Category Archives: Yemen

Short Observations II

The predominant idea or movement of the 21st Century has been the movement away from subservience to independence.

The power that is trying to arrest this flow is the US, the status quo power. Dialectics is the enemy of status quo. Dialectic change is a historical process, and is a  threat to US hegemonic position. The US is enlarging NATO, yet NATO is falling apart. Turkey, one of the most significant nations of NATO is moving away from it and the US after the unsuccessful putsch against Erdogan in 2016. Turkey is pursuing an independent policy in the Middle East, which are contrary to the interests of Israel and the US.

The EU is also moving away from unconditional subservience to the US to independence, as recent German elections have demonstrated. Actually, Germany is moving away from remaining an occupied state to being independent. The poor showing of the Christian Democratic Union Party of Angela Merkel and the Social Democratic Party of Martin Schultz is the proof. Alternativa fur Deutschland party scored big. They came from nowhere. They are the third largest party in Germany and they want change. Big change that is an anathema to US interests. Alternative for Germany wants to follow the Bismarck policy of friendship with Russia. Will the EU follow Germany?

Middle East great changes! Alliances are shifting and changing. Overall, huge Islamic alliance is forming in the Middle East and South Asia. Lebanon, Turkey, Syria, Iraq, Iran, Pakistan, possibly Bangla Desh, Malaysia, Indonesia. At the same time that this Alliance is forming, India is drifting West. The lynch pin of this alliance will be Iran and Turkey. Just look at the geographical position of Turkey and Iran. The Saudi King is visiting Moscow. Very interesting…

Israel is in panic mode. Assad is successfully fighting ISIS. Iran is a key player in this game. Iran has strong connections with Hesbollah of Lebanon, as well as Syria, Iraq, and Yemen. Turkey, Iran, Iraq, and Syria have determined that an independent Kurdistan will fail;  Israel wants Kurdistan to succeed. Israel is instructing the US to destroy Iran, thereby assuring Israeli domination of the Middle East, and the fresh water resources which Israel critically needs. Whether the US will oblige remains to be seen.

There is an economic factor involved here as well. The Fed is pushing stocks higher. Some are predicting the DOW at 40,000 within a decade or sooner. Others are predicting total collapse. Foreigners are pouring their money into the US stock market, thereby supporting the dollar and the bond market. The Fed must support the stock market at all costs. If it fails, all hell will break loose. All three will collapse: the dollar, the bond market, and the stock market, and there will be no more free lunch for the US.

The Ukrainian situation is ‘dormant’; a low intensity war. Kiev has no choice but to do that. It must be in the game even though it is losing. Ukraine is slowly dying. Population is decreasing. Wages are decreasing. People are very angry. What is keeping the Kiev afloat are Ukrainian remittances from Russia where over 4,000,000 Ukrainians work. Kiev is selling the Ukraine on the cheap to the West. It is only question of when, not if, the Ukrainians revolt.

Africa and Latin America are two continents where natural wealth is in relative abundance and people are waking up to protect it. Epiphany is rampant in Africa and Latin America. Western corporations are milking them as in colonial times. Globalism is just another name, more modern, for colonialism. Epiphany cannot be stopped. Venezuela will not buckle. In due time, more countries will join Venezuela. That is the flow of History.

North Korea is a thorn in US foreign policy in Asia. US interest is to maintain a Wall of Enmity extending from the Baltic, Poland, Ukraine, Turkey, Syria, Iraq, Persian Gulf, India, Straits of Malacca, Philippines, Japan, all the way to South Korea. The idea is to maintain this Wall of Enmity and push it to squeeze the hell out of China, Iran, and Russia.

China has said that if the US attacks North Korea it will automatically be on the North Korean side; a Korean War II would be inevitable and the potential catastrophe would be immense. North and South Korea would be destroyed. If China got involved, then Japan, China, and, possibly, the US would be severely damaged. A Korean crisis is, and will be, lots of thunder and very little, if any, rain.,

All scenarios discussed here could end up in a big war. In my opinion, the most likely scenario would be a US attack on Iran to make the Middle East safe for Israel. All kinds of excuses would be used to justify the attack. But wars never go according to plan. It seems that Iranian strategy is to receive and not give the first blow. After that, all hell would break loose. All of the Middle East, and possibly the world, would be in flames.

