The End of OPEC
|May 23, 2014||Filled under Other News|
OPEC News –
There have been two important factors in the world of geopolitics which have been on a collision course since the early 1970′s. These two run away trains have built up so much momentum that when they inevitably meet, the crash will shake the very foundations upon which the global economy is built.
Over the last few years the rumblings have been increasing at a steady and deeper pace. The news this week of the gas deal between Russia and China, as well as the deal between the two countries banks to settle in each others domestic currencies, are both the latest and deepest evidence of this approaching collision.
One of the direct results of this collision will be the dissolution of the oil cartel OPEC. Once again a pattern emerges and we see that micro and macro are interwoven in a dance of timeless consistency.
In 1911 the Rockefeller controlled Standard Oil was ruled an illegal monopoly and it was dissolved into 33 different companies. John D. Rockefeller, who became even more wealthy from the dissolution didn’t complain and quickly went to work on the continuous expansion of the empire of oil.
Today OPEC is universally referred to as a cartel. Russia openly refuses to accept OPEC or its structure and China is courting Saudi Arabia away from the American hemisphere. Or perhaps its the other way around.
OPEC, like the IMF and BIS, is not an American institution but was developed by the same banking interests that took control of America in 1913. The intent was to set up a system by which the Petrodollar scheme could be supported and encouraged.
It appears we are entering the last days of the U.S. Petrodollar and its at the end of this timeline where the penultimate collision and collusion will take place.
Modernization has progressed in the emerging economies at a breathtaking speed. Each country has modernized faster than the one before it, with Vietnam now in the lead for the fastest modernization.
This modernization has put tremendous pressure on the global energy markets. This pressure has allowed non-OPEC producing nations to export their oil and gas into the emerging economies and since the early 1970′s countries like Canada and Vietnam have become net exporters of energy.
Though both countries have remained under the U.S. dollar influence, (Vietnam being a dumping ground for dollar inflation, and Canada selling its oil and gas to the U.S. for market grade processing which is than sold back to Canadians at exorbitant prices) there is a growing awareness that things are going to shift.
This shift will be towards an SDR commodities exchange where oil, gas, gold, silver, rice, wheat, etc, will all be priced in the Special Drawing Right. Though the SDR will not be backed by commodities itself.
It is more likely that the currencies in the SDR basket will be partially supported by commodities and this will in turn create the value from which the SDR’s rate will be set. With that in mind, we watch for the inclusion of the renminbi into the SDR basket as the preceding event to a complete move away from the U.S. dollar in global trade.
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