[Keep the above map in mind while reading the following articles. Mr. Larry]
A. Syria, Pipeline Politics, OPEC & the USDollar
30 Aug 2013, Gold_Eagle.com, by Jim Willie
Pasted from: http://www.gold-eagle.com/article/syria-pipeline-politics-opec-usdollar
“Syria is about the last gasp for the Petro-Dollar, the emergence of energy pipeline geopolitics, the rise of the NatGas Coop, the new dominance of Russian Gazprom, the eclipse of OPEC, the fall of the house of Saud, and a grand adjustment process in global commerce and banking. Refer to trade settlement outside the USDollar and diversification away from USTreasury Bond reserves management. It took some time to realize it, but the Cyprus bank incident was a misdirected attack against Gazprom. It failed. The entire Arab Spring movement, an ambitious disruptive project waged with foolhardy ambitions, has turned on itself. Egypt fell, its US puppet discharged. The entire North African region will be in flames soon. The USGovt interfered with a grand industrialization project for European industry, to be placed on North Africa intended to take advantage of cheaper labor, available minerals, nearby resources, and easy shipping. The resentment of Europe will show up in the future. The Middle East and Persian Gulf region is shifting its salute to Russia & China, as the noisy sectarian battles have been a common fixture since long ago. Bahrain has erupted. Saudi is clamping down and converting into an Islamic police state to create the Iran-Saudi repressive bobsey twins. Chaos is the longstanding objective of the USGovt in foreign policy infection, no change in decades.
Syria is about a lot of things, most of which are volatile, many unsolvable. To be sure, the naval port of Tartus is valuable for the Russian Military, always eager to wrest a seaport. Like Lebanon, Syria is a hotbed stronghold for HezBollah, never to be taken lightly. They are mortal enemies to Israel, whose nations have exchanged covert violence for years. Syria might have tight relations with the Shiites of Iran, even some in Iraq. However, Syria represents the crossroads of many important shifting geopolitical roadways that pertain to the global financial structure and commercial systems. Syria is the tipping point for a Grand Global Paradigm Shift. It is the last stand for the Anglo Banker world. Syria will not go easily into the Russian camp, into the Gazprom fold, into the European energy market sphere. For if it does, the entire USDollar system of commerce and the USTreasury Bond system of reserves management will fall by the wayside and open a new era with Eastern dominance. But the Western powers cannot stop it. Clouds of whatever type do not halt pipeline flow, nor pipeline geopolitics.
WHAT SYRIA MEANS
Syria stands at the door to the emergence of the Eastern Alliance, the new dominant energy pipelines, a new payment system detached from the USDollar and Anglo banks. Syria stands at the door which controls some incremental European energy supply. Syria stands at the door to Gold Trade Settlement, with a transition step that brings more importance to commodity backed currencies and proper valid systems for trade. Syria means the pipelines strangle the USDollar. Syria means the end of the US system of IOU coupons that pollute the global banking system. Syria means the status quo is coming to an abrupt end. Syria represents a clash of East versus West, which has more commercial and bank significance than anything reported by the lapdog press. Notice the direct line from Iran through Iraq to Syria. The natgas of Iran reaches the Mediterranean Sea through Syria.
RISE OF PIPELINE POLITICS
Syria is the end port for what the Jackass calls the Shiite Gas Pipeline. It begins in Iran and ends at the Mediterranean seaport in Syria. It was designed to terminate at a Shiite friendly nation. Thus my informal name. Ironically, Qatar is fighting against the Syrian Assad loyalists, but the Qatari natural gas will be directed into the same pipeline. In the last year, a giant Persian Gulf gas discovery was made in a joint Iran-Qatar project. Syria is about the last gasp for the Petro-Dollar. It represents a climax in Energy Pipeline Politics. Quietly for the last 15 to 20 years, Russia has been building crude oil pipelines and natural gas pipelines from the Mother Russian lands to points in Europe and China and the Former Soviet Republics. They have been constructing modern LNG gas port facilities. They have been forging contracts to supply energy to countless nations. The US-led plans have been more interference than constructive. They have consistently attempted to obstruct, rather than to build with some justification of common benefit.
