by Jim Willie, Goldseek:
The Petro-Dollar is dead. It had served so well for over 40 years in maintaining the USDollar as global currency reserve, while keeping tight the controls on geopolitical power. The link between crude oil and the USDollar has been broken, painfully evident since 2016 with a harsh price decline that cannot rise about the $50 level. It remains stuck below that level despite heavy collusion in a demonstration that OPEC is dead defunct also. A void has been created in the energy sector, a most important sector. Enter Russia & China to fill the void. Both the crude oil market and the natural gas market have new alliances which feature nations acting in a cooperative manner. The common element is Russia on the production side, complete with pipeline arrays. The common other element is China on the demand side with large customer needs and financial influence. This article describes the two emerging organizations, which the Jackass calls the Oil Consortium and the NatGas Cartel. It will serve the Eurasian Trade Zone. It will function outside the USD payment system. It is ripe for Gold payment structure in the near future. In no way do these qualify as coffin nails for the Petro-Dollar. The funeral for the corrupted abused hegemon USDollar might have taken place with the Trump charade in Saudi Arabia a month ago. The emerging energy organizations signal the new dawn after the funeral without eulogy.
GLOBAL DOMINANCE CAST ASIDE
The USDollar is integrally related to the global dominance that the United States has fostered for global benefit, then later distorted into a credit abuse dynamic but hardly for benefit, then finally abused beyond legitimate basis for global aggression and financial extortion. The dominance is unraveling within the Global Paradigm Shift. It is indeed late in the game for the shift, whereby no reversal to repair the USDollar is possible. The Eastern energy cartel has a firm foundation, leaving the West with no possible response. The consequences are vast, extending to the USMilitary. Its reliance upon free oil is ending. The over-stretched military presence will repeat the end of the road that the British Military faced several decades ago. Both the British and the Americans have lost their cherished global reserve currency, and along with it, lost power and prestige. In recent months, the US has proved it has very few friends even among its list of allies.
Jackass colleague Sky Crane made some astute comments on this theme. Exercpts are taken to capture the main points. “Removing the control the King Dollar has wielded over all matters economic was a primary focus of the new energy cartel strategy emerging from the East. The goal is both to regain control of fair trade and to wrest control of mankind’s destiny from the cabal's USD contraption and their globalist dystopian plans. The elaborate preparations toward this end are coming into view. The new cartel seems to be advancing without much real resistance except in the media because the USD is already defrocked, the Petro-Dollar dismantling has momentum, and everybody knows it but the US population. The cabal has had no responses to the mega energy solutions of the new Eastern cartel. Delivering more costly natural gas by boat is a good example of how the United States is clueless and out of the loop.
The new oil & gas cartel has the opportunity and must break definitively the grip and the hegemonic philosophy of those who still run the Petro-Dollar version. It must be rubbed out. These are the same cartel enemies who are stalling a larger shift to the new currency system within the RESET. The Western banker cabal is being evicted from the financial system, the tipping point seemingly reached. The critical turns pass often unnoticed, the fallout more clear, with many dynamics are changing every day, events moving fast. Humanity is at risk to react with easy manipulation in a Pavlovian fashion. This is the hardest part of the shift to eradicate, as it is supported in real time in the MSM media with indoctrination and deep programming. The best path currently is to take away the cabal’s free money and USD pass.”
The deed is done by the Eastern powers, their platforms having been built. Next their crucial energy alliances will take final form. Their supply lines will be fixed. Their pipelines will be constructed atop the already solid Russian network. The key is the absence of US control and absence of USDollar in trade payments. All US interference has been either sidestepped or overcome. The USGovt will soon be forced to react, not by war (failed course of action), but by methods to ensure survival of the USEconomy. At risk is its supply chain.Refer to the launch of the New Scheiss Dollar, since the producing nations, those pesky exporters to the United States, will not accept USTreasury Bills as payment. They are very actively disgorging their banking systems of USTreasury Bonds. The message has been clear. China will no longer tolerate the simultaneous usage of the USDollar for international purposes and for its role inside the United States. The abuse and distortions are no longer tolerable.
