By Jim Willie CB: Syria
is about the last gasp for the Petro-Dollar, the emergence of energy
pipeline geopolitics, the rise of the NatGas Coop, the new dominance of
Russian Gazprom, the eclipse of OPEC, the fall of the house of Saud, and
a grand adjustment process in global commerce and banking. Refer to
trade settlement outside the USDollar and diversification away from
USTreasury Bond reserves management. It took some time to realize it,
but the Cyprus bank incident was a misdirected attack against Gazprom.
It failed. The entire Arab Spring movement, an ambitious disruptive
project waged with foolhardy ambitions, has turned on itself. Egypt
fell, its US puppet discharged. The entire North African region will be
in flames soon. The USGovt interfered with a grand industrialization
project for European industry, to be placed on North Africa intended to
take advantage of cheaper labor, available minerals, nearby resources,
and easy shipping. The resentment of Europe will show up in the future.
The Middle East and Persian Gulf region is shifting its salute to Russia
& China, as the noisy sectarian battles have been a common fixture
since long ago. Bahrain has erupted. Saudi is clamping down and
converting into an Islamic police state to create the Iran-Saudi
repressive bobsey twins. Chaos is the longstanding objective of the
USGovt in foreign policy infection, no change in decades.
Syria
is about a lot of things, most of which are volatile, many unsolvable.
To be sure, the naval port of Tartus is valuable for the Russian
Military, always eager to wrest a seaport. Like Lebanon, Syria is a
hotbed stronghold for HezBollah, never to be taken lightly. They are
mortal enemies to Israel, whose nations have exchanged covert violence
for years. Syria might have tight relations with the Shiites of Iran,
even some in Iraq. However,
Syria represents the crossroads of many important shifting geopolitical
roadways that pertain to the global financial structure and commercial
systems. Syria is the tipping point for a Grand Global Paradigm Shift. It
is the last stand for the Anglo Banker world. Syria will not go easily
into the Russian camp, into the Gazprom fold, into the European energy
market sphere. For if it does, the entire USDollar system of commerce
and the USTreasury Bond system of reserves management will fall by the
wayside and open a new era with Eastern dominance. But the Western
powers cannot stop it. Clouds of whatever type do not halt pipeline
flow, nor pipeline geopolitics.
WHAT SYRIA MEANS
Syria
stands at the door to the emergence of the Eastern Alliance, the new
dominant energy pipelines, a new payment system detached from the
USDollar and Anglo banks. Syria stands at the door which controls some
incremental European energy supply. Syria stands at the door to Gold
Trade Settlement, with a transition step that brings more importance to
commodity backed currencies and proper valid systems for trade. Syria
means the pipelines strangle the USDollar. Syria means the end of the US
system of IOU coupons that pollute the global banking system. Syria
means the status quo is coming to an abrupt end. Syria represents a
clash of East versus West, which has more commercial and bank
significance than anything reported by the lapdog press. Notice the
direct line from Iran through Iraq to Syria. The natgas of Iran reaches
the Mediterranean Sea through Syria.
RISE OF PIPELINE POLITICS
Syria
is the end port for what the Jackass calls the Shiite Gas Pipeline. It
begins in Iran and ends at the Mediterranean seaport in Syria. It was
designed to terminate at a Shiite friendly nation. Thus my informal
name. Ironically, Qatar is fighting against the Syrian Assad loyalists,
but the Qatari natural gas will be directed into the same pipeline. In
the last year, a giant Persian Gulf gas discovery was made in a joint
Iran-Qatar project. Syria is about the last gasp for the Petro-Dollar.
It represents a climax in Energy Pipeline Politics. Quietly for the last
15 to 20 years, Russia has been building crude oil pipelines and
natural gas pipelines from the Mother Russian lands to points in Europe
and China and the Former Soviet Republics. They have been constructing
modern LNG gas port facilities. They have been forging contracts to
supply energy to countless nations. The US-led plans have been more
interference than constructive. They have consistently attempted to
obstruct, rather than to build with some justification of common
benefit.
