Cracks in Dollar Are Getting Larger

 

Many Daily Reckoning readers are familiar with the original petrodollar deal the U.S made with Saudi Arabia.

It was set up by Henry Kissinger and Saudi princes in 1974 to prop up the U.S. dollar. At the time, confidence in the dollar was on shaky ground because President Nixon had ended gold convertibility of dollars in 1971.

Saudi Arabia was receiving dollars for their oil shipments, but they could no longer convert the dollars to gold at a guaranteed price directly with the U.S. Treasury. The Saudis were secretly dumping dollars and buying gold on the London market. This was putting pressure on the bullion banks receiving the dollar. Continue reading

Oil Rich Venezuela Stops Accepting Dollars

Source: The Burning Platform

 

  • President Maduro ‘ Venezuela will create a basket of currencies to free us from the dollar,”
  • Oil traders ordered to stop accepting U.S. dollar in exchange for crude oil
  • Order comes following calls from Russia and China to find alternatives to current reserve system
  • U.S. Dollar accounts for two-thirds of global trade
  • Venezuela has over ten-times more oil than United States
  • Super powers are gradually turning to gold to avoid using world’s main reserve currency
  • Are we seeing the beginning of the end for the U.S. dollar?

The oil-rich country of Venezuela has stopped accepting the U.S. Dollar as payment for oil.

Last week President Maduro warned that the country would this week ‘free’ itself from the US dollar. Continue reading

China’s New Gold-Backed Oil Benchmark to Deal Blow to U.S. Dollar

ISTOCK.COM/SELENSERGEN

 

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

Talks in the Chancellery

BERLIN/CARACAS (Own report) – Chancellor Merkel will meet one of Venezuela’s leading government opposition politicians today in the Chancellery. Julio Borges, who, according to reports, supported the 2002 putsch attempt in Caracas, will discuss the political development in Venezuela with the chancellor. Fierce power struggles are being waged in that country. The opposition, mainly composed of representatives of the traditional wealthy elites, has ties to Western powers und is also supported by Berlin. With its operational assistance, for example in advising Borges’ Primero Justícia (Justice First) party in “political communication,” the CDU-affiliated Konrad Adenauer Foundation has been playing a special role. Primero Justícia had also participated in the 2002-attempted putsch. Berlin is pursuing an approach similar to that used in other Latin American countries, wherein it regularly supports the traditional elites. This resembles the German authorities’ interventions in the run-up to the putsch in Ukraine.

Continue reading

Sonic Attacks in Havana: An Act of War?

 

Let us define our terms: What is an Act of War? There are two types of Acts of War: de jure, which means as a matter of law and de facto, which means as a matter of fact. Unless a nation literally announces (de jure) to the world community, as in a declaration of war, that it committed an attack on the personnel and/or territory of another nation it comes down to a matter of fact (de facto) as assumed by the nation being attacked. Continue reading

War on Cash: A “Wider Cultural Change Agenda”

 

A certain Michael Andrew is the former global director of accounting at KPMG. He’s also the present generalissimo of Australia’s Black Economy Taskforce.

The stated mission of this “taskforce” sets it among the angels — to combat terrorism, narcotics, tax dodging.

Cash is of course the coin of these evil realms. Continue reading

Venezuela quells attack on military base, two killed

VALENCIA/CARACAS, Venezuela, Aug 6 (Reuters) – Venezuelan authorities quelled an attack on a military base near the city of Valencia by soldiers and armed civilians on Sunday, killing two of them in a dramatic escalation of unrest in the protest-convulsed South American nation.

The pre-dawn raid coincided with a video circulated on social media showing more than a dozen men in military uniform announcing an uprising to restore constitutional order following the creation of a pro-government legislative superbody on Friday, condemned internationally as a power grab by President Nicolas Maduro. Continue reading

Trump Will Now Become the War President

President Trump has been defeated by the military/security complex and forced into continuing the orchestrated and dangerous tensions with Russia. Trump’s defeat has taught the Russians the lesson I have been trying to teach them for years, and that is that Russia is much more valuable to Washington as an enemy than as a friend. Continue reading

