OPEC Chaos, World Oil Inflation Due To US Money Printing

OILNERGY: posted oil price (WTI)

This graph illustrates the deep trap the US has dug for itself as it imports and burns vast seas of oil from overseas.  Now, global warming is a worry for elites who are profiting from the relentless hike in oil prices ever since they killed the real estate golden goose.  Got to make a living!  And do note that the price of oil is very contingent on wars in oil producing OPEC nations.  The hike in 1980 was due to the Iran/Iraq war, after all.  And note the rise after the invasion of Iraq.  Increasing the pressure on Iran and attacking Libya has caused oil to shoot up in price and alongside it, the price of world food commodities shoot upwards, too.  This, in turn, is spawning revolutions including in OPEC nations.

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This week the desperate Saudi royals, the world’s fattest Thanksgiving turkeys for revolutionaries to dine on, are terrified at the forces that have been unleashed with the EU, Japan and US printing trillions of money rescues in their currencies and then throwing all of this into commodity markets.  Normally, this should make the Saudis happy, they are getting lots of money for oil.  But inflation is eating up social systems and much of the population in Saudi Arabia is on welfare and they import workers because these aliens won’t revolt or cause trouble.

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So prices are rising and so is tension.  And then there is the successful revolt in Yemen whereby the revolutionaries managed to nearly kill (burns over 40% of his body) the puppet ruler put in power by Saudi Arabia and the US.  Bahrain’s revolt was very bloodily suppressed by the Saudi and American forces.  The EU and US are verbally attacking Syria for killing demonstrators who are now in full revolt but was totally complicit with the mass murder of Yemeni and Bahrainian peaceful demonstrators.  Israel shot more Palestinians dead along the borders of the West Bank to no cries of fury from the EU and US, of course.  The old double standard continues.

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The King of Saudi Arabia, scared to death of his own restive people, promised to give them over $30 billion in oil profits.  But this is meaningless if it buys exactly the same amount of food and goods as before.  Inflation is rampant in more and more sectors as all of those trillions in EU/US/Japan money printing schemes flows inevitably into commodity markets.  So, OPEC fails to reach agreement on oil supply – Europe – Al Jazeera English

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The Organisation of Petroleum Exporting Countries has failed to reach a consensus over production levels, after Saudi Arabia pushed for an increase in supply at a meeting in Vienna, the Austrian capital.

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Saudi Arabian oil officials, backed by Kuwait and the United Arab Emirates (UAE), pressed other nations at the  meeting on Wednesday for an increase of up to 1.5m barrels a day and to cut prices down to $80 per barrel, in an attempt to calm market nerves.

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But Eduador, Venezuela, Iraq and Iran insisted on maintaining their output and to keep oil prices above $100 a barrel…Currently OPEC, which produces around 40 per cent of the world’s oil, caps production over 11 countries at 24.8m barrels a day.

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But production quotas are already being exceeded, up to 26.15m barrels a day, because of lost Libyan supplies.

 

