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India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees
Two weeks ago we wrote a post that should have made it all too clear that while the US and Europe continue to pretend that all is well, and they are, somehow, solvent, Asia has been smelling the coffee. To wit: "For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper... Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", and now this: "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says."" Today we add the latest country to join the Asian dollar exclusion zone: "India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, a government source said on Friday, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions." To summarize: Japan, China, Russia, India and Iran: the countries which together account for the bulk of the world's productivity and combined are among the biggest explorers and producers of energy. And now they all have partial bilateral arrangements, and all of which will very likely expand their bilateral arrangements to multilateral, courtesy of Obama's foreign relations stance which by pushing the countries into a corner has forced them to find alternative, USD-exclusive, arrangements. But yes, aside from all of the above, the dollar still is the reserve currency... if only in which to make calculations of how many imaginary money one pays in exchange for imaginary 'developed world' collateral.
On India's induction into the dollar unluck club, from Reuters.
An Indian delegation has been in Tehran this week discussing options for payment and the source said the decision to pay in rupees was made after a meeting there.
"The Central Bank of Iran will open an account with an Indian bank for receiving payment and settling its import," the source, who has direct knowledge of the matter, said, adding the new system will start "soon".
The source did not specify the name of the Indian bank. But other sources have said that Iran could open an account with India's UCO Bank as it does not have any interests in the United States.
Who's this India country anyway?
India, the world's fourth-largest oil consumer, relies on Iran for about 12 percent of its imports or 350,000-400,000 barrels per day (bpd) and is Tehran's second-biggest oil client after China. But Washington has snapped tighter financial sanctions on Iran and wants Asia, Tehran's biggest oil market, to cut imports in a bid to pressure the Islamic nation to rein in its nuclear ambitions, which it suspects are aimed at making weapons.
And, oh yes, we forgot Turkey -the (lately very pissed off) gateway to Europe.
Turkey and Iran said on Thursday they want to increase financial transfers and that work is underway to strengthen banking ties.
When the dollar fails, and currency are devalued, barter begins:
India Trade Secretary Rahul Khullar said this week that the Indian delegation to Iran would work around the U.S. sanctions to protect oil supplies and promote Indian exports.
The government source said Iran has agreed to step up imports from India which added up to some $2.7 billion in 2010/11 and including oilmeal, rice and tea.
"This will cushion them (Iran) to some extent from exchange rate volatility," the source said.
Ironically, and as has been stated here many times before, by enacting the proposed sanctions and embargo, the US, but mostly Europe is doing nothing but shooting itself in the foot, as it opens up a brand new pathway of not only outright defiance, and thus political brownie points domestically for the likes of China, of the US, but it will allow the "Asian dollar exclusion zone" to buy even more crude, at cheaper prices, while in the process it is forced to build closer monetary relations with its neighboring countries, relations that rely less and less on the world's increasingly less relevant reserve currency.
Asian support for U.S. sanctions is vital since the region buys more than half of Iran's daily crude exports. The European Union has agreed in principle to halting Iranian crude imports and could finalise the ban on Jan. 23.
China, Iran's biggest crude customer, has rejected the U.S. sanctions as overstepping the mark and defended its extensive imports from the second-biggest oil producer in OPEC.
Necessity may be the mother of all dollar-exclusive invention, but Obama is surely the father of necessity.
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Several long time posters at 'The Oil Drum' have pushed the export land model (ELM) ... I don't recall who was the first to put forward the concept, but does it really matter?
The ELM would create stairstep moves of price rises accompanied by plateaus as consumers cut back followed by another price increase then another cut back plateau... etc.
I see nothing incredible about the ELM theory/process if one believes that the amount of oil on the earth is finite... and last time I checked the globe has not noticeably expanded.
The problem with the Oil Drum site is that every blip up in the oil price is immediately contributed to PEAK OIL NOW!!! When one trys to reason with them, as when oil ran up to $147 bbl (and I shorted it), they scorn one and kick one off their site. Too bad they never learned that having an open forum means listening to all ideas... and their overbearing moderator is beyond belief... 'her way or the hiway'...Screw the oil drum, iows.
BTW, how is that research on an alternative to oil coming along?
Yes, a lot TOD got a little ahead of itself when oil spiked to $147...
However, if you followed the discussions afterwards, you will see that many realize that they misread some tea leaves and that the post peak oil world is a little more complex than first blush would indicate....
In other words, they learned a bit and are refining their understanding... (pun intended)
And don't conflate the postings of a small dogmatic minority as being the concensus there...
Google is your friend.
http://en.wikipedia.org/wiki/Export_Land_Model
google is turning into Big Brother, soon a dictator of the internet.
WOW! You actually went to Google to find a Wikipedia article?
YO, TYLERS. Please, I beg you, bring back the captcha questions.
The export land model is when an oil producing country subsidizes its domestic oil consumption, pricing gasoline perhaps at 25 cents a gallon.
What happens is domestic consumption explodes as oil is the selected solution for all problems.
As domestic consumption rises, consuming the oil you are producing out of the ground, the oil you have available for export (to earn revenue for the country) declines.
The Saudis are ramping domestic consumption at about 7%/yr. At that rate they will export zero oil by 2030. It will take essentially 9 million bpd off the table.
The Iranians slashed their internal oil subsidy in late 2010. Domestic strife has grown. They are way post Peak for domestic pumping so they can't ramp production to offset rising domestic consumption. This makes them intensely interested in finding ways to Get Paid For Their Exported Oil.
This is also why the Nigerian government gutted their own domestic gasoline subidy. They are losing export revenue to internal subsidy. Their people have rioted and the government ahs backed off its subsidy cut.
