Gold: The Never Normal

By John Ing – Re-Blogged From Gold Eagle

During the Great Depression, stocks lost 90 percent of their value, people lost savings and jobs. Today there are a record 33 million jobless Americans, double the 15 million jobless in the Thirties or 25 percent of the population then. And today, there are long food lines that rival those of the Great Depression. Yet looking at the stock market and its robust snapback rally, the juxtaposition between the comeback and an economy in freefall is contradictory. Of interest is that at the onset of the Great Depression, stocks actually rallied 50 percent, before losing 90 percent of their value three years later. And, looking for clues about the future from the bond market is futile given the Fed’s dominant presence. While there are similarities, they are differences.

Yet few are putting forward the consequences of the inexorable rise in debt to save the world and fewer are looking at a “never normal” future.

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Weekly Climate and Energy News Roundup #403

The Week That Was: March 21, 2020, Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project (SEPP)

Quote of the Week: “There must be no barriers to freedom of inquiry… There is no place for dogma in science… And we know that as long as men are free to ask what they must, free to say what they think, free to think what they will, freedom can never be lost, and science can never regress.” – J. Robert Oppenheimer [H/t Paul Redfern]

Number of the Week: 365.2422 days.

Fiasco in the Making? Writing in Stat, epidemiologist John Ioannidis of Stanford University emphasizes the need for solid data to address the coronavirus disease, Covid-19. Ioannidis is co-director of Stanford’s Meta-Research Innovation Center, which is dedicated to improving the quality of scientific studies in biomedicine. He writes:

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US Responds to Oil Price Crash by Topping Off the Tank

By David Middleton – Re-Blogged From WUWT
Trump says U.S. to buy oil to fill up the Strategic Petroleum Reserve
By Myra P. Saefong

President Donald Trump announced Friday that the U.S. will buy large quantities of oil to fill the country’s Strategic Petroleum Reserve. “We’re gonna fill it up. It’s a good time to fill it up,” Trump said at a press conference, during which he declared a national emergency to access additional aid to cope with the spread of COVID-19. As of March 6, the SPR held a total of 635 million barrels of crude oil. Its current storage capacity is 713.5 million barrels.

[…]

Market Watch

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Weekly Climate and Energy News Roundup #402

The Week That Was: March 7 / 14, 2020, Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project

Quote of the Week: “Aqueous vapor is a blanket, more necessary to the vegetable life of England than clothing is to man. Remove for a single summer-night the aqueous vapor from the air which overspreads this country, and you would assuredly destroy every plant capable of being destroyed by a freezing temperature. The warmth of our fields and gardens would pour itself unrequited into space, and the sun would rise upon an island held fast in the iron grip of frost.” – John Tyndall (Heat: A Mode of Motion, 1861) [H/t William Happer]

Number of the Week: 15,000 parts per million (ppm) v. 400 ppm

Freeman Dyson: When mathematician, physicist, and philosopher Freeman Dyson died on February 28, the world lost an exceptionally brilliant humanist. Writing in the Quadrant, Australian Tony Thomas based his comments, in part, on an extensive interview by philosopher Arnis Rītups in the Latvian Journal Rigas Laiks. The interview gives an indication of the depth and extensive interests of Dyson. It is appropriately subtitled:

“Somehow the universe has a tendency to be as interesting as possible, more and more diverse, more and more interesting.”

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Weekly Climate and Energy News Roundup #391

The Week That Was: December 21, 2019, Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project

Quote of the Week: “Collective fear stimulates herd instinct, and tends to produce ferocity toward those who are not regarded as members of the herd.” ― Bertrand Russell, Unpopular Essays

Number of the Week: 1/1,000,000,000,000 (One part per Trillion)

The Greenhouse Effect – With Clouds: The CO2 Coalition has published a paper by Richard Lindzen addressing climate sensitivity trying to explain why US climate models do so poorly when tested against observations from nature. Until climate models can describe what is occurring in the atmosphere today, there is no reason to accept projections / predictions from such models about the future. Lindzen’s approach to the problem is different from those by Wijngaarden & Happer, and Roy Spencer discussed in the previous two TWTWs.

Among other things, Lindzen includes the influence of high-level cirrus clouds, which form above the tropopause, where water vapor freezes out. As Lindzen states:

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US Becomes A Net Fossil Fuel Exporter

By Chris White , From The Daily Caller– Re-Blogged From WUWT

The United States notched the country’s first month of exporting more petroleum products than it imported, according to newly released federal data. The news comes as Democratic presidential candidates campaign on nixing fossil fuels.

The U.S. exported roughly 89,000 barrels of fossil fuels per day during September, according to data the Energy Information Administration (EIA) released Nov. 29. That’s the first full month the U.S. has exported more than it imported since the U.S. began tracking such data in 1949.

