This is not a bet on oil. This is a bet on US dollar.
The use of dollar as a global reserve currency has enabled America to issue counterfeit portraits of their dead presidents as IOUs that are never actually paid back. While other countries have to pay back their loans, America doesn’t have to because other countries pick up the tab by refusing encash their export earnings and buying US treasuries and other IOUs instead.
Now, one country, Saudi Arabia is taking the first step in unraveling the inverted pyramid built up by America. Or, so it seems. The House of Saud is a creation of British Petroleum aka Rothschilds. The Saudi royal family relies on American troops to impose its will on the country. They are in effect America’s bitch but American Presidents and politicians don’t know that. The Presidential staff deputed from CFR brainwashes the US president and his original coterie that the when Saudis demand it, US needs to bend over. This is why you see everyone from Bush to Obama bending so much (really the photographs don’t lie) when they meet the Saudi King.
US troops are stationed in Saudi Arabia under an arrangement with the Britain. For certain historical reasons, Britain cannot fulfill that role and US being their bitch is happy to oblige. If US withdraws its troops, the House of Saud will be wiped out. The troops on loan from Pakistan will not be of help as they will be immediately put to sword by the locals – Arabians, not “Saudis”.
So, it is perplexing what is happening. Saudi Arabia ran a deficit when oil was above 100. Now, oil is below 50. That means Saudi Arabian government will have to issue IOUs like the Americans or make the American’s pay on their IOUs. They seem to be doing the latter that is expending the reserves.
The crashing oil price has attracted a lot of attention but no one seem to be talking about the 800-pound gorilla in the room – DERIVATIVES. Oil price went above 100 because of futures. A lot of derivatives was tied to the price of oil. Now that oil price has crashed, what happened to the derivatives. Wall Street banks are bankrupt. They have liquid cash only because the private Federal Reserve is issuing money at no interest. The slide in oil price may also be because the Rothschilds are unable to depress the price of gold and oil derivatives are unwinding, which will have its own catastrophic effect soon.
Now, if Saudi Arabia wants to be paid on their American IOUs (treasuries and such), they can’t be issued more American dollars (cash account credits). All countries buy dollars only to pay for oil. Now, if the oil producer does not like to be paid dollars, where does it leave America?
Something similar has happened in Russia too. Russia bought a lot of gold, allegedly more than what they were paid for their oil. That means two countries have rejected the US dollar. Usually, this is followed by a US invasion but in Saudi Arabia’s case, this doesn’t look to be in the offing. At one point, it looked like Iraq would fall to ISISrael and take Saudi Arabia next but ISIS fellers seemed to have bogged down fighting just Syria and are on schedule to fizzle out of energy soon. Is that the best America can do? It is no longer a superpower. Obama, that Kenyan fraud, has thoroughly taken revenge on America – apart from getting it run over by Mexicans. Now, international bankers can bury the US dollar and replace it with a global currency. Not SDRs. SDRs are still based on a basket of currencies. They need to eliminate all national currencies. Let’s crash America and with America crash everyone else. Let’s get it over with. It is a prolonged tragedy that is taking comic proportions with every passing day.