The
US news networks cannot tell why or how Syria is important relative to
the USDollar. Most Americans cannot define money, let alone conceive of a
Petro-Dollar defacto standard. They do not comprehend the global
banking system having practices as an extension of Saudi crude oil sales
in USDollars. They remember nothing of the Kissinger Arab Oil Surplus
Recycle Pact into USTreasury Bonds and US big bank stocks. The focus
should be on Pipelines and the closely related geopolitics. The focus
should be on the eclipse of OPEC. The focus should be on the loss of
Western Europe to the Russian fold, where natural gas supply will alter
decisions. Notice the UK Parliament did not offer military support for
the USGovt in Syria. They might have received a phone call from either
Putin at the Kremlin or the CEO of Gazprom. Coming to a world near you
is the NatGas Coop led by Gazprom. A regular feature in geopolitical decisions will be the integration of natgas supply to Europe and Great Britain.
ECLIPSE OF OPEC
Clearly
heading out is OPEC and its influence. The dirty secret for ten years
has been the depletion and decline in Saudi oil reserves. The water cut
has surpassed 80% on a regular basis at Saudi oilfields. It is the
percentage of water in produced "oil" wells. The interior pressures are
dissipated. The Saudis are suffering from lost oil surplus, rising
government debt, higher domestic energy costs, higher food costs,
internal strife, fascist islamic rule, rising political prisoner
population, and geriatrics at the throne. It sure would be good to know
how King Abdullah returned from a coma after a few months, where his
organs were declared defunct. Maybe like Saddam Hussein, he has some
handy doubles. The OPEC nations in the last several years have become a
loud disorganized gaggle of devious dealers who discount prices and lie
on output on a regular basis. The cartel has no unity anymore. Their
honorable Saudi core is disintegrating. The Saudi OPEC core is precisely
the foundation to the Petro-Dollar and the justification for global
banking systems being based in USTreasury Bonds. Coming online is the
NatGas Coop. Coming online is gold trade settlement. Coming online is
the BRICS Bank. Coming into prominent view is Gazprom, the leader of the
NatGas Coop. It has some powerful strange bedfellows who deal in one
currency, natural gas.
CYPRUS INDIRECT ATTACK
The
news networks told of Cyprus being the site of bank crisis, account
confiscations, the bail-in procedures creating a Western model, and
resolutions. It took a while to realize, but the Jackass back in the
March Hat Trick Letter noted the Gazprom angle and potential motive. The
Jackass mapped out a Prima Facie case for motive on the Cyprus bank
attack. It was a challenge to Gazprom and the Russian banking system,
more than a Bail-in Model. It was an attempt to cut off the Russian
encroachment into Europe with their Gazprom weapon, the most disruptive
economic weapon seen in decades.
Cyprus
used to serve as the primary window for the entire Russian banking
system, and the central bank too. All bank transactions from Russia went
through Cyprus. The conclusion could be that the Bail-in procedure is a
suicide pact for the West. It is a declaration that if accounting rules
are to be enforced, and capital requirements enforced, then the big
Western banks would slit their throats and force the vanish of private
bank accounts. Ditto if the legal prosecution of big bank were to begin
in earnest. They cannot pull that switch unless major banks are all dead
gone, from grotesque contagion. Since Lehman failed, all the big
Western banks are lashed together, much like sailors at sea on deck
during a nasty storm. If one goes, all go. The banker elite needed to
disguise their attack of Gazprom in Cyprus. They wanted to interrupt the
progress made by Russia in Pipeline Politics. The public bought the
false story, again, like they always do. They do not think beyond the
first visible layer.
FAILED USGOVT POLICY
The
USGovt lost on disruptions to Iran internet and undersea communication
lines between 2004 and 2007. To be sure, the planned Iranian island
center for trade processing never occurred, a success of sorts. The
USGovt lost on Iranian sanctions. The rise of Turkey, India, and Chinese
deals with unique payment systems have come to the table. Even the
Japanese and South Koreans refused to play along. The entire workaround
process served as a training ground for gold trade settlement. It will
have a certain blossom, with the full weight of the BRICS nations behind
the current initiatives. The US lost on Iran-Pakistan Pipeline, since
China stepped forward, guaranteed funding for its completion, and even
worked to extend the connected pipelines to the Western border of China
for supply. The USGovt lost with its puppet named Mohammed Morsi, who
was ousted in Egypt. The unspoken cause was food price inflation, not
political discord as reported by the US news network minions. The USGovt
won the Qaddafi's gold (144 tons) but with a grand backfire on the
Libyan Embassy controversy. The Pentagon does not appreciate the
sacrifice of Navy SEALS to deceit and hidden motives. The biggest
failure by the USGovt could be the monetary policy at work by the US
Federal Reserve. The QE bond purchase program has produced massive broad
price inflation globally, in addition to rising energy costs, rising
material costs, and rising related follow-on costs. It is difficult to
find any USGovt or USFed policy of value, other than to serve the bank
syndicate.
