Qatar Close To Running Out Of Dollars?

Let’s be honest, the Saudi-led campaign to starve Qatar’s citizens of food and businesses of trade was doomed from the start, while the Saudi’s my feel they can rely on big bully boy best mate the USA to deter anybody thinking of helping Qatar, with both Turkey and Iran volunteering to provide food and other essentials to the tiny Gulf nation while <a href=”http://www.zerohedge.com/news/2017-06-12/bypass-food-embargo-qatar-will-pay-8-million-airlift-4000-cows”>local entrepreneurs have started a cow paradropping campaign</a> to beat the blockade on milk imports,&nbsp; the key factor is what will Russia’s President Putin do.

Putin has little time for the Saudis, is fed up of American meddling in the middle east, and is a strong ally of both Iran, the real target of the Saudi move against Qatar, and of Syria’s President Assad. And Putin is well aware of the role the USA and Saudi Arabia have played in sponsoring the iSIS / Al Nusra war in Syria. In fact, right up to the end of his failed presidency Barack Hussein Obama was telling the world America’s priority in Syria was not to defeat the terrorists of ISIS but to remove Assad and open the way for the Saudis to install a Muslim theocracy that would support its own extreme version of Islam.

A new problem has now emerged in Qatar, the world’s biggest source of natural gas: the financial system is running out of dollars. Bloomberg reports that several Qatari banks have boosted interest rates on dollar deposits to shore up liquidity as the Saudi-led campaign to isolate the gas-rich state intensifies.
&nbsp;&nbsp;
Adding to concerns of a monetary blockade, Bloomberg also reports that some banks in neighboring countries have been offloading investments in Qatar amid concerns of a widening of the blockade.

Qatar is the world’s wealthiest nation on a GDP/capita basis and is well able to withstand a prolonged financial siege, and defend its currency and economy. Finance Minister Ali Shareef Al Emadi&nbsp; played down the impact of the crisis on the country, in an interview with CNBC on Sunday (11 June) saying the plunge in Qatari assets last week was a “normal” reaction to the standoff.

Finally, the question nobody dares ask out loud is, “Where does Russian president Vladimir Puting stand on all this. Well aware of the US role in this latest crisis and the real reasons behind it (reported <a href=”https://originalboggartblog.wordpress.com/2017/06/10/germany-foreign-minister-warns-qatar-crisis-could-lead-to-war-as-qatar-asks-moscow-for-support/&#8221; target=”_blank”>HERE</a> and <a href=”https://originalboggartblog.wordpress.com/2017/06/11/irans-warships-sail-to-oman-as-the-qatar-crisis-deepens/&#8221; target=”_blank”>HERE</a>) Puting has said the US has “got a false sense that it is able to do everything without any consequences,” in particular after the Soviet Union’s collapse.

“In such a situation, a man or a country begins to make mistakes… Putin said. The state begins to function ineffectively. One mistake follows another. That is the trap in which, as I believe, the United States got caught into,” Putin reflected during a press conference.<strong><em>

“I believe that if you think you are the only world power, trying to impose on the whole nation the idea of their exclusiveness, this creates an imperialistic mentality in society, which in turn requires an adequate foreign policy expected by society. And the country’s leaders are forced to follow this logic. And in practice this might go contrary to the interest of the Americans…. It demonstrates it’s impossible to control everything.”</em></strong>

 

<strong><em>&nbsp;</em></strong>

Which some might interpret as a warning to the USA to stay out of the middle east and mind its own business.

 

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Irony Overload: Iran Warns Obama Not To Cross Red Lines

the United States concluded an agreement with Iran which lifted US and International sanctions in return for Islamic Shi’ite Republic agreeing to limit their nuclear ability. At a high level, the US would lead the way in lifting oil and financial sanctions imposed due to Iran’s nuclear programs; in return Iran would reduce their stockpile of enriched uranium,

Treasure “Trove” Of ISIS Documents Detail Secret Oil Trade With Turkey
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Leaked Transcripts Prove ISIS-Turkey Link
Turkey had been widely criticized for not doing enough to assist in the fight against ISIS. In fact, we have published here a lot of evidence to suggest that Ankara was cooperating with the group by ensuring funds through illegal oil trades and acting as a conduit for US supplied weapons. Turkey’s links with ISIS are so undeniable and well documented now, even mainstream media have had to start reporting this news …

NATO Warships in the seas Odysseus Sailed Spell Trouble For EU

In an apparent effort to reduce the flow of migrants making their way from Turkey to Greece across the Aegean Sea, and because of the mistrust between the nations on either side of that body of water, pressure has been put on NATO (of which both Greece and Turkey are members)by the EU to deploy ships to the Aegean Sea …

