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Petrodollar Alert: Putin Prepares To Announce “Holy Grail” Gas Deal With China

March 21, 2014

This could be a major story and hugely negative for the US dollar. Check out the weekend show tomorrow where we chat with Marin about the energy situation in the EU with the developments in Crimea. While this is only hearsay at the moment if the Petrodollar is taken down things could start changing much more quickly than they are now.

Click here for the story.

Discussion
67 Comments

    VISA AND MASTER CARD……FREEZE CARDS at Sanctioned RUSSIAN BANKS………sinclairsite………

      CFS
      Mar 21, 2014 21:37 PM

      Jim wrote this, this morning:

      Yesterday, Thursday the 20th, the Obama Administration stepped up the sanctions
      against Russia over Crimea. The sanctions still focus on selected banks and targets
      in terms of people.

      This is a very dangerous “tit for tat” approach. An eye for an eye only ends up
      with a blind world.

      The dollar reacted because that market (dollar) knows Russia has a nuclear economic
      weapon it can let loose on the West. The US dollar depends on its universal use
      in settling energy contracts.

      This is known as the Petro Dollar and is the true dollar standard. When Nixon came
      off the gold standard for the dollar he adopted the energy standard for the dollar.
      Should Russia move away from utilization of the US dollar as the standard, the US
      dollar will crash into the .71 to .72 level on the USDX.

      Western Sanctions against Russia is a game of “Financial Chicken” that the US dollar
      cannot win.

      I disagree with how far the dollar will fall, see below.

    CFS
    Mar 21, 2014 21:40 PM

    Visa and other cards also stopped accepting transactions originating in parts of crimea and occupied Ukraine.

    Makes sense to me.

    Mar 21, 2014 21:41 PM

    Here’s a very fresh perspective on Obamacare and Fascism if you ever need a topic for the weekend show. Affects every single/divorced guy out there.
    http://youtu.be/LtR6cikAnwU

    Mar 21, 2014 21:47 PM

    Gazprom going east – it’s a no-brainer. Modern day warfare is fought over currencies, with missiles only called upon as a last resort. Putin absolutely loathes Obama and all things American, and to see the dollar crushed would be his crowning achievement..

      Mar 21, 2014 21:06 PM

      Got Gold…..the writing is so on the wall…it is not even funny!! Yeah, yeah and yeah all you want..but you are a complete moron is you dont have insurance..with all due respect to your particular intelligence level…:)

        Mar 21, 2014 21:37 PM

        not funny 🙁

      Mar 21, 2014 21:26 PM

      Why can’t Russia use their Rouble or gold for settllement for their natural resources.
      And why can’t China use their own currency Yuan to purchase crude oil?
      US says NO. Because then foreign countries will no longer need to hold Treasury’s
      for settlement.

    GH
    Mar 21, 2014 21:12 PM

    What would an intelligent US foreign policy look like?

    In my opinion, America would be using its dwindling strength to establish good relations with, and a balance of power between, major Eurasian powers. Long term, the goal should be co-equal status, not dominance much less hegemony. Instead, the US is trying to encircle its creditors with military installations, and creating enemies on all sides. When the inevitable fall comes, it will be much harder than needed and the large majority in the world will think ‘serves them right’.

    On the RUSH SHOW…Rush Linbaul ,,,said Russia looking to put bases in CUBA AND VENEZUELA……….

      CFS
      Mar 21, 2014 21:32 PM

      What do you mean “put”? They already docked one warship in Havana. Besides stationary ground-based missiles are obsolete.
      If the US can’t find MH370, what is their defense system really like?

    Putin estimated net worth……$100billion……….., I think he has a big ego, and a big pocketbook to match………..I think we are in for a long haul……..Dumbo better watch out…………..

    Mar 21, 2014 21:39 PM

    Bought more CEF.A today.
    -anyone doesn’t like it .. stuff it

    CFS
    Mar 21, 2014 21:41 PM

    Irwin, why CEF over, say, SPPP? Just interested.

    CFS
    Mar 21, 2014 21:59 PM

    Meanwhile you can no longer Tweet anonymously in Turkey.

    https://www.youtube.com/watch?feature=player_embedded&v=JF__8oF2s-Q

    CFS
    Mar 21, 2014 21:07 PM

    A technical look at the US dollar:
    http://www.superforcesignals.com/video/2014mar20usdollar/2014mar20usdollar.html
    321gold had cited this. so I bring it here, since there was not access on that site.

