Qatar Begins Turning Its Back On The US Dollar

Tyler Durden's picture

Authored by Darius Shahtahmasebi via TheAntiMedia.org,

Late last week, Saudi Arabia and other members of the Gulf Cooperation Council (GCC) that are involved in attempting to isolate Qatar sent the tiny Gulf nation a list of 13 demands. They are insisting that Qatar meet these demands within ten days or face unspecified further action.

The list of demands includes Qatar shutting down Al-Jazeera and its affiliate stations; shutting down other news outlets that Qatar funds, including Middle East Eye; curbing diplomatic ties with Iran and expelling members of Iran’s Revolutionary Guard; terminating the Turkish military presence in Qatar; consenting to monthly audits for the first year following acceptance of the demands, and aligning itself entirely with the other Gulf and Arab countries militarily, politically, socially, and economically – to name but a few.

The most ludicrous of the demands is that Qatar must end its interference in sovereign countries’ internal affairs. Qatar does interfere in a number of countries, including Libya and Syria, but as the German Foreign Minister explained, this list of demands directly challenges Qatar’s sovereignty. Who is interfering with whose sovereignty, exactly?

Unsurprisingly, Qatar has dismissed the list of demands as neither reasonable nor actionable. Surely, the Saudi-led anti-Qatar alliance is aware of this. It would be tantamount to asking Great Britain to shut down the BBC and expel American troops – it just wouldn’t happen. All of the world’s major newspapers are complicit in running state-sanctioned propaganda, and singling Al-Jazeera out is hardly fair or practical.

In that context, Saudi Arabia and its friends have given Qatar a list of demands they cannot conceivably meet and imposed a ten-day deadline to concede or face unspecified further action. Qatar was essentially doomed from the start of this rift, and it’s only just beginning. As Newsweek lamented, “the demands are designed to be impossible to comply with.”

The UAE has warned that Qatar is now facing indefinite isolation and that the economic and political sanctions are likely to become permanent. Taken together with the recent promotion of the Saudi King’s son, Mohammed bin Salman, now first in line to the throne, things are indeed heating up against Qatar. Prince Salman is widely regarded as one of the main proponents behind the Saudi-Qatar rift.

The ultimate agenda of the Saudi-led alliance is to deter Qatar from continuing its relationship with Iran, Saudi Arabia’s regional arch rival. But even the Guardian notes that “cutting ties to Iran would prove incredibly difficult,” as Iran and Qatar share a massive offshore natural gas field that supplies Qatar with much of its wealth. In fact, Iran immediately came to Qatar’s aid and began supplying the country with food after the Saudi-led sanctions created a shortage within the country. Shaking off Iran and Turkey —the two countries that have stood by Qatar’s side during this feud — is almost unthinkable. Qatar would be left without a single ally on either side of the Middle East region.

Qatar was initially among a handful of countries, including Turkey and Saudi Arabia, that wanted to install a natural gas pipeline through Syria and into Europe. Instead, the Syrian government turned to Iran and Iraq to run a pipeline eastward and cut out the formerly mentioned countries completely. This is precisely why Qatar, Saudi Arabia, and Turkey have been among some of the heaviest backers of the Syrian opposition fighters. This pipeline dispute pitted the Sunni Gulf States against the Shia-dominated bloc of Iran, Iraq, and Syria (Syria’s president is from a minority denomination of the Shia sect of Islam). Although Iran and Qatar shared this lucrative gas field, they were directly at odds in regard to how the field should have been utilized.

Not long after Bashar al-Assad’s proposed deal with Iran and Iraq was announced, foreign fighters began to flood the country. Syria was demonized at the outset, even though then-Secretary of State John Kerry dined with Assad two years before the conflict erupted. It should be clear that Washington’s issues with Assad are not rooted in human rights concerns considering the dictator had been in power for 11 years and was notorious for human rights abuses in the period before the so-called revolution began.

Though Qatar has been heavily involved in arming the Syrian opposition and calling for Assad’s departure (Assad being an integral Iranian ally), Qatar actually maintains an independent foreign policy agenda of its own. Over the past two years, Qatar has conducted over $86 billion worth of transactions in Chinese Yuan and has signed other agreements with China that encourage further economic cooperation.

This is incredibly important because Qatar shares its major natural gas reserve with Iran, and Iran also conducts its oil-related business deals with China in Yuan. Shortly after the nuclear accord reached in 2015, the Islamic Republic sought to capitalize on these economic opportunities by ramping up production on their share of the Iran-Qatari gas reserve. In November 2016, Iran signed a deal with France’s Total, a multinational integrated oil and gas company, to develop this project. Iran is expected to surpass Qatar’s gas production by next year, and Qatar was left with little choice but to join the venture. It lifted a self-imposed ban on developing the gas field in April of this year.