Export land model is a supposition by Jeffrey Brown and Sam Foucher whereby an oil exporter's greatest 'cost' in oil is the consumption taking place within the exporter. The outcome of increased consumption is the acceleration of depletion from the standpoint of oil importers.
The term comes from the model's 'Export Land' which is an imaginary oil producing country.
Bilateral trade deals for oil are being promoted by Chris Cook who used to be compliance boss for the IPE (now part of ICE):
http://www.nakedcapitalism.com/2012/01/chris-cook-naked-oil.html
Bilateral trade:
- Eliminates finance sector middleman,
- Allowing the producer/customer to set their own price,
- Reduces or eliminates the need for f/x hedging,
- Reduces the need to obtain 3d party currencies: yen, euros, dollars, etc. which may be in short supply and expensive in their own right.
Bilateral agreements are commonplace within utility service provider contexts, but less usual in crude oil business where customers pay spot prices in dollars or euros.
BTW, these exchanges have nothing to do with acceptance of dollar or dollar worth. The dollar crude market is large due to the largest petro customer -- Chimerica -- being dollar maker and price setter (in dollars).
Another thing to keep in mind is that non-dollar currencies offer not quite as 'good a deal' to producers. This dollar premium is likely to increase particularly after the euro disappears.
Steve... Excellent post. We are seeing the same happening now in PMs and it will spread to all sectors where hedging was a normal part of doing business. MF Global has driven a stake in the heart of the CRIMEX and LBMA...
Big PM buyers are now going directly to miners/refiners and avoiding as much counterparty risk as possible...
for the reasons you listed... If this worthless administration and INJustice Dept won't prosecute theives, we best avoid the theives.
..........................
Eliminates finance sector middleman,
- Allowing the producer/customer to set their own price,
- Reduces or eliminates the need for f/x hedging,
- Reduces the need to obtain 3d party currencies: yen, euros, dollars, etc. which may be in short supply and expensive in their own right.
+a lot. great post from naked capitalism.
yup petrodollar sounds about right as far as American regency is concerned
And the sign said "Long-haired freaky people need not apply."
However, short yellow people, medium height darkly complected gold lovers, caucasian vodka drinkers, and basically anyone else is very encouraged to apply.
Exclusion zone. X clue, Son.
Hegemony. Hedge money. Funny, eh?
http://aadivaahan.wordpress.com/2012/01/19/shattering-midass-curse-gold-de-spell-ed/
(this one was for you ORI)
indeed Vic V. Funny and full of meaning.
How mean...
ori
To the others - sorry to go off-topic. I understand if you want to junk me as you feel quite passionate about India transacting with Iran.
ORI I thought this was your most compelling post in a while:
http://aadivaahan.wordpress.com/2011/12/28/world/
So, the chains are self worn. Such is how the “system” is set up. see the Devil Card in the major arcana of the Tarot. Two humans, with chains around their necks. Standing at the feet of Baphomet. But, interestingly, the noose of the chain is so big, they could easily be slipped off.
Perhaps the card is a depiction of what is and what will always be, no? Human nature is what it is.
Thanks Vic.
I learnt an excellent latin phrase from Gene Marchbanks, really sums it up.
Mundus vult Decipi, ergo decepiatur.
People want to be deceived, so deceive them.
ori
People want to be decveived, so deveive them.
This is kind of the shit-or-get-off-the-pot moment for all of us, no?
Yes it is.
SOGOTP!
ori
Lie to me, I promise, I'll believe.
Lie to me, just don't Leeeeeeeeeeeeeave.
- Sheryl Crow
Nice one ORI
:-) I liked it enough to want to use it a few times, so I remember it.
ori
Wrong translation--it is not an invitation to lie or manipulate, just an observation (much loved by James Branch Cabell and H. L. Mencken):
"The world wants to be deceived, and it is deceived"
Thanks Optimus, are you saying that from Latin Knowledge or Google?
ori
This means WAR!!! The jew supremacist NWO gang aren't going to like this!
Here's the latest from Brother Nathaniel:
AMERICAN JEWRY
IS A GLOBAL REGIME
By Brother Nathanael Kapner, Copyright 2012
http://www.realzionistnews.com/?p=691
I just discovered him the other day. Interesting stuff. I also have ordered a copy of Michael Piper's "The Thirteenth Tribe". The truth is in plain view IF we want to see it. I don't hate, I just feel sad that human history has to be filled with such evil.
By Brother Nathanael Kapner, Copyright 2012
http://www.realzionistnews.com/?p=691
He needs to add a http://www.opensecrets.org/usearch/index.php?q=jewish&cx=010677907462955562473%3Anlldkv0jvam&cof=FORID%3A11&searchButt_clean.x=0&searchButt_clean.y=0 Open Secrets Jewish Search page for the Lobby Dollars..
and then do a search for the Bank Boards and Executives that are Jewish Controled as well..
I have done some ruff numbers.. the Jews Give More money to Washington DC than anyone else times 10.
10 times more moeny than any other group.
WAKE THE FUCK UP!
The last time a guy took on the money changers and 'threw down their tables from the temple' it didn't work out to well for the guy...
money changers 1
guy 0
Of course, if an entire people were to rise up against the money changers the outcome could be much different.
Problem being... The money changers have purchased several layers of protection between themselves and those that would rise up against them.
