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Old 09-18-2012, 07:47 AM   #1
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Doodoo Petrodollar and WWIII

Decent summary of how the petrodollar system is driving world events:
Quote :
...
The petrodollar paradigm is saving the dollar from crashing by accomplishing two things. First, it creates a mandatory international demand for the Federal Reserve paper, preventing dollar inflation from going into hyperinflation. Second, the oil profits from OPEC pay for a portion of our ever expanding national debt, helping perpetuate a giant Ponzi scheme in the U.S. treasury market. Those who control the United States understand that even if only a few countries begin to sell their oil in another currency it will set off a chain reaction and the dollar will collapse. They understand that there’s absolutely nothing else holding up the value of the dollar at this point, and so does the rest of the world.

But rather than accepting the fact that the dollar is nearing the end of its lifespan, the powers that be have made a calculated gambit. They have decided to use the brute force of the U.S. military to crush each and every resistant state in the Middle East and Africa.

That, in and of itself, would be bad enough. But what you need to understand is that this is not going to end with Iran. China and Russia have stated publicly and in no uncertain terms that they will not tolerate an attack on Iran or Syria. Iran is one of their key allies, one of the last in independent oil producers in the region. And they understand that if Iran falls, then they will have no way to escape the dollar without going to war. And yet, the United States is pushing forward despite the warnings.

What we’re witnessing here is a trajectory that leads straight to the unthinkable. It’s a trajectory that was mapped out years ago, in full awareness of the human consequences.
...
More: http://www.crisishq.com/why-prepare/...g-petrodollar/
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Old 09-18-2012, 05:27 PM   #2
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man, that video has gone viral. Got it thirty different ways in the last couple of days. (Good video, BTW).
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Old 09-19-2012, 06:02 AM   #3
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lol... I didn't even see/watch the video.
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Old 09-19-2012, 07:22 AM   #4
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Originally Posted by PMBug View Post:
Decent summary of how the petrodollar system is driving world events:

More: http://www.crisishq.com/why-prepare/...g-petrodollar/
I was actually discussing this with some Finance PHDs the other day. It is already a commonly held belief that the only viable way out of debt for the U.S. is inflation. On top of that, if the dollar stops being the global reserve currency it will have lower demand. Like any other commodity, if it has less demand it will lose value.
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Old 09-19-2012, 11:37 AM   #5
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...have they put some hard numbers behind how big that inflation would need to be, to cover the mountains of monopoly money created by financial industry?? That would be interesting to read. Considering that derivatives market is believed to be one to two orders of magnitude bigger than "physical" world economy, does it mean, that we need that level of inflation, to get to the point when every "empty" dollar could be covered with something tangible?

I agree, as for the principle, there is NO WAY, that politicians/central bankers would allow other solution than inflation, to deal with the current levels of debt. Question remains, will it be enough, and more importantly, can they print fast enough, to cover for all the shams going on in the financial industry? It is better to weather-proof people's roofs, instead of installing pumps in their houses, if you want to keep the rain water out, so to speak. Unless, you are pump manufacturer, of course
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Old 09-25-2012, 02:10 PM   #6
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Anonymous sources cited, so take with a grain of salt:
Quote :
Sources inside the Mexican government refuse to confirm that the Mexico government has been in secret negotiations with China over possible crude oil sales to China without using the US dollar.

China officials claim meetings held with the Mexican government and Petróleos Mexicanos (or Pemex) are for investment and economic growth inside Mexico. Crude oil purchases fall under this heading however officials on both sides in the past have stopped short of publicly discussing crude oil or any talks related to any special agreements relating to crude oil purchases.

