As 'secret Saudi deal' increases harm to Russian currency, China intervenes

[Camilo]

http://www.examiner.com/article/as-secret-saudi-deal-increases-harm-to-russian-currency-china-intervenes

Last Friday it was revealed that the purpose behind Secretary of State John Kerry's visit to Saudi Arabia a few weeks back was to sign a secret deal by which the leading OPEC state would saturate the markets with excess oil and cause prices to fall for the global commodity. This move would have the consequence of causing vast harm to the Russian Rouble, and increase inflation and price instability for the Eurasian state.

However, on Oct. 13 Russia's strongest ally and member nation in the BRICS coalition signed its own deal with the Eurasian power to not only help stabilize prices for the beleaguered economy, but increase direct non-dollar trade with a 150 billion currency swap deal through which Russian Roubles are traded directly for Chinese Yuan. This new deal will have the effect of bypassing the dollar and the the reserve currencies overt effects on the Rouble that is part of the ongoing proxy war between America and the East, and also mitigate some of the consequences of the secret Saudi oil program.

China is ready to export agricultural products and oil and gas equipment to Russia, China’s Vice Premier Wang Yang stated Saturday.

"China is willing to export to Russia such competitive products as agricultural goods, oil and gas equipment, and is ready to import Russian engineering products," Wang Yang said during the 18th session of the Russian-Chinese Commission for the Preparation of Regular Meetings of the Heads of Governments.

And the cherry on top came moments ago when, as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations. - Zerohedge

The significance of this deal is two-fold. First, by allowing for Russia to have direct trade between themselves and China in their own national currencies, Russia can mitigate some of their escalating price inflation within their country that is a direct result of Saudi Arabia's overt actions to drive down the price of oil. Secondly, by facilitating the purchasing of Chinese products without the use of the dollar as a middle-man, Russia puts even more pressure on Europe who is hemorrhaging trade that had been a mainstay between the EU and Russia, and which is now accelerating Europe's path into recession.

As long as oil is denominated in dollars in the global market, the U.S. can and will use its control over the petro-dollar and reserve currency to inflict economic war against any and all nations that do not cede to American national policies. And with the U.S.'s current desire to escalate chaos in both Ukraine and Syria, and to keep Russia out of the picture and unable to protect their new and long-standing allies by disrupting their economy and currency, today's intervention by China may be the key in allowing Russia to stabilize prices within their economy, and to inflict greater harm to America's allies who still are beholden to dollar denominated trade.

[joeecho]

Chicken or the egg?

http://inventionaddict.com/wp-content/uploads/2009/12/chicken-and-egg.gif

Is it saturation of oil in the market or a down turn in the global economy?

[Baby Steps]

The Russian government has a break even at about $100 per barrel. This form of pressure was used in 2008.

[Carmody]

It is ludicrous to have a break even point of $100 per barrel, as $100 per barrel in today's market demand and resources, is a farce.

it could be dropped to $50 a barrel.... and production and use doubled... and there would be no problem fulfilling that demand. Even for a hundred years.


Except for the ONE thing, and it's a lie, a falsification that is purposeful: refining capacity is kept artificially down, as is access in wells, etc.

This is done to keep the price high, to yank the chain of control in both the globe and the individual.

Oil is not a resource, it is a weapon, of control.

To think that Russia operates in a $100 per barrel environment is again, ludicrous. That cannot be anything but contrived.

This game appears to have multiple faces and Russia has to be directly involved in some manner.

Kerry is skull and bones, and his doing this has the feel of making sure that the US and western downturn in general, is as vicious as is possible. This appears to be about accelerating the break point in intensity and in closeness in time.

While the USA/western population may get a gasoline price break, like a cookie in their lunchbox, it is a false easing.


In essence, we're talking about the fascists who financed the Nazi's, and took them back in when their "war" ended.....where the Saudi's are also cut from the same fascist cloth and connections.

[Baby Steps]

It is ludicrous to have a break even point of $100 per barrel, as $100 per barrel in today's market demand and resources, is a farce.

it could be dropped to $50 a barrel.... and production and use doubled... and there would be no problem fulfilling that demand. Even for a hundred years.


Except for the ONE thing, and it's a lie, a falsification that is purposeful: refining capacity is kept artificially down, as is access in wells, etc.

This is done to keep the price high, to yank the chain of control in both the globe and the individual.

Oil is not a resource, it is a weapon, of control.

To think that Russia operates in a $100 per barrel environment is again, ludicrous. That cannot be anything but contrived.

This game appears to have multiple faces and Russia has to be directly involved in some manner.

Kerry is skull and bones, and his doing this has the feel of making sure that the US and western downturn in general, is as vicious as is possible. This appears to be about accelerating the break point in intensity and in closeness in time.

While the USA/western population may get a gasoline price break, like a cookie in their lunchbox, it is a false easing.


In essence, we're talking about the fascists who financed the Nazi's, and took them back in when their "war" ended.....where the Saudi's are also cut from the same fascist cloth and connections.