War Is Good, The Obama Worshipping Guardian Says
Alas that all went down the pan in 2008 when the USA elected its first (and probably last) black president. Like American liberals, the hacks at The Guardian could not see past the colour of Obama’s skin and before Obama had even been sworn into office they were declaring him not just the greatest president ever but the greatest human being ever

US Allies Now Fighting CIA-Backed Terror Groups In Syria
The idea that ISIS has very close links with the USA has gone beyond conspiracy theory, or anti US propaganda, the proof is out there. We have previously reported on the US government’s links to ISIS and revealed the vital role of NATO member Turkey in supporting the terrorists in their campaign which aims to create an Islamic Caliphate stretching from the Mediterranean Sea to the Persian Gulf

Where Did all The Money Go (poem)
Songs of Glory

Is USA preparing for all out war with Russia?
Obama Launching Massive Military Intervention In Libya And Iraq
US weapons reaching ISIS through Turkey
ISIS as US creation
The real agenda behind the war in Syria
Turkey / ISIS Oil Trade? Everyone Kows What’s Going On Say Istanbul Residents
Turkey’s Links to Islamic State
Obama says he brought peace to Syria as fighting intensifies
Putin response To Obama’s Claim He Brough Peace To Syria
Syria the biggest US foreign policy blunder ever
NATO Hypocrisy: Edrogan Threatens Russia, NATO Tolerates Turkey Helping ISIS
The Source Of Islamic Radicalism Is biggest US Ally In The Middle East
US and UK hypocrisy on Syria
Did Saudi Arabia Just Announce Its Intention To Invade Syria And Iraq?
USA proxy war on Russia in Syria
Who of those we think are on our side is really helping ISIS
More On The Turkish Involvement With ISIS Illegal Oil Trades
ISIS, Democracy, Dickheads

 

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What Putin Wants

As the Wankerati work themselves to a breathless climax about the killing of government opponents in Russia (but still find it hard to comment on the atrocities committed daily by rulers like Mugabe in Africa, the mainstream media are missing completely the really significant news story involving Russia this week.

That is of course the way Germany is cosying up to Moscow and the remaining RICS nations (that’s BRICS but without Brazil, where chaos rules following a US sponsored attempt to change a regime that didn’t do what Washington wanted it to.)

When I posted the linked article on that story someone asked me in relation to this Russian led attempt to dump the US dollar as reserve currency, what I though Putin wanted.

What does Putin want? Simples. To quote the peerless Mel Brooks:

I don’t want war. All I want is peace. Peace. Peace!
Aaaaa little piece of Poland, a little piece of France
A little piece of Portugal, and Austria perchance
A little slice of Turkey, and all that that entails
Und then a piece of England, Scotland, lreland and Wales

Read full lyric from the film To Be Or Not to Be

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Germany Alarmed by Aggressive NATO Stance On Ukraine
As the US pro war rhetoric pumps up the tensions between Russia, its allies and the west in Ukrain we revisit once more the truth about which world power has been relentlessly pushing for war since 2009. It isn’t Russia or China, though they are not likely to back down.

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World War Three? Kiev Reinvades Donbass, Deliberate Provocation Trashed Minsk Agreement
When America wants to provoke Russia it uses proxies, a rabble in Libya, Islamic fundamentalists in Syria and Iraq and neo – Nazi thugs in Ukraine. So far Russia has resisted the urge to kick Obama in the balls, but sooner or later the Russia – China – Iran alliance will respond.

Oil price: Britain’s North Sea Oil Industry ‘Close To Collapse’

We were perhaps mistaken in calling this page ‘Currency wars’ and focusing initially on American attempts to undermine Russia’s economy which is overly dependent on oil and gas. That of course is just a skirmish in a much wider economic war that is now hurting those nations that complied with Obama’s diktat and imposed economic sanctions on Russia in retaliation for Moscow’s refusal to surrender its strategically vital satellite state, Ukraine, to NATO and the EU.

Britain, because of our north sea oil interests is one of the hardest hit.

The price of crude oil began to collapse when The United states Of America, the swaggering bully of the world community decided to use its new status as a net exporter of oil, due to the shale boom, to flood world markets, finding because their oil is the most expensive to extract, that their wells were not economically viable, and damage Russia’s oil dependent economy. Naturally prices in world markets dropped due to the law of supply and demand. With typical stupid arrogance the Americans demanded that the Arabs and other traditional oil producers cut production to hold up prices.

The Arabs and other oil producing nations, sensing Amerca’s push to become gobal hegemon had run off track and what they were threatened with was the empty bluster of a bully whose cowardice and weakness has been exposed in effect said, “Fuck the fucking fuck off,” by pumping more oil and sending prices crashing even further. Result? Approximately $1trillion worth of new shale fracking projects planned in the USA have been cancelled. If it ended there the world would only have the minor problem of a US / Russia currency war.