This is about as simple as I can make it... comprendo?
if said "Guy" had me around.. things would have turned out differently.. My Love for said "Guy" over rides turn the other cheek in any and ALL! instances of potential violence towards said "Guy".
and the layers? are easy to peel back..
the layers are all about control, keeping the peace and my personal favorite! maintaining order.
here are the numbers.. 30% of people are crooks, criminals.. this doesn’t change because they wear a uniform.. if anything the numbers are greater because of the unity and control that organized, licensed, gun carrying little dicked ego maniacs strive for.
so.. if 30% are dirty / criminals.. then another 30% has to look the other way.. reasonably... which takes the number of the corrupt to 60%.
Internal Affairs.. for any local or federal organized group of gun carrying little dicked ego maniacs.. is a sheild.. to protect the department from civil litigation, whether that means cover up the CRIMES against "We the People" or Hide the Evidence.. no matter what.. it is better than $1 million dollars worth of over time being gifted to a person who suffered at the hands of the Meter Maid playing dress up like a Untied States Marine.
so.. if we can conservatively admit to ourselves.. easily that 60% of Police.. Local and Federal are Dirty or Criminal.. based on the fact that 30% are Criminal and the other 30% is complicit and thusly guilty by allowing the Crime to not only happen but to continue unabated.
The Brotherhood of the Shield!
Now, knowing that conservatively the majority of law enforcement is dirty..
knowing the most prosecuted crime by law enforcement is Contempt of Piggy! http://www.youtube.com/watch?v=6hS3o02sZ-s Ten Rules to Avoid "Contempt of Cop" - Rule #1 (By a Harvard Esquire)
So, 60% of Piggy’s are dirty.. ALL of them are working to pump their little dicked egos... and the most important thing.. is these Licensed, Brotherhood of the Badge / Shielded Fuckers.. are the one who steal Americans Rights..
Cops are the Terrorists who go out every day and infringe on the rights of Americans..
now consider these ego maniacs get paid $100,000 Grand a year PLUS after just a couple of years on the job.
Everyone of these little dicked ego maniacs.. is sucking from the Tax Tit!
and you did notice the only public union(s) not crushed.. were??? the Licensed, Armed, Criminal, Ego Maniacs..
Jesus was killed on the Cross by Roman Police / Soldiers.
So what can we learn from Jesus being Murdered and Our Rights being stolen every day?
Figure it out.
Hey Obama/Clinton, How's that King of the World thing working out for you. Not in my name do you represent. Just mail them our natty gas instead of Koch arbitrage and bring jobs for the postmen.
It wasn't DESIGNED to last forever!
India, Russia AND China reject the sanctions? Then the sanctions are worthless. Pushing them through just reveals our weaknesses.
America as a super power was finished the day when Bush said,"either you are with us or against us".
check, and mate BITCHEZ...........
This is the beginning of the decline of the US Dollar as the World's reserve currency. This will not help a US economic recovery, not that there is a recovery; welcome to a new world financial age, no wonder our focus is on Asia, they are the ones who do not want to play ball with the US and to some degree the EU. I think the failed and on going central banking system we have in the FED will be the most costly experiment in American history, foreign policy and domestic politics.
Curiously, using DIME, how can we have economic power over other nations if they do not trade in the US FED's currency or buy US FED'S bonds or bank in US FED's banks? Not only is this a decline in the US economic power but also in diplomatic power as well. Information power, I can say we have some parity in the world, so I grudgingly say we are even there. the only thing the US has left is the military. We are slowly being reduced to a quarter of the power we once enjoyed as a nation some 30 years ago.
Will the US cry to the WTO over this? Will be interesting to see how this plays out.
There are so many problems in the US, where do we even begin to fix them?
The Bernank and the Democrats muslim destroying the dollar.
I think it's time we sanctioned the countries screwing us, while we support their economies.
India, if they were to lose the US jobs outsourced to them, would murder their economy.That's a start.
This is slightly off-topic, but in-line with why sound money matters in an age when the fiat's days are numbered.
Has anyone noticed the increase in premium for 1 oz Platinum Eagles? Earlier in 2011, you could pick one up for a similar premium to that of a Gold Eagle. It's now at least twice that. To boot, see if you can find one for sale. I checked Kitco and APMEX. Nothing available.
Anecdotal, I know, but still real.
Anyone seeing similarly?
Premiums on platinum bars and Maple Leafs have similarly doubled in the last year or less. And yet, availability is quite good on all platinum products from the major online dealers --- as good, in fact, as I have seen it in several years.
Best deal right now, considering the buy-sell spread, is the 1 oz. Australian Platypus coins.
holdbuysell
Yep, their available if you want to pay $100-$200.00 over Spot.
I prefer saving that $$$$$, and paying under a $100.00 for Platypus.Or even less for some of the older foreign coins.
1oz Plat is 1oz Plat.
11 pm prediction from Nate Silver (he's good). South Carolina tomorrow;
Gingrich 38%; Romney30%; Paul 15%; Santorum 14%
http://elections.nytimes.com/2012/fivethirtyeight/primaries/south-caroli...
must be the flouride in the water
Colbert showed poll of himself in the lead.
what do you expect from a dumbfuck state like south carolina?
u r caroliner?
excited about Caroline or the f***word in store for sweet Caroline?
Words have a levitating effect on male and female hormone balances...Its now accepted, females can be aroused on a mere word, a silent word, even onomatopoeia; like a popped champagne cork. OOps, that baaad. Bubbly coming out.
the "results" were a joke. hehe,
like the actual election results and the federal government.
is this mic on?
It looks like they can not see your good humor!
He beats Ron Paul in this poll--
http://www.thestatecolumn.com/south-carolina/poll-ron-paul-could-have-lo...
Just freakin' hysterical...
My husband reminded me that a long time ago in SC, voters RE-ELECTED a politician that had been convicted of a FELONY!
