The Brave New World of Ample Oil

By Tilak Doshi – Re-Blogged From WUWT

In the oil universe, the September 14th attack on Saudi Aramco’s oil facilities is comparable to the 9/11 attacks on the twin towers in New York City. Yet, the taking out of half of the Kingdom’s oil output led not to an oil shock but a whimper. Barely two weeks after the brazen attack, oil headlines were once again dominated by fears of over-supply and falling prices amidst a slowing global economy.  Following an initial 20% intra-day price surge after the attack, the benchmark Brent crude oil price quickly retraced its steps back down to pre-attack levels.

The US oil production surge benefits Asia

The shift from a perceived world of oil scarcity to abundance has been brought about in an astonishingly short period of time by the advent of the “fracking” revolution in the US. This combines horizontal drilling and hydraulically-fracturing shale rock with high-pressure liquids to extract “unconventional” oil and gas. In the past decade, US crude oil production more than doubled. By mid-2019, US production was rated at over 12 million b/d, surpassing Russian and Saudi Arabian output as the world’s largest.

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Plans for a Global Dystopia

By Alasdair Macleod – Re-Blogged From GoldMoney

Global policy planners intend to deliver replacements for both dollar hegemony and fossil fuels. Plans may appear uncoordinated and in their early stages, but these issues are becoming increasingly linked.

A monetary reset incorporating state-sponsored cryptocurrencies will enable exchange controls to be introduced between nations by separating cross-border trade payments from domestic money circulation. The purpose will be to gain greater control over money and to direct its investment into green projects.

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The Globalists’ Race Against Time on China

By David Archibald – Re-Blogged From WUWT

To recap briefly, most of the communist countries collapsed by 1991 and the Western democratic tradition was seen as the winner of an existential battle that had waged since the Russian Revolution of 1917. Historian Francis Fukuyama called it “the end of history” because only good things would happen thereafter. Mankind’s ideological evolution had ended and Western liberal democracy would be the final form of government.

In response to that wishful thinking, Harvard historian Samuel Huntington wrote a paper, and subsequently a book, entitled The Clash of Civilizations and the Remaking of the World Order in which he predicted that with the end of ideological conflict the world would revert to a normal state of affairs characterized by cultural conflict. In particular, Professor Huntington predicted an attack by Islamists on the United States. That attack duly happened five years later. Huntington had identified China and Islam as “challenger civilizations.”

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What Makes This Gold Market Rally Different From All Others?

By Michael Kosares – Re-Blogged From Gold Eagle

1.  It is led by institutions and funds, not private investors. Global quantitative easing created a huge and mobile pool of capital in constant need of a place to call home. As the need for a safe haven became apparent among the stewards of that capital, the demand for gold flourished. The consistent presence of funds and institutions as buyers in this rally, as represented by the growth in ETF stockpiles, is one of its hallmarks and represents one of the major differences between this gold rally and rallies of the past. Though private investors have been late to the game, the rapid development of the physical market for gold coins and bullion in the United Kingdom is testament to the fact that sentiment can change quickly.

2.  Day-to-day price reversals often originate in Asia and Europe, not just the United States.  For decades, the U.S. commodity markets set the tone for gold pricing and the rest of the world was content to follow. Even the old London price fix tended to follow along with trends established in the United States.  That all changed when the Shanghai gold market began offering its own pricing mechanism and the effects of Brexit began to have a profound impact on both sides of the English Channel. Now, price reversals often begin in Asian or European markets overnight and carry over to the open in New York rather than the other way around.  All of this is a reflection of ramped up global investor interest in gold and a leveling of the playing field in terms of who and what influences the price on a daily basis.  As such, it comprises our second important difference between the current gold price rally and rallies in the past.

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Turkey Says Syria Attack Plans Complete

By Reuters – Re-Blogged From IJR

Turkey said on Tuesday it had completed preparations for a military operation in northeast Syria after the United States began pulling back troops, opening the way for a Turkish attack on Kurdish-led forces long allied to Washington.

But U.S. President Donald Trump warned he would “obliterate” the NATO ally’s economy if it took action in Syria that he considered “off limits” following his decision on Sunday to pull 50 American special forces troops from the border region.

The U.S. move will leave its Kurdish-led partner forces in Syria vulnerable to an incursion by the Turkish Armed Forces (TSK), which brands them terrorists because of their links to Kurdish militants who have waged a long insurgency in Turkey.

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Putin Dismisses Climate Messiah Greta Thunberg

By Eric Worrall – Re-Blogged From WUWT

President Vladimir Putin has dismissed Greta Thunberg’s climate crusade, suggesting she has no idea of the cost of what she is demanding.

“I may disappoint you but I do not share everyone’s enthusiasm about Greta Thunberg’s speech [to the UN]. You know, the fact that young people, teenagers pay attention to the acute problems of the modern world, including ecology. That is right and very good. We need to support them. But when somebody uses children and teenagers in their own interests it deserves to be condemned.

Nobody explained to Greta that the modern world is complicated, and complex, and it changes fast. People in Africa and in many Asian countries want to be as wealthy as people in Sweden. How can it be done? By making them use solar energy which is plentiful in Africa? Has anyone explained the cost of it?”

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China or US?

By Alasdair Macleod – Re-Blogged From Gold Money

China has made some silly errors in its conflict with the US, reflecting the arrogance that often afflicts every state actor. But the appearance that China is being backed into a corner over Huawei, trade tariffs and Hong Kong is misleading. China is progressing her own plans, and they do not require an accommodation with America. With Russia in tow, she is now the chief foreign influencer for up to three-quarters of the world’s population, so it is American hegemony that’s being backed into a corner.  One day, this will be reflected in a currency shoot-out. This article concludes that the dollar is more at risk than the yuan, the opposite of perceptions in western capital markets.

Introduction

In the undeclared war between the US and China, the focus has been on the obvious battles. Huawei has been badly wounded but looks like surviving. The trade tariff battle continues and the battle in Hong Kong is ongoing and yet to be resolved.

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