The US news networks cannot tell why or how Syria is important relative to the USDollar. Most Americans cannot define money, let alone conceive of a Petro-Dollar defacto standard. They do not comprehend the global banking system having practices as an extension of Saudi crude oil sales in USDollars. They remember nothing of the Kissinger Arab Oil Surplus Recycle Pact into USTreasury Bonds and US big bank stocks. The focus should be on Pipelines and the closely related geopolitics. The focus should be on the eclipse of OPEC. The focus should be on the loss of Western Europe to the Russian fold, where natural gas supply will alter decisions. Notice the UK Parliament did not offer military support for the USGovt in Syria. They might have received a phone call from either Putin at the Kremlin or the CEO of Gazprom. Coming to a world near you is the NatGas Coop led by Gazprom. A regular feature in geopolitical decisions will be the integration of natgas supply to Europe and Great Britain.
[Gazprom: Is the biggest company in Russia, the largest gas company on the planet. Gazprom is engaged in the operation of gas pipeline systems and gas supply to European countries. In addition, it is involved in the oil production and refining activities, as well as energy generation. It’s activities comprise exploration and production of gas, transportation of gas, sale of gas domestically and abroad, gas storage, production of crude oil and gas condensate, processing of oil, gas condensate and other hydrocarbons, and sales of refined products, as well as electric and heat energy generation and sales. “Gazprom has one manager: Putin.” Mr. Larry]
ECLIPSE OF OPEC
Clearly heading out is OPEC and its influence. The dirty secret for ten years has been the depletion and decline in Saudi oil reserves. The water cut has surpassed 80% on a regular basis at Saudi oilfields. It is the percentage of water in produced “oil” wells. The interior pressures are dissipated. The Saudis are suffering from lost oil surplus, rising government debt, higher domestic energy costs, higher food costs, internal strife, fascist Islamic rule, rising political prisoner population, and geriatrics at the throne. It sure would be good to know how King Abdullah returned from a coma after a few months, where his organs were declared defunct. Maybe like Saddam Hussein, he has some handy doubles. The OPEC nations in the last several years have become a loud disorganized gaggle of devious dealers who discount prices and lie on output on a regular basis. The cartel has no unity anymore. Their honorable Saudi core is disintegrating. The Saudi OPEC core is precisely the foundation to the Petro-Dollar and the justification for global banking systems being based in USTreasury Bonds. Coming online is the NatGas Coop. Coming online is gold trade settlement. Coming online is the BRICS Bank. Coming into prominent view is Gazprom, the leader of the NatGas Coop. It has some powerful strange bedfellows who deal in one currency, natural gas.
CYPRUS INDIRECT ATTACK
The news networks told of Cyprus being the site of bank crisis, account confiscations, the bail-in procedures creating a Western model, and resolutions. It took a while to realize, but the Jackass back in the March Hat Trick Letter noted the Gazprom angle and potential motive. The Jackass mapped out a Prima Facie case for motive on the Cyprus bank attack. It was a challenge to Gazprom and the Russian banking system, more than a Bail-in Model. It was an attempt to cut off the Russian encroachment into Europe with their Gazprom weapon, the most disruptive economic weapon seen in decades.
Cyprus used to serve as the primary window for the entire Russian banking system, and the central bank too. All bank transactions from Russia went through Cyprus. The conclusion could be that the Bail-in procedure is a suicide pact for the West. It is a declaration that if accounting rules are to be enforced, and capital requirements enforced, then the big Western banks would slit their throats and force the vanish of private bank accounts. Ditto if the legal prosecution of big bank were to begin in earnest. They cannot pull that switch unless major banks are all dead gone, from grotesque contagion. Since Lehman failed, all the big Western banks are lashed together, much like sailors at sea on deck during a nasty storm. If one goes, all go. The banker elite needed to disguise their attack of Gazprom in Cyprus. They wanted to interrupt the progress made by Russia in Pipeline Politics. The public bought the false story, again, like they always do. They do not think beyond the first visible layer.
FAILED USGOVT POLICY
- The USGovt lost on disruptions to Iran internet and undersea communication lines between 2004 and 2007. To be sure, the planned Iranian island center for trade processing never occurred, a success of sorts.
- The USGovt lost on Iranian sanctions.
- The rise of Turkey, India, and Chinese deals with unique payment systems have come to the table. Even the Japanese and South Koreans refused to play along. The entire workaround process served as a training ground for gold trade settlement. It will have a certain blossom, with the full weight of the BRICS nations behind the current initiatives.
