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Lies And Distractions Surrounding The Diminishing Petrodollar
There are a few important rules you have to follow if you want to join the consortium of mainstream economic con-men/analysts. Take special note if you plan on becoming one of these very “special” people:
1) Never discuss the reality that government fiscal statistics are not the true picture of the health of the economy. Just present the stats at face value to the public and quickly move on.
2) Almost always focus on false positives. Give the masses a delusional sense of recovery by pointing desperately at the few indicators that paint a rosier picture. Always mention a higher stock market as a symbol of an improving economy even though the stock market is irrelevant to the fundamentals of the economy. In fact, pretend the stock market is the ONLY thing that matters. Period.
3) Never talk about falling demand. Avoid mention of this at all costs. Instead, bring up “rising supply” and pretend as if demand is not a factor even worth considering.
4) Call any article that discusses the numerous and substantial negatives in the economy “doom porn.” Ask “where is the collapse?” a lot, when the collapse in fundamentals is right in front of your face.
5) Avoid debate on the health of the economy when you can, but if cornered, misrepresent the data whenever possible. Muddle the discussion with minutia and circular logic.
6) When a crash occurs, act like you had been the one warning about the danger all along. For good measure, make sure alternative economic analysts do not get credit for correct examinations of the fiscal system.
7) Argue that there was nothing special about their warnings and predictions and that “everyone else saw it coming too;” otherwise you might be out of a job.
Now, if you follow these rules most of the time, or religiously, then you have a good shot at becoming the next Paul Krugman or one of the many hucksters at Forbes, Bloomberg or Reuters. A cushy job and comfortable salary await you. Good luck and Godspeed!
However, say you are one of those weird people cursed with a conscience; becoming a vapid mouthpiece for the establishment may not sound very appealing. Or, maybe you just have OCD and you can’t stand the idea of “creative math” when it comes to economic data. Whatever the case may be, you want to outline the deeper facts of the economy because the economy is life — it is the structure which holds together our civilization, and if we lie about it in the short term, then we only set ourselves up for catastrophe in the long run. Welcome to another dimension. Welcome to the world of alternative economics.
Every aspect of the U.S. economy or the global economy can be presented two very different ways depending on whether you “interpret” the data to fit a preconceived conclusion, or simply relay it to the public as it really is.
Let’s use oil and the petrodollar as an example…
To illustrate the mainstream establishment reaction to legitimate economic concerns on oil, I highly suggest going back and reading an article by Foreign Policy, the official magazine of the Council On Foreign Relations, titled “Debunking The Dumping-The-Dollar Conspiracy,” published in 2009. The idiocy of this article was truly bewildering at the time it was released, but even more so now in retrospect.
First, it is important to note that Foreign Policy refused to even acknowledge the issue of the dollar losing petro-currency status until Robert Fisk of The Independent, someone closer to mainstream exposure, dared to broach the topic, warning that a trend was in play to dump the dollar as the petro-currency by 2018. The alternative economic community had been warning about the world moving away from U.S. oil dominance for some time beforehand.
Second, the CFR uses a typical circular fallacy when confronting the potential end of the dollar’s world reserve status; the fallacy that the dollar is the world reserve currency because “the U.S. is the preeminent world economic power.” Actually, the reverse is true — the U.S. is the world’s preeminent economic power only because the dollar has world reserve status. It was also once an industrial powerhouse after WWII, but this was ONLY because the U.S. was one of the few manufacturing hubs in the world that wasn’t demolished by years of kinetic destruction. When you are the only game in town, of course you reap huge economic benefits including massive international investment, but not forever.
Today, obviously, the U.S. is far surpassed by other nations in the area of manufacturing and production, and has also been surpassed as the largest global importer and exporter. The “preeminence” argument is unmitigated garbage.
Third, almost every danger Foreign Policy dismissed as “conspiracy” back in 2009 is now coming true. Just as Robert Fisk warned, and just as the alternative economic community warned long before him, numerous shifts in the world of oil as well as geopolitical relationships have created a spiraling nexus of anti-dollar sentiment. Is it possible that the dollar will lose petro-status by 2018? Absolutely, and here is why…
While the U.S. remains the world’s largest oil consumer according to the Energy Information Administration (EIA), American consumption of petroleum products has greatly diminished over the past few years; falling demand by increasingly destitute U.S. consumers has left oil producers searching for buyers elsewhere. The World Economic Forum noted in 2015 the drastic fall in U.S. demand since the 2008 debt crisis, but this admission went largely unnoticed in the mainstream media. Interestingly, while demand was crashing, the price per barrel continued to skyrocket because of the Federal Reserve’s inflationary QE policies. Almost immediately after the Fed began tapering QE, oil prices drastically declined in line with the lack of existing demand.
In 2017, the EIA claims there has been a rise in global demand since the second quarter. And has “projected” increasing demand including higher U.S. demand going into 2018, outpacing supply.
