Category Archives: oil

How would a US/Israel vs Iran War play out?

The US is under tremendous Israeli pressure to attack and destroy Iran. It wants to start off by asphyxiating the country economically first but if that does not work, then attack it militarily, and the sooner the better.

Iran (or Persia) has been rather peaceful for at least two centuries until the present day. During the Second World War, Iran was neutral early on, but was invaded by the British and the Soviets. Britain took control of Iranian oil via the Anglo- Iranian Oil Company. Stalin, Roosevelt and Churchill agreed at the Tehran Conference of November 28-December 1,1943 to Iranian independence within its present boundaries. The Soviets then left but the British stayed. Dr. Mossadegh was elected president but in 1953 was overthrown by US/UK for nationalizing  Iranian oil. The Shah of the Pahlavi Dynasty was restored to power. The Shah was the most pro-American and pro-Israeli leader of the Middle East. He was the main US weapons buyer in the Middle East and a most devoted friend of Israel. He parked his extra cash from oil in US Treasuries in the amount of 150 billion dollars which the US Government froze/ confiscated after the Iranian Revolution of 1979 led by Imam Khomeini.

Khomeini withdrew recognition of the State of Israel. The result was the US then enticed Saddam Hussein to attack Iran in 1980. Iran fought Iraq to a draw despite isolation and Iraqi use of poison gas. The West did not condemn Saddam Hussein for using poison gas. Today, Iran is not isolated. It is surrounded by friendly countries: Turkey, Iraq, Pakistan, India, Russia. Also, China. It will be hard to isolate Iran. Sanctions will not work. Seems that war is inevitable but Iran will not attack anybody unless attacked.

As I tweeted several times earlier this year, Iran along with Turkey is one of the most geo-strategically important countries in the world. Major events of world history have played out here and will continue to play out in the future. The question is, will there be a war in the Middle East which may end life on Earth? Asphyxiation economics and a coup d’etat will be tried first.

Will the US attack Iran? This is the question of our time. The best solution would be peaceful resolution. The US has proclaimed Iran a terrorist state because of its support for the Palestinians, Hesballah, and Syria. But Iran is in Syria legally, while the US is there illegally. Amazing! Because of the Hesballah and Palestinian uprising, Israel is hemmed in. If war starts between the US and Iran, it will be due to provocation. It will be horrible. Both sides will suffer and sustain heavy casualties. The idea is to overthrow the Islamic Republic. But if that is not possible, then to destroy Iran to such an extent that it will never be a threat to Israel ever again. Then, Israel would be the supreme power in the Middle East with the freedom of action without any consequences. The destruction would be immense in the greater Middle East. Oil would not be available at any price. Without energy there is no modern economy or life. But Iran will not buckle. Confrontation between Russia and the US will be inevitable. Nuclear weapons would be used. Israel would use its nuclear arsenal; Iran would destroy Israel. A Third World War could be inevitable. All life on Earth would end. These will be the consequences of a US/Israeli attack on Iran. Embrace peace, not war!

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Very Short Observations IV

The knowledge is intentionally withheld that the EU nations use dollars, not euros, in trade among themselves, as well as with other nations. It is amazing and true. So, the dollar is not only the petro-dollar, but the official currency of international trade. The most important world trade is in oil, and until now, it has been traded in dollars. Most international debt is also denominated in dollars. The dollar is used as the chief instrument of enforcing sanctions against nations who do not follow US policy. The dollar is the Thunder Bolt of Zeus that I mentioned in my earlier posts from 2015-16.

But the exceptionality of this currency which makes the US the exceptional nation may be coming to an end. China will be trading oil in the yuan, convertible to gold. Oil nations will be able to sell their oil for the yuan on the Shanghai Exchange, avoiding dollars. The yuan will be freely exchangeable for gold. Many oil nations will flock to the “Petro-Yuan”. This new development is of great geo-economic significance. Venezuela, for instance, would be able to sell its heavy crude from Lake Maracaibo for yuan. How the US will react to this challenge remains to be revealed. Will the US react aggressively to China?

