thing you usually say in response to big-deal news, like I'm used to hearing.  I even say it, though I'm not Norwegian.  My wife is, though; can't live long in Minnesota without some sort of Norwegian something in your life.

Fri, 10/09/2015 - 21:23 | 6651306 espirit
espirit's picture

Are you referring to some sort of debilitating disease?

Fri, 10/09/2015 - 21:45 | 6651346 shovelhead
shovelhead's picture

Uff Da is Oy Veh for blockheads.

Soon to be replaced by Allah Akbar

Fri, 10/09/2015 - 19:08 | 6650983 Ms No
Ms No's picture

.... and the banks inevitably end up with all of the oil stores, coal mines and real estate.  Maybe if we are really good and work super hard in the near future the company store will stock something for us besides GMO corn gruel and potato pancakes.   

Fri, 10/09/2015 - 19:12 | 6650989 Johnny Caine
Johnny Caine's picture

Smoke 'em if you got 'em.

Fri, 10/09/2015 - 19:36 | 6651042 Lumberjack
Lumberjack's picture

Do you mean Brook Trout or Icelandic Arctic Char? They make the best Shashimi too.  Too bad the Chinese haven't figured that out yet... 

Fri, 10/09/2015 - 19:43 | 6651068 TheObsoleteMan
TheObsoleteMan's picture

You idiots don't get it. Do you know why technological advances have propelled our civilization so quickly? You can almost date it. Fiat money and credit, unencumbered by "backing assets", allow for much faster advances, and this is all due to LEVERAGE. This must be managed with a degree of discipline, and unfortunately, there hasn't been any for sometime now. That is the lure: it is like dope. Worse than dope. To quote Axel Rose: "I used to do a little, but a little wouldn't do it, so a little got more and more........" {Mr. Brownstone}. We are NEVER going back to a gold standard, or any other "standard", for that matter, and thank God for that. If problems confronting the survival of our species are to be conquered, an orderly reset, with the reintroduction of another fiat system is not only in our best interest, it is vital to our survival.

Fri, 10/09/2015 - 20:17 | 6651156 RaceToTheBottom
RaceToTheBottom's picture

So, to paraphrase your post: "Banksters have given us our prosperity, therefore they are our saviors...."

I took the other pill...

Fri, 10/09/2015 - 22:39 | 6651473 TheObsoleteMan
TheObsoleteMan's picture

No, left to their own ambitions, bankers will finance your trip to the poor house if they are not well regulated. That is what happened when they repealed Glass-Steagall.

Fri, 10/09/2015 - 23:56 | 6651612 Really20
Really20's picture

Ah, the Rooseveltian fantasy of "regulated capitalism and banking". Any attempts to "regulate" corporate ownership by private shareholders, and the debt-backed monetary system, will only lead to the creation of loopholes and do not stem the underlying accumulation of debt by the common citizen. They do not resolve the core structural deficiency of the system, namely that growth must be maintained in order to feed the 0.01% its pound of flesh while maintaining wages and employment regardless of the environmental, human, or long-term economic cost. Keep your liberal views to MSNBC and let real socialists and libertarians do the talking.

Sat, 10/10/2015 - 10:23 | 6652356 RaceToTheBottom
RaceToTheBottom's picture

I agree Glass Steagall was a massive mistake at best, or sellout at worst.

Fri, 10/09/2015 - 21:37 | 6651164 Dark Daze
Dark Daze's picture

"We are never going to go back to a gold standard".

Well, Mr. America, 3/4's of the world would disagree with you. When you don't have a single, verifiable wealth standard by which the wealth of, and subsequently the money supply of, countries can be measured (i.e gold and/or silver) then you are at the mercy of whoever controls the commodity and currency markets, which can and are manipulated at will through various nefarios mechanisms not the least of which is the naked short sale. Add politics into the mix and you get a level of brutality never seen before.

The argument against gold not having the proper attributes to support required liquidity is specious, to say the least. Simply revaluing gold up provides new liquidty. That is exactly what FDR did when he revalued gold in the 30'. He instantly expanded the money supply by 80% in order to put more dollars into people's pockets. So when an economy runs too hot, your remove paper and the gold price drops correspondingly, but it's relative value remains unchanged. When an economy is in the doldrums and you need expansionary credit, you increase the price of gold which increases the paper currency supply, without inflation I might add. This is why gold is the go to holding for both increases (inflation) and decreases (deflation) in an economy. But of course essentially gold is a superior defense against deflation. The biggest thing that a gold standard does is removes the ability for any one state to control the world, unless of course they choose to try to steal it by military means (i.e. Ukraine, Iraq, Kuwait, Syria, Libya in recent memory, and soon to come, Saudi Arabia).