A decade-long increase in fracked gas production is fueling the numbers. Former presidents Jimmy Carter and Barack Obama, among others, spent years promising to make the U.S. energy independent. Presidential candidates from both parties made similar pitches throughout the years.

“This is a very big deal, not just rich in symbolism but marking a major and tangible benefit to the U.S. economy,” Daniel Yergin, vice chairman of IHS Markit, told reporters Tuesday. He authored a book “The Prize” in 2008 that fleshed out how big oil became a dominant form of energy.

He added: “It’s the end of an era that began with the oil crises of the 1970s.” Yergin was referring to the decade when Middle Eastern countries and giant oil cartels used their oil reserves as a weapon against Western nations.

The recent uptick in exports came as fracking of shale deposits stretching from Texas to New Mexico exploded over the last decade.

“Shale completely turned it around,” Yergin said. “The world has never seen growth at this scale this fast. It’s almost as though, in number of barrels, that the United States added a second Saudi Arabia within its own borders.” Obama can also claim some responsibility for the export uptick as well.

The former president signed legislation in late 2015 ending the decades-old ban on crude oil exports. U.S. oil production doubled between 2009, when Obama took office, to 2016, while natural gas production shot up 50 percent in that time. The boom took place on state and private lands.

Imports from OPEC fell to 1.5 million barrels per day in March, which is the lowest level since March 1986, the EIA reported in June. EIA said at the time that OPEC imports fell “as domestic crude oil production has increased.”

The U.S. became the world’s largest producer of fracked natural gas in 2012, surpassing Russia. Natural gas also passed coal as the country’s leading source of electricity in July 2017.

Meanwhile, many of the 2020 Democratic presidential candidates are campaigning on bludgeoning the oil industry.

Sen. Elizabeth Warren, for instance, introduced a bill in October that would, if passed, block construction on ports that export natural gas.

The Massachusetts Democrat pegged her 2020 presidential campaign on holding oil companies responsible for supposedly contributing to global warming. Warren has not responded to the Daily Caller News Foundation’s request for comment on her campaign’s anti-oil positions.

Sen. Bernie Sanders of Vermont is also campaigning against the oil industry.  “What we have to do is tell the fossil fuel industry that their short-term profits are not more important than the future of this planet,” he said during the fifth Democratic debate.

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Weekly Climate and Energy News Roundup #379

The Week That Was: October 5, 2019, Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project

Quote of the Week – “Man, once surrendering his reason, has no remaining guard against absurdities the most monstrous, and like a ship without rudder, is the sport of every wind. With such persons, gullibility, which they call faith, takes the helm from the hand of reason and the mind becomes a wreck.” —Thomas Jefferson (1822)

Number of the Week: Almost 64%


 

Contradiction in Studies: The latest report of the UN Intergovernmental Panel on Climate Changes, The Ocean and Cryosphere in a Changing Climate, contains many dire warnings of alarming sea level rise from oceans warming much faster than “previously thought” and Polar Ice melting much faster than “previously thought.” Of course, who “previously thought” what is not clear, though the word previously surely refers to a time when the “science was settled.”

In the approved Summary for Policymakers of the IPCC study are numerous graphs showing dire sea level rise of almost 5.5 meters (18 feet) by 2300 – 280 years from now.

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The Coming Middle East Oil Crisis: The Collapse Of Net Oil Exports

By SRSrocco – Re-Blogged From Silver Phoenix

The Middle East is heading for a crisis in its oil industry.  Unfortunately, the market doesn’t realize there is any danger on the horizon because it mainly focuses on how much oil the Middle East is producing rather than its exports.  You see, it doesn’t really matter how much oil a country produces but rather the amount of its net oil exports.

A perfect example of this is Mexico.  As I mentioned in a recent article, NEXT OIL DOMINO TO FALL? Mexico Becomes A Net Oil Importer, Mexico is now a net importer of oil for the first time in more than 50 years.  Furthermore, the IEA – International Energy Agency, published in their newest OMR Report that Mexico is forecasted to lose another 170,000 barrels per day of oil production in 2019.  Thus, this is terrible news for the United States southern neighbor as it will have to import even more oil to satisfy its domestic consumption.

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America is Set to Surpass Saudi Arabia in a ‘Remarkable’ Oil Milestone

By Matt Egan – Re-Blogged From CNN Business

Move over, Saudi Arabia. America is about to steal the kingdom’s energy exporting crown.