RUSSIA ON OIL CONSORTIUM
Russia is forming network of oil production by long-term contracts on volume purchases. The consortium will solve certain technical obstacles like grades. It is designed to oppose the Petro-Dollar system, and to fill the OPEC void. The key feature of the Russian Oil Consortium is non-USD sales and payments. It will thrive on the low oil price and cash flow pinch, as secondary producing nations seek aid with business investment and assured cash flow. Combine with the NatGas Cartel, also based in non-USD sales, to see the global trade system is quickly turning away from the USDollar standard. In key respects, the Petro-Dollar standard is fractured, broken, and dismantled. Implications are vast for geopolitical shift of power. It is truly dead defunct.
It is a brilliant strategy really. Russia stands as the world’s leading oil producer, yet the nation has made several key contracts to purchase oil from troubled nations. The most recent contracts are with Saudi Arabia, Iran, and Venezuela, using their Rosneft giant oil company. US neighbor Mexico is also considering to join the Russian consortium. The new wrinkle is the Mexican Govt has opened bidding on concessions to foreign companies, in the wake of an important large oil discovery. Expect Nigeria to join the consortium soon, maybe Angola also. With huge income stream, the Russians are in a position to be principal agents toward the construction of new production facilities, which are capital intensive. Rosneft and Gazprom are the primary players from the Russian Federation. The Russian oil consortium addresses the cash flow reductions that some nations are facing. Other nations will join them, since the oil price will continue to remain down. Irony is thick that the Russian oil pool will grow and expand into branches, as a result of the chronic low oil price, which is a manifestation of the dead Petro-Dollar. Their consortium feeds of the dead Petro-$ bones.
Russia strives to create an oil network, whereby grades are mixed, but more important, whereby indirectly a Russian oil consortium is created. Venezuela urgently needs to mix its heavy oil while the Saudis urgently need a cash flow guarantee. The oil consortium would be run by the Russian majors and not be priced in USDollars for sale. This is the primary motivation. There are also other significant motivations. Nations within the consortium could claim they work with the Russian network and are not part of payment decisions. Imagine the Kremlin designing by contracts a cartel with pooled oil resources to replace the vacant OPEC. The StPete oil price will become a more prevalent benchmark. In the last two years, it has been crystal clear that OPEC has no leader, no power, no unity, no honored internal pacts, operating with tremendous strains to individual members. OPEC has become meaningless gaggle. The Russian Oil Consortium is making a path toward replacing the vacant if not dead OPEC cartel. The King Dollar can no longer sit on a throne built of oil. The King Dollar is being deposed. The King Dollar is no longer from a palace respected.
NATURAL GAS CARTEL
The Natural Gas Cartel is forming, on the other side of the energy arena. The Petro-Dollar defacto standard is coming to an end, the low oil price a fatal blow. The entire Gulf Arab region is in turmoil, more evidence of the dead Petro-Dollar.The void has created an opportunity for a new energy cartel, the movement generated by the East. Entering the picture is the NatGas Cartel led by Russia, Iran, and Qatar, in a stage of current formation. The impasse in Syria, or better described as the defeat of the US Alliance with ISIS and Israel, has opened the door for the Eastern natural gas cartel. Iran has emerged, manifesting the Persian Empire reemergence. Iran will control staggering natgas output, plus its usual fare of sturdy crude oil output. Iran figures prominently into both the oil consortium and the natgas cartel. All USGovt efforts to block the Iranian entry will fail. Worse, all USGovt sanctions will backfire, leaving Washington more isolated. Their entry is offset by another’s removal. A spectacular failure in Saudi Arabia will contain many tarnished features. Witness their bankruptcy, their lust to steal Yemen energy deposits, their fraudulent ARAMCO stock offering, their association with terrorism, and their aggression within the Gulf region. The Saudi Arabian connection to the USGovt has been the basis of the Petro-Dollar for 42 years. The Gulf oil monarchies are fractured, many soon to perish. Even Qatar is well positioned with respect to Iran, Russia, and Europe.
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