Unfortunately the plunging oil price has brought about a “huge crisis” in energy markets, one of the worst hit is the UK’s North Sea oil industry, expert have warned. With North Sea oil now selling at below $60 a barrel, it is “almost impossible to make money”, Robin Allan, chairman of independent explorers’ association Brindex, told the BBC.

“It’s a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs,” he said.

After several days of volatile trading in oil markets, Brent crude, the global benchmark, ended the day down 1 per cent at about $60 per barrel after having risen 3 per cent in early trading. In recent weeks, oil prices have crashed to their lowest levels in five-and-a-half years following falls demand due to weakening in major economies and concerns of a global oil glut.

Up to £55bn worth of North Sea oil projects scheduled for 2015 could be cancelled due to the falling prices, the Daily Telegraph reports.

Concerns over the financial state of the oil industry have increased since Opec voted not to cut production in an attempt to arrest sliding prices when they met in Vienna last month. Iran’s oil minister has publically criticised Opec’s inaction. Bijan Zanganeh told the country’s state petroleum news agency: “The prolongation of the downward trend of the oil price in world markets is a political conspiracy going to extremes.”

The US-based oil company ConocoPhillips has already moved to cut 230 out of 1,650 jobs in the UK and some analysts predict that other large firms will make similar cost-cutting announcements in the coming months.

However, the Department of Energy and Climate Change said yesterday that even though reductions in oil prices have proven “very challenging” for companies active in the North Sea, “we have seen very little evidence of new projects being cancelled or deferred in reaction to lower oil prices”.

[more]

The Obama Administration Just Accelerated The Demise Of The USA As Dominant Econimic Power

mistral helicopter landing ship
A mistral helicopter landing ship – at the centre of the bust up between France and the USA (source)

When we reported late last year that The Obama Administration in the USA was playing with fire by imposing fines on British (and German) banks because they handled transactions with Iran and other nations against which the USA has imposed sanctions, we did not expect an arrogant egomaniac like Barack Hussein Obama to take our warning on board. It might have been wise if Obama had listened to some of the international financiers and diplomats who were trying to remind the ego – in Chief he is president of the USA, not the entire world, but hey Obama knows that the colour of a man’s skin is the only measure of intelligence so I guess his critics just weren’t black enough for him to believe they knew what they were talking about.

The backlash began slowly enough, France, Britain, Germany and other European nations, along with governments in Africa, Asia and South America began making trade deals with Russia and China to conduct business in the currency of the vendor nation and undermine the status of the US$ as the global reserve currency.

It would be totally out of character for Obama to react to what is actually happening, the man is a solipsist and seems to believe he can bring about a situation by wishing it so. Thus the US compunded its error of believing the world must do its president’s bidding by imposing a multi-billion US dollar fine on France’s biggest bank, BNP, because the french government proceeded with delivery of a warship to Russia after the USA had declared military equipment trades with The Kremlin illegal after Putin made the Americans look like idiots over Ukraine. The French government took exception to this (well the ship was already built and warships don’t come cheap). In an interview given to French magazine ‘Investir’, the governor of the French National Bank Christian Noyer and member of the ECB’s governing board, made this rather gobsmacking response to a question:

Q. Doesn’t the role of the dollar as an international currency create systemic risk?
Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. The fining ofBNP Paribas was the occasion for many observers to remember that there have been a number of sanctions (against non US banks) and that there would certainly be others in the future.

 

A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Moves towards towards a multi – currency trading system is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris.

 

We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world’s largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. commercial law expanding to all USD-denominated transactions around the world can have an accelerating effect.

In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world’s reserve currency, the US Dollar, and the Obama administration.

In a nutshell, by attempting bring France to heel after the French honoured contractual obligations taken on long before there was any threat of sanctions against Russia by completing the delivery of a Mistral amphibious warship, the US decided it had the right to punish France by imposing a large fine on BNP, its leading bank. Really the fine represented blackmail by the Americans ( Putin revealed the BNP penalty was a used as a carrot to pressurize France into scrapping the Mistral transaction at a very late stage: had Hollande scrapped the deal, the French were promised BNP would face a far lower fine, if any). The blackmail attempt backfired catastrophically for America when as a result, the head of the French central bank spells it out that not only is the Dollar’s reserve currency status not immutable, but the international community will be even more eager to avoid USD-transactions in order to escape the tentacles of America’s global trade police.

The biggest irony is that in “punishing” France for dealing with Russia, the key player in the Eurasian alliance of Russia, China and Iran, the US merely gave France (and all of Europe) an enormous push towards Eurasia, toward a multi lateral global trading environment, (sorry fanatic believers in a one world, totalitarian collectivist government, but it’s looking less likely to happen every day).

Like I keep saying, it’s impossible to do political satire these days. Nobody could ever make up anything as crazy as the truth.