The only thing that will prevent wars that may occur anywhere is the collapse of the US stock market. Foreigners would pull their money out. At least, those who would be able. That would lead to the dollar and bond market collapsing. The US would have no choice but to turn inward. We will see.

 

 

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The British-American-Israeli Alliance

Five areas of serious confrontation are in progress in the Middle East: Syrian, Iraqi, Saudi-Yemeni, Israeli-Palestinian, and Israeli-Lebanese, and all five are interconnected. The key confrontation of the five is the Syrian conflict. A victory in Syria by either side will decide the fate of the Middle East and the world. There can be no compromise, hence there is a danger of wider conflict.

If the American side wins, Syria, Iraq, and Lebanon would be partitioned along ethnic and religious lines. The biggest winner would be Israel, and the biggest losers would be the Palestinians; they would probably be expelled from their homeland. Gas and oil pipelines would be built from Qatar and other Gulf States to Europe. Also, oil and gas from Syria, Iraq, Saudi Arabia, and Yemen would be shipped to Europe via the same pipelines to lessen the European dependence on Russian gas. The dollar would be the official currency of trade. Turkey would also be a winner, but its reward would be minimal. The biggest losers of all would be the Arabs of the Middle East, they would be totally emasculated; other big losers would include the Russians and the Iranians.

If, on the other hand, the Syrian government wins, Syria would become a very powerful state and a great rebuilding would take place. The Syrian people will have enough strength to rebuild their country. With a Syrian victory, ISIS in Iraq would have no chance. Iraq would also rise up and become a powerful state. The Saudi, the Jordanian, and Gulf regimes would collapse. The Palestinians might even achieve their independence from Israel. The big winners would also be the Iranians and the Russians. The Europeans would start drifting towards Russia, one country at a time. And the biggest loser would be the British-American-Israeli Alliance. President Assad would become the national Arab hero who stood up to the British-America-Israeli Alliance and  ISIS.

How the wind will blow and how history will flow remains a big question. Only time will tell.

Will the dollar be defended to the end?

In many  of my previous posts, I have stated that the US Economic System is based on three pillars of paper, and all three of these are based on debt. The three pillars of paper are the dollar, the bond market, and the stock market. Of the three, the dollar is the most important because it is the essence and instrument of US power. In the 1951 film version of Charles Dickens’ short story “A Christmas Carol”, there is a character, Mr. Jorkin, who says: “Control the cash box and you control the world”. The US has been controlling  the world since 1944, when the Bretton Woods Agreement was signed. The dollar became the reserve currency connected to gold at 35 dollars an ounce, and other convertible currencies were connected to the dollar. Nearly all trade and debt was denominated in dollars. Economically and financially speaking the world became dollar centric.

However, the dollar is still connected to gold, because the dollar without gold is like a fish without water. It cannot exist as the Reserve and Official currency of the world. It can only exist as the local currency in the US, because in the US, the dollar is the Legal Tender. The Petro Dollar depends on the whims of OPEC. It is not reliable. Gold, on the other hand, has the full backing of Mother Earth. Gold was created  when the Universe was created, and has the Energy of the Sun. Petroleum can be consumed, but gold cannot be consumed nor destroyed.

For the dollar to be convertible into gold, gold must be available in dollar terms at any price anywhere in the world. If that relationship ceases, the dollar can no longer be the reserve currency of the world. Powerful non Western countries are accumulating gold on the cheap, at around eleven hundred dollars an ounce. In one of my previous posts I stated that gold is leaving the West and going to the rest, especially to the East.