A commodity that is necessary for all life on Earth is water. Mother Nature provides us water free of charge. Fortunate are those nations or people who have an abundance of it. Those nations who feel they are powerful enough are willing to go to war to get it. The countries of the Mediterranean basin that have an abundance of water are the new republics of the former Yugoslavia. Other countries are Turkey, Lebanon, and possibly Syria because of the two rivers that flow through North East Syria from Turkey: the Euphrates and the Tigris, which touches Syria as it leaves Turkey and enters Iraq.

Countries that are water poor: Libya and Israel. Libya was intentionally destroyed in 2011, killing and sodomizing its leader, Gaddafi, in order to plunder its resources, especially its oil. Gaddafi wanted a gold dinar for all of Africa. Israel, a water-poor yet highly advanced country, whose water needs are increasing daily, needs a source of free water. Presently, Israel imports about 50% of its fresh water from Turkey. If a confrontation develops between Israel and Turkey, in the future, Turkey could shut off its water exports to Israel. De-salination is an inadequate substitute; it is also very expensive.

And so Lebanon beckons. To get the waters of Lebanon, war is inevitable. Hezbollah, whether one likes it or not, is the guardian of Lebanese independence vis a vis Israel, so war is inevitable. Israel experienced Hezbollah in 2006 war. Hezbollah is no joke.

Saudi Arabia is not a country in the normal sense of the word, because it is owned by 50,000 to 100,000 royals who take most of its oil wealth for their own personal use. But the Saudis are now in trouble. They’re losing their war in Yemen. Oil revenues are down. A confrontation with Iran looms in the distance. Internal dissension exists. The situation in the Saudi Arabia is precarious. They have pushed themselves into a Zugzwang situation. An alliance with Israel and the dismissal of the Lebanese prime minister are possibly related. The official dogma: Hezbollah and Iran have become mortal enemies of Israel and the Saudis. Big war is inevitable for water, oil, and hegemony of the Middle East and the world. The US and NATO will side with the Saudis and Israel, unconditionally; most of the rest of the world will side with the Palestinians, Hezbollah, and Iran. Will this war turn nuclear? Possibly!

The Ukraine cannot be ignored; it is on the verge of collapse. The Ukraine’s internal and external policies are totally absurd. For example, certain nationalists want to break diplomatic relations with Russia. Also, they are buying expensive  anthracite hard coal from the US rather than cheaper and better quality coal from Russia or Donbass for its power plants; Ukrainians will be freezing this winter! Also they are trying to mpose the Ukrainian language on minorities such as Hungarians and Russians. Kiev will gamble war in order to save itself; it will not work.

Contrary to Main Stream Media propaganda, the US economy is not doing well. Both, debt and stocks are precariously high. The EU not much better; just ask the Greeks.

Truly, a very precarious time; very unique in history!

Very Short Observations III

US decertification of the Iran nuclear deal is very unwise. It has given big momentum to two movements in the world: the dollarization of the world, and, ironically, the isolation of the US, (instead of Russia). In 2014, President Obama imposed sanctions on Russia because of the Ukraine and Crimea returning to Russia of its own volition, and made the claim that Russia  would face isolation; never happened.

The US imposed severe sanctions on Iran. The EU followed. But despite these sanctions, Iran grew stronger, and is the dominant regional power, along with Turkey. Iran with Hasbollah of Lebanon and Russia is enabling Assad of Syria to win. ISIS is being defeated in Iraq and Syria; Israel is in a panic. Israel insists something must be done about Iran; will the US be induced to attack Iran?

The Ukraine is on the verge of rebellion. Misha Shalikashvilli, ex-president of Georgia and ex-governor of Odessa, is leading the charge; things remain to be seen. Ukrainians in general want to be with Russia, as well Byela Rus, Kazakhstan, and other republics of the former USSR. It is only matter of time before the armed forces join the people in the streets of Kiev and overthrow Poroshenko.

In the Middle East, a huge alliance is forming: Turkey, Iran. Iraq, Hesbollah of Lebanon, Yemen. Pakistan is drifting towards the Alliance. The Pakistani contribution to the Alliance will be nuclear. China is a strong ally of Pakistan. Turkey is definitely drifting away from the US, as is Pakistan.