The United States will surpass Saudi Arabia later this year in exports of oil, natural gas liquids and petroleum products, like gasoline, according to energy research firm Rystad Energy.
That milestone, driven by the transformative shale boom, would make the United States the world’s leading exporter of oil and liquids. That has never happened since Saudi Arabia began selling oil overseas in the 1950s, Rystad said in a report Thursday.
“It’s nothing short of remarkable,” said Ryan Fitzmaurice, energy strategist at Rabobank. “Ten years ago, no one thought it could happen.”

American Energy Boom

By Michael Bastasch – Re-Blogged From WUWT

President Donald Trump touted booming American energy production and exports during his State of the Union Address Tuesday night to thunderous applause, but not from Democrats.

“We have unleashed a revolution in American Energy – the United States is now the number one producer of oil and natural gas in the world,” Trump said. “And now, for the first time in 65 years, we are a net exporter of energy.”

Republicans stood up and cheered the news, while Democrats stayed in their seats. However, Democratic West Virginia Sen. Joe Manchin applauded Trump’s touting of booming American energy production.

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U.S. Set To Pump More Oil Than Russia And Saudis Combined

In a major shift, the United States is set to produce more oil and liquids than Russia and Saudi Arabia combined by 2025.

In Rystad Energy’s base case oil price scenario, US liquids production is forecast to surpass 24 million barrels per day over the next six years, thereby outpacing the combined output from Russia and Saudi Arabia.

oil rigs

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Saudi Aramco CEO: “Not Losing Any Sleep Over ‘Peak Oil Demandʼ

By David Middleton – Re-Blogged From WUWT

If Alexandria Occasional Cortex and the rest of the Green New Deal nitwits only had the mental capacity to understand Amin H. Nasser’s 2018 CERA presentation…

“Lifting the hood on the real future facing the petroleum industry”

Remarks by Amin H. Nasser, Saudi Aramco President & CEO

Good morning Ladies and Gentlemen, and thank you Dan [Yergin] for that kind introduction.

Like all CEOs, I receive many invitations to address conferences.

Naturally, the first thing I ask is: “How will this help Saudi Aramco?”

The second is: “How will this help our industry?”

And the third is: “Will Dan Yergin be involved?!”

So CERA Week in Houston really hits the trifecta!!!

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Weekly Climate and Energy News Roundup #341

Brought to You by www.SEPP.org, The Science and Environmental Policy Project

By Ken Haapala, President

Quote of the Week: “On what principle is it that with nothing but improvement behind us, we are to expect nothing but deterioration before us?” – Lord Macaulay, [H/t Matt Ridley]

Number of the Week: Up to a 50% increase in efficiency?On to Chile: Some seem to be disappointed with the outcome of the 24th Conference of Parties (COP-24) of the United Nations Framework Convention on Climate Change (UNFCCC) in Katowice, Poland, in a coal mining district. Rather than adopting hard, fast rules for the implementation of the Paris Agreement, the delegates adopted vague generalities and promised to do more. Reading through the “bureaucratic speak,” of the concluding remarks by the UN Secretary General, António Guterres, read by Patricia Espinosa, Executive Secretary of the UNFCCC, the stated goals were not accomplished. The Secretary General wrote:

“I’d first like to thank the Presidency of the COP for the enormous efforts it deployed to organize this 24th session in Katowice, Poland.

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US Just Became Net Oil Exporter for First Time in 75 Years

By Bloomberg – Re-Blogged From Newsmax

America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what U.S. President Donald Trump has branded as ‘energy independence.’

The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.

While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.

“Weekly Climate and Energy News Roundup #338

Brought to You by www.SEPP.org, The Science and Environmental Policy Project

By Ken Haapala, President

Quote of the Week: “There is a principle which is a bar against all information, which is proof against all arguments and which cannot fail to keep a man in everlasting ignorance – that principle is contempt prior to investigation.”— Herbert Spencer [H/t William Readdy]

Number of the Week: 42 Billion barrels

Old Science v. New “Evidence Free Science”: SEPP Chairman emeritus Fred Singer is “old school.” He does not make predictions until the facts are gathered, the evidence. Perhaps it was because he began his long professional career by using high altitude rockets to gather evidence about the atmosphere including measuring the energy spectrum of primary cosmic rays; the distribution of stratospheric ozone; the equatorial electrojet current flowing in the ionosphere and publishing the first studies on subatomic particles trapped in the Earth’s magnetic field: radiation belts, later discovered by James Van Allen.

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Texas Oil Surge Threatens OPEC

By Bloomberg – Re-Blogged From Newsmax

The map lays out OPEC’s nightmare in graphic form.

An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.

OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

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David Stockman: ‘Overvalued’ Stocks to Plunge if US Sanctions Saudis

By F McGuire – Re-Blogged From Newsmax

Investment guru David Stockman warns that stocks would take a nosedive if the U.S. imposes sanctions against Saudi Arabia. “I think the market will take a big spill,” he recently told Fox Business Network.