Yet, at the same time the EIA admits a frustrating stagnation in global oil demand, with the U.S. being the primary drag on consumption since 2010.
So, which trend are we supposed to believe? The one that is right in front of us, or the one that is optimistically projected? It is clear, even according to “official” statistics on crude oil imports, that the U.S. market began sinking in 2009 to levels not seen since the 1990’s and has not recovered since. Everyone knows that each new year is supposed to bring exponential demand, like clockwork. But this has not been the case at all in the U.S.
Meanwhile, China has recently surpassed the U.S. as the world’s largest oil importer, even though the EIA lists the U.S. as the world’s largest oil “consumer.”
The argument mainstream analysts would probably make here is that imports of oil are diminishing because U.S. shale oil is filling demand domestically. This argument overlooks the overall process of declining demand, though. The US is the largest consumer of oil NOW, but will that pace continue? According to the data, the answer is no. Americans are buying less petroleum products since the 2008 credit crisis, regardless of where they come from, and oil producers are seeking to diversify into other markets, and other currencies.
On top of that, even if it were true that imported oil is crumbling because US domestic oil is filling rising demand, this still begs the question – Why would oil producing nations stick with the dollar as the petrocurrency when the US has decided to take its ball and go home?
The US has now become a COMPETITOR in the oil market with shale, so why would OPEC nations and others also continue to give the US the enormous advantage of owning petrocurrency status?
In the meantime, the geopolitical situation grows more unstable. I believe the Iranian sanctions issue has gone ignored far too long, and this has direct repercussions on the dollar’s petro-status. How? Well, consider this — Europe continues its appetite for Iranian oil, with 40 percent of Iran’s oil exports going to the EU. With the very oddly timed U.S.-led effort by the Trump administration to renew sanctions, Europe has been caught in a catch-22; either defy sanctions and upset relations with the U.S. or lose a significant source of petroleum imports. For now it appears that the EU will support sanctions, but this time solidarity on the issue is nowhere near as strong as it was back in 2012.
With Iran as a major supplier for Europe as well as China, and overtaking Saudi Arabia as the top oil supplier for India, Trump’s latest call to put economic pressure on the nation may add more fuel to the accelerating rationale against the dollar as the primary trade mechanism for oil. The question becomes, who benefits from American influence in oil, and who suffers? The more countries that suffer because of a world reserve dollar, the more likely they will be to look for an alternative.
China has deepened ties to Russia for this exact reason. With Russia supplanting Saudi Arabia as China’s largest petroleum source, and bilateral trade between Russia and China cutting out the dollar as world reserve, this is just the beginning of the shift. In the past week it has been hinted that China will be shifting in the next two months into using its OWN currency, the Yuan, to price oil instead of using the dollar.
Saudi Arabia, America’s longtime partner in the oil dominance chain, is now moving away from the old relationship. Tensions between the Saudis and the U.S. State Department over the rather surreal Qatar embargo are just part of a series of divisions. With China’s influence in the region increasing, the mainstream has finally begun to acknowledge that Saudi Arabia may be “compelled” to trade oil in currencies other than the dollar.
Why is oil so important? Because energy, along with currency, is the key to understanding the state of the economy. When demand for energy goes stagnant, this usually means the economy is stagnant. When a nation has maintained a monopoly on global energy trade by coupling its currency to oil, an addiction can be formed and its financial structure becomes dependent in that addiction being continuously satiated.
Foreign Policy argued in 2009 that oil trade in dollars is “nothing more than a convention.” I would actually agree with that in part; it is indeed a convention that can change dramatically at any given moment. But, Foreign Policy asserts that there would be no consequences for the U.S. if and when the change takes place and the dollar loses petrostatus. This is absurd. Trillions in dollars are held overseas and the singular function of those dollars is to fulfill international trade based on the “convention” of the dollar’s world reserve status. What purpose do those dollar’s serve if world reserve status is abandoned? The answer is none.
All of those dollars would come flooding back into the U.S. through various channels. Market psychology would immediately trigger a massive loss in the dollar’s international value, not to mention incredible inflation would be spiking here at home. This process has already begun, and it is looking more and more like the next couple of years will bring a vast “reset” (as the IMF likes to call it) in the hegemony of certain currencies.
Some people believe this will be a wellspring, a change for the better. They think the death of the dollar will lead to “decentralization” of the global economy and a “multipolar world,” but the situation is far more complex than it seems. I will go into greater detail in my next article as to why the dollar and the U.S. economy in general has actually been slated for deliberate demolition and how this will likely come about.
As far as oil and petro-status are concerned, the mainstream media is perfectly willing to report on the developments I have mentioned here in a fleeting manner, but at the same time they are completely unwilling to account for the effects that will result or the deeper meaning behind these events. They will report on the smaller stories, but refuse to acknowledge the bigger story. It is quite a contradiction, but a contradiction with a purpose.