    Mar 21, 2014 21:09 PM

    A little off topic but interesting..Ron Paul questions the Fed and the Fed admits they have no gold….
    http://www.silverdoctors.com/the-federal-reserve-owns-gold-certificates-not-gold/#more-40317

      CFS
      Mar 21, 2014 21:21 PM

      This was from July 2013, so why is it being posted now?
      Gold is held by the Treasury at NY banks to influence the price of Gold. NY banks also used to hold gold in London banks for same purpose, but my guess is that London has run dry.

        Mar 21, 2014 21:42 PM

        Cfs….it was posted to help answer the question “does the fed have any gold”. That question is continually asked on this forum and this interview certainly addresses the question….

        CFS
        Mar 21, 2014 21:44 PM

        Notice Ron Paul’s reference to “Currency Stabilization Board” or words to that effect.
        There is at a minimum a $200Billion slush fund (probably over $1Trillion) under control of the treasury, off the books, unregulated by congress in the business of manipulating markets and NO ONE is discussing it.

      gator…….thanks for the post…………

      b
      Mar 21, 2014 21:01 PM

      Gator, I saw that, but I didn’t see a date.

    Mar 21, 2014 21:27 PM

    On top of all the other comments, how about these articles? What great foreign policy we have!

    U.S. Cancels Summit With Divided Group of Gulf Nations
    Obama Plans to Meet With Saudi King in Riyadh Next Week

    WASHINGTON—The White House canceled plans for a summit this month between President Barack Obama and Persian Gulf monarchs in Riyadh because of splits between Washington’s closest allies in the region, according to diplomats briefed on the decision.
    The strains that scuttled the meeting with leaders of the Gulf Cooperation Council countries—Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Oman, and Kuwait—underscored the mounting challenges Washington faces in trying to contain the Middle East’s spiraling political turmoil, these officials said.
    Mr. Obama is still scheduled to meet face-to-face with Saudi Arabia’s King Abdullah in Riyadh late next week at the end of a trip largely focused on Europe and the crisis in Ukraine.
    The U.S. has worked to unify the GCC on security and economic issues in recent years, in particular on strategies to end Syria’s civil war and to contain Iran’s nuclear program.
    But Saudi Arabia, the U.A.E. and Bahrain all withdrew their ambassadors from Qatar this month to protest the Arab country’s regional policies, notably its support for the Muslim Brotherhood, an Islamist organization active in Syria, Libya and Egypt.
    The U.S., under the recommendation of many of these countries, concluded that tensions were too high within the GCC to successfully stage the summit now, the officials said.
    “We enjoy strong relations with the Gulf countries, and we encourage them to resolve their differences as soon as possible, for the benefit of regional security and cohesion,” said National Security Council spokesperson Bernadette Meehan.
    The meeting with the Saudi king is aimed at soothing strained relations between Washington and Riyadh. The Sunni kingdom has been incensed by the U.S. administration’s secret talks with Shiite Iran, its chief regional rival, as well as Mr. Obama’s decision not to follow through on his August threat to use military force against Syrian President Bashar al-Assad, according to Arab officials.
    The U.S. has voiced concerns about the policies of Qatar and Kuwait in recent months. The Treasury Department has said in recent weeks that it has tracked large amounts of funding from charities and social-media sites based in these two Gulf countries to Sunni extremist groups fighting the Shiite-dominated government of Iraq and the regime in Syria, a staunch ally of Iran.
    This included financing for the Nusra Front, a Syrian rebel group linked to al Qaeda, according to U.S. officials. Qatar also hosts senior members of Hamas, a Palestinian militant group designated as a terrorist organization by the U.S. and European Union.
    “Qatar, a longtime U.S. ally, has for many years openly financed Hamas, a group that continues to undermine regional stability,” the U.S. Treasury Department’s top counterterrorism official, David Cohen, said in a speech this month. “Press reports indicate that the Qatari government is also supporting extremist groups operating in Syria. To say the least, this threatens to aggravate an already volatile situation.”
    Mr. Cohen charged that Kuwait “has become the epicenter of fundraising for terrorist groups in Syria.” He voiced alarm that a Kuwaiti leader the U.S. suspects has a history of supporting jihadist organizations, Nayef al-Ajmi, has recently been appointed to head the country’s justice ministry.
    Qatar and Kuwaiti officials have denied they support terrorist organizations.
    Kuwait’s ambassador to Washington, Salem Abdullah al-Jaber al-Sabah, said in an interview on Thursday his country’s legislature had passed a law in January that “provides the tools now to combat terrorism.”
    Qatari officials have stressed their cooperation with the U.S. on combating terrorism finance, but stressed that the Muslim Brotherhood is a legitimate social and political organization.
    “Qatar has chosen not to remain on the fringe of history, and decided to play a significant role in world affairs…[and] work to halt fierce conflicts and care for refugees,” Qatari Foreign Minister Khalid bin Mohammed al-Attiyah said in a speech in Paris this month.
    The U.S. has sold billions of dollars in weapons to GCC countries in recent years. The Pentagon maintains military bases in Qatar, the U.A.E., Bahrain and Kuwait, and runs training programs in Saudi Arabia.
    American investments, though, have coincided with widening splits between the GCC states. Qatar has been the main financial backer of the Muslim Brotherhood movement in the region, including the Egyptian government of Mohammed Morsi, which was overthrown in July. Saudi Arabia and the U.A.E. have, subsequently, spent billions of dollars to support Cairo’s new military-backed government.
    The GCC is also divided over the U.S. diplomatic outreach to Iran.
    Oman’s Sultan Qaboos bin Said al Said played a key mediating role between the U.S. and Iran over the nuclear issue, according to U.S. and Arab officials. But Saudi Arabia, the U.A.E. and Bahrain have all voiced concerns that Washington isn’t pushing Iran hard enough to scale back its nuclear capabilities.
    “The U.S. position in the Gulf is now very problematic,” said Emile El Hokayem, a regional expert at the International Institute for Security Studies. “How can it mediate between Qatar, where the U.S. has a military base, and the Saudis?”
    Write to Jay Solomon at jay.solomon@wsj.com

