HOW SAUDI CHINA RUSSIA PLAN USA ECONOMIC COLLAPSE
At the moment the House of Saud is in a شيت، إقتحام [shyt, ‘iqtham]. My Arabic is a bit rusty but loosely translated into English it means SHIT STORM! I have been in sandstorms that look like cyclones across the desert but this is different. Saudi has just launched Jets at Iran, accusing Iran of supplying rebels in Yemen with rockets. Last week a Rocket was taken down by Saudi over the capital city of Riyadh. Meanwhile, King Salman continues to tighten the reigns of power by arresting a raft of Princes and freezing their assets. King Salman has Alzheimer’s. That’s comforting. HOW SAUDI CHINA RUSSIA PLAN USA ECONOMIC COLLAPSE.
You could certainly question the wisdom of Trump for giving $350 Billion in weapons systems to a guy who’s brain is vanishing day by day. Of course, that may be a matter of quantitative debate as to who’s brain is vanishing faster.
You could also question JARAD KUSHNER, son-of-a-crook for working a deal to establish a PERMANENT US MILITARY BASE IN ISRAEL! Oy Vey! This has ALWAYS been opposed by every previous Administration in history as well as Israel. Something is afoot. This is insane. The US Military is now a Mercenary for hire.
Apparently, Trump thought this was a swell idea. Yahweh, please sent a meteor and drop this Eight Ball planet earth into the corner pocket! That was about as good an idea as Johnson sending troops to Vietnam and Nixon sending them into Cambodia! Where are we headed with this?
At present the USA has occupying armies in Japan, Germany left over from WWII. In toll, the USA has roughly 800 military bases in more than 70 countries. By contrast, the rest of the major nations of the Security Council of the UN have about 40 bases COMBINED!
You know what is going on in Saudi unless you live under a rock. It is a full-blown Stalin s Styled Purge.
The Drive-by media finds the salacious stories of Harvey Weinberg and Kevin Spacy much more titillating. We think the economic demise of the United States is a much more important story.
THE SECRET SAUDI TREASURY DEAL!
Back in the Nixon Recession of the early 1970’s, the Arabs embargoed oil and oil prices soared. There were long lines at gas stations and the US economy pitched into the sea. Gas in today’s dollars was $25 a gallon.
Being more clever than decent Nixon and then-Treasury Secretary and former Wall Street Bond Trader, William Simon decided the way out was to sell US Debt. But what do you sell it for and to whom? They decided to sell the idea to Saudi Arabia’s King Faisal. Simon convinced Faisal that US Treasuries were the safest place for Saudi to put its money. But that wasn’t going to work. Saudi could put their money in Swiss Francs. The USA promised Saudi military protection if they would buy US Debt. Ah, that was the charm.
This is the most stinking most immoral deal in the world. It converted the US Military, the all voluntary Nixon Military into a pay for hire mercenary army. How patriotic Mother and County’s Debt! This deal was kept top secret. King Faisal’s express terms were that no one should ever know that Saudi was buying US Debt. It was kept from Isreal as well. Americans didn’t know a thing about it. The arrangements were anonymous; the accounts were off ledger. Only in April of 2016 thanks to Bloomberg filing a Freedom of Information Act inquiry did this seedy filthy secret deal come to be known.
This is why MERICA went to WAR IN IRAQ
Saudi was not only holding the debt of the United States but of Britain. Saudi was afraid of Saddam Hussein. Bush I pushed back Saddam and Bush II preformed regime change on behalf of Saudi. The Weapons of Mass Destruction was the cover story. That story, by the way, was concocted by Tony Blair. Bush II merely sold it to the House and Senate. How patriotic. US and Britain out to save the world from another Tyrant! But that wasn’t the real reason for the war. I suggest you stop here and go back and link to the Bloomberg Article. Try to them comprehend that both political parties kept this secret from the Amerian People and Israel for over 40 years.
Look at the cost of this thing in terms of American Soldier lives! We come right on the heels of the Vietnam disaster and Nixon engineered this insane secret deal committing US TROOPs to the defense of Saudi Arabia!