It is possible that the US will lose the Middle East; only Israel will remain. The US is moving into Africa, especially former French Africa. It is rich in minerals such as uranium, gold, iron, copper, etc.; it is also rich in hydrocarbons. Losing four military personnel in Niger is no accident. The reality is that the US is involved in all of Africa. The idea is to prevent Africa from falling under the influence of China, ” the One Belt, One Road” system.

China is introducing  the “Petro-Yuan System” in the oil trade. This could be a very severe blow to dollar domination. Venezuela, Iran, Russia, others will participate in Petro-Yuan System. De-dollarization is accelerating. Many a US politician has said:” We will protect our way of life whatever it takes.” In other words, de-dollarization will not be allowed to succeed. Good reason to have a war.

Large Middle East War is inevitable

There are different wars going on in the Middle East, all of them more or less going on at the same time. The purpose of the war in Syria is to partition it. The facade reason is that the “killer dictator” Assad must go. If Syria is partitioned into a Kurdish North East where the Euphrates flows, then water could be pumped to water-starved Israel by land and by sea. ISIS has been losing in Syria, although the final word has yet to be spoken. Whoever started ISIS is an enigma. Selling oil and financial transactions via SWIFT, (the Society for World-wide International Financial Transactions controlled by Federal Reserve Bank of New York), are not impeded by the US. Turkey is in Syria to prevent the creation of a Kurdish State, which would of course be a threat to its’ existence. Turkey initially supported ISIS because it felt it could occupy Syria’s Kurdish region but Erdogan switched after the coup d’état.

Turkey, despite being a NATO member, is being destabilized. South East Turkey, predominantly Kurdish, would be split to join the Kurdish areas of Syria, Iraq, and Iran into a greater Kurdistan which would then be friendly to Israel. Israel would then have an abundance of cheap water, oil, and gas. Turkey knows this. It is switching to Assad’s Syria, Iran, and Russia. A quiet alliance is forming between Turkey, Iran, and Pakistan. The “One Belt, One Road” policy of China will go through Pakistan, Iran, Turkey, via the Balkans into Europe. The US is also quietly organizing an Arab anti-Iran alliance that is friendly to Israel,  composed of the Gulf States and Saudi Arabia.

The partitioning of Iraq was in the cards of the West: the Sunni West around Ramadi, the Shia south from Baghdad to Basra, and the Kurdish north east around Kirkuk; possibly Mosul as well.

Lebanon would also be destroyed and Israel would get the water of the Litani River. So far, Israel has not been successful.

The Yemeni-Saudi war is not going too well. The Houthis are holding their own against the Saudis. It is quite likely that the Yemeni war will lead to a Saudi demise.

For all the problems in the Middle East, the US and Israel are blaming Iran as the major culprit. Because of Iranian missile testing, (which is not a violation of Nuclear Agreement that US has signed), the US and Israel are threatening Iran.

If the US and Israel attack Iran, Iran will respond by closing the Persian Gulf. the price of oil would go sky high. There would be a shortage of oil world wide. Iran would hit Israel with missiles. If Israel goes nuclear, Iran would try to destroy the Dimona nuclear reactor in the Negev desert. If Israel persisted with nuclear attack, Pakistan would lend Iran several nuclear bombs to hit Israel in return and a world wide chain reaction would follow resulting in a total collapse of many regions of the world.

Let us hope this does not happen. Only time will tell.

No te rindas, Venezuela

All of Latin America is in trouble but Venezuela stands out in a way that cannot be ignored. What happens in Venezuela will have a profound effect on the rest of Latin America and the world. The Bolivarian Revolution of Hugo Chavez is under vicious attacks by the domestic oligarchy and the oligarchs are willing to destroy the country in order to win; they also have the unconditional support of London and Wall Street bankers.

Venezuela is a beautiful country whose name means little Venice. It was named Venezuela by Amerigo Vespucci, an Italian explorer in the service of Spain. It is claimed that Amerigo saw houses on stilts on Lake Macaraibo as in Venice and thus came about the name. Others claim that it was named for an Indian tribe of similar name. Whichever story is true, Venezuela is a significant country of Latin America and the world. ( Incidentally, the “Americas” were named after Amerigo Vespucci in early 1500.)