    March 21, 2014, 06:00 am
    Putin’s quiet Latin America play
    By Kristina Wong
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    Away from the conflict in Ukraine, Russian President Vladimir Putin is quietly seeking a foothold in Latin America, military officials warn.
    To the alarm of lawmakers and Pentagon officials, Putin has begun sending navy ships and long-range bombers to the region for the first time in years.
    Russia’s defense minister says the country is planning bases in Cuba, Venezuela, and Nicaragua, and just last week, Putin’s national security team met to discuss increasing military ties in the region.
    “They’re on the march,” Sen. Joe Donnelly (D-Ind.) said at a Senate hearing earlier this month. “They’re working the scenes where we can’t work. And they’re doing a pretty good job.”
    Gen. James Kelly, commander of U.S. Southern Command said there has been a “noticeable uptick in Russian power projection and security force personnel” in Latin America.
    “It has been over three decades since we last saw this type of high-profile Russian military presence,” Kelly said at the March 13 hearing.
    The U.S. military says it has been forced to cut back on its engagement with military and government officials in Latin America due to budget cuts. Kelly said the U.S. military had to cancel more than 200 effective engagement activities and multi-lateral exercises in Latin America last year.
    With the American presence waning, officials say rivals such as Russia, China and Iran are quickly filling the void.
    Iran has opened up 11 additional embassies and 33 cultural centers in Latin America while supporting the “operational presence” of militant group Lebanese Hezbollah in the region.
    “On the military side, I believe they’re establishing, if you will, lily pads for future use if they needed to use them,” Kelly said.
    China is making a play for Latin America a well, and is now the fastest growing investor in the region, according to experts. Although their activity is mostly economic, they are also increasing military activity through educational exchanges.
    The Chinese Navy conducted a goodwill visit in Brazil, Chile and Argentina last year and conducted its first-ever naval exercise with the Argentine Navy.
    Meanwhile, the U.S. had to cancel the deployment of its hospital ship USNS Comfort last year.
    “Our relationships, our leadership, and our influence in the Western Hemisphere are paying the price,” Kelly said.
    Some experts warn against being too alarmist, and say Russia, China and Iran do not have the ability or desire to project military power beyond their borders.
    Army War College adjunct professor Gabriel Marcella said Russia’s maneuvering is more about posturing than a real threat.
    “Latin America is seen as an opportunity to challenge the United States in terms of global presence,” he said. “They want to show the flag to assert their presence and say they need to be counted on the world stage.”
    Other experts said the encroachment of rivals has huge economic implications for the U.S., which has more trade partners in Latin America than in any other region in the world.
    “[Russia’s presence] serves to destabilize what has become a more stabilized, middle class continent with an increasing respect for the rule of law. … Any type of unsettling of that environment will scare off investors,” said Jason Marczak, deputy director at the Atlantic Council’s Adrienne Arsht Latin America Center.
    “Market economies and democracies are fundamental for trade, for jobs, and for stable investment environments,” he said.
    Marczak noted the instability in Venezuela, which is facing civil unrest from anti-government protestors.
    “In Venezuela, a lot of the money that’s been able to prop up President Chavez and now Maduro has been Chinese money,” Kelly said.
    So far, 31 protestors have been killed in clashes with government security forces.
    “I see a real degradation in what used to pass as Venezuelan democracy. There’s less and less of that now,” Kelly said.
    And while Chinese investment in Latin America could have positive aspects for the region, it could also make it more difficult for U.S. official to push labor and environmental safeguards that it argues are building blocks for democracy, Marczak said.
    Angel Rabasa, a senior political scientist at RAND, said cuts to the defense budget are going to accelerate a long trend of U.S. neglect and disengagement with Latin America.
    According to Sen. Tim Kaine (D-Va.), there are 10 countries in Latin America that currently have no U.S. ambassador because they either haven’t been nominated yet or confirmed, a sign that the region is seen as a low priority.
    “We will be losing the ability to influence developments in a region that is very important to us because of proximity,” Rabasa said.