Sources inside Mexico claim this week that China has in fact brokered a secret deal with Pemex to purchase crude oil using currency means other than the US Dollar. The details of this agreement are still unknown at this time but China is expected to make a public announcement within the next few days.
...
http://www.indymedia.co.uk/en/2012/09/500358.html
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Old 09-25-2012, 04:54 PM   #7
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What's funny is all the banks awhile back saying "no net exposure" on all those derivatives. If that were true, why not just look at one another and say "good-good?", and drop the entire mess. It's just paper.
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Old 10-10-2012, 09:20 AM   #8
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Old 10-10-2012, 09:45 AM   #9
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Originally Posted by DCFusor View Post:
What's funny is all the banks awhile back saying "no net exposure" on all those derivatives. If that were true, why not just look at one another and say "good-good?", and drop the entire mess. It's just paper.
First of all, if they are net-zero, why have them at all (I call BS on that), secondly even assuming it is net-zero, it still multiplies the risks, not reduces them - in the event, that starts unwinding some of them big time - there will be interconnected cascade of exposures, bankrupting different actors with different timing - all that stuff will not cancel each other simultaneously. Thus there will be chain of blow-outs, rather than single "cancel-all" event, IMHO
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Old 10-23-2012, 04:17 PM   #10
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In recent months there has been a lot of incorrect speculation that because Iran has been shut off from the petrodollar, SWIFT-mediated regime, its economy will implode as the country has no access to the all important greenback and can thus not conduct international trade - the driving factor behind the international sanctions that seek to topple the local government as Iran dies an economic death. And while there have been bouts of substantial inflation, which so far the local government appears to have managed to put a lid on by curbing gray market speculation, Iran continues to more or less operate on its merry ways with international trade most certainly taking place, especially with China, Russia and India as main trading partners. "How is this possible" those who support the Western-led embargo of all Iranian trade will ask? Simple - gold. Because while Iran may have no access to dollars, it has ample access to gold. This in itself is not new - we have reported in the past that Iran has imported substantial amounts of gold from Turkey, despite the Turkish government's stern denials. Today, courtesy of Reuters, we learn precisely what the 21st century equivalent of the Great Silk Road looks like, and just how effective Iran has been as a lab rat in escaping the great petrodollar experiment, from which conventional wisdom tells us there is no escape. Presenting: petrogold.
...
More: http://www.zerohedge.com/news/2012-1...ogold-triangle
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Old 10-23-2012, 05:28 PM   #11
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..me wonders - how much Iranian oil buys one OZ of gold? I would take a guess, that it will be much MORE oil, than if it would be paid in equivalent of petrodollars. Any thoughts? If I was Iran, and was shut off the main markets, and some nice Chinese, Indians or Russian people show up with crates of the yellow stuff, I'd be more than happy to pay them a handsome premium in oil, for their gold.

which, in turn,would only undermine petrodollar further - why, no doubt whomever buys the oil, would surely like to convert his plunging dollars into gold, pay for the oil in gold, and get more oil for the same money. I think it is quite possible scenario.
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Last edited by bushi; 10-23-2012 at 05:33 PM.
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Old 10-25-2012, 04:30 AM   #12
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Originally Posted by bushi View Post:
(...)If I was Iran, and was shut off the main markets, and some nice Chinese, Indians or Russian people show up with crates of the yellow stuff, I'd be more than happy to pay them a handsome premium in oil, for their gold.
...am I being clever, or something?

Why financial sanctions on Iran do not work:
Reuters: Turkish gold trade booms to Iran, via Dubai

Bad Iran, BAD!
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Old 12-05-2012, 09:42 AM   #13
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Washington and Ankara are on a collision course over Turkey's surging sales of gold to Iran, as the U.S. Congress and Treasury focus on cutting off a trade they believe is emerging as one of Tehran's primary conduits to export natural gas and evade Western sanctions.

The Senate on Friday approved a measure that would tighten sanctions against Iran, targeting suppliers of materials that could be used to build ships and taking further aim at the country's port and energy businesses. Among other provisions, the new legislation would ban the transfer of precious metals to Iran, including gold. The sanctions are expected to be approved by the House quickly.

The Senate's move comes after President Barack Obama quietly empowered the Treasury over the summer to sanction any foreign individual or firm that helps Tehran acquire U.S. dollars or precious metals, according to U.S. officials.

"At the end of July, the president issued an order that authorizes Treasury to impose sanctions on anyone who helps the government of Iran acquire U.S. dollars or precious metals, including gold," said John Sullivan, a Treasury spokesman. "We can't comment on any investigations that may be ongoing."
...
http://online.wsj.com/article/SB1000...540506358.html
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Old 12-05-2012, 10:00 AM   #14
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...does anyone notice, how "acquire U.S. dollars or precious metals" is suddenly being mentioned in one sentence? So, what is it, again, a "tradition", or maybe.... money?! Mr. Bernanke, care to elaborate more??
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Old 02-08-2013, 06:34 AM   #15
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Quote :
Turkey will not be swayed by U.S. sanctions pressure to halt gold exports to Iran but Tehran's demand for the metal may fall this year, Economy Minister Zafer Caglayan said today.