62 Comments on "Lies And Distractions Surrounding The Diminishing Petrodollar"
Davy on Fri, 27th Oct 2017 5:49 am
“What purpose do those dollar’s serve if world reserve status is abandoned? The answer is none.”
At the moment there is no alternative to the dollar for fulfilling international trade at the level it is now used. The dollar can shrink in use but only so much. It is not going to be abandoned without the whole global system collapsing. There is nothing on the drawing board at the moment to supplement the dollar. What China and Russia are doing at the moment is mostly talk and just bilateral trade around the edges. It is good efforts are being made to offer alternatives. Alternatives generally mean better resilience.
“All of those dollars would come flooding back into the U.S. through various channels. Market psychology would immediately trigger a massive loss in the dollar’s international value, not to mention incredible inflation would be spiking here at home.”
Same old song and dance of the anti-American anti-Dollar addicts. This is an unproven hypothesis. If this were to happen I can guarantee the rest of the world is not in a vacuum protected from this hurt. This will be because the rest of the world is collapsing.
Antius on Fri, 27th Oct 2017 7:41 am
The Chinese currency is weak and must remain so to prop up their bloated export economy. The Chinese government has put in place capital controls and Yuan buy back using dollar foreign exchange reserves that specifically prevent their currency from leaking across their borders, in a desperate attempt to prop it up.
None of these things make the Yuan a very likely to candidate to replace the dollar as reserve currency. If such a challenge were to occur, it is likely to come from the Euro, which is a much stronger currency. But pushing up the value of the Euro would put more pressure on southern EU economies, so is unlikely. Carrying the world’s reserve currency is a heavy burden.
makati1 on Fri, 27th Oct 2017 7:58 am
Antius, what don’t you understand about a GOLD backed currency? Do some research and come back with an educated rebuttal. The USD is worthless, backed by nothing but promises. Not even good toilet paper.
Jef on Fri, 27th Oct 2017 8:20 am
There is no such thing as the petrodollar, a currency backed by FFs. There is only the federal reserve bank notes backed by the largest military on earth and a people just crazy enough to use it.
There will never again be a currency “backed” by anything tangible.
For the US dollar to lose world reserve currency status our military and those people crazy enough to use it would have to relinquish it which is a scenario that will never happen…at least not in any way that bodes well for humanity.
Sissyfuss on Fri, 27th Oct 2017 9:15 am
We are in a time of great flux underpinned by overshoot and resource depletion. The economic machinations being bandied about are in reaction to the accelerating transformations we are experiencing in technology, communications, and lifestyles. It is difficult to analyze said transformations while they passing from incipient to mature stage. In 10 years it will be much clearer where this is all leading us although the destination may be too horrific to accept.
joe on Fri, 27th Oct 2017 9:21 am
Let’s not forget, its all toilet paper. Fiat currency is the invention of accounting fraud, then enforced as the only legal means of exchange of value. When people talk about the dollar, they really mean all of North America. Because of NAFTA. So the idea that Russia on its own or China on its own can overnight take over from the dollar is a little silly. However, things are not as they once were. America tends to view itself mainly as a freedom loving world power (whatever that means), the rest of the major world nations see themselves as distinct cultures and America somthing seperate from them. Lets be honest, the reality is that military might lost its meaning in 1949 when Russia exploded its own nuclear bomb, the rest as they say is politics.
The strong dollar is not a good thing for American workers, and with a.i. likely to at least make 99% of admin and service sector jobs redundant in the next 20-30 years then demand patterns have to change and oil might not be as important in the future. What’s really going to matter is how we deal with a rapidly aging society in the west where more than half of the people in the society will not be working in jobs as we understand that concept now. How we afford to eat, house, wash and heat ourselves will change radically outside current concepts. We may not be able to heat our homes, we instead be bound in layers clothing as our ancestors were, we may have limited eating options, we almost certainly will travel less. With antibiotic resistance rising due to overuse and lack of r+d investment we face a sicker future, one which will almost certainly kill off the oldest, youngest, and weakest of us. That is only the begining of the social engineering currently underway. The dollar is just cog in a machine, one which helps goods flow from China any other poor economy into the rich. That system would have to be reversed if the yuan was to somehow supplant the dollar, and that of course would make US workers very happy as China would want to buy cheap US coal, cheap US oil and cheap US cars, and China would have to invest in r+d so its nerds could work in Chinese ebays Alphabets and Apples (not gonna happen). Chinas ambitions far exceed its abilities to deliver, they also unlike America have only 2 foreign military bases, Russia only a handful, the US has hundreds. Finally as much as Russia and China help each other, its only out of necessity rather than mutual respect or friendship. Those in America who love the strong dollar must be working on wall St, cause any normal young person looking for a job and can’t find one (retail and flipping burgers doesn’t count) will tell you that the days when America used to make thing are dead cause if you really want to make America great again you need the world to be able to afford your products.
