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After Iraq, Libya, Iran now Russia wages Petrodollar War

April 29, 2014

The Ministry of Finance (MoF) on President Putin’s order yesterday accelerated the opening of the St. Petersburg Exchange (SPE), where prices for Russian oil and natural gas will be set in rubles instead of US dollars.

Putin’s order regarding the SPE was in direct response to the US placing sanctions yesterday upon Igor Sechin the CEO of the Russian energy giant Rosneft and a nominated board member of the SPE, and of which Deputy Minister for foreign relations, Sergey Ryabkov, had warned: “A response of Moscow will follow, and it will be painfully felt in Washington DC.”

Sechin, was directly threatened by the Obama regime earlier this month due to his October 2013 remarks at the World Energy Congress in Korea where he called for a “global mechanism to trade natural gas” and went on suggesting that “it was advisable to create an international exchange for the participating countries, where transactions could be registered with the use of regional currencies”.

Sechin, as one of the most influential leaders of the global energy trading community now has the perfect instrument to make this plan a reality with the SPE where reference prices for Russian oil and natural gas will be set in rubles instead of US dollars and could literally destroy the petrodollar.

As we reported earlier already Russia and India are planning to remove the Dollar, meanwhile many speculators believe that the Yuan may already have become a de facto reserve currency. Also to be noted is the epic $30 Billion Oil Pipeline undertaken by Russia, India, China that could shift the Geopolitical balance.

The use of this “Financial Nuclear Weapon” (the sale of oil in a currency other than the US dollar) which was previously deployed by Saddam Hussein, resulted in the total destruction of Iraq, but it failed to deter other countries angry with the highhandedness of the US.

Libya made another attempt and it resulted in the destruction of the country and the brutal murder of its leader Muammar Gaddafi.

Next was Iran. The US and the global financial war party found it much more difficult to isolate and annihilate Iran, even when it was threatened with outright nuclear attack by US and Israel. And in spite of unprecedented sanctions against Iran (which constitute economic warfare and are war crimes in itself), Iran stood defiant.

The leading members of BRICS (Brazil, Russia, India, China and South Africa) Russia and China restrained themselves so as to preserve global stability.

However, the war party faction of the US took such restraint as weakness and went on a spree of regime change throughout the world to undermine the growing strength of BRICS.

The “straw that broke the camels’ back” was the unbridled and reckless coup against the elected President of Ukraine by US and NATO and orchestrated by the US State Department and led by the war-monger Victoria Nuland, who openly admitted that the US had disbursed through such organizations as the National Endowment for Democracy (NED) over $5 Billion to facilitate the coup. Further to this just a couple of days back as reported by Bodhita US backed elite ‘Rape-Murder’ Alpha Squads were captured in Ukraine.

Critical to understand about the current Ukrainian Crisis, is that it has “absolutely nothing” at all to do with either Ukraine or its people, but should be understood for what it really is…a “sledgehammer” the US is attempting to use against Russia to prevent the opening and expansion of the SPE.

By perpetually expanding the US money supply, it’s important to note, America’s standard of living for its elite classes increases as well. The only problem with this situation is that the only way that it can be sustained is if the demand for the dollar and for US debt securities remains consistently strong.

Grasping this last point is extremely important. For if the artificial global US dollar demand, made possible by the petrodollar system, were ever to crumble, foreign nations who had formerly found it beneficial to hold US dollars would suddenly find that they no longer needed the massive amounts that they were holding.

This massive amount of dollars, which would no longer be useful to foreign nations, would come rushing back to their place of origin… America.

Obviously, an influx of dollars into the American economy would lead to massive inflationary pressures within their economic system and collapse it, along with that of the EU too.

It is difficult to overstate the importance of this concept as the entire American monetary system literally hinges on this dollars for oil system. Without it, Washington would lose its permission slip to print excessive numbers of dollars.

With thousands of NATO-backed Romanian troops now moving to the Ukraine border, along with British and French fighter jets now being deployed to Lithuania and Poland to join their recently arrived US military allies, it cannot be ruled out that the US will attempt to start a war with Russia in order to protect their petrodollar scheme.

In spite of the fact that all Russian military forces have returned to their permanent bases and Minister of Defense Sergei Shoigu assured his US counterpart Secretary of Defense Chuck Hagel yesterday during an hour long phone conversation that Russia had no intention of invading Ukraine, Moscow has become increasingly “alarmed” by the combined US-NATO military buildup on its borders that Minister Shoigu called “unprecedented”.