That's all you need to know about SC.
In that case, Grinch-Grinch should do quite well.
withheld
How will this affect the DXY?
The DXY has been strengthening primarily due to a lack of volacity. This should be obvious due to the fact that supply has increased dramatically. The volacity has decreased because now it trades between less parties. In fact, it is Europe and the US that are the last traders, and they are merely sitting on the currencie.
The DXY may test 81.5 again (81.5 is the long term holding number, a number that has been important for years). Yet will the DXY remain strong while shunned by Asia?
Long term the dollar's trend is very bearish, but it may stay in the middle of it's long term range (81.5) for a little while longer....I'll give it 3-4 weeks until the dollar falters.
I'll give it 3-4 weeks until the dollar falters.
Should we hold you to that? Because that doesn't seem smart.
Obviously, so let me clarify:
I think that the DXY will continue to meet resistence at 81.5 but in about 1 month it will begin to move back to the 76.5 range. Then on March 21st I think we will see the DXY back at 73.
Should we bookmark this post?
You'll know the answer then... ;-)
The DXY is an artificial, spurious and meaningless measure of the value of the US Dollar, which it demonstrably and inherently does NOT measure at all. Trying to use any sort of average of various depreciating fiat currencies to measure the "value" of a similarly depreciating fiat currency is the height of folly and stupidity.
Agree. Been watching the BDI lately. Approaching historic lows.
"the BDI lately. Approaching historic lows"
Because we need fewer bulk carriers to ship USD overseas nowadays?
I thought we airmailed via C-5A
"Because we need fewer bulk carriers to ship USD overseas nowadays?"
I reallly hope you're being humorous. Because it measures the movement of finished (or near finished) final product AND raw bulk materials, it's signalling a serious downturn in global production at the moment.
"I reallly hope you're being humorous."
Yes, I was being facetious. We really don't ship our USD by large vessels. All it takes is a click from Timmays mouse and we have just exported a ton of inflation, er.....currency.
That shit is amazing! I've never seen it do quite that before. As a predictor, it usually does quite well. Taken in conjunction with the ECRI, I am looking for short opportunities.
akak... 100% correct. Measuring the dollar agains what?... another pile of fiat bull shit?
Measuring the US Dollar will be very accurate when the paper traders blow themselves up... which they are well along the way to accomplishing.
At that point the dollar will be measured against all commodities. We will find out how many dollars/euros/yen/rupi/yuan/etc the oil producers want for a bbl of crude, a bushel of wheat, a ton of copper, an oz of PMs, etc.
The only true measure of fiat is against a real commodity. If countries no longer buy into 'full faith and credit' of a soverign, then the fiat of that soverign is dead as a doornail... excepting usage within the soverign between workers and their grocers and gas stations.
As happened in Zimbabwe, Weimar Germany and many others, at some point no amount of fiat will purchase anything that the consumer needs for daily life.
Insert the above into your DXY calculation.
outstandingly concise!
right you are, both akak & Snidley - we're about to see how "value-able" the fairy tale of fiat is vs. real, tangible products that have use. . .
like most things that only have meaning in ones mind, fiat currencies are subject to the alarm call, and many are waking up, though perhaps fewer amrkns, having lived the story of supremacy their whole lives. . .
http://www.zerohedge.com/contributed/dollar-bull-trend-definitely-over-and-how-might-impact-equities
ori
increasing "stability", declining VIX etc seem to hurt the dollar...so I guess we can expect more manufactured disaster and war
Death by a Thousand cuts....painful.
So what is the dollars future?
Just as with everything else in the known universe: cessation.
Same as the future of all fiats as pointed out by Voltaire... ZERO
Here is his exact quote...
“At the end fiat money returns to its inner value—zero.”
- Voltaire
Or, if you need further confirmation...
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation […] Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”
- Alan Greenspan, Gold and Economic Freedom (1968)
I am thinking that it is not very important what form of currency is usef to trade "some portion" of the 12bn in trade conducted between India and Iran. Is this a joke? It certainly got the fringe arousef.
Google (or whatever search engine) "pretrodollars." This is not small stuff, this is the essense of US power: in this case it's a firm rebuke of the USD; the USD is losing value, rapidly.
"So what is the dollars future?"
Good Question! How does that saying go?....... On a long enough timeline........................
Jewish American newspaper : Mossad should assassinate Obama so the US can attack Iran
http://www.haaretz.com/news/international/uproar-after-jewish-american-n...
Nice people you got there.
No big deal. They did the Liberty. And got away with it. Just serving notice of what they can, and will do if he's disobedient.
The US should be outraged at this call for violent regime change.
The US only gets violent when they run out of free chicken at Popeyes...
How many MSM outlets will this story appear on?
Will ZH run this story?
How many financial sites will run this story?
What story? That some ass-wipe IN ATLANTA suggested that killing HIS(US) President might be to the benefit of a foreign power?
Big deal.
But it is OK for us to wack leaders in other countries.
Hypocrite ass.
oh sorry.....here's the /sarc switch just for you, genius.
The zionist bankers have no fealty to anything but their own empire.
Puppets are disposable for their ultimate purpose.
Very true. The King David bombing was a clear signal to the English that the Zionists no longer seek their protection. Cue the US as global super power and protector of Israel. 911 was the clear signal to the US...but who will Israel seek as their new savior???? My guess, starts with C and rhymes with anberra.
Canberra? Australia? You're kidding right?
no i'm not kidding and remember you heard it first here. don't be fooled by Australia's lack of military might, it won't matter. An enforced non-proliforation treaty will resolve that. Future wars will be fought electronically and through financial and social destruction without even sticks and stones needed. I think what Einstein meant to say is that WWIV will be fought with Apps.