Antius on Fri, 27th Oct 2017 9:26 am
There are pro’s and con’s to a gold backed currency. Mostly cons for China. It essentially means that the government would lose control over exchange rates. The ability to manipulate the Yuan artificially low against the dollar is a large part of the reason behind Chinese double digit growth rates since 2000. There is danger of deflationary pressures unless gold supply can expand as rapidly as the economy – which would be a disaster for China, as debt is 300% of GDP and climbing and it’s economy is dominated by exports, which would suffer with a deflationary currency.
I suspect the situation would be even worse for Russia, whose economy is dominated by commodity exports.
On the plus side, for a country whose domestic fossil fuel production is about to tank, a strong currency backed by gold will make importing commodities more affordable. But it won’t help is exports – 70% of Chinese GDP – tank as a result. Unlike Germany, China doesn’t have a lot of high techie industries that cannot be supplanted by someone else.
Davy on Fri, 27th Oct 2017 9:50 am
“Antius, what don’t you understand about a GOLD backed currency?”
Mad kat, the Yuan is not gold back and likely will not be as long as the Chinese micro manage their currency. If they would choose to back it with gold they would lose a significant amount of their control over the currency. No modern nation manipulates their currency more than the Chinese. Your idea of a gold back currency shows how little you really know about fiat currencies and gold in the modern global economy.
Antius on Fri, 27th Oct 2017 9:52 am
Joe has put it far more eloquently than I ever could.
I think the ageing population issue will effect China as well as the West and it worsens the risk of a deflationary collapse for commodity producers and ultimately, manufacturers as well. Old people just don’t consume as much and they don’t earn money. Dead people do none of either.
TheNationalist on Fri, 27th Oct 2017 10:23 am
Older people have more wisdom and commit less crime. This will save the west billions every year.(Look at Makati for instance), he seems like he wouldn’t cost society too much or drain Duterte’s police resources.
Unless of course he ran into Davy or Clogster at the pub and then he would be arrested for glassing people.
Antius on Fri, 27th Oct 2017 11:16 am
“Older people have more wisdom and commit less crime. This will save the west billions every year.(Look at Makati for instance), he seems like he wouldn’t cost society too much or drain Duterte’s police resources.
Unless of course he ran into Davy or Clogster at the pub and then he would be arrested for glassing people.”
Well there is that. Fewer demands on police and legal systems and no demand on schooling. In the UK, expressing a politically incorrect opinion is now a criminal offence. So in reality, old people commit lots of crime 🙂 Expressing an opinion in a totalitarian state is a risky thing to do.
I’m not so sure about the wisdom part. The brain reaches a peak just like the rest of the body. And I think healthcare costs overwhelm any of the other advantages. The main employment in Europe in 30 years time will consist of changing catheter bags. Whenever I need the doctor’s surgery, it is packed full of wrinkly grey heads, generally not doing anything in life other than sitting on their asses, watching TV, moaning and consuming food and oxygen. It doesn’t bode well for the future.
rockman on Fri, 27th Oct 2017 11:23 am
jef – “There is no such thing as the petrodollar, a currency backed by FFs.” Perhaps you don’t understand what the “petrollar” represents: oil exporters, like Saudi Arabia, post the price it will sell oil for in US$. A country can buy that oil in its own currency (yuan, euro, etc) but it will have to convert the price based upon its exchange rate with the US $.
Consider what that meant to a EU country. Some years ago it took $1.38 to buy €1 euro. Now it takes only about $1.13. So $50 million worth of oil today takes a lot more euros to buy today then way back then. And while the oil sellers and not the buyers set the currency denomination of their oil pricing there are a number of factors that go into that decision. Not the least of is political pressure.
As just described in length elsewhere China can pay for Iranian oil in yuan. But as long as Iran posts the prices in $’s and that price in converted to yuan based on the current yuan/$ exchange rate that doesn’t mean the Chinese are paying in “petroyuan”.
It’s still a petrodollar world and remain as such as long as the sellers price oil in $’s.
Cloggie on Fri, 27th Oct 2017 12:26 pm
Escalation in Spain today:
Catalonia declares independence.
Madrid cancels Catalonian autonomy.
This could get out of hand, not immediately but in the longer term.
This sets a precedence for the rest of the West if this goes through.
Follow-up candidates:
Flanders
Scotland
Corsica
Bask country
Lombardy
Venice
Perhaps even Saxony in Germany
And of course several US states as well:
https://www.youtube.com/watch?v=rFdIpkrjp-4
(Texas, California)
USSR, Yugoslavia, Czechoslovakia and Ukraine already gave the “good example” in recent history.
Antius on Fri, 27th Oct 2017 12:36 pm
Frisia? 🙂
Usually the places that really want independence have more money than the states they want independence from. Otherwise, there really isn’t any point.