If Iran and Qatar continue down this path, the U.S.’ self-asserted hegemony over the world’s financial markets will directly come under attack, and rising economic and military powers like Russia and China will continue to reap the benefits.

Remember that Hillary Clinton’s leaked emails confirmed that the U.S. and France were so concerned with attacking Muammar Gaddafi in Libya not out of humanitarian concern, but rather, out of fear of his plan to unite Africa under a single gold-backed currency that would be used to buy and sell oil on the global markets.

Remember that in 2000, Saddam Hussein announced he would sell Iraqi oil in euros, and the Guardian reported in 2003 that Iraq had actually netted a handsome profit in doing so — at least until the U.S. invaded not long after and immediately switched the sale of oil back to U.S. dollars.

Perhaps it sounds like a conspiracy theory (even with Clinton’s leaked emails as evidence), but it’s important to ask why Saudi Arabia is so concerned with Qatar, if not for economic reasons? Because of Qatar’s support for terrorism? Hillary Clinton’s leaked emails also revealed that both Saudi Arabia and Qatar financially sponsored ISIS – making such a rationale hypocritical beyond belief.

Pot. Kettle. Black.

The push to oust Assad in Syria has almost all but failed, and Qatar, learning from its mistakes, is not relying on Assad’s departure to maintain its vast supply of wealth (though it would probably still welcome such a move). As Counterpunch explains:

“The failure of this insurgency, however, has spelled the death of this proposal, leaving Qatar bound to look East to Asia – already their biggest customers – for their LNG markets. But most of the existing Eastbound LNG pipeline infrastructure is controlled by Iran. For Qatar, then, cutting its Iran links would be cutting off its nose to spite its face. This is why the Saudis aim to demonstrate that the alternative is having their entire face cut off.”

How far in Saudi Arabia’s face-cutting agenda against Qatar these Gulf State adversaries will go is unclear, but Qatar has already seen some heavy-handed treatment in the early stages of this conflict. Further complicating the issue is the fact that Qatar hosts the largest U.S. military base in the region, with 11,000 troops currently stationed there.

Further, the U.S. just recently implemented a policy to target Iran for regime change. President Trump met with Saudi Arabia and the GCC nations earlier this year and sword-danced and sabre-rattled his way down a warpath with Iran. Trump’s military has been striking down Iranian drones and Iranian-backed troops in Syria, and the White House has just launched fresh accusations against the Syrian government regarding an attack that hasn’t even happened yet.

Clearly, Qatar cannot meet Saudi Arabia’s demands, and Saudi Arabia must be completely aware of this. As we have seen in Yemen and Syria, Saudi Arabia almost always resorts to outright brutality in order to bully non-compliant states into submission. As we have also seen in America’s treatment of Iraq and Libya, countries that depart from the U.S. dollar are not met kindly by the American military, either.

In this context, expect this rift to heat up on multiple fronts. We may very well be witnessing Qatar’s denigration into a Syrian or Yemeni-style battlefield in the months to come.

Let’s hope this is not the case.

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Cognitive Dissonance's picture

That them is fighting words.

Literally!

SHEEPFUKKER's picture

Remember, it's not an invasion, it's a liberation!!

Bunga Bunga's picture

Finally it makes all sense.

Bes's picture

trade wars lead to actual wars

when all else fails, they (the powers that be) take us to war

covert and overt

thanks trump

#maga

knukles's picture

You know what happens Larry?  That's what happens when you buy a bunch of Chinese crap.  It falls apart in 24 hours and you want to buy another one all over again.
This is what happens when somebody fucks a gas pipeline up the ass.

AVmaster's picture

Mutual defense alliances. Check.

Isolating "friends" and "enimies" alike with trade embargos/sanctions Check.

Making a list of demands that can never be fulfilled. Check.

Crazy ass leadership. Check.

Just want to fuckin fight with their shiny new "toys". Check.

 

Result: World War 1.... Funny how history fuckin repeats itself.

 

Arnold's picture

Hey, tribal ragheads.
Now go figure.

BullyBearish's picture

yep...new huge selective service facility built here with petrodollars...

 

for when our middle eastern 'friends" need more cannon fodder...

Insurrexion's picture

Send the registered Democrats to your selective service facility.

SoilMyselfRotten's picture

Libya learned this lesson the hard way

Mango327's picture

I'm enjoying the alt-media groupthink on this one. The petrodollar either is or isn't a reason to go to war. If it is, Exxon wouldn't be helping extract the fields. If it isn't, then the entire game has already changed and nobody out here has realized it yet. We'll see!