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Many years ago, some advisors to King Faisal who was assassinated later, told him to reduce oil production to save the oil reserve for future generations.  He agreed this was a good idea and the first oil boycott hammered the US which hit the Hubbert Oil Peak back in the 1970’s.  So he was basically removed from the world stage and replaced with his much more compliant relative who was totally different from him.  King Faisal was thin, severe and careful (but not careful enough!) whereas the present rulers of Saudi Arabia are fat little bunnies.
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No one is scared of them.  Plenty of people hate them.  Revolutionaries hunger to eat them.  They will be eventually eaten because they are fat, lazy and supine.  They do not project power or menace.  They are scared, fat, helpless men who have to pretend to be tough but are literal push-overs.  One could easily imagine King Faisal riding a camel across the desert.  These rulers couldn’t ride an elephant across Times Square.  Naturally, the US considers these vicious people to be our dearest friends in the Middle East.
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But within OPEC, the Saudi royals are a running joke.  Many of the other OPEC member states have secret relations with that mega-nuclear/oil selling power, Russia.  The Saudi royals cling to the US and repudiated Russia long ago.  So I will note with no surprise, the Russian-friendly OPEC nations who also happen to be making big, big deals with China, sided against Saudi Arabia.  As they ought to!
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What benefits come to their own people if they cut oil prices, anyhow?  Nothing!  The Saudis have to keep the EU/US happy because they are fighting for Saudi power.  We are, as we are in Asia, the cat’s paw for rulers there who are trying to control Russia and China.  But cannot.  In the Middle East, controlling that relentless population explosion volcano of popular hatred is an increasing problem.
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Saudi Arabia’s use of the US backfires all the time.  The more they prop up the US and give us more military power and greenlights our invasions of Muslim oil pumping nations that Saudi Arabia hates means the people get more restive against the rulers who then have to use foreigners more and more and this is a vicious cycle doomed to end with the storming of the glittering, gold palaces of the elites in Saudi Arabia.
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Note that more oil is being pumped and doesn’t keep up with the devaluation of the dollar!  If the spigots were all open wide, all we get is more economic chaos as China, not the US, will suck up all the excess production!  The US will struggle to do this via printing more money and then handing it to the Chinese and OPEC nations.  But this forces prices up, not down.  Until everyone demands oil be bought with yuan, not dollars.  That is the inevitable end of this game.
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U.S. politicians who are broaching the idea of a U.S. debt default believe the White House can pull off such an event without plunging global markets into chaos.

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The same insane idiots who destroyed our economic state are now telling each other, we can default on one loan (our debts to China) and not default on our massive debts held by Europe, Japan and OPEC nations.  But…
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Oman, which pegs its currency to the U.S. dollar along with most Gulf Arab states, said on Wednesday a U.S. debt default would destabilize Gulf Arab reserves.

 

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This is not one warning shot but two.  The US claims the dollar and debts are ‘fluid’ so this means ‘safe’.  What an idiotic idea!  ‘Safe’ means it can’t change or move easily!  That is, ‘Solid as a rock’ or ‘Secure foundation’ not ‘runs like water,’ or ‘floods’ or ‘dry up’.  These terms describe both money and water.  Water MOVES.  And it can move very fast.  It can vaporize.  It can disappear totally and completely.  It is a powerful force that can grow or destroy but it is anything but stable.
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So, if we want more water, we create floods.  If we want it to move faster around the world via computers, it causes hyperinflation.  The Goddess of Inflation is Infinity.  She can fly faster than thought for she is pure numbers.  Once we make her totally liquid, she can filter into all systems, vanish from sight, overwhelm like a tsunami.  A dangerous, dangerous force.
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The US dollar is popular worldwide for one reason only: we allow infinite imports to flow back into the country and have zero restrictions on wealth flowing outwards and all of our major systems run in the red as I have illustrated repeatedly here.  They are all NEGATIVE.  World oil prices are all based on a US-centric NEGATIVE FLOW system that will suddenly slam into reverse the instant the US chooses to not honor debts to China.  And China will slam on some very vicious brakes on us and one of this is to disgorge a trillion+ FOREX dollars into world oil markets, driving prices to infinity.  Even if it buys China NOTHING, it will KILL the US which will be unable to buy oil for any dollars once a dollar is worth a millionth part of a penny.

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14 Comments

Filed under .money matters, Politics

14 responses to “OPEC Chaos, World Oil Inflation Due To US Money Printing

  1. melponeme_k

    I swear, this whole situation is like watching a freight train come right at you and not being able to move out of the way. Or being trapped in a burning building with no way out.

    Our elites are going to see this through to the end because greed has clouded their perceptions. We truly are the insane apes of the animal kingdom.

  2. Steve Murgaski

    Yeah, but might as well be philosophical about it. Our culture hasn’t really evolved much since the 1920’s. We got tons of new technological toys, but we think about them and play with them in about the same way we did a century ago. We’re frankly boring.