    CFS
    Mar 21, 2014 21:30 PM

    The US has the worst screw-up President ever; except I think he actually is succeeding in his determination to destroy America.
    How could well-intentioned reasonable people elect a marxist Union rabble-rouser to be President? Not once, but twice?

      Mar 21, 2014 21:54 PM

      Because this country is not racist.
      That is why President Obama was elected twice.

        CFS
        Mar 21, 2014 21:13 PM

        Obama is half-white, half-black. I don’t see what electing an incompetent mulatto has to do with racism.

    CFS
    Mar 21, 2014 21:39 PM

    Korean gold exchange opens on Monday. First kilo bars just arrived.
    http://english.hani.co.kr/arti/english_edition/e_business/629279.html
    Hong Kong receiving up to 6 tons a day of gold.

    CFS
    Mar 21, 2014 21:45 PM

    France has very dangerous exposure to Russian debt, Italy also to some extent:
    http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/03-overflow/20140319_MAD4.png

    CFS
    Mar 21, 2014 21:21 PM

    You Guys SHOULD LISTEN to at least the first halfhour of Friday’s Glenn Beck radio program. PLEASE.
    http://www.glennbeck.com/podcast/

    Mar 21, 2014 21:26 PM

    More on the bankster suicides….plus some great GC rants…plus bitcoin…

    http://www.silverdoctors.com/gerald-celente-banker-suicides-the-prequel-to-global-collapse/

    CFS
    Mar 21, 2014 21:50 PM

    Sorry, about my post concerning the Glenn Beck show. I was listening live today and the podcast is not what I listened to…..My live show must have taken a different time period.
    It was a discussion about Putin’s action. I will find the section I listened to and report that tomorrow.

    CFS
    Mar 21, 2014 21:59 PM

    http://www.glennbeck.com/podcast/
    The important section is on 3/20/14 program starting about 7th vertical stripe in. Discussion is about Russia.
    Two books by defectors predicting current events.

    CFS
    Mar 21, 2014 21:32 PM

    And now the Gold inventory at the GLD:

    March 21.2014: tonnage 816.97 (an increase of 4.19 tonnes of gold/great news as China still brings in close to 6 tonnes of physical gold into Shanghai each day. The Bank of England must be worried!!)

    b
    Mar 21, 2014 21:51 PM

    Just plain doesn’t make sense to me why they would ship all gold to China, especially if they knew its “true” importance and value.
    Except, after the 2nd war the americans gave a.
    lot of gold to Europe, maybe they do the same thing now with China, or, they have more gold than anyone knows about

    No way they that stupid. Maybe all just positioning for a new financial system.

    Mar 22, 2014 22:46 AM

    Everything is meant to be as it is all going according to plan:
    http://www.birtherreport.com/2013/09/investigative-journalist-obama.html

    b
    Mar 22, 2014 22:21 AM

    guess it shows Obama is American anyway.

    Mar 22, 2014 22:22 PM

    The Cabal operates America for their Masters.
    Of course, this stretches way back to Prescott so America is well and truly toast.
    They will have no problems destroying whatever to meet their agenda.
    The world has had to suffer this consortium of psychopaths.
    Now,it is time to fold their economic ruin that is America and start anew.

    Mar 23, 2014 23:57 PM

    Amalgamation of the SS into CIA……