#UNRIG THE GAME, MR. TRUMP
https://youtu.be/MOl_hydCfBA

playit's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

hongdo's picture

This reminds me to watch "The Wild Geese" again. 

Cheka_Mate's picture

Classic film!

The best scene was when Richard Harris asks for Roger Moore to shoot him rather than be left behind in Africa.

"Let me tell you about your father..."

El Vaquero's picture

Drop the dollar and get Uncle Sam's big swinging dick across the face.  It makes sense indeed.  Just ask Saddam.  I wish we never had the world reserve currency.

JethroBodien's picture

Yep.  United States proxy Saudi Arabia bullies/blockades Qatar which was abandoning US dollar in trade with China.  Also the Philippines, which was tilting towards Russia and China was conveintly invaded by CIA/ISIS goon squads to destabilize the Rodrigo Duterte government.  Ditto on recent Ukraine, Venezuela and Yemen interventions as well.

As Putin stated, a person can throw a dart at world map and you are guarantted to hit a country the United States has either invaded ot influenced policitially.  If this the "American Exceptionalism" we here so much about?   Nothing is going to change until the American people wake up.

 

 

 

Cognitive Dissonance's picture

Must.Protect.American.Way.Of.Life

Sloth....Greed....Hypocrisy......Murder......etc

It works great when you're not on the receiving end of the American Way.

dark fiber's picture

The writing is on the wall. 

It is over.   Slowly, imperceptibly at first, and then the avalanche. 

Killdo's picture

unfortunately it does not even make Americans happy - they are pretty depressed, socially isolated, drug addicts, sick, diabetic bunch of poor bastards these days

shovelhead's picture

Shit.

Those are the lucky ones.

Zorba's idea's picture

Well, that explains it quite clearly. Somebody is going to get Gaddafied!

marathonman's picture

"We came, we saw, he died!"  cackled HRC.

peopledontwanttruth's picture

Ha wasn't this the country that the USA destabilized the entire ME so they could pump their gas to Europe.

Brilliant and this is the best and the smartest the country can provide

Great Deceivah's picture

Let’s hope this is not the case.

 

Let's hope this IS the case..

Nothing would be better than seeing two sandnigger nations warring with each other in the name of allah...

doctor10's picture

Saddam was forced by the US to publicly meet with and negotiate a woman Secty of State, Madeline Albright. Ghaddafi...Hillary. In between numerous others were forced to deal with a Black Woman Secty of State-Condi Rice. Public humiliation of Muslim Leadership. The only logical way out from under that is to de-dollarize and hope they go away.

Some bright eyes in Foggy Bottom and the US Congress described that puerile idiocy as "diplomacy" and still have yet to figure out why we're losing our seats at the GCC table...

In the immortal words of George Carlin...the difference between genius and stupidity-is that genius has its limits!

Insurrexion's picture

Old but important facts to remember about Qatar, KSA and Syria War.

October 2012

"(ANSAmed) - Rome, October 1 - Why would Qatar want to become involved in Syria where they have very few investments? This is the question the analist Felix Imonti poses in an article recently published by specialized website 'Oilprice.com' and by Joshua Landis' Siria Comment.

The kingdom, Imonti explains, ''is a geographic prisoner in a small enclave on the Persian Gulf coast. It relies upon the export of LNG, because it is restricted by Saudi Arabia from building pipelines to distant markets. In 2009, the proposal of a pipeline to Europe through Saudi Arabia and Turkey to the Nabucco pipeline was considered, but Saudi Arabia that is angered by its smaller and much louder brother has blocked any overland expansion''.

(KSA blocked the Qatari pipeline, not Syria as has been reported, and no one can confirm this story).

''Already the largest Lng producer, Qatar will not increase the production of LNG - Imonti continues -. The market is becoming glutted with eight new facilities in Australia coming online between 2014 and 2020. A saturated North American gas market and a far more competitive Asian market leaves only Europe. The discovery in 2009 of a new gas field near Israel, Lebanon, Cyprus, and Syria opened new possibilities to bypass the Saudi Barrier and to secure a new source of income''. ''Pipelines are in place already in Turkey to receive the gas. Only Al-Assad is in the way. Qatar along with the Turks would like to remove Al-Assad and install the Syrian chapter of the Moslim Brotherhood. It is the best organized political movement in the chaotic society and can block Saudi Arabia's efforts to install a more fanatical Wahhabi based regime. Once the Brotherhood is in power, the Emir's broad connections with Brotherhood groups throughout the region should make it easy for him to find a friendly ear and an open hand in Damascus.

