The issue of when a global reserve currency begins or ends is not an exact science. There are no press releases announcing it, and neither are there big international conferences that end with the signing of treaties and a photo shoot. Nevertheless we can say with confidence that the reign of every world reserve currency has to come to and end at some point in time. During a changeover from one global currency to another, gold (and to a lesser extent silver) has always played a decisive role. Central banks and governments have long been aware that the dollar has a sell-by date as a reserve currency. But it has taken until now for the subject to be discussed openly. The fact that the issue has been on the radar of a powerful bank like JP Morgan for at least five years, should give one pause. Questions regarding the global reserve currency are not exactly discussed on CNBC every day. Most mainstream economists avoid the topic like the plague. The issue is too politically charged. However, that doesn’t make it any less important for investors to look for answers. On the contrary. The following questions need to be asked: What indications are there that the world is turning its back on the US dollar? And what are the clues that gold’s role could be strengthened in a new system? Continue reading
New financial instrument gives oil-exporting nations their long-sought alternative to the petrodollar.
China will soon introduce a crude oil futures contract denominated in yuan and convertible into gold, the Nikkei Asian Review reported on September 1. Analysts say that since China is the world’s largest oil importer, the move could deal a major blow to the global influence of the United States dollar.
The contract would allow oil exporting nations such as Russia, Iran and Venezuela to conduct sales in yuan, instead of in U.S. dollars, and to then change the yuan into gold on both the Hong Kong and Shanghai exchanges. This would also allow these countries that often fall afoul of American foreign policy to circumvent dollar-based U.S. sanctions.
The Chinese government has been developing the gold-backed futures contract for years, and Oilprice.com reports that it is expected to launch this year. It will be China’s first commodities futures contract available to foreign entities, and analysts expect many oil-exporting nations and firms to find it appealing. Continue reading
American troops deployed in Syria have exchanged fire with rebels that were until recently supported by the United States Central Intelligence Agency. In 2013, soon after the outbreak of the Syrian Civil War, the then-US President Barack Obama instructed the Central Intelligence Agency to provide covert support to fighters in Syria. Acting on the president’s directive, the CIA promptly joined forces with spy agencies from Britain, France, Saudi Arabia and the United Arab Emirates, to assist fighters affiliated with the Free Syrian Army. At that time, Washington saw the Free Syrian Army and forces affiliated with it as ideologically moderate. It also agreed with the group’s main aim, which was to topple the regime of Syrian President Bashar al-Assad. Continue reading
Please see the video at the source.
PHILADELPHIA (CBS) — We’re learning more about the five planes flying in formation Monday night over the Philadelphia and South Jersey area.
A spokesperson for the FAA told KYW Newsradio on Monday that the group of jets flying in formation was a “military operation.” Continue reading
With Netanyahu due to meet Wednesday with President Vladimir Putin in Sochi, in an effort to block a permanent Iranian presence in Syria, Saudi sources reveal that Iran has started building a separate terminal at the Syrian port of Tartus to accommodate Iranian and Hizballah landings. Continue reading
LONDON (Reuters) — Iran‘s Revolutionary Guards have started using a new route across the Gulf to funnel covert arms shipments to their Houthi allies in Yemen’s civil war, sources familiar with the matter have told Reuters.
In March, regional and Western sources told Reuters that Iran was shipping weapons and military advisers to the Houthis either directly to Yemen or via Somalia. This route however risked contact with international naval vessels on patrol in the Gulf of Oman and the Arabian Sea.
