The petrodollar is dead, long live the chaos!

[Mad as Fish]

This perhaps is worth a thread of its own.

Unsurprisingly little was made of an event last Sunday that goes a long way to explain recent global political developments.

The fifty year old agreement between Saudi Arabia and America in which the Saudis pledged to trade oil only in dollars quietly came to an end with no replacement in place.

This is big news, for as part of the deal the Saudis promised to lend its surplus revenues to the US treasury while America promised to provide military support, ie defend the kingdom from all comers. That has now come to an end and the dollar is once again just another currency as far as one of the world's largest oil producers is concerned.

This would explain why Saudi felt free to join Brics and why America is looking to gain control of Ukranian minerals which probably lie below the fields recently purchased by Monsamto et al, land that was released for sale just before war broke out.

The ramifications of, and amazing coincidences surrounding the ending of this deal have yet to be fully revealed and digested, but the world has just lost a major prop for what passed as stability and life is going to be different from now on.

Saudi Arabia ends petrodollar agreement: What it means for the USD, Bitcoin, and gold

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com

 

[Professor]

Ah, so the West is nearly out of it's own oil and it's global suppliers are proving to be difficult if not impossible to contract with?? Hmmmmmm . . .

Better get everyone in EV's if they want to drive to work anymore!!

 

[Mad as Fish]

Ah, so the West is nearly out of it's own oil and it's global suppliers are proving to be difficult if not impossible to contract with?? Hmmmmmm . . .

Better get everyone in EV's if they want to drive to work anymore!!

The west is also out of lithium seeing as how China controls 80% of the world’s supply.

 

[Coal Gas and peat]

I can't help but think the absolute state of the US administration has helped Saudi Arabia come to this decision

 

[Mad as Fish]

I can't help but think the absolute state of the US administration has helped Saudi Arabia come to this decision

Which raises the interesting question of just what measures, if any, were taken by the two countries to renew the agreement and why was a new deal not struck?

But I think you are right to a certain extent, Saudi Arabia was anxious to get out from underneath Uncle Sam's thumb and use its wealth to take a stronger position on the world stage, but is America still contracted to defend the kip? If not, then it releases defence forces for Ukraine while leaving Saudi vulnerable to various middle eastern states that it might not have enjoyed the coziest relationship with while America had its back.

 

[jpc]

Which raises the interesting question of just what measures, if any, were taken by the two countries to renew the agreement and why was a new deal not struck?

But I think you are right to a certain extent, Saudi Arabia was anxious to get out from underneath Uncle Sam's thumb and use its wealth to take a stronger position on the world stage, but is America still contracted to defend the kip? If not, then it releases defence forces for Ukraine while leaving Saudi vulnerable to various middle eastern states that it might not have enjoyed the coziest relationship with while America had its back.

Well Iran and Saudi Arabia have toned down the vitriol of late.
And the arrangements dissolution isn't confirmed, but rumoured.
A bit to go yet with the story.

 

[AUL LAD]

Which raises the interesting question of just what measures, if any, were taken by the two countries to renew the agreement and why was a new deal not struck?

But I think you are right to a certain extent, Saudi Arabia was anxious to get out from underneath Uncle Sam's thumb and use its wealth to take a stronger position on the world stage, but is America still contracted to defend the kip? If not, then it releases defence forces for Ukraine while leaving Saudi vulnerable to various middle eastern states that it might not have enjoyed the coziest relationship with while America had its back.

the young prince is fueled by testosterone and wishes to show the might of the house of Saud who promised a Bently to any pathetic Saudi pilot who could bomb successfully the Yemeni capital .
these peasant Yemenis have taken on Saudi and Israel at the same time --now there's balls for you .
Saudi was always Americas bitch and it hurt as those other Arab countries continually called them out on this and it wounded them .
Russia has stated it will attack western countries where it hurts and cause their economies to fail if they decide to seize Russias sovereign wealth which they did yesterday by stealing 350 billion lodged in western banks by Russias central bank and they have started giving this to Ukraine as a LOAN which they will have to give their minerals to America to repay as they are insolvent --America gets the fabled black earth soil of Ukraine the breadbasket of Europe and its rich minerals for NOTHING as they loaned stolen Russian money for the DEBT ???.
expect to see torpodeos launched against German and English and french oil tankers and the shutting of the Suez canal .
watch economies fold -companies close -- there is not dole for us all --our money is in treasuries WORTHLESS USA TREASURIES we are increadably no 4 in the world in holding these mad bits of paper --this mad little place is the fourth maddest economy on earth .

 

[Mad as Fish]

Not true. We have oil and lithium 'til hell wouldn't have it. The problem is, the walking cadaver who is ostensibly running the show from the White House scuppers leases left and right.

In California, we have immense amounts of subterrenean oil, but the governor won't let us get at it. Lithium though is another story. I live not far from a lake created by accident (agricultural runoff and flooding), and it alone contains a huge store of lithium.

EV's are a shitlib sacred cow, so the lithium from said lake will be drawn out in earnest 'til there's none left. Oil throughout the state though? Not so much.

US has huge lithium reserves, but concerns mount over mining – DW – 12/15/2022

As President Joe Biden courts domestic lithium production for electric vehicle batteries, opposition by affected local communities grows against the impacts.

www.dw.com

The odd pool of lithium here and there will not be making that great a difference I fear -

Control of the resources will consolidate China’s role as effectively the world’s central banker for lithium: it already controls around 80 percent of processing and an increasing share of global mine production.

China’s control and coercion in critical minerals | The Strategist

This is the first of two parts of an article on coercive threats to critical minerals supply and what Australia and its critical minerals partners are doing and should do to counter them. Markets ...

www.aspistrategist.org.au

Lithium is in fact one of the lesser ingredients of battery chemistry, the largest, making up to 28% of the mix is graphite, otherwise known as carbon, so EV's hardly decarbonise transport as claimed.

https://elements.visualcapitalist.com/the-key-minerals-in-an-ev-battery/

 

[jpc]

Which raises the interesting question of just what measures, if any, were taken by the two countries to renew the agreement and why was a new deal not struck?

But I think you are right to a certain extent, Saudi Arabia was anxious to get out from underneath Uncle Sam's thumb and use its wealth to take a stronger position on the world stage, but is America still contracted to defend the kip? If not, then it releases defence forces for Ukraine while leaving Saudi vulnerable to various middle eastern states that it might not have enjoyed the coziest relationship with while America had its back.

Bit more substance to the situation.
It's happening.

 

[Declan]

Not sure about lithium but the US has untold amounts of oil. But why piss it away when it is emptying out all these other shitholes at $80 a barrel.

that is four twenty dillar bills that they just ran off a printing press.

Saudi must be close to being drained and then the royal family better get on a turbo camel and get the fuck out o f there fast