Enter The NatGas Cartel

Enter The NatGas Cartel by Jim Willie – Gold Seek

The King Dollar is mortally wounded. Many notice but the masses seem largely unaware. Since 1971, the Gold Standard has been removed from its anchor position. But since 1973, the Petro-Dollar has taken its place. It has called for crude oil sales led by the Saudis and OPEC to be transacted in USDollar terms, for oil surpluses to be stored in USTreasury Bonds, and for some kickbacks from the Saudis to the USMilitary complex for weapons purchases. Of course, the US is ready willing and able to create strife and to foment wars whereby the Arab oil monarchs will need more weapons. Since 2014, many events have pointed to the crippled condition of the important link between the USDollar and crude oil. The price has plunged by 50% of more, and not recovered. It is currently lurching in the nether bounds near the $45 level. Anything less than $65 to $70 per barrel is very dangerous for keeping the oil sovereigns afloat and for keeping the US energy sector solvent. Witness the Wall Street banks having tremendous problems with impaired bonds and toxic energy portfolios. They seem not resolvable. They cannot keep the oil price over $50, a sign of their impotence.

Not enough financial analysts connect the new normal of a much lower crude oil price with the eventual vanishing act of the Petro-Dollar. The Wall Street banks are deeply exposed on their entire energy portfolios, which include both bonds and commercial loans. Tens of $billions will have to be written off as loss, beyond the $billions already declared as losses. These corrupt banks have worked their magic to lift the oil price above the $50 level, but failed. They worked the task for over a year, but failed. They need an oil price over $60, but failed. The Saudis did not help the cause, by their ongoing extra output to finance their filthy Yemen War. The Saudis earned the anger of their OPEC partners, especially the Gulf Arab allies. The Wall Street banks deeply resent the Saudis for this deed, but the USMilitary complex loves the Saudis. The other Arab oil producers also harbor consider rancor toward the Saudis, who really have no friends in the entire Persian Gulf region. They are so worthy of a palace coup, which would bring clamors of rejoicing in many corners of the West if it were to occur. The day might be close.


The Saudi warrior prince just made more enemies in-house with the push to become crown prince. The dozens of half-brothers will plot against him. Many analysts believe an internal collapse in Saudi-land cannot occur, due to control by the royals of the key factions like the military and religious center. Keep in mind that bankruptcy has a way of sweeping factions aside. A failed ARAMCO stock deal could trigger some internal battles, and reveal the bankruptcy in addition to the lies on national oil reserve wealth.The kingdom’s bankruptcy could become a major topic soon, as the Jackass has been harping on. Be on the lookout for a strange suspicious death event for the king, which could trigger violent episodes from rival half-brothers, many of whom have had their families cut out of wealth distribution (confiscation) for decades.


The Petro-Dollar is a dead standard. The important functional parts, such as the derivative machinery, have been dismantled over the last four years. A key hint on the massive rift between the US and Saudis was the contrived legal prosecution cases with the big Swiss banks. It seems the Swiss simply bent over and took it in the rear flank from the Washington NeoCon criminals. No precedent exists for the USGovt to sack control of a sovereign nation’s big banks like what happened with UBS and Credit Suisse. Pay no heed to the formal charges of tax evasion and Iran sanction violations. These were pretexts for stealing the Arab gold in Swiss bullion banks. Notice that a year later, the Saudis worked to move hidden gold hoards into the safe confines of Deutsche Bank. The threads are complex, since the Qataris pulled their funds out of D-Bank, thus rendering it more exposed. Some of the most convincing evidence of a dead defunct Petro-Dollar is the multiple fronts of war to defend the USDollar. Back in 2005, the Jackass wrote often about how in several years the King Dollar will be defended by war. It is here.


Right here, right now, the numerous hot spots rage with war, sanctions, and boycotts within the Arab monarchies. The Jackass regards sanctions as a clear indication of failed foreign and economic policy. A crystal clear observation is that unity behind the USDollar is gone. The failure of the Petro-Dollar is a signal to all countries to bail out on the USD and to find a better linkage for commerce and banking. The Eurasian Trade Zone does precisely that on both fronts.