As for the Ukrainian people themselves being used as pawns by the US against Russia in this “petrodollar war”, their lives are quickly turning from despair to outright misery as they are forced to swallow the “bitter pill” being forced upon them by the International Monetary Fund (IMF) which is forcing their fuel and energy costs to skyrocket and taxes being raised on everything from alcohol to tobacco, not to mention the tens-of-thousands of public jobs being made redundant (layoffs and firings) and the nearly 5% cut in payments to pensioners.

Even worse for these “US Pawns”, wages now in Ukraine are, as a rule, not enough to feed a family, and the devaluation of their currency will make it totally impossible for these people to absorb these costs.

On the other hand, Western currency speculators will be able to profit from fluctuations in Ukraine’s currency and multinational corporations stand to benefit from privatization of those state assets that haven’t already been sold off.

It is critically important to note that back in 2008, when the US brought the world to the very brink of total economic collapse, then Deputy Prime Minister Dmitry Medvedev warned that Russia should seize opportunities created by the weak US dollar. “Today, the global economy is going through uneasy times,” he said. “The role of the key reserve currencies is under review. And we must take advantage of it.”

Six years later that is what Putin is doing…nobody can say that they weren’t warned.

Source

Oil Refiners Launch Counter Offensive on Obama’s ‘War on Fossil Fuels’

By Felicity Carus
Published: June 12, 2012

America’s oil refiners are preparing to intensify efforts to press the federal government to drop mandates to encourage the development of advanced biofuels and counter the Obama administration’s “war on fossil fuels.”

The Renewable Portfolio Standard requires that 36 billion gallons of renewable fuel be blended with petroleum-based products by 2022 under the Bush-era Energy Independence and Security Act of 2007.

Five years can be a very long time in US energy politics, said Charles Drevna, president of the American Fuel & Petrochemical Manufacturers, whose members include oil supermajors such as Shell, BP and Chevron.

“RFS2 was really conceived at a different time in the nation’s history even though it was only a few years ago. There was a thought permeating through Congress that we were eventually going to run out of natural resources.

Policy Tools not keeping Pace with Shifting Market Dynamics

“Since then, as a nation we fully understand we’re not an energy poor nation, we’re an energy rich nation with the advent of fracking and horizontal drilling.

“We’ve had this 4-5 year experiment going on which we believe has proved to be a failure.”

The RFS2 demonstrates how quickly the dynamics of the energy industry can outgrow policy, said Drevna, in an exclusive interview with AOL Energy.

“Policymakers haven’t kept pace [with change in the energy industry] and that’s always a problem when you have new technology and entrepreneurship being developed but when you’re forced to apply mandates and uneconomic solutions once they’re passed they’re very difficult to get amended.

“One of our major goals at AFPM is to have Congress and whatever administration it is to take a long hard look at the RFS and come to the epiphany that if we want to limit our reliance on foreign sources of crude oil the best way to do it is to develop our own resources and forget this totally anti-consumer anti-environment anti-common sense approach to national security which is mandating biofuels and renewables.”

At the end of May, Drevna warned the House Committee on Oversight and Government Reform: “The policies of the administration and EPA continue to support a war on fossil fuels that ultimately harms consumers, workers, the economy and our country’s national security.”

AFPM is a 110-year-old trade association which represents 98% of US oil refiners that process 18 million barrels of oil a day with a combined annual revenue of $725 billion.

In April, the US Energy Information Agency forecast that US gasoline demand this summer – usually a peak period – is expected to be the lowest in 11 years, partly due to rising gasoline prices at the pump and more fuel efficient vehicles.

Next month, Sunoco‘s Philadelphia refinery will become the latest in a number of refinery closures which have resulted in a 4% decline in refining capacity in the US since last year.
Overall, gasoline demand in the US declined since the 2008 spike at $147 a barrel and flattened since the subsequent global economic recession, said Drevna.

Biofuels Seen as a Small but Growing Threat

Although advanced biofuels are at de minimis levels of production this year, Raymond James equity research analysts forecast 800 million gallons of production by the end of 2013.

Meanwhile, the 133.93 billion gallons of gasoline consumed in the US last year contained about 12.87 billion gallons of ethanol, accounting for 9% of each gallon pumped into tanks.

