Socio-Economics History Blog

Socio-Economics & History Commentary

Huge!! Petrodollar Collapse? Saudi Arabia Warns $200 Barrel Oil?!

  • US sanctions on Riyadh would mean Washington is stabbing itself
    by Turki Aldakhil,
    I read the Saudi statement in response to the American proposals regarding sanctions on Saudi Arabia. The information circulating within decision-making circles within the kingdom have gone beyond the language used in the statement and discuss more than 30 potential measures to be taken against the imposition of sanctions on Riyadh. They present catastrophic scenarios that would hit the US economy much harder than Saudi Arabia’s economic climate.

    If US sanctions are imposed on Saudi Arabia, we will be facing an economic disaster that would rock the entire world. Riyadh is the capital of its oil, and touching this would affect oil production before any other vital commodity. It would lead to Saudi Arabia’s failure to commit to producing 7.5 million barrels. If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure.

    An oil barrel may be priced in a different currency, Chinese yuan, perhaps, instead of the dollar. And oil is the most important commodity traded by the dollar today. All of this will throw the Middle East, the entire Muslim world, into the arms of Iran, which will become closer to Riyadh than Washington.

    There are simple procedures, that are part of over 30 others, that Riyadh will implement directly, without flinching an eye if sanctions are imposed. This is all when it comes to oil, but Saudi Arabia is not just about oil, it is a leader in the Muslim world with its standing and geographical importance. And perhaps trusted exchange of information between Riyadh and America and Western countries will be a thing of the past after it had contributed to the protection of millions of Westerners, as testified by senior Western officials themselves.

    Imposing any type of sanctions on Saudi Arabia by the West will cause the kingdom to resort to other options, US President Donald Trump had said a few days ago, and that Russia and China are ready to fulfill Riyadh’s military needs among others. No one can deny that repercussions of these sanctions will include a Russian military base in Tabuk, northwest of Saudi Arabia, in the heated four corners of Syria, Israel, Lebanon and Iraq.

    At a time where Hamas and Hezbollah have turned from enemies into friends, getting this close to Russia will lead to a closeness to Iran and maybe even a reconciliation with it.

    It will not be strange that Riyadh would stop buying weapons from the US. Riyadh is the most important customer of US companies, as Saudi Arabia buys 10 percent of the total weapons that these US companies produce, and buys 85 percent from the US army which means what’s left for the rest of the world is only five percent; in addition to the end of Riyadh’s investments in the US government which reaches $800 billion.

    The US will also be deprived of the Saudi market which is considered one of the top 20 economies in the world. These are simple procedures that are part of over 30 others that Riyadh will implement directly, without flinching an eye if sanctions are imposed on it, according to Saudi sources who are close to the decision-makers.

    The truth is that if Washington imposes sanctions on Riyadh, it will stab its own economy to death, even though it thinks that it is stabbing only Riyadh!


October 17, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , | Leave a comment

Was The End Of The Petro Dollar Just Announced By The President?

  • X22Report Published on Oct 5, 2018
    Venezuela is ready to unleash the Petro on Nov 5. Mattress Firm files for bankruptcy. NY Fed lowers the growth rate for the 3rd and 4th Q. U.S. Unemployment Rate Falls to Lowest Level Since 1969. The unemployment rate fell to 3.7%. Trump signals the end of the Petro dollar. When Trump warned Saudi Arabia this was phase I of destroying the entire central bank system.


October 8, 2018 Posted by | Economics | , , , , , , , , , , | Leave a comment

Crude Behaviour: Trade War Escalates as China Halts All Oil Imports from US

  • RT Published on Oct 5, 2018
    America’s second-largest oil client, China, has completely stopped buying crude from the United States as trade tensions between the world’s two largest economies continue to grow.


October 6, 2018 Posted by | Economics | , , , , | Leave a comment

Putin Warns US on Oil, Dollar Policies

  • PressTV Published on Oct 3, 2018
    Russian President Vladimir Putin says the US president himself is to blame for the current high oil prices. Putin says interfering in market processes and trying to gain competitive advantages by using political tools is not the right way to regulate markets. He also warned the US over the dollar. Putin says Washington is making a colossal strategic mistake by underestimating the confidence in the dollar. He pointed to how Europeans are now thinking about a billing option in addition to the dollar which will undermine the green back.


October 4, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Iran Considers SWIFT Payment System Alternative to Bypass US Sanctions

Who is the aggressor?