Cloggie on Fri, 27th Oct 2017 12:50 pm
“Frisia?”
https://www.youtube.com/watch?v=fyC7G0rRWd4
https://www.youtube.com/watch?v=QopsP7zI-FY
(Not going to happen)
fmr-paultard on Fri, 27th Oct 2017 12:57 pm
if the MSM says sex, sex it is.
JFK then it is
vegas then vegas it is
There’s absolutely no room for alt-tard media. SENTAPs media dropped off the face of the earth and now supremacist extremist tard nazi antisemitic preachers are facing mass slaughter.
This is because President Trump will not ban the bumpski and the media is complicit in making the bumpski’s well know ability for shooting SENTPs when they have their confabs.
President Trump is executive and he puts a stop to ATF but he won’t. He gets to keep his sheeple satisfied. ATF can either restrict or don’t restrict bumpski
politics is deception no matter how you look at it.
and it’s my responsibility as a tard to inform supertards so they don’t become their Cambridge Five. I want them in America to help us compete and develop tools to exploit siberia.
i’m all about women combat jobs. i also want to destroy fake alt-tard media like ZH and altard-market.
Cloggie on Fri, 27th Oct 2017 1:13 pm
Help is underway, supertard!
http://www.bbc.com/news/world-us-canada-41756705
onlooker on Fri, 27th Oct 2017 1:30 pm
you are talking about collapsing the monetary system as the dollar is the internation trade currency. And to boot collapsing the US economy. I suspect what is going to happen is a happy medium Eurasia is going to do some oil trading etc. in other currencies especially the Yuan, even as the dollar continues in preeminence in the Western Hemisphere and Western Europe. Yet, all this is now so ephemeral, the world industrial civilization is now past due for a drastic downfall as pressures of a social, environmental and economic nature are all pressing it more and more
rockman on Fri, 27th Oct 2017 1:49 pm
Mak – And once again the facts you have yet to acknowledge. The top 10 countries with the largest gold reserves:
The USA is #1 with nearly as much gold as the next three countries combined…8,100 tons. It also has one of the highest gold allocations as a percentage of its foreign reserves…75%.
China is #5 (1,800 tons) with only 2.2% allocation as a percentage of it foreign reserves.
http://www.usfunds.com/investor-library/frank-talk/top-10-countries-with-largest-gold-reserves/#.WfN8gXpOlcs
sidzepp on Fri, 27th Oct 2017 2:03 pm
For those who might be interested in the current movements for separatists in various European countries to break away, this map shows the constantly changing boundaries of Europe over the last millennium. I guess they are use to this in the old world.
http://www.dailymail.co.uk/sciencetech/article-2424361/As-time-goes-The-mesmerising-video-documents-MILLENNIUM-European-history-just-minutes.html
fmr-paultard on Fri, 27th Oct 2017 2:23 pm
told you supertard will spank you hard. they’re beyond reproach. it’s not a concern if they go to moscow but they’ll drink their lives away as Cambridge Five. This is because America is their stomping ground. Condition in paradise moscow isn’t just their natural habitat.
as a tard, i oppose to you recruiting them. you’re our enemy
Boat on Fri, 27th Oct 2017 2:23 pm
3) Never talk about falling demand. Avoid mention of this at all costs. Instead, bring up “rising supply” and pretend as if demand is not a factor even worth considering.
Falling demand? The yellow line on the chart shows healthy demand…..The audacity of idocity. mak must have written this. He can’t read a chart, never could.
fmr-paultard on Fri, 27th Oct 2017 2:32 pm
chemistry is a game like everything else in life. if the fda regulates one synthetic structure then the chemist. these are outtertards will develop a slightly structure with some electron or bonding energy that’s different. then it’s legal.
i don’t like them.
drugs basically rewire the brain and jay hanson said it takes the hardware (the brain) to think of the software. so basically the addict is detained chemically.
this is unfortunate. it takes iron will to break out of it and only a few tard succeeds.
Anonymouse1 on Fri, 27th Oct 2017 2:33 pm
How about that, narrariveman is acknowledging the ‘petrodollar’, exists. Which is in stark contrasts to his usual denialism, which is to both deny the petrodollar as a reality, while usually insisting even if the PD were real, it would not matter anyhow, since the uSgov truly does not are or mind one bit what currency oil is transacted in. You know, washdindum being the command post for demockracy and ‘free-enterprise’ and all that jizz….
LoL.
One might think this is surprising, but this is actually typical of the narrativeman. You have a very difficult time keeping your narratives straight at times, and often flip flop 180 degrees with oily ease. Or maybe I am giving you too much credit, maybe its just senility. However, his ‘new’ take on the PD is only being used to let everyone know the uS petro-dollar is king, and no one had better contemplate otherwise-or else. So much for the narrativeman’s faux ‘enlightenment’ after all.