There is a “purpose” to this lunacy. By keeping the, dollar “artificially” strong, the US is destroying the countries of the world which are indebted in dollars. They are further pushed into economic slavery by the International Monetary Fund, {IMF}, and the World Bank. Both banks are agents of the US, despite international sounding names. Indebted nations are in severe depression. They are selling their natural resources for pennies on the dollar. They cannot buy any manufactured goods from China, South Korea, Japan, and Europe, so these regions are slowing down which further puts pressure on commodities. First world countries like Canada, Australia are entering severe recession, if not depression, while counties such as Brasil, Venezuela, Argentina, and others are entering depression. The currencies of these and other countries are collapsing. Russia and China are special targets. These two countries must be destroyed or neutralized for the US to have  total world domination. High Noon is fast approaching.

Russia is the “special” target. Russia has the capacity to be totally self-sufficient as it was during Second World War when it was the Soviet Union.  Germany in 1942 controlled all of  Russia just west of Leningrad, west of Stalingrad. The Soviet Union could not be defeated despite the fact that Germany controlled all of Europe. A similar situation exists today. For the US to control the world it must subjugate Russia. How to do that? Simple: economically. The first stage was to tear the Ukraine from Russia. So far it has not succeeded. The Ukraine is a political, economic, and moral mess. It is on the verge of collapse. When the Ukraine collapses, people will rise up, take over, and join Russia. Nuclear war against Russia is unthinkable for it would mean catastrophe for Humanity and all life on Earth, although the possibility of nuclear war is at its highest ever. The only alternative is economic strangulation.

To strangle Russia you simply have to tear it apart economically. Because of the Ukraine and Crimea, sanctions were imposed by the West and the countries closely associated with the West such as Japan. The Russian currency was attacked and devalued but not destroyed. The oil price was made to collapse  with the help of Saudi Arabia and Gulf Arab States. Military pressure was applied on the president of Syria. Propaganda against Putin was increased. Russia calmly responded; counter sanctions against the West. They are hurting badly. Devaluation of the Ruble is essentially positive, but the low oil price is not. Russia is the number one oil producer in the world and exports two thirds of its oil. There is a cushion of profitability. Russia suffers but will not buckle.

Russia is fighting back. It is avoiding the dollar like the plague. It is signing trade deals with other countries in their respective currencies. It is developing its own SWIFT,or Society for Worldwide International Financial Transfers. It is also developing worldwide tele-communication systems which exclude the West. With the help of Iran and Hesbollah it is successfully fighting ISIS in Syria. Yemeni Houthis have check mated the Saudis in Yemen. The oil price collapse which the Saudis helped to engineer is hurting them economically. Rebellion is brewing in the country. The Shia, in the Eastern Provinces where the oil is, are very restless. Foreign workers and native Sunnis are also very restless. In one of my previous posts I stated that Saudi Arabia will first implode then explode. This will be very negative for the dollar.

China is being courted to let the renminbi join the IMF currency system which would enable the dollar to continue to be reserve currency of the world. China will play the game even though it does not trust the game because it has no choice; it is trapped in the US financial  web. China is trying to extricate itself slowly from this trap. China is buying gold and selling US Treasuries. It is expanding non US trade and aid using the renminbi; the dollar is under attack.

But the US is fighting back. The TPP, Trans Pacific Partnership, was negotiated with some South East Asian and Latin American countries. Japan, Canada, Australia, New Zealand, and Mexico are included. The idea behind the agreement is to consolidate the use of the dollar in trade. A similar agreement is being negotiated with the European Union, the Trans Atlantic Trade and Investment Policy. Will the US succeed in keeping the dollar official currency of the world?Nobody knows.

If the dollar is dethroned, it will be catastrophic for the US. The US will lose the instrument of enslavement. It will no longer be able to exploit the rest of the world through usury. It will no longer be able to finance itself without inflation, followed by hyperinflation. It will no longer be able to maintain military bases in other countries and project its power. The US stock and bond markets may collapse, and the dollar may follow. The people who control America are strong believers in the saying: “It is our way or the highway”. “High Noon” is around the corner. If the US fails, it will become the third world country of North America. In many ways, it already is. Only time will tell.

 

 

 

 

 

Quo Vadis, 2016?

2016 may turn out to be a very significant year. Many thought that 2015 would be the year of the stock market crash, but this didn’t happen. Many more negatives than positives occurred in 2015 though. Stock indecis reached new highs in the first half of the year, and now at the end of the year are in correction mode. It is not likely that they will crash in the last few days of trading remaining, although they could, since nobody expects it.