Not to demean Australians, I've got relatives there, but Australia only exists at its current height by the grace of coal and iron ore sales to China. It's going to start collapsing as China's wild "growth" stalls and collapses.
Statistics:
http://www.dfat.gov.au/publications/tgs/FY2011_goods_services_%20top_25_...
http://globaleconomicanalysis.blogspot.com/2012/01/australia-roundup-oce...
Ozz, you make me laugh. Before all is said and done Australia will probably be a member of the SCO.
Anyone in the SE Pacific that believes they can defy China ten years from now is not paying attention to what is happening.
For instance... One year ago who would have predictited that Japan and China would agree to trade in the respective currencies, avoiding the dollar?
One year ago who would have predicted that Canada would have chosen China over the US to sell their oil to, probably having more faith in the Yuan than the dollar?
One year ago who would have predicted that India would agree to purchase Iranian oil with Rupees and avoid US sanctions and dollars?
Things are happening fast and the pace is picking up.
Yes and who would dare predict that in a few years the Zionist will abandon the US, after destroying it, and set up camp elsewhere? Why do I think Australia? Precession to the next anglo imperial colony far from the destruction they're about to leave behind. Warning to all Aussies from an Aussie living in the US.
Zionists will not move to Australia on mass... Not when Australia sees that the only viable future for them is to join the other powers in SE Asia. That means waving goodbye to the queen and joining the SCO and, really, considering their location on the globe, and their commodities trade with SE Asia,what choice will they have?
China already has a large population living in Australia and it's going to increase with time.
BTW, the Chinese are the only people on earth that grade out higher than Jews on IQ tests. Bell Curve, among many others, have proved this consistently.
Zionist Jews are too smart to try the bs they get away with in America with a large Chinese population in Australia that will soon be joining the ranks of the Australian government in numbers. The Zionists would soon be attending 'reeducation camps'. Anyone here believe the Chinese Australians would be dumb enough to turn over their money supply to Zionists?... Only in the dumbed down West have the Zionists captured the banks and then the pols and then placed the populations in debt servitude.
It never ceases to amaze me that Americans think the Chinese are not intelligent, are easily fooled, do not understand capitalism and all other forms of economic/political organization.... and would be subject to trickery by Zionists.
For the last three thousand years, Jews and hindoos have never shown loyalty to any one but money.
Wow - talk abt them ignorant stereotypes. Zero - do us all a favour and do some reading OK?
Not just the end of the Petrodollar. The US, at warp speed, is loseing any chance of cheap energy for the future as well... How's that Obama windpower woking out for ya?
" How's that Obama windpower woking out for ya?"
Sadly, it is doing very poorly. About as dismal as solar power and your use of a spellchecker.
Yeah, spell check.. I found a mispelling in Walden Pond, must have been the typesetter so really a complete waste of my time, burned it, no use reading it after all. Good point, thanks spell Nazi for protecting us all from missppelledd ideas..
Calm yerself
What Iran should ask for is refined oil. They don't have refineries in Iran... I bet you could set up oil refineries in China or India for a fraction of the cost.
And it would be much less likely to have a conflict in space-time coordinates with a cuise missle or fifty.
China already has the world's most advanced refineries. China has more refineries that can crack heavy/sour crude than any country on the planet.
to think that those french refineries are now rotting like rusty ships in their yards, as is probably the case of American counterparts, all obsolete energy guzzling relics of past.
No, no, no. That oil is no good. We can never figure out that oil. Our current state of knowledge is the endpoint. Peak oilers told me so.
what u saying ... that is 10 years back. now iran has refineries and infact they export refined oil to other countries.
...der is sumding berry fimiliar about dis. http://www.youtube.com/watch?v=MEWTTbtl82s&feature=related
China and Russia are salivating at the prospect of America's collapse by its own hand. Sadly, the US is by far its own worst enemy.
US has no sovereignty vis a vis Israel. A dancing puppet. Obama balking, a little, on Iran...because he senses a catastrophe. Zionists don't care. These people arrange revolutions, world wars, holocausts to get what they want.
Baloney. Israel to China is like a gnat to an elephant.
Witness little Timmy's recent trip to China. What happened when Timmy got back? Suddenly the US/Israeli planned war games near the Strait of Hormuz were called off 'for budgetary reasons'... lol
If Israel starts a war with Iran without US backing they will get squished like a bug.
If Israel starts a war with Iran with US backing, Israel gets squished and the US loses it's 'invincible carrier task force' threat; ie, the threat is no longer credible if the US loses some carriers in a scrap with an Iran backed by Russia and China.
Forget war with Iran. No matter how much the neo cons want such a scenario, cooler heads will probably prevail... If not, be prepared for all out nuclear war. Jim Rickards was wrong on this call.
Perhaps they'd just be happy if we got out of their backyards (quit fucking spawning all those "revolutions")?
Seer... Brilliant idea! And, perhaps we could actually try two way meaningful conversation with other soverigns? Diplomacy... Which we have foresaken because we mistakenly believe, like all empires, that the military is the solution to all problems.
Looking forward to one of those fancy graphics, periodically updated, showing the globe broken down by country, and the currency(s) used to trade between country pairs. Quite a bit of momentum building against the use if USD. When is the tipping point?
We may already be there - China/Japan was the big one.
Any bankers out there in zerohedge?
See, all dollars, except green back printed in paper, are settled and deposited somewhere in New York. By denying access, US has leverage over any bank holding dollars. ( Not a banker myself, so bankers, though, hated, are welcome to comment).