In case your history is rusty narrativeman, Iraq switched its oil sales to Euros, at a time when the Euro was much stronger than it is currently. That decision, prompted the uS to arrange an all out invasion, justified by fabricated tales of WomD, yellow cake, and mobile CW labs. Remember those? Naw, probably not. You’re amerikan, and a texan at that so, history, not really your thing. And guess what? That was back in the 90’s and you guys are STILL tormenting Iraq, every day, including this one. If current events tell us anything, your petro-dollar enforcers won’t be leaving Iraq along anytime soon, if ever. If that was not enough, the uS multi-pronged policy has been to undermine the EU economically at every turn as well. Maybe that helps explain why the Euro is not quite as strong as it once was. Perhaps, all the endless obstacles the uS seeks to put up between Europe and Russia have other, not-publicly stated rationales after all.
Mission accomplished?
The good news in all this, is that the uS petro-dollar, will not last forever, whether the narratviemans choses to extol the supremacy of the amerikan PD one week, or deny it even exists the next. Take away the PD, and you take away the empires #1 weapon, indeed its only real weapon, in its endless wars against the world. And no, not its WoMD, its ‘super-carrier’ battle-groups, or even its bloated, incompetent war-machine as a whole.
MASTERMIND on Fri, 27th Oct 2017 4:54 pm
makati1 Bloomberg reported today that 60% of the countries in China’s new silk road are rated in junk status..LOL You dumbshit
DerHundistlos on Fri, 27th Oct 2017 5:24 pm
Since the US refuses to allow an inventory of “stated” gold reserves, it’s unknown how much actually exists. Not long ago, the German government requested a return of its substantial gold reserves (3.396 tonnes-second largest global reserves) kept in safekeeping by the US during the cold war. For reasons unclear, the uS refuses to return Germany’s gold reserves. The US even refuses to allow the Germans the opportunity to audit their reserves. The obvious conclusion is the German gold no longer exists in US.
Davy on Fri, 27th Oct 2017 5:52 pm
BS, Der Hund, you already made this comment a few months ago and you were shown German got most of their gold back from the US, London, and France. The process may still be in progress but the point is they have a system for the return of the gold and it is working. Get your facts straight. If you have a reference to back up what you are saying show them now please.
“Germany repatriates $31 billion in gold from Paris and New York”
http://tinyurl.com/ycoqyxqm
makati1 on Fri, 27th Oct 2017 6:26 pm
DEr, you seem to be among the few here who understand that US numbers are full of shit. The US claims anything that will prop up its ongoing collapse.
China has more gold than it is claiming. We will soon know how much. I have seem claims as high as 20,000 to 30,000 tons. That would not be a surprise as they have been accumulating huge amounts for a long time.
A gold backed Yuan will change everything.
makati1 on Fri, 27th Oct 2017 6:32 pm
MMM those claims come from US controlled sources. More propaganda bullshit, as you will find out soon.
BTW: Those countries add up to about $1,000,000,000,000.00 in annual trade with China now and it will increase as the Silk Road advances. The road is ALL about trade, not war.
Don’t look now but your 12 year-old mentality is showing. Are you Davy’s brother? lol
makati1 on Fri, 27th Oct 2017 6:37 pm
Rockman, the US CLAIMS to have 8,100 tons. But, no reliable person has seen it in decades. It does not exist. It has borrowed gold from a few stupid countries that now want theirs back because they don’t trust the lying US. Actions speak louder than words. If they want to prove they have gold, then do it, don’r claim it.
The US has little, if any, of their own gold.
Davy on Fri, 27th Oct 2017 6:54 pm
Mad kat, do you have references for these numbers?
“I have seem claims as high as 20,000 to 30,000 tons”
“BTW: Those countries add up to about $1,000,000,000,000.00 in annual trade with China now and it will increase as the Silk Road advances. “
makati1 on Fri, 27th Oct 2017 6:55 pm
onlooker, IF the Saudis go the way of the yuan, it is game over for the dollar. I hoe it is soon.
Why? So the empire has to abandon its 800+ military sites across the world and pull in its bloated, creaking navy because the US economy crashed and there is no more taxes/blood left in the serfs to waste. When that happens, chaos will reign in America and it will have too many domestic ‘problems’ to be plundering other nations.
Don’t assume, like some here, that that means the whole world will collapse. Contract, yes. Collapse no. It will just mean that the US dollar is on the level of the Mexican Peso or the Russian Ruble, if it is lucky. It could be worthless. The Great American Leveling continues.
Davy on Fri, 27th Oct 2017 6:58 pm
“Rockman, the US CLAIMS to have 8,100 tons. But, no reliable person has seen it in decades. It does not exist”
Mad kat, the gold is likely there and you don’t have any references to say otherwise. It would be hard to dispose of that amount of gold without a trail. There is not that much gold in existence.