On the world scene, the West and Turkey were exposed as chief supporters of ISIS, in addition to Saudi Arabia and the Gulf States. The Paris and San Bernardino tragedies should not have been a surprise. The Russian plane disaster in Egypt was a surprise but the Western press did not moan about it. The Beirut bombing by ISIS did not get much coverage. The Turkish destruction of a Russian bomber over Syria was not really condemned by the West. The hypocrisy of the West was in full bloom in the Ukraine, the Middle East, South East Asia and other places in the world.

Also in 2015, precious metals, oil, and other commodities collapsed. The dollar was strong and Third World economies were in a severe depression. Canada, Australia, and some European states were entering a depression, but Russia just got stronger. China was trying to stabilize its economy. The Yuan became an International Reserve Currency member, and even though only as a junior partner, this is just the beginning.

What will 2016 bring? It will be much more exciting than 2015. It could be the Year of Super Black Swans. The most important event that will most likely take place is the American presidential election in November. There is a lot of anger and discontent in this country that the mainstream media does not show but which will fully manifest itself this Election Year. There is only one candidate that stands out, and that is Donald Trump. He is politically “incorrect” and people love it. All other candidates, Republican and Democratic, are nothing more than cookie cutter “apparachicks”. Powerful people in the country want to resuscitate Senator Ted Cruz, but they will not succeed; Donald Trump, on the Republican side is unstoppable and Hillary Clinton will be the Democratic nominee.

The economy will play a key role in these elections. In an earlier post I stated that the present US economy is based on three pillars of paper: the dollar, the bond market, and the stock market, and all three are supported by debt. This situation cannot be sustained. The presidential election and the economy may turn out to be very ugly and a super bad Black Swan may manifest itself.

There is a war going on between Russia and the US, whether people realize this or not. The US wants to destroy Russia, leave it fragmented, and plundered. The war in the Ukraine may start any moment. The Kiev regime days are numbered. It will lash out and lose. History is on Novorossia’s side. When war starts, the Ukrainian Army will desert. Only Western mercenaries and jihadis will fight on the Kiev Junta side. The Ukrainian People will rebel and chase the Junta out of Kiev. A super Black Swan may develop in the Ukraine.

A super, super bad Black Swan may develop in the Middle East. It is sad that the West, Israel, and Turkey are supporting ISIS. There is a danger of an Israeli- Hesballah war. Hesballah is heavily engaged in operations against ISIS in Syria, so Israel may take the opportunity to attack Hesballah and get the waters of the Litani River. Israel desperately needs water. Hesballah may not be a pushover. Also, Palestanians will join in the fight against Israel. ISIS might lose the war in Iraq and Syria. Turkey has invaded Northern Iraq around Mosul. The Kurds in Turkey are rising up. Saudi Arabia is not doing well in Yemen. The US, Israel, Turkey, and Saudi Arabia may lose because they are on wrong side of History. Nuclear weapons  may be used. A super bad Black swan may develop.

The European Union is in deep crisis; it has no independent foreign policy  Economically, many of its’ countries are in a deep depression.The Baltic States, Poland, Romania, Bulgaria are in a depression. France, Italy, Greece, Spain, and Portugal are no better. Germany and Scandinavia are also suffering. The Russian sanctions have boomeranged. A super Black Swan here is not likely in 2016. A shifting of Europe from the North Atlantic to Russia is likely though, and migration will be a big problem.

Africa is waking up and wants to control its natural resources. It is shifting East. A super bad Black Swan here is not likely. Latin America is somewhat less stable. The governments of Venezuela, Brasil, and other Latin American republics will be under attack but will survive. The collapse of commodity prices and dollar debt will be a big problem for Africa and Latin America. The shift to the East will continue in this coming year.