Advanced biofuel and ethanol production are unlikely to make too much of a dent in the US liquid fuel market which is expected to sell 186 billion gallons of gasoline and diesel this year.
But AFPM sees mandates on alternative sources of liquid fuels for transportation and chemicals as a direct threat to the industry – and the American economy.

“We don’t think [biofuels] should be mandated whether it’s corn ethanol, biofuels or biodiesel until such time as those products are as efficient, reliable and abundant as gasoline and diesel produced from petroleum,” said Drevna. “Until they are able to compete head to head then let the free market decide, let the consumer decide.

…E15 goes way beyond what makes sense.” – Drevna

“The RFS was based on ideology and political science rather than reality and real science. We believe it needs to be significantly modified to prevent harm to American consumers and the economy.”

But the RFS2 has not been without its problems. Earlier this year, the EPA had to revise down its quota for cellulosic ethanol from 500 million gallons to 10.5 million gallons as advanced biofuels are still at zero commercial production. But refiners were still fined $6.8 million by the EPA – part of what Drevna said was a “hidden tax” for the consumer as costs were transferred to the consumer.

US ethanol producers last year reached saturation point of production for its domestic market as a 10% blendstock in gasoline. EPA’s decision to raise the maximum percentage blend to 15% is potentially dangerous, said Drevna.

A recent Coordinating Research Council (CRC) study found that there are at least 5 million vehicles on American roads which are at risk of failure with 15% ethanol blended fuel.

“We don’t think the EPA has the authority to bifurcate the fuel system. How much corn are we going to use to blend when we have enough oil under our own feet and off our own shores? We’re not anti-ethanol but E15 goes way beyond what makes sense.”

Source

It Looks Like The Newest Country In The World Is Officially At War

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by Adam Taylor

The situation between South Sudan and Sudan over disputed oil fields has been on the verge of blowing up into a full scale war for weeks.

Today AP is reporting that South Sudan’s president has said that Sudan has now declared war on his country.

This could be a big deal, with other African nations and even Sudan’s Chinese allies at risk of getting involved.

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Read more: BI

Hundreds of slaughtered civilians isn’t a "huge number" for Obama

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United States, Washington: US President Barack Obama participates in an interview with YouTube and Google from the Roosevelt Room of the White House in Washington, DC, January 30, 2012. (AFP Photo / Saul Loeb)

Published: 31 January, 2012, 22:08

On Monday afternoon, Barack Obama became the first president to host a virtual town hall live on the Internet.

While that might be a feat worthy of the record books, President Obama did something else during his address that America has become accustomed to: he lied to the world.

Speaking Monday during a live web-chat hosted by Google, the president took on a series of issues submitted by the American people. Over the span of 45 minutes, President Obama addressed the Stop Online Piracy Act while refusing to side with either end of the argument, admitted to the world that he isn’t all that swell of a dancer and took a query from a professional puppeteer. In between ignoring the real issues or offering any sort of solid solution to the nation’s biggest problems, the president did put something rather important out for the world to ponder: America’s ongoing drone missions aren’t really all that bad.

If you ask anyone outside of the Oval Office — or especially America — they might tell you otherwise.

Tackling a question posed on drone strikes, President Obama defended the ongoing missions on Monday, saying they were necessary to target terrorists in a most effective manner. “For us to be able to get them in another way would involve probably a lot more intrusive military action than the ones we’re already engaging in,” the president said on the topic of drones. While an argument could easily be made that operating drone missions in lieu of putting boots on the ground is best for the US Armed Forces, the president put a lot on the line Monday when he downplayed the result of the strikes.

Those drone attacks, carried out by unmanned aircraft controlled thousands of miles away, don’t do a lot of harm, said the president. According to Obama, drones had

 “not caused a huge number of civilian casualties” and he added that it’s “important for everybody to understand that this thing is kept on a very tight leash.”

How small is that not-so huge number? If you ask anyone outside of the American intelligence community, they’ll tell you it is in the hundreds.

But what’s a few hundred civilian deaths, right?

Obama suggested that continuing the drone program would not be detrimental to the safety of foreign citizens, but studies conducted outside of the US say otherwise. Last summer, the UK’s Bureau of Investigative Journalism argued that since America began drone strikes, at least 385 civilians had been executed in US-led attacks. Of those statistics, the Bureau added that around half of the dead were children under the age of 18.