President Donald Trump said Thursday it “certainly looks” like missing journalist Jamal Khashoggi is dead and warned of “very severe” consequences for the killing, Bloomberg said.

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OPEC, Allies Struggle to Fully Deliver Pledged Oil Output Boost

By Thomson Reuters – Re-Blogged From Newsmax

OPEC is struggling to add barrels to the market after agreeing in June to increase output, an internal document seen by Reuters showed, as an increase in Saudi Arabia was offset by declines in Iran, Venezuela and Angola.

The Organization of the Petroleum Exporting Countries and allies agreed in June to boost supply as U.S. President Donald Trump urged producers to offset losses caused by sanctions on Iran and to dampen rising prices.

opec in capital blue letters ato four black barrels on white background

Saudi Crown Prince Causes Mayhem, But Who Replaces Him?

By Pat Buchanan – Re-Blogged From Newsmax

Was Washington Post columnist Jamal Khashoggi murdered inside the Saudi consulate in Istanbul, and then his body cut up with a bone saw and flown to Riyadh in Gulfstream jets owned by Crown Prince Mohammed bin Salman?

So contend the Turks, who have video from the consulate, photos of 15 Saudi agents who flew into Istanbul that day, Oct. 2, and the identity numbers of the planes.

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“The PetroDollar Matrix”

At the forefront of the media’s attention today is Russia. We’re not really sure why, (well, of course we are) but it seems that Russia has become the new boogeyman. Everything is Russia’s fault. I’ve even heard rumors that the National Weather Service has plans to blame Russia for all the confounded rain in the Northeast and Mid-Atlantic this summer. We know – right away you’re thinking this is going to be about Russia but it’s really not. It’s about what the media isn’t telling you. It’s why (we believe), Trump’s Tweets, Ivanka’s Sweets, Russiagate, the left’s hate, the right’s hate (aka, establishment theatre) are all taking the headlines while a very disturbing trend is left in plain sight. It’s the 800-pound gorilla in the room during any discussion involving economics and geopolitics, but nobody wants to talk about it.

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Saudi Arabia’s Vision 2030 Plan Is Too Big to Fail — Or Succeed

Re-Blogged From Stratfor

Highlights
  • Since 2016, Saudi Arabia has been urgent in pursuing its aggressive economic reform efforts, but since oil prices have risen, these efforts have shifted and slowed.
  • Riyadh hopes to grow its foreign investment and private sector activity, but it will struggle as its regulatory environment is continually shifting.
  • Everything in the kingdom, from social practices to regulations, is still tightly controlled by the state, which will continue to invite wariness from investors and Saudi citizens.
  • Though Riyadh may be tapping the breaks on some of its initiatives, this is not a sign that the troubles Vision 2030 is facing are fatal — or even entirely unexpected; rather, they are part of a familiar cycle.
A display promotes Saudi Arabia's Vision 2030 economic reform campaign at the 2017 GITEX technology exhibition in Dubai, United Arab Emirates.
(GIUSEPPE CACACE/AFP/Getty Images)

US Set to Become World’s Top Oil Producer

Re-Blogged From Newsmax

The U.S. government sees oil production further climbing next year even amid transportation logjams in the country’s most prolific shale play.

The Energy Information Administration sees U.S. crude output averaging 11.8 million barrels a day in 2019, up from its 11.76 million barrel a day estimate in the June outlook.

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2018 Third-Quarter Forecast

Re-Blogged From Stratfor

Table of Contents

(ALY SONG-POL/JOHANNES EISELE/HULTON ARCHIVE/MLADEN ANTONOV/TIMOTHY A. CLARY/ABID KATIB/KATJA BUCHHOLZ/DAVID MCNEW/ATTA KENARE/FOverview

China Remains in the U.S. Crosshairs. The United States will impose tariffs, sanctions and blocks on investment and research in a bid to frustrate China’s development of strategic technologies. China not only has the tools to manage the economic blow, but will also accelerate efforts to lessen its reliance on foreign-sourced technological components.

Trade Battles Fall Short of a Full-Fledged War. Trade frictions will remain high this quarter as the White House continues on an economic warpath in the name of national security. U.S. tariffs will invite countermeasures from trading partners targeting U.S. agricultural and industrial goods. As Congress attempts to reclaim trade authority, the White House will refrain from escalating these trade battles into an all-out trade war.