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Libertarianism Is Not The Philosophy Of Right Wing Nut Jobs
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China – UK dump the US dollar for bilateral trades

Another “told you so” post from Boggart Blog. It’s gets sooooooo booooooooring being right all the time but being endowed with the handicaps of independent minds and an abundance of common sense its a burden we Boggart Bloggers must bear.

flushing dollarsPicture source

From Zero Hedge
Following the initial de-dollarization meeting, there has been a slew of anti-dollar moves around the world (including Gazprom’s shift of 90% of its clients to non-dollar payments). However, on the heels of the “anti-dollar alliance” discussions yesterday, DW reports that China would start direct trade between the renminbi and the British pound on Thursday. China’s Foreign Exchange Trade System (CFETS) confirmed Sterling and yuan would be directly swapped without using the US dollar as an intermediary.

And from Boggart Blog back in March this year:

Not long ago members of our little team posting on Boggart Blog, Little Nicky Machiavelli and The Daily Stirrer warned you that the USA and EU had a lot more to lose than Russia if they got into an economic war with The Kremlin.

One proud, patriotic and utterly stupid American loftily informed me that the America had nothing to fear because the world trades in US dollars. That used to be right, unfortunately it is no longer so because China and the rest of the BRICS along with Iran and several other significant holders of vast natural resources have been dumping the dollar and making bilateral trade agrements for several years.

Well as usual, drawing on our vast pool of business and life experience we were right at this information that came to us via News Beacon Ireland shows.

Read full article

The Biggest Secret About banking has Just hit Mainstream Media

debt burdenThe Debt burden – source financial helper

Mostly in my guise as Little Nicky Machiavelli, I’ve pointed out for years that banks create money out of thin air. With many economics pundits predicting another, bigger than 2008, financial crash as ustable currency floods the world it has now finally struck mainstream media that our money is worthless, the only thing underpinning it is debt, your debt, your neighbours debt, Old Uncle tom Cobbleigh’s debt, George Osborne’s debt my … oops; I have no debts, repugnantly sensible person that I am, I saw it coming. The outcome is inevitable when loans come first … and then deposits FOLLOW.

In fact the money you borrow is bundled with the debts of others and used as collateral by your bank to secure loans from investment banks which will be used to make further loans to punters like you. If you think this sonds a lot like creating money from air, it is exactly that. The global economy is a giant Ponzi scheme, thanks to ‘liberal’ and ‘socialist’ (for both read corporatist) politicians and fuckwit economists with the intelligence of turnips perverting Keynesian economics to justify the infinite public spending oligarchic collectivism requires.

This is the most important secret about modern banking because it demolishes one of the biggest myths preventing a true economic recovery, challenges one of the main pork barrel profit centers for big banks. If finance ministers heed to common sense brigade and ignore the siren song of academics, running a national economy is just like managing a household budget but with much bigger sums involved and thus much bigger economic catastrophes as the consequence of continually spending more that your income opens up incredible opportunities for a prosperous economy.

This undeniable truth which stands conventional wisdom on its head has now gone mainstream, with not just bloggers like myself, financial market pundits like Tyler Durden of Zero Hedge and the Financial Times’ Martin Wolf – one of the world’s most influential mainstream financial writers – says that, since banks create money out of thin air, they should be stripped of this power, and limited to normal depository functions.

In other words they should not be able to lend money that is not underwritten by deposits or substantial assets, a bundle of debts is not a substantial asset, it is an effing debt, money owed which carries a risk that it will not be repaid. For example, The Deutschebank’s $75 trillion holdings of debt derivatives is worth absolutely eff all until people repay their debts. Simples. Or maybe not if you consider it amounts to 20 times Germany’s GDP.

Wolf indicates the centrality and importance of the issue with his subtitle: The giant hole at the heart of our market economies needs to be plugged.

Read more at Washinton’s Blog

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Money From Rock Better Than Money From Air

Strange things are happening in the finance markets, very strange. As the FT and Dow Jones main indexes go up and down faster than a whores knickers, commodity prices are behaving weirdly too.

from Zero Hedge:

The last few days have seen Western anti-Russian rhetoric and red lines escalate dramatically as the military and economic issues come to light in any push back against Putin’s pressure. From NatGas export fallacies to “boomerang”-ing sanctions, the west seems stuck (for now).. which brings up the question – why is China and Russia making huge investments in commodity-miners? Russia’s largest gold miner Polyus Gold is considering a complete onshoring of its activities and China is buying a huge Peruvian copper mine from Glencore. The outcome would appear to enable both firms to do away with USD but not having to buy this resource in the market… just mine it? Continue reading

Well commodity backed currency is more stable than money from the air currrency we have had since the end of World War Two or the extreme version of fiat money, which involves city traders exposing themselves (Naked Finance). But who sets the exchange rates? And how many chickens are there to a goat.

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