The recent events within the Gulf Region have been extremely disruptive. Clearly the region is permanently fractured. The battles between the Saudis and Qataris date back to conflict over the Muslim Brotherhood and events in Egypt. The conflict has many sides which continue to erupt. It seems that the Qataris have taken the cultural lead over the Saudis in areas of education, symphonies, and media. The ISIS guerrilla element also complicates the relationship. The Saudis and Qataris support rival guerrilla groups. The ISIS organization is a creation of Langley and Mossad, of the USGovt and Israeli Govt, for the purpose of conducting proxy wars and instilling terror on the Syrian front. Russian President Putin conducted a Powerpoint Presentation of the vast financial links from Washington and Israel via the Swiss banks to fund ISIS groups, all done as a sideshow to a G-7 Meeting last year. It was as intriguing as it was shocking, but not covered by the lapdog Western Press. Their changed names and multiple groups only add to the confusion, which pleases both Washington and their controllers in Israel. Soon the truth will come out that not only is the war over the competing natural gas pipelines, but over huge Leviathan energy deposits which extend into the Golan Heights. This territory is hotly disputed for 20 years, originally Syrian land, but taken by Israel. It contains a huge amount of oil & gas.


It is a mere hop skip and jump for the Saudis to invade Qatar. They could possibly receive USMilitary aid easily, since the US maintains a big military base in the tiny emirate. The invasion would be unprecedented within the Arab world, ever since Saddam tried to overrun Kuwat two decades ago. The unmentioned issue in the Western Press is that Qatar battles with the Saudis for competing natural gas pipelines. The pipeline conflict lies at the core of the entire Syrian War, but never is it mentioned. The site of the battle is Syria for its pipeline crossroads. The press refuses to mention energy pipelines, and surely refuses to mention that Israel lusts for full control of the giant Leviathan energy deposit in Syria, primarily located in the Golan Heights.

Saudi Arabia tends to disrupt all Arab natural gas pipelines in favor of crude oil supply.

Qatar is a leading LNG producer, and Saudi Arabia does now want Iranian natgas competition. Russia supports the Iran pipeline, while the United States supports the Qatar pipeline. The ISIS guerrillas are in the mix, run by the Langley and Mossad offices. The rest is noise. The story is incredibly complicated, very difficult to comprehend, and made more confusing by the press which lies and distorts on mostly every aspect of the story.

Observe an unprecedented move designed to punish one of the region’s financial superpowers for its ties with Iran and Islamist groups in the region. Saudi Arabia cited Qatar’s support of terrorist groups, aiming to destabilize the region. The pot calls the kettle black in this case, in truly laughable manner. The ISIS groups include the Muslim Brotherhood, Islamic State, Daesh, and al-Qaeda. The reality is that several ISIS guerrilla groups operate in Syria and Iraq, which are at odds. The comedy seems to be a battle of whose terrorist groups are better and more honorable, when none preach any Muslim religious tenets at all, just theft, profit, rape, violence, and pilferage. An alarming but true factor is that the ISIS guerrillas actually recruit men, with the promise of permitted rape of women under their protection in the captured towns. The Western Press does not mention this either, while they feature the false video events of beheadings (with no blood squirts).


The over-arching issue is the pipeline, since the potential source of tremendous income at a time when the crude oil decline has rendered great harm to all Gulf nations. The object is supplying energy to Western Europe. The battle has amplified since the United States created a dead buffer zone in Ukraine, blocking Russian Gazprom natgas supply from reaching Europe. The Russians reacted by diverting the pipeline construction process through Turkey, with some delays. The leaders in Ankara are more than willing to cooperate, since the US-led failed coup attempt in 2016 emboldened Turkish President Erdogan. The USGovt must be frustrated and angry that every since foreign policy initiative since 9/11 has been a miserable failure. It does not stop them from making the next mistake, since they learn nothing. Arrogance, corruption, and aggression are a bad mix.

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Gold Seek

Various authors presenting analysis and commentary on the precious metals, economy and precious metals mining markets.