RIDING OIL DOWN
I was following the links from Rawles this morning and read the article on “things American’s don’t know” and the one on how all our physical gold is now in China and other places. I was a bit chagrinned to read the part on the rest of the world not giving two Gott Damns about us as long as we weren’t shooting at them or propping up a meat puppet that was shooting them by proxy. It makes sense, and highlights our own hubris. And makes a lie of my theory that if you moved overseas you would most likely have a target painted on your forehead since your gringo imperialist ass is not very popular. Of course, true or not, you still don’t want to move there if you depend at all on money from Das Homeland. I imagine, all being said and done, as long as you assimilate culturally you will be fine ( I personally am still going with the target theory, but just to stay on the side of extra paranoia ). But what really got to me with the article was our relative unimportance elsewhere. If this is true, and we have no impact on folks thinking, it would seem that we aren’t in charge, nor are we influencing events as we think we are. It follows that all the slight hints as to our decline globally are thus far more advanced than thought.
For many moons, our influence and impact globally has been on the wane. I think we can agree on that. Militarily, since Vietnam. Economically, since we started stripping our manufacturing capacity and went off the gold standard ( and, ultimately, once we were no longer the globes number one oil producer ). But that is old hat. The newest problems are from our Petro-dollar influence being in trouble. Of course, no one wants to believe this because we all know it would spell game over. So we invent lies about energy independence from frac oil ( a 20% increase in domestic production, but still only 5% of our total daily use ). We keep blaming The Seven Sisters for rigging oil prices ( there are less than seven now, of course, but little matter ). But most of the oil nowadays- you know, the stuff that is all our imports except Canadian tar- is controlled by national governments like Saudi Arabia and Russia. The private oil companies have very little influence anymore relative to the 70’s oil embargo. And, as bad as the Federal Reserve Bank is, our owner as a nation ( not the Chinese. Damn, people, we can easily tell any and all creditors to piss off and die. China will not be running our country ), they are only as strong as the assets they control. Yes, they control Europe to a degree. Because Europe aligned with them ( or, depending on who really controls the Fed, we jumped into bed with them ). But go the Petro-dollar, so goes our economy and the Fed.
And it looks like we are losing control of the oil. Not just because of all those nationally controlled oil companies. But because our one and only controlled country, Saudi Arabia, has been in oil production decline for years. They used to pump enough, or not pump enough as the case was, everyone else had to go along. The Saudi’s said, only take Fed Notes for oil, everyone else complied. We didn’t control world oil production, we just controlled the biggest company. But for years now, more and more countries have been entering into barter agreements with each other. They simply bypassed the petrol-dollar. And now China is accumulating more and more physical gold as our banks, those comprising the Fed, just play with paper equivalents. For a time, this made them mega-bucks ( and obviously still is, as witnessed by the recent manufactured Big Dump in its price on our rigged markets ). But one day, as Saudi oil keeps falling along with their influence on the pricing mechanism, the petro-dollar will no longer be a viable note of exchange and China will be ready to step in with real gold backed money. Not to be the world’s next imperial power. Simply to be the one at the head of the line in any trade agreements. The US offers a double edged sword to the Saudi’s. Insist on dollar trade for oil, and we will protect you. Mess with us and we will topple your régime. But soon the Saudi’s will not be the influence they once were, because of too many decades of overproduction ( gee, let’s see. My options are to damage future yield, or to be overthrown in a coup. What shall I do? ).
Look at the map. China only has a small slice of pie to protect to ensure oil delivery. Naval control of trade routes, from the middle east and African production, is easily defended in comparison to American routes. In a world of decline, getting more with less is the winning strategy. And then look at Chinese food production in Africa. Is it really about the food? Or is it about pre-positioning military assets ahead of time, in a non-threatening manner? They have boots on the ground to both feed themselves and assume control of the energy supply. Remember, China is manufacturing for the world on less oil than Americans need to drive from the suburbs to work. They know how to conserve. They can allow North America and Europe to dry up economically and wither, needing far less energy or military assets to ensure their own survival and prosperity. We might think we have the biggest and badest military around, but it sure as crap is less than we need in relation to all our obligations we’ve made to keep us top dog. The fact that the world pays us no mind, despite our number one military and supposed number one economy ( my guess, just fudged numbers to make the masses patriotic and without panic ), tells me we wield far less control than we assume. And soon that will be obvious to you as you live in a cardboard box under a bridge.
All of my links and information: http://jamesmdakin.blogspot.com/2013/05/info-page.html