In the same token, all Yens are settled somewhere in Tokyo, and Yuan, somewhere in PeiKing ( or Shanghai), etc. So long as banks do not hold dollars, US, suddenly, has no leverage, and lose the benefit of using the dollars deposited by foreign owners via foreign banks.
With China, Russia, Japan, Korean, etc, etc, entering into bilateral agreement to forgo dollars, suddenly, US loses leverage of serving as the settlement media and all benefit incident to that role. Wondering when Saudi Arabia will enter into a Yuan agreement with China? Then, Saudi prince would import whale suzi from Japan, and pay Yuan to Japan Suzi maker, and then the Japan Suzi maker would pay Yuan to buy rice from China farmer, and then China farmer would buy petro from China oil company, then China oil company would pay Yuan to import oil from Saudi . See, Mom, no dollars. Bankers from New York all jump from imperial tower for lack of transactions.
YOu don't like YUan. No problem. Saudi prince would import whale suzi from Japan, paying Yen to Japan whale suzi maker, then whale suzi maker would import rice from china, paying Yen to china farmer, china farmer converts Yen to Yuan and buy oils, then china oil company pays Yen to Saudi for buying oil. Where do China oil companies got the Yen? Glad you ask. China and Japan had a Yuan/Yen swap deal, so anyone in china/Japan can get yuan/yen easily. See, Mom. no dollars. Bankers from New YOrk all jump from imperial tower for lack of transactions.
Once Saudi enters into swap deals with China/Japan/, game over for US. Sanctions all you want, just nobody cares! As for Euro, well, sanctions all you want, just make sure there will be a euro after the implosion of PIIGS!
I can't argue with your analysis.
Just one question: who is Suzi?
suzi wong, famous pole dancer of Macao, you gotta get out of NY Akak, go see the world. She be the new queen of drool on the pole moon beam. Great with her Suzuki bike act!
Actually, I am an entire continent away from New York, a place I cannot even imagine existing (I could not call it "living") in. And while my remote corner of the USA is perhaps even more removed from the mainstream of American society than is New York City, it is nevertheless far less provincial and navel-gazing.
If you knew Suzi, like I know Suzi...
sorry, couldn't resist that.
Hi de hi de ho.... Whale Suzi?
Bankers from NY all jump from Imperial Tower?
Hilarious post and likely spot on as well :-)
Kaiser Suzi
OT - This just in
Sinking of Costa Concordia fully explained
Oldest reason in the world. A touch too much bragadoseo trying to impress a female
He tripped, and found himself in a Moldovan dancer. Could not get out for hours.
Holy Schettino!!!
Not about bankers. About USN. That's what keeps Saudi's & all other non-nuke powers in line. If we lose IranWar - and there still is a Middle East, or a World - then Saudi's will bolt. Brit Empire actually collapsed when Japs smashed Brit Eastern Fleet off Ceylon, March-April 1942. Mantle passed to US exactly one month later when Adm. Fletcher turned back Japs in Coral Sea, then routed them at Midway. Violence rules, ultimately, not currency.
News from Hong Kong
December 24, 2015
The US NAVY Carrier xxxx from the 7th Fleet was detained by Hong Kong High Court today for not paying the vendors for supplies purchased from Hong Kong. It is reported that local vendors refused to accept US dollars as payment and the US Navy could not secure YUan as payments.
The Hong KOng HIgh court has set a deadline to auction off equipments from the carrier if the US navy could not satisfy the debt before the deadline.
You're thinking about Prince of Wales and Repulse - that happened off the eastern coast of Malaysia (then Malaya)
apparently there was another battle, near ceylon in april of 1942.
I thought that Commander Adama routed the Cylons. Were they still causing problems in 1942?
But that didn't really doom the Brits - Prince of Wales and Repulse were worse, because a lot of resources were poured into those 2 battleships and the building of Singapore Naval Base. Plus they lost the commander of the Eastern Fleet. That was the moment the Brits realised that they couldn't defend their empire any more.
If you're going to be a anti-Zionist conspiracy nutcase, at least be a well-researched one, please.
...who was it that went to the Saudis and told them they need to use the dollar in the first place? ...Oh Henry. Well that worked for a long time. So, you really think military power had something to do with it? Lol. ...or will. Lol.
"In 1951, under a mutual defense agreement, the US established a permanent US Military Training Mission in the kingdom and agreed to provide training support in the use of weapons and other security-related services to the Saudi armed forces. The US Army Corps of Engineers assisted in the construction of military installations in the kingdom. This agreement formed the basis of what grew into a longstanding security relationship."
"In the late 1950s, King Saud, the eldest son of King Abdulaziz, came to power after his father’s death. During Saud’s time the US-Saudi relations had faced many obstacles concerning the anti-communism strategy. President Dwight D. Eisenhower’s new anti-Soviet alliance combined most of “the kingdom’s regional rivals and foes”, which rose the Saudi suspicions. (Grayson, 1982). For this reason, in October 1955, Saud had joined the pro-Soviet strategy with Egyptian president Gamal Abdel Nasser (Pollack, 2002). Furthermore, Saud dismissed the US forces and replaced them by Egyptian forces. Thus, this act had sparked and innovated a new and a large conflict in the relationship. But in 1956, during the Suez crisis, Saud began to cooperate with the US again after Eisenhower’s opposition of the Israeli, British, and French plan to seize the canal. Eisenhower opposed the plan because of anti-Soviet purposes, but King Saud had admired the act and decided to start cooperating with the US (Pollack, 2002). As a result Egyptian power greatly declined while US-Saudi relations were simultaneously improving."