- The US lost on Iran-Pakistan Pipeline, since China stepped forward, guaranteed funding for its completion, and even worked to extend the connected pipelines to the Western border of China for supply.
- The USGovt lost with its puppet named Mohammed Morsi, who was ousted in Egypt. The unspoken cause was food price inflation, not political discord as reported by the US news network minions.
- The USGovt won the Qaddafi’s gold (144 tons) but with a grand backfire on the Libyan Embassy controversy. The Pentagon does not appreciate the sacrifice of Navy SEALS to deceit and hidden motives.
- The biggest failure by the USGovt could be the monetary policy at work by the US Federal Reserve. The QE bond purchase program has produced massive broad price inflation globally, in addition to rising energy costs, rising material costs, and rising related follow-on costs. It is difficult to find any USGovt or USFed policy of value, other than to serve the bank syndicate.
The key to the future is seen on the margin of new power. It is the Natural Gas Coop. To date, it has no name. Curiously, its power might lie in the fact that it has no name, no central nexus. It is a de-centralized cooperative. But more accurately, it has a Russian core, a brain trust at Gazprom. It has a certain Kremlin command center, since a newfound strategic weapon. It is their greatest global weapon in decades. The strange bedfellows consist of Russia (home HQ of Gazprom), Turkmenistan (#2 natgas global producer), Iran (giant renegade producer), Qatar (biggest LNG star), and Israel (from Tamar Platform). The presence of Sunni Qatar from the Persian Gulf and US Fascist Ally Israel make for the odd mix. In June, the Israel Govt signed a deal with Russian Gazprom. It called for directing all surplus natgas output from Tamar to the Gazprom pipeline system, and the European market. The Israeli Economy will greatly benefit from the surplus revenue.
Game over for OPEC and a guaranteed demise of the Petro-Dollar. Simply stated, Saudi Arabia is to
OPEC, what Russia is to NatGas Coop. The phase out of OPEC is in progress, without much recognition. The emergence of the NatGas Coop is to be better understood in the near future. A tremendously important shift is taking place in energy geopolitics. The consequences will be rapid diversification out of the USTreasury Bond, colossal Indirect Exchange in asset deals, and broad abandonment (aka dumping). In the process, almost no buyers of USGovt debt will be visible, and the USFed will be leaned upon more fully for bond purchases. The Weimar machinery will strain to the limit. The USGovt debt default will occur, as the event has become more visible, a 2008 Hat Trick Letter forecast.
DEMISE OF PETRO-DOLLAR
Not 5% of Americans comprehend the defacto Petro-Dollar standard. They will when the Saudis must step aside and permit OPEC to be eclipsed by the NatGas Coop with its expansive global network of pipelines. The great USDollar devaluation will occur when the Petro-Dollar falls by the wayside. The result will be profound price inflation in the USEconomy. The fall of the Saudi regime is guaranteed eventually, and likely soon. The Saudis cannot play both sides (US & Russia) successfully.
They will fail with both partners. The NatGas Pipelines are critical, as they wield enormous economic leverage and power. Together, the NatGas Coop phases out OPEC and assures the end of the USDollar as it is currently known and structured. Watch the Saudis soon indicate that non-USDollar payments are accepted for crude oil sales, like accepting GBPounds, Euros, Japanese Yen, even Swiss Francs. Watch the Saudis closely for various signals of impending doom, death signals. As energy sales move gradually, then rapidly, away from the USD settlement, the world will go through a transformation. The banking system will change in their foundations, one nation at a time, with diversification away from USTBonds. It is Game Over!!
Syria is the last line of defense for the USDollar and the exalted position of OPEC. Syria is the potential recognized debut of the NatGas Coop in significance. It is all hidden, except to the Hat Trick Letter. In the new era emerging, Gold will prevail as the Gold Trade Standard is put in place. It will not be done with a stake in the ground from the banking system of the FOREX currency trading arenas. Therefore it is so dangerous to the status quo. My full expectation is that the USGovt will back off in Syria. The retreat will not be seen as a magnanimous gesture, but rather more like a bully backing down. Revelations will be very damaging on chemical weapons and the roles played. Roots to Saddam Hussein will be reviewed. Iran already has tens of thousands killed by chemical weapons over 20 years ago in a war waged with Iraq, with a hand from the Bushes. The United States leadership is in for some cold water in the face. The United States is due for some extreme isolation. The NatGas Coop will change the global map. It will open the door to the Eurasian Trade Zone for commerce, and open the door to the Gold Trade Settlement for finance. Some quantum leaps are in store and soon. Gold will emerge with a new Gold Trade Standard, whose price will shock most observers. Think multiples higher. Syria is a seminal event for gold.”