Saudi holds roughly $750 BILLION dollars in US Treasuries. When they want something done they threaten to sell off US Debt!
Remember all the “Flag waving” and Merica fighting for freedom pitches from every soapbox?
It was always about money. Always about the debt. Americans were sold a bill of goods.
The Flag-draped coffins from Iraq and Afghanistan are all about the US DUTY to wage war on behalf of Saudi for money. The mercenary contract was kept secret from the Amerian People for 41 years.
We don’t know how much of 911 was tied into this. It is clear that in Saudi some family members including Bin Laden knew about the Nixon Treasury deal. The attack on the Twin Towers was to take down the Bond Market. That is where all the Bond Traders had offices. Bin Laden knew his target.
Then there were the secret Pages of the Saudi Investigation into 911. Once again Saudi threatened to sell the US Debt if the information was released.
911 was essentially a warning. Was Saudi behind it?
I will leave that to the conspiracy theorists, The deal with Saud was so filthy and incomprehensible that it defies reason. Nixon really was a scumbag and so was Bush I and Bush II. Bush I was the former head of the CIA so that connection is easy to make. The CIA always knew about the deal. I doubt Reagan or Clinton knew about it. Both Reagan and Clinton were regarded as outsiders and not imbued with the kind of treachery of the Bush Family. Democrats meanwhile blindly supported the war in Iraq. You have an entire government against the people.
Here is what is going on in Saudi at the moment
King Salman through his son the 32-year-old Crown Prince and head of the Military Mohammed Bin Salman are leading a Stalin styled PURGE against the Royal Cousins and consolidating power. We refer to it as a counter Coup d’état. It has resulted in princes unrelated to the direct line of Salman being arrested, killed and having their property and assets seized.
Saudi is well aware that the Bloomberg Report has many Americans other than the usual 80% of morons more worried about the sexual misconduct of Kermit the Frog’s recent rape allegation by Miss Piggy than anything important. A Constitution is unnecessary for most Americans. They gladly let the government run roughshod over them and even kill their teen sons on behalf of Saudi Arabia in Iraq, Afghanistan, Syria and now even AFRICA!
Saudi is now pursuing its own aggressive military actions on its own with its American supplied and trained armies.
The Trump $350 Billion weapons deal appears to be related to heightening Saudi aggression. After the Crime Families in America would say after a hit on some rival mob… “It’s not personal, it’s just business.”
The US with their combined British SAS thug interventions turned Libya and Syria, both petrol competitors, into oil-free zones immersed in civil war. That is one way to beat the competition, send in the war dogs and wipe them out. The US and British have so much debt, they have become Torpedoes, hired killers for the fabulous House of Saud.
Isn’t it interesting the Henry Kissinger, one of the architects of the Saudi US Mercenary Military for hire consulted with Trump over his Saudi $350 Billion weapons deal extravaganza? The story at home in the USA was Trump, Ivanka and Kushner son-of-a-crook sure know how to deliver the bacon. Trump was actually on his knees begging Saudi to not sell off their US DEBT!
Now that the big secret is out, Saudi has started looking to Russia and China for trade and weapon systems. They keep America on a short leash with their threat to sell $750 billion in US Debt.
Trump stupidly tried to publically entice Saudi to put their ARAMCO IPO on the New York Stock Exchange. Under the circumstances, Trump appears to be completely out of touch.
Saudi does not like the way IRAN’s assets were taken by the Obama Administration. While Iran is a Saudi enemy, the Saudi’s do not trust America or Trump in particular. The deep concern by Saudi at this point is getting out of US Treasuries and diversifying. It wasn’t long ago that Putin gave a speech to the world saying Russia’s biggest problem when they emerged as a democracy was “Trusting the United States.”
By now Trump must understand that things in his Administration are not going well. Then again he may be oblivious.
Saudi’s understand that in American politics that everything is a matter of whose hand is on the tiller. They may regard Trump as nothing more than a four-year wonder. They certainly want to get out of holding US Debt before a recession and before another Obama type is put into the Oval Office.
So what’s with Israel and Saudi?