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Ramadan in 2018, a Threat Lens Perspective

Re-Blogged From Stratfor

Key Takeaways

  • Stratfor Threat Lens anticipates an increase in the tempo and intensity of attacks during Ramadan this year, similar to that seen in 2016 and 2017.
  • A confluence of events — including but not limited to Ramadan — will exacerbate the Israeli-Palestinian conflict.
  • The United States opened its new embassy in Jerusalem May 14, coinciding with the day Palestinians commemorate their 1948 displacement from Israel.

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Tiny Bahrain’s Big Oil Discovery Will Boost the Country’s Fortunes – Eventually

Re-Blogged From Stratfor

Highlights

  • Bahrain’s discovery of the Khaleej Al Bahrain oil and gas field has the potential to make a material change in the country’s financial crisis, but there are roadblocks.
  • It will be five to 10 years before production begins in substantial volumes, it will be expensive, and it’s not clear how much of the oil and gas can be recovered.
  • In the meantime, Bahrain will use the long-term potential of increased oil and gas production — and the state revenue that comes with it — to attract new investment.
  • An increase in oil revenue will allow the country to boost some of the social services that it provides to its restive population and reduce the need for painful economic adjustments.

A map shows the location of Bahrain in the Middle East.

(200MM/iStock)

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What Trends We’re Tracking on International Women’s Day

Re-Blogged From Stratfor

The shift from a premodern farming society to a modern industrialized society, for example, hinged on the increased participation of women in the workforce. Many nations today, such as Japan, face demographic decline or economic stagnation. And in order to maintain growth, these countries are being forced to combat the legal and social barriers that have kept women out of the workforce. Even in regions such as the Middle East and North Africa, where women have explicitly been prevented from participating in public life, governments are hoping to encourage growth by embracing reform efforts that incorporate women into their economies.

A woman with the female gender pictogram made up on her face attends a demonstration as part of the 40th International Women's Day on March 8, 2017 in Marseille.

(ANNE-CHRISTINE POUJOULAT/AFP/Getty Images)

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Youth Unemployment: The Middle East’s Ticking Time Bomb

Re-Blogged From Stratfor

Highlights

  • With labor markets in the Middle East and North Africa swamped due to a baby boom, countries in the region will continue to face the acute challenge of massive youth unemployment.  
  • Though each state struggles with its own circumstances, most countries will face daunting hurdles as they try to build strong private sectors. 
  • Even if these states do foster more robust private sectors, they may not be able to mitigate the economic hardship when it hits their citizens, due to the uncontrollable nature of the free market. 

Five million workers are set to enter the Middle East's job market each year, even as gainful employment is in short supply.

(HAIDAR HAMDANI/AFP/Getty Images)

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Resurgent US Oil Industry

By Rick Mills – Re-Blogged From http://www.Silver-Phoenix500.com

Crude oil prices dropped from $110 a barrel in the summer of 2014 to about $30 in January 2016. The effect on oil producers and oil-producing countries was dramatic. The Russian ruble plunged, and the Canadian dollar slipped to below 70 cents US for the first time since 2003, kicking the country into recession and snuffing out the oil boom in Alberta. Many foreign companies operating in the high-cost Canadian oil sands pulled up stakes.

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Finding a Path to a Post-Revolutionary Iran

By Matthew Bey – Re-Blogged From Stratfor

Almost four decades after the toppling of Shah Mohammad Reza Pahlavi, a revolutionary ideology continues to underpin the Iranian state. As the years have passed, the relevance of its governing philosophy risks being lost on the country’s younger generations, and the internal and external challenges to its government continue to mount. The recent spate of demonstrations that quickly spread across the country highlighted one of the revolutionary state’s largest shortcomings: It is a 40-year-old revolution that has not arrived at a sustainable economic model.

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Trump May Push, but Pakistan Won’t Budge

 Re-Blogged From Stratfor

The new year has brought renewed troubles for the already faltering relationship between the United States and Pakistan. On New Year’s Day, U.S. President Donald Trump issued a tweet accusing Pakistan of “lies & deceit” despite receiving $33 billion in U.S. aid for its cooperation in the war in Afghanistan. The next day, the White House announced that it would continue to withhold the $255 million worth of aid that had been earmarked for Pakistan in 2016, citing insufficient action against anti-NATO militants. And on Jan. 4, the White House said it would suspend $900 million in security assistance promised in 2017 and place Pakistan on a list of countries violating religious freedom.

A map shows Afghanistan, Pakistan and the surrounding region.
(LorenzoT81/iStock)

Iranian Protesters Attack Police Stations, Raise Stakes in Unrest

By Michael Georgy – Re-Blogged From Reuters

Iranian protesters attacked police stations late into the night on Monday, news agency and social media reports said, as security forces struggled to contain the boldest challenge to the clerical leadership since unrest in 2009.