The Indian Subcontinent will be fairly stable. The Taliban will gain strength and possibly gain power. The TAPI pipeline is being built from Turkmenistan, Afghanistan, and Pakistan to India. The Taliban will not oppose it. Iran is developing a very strong strategic partnership with Russia. This Iran-Russia partnership is one of the most natural partnerships to develop in the world. India is developing a strong relationship with Russia and Iran as well. This will continue in 2016. Putin  made a visit to Iran this year, and Prime Minister Modi of India visited Russia this week confirming the desire for this relationship.

China is developing a strong relationship with Russia. China and Russia realize they have to stick together or they will hang separately. South East Asia, despite the TPP, will move closer to China. It will develop Modus Vivendi with China. Its prosperity depends on close co-operation with China. China is the magnet that is pulling the world away from the US. A confrontation in the South China Sea is just one example. But the chances of a Black Swan in South East Asia is not very likely in 2016.

In Summary, 2016 will see increased confrontation between Russia and the US. The dollar will be under attack and gold will rise. Events occurring this year in the US will confirm that the US is in pre-revolutionary state. If powerful individuals try to eliminate Donald Trump, people will rebel. If one of the three paper pillars of the economy cracks, the whole system will collapse. The chances of nuclear war will increase. 2016 will be the beginning of the end of tall buildings, the most wasteful symbols of the system based on waste, arrogance, and greed. People will be returning to simpler things, a respect for natural things, like respect for Mother Earth. It is the only home we’ve got. Happy New Year!

 

Cui Bono?

The Russian plane tragedy which happened recently in Sinai, Egypt begs the question: who benefits? The Russian plane crash is a significant event in the Middle East and the world. It will polarize the world, and further divide the West from the Rest. Egypt definitely did not benefit. The plane crash could destroy the tourist industry of Egypt and worsen the already pretty bad economic condition of the country. The position of President El-Sisi could be on the line. Forces unfriendly to the President may organize a coup against him and destabilize the country. Cui Bono? Western strategic interests?

The Islamic State claims it bombed the plane. Quite likely. It boasts about having done it. This is to imply the great reach of the Islamic State. But who are its enablers? Saudi Arabia and Gulf States, but also the US, Britain, and Israel. The latter three are its’ real enablers. By using the Islamic State, the West wants to destroy Iraq, Syria, and Egypt, fragment them into smaller states which would then be subservient to Israel and the West. Created by the West, it is an instrument of power to destroy Egypt, Iraq, Syria, and more importantly, Iran. The Islamic State itself gains very little. It demonstrates to the world that it is very evil. This is a huge plus for President Assad, Russia, and its allies, Iran, Iraq, and Hesballah of Lebanon.

The irony of this all is that the biggest losers out of this will be these very enablers of ISIS. The refugee crises of the Greater Middle East and North Africa are destabilizing the European Union. The Kurdish Rebellion of Iraq and Syria is exciting the Kurds of Turkey, a NATO member and strong ally of Israel and the US. Turkey may end up in civil war. Israel is facing the third Palestinian Intifada, which is now in its early phase. Saudi Arabia and the Gulf States face disaster in Yemen. The Middle East war is enlarging and is connecting what is going on in Afghanistan, the Ukraine, North Africa, and the Middle East, This is one war with many fronts. It also has socio-economic components. The socio-economic conditions of the European Union are deteriorating from the Baltics to Portugal,  from Ireland and Britain to Greece. The German economy is standing on one leg, and Mutter, Angela Merkel, is on the way out. Contrary to official propaganda, the US and Canada are not doing well at all. No interest rise this year or 2016. Foreigners will determine the interest rates, the value of the dollar and gold. The boomerang of Russian sanctions are in play.

A big battle is brewing for the ISIS center of El-Raqqua. Syrian Forces are attacking the city. The US has inserted 50 or so Special Forces within the Kurds. If the Kurds take the stronghold, the US will have a chance. If Assad wins, ISIS and the US will have no chance. Only time will tell.

 

The Middle East is the Pivot of World History.