  • Iran Considers SWIFT Payment System Alternative to Bypass US Sanctions
    Iran and its trading partners are working to establish mechanisms for the oil trade to bypass US sanctions against the country, said Iranian Deputy Foreign Minister Abbas Araghchi.

    He told Sputnik news agency that Tehran is not ruling out the possibility of setting up an alternative to the international payments provider SWIFT to circumvent sanctions imposed by Washington.

    “As we know, Europeans are also trying to see how SWIFT can continue working with Iran, or if a parallel [financial] messaging system is necessary… This is something that we are still working on,” Araghchi said.

    According to him, an independent equivalent of the SWIFT system that was earlier suggested by the EU to protect European firms working in Iran from US sanctions will be available for third countries. “This is the important element in SPV (Special Purpose Vehicle) that it is not only for Europeans but other countries can also use this. We hope that before the re-imposition of the second part of the US sanctions [from November 4], these mechanisms can be in place and be functional,” said the official.

    SWIFT is a financial network that provides high-value cross-border transfers for members across the world. It is based in Belgium, but its board includes executives from US banks with US federal law allowing the administration to act against banks and regulators across the globe. It supports most interbank messages, connecting over 11,000 financial institutions in more than 200 countries and territories.

    German Foreign Minister Heiko Maas earlier called on the European Union to set up an independent equivalent of the SWIFT system.

    read more.


October 2, 2018 Posted by | Economics, GeoPolitics | , , , , | Leave a comment

US Could Use Navy for ‘Blockade’ (an Act of War) to Hamper Russian Energy Exports – Interior Secretary

(U.S. Navy photo by Mass Communication Specialist 1st Class Scott Taylor/Released)

  • Soon, you will need Pentagon’s permission before you are allowed to fart.
  • US Could Use Navy for ‘Blockade’ (an Act of War) to Hamper Russian Energy Exports – Interior Secretary
    US could use its Navy to prevent Russia’s potential energy supplies to the Middle East, Internal Secretary Ryan Zinke said, Washington Examiner reports. The blockade would actually mean an “act of war,” Russian Senator fired back.

    Zinke alleged that Russia’s engagement in Syria – notably, where it is operating at the invitation of the legitimate government – is a pretext to explore new energy markets.

    “I believe the reason they are in the Middle East is they want to broker energy just like they do in eastern Europe, the southern belly of Europe,” 
    he has reportedly said.

    And, according to to the official, there are ways and means to tackle it.

    “The United States has that ability, with our Navy, to make sure the sea lanes are open, and, if necessary, to blockade … to make sure that their energy does not go to market,”
     he said.

    Zinke was addressing the attendees of the event hosted by the Consumer Energy Alliance, a non-profit group which styles itself as the “voice of the energy consumer” in the US. He went to compare Washington’s approaches to dealing with Russia and Iran, noting that they are effectively the same. 

    “The economic option on Iran and Russia is, more or less, leveraging and replacing fuels,”
     he said, while referring to Russia as a “one trick pony” with an economy dependent on fossil fuels.

    Zinke’s statements provoked an angry response from Moscow, which equated a potential maritime blockade to an “act of war,” while calling the internal secretary’s assumptions “nonsense.”

    “A US blockade of Russia would be equal to a declaration of war under international law,”
    Russian Senator Aleksey Pushkov said, commenting on Zinke’s words. Russia does not currently export any energy to the Middle East, which itself is a major oil exporting region. The whole idea is an “absolute nonsense,” the Senator argued.

    read more.


October 1, 2018 Posted by | Economics, GeoPolitics | , , , | Leave a comment

China, Russia and EU To Create Alternative To U.S. Dollar! Is the PetroDollar Dead?

September 28, 2018 Posted by | Economics | , , , , , , , , , | Leave a comment

EU to Create Special Payment Channel With Iran. The End of US Hegemony

  • RT America Published on Sep 25, 2018
    The U.K, Germany, France, China and Russia are working to create special payment channels to do business with Iran legally, at a time when US is looking to stifle Tehran’s oil exports with sanctions. European Union foreign affairs chief Federica Mogherini says the EU signatories remain committed to the nuclear deal with Iran that the US has quit. RT America’s Sara Montes de Oca reports.


September 26, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Russia’s Largest Energy Companies Preparing to Substitute Petrodollar in Settlements

  • Russia’s Largest Energy Companies Preparing to Substitute Petrodollar in Settlements
    Oil firm Surgutneftegas has joined a list of Russian energy companies that are ready to get rid of the US dollar in favor of the euro and other currencies in international settlements, Reuters reports.