Videos on social media showed an intense clash in the central town of Qahderijan between security forces and protesters who were trying to occupy a police station, which was partially set ablaze. There were unconfirmed reports of several casualties among demonstrators.

In the western city of Kermanshah, protesters set fire to a traffic police post, but no one was hurt in the incident, Mehr news agency said.

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In Lebanon, Saudi Arabia Attempts the Impossible

Re-Blogged From https://worldview.stratfor.com

Highlights

  • In the regional competition between Saudi Arabia and Iran, Lebanon is the most recent proxy battleground.
  • Iran’s political and security connections in Lebanon mean Saudi Arabia will have a hard time countering its influence there.
  • Saudi Arabia can wield some financial tools to try to pressure Lebanon, but Iran has the means to cushion some of the impact.

Saudi Crown Prince Mohammed bin Salman

(FAYEZ NURELDINE/AFP/Getty Images)

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The Plan Comes Together?

By Bill Holter – Re-Blogged From http://www.Silver-Phoenix500.com

My original thought was to write further about the left turning on and eating each other. The volume of news, “who” and the timing seemed to indicate something very big coming down. However, another story broke out of the blue this morning from Saudi Arabia that supersedes (though very well may have connections to) the feeding frenzy.

Crowned Prince Mohammed bin Salman had 11 princes and 38 current and former senior officials arrested on corruption and money laundering charges. http://www.reuters.com. Prince Alwaleed bin Talal being the most notable arrested. The thought process of “why” becomes scattered after the initial and obvious thought MBS is consolidating his power after being named as next in line back in June.

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Prospects For Gold Price

By Hugo Salinas Price – Re-Blogged From http://www.Gold-Eagle.com

The Chinese have announced that they have perfected a scheme, to be launched formally in the market by the end of the year, by means of which exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold. This gold will be “sourced” i.e. “purchased” outside of China, for the oil exporters.

Thus, the oil exporters’ Yuan will be offered in payment to the so-called “Bullion Banks” in London, who will provide the gold in exchange for Yuan.

We know that this much is part of the plan.

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Oil Rich Venezuela Stops Accepting Dollars

By Mark O’Byrne – Re-Blogged From http://www.Silver-PHoenix500.com

  • 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?

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Outlook For The Dollar Price Of Gold

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Now that gold has become overbought on Comex, the price is vulnerable to being trashed, yet again, by the too-big-to-fail banks. It is a familiar operation in gold futures markets, where speculators buying contracts protect themselves with stop-losses. All the TBTF banks need is a pause in the speculator’s buying and a little good news (bad for gold). Ideally, the active contract will be running into maturity, so the speculators are forced to put up or shut up: in other words, sell the contract, roll it into another later maturity, or stand for delivery.

Bearing in mind these speculators are running highly leveraged positions, greed turns to fear on a sixpence. The TBTF banks will have supplied the speculators with their longs by going short. From the moment you go long, you are trapped in a trader’s version of Hotel California.

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New Eastern Energy Cartel: Replacement To The Dead Petro-Dollar

By Jim Willie – Re-Blogged From http://www.Silver-Phoenix500.com

The Petro-Dollar is dead. It had served so well for over 40 years in maintaining the USDollar as global currency reserve, while keeping tight the controls on geopolitical power. The link between crude oil and the USDollar has been broken, painfully evident since 2016 with a harsh price decline that cannot rise about the $50 level. It remains stuck below that level despite heavy collusion in a demonstration that OPEC is dead defunct also. A void has been created in the energy sector, a most important sector. Enter Russia & China to fill the void. Both the crude oil market and the natural gas market have new alliances which feature nations acting in a cooperative manner.

The common element is Russia on the production side, complete with pipeline arrays. The common other element is China on the demand side with large customer needs and financial influence. This article describes the two emerging organizations, which the Jackass calls the Oil Consortium and the NatGas Cartel. It will serve the Eurasian Trade Zone. It will function outside the USD payment system. It is ripe for Gold payment structure in the near future. In no way do these qualify as coffin nails for the Petro-Dollar. The funeral for the corrupted abused hegemon USDollar might have taken place with the Trump charade in Saudi Arabia a month ago. The emerging energy organizations signal the new dawn after the funeral without eulogy.

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Gold Price – Crossing The Rubicon

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Gold is challenging the $1300 level for the third time this year. If it breaks upwards out of this consolidation phase convincingly, it could be an important event, signalling a dollar that will continue to weaken.

The factors driving the dollar lower are several and disparate. The US economy is sluggish relative to the rest of the world, the rise of Asia from which America is excluded is unstoppable, geopolitics are shifting away from US global dominance, and the end is in sight for monopolistic payment for oil in US dollars.