Davy on Fri, 27th Oct 2017 7:00 pm
“onlooker, IF the Saudis go the way of the yuan, it is game over for the dollar. I hoe it is soon.”
BS, mad kat, the Saudis are not that significant in the global economy. This shows how economically uninformed you are.
onlooker on Fri, 27th Oct 2017 7:39 pm
I do agree with you Makati, that the pretense of the US having gold is just that a pretense. Actually it probably has very little. Yes, I once saw a documentary about the Fort Knox gold. It is ALL probably gone by now. The question is what if anything might they be now hiding there?
makati1 on Fri, 27th Oct 2017 7:49 pm
Well, they did steal…er…move ‘for safe keeping’ all of Libya’s gold when they invaded.
http://presscore.ca/the-u-s-nato-gold-heist-of-libya
About 144 tons. Maybe that is the gold they gave back to Germany? lol
Sissyfuss on Fri, 27th Oct 2017 8:15 pm
fmrtardo, what’s the chances they moved the gold outta Fort Knox to make room for Jimmy Hoffas luxurious digs. He says hi by the way.
DMyers on Fri, 27th Oct 2017 9:31 pm
Mak, how dare you challenge 8100 ton claim. It’s there. Aren’t you listening? It’s there. They just don’t want anyone to see it.
This is obviously a matter of national security. There are many people, who, if they were to see a huge quantity of gold, would be overwhelmed with a will to possess that cache, with no bar to the means necessary for that end.
Just because they refuse to show it, that does not equate to a conclusion that it isn’t there. Quite the contrary, this refusal proves it is there. Its presence requires clandestine status, as protection against would-be gold thirsty thieves.
Believe they have it. Believe again, as needed to believe completely.
I have to point out, that with respect to any discussion of the dollar, we must begin with the acknowledgment that the US is absolutely, in fact profoundly, bankrupt. We owe more than we own, and we cannot meet out bills as they come due.
I noticed an ad recently, stating that there is a way to get out of debt without borrowing money. Folks, I want to point out something that should be very plain and simple, even to the US Congress. You cannot get out of debt by borrowing money any more than you can cool an object by applying heat.
TheNationalist on Fri, 27th Oct 2017 10:46 pm
Oh bugger off Antius, I dont give a fuck what some people think is politically correct and I am an Englishman.
As a “young man” I admit older people are much wiser and wisdom does not “peak”. Typical american bullshit way of thinking. In my suburb all the people in their 70’s and 80’s live at home happily and like the majority of older people they live independant lives.
The yank obsession with youth is disgusting and unhealthy. I am convinced the yanks will be the first race on earth that will look cosmetically perfect when they die!
DMyers on Fri, 27th Oct 2017 11:13 pm
“I am convinced the yanks will be the first race on earth that will look cosmetically perfect when they die!” [Quoting TheNationalist comment above] Amen and LMFAO.
makati1 on Fri, 27th Oct 2017 11:34 pm
DMeyers, in the US today, war is peace. Hypocrisy and double-talk is the norm. Morality, logic, and diplomacy is not found in America today. I cannot do anything to change that so I am just sitting outside as an interested observer.
Boat on Sat, 28th Oct 2017 12:09 am
mak,
After WWII it got a lot more peaceful. Took the bombs of war to tame ideology. On a tiny scale, it still happens today. I saw the city ISIS tore apart in the P’s. You need a bombing before they take over. If the P’s had oil we would bomb for you. As it is, get you some knee pads and figure out which way Mecca is.
rockman on Sat, 28th Oct 2017 12:43 am
For Anon (how can you make such a bizarre statement that the Rockman or a gone else might deny the existence of the petrodollar system that’s a matter of public record) and others who think the petrodollar is some physical entity: it’s not. Nor is it as complicated as some try to make it seem. Decades ago the U.S. influenced Saudi Arabia to persuade the other members of OPEC to standardize the sale of oil in dollars. Which in world trade is not an unusual situation. For instance according to the Bank for
International Settlements triennial survey, 87% of all foreign exchanges deals initiated in April 2013, involved the USD on one side.
There is no petrodollar to “fail” or “collapse”. It is not a currency. All that can change is that a member of OPEC (or all of them for that matter) can post their price of oil in some other denomination then the US $. As I pointed out let’s say Iran post its prices in yuan. But the price CAN NOT be based on the $/yuan exchange rate since that would be not different the posting the price in US dollars. No European country is required to pays Saudi Arabia in US $’s. I’m sure the Saudis would be glad to take euros. Hell, they might even take a truck load of Krugerrands. But the price would be adjusted based on the euro/$ exchange rate or the $ based price of gold.
Which takes us full circle to the same question again: on what basis would it use to sets its yuan per bbl price? Ask yourself a simple question: if you had a diamond ring you could sell for $50,000 and a Chinese business man wanted to buy it but pay in Chinese currency how many yuan would you accept for it?