Do you honestly believe the rest of the world is going to put up with a banktrupt, hyper-paranoid, arrogant, dangerous, belligerent, war-mongering (definition of a psychopath) and out of control country of 330 million people telling them what to do and when to do it for much longer?

If you do, then you're a fool and you will get what you deserve.

Fri, 10/09/2015 - 22:41 | 6651478 TheObsoleteMan
TheObsoleteMan's picture

No, and that is why I laid out my case in another post. Read it.

Fri, 10/09/2015 - 21:00 | 6651262 TSA gropee
TSA gropee's picture

By preceding your post with "You idiots don't get it", you bare your weakness of character and relegate what might be a good post to be filed under not worth the read...IMHO.

Fri, 10/09/2015 - 21:07 | 6651274 TheObsoleteMan
TheObsoleteMan's picture

How about if I throw in a big GO FUCK YOURSELF for good measure, would that change your mind? The thought that you might not read my post is just killing me!!

Fri, 10/09/2015 - 21:18 | 6651295 TSA gropee
TSA gropee's picture

Clever come back. Did you think that one up all by yourself or did you need help? lmao. You proved my point.

Fri, 10/09/2015 - 23:08 | 6651525 BarkingCat
BarkingCat's picture

You are the idiot. Humans made have a history of stagnation and then leaps of technological advancement.
Our current burst is all tied back to the industrial revolution.
It increased our productivity greatly and that includes food production. This freed up many more to get an education and work with their minds, thus exponential leaps in technology.
...and you want to give credit to the fucking peaches who are sucking the life blood from this system. Epic fail?.

Fri, 10/09/2015 - 23:53 | 6651606 Really20
Really20's picture

As others have correctly identified, you are the idiot. Technological advancements have happened for thousands of years long before the widespread use of credit created out of thin air, and will continue after. There will, however, no longer be perpetual economic growth for the benefit of a chosen 0.01% rentier class that produces nothing but consumes everything.

The extractors at the peak of the debt-backed money system, through consumerism and other lies, force perpetual growth to maintain existing levels of employment and wages while they keep the difference. This is not a sustainable system for the environment or for people.

Sat, 10/10/2015 - 00:21 | 6651649 falconflight
falconflight's picture

Most of the "technological advancements" in all of human history have occurred just in the last 300 years, and a giant percentage in the last 150 years.  Labor (Slavery) was just about the only commodity during most of recorded history.

Sun, 10/11/2015 - 00:42 | 6654479 Really20
Really20's picture

Tell me, how many real "technological advancements", other than information technology, have taken place in the last 40 years? Our space program has been left to rot and scientific progress is slowed to a crawl. The main source of economic growth under the final evolution of debt-backed money has been increased consumption of existing goods and services and incremental improvements in technology. Monumental gambles which could benefit the mass of humanity, like a manned space program, are not immediately profitable and thus under a debt-backed monetary system the public sector has no incentive to lead the way and the private sector has even less incentive to follow up.

Sat, 10/10/2015 - 17:16 | 6653421 TheObsoleteMan
TheObsoleteMan's picture

Technological progress was at a crawl until fiat currency, and the divorce from a "standard". It was catapulted at break-neck speed after 1933. Innovation slows down considerably when it is constrained by tight money policies. You are the fool if you can't see that.

Sun, 10/11/2015 - 00:45 | 6654483 Really20
Really20's picture

I didn't say anything about a "standard" or "tight monetary policy". Throughout most of history, these have in fact been irrelevant as people made interest-free trading promises among themselves. Inflation and deflation were only a response to supply and demand (although these could be faked by hoarders and liquidators) rather than a structural component of the economy. Both current trade and long-term advancement worked quite well under these systems.

Debt-backed money systems, on the other hand, were responsible for the genocide of two continents, ruination and war in Europe, and the colonization of Africa and Asia. The sheer scale of the crimes that debt-backed money compels are simply unfathomable.

Sun, 10/11/2015 - 00:52 | 6654488 Really20
Really20's picture

I didn't say anything about a "standard" or "tight monetary policy". Throughout most of history, these have in fact been irrelevant as people made interest-free trading promises among themselves. Inflation and deflation were only a response to supply and demand (although these could be faked by hoarders and liquidators) rather than a structural component of the economy. Both current trade and long-term advancement worked quite well under these systems.

Debt-backed money systems, on the other hand, were responsible for the genocide of two continents, ruination and war in Europe, and the colonization of Africa and Asia. The sheer scale of the crimes that debt-backed money compels are simply unfathomable.