For the last six months the Islamic Revolutionary Guards Corps (IRGC) has begun using waters further up the Gulf between Kuwait and Iran as it looks for new ways to beat an embargo on arms shipments to fellow Shi’ites in the Houthi movement, Western and Iranian sources say. Continue reading
On both the left and the right, there is a consensus in Washington that the United States needs to “push back” against the Islamic Republic’s nefarious actions in the Levant, Iraq, and Yemen. The clerical regime largely controls the ground war in Syria: Tehran’s foreign Shiite militias, imported from Lebanon, Iraq, Afghanistan, and Pakistan, and Iranian-directed native forces lead the battle against the Sunni insurrection. In Iraq, the Islamic Republic has energetically encouraged sectarian conflict, aiding politicians and militias that have taken a hardline toward political compromise with Sunnis. Iraqi members of Iran’s Islamic Revolutionary Guard Corps have become senior officials in the government. And in Yemen, Iran has backed the Shiite Houthis in their campaign to dominate the country. What once would have seemed far-fetched—Tehran trying to develop a Lebanese Hezbollah-like movement among Yemen’s “Fiver” Zaydi Shiites, who have never been close to the “Twelver” Jafaris of Iran—is now conceivable. If such Shiite militancy becomes anchored in the south of the peninsula, Tehran will surely try to aim it northward toward the badly oppressed Shiites of Bahrain and the oil-rich Eastern Province of Saudi Arabia. Continue reading
The sweltering heat of Saudi Arabian summer will feel like a cool breeze compared to the geopolitical fire that could soon take over the country if ongoing internal power struggles destabilize the Kingdom’s Royal Family and national security in the coming weeks.
After his successful elevation to Crown Prince, Mohammed Bin Salman (MBS) has been appointed by King Salman to be in charge during his holiday to Morocco. The King’s holiday comes at a time of relative instability in the Kingdom, as the effects of the removal of former Crown Prince Mohammed Bin Nayef at the end of the Ramadan period continue to linger. Continue reading
Beijing says facility needed for anti-piracy operations but rivals expected to be alarmed
China has taken a decisive step towards establishing a maritime force that can reach across the Indian Ocean with its first deployment of troops to its military facility in Djibouti on the Horn of Africa.
China has presented the facility as a support base to run anti-piracy operations in waters along Africa’s east coast as well as peacekeeping and humanitarian missions in the region.
But given it sits at the shipping choke point of the Gulf of Aden which opens to the Suez Canal and beyond, China’s regional neighbours including Japan, India and Vietnam were likely to view the deployment with alarm, mainland experts said.
Turkey sent 200 cargo aircraft, loaded with goods worth more that $20 billion to Qatar, subjected to an economic blockade by the Gulf countries since early June due to its alleged terror support, Economy Minister Nihat Zeybekci said Tuesday.
“Turkey is not helping [Qatar], it exports the goods, which had been already paid for. We have possibly made ever largest operation on goods delivery by 200 planes,” Zeybekci told the local TRT television channel, adding that the supplied goods were worth over $20 billion.
There is a revolution coming that is engulfing the world. Governments are broke and are taking drastic measures to stay in business. Not all revolutions are bloody. There have been revolutions such as that in Russia when the army stood down and would not fire upon the people. Even in Saudi Arabia, there is talk of revolution and civil war as a rift within the Royal family has been unfolding and the army is by no means united behind one faction. Continue reading
On June 19, Saudi Arabia reportedly captured three members of the Iranian Revolutionary Guard. A newsworthy story in its own right.
But what the Saudis allege the three were doing is much bigger news.
When captured, these three men were on-board one of three boats that were approaching the offshore Saudi oil field Marjan.1
They were not there for sightseeing.
The vessels (again this is according to the Saudis) were loaded to the brim with the types of materials that made the intent of the Iranians very clear… Continue reading
The price of oil is plunging.
For the first quarter of 2017 West Texas Intermediate (WTI) held a pretty stable range between $54–58 per barrel. Now it is back to the roller coaster that we have been on since mid-2014.
As I write this, WTI is struggling to hold $43 per barrel and is sinking like a rock. Continue reading
In elevating his son Prince Mohammed to next in line to the throne, Saudi King Salman approved a strategic realignment with the U.S. under Donald Trump and handed sweeping new powers to the 31-year-old who has been highly critical of regional rival Iran.
The decision by King Salman to promote his son to crown prince and consolidate his power was endorsed by 31 of 34 members of the Allegiance Council, made up of senior members of the ruling Al Saud family, Reuters reported on June 21. Continue reading