I think there are a few here that have no idea what the “petrodollar” represents. Maybe more then a few.
makati1 on Sat, 28th Oct 2017 12:44 am
Boat, a few radicals 600 miles from Manila is hardly worth thinking about. 85% of the Ps is Catholic. Active Catholics. About 5% are Muslim and not radicals.
You suck in that US propaganda ‘news’ and make wrong assumptions. The US owns ISIS and brought them here to try to do another Syria. Not going to work. Most of the Muslims here like the way they live. The few that don’t will be killed.
“The Philippines’ largest Muslim rebel group, which signed a peace deal in 2014, has warned of the spread of radical militants who back the Islamic State.”
http://www.hindustantimes.com/world-news/largest-muslim-rebel-group-in-philippines-sounds-alarm-on-is/story-qjQ3TS40At7MhXJsh0HRlI.html
You are the one that should be worried.
“‘Staggering’: 680,000 Muslims to U.S. under Obama”
http://www.wnd.com/2015/11/staggering-number-of-muslim-refugees-under-obama/#lmF0tf21E3ilTiLI.99
“U.S. admits record number of Muslim refugees in 2016” (38,901)
http://www.pewresearch.org/fact-tank/2016/10/05/u-s-admits-record-number-of-muslim-refugees-in-2016/
makati1 on Sat, 28th Oct 2017 12:56 am
The Petrodollar represents the control the US puts on anyone who wants to buy oil. That control is being eroded away as many countries don’t like paying a skim to the empire to trade and are moving into other currencies.
Oil trade is the only thing keeping the US dollar alive. When it is not needed for trade, it will shrink and maybe die. Soon, I hope.
The price of diamonds can be set be the seller and the buyer by negotiation. Just like when traders bargained for goods in exchange for their furs before cash was common.
The Chinese yuan is going to be gold backed. THAT will set the value of the Yuan. The US has no gold, only debt, to back its Charmin dollars.
Cloggie on Sat, 28th Oct 2017 3:28 am
Took the bombs of war to tame ideology.
What ideology… “Germany for the Germans”?
Of course that ideology needed to be tamed, everybody knows that Germany and the rest of Europe belongs to America, or rather to its Anglo-Zionist over-class.
http://www.informationclearinghouse.info/article6139.htm
(written almost a year before the US finally managed to enter the war by provoking the Japanese to attack Pearl Harbor via a 100% oil boycot; in the days before December 7, the entire US cabinet was praying that they could keep the impending attack secret for their commanders of the fleet in PH).
Or as that punk Davy finally admitted: “we kicked your ass” (the moment I terminally broke with this mass-murder and suicide-of-the-West advocate)… and still demands “respect” for America on a daily basis, where a kick in the teeth would by more appropriate.
America, that in 1800, 2 decades after independence, still was largely a European colony…
http://stemfest.us/wp-content/uploads/2017/08/Map-Usa-Early-1800s-80-free-for-download-with-Map-Usa-Early-1800s.jpg
…but discovered oil on its territory and the meteoric rise of America began.
America = oil.
American Century = oil century.
America rose with oil and will fall with the outgoing oil age as it doesn’t have the creative energy anymore to take the lead in developing a new source of energy.
The rise was meteoric and the fall will be meteoric, just like the USSR.
https://www.amazon.com/Suicide-Superpower-Will-America-Survive/dp/0312579977/ref=sr_1_sc_1
The last thing Davy said before the water closed above his head and his empire was: “racist!”
If America is lucky they will partly end up as a colony-lite of Europe again. Better with us than with Soros.
https://www.counter-currents.com/wp-content/uploads/2017/10/PeoplesRepublic.jpg
DerHundistlos on Sat, 28th Oct 2017 3:40 am
Davy-
I don’t respond right away as I have better things to do with my life.
You have the audacity to tell me to get my facts straight. Were you not the big mouth who just claimed that the German protected reserve areas I referenced could not be true because you lived there for one year? Then I showed the reference. Naturally you failed to apologize.
Regarding German gold: “According to data from Marketwatch, 36.6 percent of German gold remains in New York without any definitive plans for its return.”
DerHundistlos on Sat, 28th Oct 2017 3:43 am
“Mad kat, the gold is likely there.”
How do you know, Davy? Do you have EVIDENCE to support your big mouth?
You are such a lousy hypocrite.
DerHundistlos on Sat, 28th Oct 2017 3:53 am
According to The Economist, the gold bars that Bundesbank repatriated from the US have different labels suggesting that the US replaced the German bullion with different gold bars bought from the market. Germany’s original reserves were sold by the US and only after facing serious international financial repercussions did the US scramble to replace Germany’s reserves.
Davy on Sat, 28th Oct 2017 4:52 am
“Were you not the big mouth who just claimed that the German protected reserve areas I referenced could not be true because you lived there for one year?”
Derdumbass, you said 48% of the country was protected. I said that was false. What world do you live in?