    According to a message sent by Surgutneftegas to one of its customers, the oil company wants to “avoid any possible problems with payment in USD,” the news agency reports. “We do not comment on our commercial activity,” replied the company, Russia’s fourth largest by output.

    The reported move comes in line with the recent comments from the Kremlin. Last month, Finance Minister Anton Siluanov said Russia could reject the greenback in oil trade.

    “It is not ruled out. We have significantly reduced our investments in US assets. In fact, the dollar, which was considered the global currency, becomes a risky instrument for settlements,”
     he told Russian TV.

    Russian Energy Minister Aleksandr Novak has said that the government is considering the possibility of oil settlements in national currencies, especially with Turkey and Iran.

    Who else is ready to cut dollar dependence in Russian oil sector?
    Gazprom Neft
    Surgutneftegas is not the only Russian energy company that is reported to be working to reduce dependence on the dollar. A Reuters source in Gazprom Neft, Russia’s third-biggest oil company by output, said its contracts already have a clause to trade without the US dollar. Gazprom’s oil subsidiary has not commented on the issue yet.

    read more.


September 24, 2018 Posted by | Economics, GeoPolitics | , , , , | Leave a comment

Economist Predicts END OF U.S. EMPIRE

  • SilverDoctors Published on Sep 19, 2018
    Economist Jerry Robinson tells Silver Doctors we’re experiencing the end of an empire. America is falling. China has already become the largest economy in the world based on purchasing power parity. China has seen so much economic growth it has been argued there is more capitalism happening in China than the U.S. Trump announced $200 million in new tariffs. China is retaliating with tariffs against the U.S. But which country will win out in the long run? The U.S. is on a decline. History shows that empires come to an end, and the U.S. will be no different.


September 21, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

Discussing De-Dollarization with Da Jackass: Dr. Jim Willie

Click on image to download MP3 interview.

  • Discussing De-Dollarization with Da Jackass: Dr. Jim Willie
    A perceived acceleration toward the end of US dollar hegemony has been a hot topic here at TFMR this week. Thus, we thought it should be the primary topic for our holiday weekend Jim Willie discussion, too.

    There’s no easy way to summarize this conversation with bullet points. Instead, just notice that we began the call by discussing de-dollarization and then just let it flow from there. I think you’ll find this interesting and informative. Thanks again to The Jackass for so freely sharing his time with us!


September 5, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Oil, So Much Oil… France & Italy Battle for Influence in Libya

  • RT Published on Sep 4, 2018
    Some 400 people have reportedly escaped from a prison in a suburb of the Libyan capital Tripoli. The area has been engulfed in heavy infighting between rival militias for days. A state of emergency has been imposed in the city. READ MORE:


September 5, 2018 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Jim Willie: De-Dollarization, Gold, Global Reset …

August 30, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , | Leave a comment

India in Talks with EU to Evade US Iran Sanctions

  • PressTV Published on Aug 26, 2018
    Indian media say New Delhi is in talks with the European Union to find a way to evade US upcoming sanctions against Iran. They say the Indian government is, at the same time, trying to convince Washington not to direct its future sanctions against New Delhi.


August 27, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Time Has Come for Russia to Finally Ditch US Dollar – Foreign Ministry

  • Time Has Come for Russia to Finally Ditch US dollar – Foreign Ministry
    Russia will definitely respond to Washington’s latest sanctions and, in particular, it is accelerating efforts to abandon the American currency in trade transactions, said Deputy Foreign Minister Sergei Ryabkov.

    “The time has come when we need to go from words to actions, and get rid of the dollar as a means of mutual settlements, and look for other alternatives,”
     he said in an interview with International Affairs magazine.

    Thank God, this is happening, and we will speed up this work,” Ryabkov said, explaining the move would come in addition to other “retaliatory measures” as a response to a growing list of US sanctions. Russian Energy Minister Aleksandr Novak recently noted that a growing number of countries are interested in replacing the dollar as a medium in global oil trades and other transactions.

    “There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,”
     Novak said. According to the minister, it concerns both Turkey and Iran.

    “We are considering an option of payment in national currencies with them. This requires certain adjustments in the financial, economic, and banking sectors”
     to accomplish. Last week, the Kremlin said it is interested in trading with Ankara using the Russian ruble and the Turkish lira. India has also vowed to pay for Iranian oil in rupees.

    The world’s second-largest economy, China, has also been taking steps to challenge the greenback’s dominance with the launch of an oil futures contract backed by Chinese currency, the petro-yuan. China and Iran have already agreed to stop using the dollar in global trade.


August 25, 2018 Posted by | Economics | , , , , , , , , | Leave a comment