These subjects have been covered in some detail in my recent articles, which will be referred to for further clarification where appropriate. This article summarises these trends, and explains why the consequence appear certain to drive gold, priced in dollars, much higher.

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A Conversation With Gerald Celente

By Mike Gleason – Re-Blogged From http://www.Gold-Eagle.com

Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is a well-known trends forecaster and highly sought-after guest on news programs throughout the world and has been forecasting some of the biggest and most important trends before they happen for more than 30 years now. It’s always great to have him on with us.

Mr. Celente, thanks so much for the time today, and we appreciate you joining us.

Gerald Celente (Trends Journal): Thanks for having me on, Mr. Gleason.

Mike Gleason: Well, I want to start out talking about the first half of the year of Donald Trump’s presidency. Trump had an ambitious agenda to get the economy going but hasn’t been able to push any significant legislation through this Congress. How do you see that playing out from here, and what bearing does all this have on the dollar, Gerald, because the greenback has been taking it on the chin here recently?

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Are More Bankruptcies Next for US Shale Oil Drillers?

By Irina Slav – Re-Blogged From Wolf Street

Something that’s been whispered about in the last few months is now being talked about loudly: U.S. oil drillers’ debts. There have been a few notable warnings that shale boomers might want to slow down their production boost lest they bring on another price crash, but the truth seems to be that they can’t do it: they have debts to service.

Now that international oil prices are once again on a downward spiral, drillers are facing a new challenge, according to Bloomberg: their bondholders are no longer optimistic.

Shareholders were the first to start doubting the recovery as it became increasingly evident that OPEC’s production cut agreement is failing to have the effect that everyone—or almost everyone—expected. Energy stocks have generally been on a slide since the start of the year.

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Rebuttal to Environmentalists’ Claims That “Arctic Drilling Revenue Predictions Are ‘Way Off’”

By David Middleton – Re-Blogged From http://www.WattsUpWithThat.com

Why would anyone care what “environmentalists” have to say about potential Arctic oil revenue?  I only care because their “reasoning” is both fun and easy to ridicule.

Environmentalists Say Arctic Drilling Revenue Predictions ‘Way Off’

IULIA GHEORGHIU | JUNE 19, 2017

Conservation advocates believe opening up the Arctic National Wildlife Refuge, America’s largest swath of wilderness, isn’t likely to be the boon to federal coffers that President Donald Trump expects.

Opening up the wilderness region is a perennial issue; bipartisan bills are introduced each Congress to definitively label the area as “wilderness” while industry groups seek to gain access to a section of land that had been designated for oil and gas exploration. Plans have existed since 1980 to use less than 3 percent of the more than 19 million acres of wilderness refuge for oil and gas exploration — but conservation groups argue even that amount is too much.

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Saudi Strikes Back Against U.S. Shale

By Jody Chudley – Re-Blogged From The Daily Reckoning

Here we go again…

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.

Oil prices are falling fast

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Saudi Arabia’s ‘Mr. Everything’ Is Now Crown Prince, Too

Re-Blogged From worldview.stratfor.com

After months of speculation and palace intrigue, Saudi King Salman shook up the kingdom’s line of succession on June 21 by naming his powerful son, Mohammed bin Salman, crown prince and removing all titles from Mohammed bin Nayef, the former crown prince. This is the second time Salman has overhauled the line of succession and the Saudi government since taking the throne in January 2015. The move is a controversial one, considering it cuts large and powerful segments of the royal family out of the succession plan. And should the young bin Salman ascend the throne, it could mean Saudi Arabia will be ruled for six decades by father and son.

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The Middle East Is Blowing Up

By John Rubino – Re-Blogged From Dollar Collapse

Every day brings another scary headline from the Middle East — which makes it easy to treat them as background noise rather than a clear and present danger. But the latest batch is reminiscent of the Balkans circa 1914, which means it may be time to tune back in. Some examples:

A US Navy jet shot down a Syrian warplane. Syria is a Russian client state, so this puts the US and Russia on opposite sides in a shooting war.

Russia warned the US that it takes the destruction of its client’s military assets seriously. It suspended the hot line Washington and Moscow have used to avoid collisions in Syrian airspace and threatened to target US aircraft.

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PetroDollar System In Trouble As Saudi Arabia Continues To Liquidate Foreign Exchange Reserves

By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com

The U.S. PetroDollar system is in serious trouble as the Middle East’s largest oil producer continues to suffer as the low oil price devastates its financial bottom line.  Saudi Arabia, the key player in the PetroDollar system, continues to liquidate its foreign exchange reserves as the current price of oil is not covering the cost to produce oil as well as finance its national budget.