U.S. officials are concerned that Turkey's gold sales, which allow Iran to export natural gas, provides a financial lifeline to Tehran, which is largely frozen out of the global banking system by Western sanctions imposed over its nuclear programme.

Trade in Turkish gold bars to Iran via Dubai is drying up as banks and dealers increasingly refuse to buy the bullion to avoid sanctions risks associated with the trade.

Turkey has a six-month U.S. waiver exempting it from financial sanctions against Iran, which is due to expire in July.

"We will continue to make our gold exports this year to whoever seeks them. We have no restrictions and are not bound by restrictions imposed by others," the Turkish minister told reporters.

"There may be a decline in demand for gold exports. This is nothing to do with sanctions. We are not subject to these sanctions until July anyway, but there may be a decline in demand from Iran," he said.
...
More: http://www.reuters.com/article/2013/...0B776O20130207
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Old 05-16-2013, 10:58 AM   #16
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Looks like this issue may be heating up again soon:
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...
With Iran's currency already hit hard by European and Asian participation in the U.S.-led embargo of Iranian crude, Mr. Cohen asserted that his staff is broadening its efforts to include blocking the movement of pure gold into the Islamic republic.

"I can assure you that we are looking very, very carefully at any evidence that anyone outside Iran is selling gold to Iran," he said.

The remark came after Rep. Edward R. Royce, California Republican and the Foreign Affairs Committee's chairman, asked whether the administration was aware of recent reports indicating an uptick in the flow of gold into Iran.

"With its currency now in free fall, the Iranians desperately need gold," said Mr. Royce, who noted that a U.S. law authorizing the Obama administration to sanction anyone selling gold to citizens inside Iran does not take effect until July 1.
...
http://www.zerohedge.com/news/2013-0...ns-access-gold
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Old 05-16-2013, 06:36 PM   #17
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So, what if they stop the flow of gold to Iran, then what? Maybe the diamond trade will heat up as smuggling diamonds is a whole lot easier than smuggling gold, especially through metal detectors. And diamonds have a another advantage, higher concentration of value, meaning far fewer potential interceptions enroute for the same value.
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Old 05-17-2013, 02:56 AM   #18
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Originally Posted by mmerlinn View Post:
So, what if they stop the flow of gold to Iran, then what? Maybe the diamond trade will heat up as smuggling diamonds is a whole lot easier than smuggling gold, especially through metal detectors. And diamonds have a another advantage, higher concentration of value, meaning far fewer potential interceptions enroute for the same value.
Iran exports 1.5 million barrels per day. That's a lot of diamonds in your socks.
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Old 01-21-2016, 12:24 PM   #19
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China building infrastructure to support a petroyuan:

http://www.zerohedge.com/news/2016-0...uan-2-pictures
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Old 01-21-2016, 04:38 PM   #20
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I occasionally read Ben Fulfords stuff and while I do not take it seriously, I link his latest stuff because of the way he explains the observable facts regarding shipping and oil and Chinese banks not giving out US $ to anyone -


https://kauilapele.wordpress.com/201...ines-and-more/


Theres a lot more but heres a snip -

Quote :
....Perhaps the most dramatic, and under-reported, new aspect of this ongoing struggle has been the freeze on global shipping. To confirm reports on the internet of a shipping freeze, this writer called NYK lines, a major international shipping firm, and was told “we cannot speak for the whole world but, as far as our company is concerned, with current shipping prices we will lose money every time we send a ship so we have stopped.” Chinese government sources told this newsletter shipping companies are now demanding to be paid in Chinese yuan and not dollars and that is a major reason for the freeze in shipping worldwide. If this continues, it will lead to empty super-market shelves and social unrest, especially in the US. The announcement last week by Walmart that it is closing 269 stores is just the beginning.

Another major dimension to this hybrid war has been the attack on the oil cartel and control of the petro-dollar. It is this attack, and not oversupply, that is the real reason for oil prices plunging to the $20 per barrel level, and in the case of bitumen, the lowest grade Canadian oil, $8 a barrel level. What is happening is that China is insisting on paying with Yuan for its oil. Furthermore, now that sanctions against Iran have ended, Iran, which has some of the lowest production costs in the world, will be flooding the market with an extra million barrels of oil per day. China is helping both Iran and Russia deal with low oil prices by sending them Chinese goods at cheap prices in exchange for their oil. India is also avoiding the petrodollar when it buys Iranian and Russian oil .......
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