War is coming.

[bman]

FT Alphaville » Blog Archive » Saudis drop WTI oil contract


Saudis drop WTI oil contract
Posted by Gwen Robinson on Oct 29 04:30.

Saudi Arabia on Wednesday decided to drop the widely used West Texas Intermediate oil contract as the benchmark for pricing its oil, dealing a serious blow to the New York Mercantile Exchange. The move by the world’s biggest oil exporter could encourage other producers to abandon the benchmark and threaten the dominance of the most heavily-traded oil futures contract. Riyadh’s decision follows the divergence of the WTI benchmark from the global oil market this year.

This entry was posted by Gwen Robinson on Thursday, October 29th, 2009 at 4:30 and is filed under Capital markets, Commodities. Tagged with nymex, oil, WTI.

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My take on this.

THE US dollar dominance is basically backed by OIL.


In 1971, the dollar was over-printed, even though it's supposedly was backed by gold.

US was technically bankrupt when foreign countries who own their currencies wanted to trade it back for gold, and the US has NONE, or not enough in their vault, due to corruption or siphoned away... That's why people keep saying Fort Knox has no more gold.


In order to prevent a global panic or market crash, the US strong armed and threatened the Saudis to sell their OIL only in US Dollars. So everyone followed suit, that was how the Dollar was saved and the USA continued to print paper money out of thin air and everyone in US was like, getting free money, free oil and they consume and consume and consume non-stop.


Then the game was up and foreign countries realise they've been had, and there's no way America can pay back it's debt. It has nothing to pay for all the consumption it has done.


Nobody wants to accept US dollars anymore for transactions, esp ones that is huge.

THe middle east had no choice but to do these action to remove the US Dollar from their stockpile and future trades.

They would kill 2 birds with one stone.

1. Remove their dependence on dollar and providing goods/oil for toilet paper.

2. Remove hegemony of western/Zionist power over oil producing countries.


Saddam Hussein did this in 2000, replacing the US with Euro if you wanna buy their oil.

Foreign Exchange: Saddam Turns His Back on Greenbacks - TIME

The US was royally pissed and they needed an excuse to invade Iraq.

What excuse did they come up with the following year?


No prizes for guessing.



Now, the US, would have to repeat that act again to save their dollars.


So, this WTI event could lead to chains of 'terror' attacks that would be blamed on the Arabs/middle east to justify an invasion so they can restore their dollar hegemony/dominance.


Be prepared as there WILL be FALSE FLAGS!


Aka government staged terror attacks that would be used to blame terrorists and justify invasion into another country.


The United States government might nuke some of it's own cities as 911 part 2 to justify war in the middle east.

[YourHumbleNarrator]

Considering how little people trust the government these days, false-flag operations would put them in a terrible position. Oh it really wouldn't surprise me, all told, but if the people in charge are that desperate they can't win.

It's over, they just don't know it yet.

[ar81]

War?
I do not think so.

Dollar has been overpriced for too long.
If you remember it's been so long since American economists complained about underpriced Yuan, which also means overpriced US dollar.

Printing bonds to fund war instead of recovery would make US to have a bigger supply of money, which would devaluate bonds and would push a hyperinflation, so US would be getting less buying power with every bond that is issued. Also, the risk of defeat means that your bond could worth nothing if US lose the war.

Raising taxes would be a more healthy way to fund war. It does not add inflationary pressure, so in the long run it is the best way to fund it. The only question is if US may want to do it. There is enough money supply for a hyperinflation.

Why would arabs withdraw? Because with an overpriced dollar, the last one to move to other currency will be the bigger loser. To maintain the bubble of overpriced dollar, central banks in other countries should be in need to buy dollars to preserve the bubble, which means that their reserves will drop suddenly when dollar collapses.

Gradual withdrawal would make the fall of the dollar to be smoother, and it would add inflationary pressure in US. Sudden fall would pop the bubble and cause a hyperinflation that would hurt US. War could only make things worse, and push hyperinflation.

In the 1980s, US war simulation expert James Dunningan warned in one of his books that war could make US to bankrupt as war had a detrimental effect on economy.

US can't afford war. The more war, the worst crisis will be. Wars paid by France ended up in economic crisis, hyperinflation and french revolution. Russia had the same problem right before the soviet revolution. History has plenty of examples of the effects of war. Will US be another one?

I would not fear a war. I might at most fear strong words. And if warmongers escalate positions of power and bring war, US allies will be the first to have their economies sunk, followed by US itself. It would be a nice way to suicide geopolitically, using its own economy.

Michael Moore denounced the influence of middle east in US, long ago. Nobody listened.

But I would not alarm myself.

The source of news that is posted does not look quite reliable. Having a blog anouncing that is like having a blog announcing an alien invasion.