The Middle East is on the verge of great conflict.  The lines of conflict have been drawn up. The policy of the US since 1948 has been to secure the existence of Israel. This policy still exists today. The US is more involved in the Middle East than ever before. The policy of Israel and the US is to destroy or fragment any state that opposes the existence of Israel. Israel is a very powerful state, militarily and technologically. Some consider Israel the fourth most powerful state in the world, after the big three countries, China, Russia, and the US. The Achilles Heel of Israel is water. It has to import almost half of its water, mainly from Turkey,  a clearly pivotal state to the existence of Israel. The Armenian Genocide of 1916 in the Ottoman Empire caused  by the Turks is not recognized by Israel nor the US. It is understandable as to why.

Egypt and Jordan have been neutralized and diplomatic relations with Israel established. This relationship is precarious at best though. Libya and Iraq have been severely damaged but not yet destroyed.The last man standing has been Bashar al Assad of Syria. The US has decreed that Assad must go, but he is not going anywhere. A famous Prussian general, von Clausewitz, declared that war is a diplomacy by other means. Creation of the Islamic State by the West is diplomacy by other means. ISIS or the Islamic State has been declared by the US to be a terrorist state…but not really. The US bombs ISIS.. but not really. With all those shiny, new Toyota trucks and modern weapons ISIS is moving with the speed of light across Iraq and Syria. Volunteers are coming from all over the world. Volunteers are mainly Moslem Youth. One famous US senator was photographed with the Islamic State group. Even so, Iraq and Syria are still standing. Russia and Iran have stepped in. A sort of alliance has been formed, composed of Hasbullah  of Lebanon, Syria, Iraq, Iran, and Russia. The opposing forces are ISIS, the US, Israel, Saudi Arabia, and the Gulf States. The massive refugee problem which has been created by US policies in the Middle East is destabilizing Europe. The economy of Europe, already weak, is being weakened further by the onslaught of refugees from the Middle East, North Africa, and Afghanistan. The vaunted economy of Germany is standing on one leg only. German exports are collapsing. Sanctions are hurting Europe more than they are hurting Russia. If Syria and Iraq win against ISIS, there will be a geo-strategic shift in the Middle East. The Palestinians are sensing this. A massive Palestinian uprising is in the making. China is developing new Silk Roads to Europe and Africa avoiding sea lanes controlled by the US Navy. Latin America is moving closer to Afro-Eurasia. Highways and high speed rail roads will be criss-crossing Afro-Eurasia. The US and its closest allies will face isolation…

Europe must re-consider its position vis a vis Russia. The Wall of Enmity that the US is’ building between Russia and Europe is not going to succeed. It is just a matter of time before the  people of the Ukraine rise up against the Kiev Junta and take their country back (with Russia where it belongs). The future of Europe is with Afro-Eurasia and Latin America. If the Palestinian Intifada turns massive and Israel feels threatened, it may use the nuclear option. Saudi Arabia also cannot be ignored, it is one of the key players in the Middle East. The Saudis are involved in mortal combat in Yemen with the Houthis and are about to lose big. If the Saudi dynasty is overthrown in the not too distant future and replaced by an anti-western leadership, you can kiss the petro dollar good bye. The dollar and the US economy would collapse. The US would face a series of crises it has never yet faced in its entire history. The Israeli economy, which is dependent on the US, would most certainly collapse. Perhaps, instinctively, the Palestinians are sensing that. I repeat again, a massive Intifada is in the works. No question, the Middle East is the pivot of world history.

Saudi Arabia will implode, then explode

Saudi Arabia was founded in 1932, by Ibn Saud, who joined four regions of Arabia into one and proclaimed himself a king. The four regions are Hejal, Najd, Eastern Arabia, aka Al Ahsa, and Southern Arabia, aka Asir. Southern Arabia borders Yemen where civil war is going on. Saudis support ex-president Hadhi, who was overthrown by  the Huthis, the biggest ethnic group in Yemen. Eastern Arabia borders the Persian Gulf,and across the Gulf faces Iran. Eastern Arabia is rich in hydrocarbons, oil and gas. A large desert country, it has to import most of the food for its 30 million inhabitants, a quarter of them foreign workers. The workers are mainly from the Middle East and South Asia. All the important posts of the country are in the hands of the descendants of the founder of the Kingdom, Ibn Saud. The number of descendants is anywhere between six and ten thousand individuals. Women have few if any rights. The Wahabi form of Islam is the official religion. Saudi Arabia, in essence is owned by Royal family members. It is   like the Walton family who owns Walmart.