The PetroDollar system was started in the early 1970’s, after Nixon dropped the Gold-Dollar peg, by exchanging Saudi Oil for U.S. Dollars.  The agreement was for the Saudi’s only to take U.S. Dollars for their oil and reinvest the surpluses in U.S. Treasuries.  Thus, this allowed the U.S. Empire to continue for another 46 years, as it ran up its ENERGY CREDIT CARD. 

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Qatar’s Feud With the Gulf States Reaches New Levels

Re-Blogged From Stratfor

Long-standing tensions among members of the Gulf Cooperation Council (GCC) that intensified over the past two weeks have culminated in several Arab governments suspending relations with Qatar. The current crisis has roots in multiple areas in which GCC states do not see eye to eye, including in their attitudes toward Iran, their manifold perspectives on supporting political Islamists and the degree of economic and strategic rivalries among them.

On June 5, Saudi Arabia, Egypt, the United Arab Emirates and Bahrain announced they would suspend diplomatic relations with Qatar, which has long bucked the Saudi line on condemnation of Iran and support for Islamist groups such as the Muslim Brotherhood. Their declarations were followed by those made by the Tobruk-based House of Representatives government in Libya, which has close ties to the United Arab Emirates and Egypt; the Saudi-backed government of Yemen led by President Abd Rabboh Mansour Hadi; and the Indian Ocean island nations of Mauritius and the Maldives, which have close ties to the Saudi and Emirati governments.

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OPEC Proving Cartels Always Fail

By Andrew Hoffman – Re-Blogged From Miles Franklin

In Wednesday’s “historic market manipulation setting the stage for catastrophe,” my principal inference was that, per the time old adage, crime never pays.  Perhaps in the short-term; but the longer a scam is perpetrated, the more vulnerable it becomes to its inevitable demise.  Kind of like Fargo, when the initial plan to ransom Jerry’s wife morphed into a heinous killing spree, resulting in essentially all participating parties dying; as crime, like market manipulation, has significant unintended consequences, which must inevitably be addressed.

Such as, the fact that the historic money printing perpetrated on the world’s 99% by the “1%” bankers has resulted in an unprecedented debt edifice that, to paraphrase JP Morgan yesterday, can NEVER be repaid.  Not to mention, the equally unprecedented oversupply, of everything from commodities, to factories, to government itself – which can only be “repaid” by vast retrenchment, via the historic Depression that shortly, will envelop the entire world.  And oh yeah, the “dotcom valuations in a Great Depression Era” said “historic market manipulations” have created – which must eventually reverse; likely, violently so.  Perhaps one of the increasingly likely “black swan” events will be, as Jim Rickards puts it, the “snowflake that starts the avalanche.”  Or perhaps, history’s largest asset bubbles – and conversely, Precious Metals “anti-bubbles” – will simply collapse under their own sheer weight.

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OPEC ‘No Longer in Control’ of Oil Prices

By Matt Egan – Re-Blogged From http://money.cnn.com

For decades, OPEC’s sway on oil prices was unparalleled.

But the cartel’s immense influence has been dealt a huge blow by the dramatic boom in US shale.

“Saudi Arabia and OPEC are no longer in control,” Douglas Rachlin, managing director at Neuberger Berman’s Rachlin Group, said on Wednesday at the SALT Conference in Las Vegas.

The emergence of US shale as a key global player that can pump even during low oil prices means OPEC can no longer “manipulate prices,” Rachlin said. “The shale revolution has changed a lot of things.”

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Can the U.S. Become the Saudi Arabia of Natural Gas?

By David Middleton – Re-Blogged From http://www.WattsUpWithThat.com

The Department of Energy gave a Texas-based energy company permission Tuesday to export liquefied natural gas (LNG) to countries with which the U.S. does not have free trade agreements.

Golden Pass Products will build an LNG export terminal capable of shipping 2.21 billion cubic feet per day (Bcf/d) of natural gas around the world. It’s the first LNG export terminal approved by the Trump administration, adding to the already 19.2 Bcf/d of exports approved by the Obama administration.

LNG_Energy_Dominance

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Low Oil Prices Continue To Decimate Saudi Arabia’s Currency Reserves

By SR Srocco – Re-Blogged From http://www.SRSroccoReport.com

The low oil price continues to wreak financial havoc on the largest oil producer in the Middle East.  While the Mainstream press has published articles forecasting a rebound in Saudi Arabia’s financial outlook, due to higher oil prices this year, it seems like the Kingdom’s problems are just beginning.

In order to make up for falling oil revenues, Saudi Arabia has been liquidating its foreign currency reserves at a pretty good rate over the past two and a half years.  I discussed this in my article, Bankrupting OPEC… One Million Barrels Of Oil At A Time.  In that article I published this chart:

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