NATGAS COOP
The
key to the future is seen on the margin of new power. It is the Natural
Gas Coop. To date, it has no name. Curiously, its power might lie in
the fact that it has no name, no central nexus. It is a de-centralized
cooperative. But more accurately, it has a Russian core, a brain trust
at Gazprom. It has a certain Kremlin command center, since a newfound
strategic weapon. It is their greatest global weapon in decades. The
strange bedfellows consist of Russia (home HQ of Gazprom), Turkmenistan
(#2 natgas global producer), Iran (giant renegade producer), Qatar
(biggest LNG star), and Israel (from Tamar Platform). The presence of
Sunni Qatar from the Persian Gulf and US Fascist Ally Israel make for
the odd mix. In June, the Israel Govt signed a deal with Russian
Gazprom. It called for directing all surplus natgas output from Tamar to
the Gazprom pipeline system, and the European market. The Israeli
Economy will greatly benefit from the surplus revenue.
Game over for OPEC and a guaranteed demise of the Petro-Dollar. Simply
stated, Saudi Arabia is to OPEC, what Russia is to NatGas Coop. The
phase out of OPEC is in progress, without much recognition. The
emergence of the NatGas Coop is to be better understood in the near
future. A tremendously important shift is taking place in energy
geopolitics. The consequences will be rapid diversification out of
the USTreasury Bond, colossal Indirect Exchange in asset deals, and
broad abandonment (aka dumping). In the process, almost no buyers of
USGovt debt will be visible, and the USFed will be leaned upon more
fully for bond purchases. The Weimar machinery will strain to the limit.
The USGovt debt default will occur, as the event has become more
visible, a 2008 Hat Trick Letter forecast.
DEMISE OF PETRO-DOLLAR
Not
5% of Americans comprehend the defacto Petro-Dollar standard. They will
when the Saudis must step aside and permit OPEC to be eclipsed by the
NatGas Coop with its expansive global network of pipelines. The
great USDollar devaluation will occur when the Petro-Dollar falls by
the wayside. The result will be profound price inflation in the
USEconomy. The fall of the Saudi regime is guaranteed eventually,
and likely soon. The Saudis cannot play both sides (US & Russia)
successfully. They will fail with both partners. The NatGas Pipelines
are critical, as they wield enormous economic leverage and power.
Together, the NatGas Coop phases out OPEC and assures the end of the
USDollar as it is currently known and structured. Watch the Saudis soon
indicate that non-USDollar payments are accepted for crude oil sales,
like accepting GBPounds, Euros, Japanese Yen, even Swiss Francs. Watch
the Saudis closely for various signals of impending doom, death signals.
As energy sales move gradually, then rapidly, away from the USD
settlement, the world will go through a transformation. The banking
system will change in their foundations, one nation at a time, with
diversification away from USTBonds. It is Game Over!!
Syria
is the last line of defense for the USDollar and the exalted position
of OPEC. Syria is the potential recognized debut of the NatGas Coop in
significance. It
is all hidden, except to the Hat Trick Letter. In the new era emerging,
Gold will prevail as the Gold Trade Standard is put in place. It will
not be done with a stake in the ground from the banking system of the
FOREX currency trading arenas. Therefore it is so dangerous to the
status quo. My full expectation is that the USGovt will back off in
Syria. The retreat will not be seen as a magnanimous gesture, but rather
more like a bully backing down. Revelations will be very damaging on
chemical weapons and the roles played. Roots to Saddam Hussein will be
reviewed. Iran already has tens of thousands killed by chemical weapons
over 20 years ago in a war waged with Iraq, with a hand from the Bushes.
The United States leadership is in for some cold water in the face. The
United States is due for some extreme isolation. The NatGas Coop will
change the global map. It will open the door to the Eurasian Trade Zone
for commerce, and open the door to the Gold Trade Settlement for
finance. Some quantum leaps are in store and soon. Gold will emerge with
a new Gold Trade Standard, whose price will shock most observers. Think
multiples higher. Syria is a seminal event for gold.
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