US relations with SA are long and complicated. Above are a couple of paragraphs from a very biased and incomplete history of Brit/American relations with SA. Here is the Wiki link for what it's worth...
http://en.wikipedia.org/wiki/Saudi_Arabia%E2%80%93United_States_relations
No need to argue....they're both so interconnected now it's hard to see where one picks up and the other leaves off.
Fiat makes purchase of military might possible....military might makes Fiat domination possible.
On and on it goes...where she stops, nobody knows!
It usually ends with a punishing military reversal. The officer ranks of an empire which has long enjoyed dominance become quickly infested with pompous brass polishers and craven careerists. Meanwhile, some obscure history teacher is studying his Napoleon, Wellington and Sun Tzu. Brass polishers fumble away entire armies because they have too much to lose, their social position, money, etc. They have forgotten, or never understood, the Bushido tenet which states ...The warriors true and constant companion must always be death.
Fiat builds mountains of materiel, and oceans of complacency.
Great post! And your final sentence is rhetorically perfect.
Sorry, wrong. It is about bankers, and money. That's what gets the fleets and troops there in the first place. You think the military does what it wants, and the bankers follow? Nope, it's the other way around.
Smedley Butler spelled this out a long time ago (banks are, after all, corporations).
the whole invasion of afghanistan thingie was to make way for the pipeline (gas and oil) from the caspian the pakistani coast so that india would not fall under the influence of iran (well, its oil and gas!) and get their hydrocarbons from appoved dictators.
alas...
Don't forget the Afghan opium poppy fields. Essential to keep the CIA awash in black funds, doncha know.
Are you saying the CIA has spent all the Black Eagle gold already?
Apparently. Now they are resorting to smuggling "fireworks" (Patriot missiles)
added bonus, essentially.
don't forget the taliban visited sugarland in 98.
took 'em to the beach, they did.
"Last October, the Central Asia Gas Pipeline Consortium (CentGas), in which Unocal holds an interest, was formed to develop a gas pipeline that will link Turkmenistan with markets in Pakistan and possibly India. The proposed 790-mile pipeline will open up new markets for this gas, traveling from Turkmenistan through Afghanistan to Pakistan. The proposed extension would move gas to New Delhi and connect with an existing pipeline. As with the proposed Central Asia oil pipeline, CentGas can not begin construction until an internationally recognized Afghanistan Government is in place.
The Central Asia and Caspian region is blessed with abundant oil and gas. The impact of these resources on U.S. commercial interests and U.S. foreign policy is significant. Without peaceful settlement of the conflicts in the region, cross-border oil and gas pipelines are not likely to be built. We urge the Administration and the Congress to give strong support to the U.N.-led peace process in Afghanistan. The U.S. government should use its influence to help find solutions to all of the region's conflicts.
Developing cost-effective export routes for Central Asian resources is a formidable task, but not an impossible one. Unocal and other American companies like it are fully prepared to undertake the job and to make Central Asia once again the crossroads it was in the past.
"We have the same relationship [the Taliban] as we have with the other factions. We have talked with them, we have briefed them, we have invited them to our headquarters to see what our projects are."
Source: Testimony of John Maresca (UnoCal), "Hearing on U.S. Interests in the Central Asian Republics," House of Representatives, Subcommittee on Asia and the Pacific, Committee on International Relations, Washington, DC., February 12, 1998
It's about time!! Asia and the Middle East needs to put a stop to Obama Bernanke and the Federal Reserve's wealth destruction/currency debasement.
The rest of the world needs to put the fear of god into the US Federal Reserve banksters.
The US has turned into the has-been British Colony. Time for Asia, Middle East and South America to dump US dollars and take away the US reserve curreny status. The US has totally abused the privilage.
The sooner the rest of the world refuses US dollars the better.
" put a stop to Obama Bernanke and the Federal Reserve's wealth destruction/currency debasement. "
Bring back GW!
Listen, the "currency" is pure nothing anyway, never WAS. Even before the Fed it was the target of manipulation.
Everything that's not important (not food, shelter or water) will eventually become pretty much worthless. And there's not a fucking thing that ANYONE can do about it. The NATURAL progression has always been driving things, it's just that now the sign posts are too hard to miss (why the Internet is a problem to TPTB).
I hope Obama's Hope team is as smart as I hope. ;) We know Obama has ballz after offing OBL.
illadeljim
We know Obama has ballz after offing OBL.
Balls?.................all he did was sit on his ass, and give the ok.
That takes NOTHING.
Caesar just flips a finger, and its done.
This January feels like waiting for the 2nd boot to drop.
http://www.youtube.com/watch?v=JsCF7LSU8Zs
Hundreds of US Army Tanks on Train in California. Getting ready for World War 3, Martial Law?
Those are very light tanks. No main cannon. The kind of armor that's only useful against people with nothing but small arms. Urban warfare?
Anyone recognize the type? And those trucks in the middle - fuel tankers?
Edit: Better video of same train: http://www.youtube.com/watch?v=CzCGBYcCta0
Military equipment train loaded with tanks and other vehicles of war rolls through Morgan Hill, Calif. on Jan. 19, 2012. The train originated in Oxnard and is headed to the Sierra Army Depot in Herlong. This train ran as the UP 7623 SOXHR-17 via the Coast Line.
Those are M2 Bradley APC's & tankers all with euro camoflage. It's standard procedure to travel without 25mm cannon guns. Probably filmed in southern California & ready to go somehere....
The question is where.
hero
this comment has been flagged for further discussion.
http://www.zerohedge.com/news/question-where
"Loose lips..."
