Category Archives: “Petro-Yuan System”

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!

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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.