See below article. The Russian state is heavily dependent on revenues from its oil industry. This would probably be in the main by Corporate taxes on profits which are highly price sensitive. If the price sinks below approximately $100, the state's revenue will fall . They cannot simply open the taps as the international oil industry, OPEC or not is a cartel, that TRIES to keep the price up by balancing supply to demand. The Saudis would retaliate by opening their taps, and demand is low due to USA fracking and the China slow-down. The way it operates is that the USA's 'big stick' is that they can persuade Saudi to pump oil in excess. The Saudis have the lowest cost per unit & can make money at $20 or so I believe. The shock to Russia would be great. We know the stresses that western economies have felt from stagnant Government revenue. This would be far worse, as Russia is already suffering from sanctions. Putin's position is strong, but economic melt down will hurt him. I am not saying it would drive him to war but it is very destructive. It reminds me of the deliberate oil embargo on Japan that drove them to attack in 1941.It is very dangerous to put a leadership into the position where their survival is aided by stoking confrontation!

Of interest is also the fact that alot of North American oil is quite expensive to extract, so to what extent will this hurt US production? Will Obama try to subsidise it in some way?

http://oilprice.com/Energy/Crude-Oil/Putin-Plays-Down-Russias-Deadly-Dependence-on-Oil-Gas-Revenues.html

[sigma6]

Hah, great catch... I suspected something rather odd in the Saudi response... Oh this time were just going to let the market operate without intervention! WTF! Yeah right... since when was the last time anyone stopped manipulating the market!!?? But this makes perfect sense, but also exposes the desperation of the West (again)

And actually Canada would be hit harder, and probably has the most expensive (and environmentally filthiest and destructive) oil production costs on the planet... and I see this as a potential underhanded shot at China as well since they just bought in to an oil patch, and all of a sudden, there appear to be "terrorist like" events occurring in Alberta (very strange) all affecting that industry, i.e. train derailments, gas explosions, power grids going down, all out of the blue... very bizarre...

Kerry... what a double crossing dirty f***er, no doubt genetically related to the Royal families, the guy just reeks of "dirt bag" scumbaggery, and right in the public face... what an unbelievable one man farce that guy is... just makes me root for the Russians all the more... where is the decency with what is going on in the West?... Nothing has changed with these cut throat, highway robbers... money is money... power and control at all costs, whether it is infecting Africans with Ebola to offer them "loans" or killing 20,000 Japanese to force them to slow down their competitive productive lead or increase their oil dependence... all I see is pure evil scum sucking bottom feeders ..... Aaaaaaaaahhhhhhhhhhh!!!!

I also see a false attack on the whole planet, ironically this hurts and weakens EVERYONE, except maybe the US, if they have secret oil in Alaska and their 90 day reserves stockpiled (depending on how far ahead they planned)

As usual it's the Crime Syndicate infested US/Banking Cabal, which means this is coming from the Vatican/Inner City of London, that is derailing the world economy right now, like cornered rats, who know they are about to be "whacked" with the shovel... (as soon as I can get a close enough shot!)

[TargeT]

I also see a false attack on the whole planet, ironically this hurts and weakens EVERYONE, except maybe the US, if they have secret oil in Alaska and their 90 day reserves stockpiled (depending on how far ahead they planned)

As usual it's the Crime Syndicate infested US/Banking Cabal, which means this is coming from the Vatican/Inner City of London, that is derailing the world economy right now, like cornered rats, who know they are about to be "whacked" with the shovel... (as soon as I can get a close enough shot!)

Alaska does have oil, and it's not hidden or secret, it's in Anwr


In 2013, the United States consumed a total of 6.89 billion barrels of petroleum products, an average of 18.89 million barrels per day.1 This total includes about 0.32 billion barrels of biofuels.
http://www.eia.gov/tools/faqs/faq.cfm?id=33&t=6


In 1998, the U.S. Geological Survey (USGS) examined ANWR's coastal plain, specifically Area 1002, to estimate the amount of technically recoverable oil. Based on the geology, the USGS projected that there could be anywhere from 5.7 billion to 16 billion barrels of oil (average = 10.4 billion barrels).
http://science.howstuffworks.com/environmental/energy/anwr2.htm

Now the pipe line can "only" handle its theoretical maximum capacity of 2.14 million barrels per day (http://en.wikipedia.org/wiki/Trans-Alaska_Pipeline_System) so essentially at maximum output it could run for 8,000-3,000 days (21-8 years) on JUST the Anwr fields we know (discounting completely all the other already producing fields and the off coast GOLD MINES that exist).

Since this would only supply 10% of our daily needs we would depend on other US producing areas also, however this seems to already be ramping up (perhaps in preparation for some oil hurtin moves?)


According to the EIA, the U.S. Department of Energy’s statistical arm, U.S. crude production will reach 8.46 million barrels a day this year and 9.28 million in 2015, the highest annual average since 1972.
http://business.financialpost.com/2014/08/26/how-north-american-production-has-helped-bring-calm-to-oil-prices/?__lsa=81f0-0601


Basically: we are playing dirty.

[sigma6]

Basically: We are playing dirty

LOL... isn't it refreshing to speak plainly... things are so much simpler!...

I think it follows that "psyops" and false flags and other forms of propaganda are being so overplayed in every facet of society, they will eventually hit a diminishing point of return that eventually becomes a negative...