Fri, 10/09/2015 - 19:43 | 6651070 coast
coast's picture

Jim Willie

Fri, 10/09/2015 - 20:06 | 6651133 TheObsoleteMan
TheObsoleteMan's picture

Jim Willie is both a charlatan and nut case. "My ultra double secret sources told me so" {The Voice"} hahaha!! Yeah, Jim Willie hears voices alright.

Fri, 10/09/2015 - 21:47 | 6651359 shovelhead
shovelhead's picture

Still making potholders at the nursing home?

Fri, 10/09/2015 - 20:39 | 6651207 ebear
ebear's picture

Dr. Jim Willie...

Is it safe?

Fri, 10/09/2015 - 20:23 | 6651101 Yen Cross
Yen Cross's picture

  What's that huge sucking sound I'm hearing?  It's the "$" sign being ripped off the sides of contango tankers.

 Ohhh... That's right, the $usd is tanking and *caugh*caugh demand for commodities is increasing.

 We'll see at OPEX next Friday.

Fri, 10/09/2015 - 21:33 | 6651323 espirit
espirit's picture

Damn Yen, that's scary.

You've been moar right than moar wrong on the trades.

(for the newbies)

Fri, 10/09/2015 - 22:09 | 6651355 Yen Cross
Yen Cross's picture

 I'm open to ideas.

  I'm flat  F/X right now, and couldn't be happier.

  You probably know that.

  Keep fishing---- j

Thu, 10/22/2015 - 21:14 | 6700741 GoinFawr
GoinFawr's picture

Furious with the deplorable service he and his family had received during their meal, the salary-man stormed past the line-up straight into the restaurant, up to the front desk, swung two dead cats by the tails directly onto the reservation book and declared to the Maitre D',

"There! But those are the last two you get before you pay me for the others!!"

Fri, 10/09/2015 - 19:55 | 6651107 ToSoft4Truth
ToSoft4Truth's picture

This is what I noticed.

Chocolate covered raisins are in short supply.  The local supermarkets are always out.  I think that California drought is gonna be costly. 

California Raisins Commercial (1986)

https://www.youtube.com/watch?v=pM2OK_JaJ9I

Fri, 10/09/2015 - 20:43 | 6651216 ebear
ebear's picture

I'm having the same problem with chocolate covered blueberries, and we grow them around here for chrissake. It's a conspiracy I tells ya.

Fri, 10/09/2015 - 23:12 | 6651533 BarkingCat
BarkingCat's picture

They can substitute sheep shit. It looks the same...and with enough chocolate the stoners who eat most of them will never notice.
....and the comment "your breath smell like shit" will have a some truth in it.

Sat, 10/10/2015 - 07:19 | 6651991 Berspankme
Berspankme's picture

go long rabbits

Fri, 10/09/2015 - 20:12 | 6651145 buzzsaw99
buzzsaw99's picture

Remarkable bird, the Norwegian Blue... probably pinin' for the fjords...

Fri, 10/09/2015 - 21:52 | 6651365 shovelhead
shovelhead's picture

"There...he moved."

"No he didn't."

Fri, 10/09/2015 - 20:27 | 6651180 Atomizer
Atomizer's picture

NNQEIRP4ever. In advanced planning stages. 

Fri, 10/09/2015 - 20:57 | 6651253 ShakaZulu
ShakaZulu's picture

1000 years ago Leif Erikson discovered Fiatlandia.  Now they are discovering diversity.  Even the reindeer can't hide from what's coming.

Fri, 10/09/2015 - 21:09 | 6651272 TheObsoleteMan
TheObsoleteMan's picture

The USA has abused it's position of holding the world's reserve currency, and this proves that it is not in the world's best interest {or that of the nation} to have one country in that role. One country's economy, not even the USA's, is big enough to absorb all of the responsibilities of a global currency. The best option I see, is for a basket of of currencies, preferably from the G-10 nations, to replace the US Dollar. This would not only facilitate a more equitable trade system, but would ease tensions globally, and force all nations to live within their budgets.

Fri, 10/09/2015 - 21:29 | 6651317 Dark Daze
Dark Daze's picture

This already exists. It is called Special Drawing Rights (SDR's)

Fri, 10/09/2015 - 21:47 | 6651353 VW Nerd
VW Nerd's picture

Amazing how infectious the dollar is in the global economy.  Abstain or wear protection!

Fri, 10/09/2015 - 21:49 | 6651363 Yen Cross
Yen Cross's picture

 Welcome to " Reality Ranch"... Please check your indoctrinations at the door.