Saudi wants Israel who is an enemy of Iran and Assad to act as a buffer. Thus you have the US once again pitching to both Israel and Saudi for a permanent military base in Israel. Who could have ever come up with a more insane plan? Thank Ivanka and Jared Son-of-a-crook Kushner.
Why is Saudi suddenly courting Russia and China while giving the US the Cold shoulder? Much has to do with the US imposing sanctions as a means to leverage other nations.
The Saudi Russian connection is brilliant. Saudi is aware that Russia defends Iran. But if Saudi and Russia can share economic relations, that actually reduces the risk from Iran. The basic message to Russia from Saudi is that we can help each other more than Iran helps you.
Saudi and non-OPEC Russia have agreed to reduce oil production. Americans, on the other hand, are producing as much shale oil as they can forcing oil to be traded in the spot markets. This keeps oil prices down below the cost of extraction. Understand the US Government subsidized US Oil production.
The Master Plan of Russia and China and Saudi to take down the US DOLLAR as the Reserve Currency!
We have talked at length about the seedy US Dollar Reserve scam that took place in association with the Anglo American Loan at the end of WWII. Briefly, in that deal, the British who were flat on their backs in the final year of WWII and had just installed a Socialist as Prime Minister needed money badly. They were essentially a bombed out ruin.
The United States would not give them the money as Maynard Keynes had hoped. Instead, the USA would only consider giving the British allies a loan with very hard terms. The loan was substantially less than the British had requested and interest was charged. But the real icing on the poison cake was the American demand that the British Sterling be traded on the open markets and that the US Dollar be installed as the global reserve currency.
In weeks the British Sterling collapsed. The US dollar became the global reserve currency.
Thus from that day forward, ALL commodities were traded in US Dollars across the globe. Over the years the US used this reserve system to export its inflation. Banks around the world had to hold dollars in reserve for trade. This was then subject to countless devaluations of the US dollar by Nixon which sent trade ripples across the globe.
With Obama pressing US Sanctions against Russia, Russia turned to China for direct sales of oil. The Yuan was used in the exchange.
Maynard Keynes died before seeing the total collapse of the Brtish Sterling. Keynes wanted a reserve currency that was a composite of several currencies. He called that synthetic currency the Bancor. But the USA rejected it and demanded that the US Dollar be the exclusive global reserve currency.
Over time the high debt-laden United States used currency manipulation to spread the misery through the global economy. When the USA caught an economic cold the rest of the world contracted pneumonia.
In 2014 with the rise of geopolitical strife, speculators started buying dollars. Huge sums of money were moving from China to the dollar. The same was happening in Europe. This caused the commodities to collapse. The price of oil dropped to $25 a barrel.
Saudi can’t make any money selling oil at a $25 loss. Saudi thought this was due to the US Shale Oil industry.Their response was to flood the global markets with cheap oil. They put themselves on the telemetry to go broke by 2018.
Saudi however miscalculated. Since the dollar reserve was used to trade the oil commodity and speculators had been buying dollars, there was no dollar liquidity in the market to finance the cheap oil. Small countries simply could not finance the cheap oil in dollars. It was the very thing that Maynard Keynes had warned about.
So who did Saudi turn to as they were going broke?
They turned to the Russians in order to get Russia to cut back production allowing prices rise. Saudi needs $50 a barrel oil to stay solvent. Russia was glad to cooperate. Remember that Obama imposed sanctions on Russia. That was the pivotal moment when the US Dollar reserve became a political weapon. That was precisely the moment that Russia and China the world’s largest trader decided they needed their own reserve currency.
It became painfully obvious that Obama knew absolutely nothing about how the dollar reserve currency operated. In 2015 China approached the IMF to see if they could position the Yuan as a reserve currency with the Dollar. The IMF agreed and the Yuan was approved as a reserve currency one year ago in October.
Since then China has commenced Iron ore trade with Australia using the Yuan and this has saved the Australian 13% on every dollar in trade over the US Dollar.
When the dollar reserve went to nosebleed levels in 2015 US exports shut down. The US economy started to yaw back into recession.