If you don’t take the word of foreign reporter’s, even American intelligence can confirm that the “not a huge number” statistic might be a bit of an exaggeration. One senior US official speaking on condition of anonymity added to CNN last year that CIA drone strikes had taken the lives of 50 civilians in all. As drone strikes go unreported and deaths unaccounted for, the actual number, unfortunately, is probably much higher than what either the CIA or the Bureau of Investigative Journalism can come up with. In a single strike last March, 26 Pakistanis were killed during a US strike over Islamabad. Once all deaths were accounted for, it was revealed that over a dozen of the deaths in that single raid were suffered by innocent civilians.

When the Bureau of Investigative Journalism released their findings last year, they said that the number of civilians killed in US drone strikes were probably 40 percent higher than what the US was actually reporting. Between 2004 and 2011, they put the estimate of civilian deaths at a figure of 385, but added in the research that the toll could actually come close to tallying 775 casualties.

Which, if you ask President Obama, is not a huge number.

If 775 isn’t a huge number, than 56 is practically a fraction. That’s the number of children executed by US drones in the first 20 months of the Obama administration.

“Even one child death from drone missiles or suicide bombings is one child death too many,” responded Unicef to the news at the time.

In 2009 alone, almost 600 civilians were killed on the ground in Afghanistan, and the United Nations put 60 percent of that figure as a direct result of airstrikes, drone or otherwise. In Pakistan, civilians say they are terrified of the robotic planes and the damage that they have already done. “There was not a single Taliban militant in Pakistan before 9/11 but since we joined this war, we are facing acts of terrorism, bombing and drone strikes,” Movement for Justice leader Imran Khan told the press in 2011.

In Libya, where the United States never even engaged in an official war, according to Obama, American troops launched 145 drone strikes in an attempt to oust the regime of Muammar Gaddafi in a matter of months. As with most drone missions, the Department of Defense has not released any official statistics on what casualties were caused by the strikes.

Regardless of what damage a drone strike can have on enemy insurgents, experts say that the toll visited on civilians is several times that of militants. In a 2009 report from the Brookings Institute, Senior Fellow Daniel L Byman wrote that “for every militant killed, 10 or so civilians also died.”

In Pakistan where drone strikes have become practically commonplace, civilians are terrified that they will become the next accidental target of American aircraft. Saadullah, a teenage boy who spoke with a BBC reporter last year, lost both of his legs in drone strikes. Three of his relatives, all civilians, have also been killed by American strikes. Asghar Khan, an elder in Islamabad that also spoke to BBC, said three of his relatives were also shot down in airstrikes.

“My brother, my nephew and another relative were killed by a drone in 2008,” said Khan. “They were sitting with this sick man when the attack took place. There were no Taliban.”

A decade after the US began so-called cooperation with Pakistani intelligence, anti-American sentiments continue to grow as do the number of casualties. “When we intervene in people’s countries to chase small cells of bad guys, we end up alienating the whole country and turning them against us,” counterterrorism expert David Kilcullen tells the Brookings Institute.

Now as the US puts surveillance drones over the skies of Iraq even after that war has officially ended, yet another country is becoming concerned that drones will drop bombs on their own civilians. “We hear from time to time that drone aircraft have killed half a village in Pakistan and Afghanistan under the pretext of pursuing terrorists,” 37-year-old café owner Hisham Mohammed Salah told the New York Times just this week. “Our fear is that will happen in Iraq under a different pretext.”

Under the Pentagon’s new revised budget, the US will phase out around 100,000 military staffers while adding droves of drones to its already established arsenal of robotic planes. Will drones soon become the United States’ not-so-secret weapon and phase out its Armed Forces personnel entirely? It’s not out of the question. After all, a drone strike authorized by Obama last year led to the death of two American citizens with alleged terrorist ties.

Don’t worry, though. Obama says these things are kept on a tight leash. Who actually pulls on that is as good of a guess as anyone’s, though. In November, the Wall Street Journal wrote that the “signature” strikes that account for most of the CIA’s drone missions only end up on the desk of the president after they are carried out. The US must only inform Pakistan of those strikes, by the way, if they believe the death toll will exceed 20.

Which really isn’t that big of a number either.

Source – RT

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