Fri, 10/09/2015 - 21:55 | 6651375 shovelhead
shovelhead's picture

Don't go there.

I got the clap.

Fri, 10/09/2015 - 22:13 | 6651417 Yen Cross
Yen Cross's picture

 Good on ya. We all need peons, to open doors and windows for us.

 See how fast something simple and innocuous, can be mis- contrived?

Sat, 10/10/2015 - 00:49 | 6651492 TheObsoleteMan
TheObsoleteMan's picture

What I proposed above is exactly what certain people and groups have been trying to engineer for many years now {post 1945}, with the creation of the United Nations. However, this is a two fold trick: 1. Do it in such a way, that it is a "soft landing" to the global economies, 2. Until it is accomplished, no one must find out it is being done, else it could cause a rise in nationalistic passions, and hurt the cause.

Fri, 10/09/2015 - 23:27 | 6651567 Vlad the Inhaler
Vlad the Inhaler's picture

Holy shit, are you trying to tell me that Norway's debt to revenue ratio is 120 freaking percent?  That's funny, because America's debt to revenue ratio is probably pushing 900%.  Second in the world behind Japan and just barely beating out god damn Greece.  Norway is one of the least stinky turds on the pile.  When SHTF I'd rather own a stack of NOK than pet rocks.  http://investmentwatchblog.com/by-this-measure-usa-is-7-in-debt-to-gdp-2...

Fri, 10/09/2015 - 23:27 | 6651569 Vlad the Inhaler
Vlad the Inhaler's picture

Holy shit, are you trying to tell me that Norway's debt to revenue ratio is 120 freaking percent?  That's funny, because America's debt to revenue ratio is probably pushing 900%.  Second in the world behind Japan and just barely beating out god damn Greece.  Norway is one of the least stinky turds on the pile.  When SHTF I'd rather own a stack of NOK than pet rocks.  http://investmentwatchblog.com/by-this-measure-usa-is-7-in-debt-to-gdp-2...

Sat, 10/10/2015 - 01:30 | 6651719 Yen Cross
Yen Cross's picture

 Double it for China. Add some sprinkles for Japan. ha

Sat, 10/10/2015 - 05:01 | 6651867 BurningBetty
BurningBetty's picture

Vlad, I get what you are saying but I am from Norway and the problem with NOK is that it's almost directly pegged to the price of dollar. As long as the price of oil is high, NOK is pretty much a safe haven. The SWF is good on paper as long as markets don't tank. 

The fall in oilprice from it's peak last year has resulted in a correlated depreciation of NOK. From ca.6,0ish NOK against the dollar we are now at 8,0ish. Was as high as 8,60 just a week ago after our nutty central banker Mr. Olsen decided to cut rates another 25 bp. The funny thing is that when Olsen did that he did it to "boost" exports, same currency war excuse as always, and NOK deprecated from 8ish to 8,55 immediately. Some 10 days later(Friday close) NOK had again retraced the loss and is now back to 8,05. Which tells you how fragile and broken everything is. We are expecting our CB to hit ZIRP in not too distant future if the whole agenda is to weaken the NOK to boost exports. Mr. Olsen has also flirted with NIRP in not too distant future. Meanwhile, high paying ofshore jobs are disappearingwhile people are relentlessly increasing their debt as rates fall. This is a tnt-keg waiting to explode, and it doesn't seem to stop growing.

 

Sat, 10/10/2015 - 01:27 | 6651716 Joe A
Joe A's picture

Soon there will be some crisis in Norway that requires 'humanitarian intervention' with no-fly zones, an air campaign and a 'regime change'.

Sat, 10/10/2015 - 02:56 | 6651783 Free_Spirit
Free_Spirit's picture

I still don't totally get why no nation QE'd away some of the debt, i.e. print to repay in moderate levels, obviously not all at once. We know QE through banks just results in fat banks, poor lending and commodity booms, and we knoww helicoptering to the public results in inflation, but aside from a moderate reduction in currency value that wouldd also improve export prospects I don't understand why nations have just built up debt and not cleared the decks back to a sustainaable level ? Can someone explain ? 

Sat, 10/10/2015 - 06:33 | 6651941 Dark Daze
Dark Daze's picture

Well, this is pretty simple. In a pure fiat based system new money is created by issuing new debt. So, regardless of how much money you print to pay off debt, you always have more debt.

Sat, 10/10/2015 - 13:51 | 6652898 Jus7tme
Jus7tme's picture

The article and graphs/data are very interesting, but what does it have to do with the petrodollars mentioned in the headline. Please explain.

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