After Trump took office under the loud bombast of protectionism, it became obvious Trump didn’t know much about economics or trade either. This was confirmed to the absolute chagrin of the business world and the Warton School when Trump asked General Flynn at 3 AM which was better for the economy a high dollar or a low dollar Wharton must be so proud. Flynn had no idea.
Trump said he wanted the Fed to raise rates.
Once again Trump was clueless as to why apparently some adviser told him it would be good. The real reason was that the Federal Reserve after eight years of QE trying to prop up the Obama non-recovery, they had to rebalance their $4.5 Trillion portfolio. The Fed started raising rates and selling off treasuries. This caused the dollar to ease. This improved exports and caused commodity prices to rise. This also allowed improved Oil exports from the USA.
Saudis are now very nervous.
With the Fed rebalancing it massive $4.5 TRILLION BALANCE SHEET… and rising rates, Saudi knows that bonds will tumble. With 750 billion in US Bonds, Saudi has a lot to lose in a bond crash. The weapons deal was structured as a hedge against any losses. Yes, it is another stinky deal that smells like a bribe. Americas’ government on every level is a coercive snake pit.
Trump “didn’t like” Janet Yellen because she wasn’t very nice to him during the election process. In truth, she had the courage to essentially let Trump know she thought he was a loser. Truth hurts.
Trump was clueless as to who to put into the Fed to replace Yellen.
You can always tell when Trump struggles, he turns his candidate searches into a reality TV show, stalling for time until someone from Goldman comes to his rescue. Jerome Powell, an investment banker not an economist was chosen. That’s pretty dangerous. So it is likely the Fed will continue Yellen policies. The change is irrelevant. But the important thing is the FED rebalancing and the rising interest rates. Saudi needs to get out of the Bond Market before it collapses.
Trump’s insane spending is going to put more pressure on the Fed.
Somehow the Fed will have to auction off new Treasury noted at a higher interest rate. That means you have to sell more bonds to cover the carry costs which add to the deficit. It is a vicious cycle.
The Trump Budget adds nearly $1.5 Trillion to the debt and the Republican Tax Plan adds another $1.5 Trillion to the debt. To paraphrase Everet Dirkson… A Trillion here and a Trillion there and pretty soon you are talking about some real money.”
The US Government can never reverse this debt
The danger is not the debt but if there will be anyone out in the world that wants to buy the Bonds to finance this insanity. Understand that China is fully self-funded and Russia has no debt. The biggest debtor nations are The United States, Japan, the EU, and Britain.
Trump Tweeted that he approved of what Saudi was doing apparently the Stalin Seige is a good thing. Trump said he knew why and approve completely. [Oh please enlighten us Trump!]
I keep forgetting that Trump is “so smart” that he is always 25 moves past the visible spectrum of normal brain activity. Trump is proud of the fact that he has never read a single book cover to cover. But clearly, he already knows everything. This is not going to end well for the United States.
Why is the whole Saudi Mess the most Dangerous situation on earth?
This upheaval is moving with glacier speed. Salman’s Coup has turned Saudi upside down. Saudi is buzzing Iran in Jets. They have a blockage around Yemen and have cut off relations with Qatar. But his biggest plan of Saudi is to topple the Dollar Reserve Currency. With Saudi, Russia, and China they can do it.
So why should anyone be worried?
Our view is that the United States acting as a Mercenary Military on behalf of Saudi has fully violated the Constitutional idea that a Military is raised for the defense of the nation, not as contract killers for a Totalitarian Dictatorship.
Secondly, the world is now aghast at the aggressiveness of US Military conduct around the world especially the Middle East. Our leveraging the Dollar Reserve Currency to export inflation and buffer the US economy at the expense of other global nations has created a situation that is binding global economic and military interest against the United State.
It is inevitable that the Dollar will be toppled as the Reserve Currency.
China is already the largest exporter of goods and agricultural products throughout the world. It is also the largest global manufacturer.
The Dollar Reserve is at the point of no return. Imagine a world where all Saudi oil and Russian Oil are traded in Yuan and US Treasuries will no longer be a hedge against dollar fluctuations.