StaightShooter is absolutely right. This is a big deal (all of these currency agreements). What could bring down our financial system (and with it our economic system), could be these currency agreements. I've always thought it would be the default on our national debt, but these agreements could easily be related to such an outcome.
And I agree with him that Saudi Arabia is the key player. If they start making agreements, we are toast. This is not so far-fetched. What if CHINA demands to deal in yuan? What then? Just a thought. And why won't India ask SA to accept Rupee's?
I find it interesting that the same day that silver bounced, India made this agreement with Iran to deal in Rupee's. Of course it is a coincidence. But it is also an omen. It's an omen that our financial system is falling apart.
This year is going to be very interesting. It sure feels like the dynamics of change are fairly intense. What did those Mayan's know, anyway?
http://www.goldsilverdata.com
"This year is going to be very interesting."
And as for US Naval power projection... Russia and India have been cranking the production lines of supersonic, radar-stealthy anti-ship missiles like Yakhont and Brahmos for years now. Stockpiles must be growing quite high. All attacks on carrier groups will be massed wave attacks. The carrier groups will absolutely cease to exist.
Next real shooting war, is when the world will discover that naval sea power is now an obsolete strategic concept. That will changes the global balance rather dramatically.
As for Israel+USA vs Iran, this will be the first time the playground bullies try taking on an opponent who ALSO has DU armaments. The USA military has never fought an opponent without that huge tactical advantage on their side. They probably *cannot* fight effectively without it. What do you think Iran does with all the depleted uranium left over from their entirely legal and legitimate nuclear power fuel refining? All this Zionist wailing about how "Iran nuclear weapons this or that" ... it's rubbish. Iran bought some ex-Soviet nukes back in the mid nineties, and *that* is why it hasn't been attacked by Israel so far.
What utterly freaks out the Zionist military planners, is that Iran will have DU firepower, and so armored attack will be suicide.
'Something' Felled An Abrams
Mystery Behind Aug. 28 Incident Puzzles Army OfficialsTank In Iraq - But What?
By John Roos
Army Times
11-2-3
Shortly before dawn on Aug. 28, an M1A1 Abrams tank on routine patrol in Baghdad "was hit by something" that crippled the 69-ton behemoth.
Army officials still are puzzling over what that "something" was.According to an unclassified Army report, the mystery projectile punched through the vehicle's skirt and drilled a pencil-sized hole through the hull. The hole was so small that "my little finger will not go into it," the reportís author noted.
The "something" continued into the crew compartment, where it passed through the gunner's seatback, grazed the kidney area of the gunner's flak jacket and finally came to rest after boring a hole 1-1/2 to 2 inches deep in the hull on the far side of the tank.
As it passed through the interior, it hit enough critical components to knock the tank out of action. That made the tank one of only two Abrams disabled by enemy fire during the Iraq war and one of only a handful of "mobility kills" since they first rumbled onto the scene 20 years ago. The other Abrams knocked out this year in Iraq was hit by an RPG-7, a rocket-propelled grenade.
http://www.rense.com/general44/what.htm
Naval power is still extremely important. However it is stupid to have carriers in the Persian Gulf, just dozens of miles from hostile coastlines on several sides. Masses of missiles can be launched from those shores, and the ships are like sitting ducks with no warning. The military leaders know this, so the carriers are likely only there to provoke an attack.
Carriers should be kept far out in open ocean. There they are protected by their own air cover.
No need for even a single carrier to attack Iran. The US has huge air bases all over the region. They can mass troops in Iraq, Afghanistan or Kuwait. Iran is totally surrounded.
Saudi is the key player...is the phrase that holds up the OIL/USD alliance; bedrock of PAx Americana construct. Three thousand Saudi princes and the US Oligarchs are joint and several on this deal. If this line drawn in the sands of Araby, during Operation Desert Storm, the common dipping of swords in the blood of renegade Iraki overlord, now comes assunder, under Chindia's burgeoning and defiant pressure, then yes; the Greenback will tremble.
But do those three thousand princes of tribal bent, want to sever their own commitment to US hegemony on oil and reserve currency? It could boomerang into Armageddon, spell a prolongation of convoluted Arab spring to very heart of Wahhabism. Dire consequences for princes of Islamic Harems, where women stay covered like silent walking tents. Game changer for all medieval lands of Allah o akbar. US Enterprise does carry the ultimate weapon for reprisal against its own surrogates. Like the Kings of Baghdad, Cairo, Tunis and Libya found out. Whose next on this mad rampage? Damascus or Tehran?
But Kismet commands all even those who don't want to fall into the abyssal depths of fiat default. If these SHeikhs who don't rattle and roll feel that the US ENterprise in now like Costa Concordia : on an unavoidable route to the scathing rocks of fiat Scylla, they might be tempted. As Charybdis's looming shadow, mad swirling whirlpool of market vortex, awaits US Enterprise's grinding momentum; to scuttle that gargantuan shuttle and thus bonfire the Everest of fiat. And that, ladies and gentlemen, is a rendez vous with destiny that only the Gods determine, as they laugh and laugh at man's incredible recurrent hubris. Thumbs up or thumbs down? You take your pick, as the sky resounds to the ominous ripple of Jovian ire.
Lol, awesome stuff; I feel like Shakespeare writing Julius Caesar. Hubris is a contagious disease and I'm not immune to it!
ha, ha, ha have to laff at my own stupidity dressed up in flowery words. Please suffer and laff with a duffer, on style not substance, which I stand by.
I agree, awesome stuff, excellent rant!! All it needs is Ivan Skavinsky Skavar lol.
and, here's the poem of bul bul and ivan !
//en.wikipedia.org/wiki/Abdul_Abulbul_Amir
Good stuff!