Venezuela is a fairly large country with an area of over 900,000 square kilometers and a population of over 33 million people. It is very rich in natural resources, especially oil, minerals, and land with multiple bio-diversity. President Hugo Chavez changed the character of the country. His Bolivarian Revolution enacted programs that benefited the people. The oligarchy went berserk and attempted a coup d’état in 2002 that failed. He nationalized the Venezuelan oil company and returned gold from abroad. Unfortunately, he died in 2012. Nicholas Maduro, a former foreign minister, was elected president.

In 2014, the price of petroleum collapsed, hitting Venezuela very hard. The oligarchs, or the fifth column and their external supporters rejoiced. Shortages occurred of basic consumer goods such as toilet paper, the result of private corporations hoarding them. Revenues of the government collapsed because the price of oil had collapsed. Inflation ensued and shortages of goods worsened. The value of the Venezuelan currency, the Bolivar, collapsed. Opposition of the lower house of the Venezuelan Congress was won by the oligarchs. The oligarchs want privatization, austerity, and the impeachment of President Maduro. External forces are so happy and they are doing all they can to overthrow the Bolivarian Revolution of Hugo Chavez.

Will they succeed? It is difficult to say, because, since the Bolivarian Revolution, the Venezuelan people are politically awake. They will demand and protect their rights, so the Fifth Column must be careful, because a true revolution might arise that will sweep the oligarchs into the dustbin of history. The people know that the economic depression is due to the collapse of the price of oil which may have been engineered by the same forces who want to destroy Russia. Subsequent shortages of goods caused by private corporations in order to destroy the Bolivarian Revolution. The same process is going on in Brazil with the impeachment of President Dilma Rousseff. The real revolution might just be around the corner, not only in Venezuela, but in Brazil and the rest of Latin America and the Caribbean. Ne te rindas, Venezuela. Only time will tell.

 

 

The role of oil in geo-economics

The Indios of Latin America call petroleum [ the oil of rock], the blood of Mother Earth. Oil comes from the innards of the earth and fills numerous huge caverns as it seeps to surface. It is not dead trees and animals. The discovery of oil in Titusville, Pennsylvania in 1859 changed the world. The individuals and countries who controlled the petroleum resource had obtained such a power that is almost unimaginable.

Oil is not only fuel, but also building material. It is the raw material for pharmaceuticals, for cosmetics, for plastics of all kinds, for clothing of all kinds, and many other products. It is also the essence of US power. After the October War of 1973, which Israel was about to lose, a massive US military resupply intervention ordered by President Nixon saved the day. The US was able to convince OPEC to price oil in US dollars. Overnight, the Dollar was not only backed by the full faith and credit of the US Government, an empty promise, but also by the most  valuable commodity for the modern world, OIL. The dollar became the most powerful instrument of US Power and it no longer needed gold. President Nixon was a great President. His reward: Impeachment.

Entering the New Millenium, the World and the US have faced new economic problems. The economic meltdown of 2008 led to a so called “Recovery” from which the world has never recovered and the US economy is still ” recovering…”

The recovery is impossible, because by decreasing the price of oil intentionally to punish the Russians , the world’s liquidity started to decrease. There is a shortage of dollars. Value of the dollar went up. Debt burden of the Developing  World increased and is becoming unbearable. To service the debt, they had to sell their natural resources at any price. The price of the commodities has collapsed. The Third World countries, especially the oil producers have decreasing revenues to buy manufactured goods. Hence, China, South Korea, Japan, and Europe are slowing down, and that further puts pressure on the commodities, especially the Oil. Also the first world economies of Canada and Australia are in collapsing mode.

Ivy League economists are gloating that lower gasoline prices are positive for the economy, but they never ask why consumption of gasoline is decreasing in the US if there really is a recovery. It is not dropping because of electric cars or modern public transportation system, which does not even exist in the US. The consumption of gas is dropping because people have no money. The US has three economic classes: ownership class, 1%, doing exceptionally well; the overseer class,4%, doing well; and the Precariat Class, 95%, doing very poorly and not being able to afford gas.

The world may be entering a new and very severe economic winter or even a new economic ice age because of human evil, which is using oil as an instrument of economic war. Only time will tell.