Colombia: Venezuela Crumbles Into Uncertainty

While Venezuela is drifting towards mass starvation, government collapse and civil war Colombia has managed to avoid all that and then some. What Colombia did was not easy. It required nearly two decades of effort to reach the point where a peace deal was agreed to and succeeded in disbanding the major leftist rebel group FARC. With that accomplished (as of the end of June) the second largest leftist rebel group (ELN, a third the size of FARC) now wants to talk peace as well. All these leftist rebels got going in the 1960s but by the 1990s were rapidly losing popular support. It got worse after 2000 because by then the drug gangs and leftist rebels had merged in many parts of the country, and the war was increasingly about money, not ideology. A new reform government took advantage of this and organized an offensive that sharply reduced crime and gave the economy a chance to become the most successful in South America. Continue reading

Russian Military Commentator: We should point Caliber Missiles at America’s Fat Ass

Please see the source for the video as compatibility issues prevent it from functioning properly here. It will be posted here once/if another stable source is found. Below you will find a transcript.

 

Russian military commentator Col. (res.) Viktor Baranetz, a former Russian Defense Ministry spokesman, said that Russia should deploy Caliber cruise missiles to Cuba, Nicaragua, and Venezuela in order to defend their democracy and sovereignty and to point them “at America’s fat ass.” He was commenting on possible Russian actions against the backdrop of the ongoing debate in the U.S. regarding deployment of American troops to Ukraine. His statements aired on the Russian MoD TV channel Zvezda TV on June 26. Continue reading

“All I Have Is Hunger” – Many Venezuelans Too Weak To Protest Despite Maduro Misery

https://i0.wp.com/www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/04/17/20170420_VENZ1.jpg

 

While tens of thousands of angry Venezuelans turned out for the ‘mother of all protests’ yesterday, facing an increasingly hostile military/police state, the numbers could have been significantly larger but for the fact that legions of poor Venezuelans are simply too frail from starvation to protest.

Some say they are intimidated by armed pro-government militias who scour the slums for signs of dissent. Others say they are afraid to lose the few food handouts the cash-strapped government still provides.

“We wear our protest on the inside for the fear of losing our bag of food,” said San Félix resident Luisa Gutiérrez, a single mother of three. Continue reading

Maduro Orders Army Into The Streets Ahead Of “Mother Of All Protests”

 

With the world’s attention focused on Syria and North Korea in recent weeks for obvious reason, another geopolitical hotspot is on the verge of eruption. According to AFP, after weeks of increasingly more violent protests, Venezuelan President Nicolas Maduro has ordered the army into the streets as the insolvent nation braces for what the opposition has vowed will be the “mother of all protests” on Wednesday.

Maduro, who recently backed down from a bid to usurp supreme power after a Supreme Court decision left the local Congress powerless, only to reverse itself following furious blowback even from his own party, has faced violent protests over recent moves to tighten his grip on power, and ordered the military to defend the leftist “Bolivarian revolution” launched by his late mentor Hugo Chavez in 1999. Continue reading

Mexico Ranked (By Verisk Maplecroft) As World’s Third Most Dangerous Country

The consulting firm Verisk Maplecroft compiled a Crime Rate Index for calendar year 2016, and Mexico was in third place, as the third most dangerous country in the world.  The list was released in December of 2016.

Verisk Maplecroft describes itself on its website as “a leading global risk analytics, research and strategic forecasting company offering an unparalleled portfolio of risk solutions.”

Here is the firm’s Top Ten Most Dangerous Countries list, with #1 as the most dangerous country in the world, #2 as the second most dangerous, and so on: Continue reading

Venezuela Orders Largest Bills Turned in Ahead of New Bank Notes

Take cash away from the citizens and, in theory, they can’t make a run on the banks and spark a full economic collapse.

Take cash away from the citizens and they can’t have full economic control over their own lives.

 

  • Maduro says move to fight smuggling, currency attacks
  • 100-bolivar bills must be out of circulation in 72 hours

Venezuela’s government ordered all 100-bolivar bank notes out of circulation within 72 hours, amid a hard cash shortage and the scheduled release this week of bigger bank notes. Continue reading

Are The Saudis About To Reveal The Best Kept Secret In Oil?

One of the oil world’s longest and best kept secrets may finally be revealed. Saudi Arabia is preparing to unveil how much oil it holds, a closely guarded state secret that has been kept quiet for decades.

The decision to bring such important data to light comes as Saudi Aramco is preparing to partially privatize its assets, an IPO that could bring in some $100 billion. The IPO will be a monumental event, one that the Wall Street Journal says could offer Wall Street some of the largest fees in history. Continue reading