A special relationship had been established between Saudi Arabia and the US in 1943 during the Second World War when President Roosevelt was returning from the Yalta Conference. The Saudi King met President Roosevelt on an American warship in the Mediterranian Sea. This special relationship was sealed. Saudi Arabia would become the special servant of the US. In return, the US would provide protection.

The US defaulted on its gold obligation or politely stated, President Nixon took the dollar off of the gold standard in August of 1971. Up until then, the Central Banks of surplus dollar countries could exchange their dollar holdings for 35 dollars an ounce. The US was losing its’ gold. Over night the gold window was closed. President de Gaulle of France extracted as much gold from the US as he could in the 1960’s. He sent French warships to load up the gold that belonged to France and took it there. Other countries followed. Imagine how enamored US officials became of de Gaulle!  (Incidentally, de Gaulle was forced to resign in 1968. Massive demonstrations took place in Paris in May of that year. Could there be any connection to de Gaulle’s independent economic and foreign policy?)  De Gaulle told the Europeans not to accept Britain into the European Union. He warned that Britain would be the American “Trojan Horse”. Georges Pompidou, a banker, then became president of France. Britain then joins the Union. Any connection there????

The dollar started to drift, and inflation and gold were rising. President Nixon introduced price control, which was not too successful. The key country in saving the dollar was Saudi Arabia. How? Let me explain. The pre emptive war which Israel carried out against the Arabs was stunningly successful; the Arabs were devastated, they lost Gaza, the West Bank along with East Jerusalem, the Golan Heights of Syria, and the Sinai.  The Suez Canal was closed. Israel controlled the Sinai bank of the Suez Canal. Then, Nasser of Egypt died. The defeat was too much for him. Anwar Al Sadat, a general, took over. A deal had to be made. Sadat broke with the Soviet Union. Secretly, the Arabs were encouraged to win their lost territories back. The Yom Kippur War started in October of 1973. Israel was losing this war. Golda Meir, the prime minister pushed back by threatening to use the “Samson Option”: that is, using nuclear weapons to win the war. Nixon ordered a huge military supply to Israel. The front stabilized and negotiations began. The Arab World formed OPEC, the Organization of Petroleum Exporting Countries. Saudi Arabia, being the biggest producer and exporter, played a key role. The Petro Dollar was born. From henceforth, all oil and oil products would be traded in dollars. Every importing country had to have dollars to import oil. As for the US, all it had to do was to print paper dollars.  In 1975 Americans were allowed to buy  gold for the first time since 1935. The Shah of Iran also played a major role in the formation of OPEC. But then the Iranian Revolution came about in 1979 and the Shah was overthrown. The US lost control over Iran. Hundreds of billions of dollars of Iranian assets were frozen in the US. They are still frozen to this day. The Islamic Republic of Iran became the implacable enemy of Saudi Arabia…

Saudi Arabia is afraid of revolution a la Iran, or the possibility of a secular revolution, though this is less likely. The Saudi Royal family hates both Iran and Syria and they share a common goal with Israel:  Israel wants Syria and Iran destroyed, which would give Israel a free hand in the Middle East. (They would get the waters of Lebanon, especially the Litani River which flows in the  shape of a hockey stick through the Bekka Valley of Lebanon into the Mediterranean Sea.) Turkey would like parts of Syria bordering  on its south eastern area in order to control the Kurdish problem. Saudi Arabia faces the Houthi independence of Yemen. The war is not going well, at least presently. The Houthis will deliver a hanjar (Arabic word for a dagger) into the Royal Family of Saudi Arabia. Europe is looking at Russia and Syria in a different light because of the massive refugee problem. If the world economy collapses further, the price of oil may go down to twenty dollars. That would implode the Kingdom, which would be followed by an Iranian style revolution. Israel will face a massive Palestinian uprising. The tragedy of this world is that morally and ethically speaking, the US, Israel, and Saudi Arabia are on the wrong side of history. Only time will tell…