''The fighting is likely to continue for many more months, but Qatar is in for the long term. At the end, there will be contracts for the massive reconstruction and there will be the development of the gas fields. In any case, Al-Assad must go. There is nothing personal; it is strictly business to preserve the future tranquility and well-being of Qatar'', Imonti concludes. (ANSAmed)."

http://www.ansamed.info/ansamed/en/news/nations/turkey/2012/10/01/Syria-...

(While the Syrian war is being sold as "Al Assad must go" and the pipeline, digging deeper, it is also about the Muslim Brotherhood vs. Wahhabism.)

Fast forward to June 2017

Qatar has been hamstrung by KSA and the failure to depose Assad in Syria to get their LPG to Europe. Turkey wants the gas and can run the LPG through its Nabucco pipeline to Europe. (Cancelled in July 2013).

KSA makes up terror story and gives Qatar an ultimatum to essesntially give up its sovereignty.

Qatar continues to say fuck you.

KSA invades Qatar.

Why? A quick war will jack oil prices up during a longer term price decline.

KSA needs the price of oil to rise $60 so Saudi Aramco’s 2018 IPO can generate the income it needs.

Today, Brent was trading up at $47.78.

The US Air force Base Al Udeid (south of Doha) and 11,000 servicemen are used to unseat the Qatari government with U.S. and KSA administration. Turkey backs off, but may sever ties with NATO and take over Incirlik Air Base in (planned) protest of the Qatar invasion.

 

Reads this report for more detailed information:

http://www.orsam.org.tr/index.php/?s=orsam|english

Search:  2011110_orsam.katar.eng.pdf

 

Bottom line:

It's a fucking mess.

any_mouse's picture

Now the thumbnail is an invasion coming ashore.

Pull It! already.

earleflorida's picture

if qatar is sincere, it should cancel the $12 billion defense cont., and buy aeroplanes from moscow

shovelhead's picture

Does Moscow even still make bi-wing aeroplanes?

SidSays's picture

When does the coup start?

Dyingtime's picture

The war is starting that will engulf the world.

Winston Churchill's picture

It started right after the Sochi olympics.

Just as wwii had its phoney war stage before general hostilities errupted, so have we.

I hope you made good use of that time,I'm sure the Russians did.

Yuan oil futures are probably the final straw for the petrodollar, supposed to start trasing early next month.

Uncle Scam will consider them an act of war.

We live in iinteresting times.

Arnold's picture

If only the Chinks would publish honest numbers.
Oh well, try the Yuan, please.
And your choice from column B?

Winston Churchill's picture

With gold futures also priced in yuan, the oil producers are selling

oi for gold,phyz gold as well, those yuan gold futures are delivery only.

Something you really cannot do with USDs,where its only a promise.

Its a very big deal, hence my comment about how Uncle Scam will view it.

A backdoor return to the gold standard.

Restorative_Ally's picture

WC: Where are you coming across this info? Unless I missed it, ZH is not notifying us of important events such as these anymore. I fear they may have been coopted.

emersonreturn's picture

thanks, winny.  your observations on sochi are very clear.  sigh, things are progressing with the regularity of a boar scarer.  we will indeed have a big slam.  very astute comment about the backdoor return.  OT, i trust your eyes are AOK.

Ink Pusher's picture

The Chinese, Russians and India are all 10 steps ahead of everyone else on the double time march to the return to the Gold Std.

The petro-currency countries all got caught with their pants down and a huge 'derivative debt dildo' in their asses.

The two greatest contributors to the demise of the USD are located within the borders of the USA.

CME and the FED.

any_mouse's picture

It is Qatar's fault for not submitting to the Petrodollar regime.

Libya and Iraq have paid the price.

Qatar definitely does not have a nuke program.

Perfect target for the Global Force for Petrodollars and ZioNATO.

Winston Churchill's picture

I guess we will find out just how many mirv warheads Iran bought during the fall of the

USSR after all.I wonder if the Ayotollah even knows about them.

Every western intelligence agency certainly does.

Scuba Steve's picture

... And by extension so does Wikileaks and Kim Dotcom.

 

nmewn's picture

Well.

Bye ;-)

montresor's picture

When these societies are ready to use toilet paper rather than their thumb.. then we'll give a shit..

Scuba Steve's picture

Bathhouse Barry disagrees, Reggies "used" thumb with a little sauce on it is always on his palette.

 

Winston Churchill's picture

Fingers my friend.Came  as quite a culture shock to me,but when in Rome ,and there isn't any paper,a man

gotto do what a mans gotto do.