    Philosophically speaking it won’t be very tragic when we’re replaced with a new culture — though on the ground it might be ugly. But I’m looking forward to seeing what our species has in it. Western culture isn’t the alpha and the omega of humanity (it only thinks it is).

  3. OC

    Seems like Karl Denninger agrees – ‘The Implications of OPEC’s Failed Meeting’ @ http://market-ticker.org/

    Bad news never cease…are we getting the return of ‘Carter years’??

  4. payAttention

    FX, as you know, is a zero sum game. If Hu destroys the dollar, the purchasing power will go into the Euro or the Yen because they are convertible. Hu can make the Yuan convertible and try to force the purchasing power of his dollar holdings into the yuan, except that he will lose control of his own currency the minute that he makes it convertible. This is the preferred alternative, since China’s capital will be printed away in Washington. Both doors are internal political traps for Hu. His time passed two years ago. Since, he has been thoroughly outplayed.

  5. OC

    Why else does the Chinese is using their stockpile of US dollars to buy Euro bonds and Japanese bonds now?? At the same time Hu is lending all the lovely US$$$ to buy up all the commodities and companies in emerging countries…while wooing Germany and Japan to join the SCO????

    Once Hu have diverge majority of US Treasuries into Euro Bonds,Yen Bonds and commodities including gold and silver…and get all his customers to pay back in RMB…it’s showtime… (with Benny giving the rest of the world an extremely good reason to sign up for the Great SCO asap..what can go right for US??)

  6. Ali

    “If Hu destroys the dollar, the purchasing power will go into the Euro or the Yen because they are convertible”

    This is the exact kind of bollox people in the city talk. Lots of clever sounding words – No sense.

    “if Hu destroys the dollar” such a simple statement to make. Equate this with the end of the world you fool. “well if you do that then simple….. our friends the Japanese and the Europeans (who have been feeding off us for years and who now realise that they actually belong to Russia) will come and help us in some theoretical way that you mere mortals can’t understand but because I am clever I will say the word convertible and you being stupid will believe me”

    You obviously overlook the fact that if “purchasing power” goes to the yen – then Japan is destroyed. The Euro is already dead because the ECB is practically insolvent. Have you been reading the news??? PIIGS???

    This is the kind of stupid thinking that needs to persist for this to conclude nicely.

    pay attention!

  7. Ali

    Once the world ends it doesnt matter what happens after that.

    It doesnt matter if you can take a bishop or the queen or even the king AFTER check mate!!

  8. OC

    Ali,

    I am sure the British felt the same way too when they realize that they are losing their reserve currency status to those ‘bloody Colonials’ – no offense mate!

    We all know life got better for most of the world after that event .. especially for the US and the same will happen after the upcoming ‘event’. Life goes on…it’s not going to be the end of the world …sorry but Armageddon has just been postponed… u didn’t get the memo??

  9. Ali

    I meant destruction of $ = end of world (for U.S… and Israel …. and UK)

    Doesnt really matter what theyre planning to come back with because they are finished.

    I’m not crazy……I don’t really believe the world will ever end. I bet it just repeats over and over again. Thats more in keeping with the pain of reality.

  10. payAttention

    Ali, what is with the name calling?

  11. Joseppi

    Each day all of us spend many hours focused on monitoring the overwhelming evidence and details of the present international monetary system in it’s death spiral, despite the deception and fraud of the status quo to prolong it’s life.

    The most important activity that would benefit us, our family and friends, is that we make preparations for the inevitable currency crisis. Studying the details of the unfolding calamity is a form a procrastinating. May we spend an equal amount of time preparing. It’s advice I am personally trying to follow.

  12. Ali

    #
    payAttention
    June 9, 2011 at 3:41 pm

    Ali, what is with the name calling?
    Sorry, I didnt realise I had done that. Getting a bit carried away. It was meant generally not specifically to you.

    Apologies.

  13. payAttention

    Ali, thank you. I have gotten carried away many times here myself, although I hope I will not again.

  14. emsnews

    Peace and love, everyone.

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