B. Is The United States Going To Go To War With Syria Over A Natural Gas Pipeline?
3 Sep 2013, TheEconomicCollapseBlog.com, by Michael Snyder
Pasted from: http://theeconomiccollapseblog.com/archives/is-the-united-states-going-to-go-to-war-with-syria-over-a-natural-gas-pipeline
“Why has the little nation of Qatar spent 3 billion dollars to support the rebels in Syria? Could it be because Qatar is the largest exporter of liquid natural gas in the world and Assad won’t let them build a natural gas pipeline through Syria? Of course. Qatar wants to install a puppet regime in Syria that will allow them to build a pipeline which will enable them to sell lots and lots of natural gas to Europe. Why is Saudi Arabia spending huge amounts of money to help the rebels and why has Saudi Prince Bandar bin Sultan been “jetting from covert command centers near the Syrian front lines to the Élysée Palace in Paris and the Kremlin in Moscow, seeking to undermine the Assad regime”? Well, it turns out that Saudi Arabia intends to install their own puppet government in Syria which will allow the Saudis to control the flow of energy through the region. On the other side, Russia very much prefers the Assad regime for a whole bunch of reasons. One of those reasons is that Assad is helping to block the flow of natural gas out of the Persian Gulf into Europe, thus ensuring higher profits for Gazprom. Now the United States is getting directly involved in the conflict. If the U.S. is successful in getting rid of the Assad regime, it will be good for either the Saudis or Qatar (and possibly for both), and it will be really bad for Russia. This is a strategic geopolitical conflict about natural resources, religion and money, and it really has nothing to do with chemical weapons at all.
It has been common knowledge that Qatar has desperately wanted to construct a natural gas pipeline that will enable it to get natural gas to Europe for a very long time. The following is an excerpt from an article from 2009…
Qatar has proposed a gas pipeline from the Gulf to Turkey in a sign the emirate is considering a further expansion of exports from the world’s biggest gasfield after it finishes an ambitious programme to more than double its capacity to produce liquefied natural gas (LNG).
“We are eager to have a gas pipeline from Qatar to Turkey,” Sheikh Hamad bin Khalifa Al Thani, the ruler of Qatar, said last week, following talks with the Turkish president Abdullah Gul and the prime minister Recep Tayyip Erdogan in the western Turkish resort town of Bodrum. “We discussed this matter in the framework of co-operation in the field of energy. In this regard, a working group will be set up that will come up with concrete results in the shortest possible time,” he said, according to Turkey’s Anatolia news agency.
Other reports in the Turkish press said the two states were exploring the possibility of Qatar supplying gas to the strategic Nabucco pipeline project, which would transport Central Asian and Middle Eastern gas to Europe, bypassing Russia. A Qatar-to-Turkey pipeline might hook up with Nabucco at its proposed starting point in eastern Turkey. Last month, Mr Erdogan and the prime ministers of four European countries signed a transit agreement for Nabucco, clearing the way for a final investment decision next year on the EU-backed project to reduce European dependence on Russian gas.
“For this aim, I think a gas pipeline between Turkey and Qatar would solve the issue once and for all,” Mr Erdogan added, according to reports in several newspapers. The reports said two different routes for such a pipeline were possible. One would lead from Qatar through Saudi Arabia, Kuwait and Iraq to Turkey. The other would go through Saudi Arabia, Jordan, Syria and on to Turkey. It was not clear whether the second option would be connected to the Pan-Arab pipeline, carrying Egyptian gas through Jordan to Syria. That pipeline, which is due to be extended to Turkey, has also been proposed as a source of gas for Nabucco.
Based on production from the massive North Field in the Gulf, Qatar has established a commanding position as the world’s leading LNG exporter. It is consolidating that through a construction programme aimed at increasing its annual LNG production capacity to 77 million tonnes by the end of next year, from 31 million tonnes last year. However, in 2005, the emirate placed a moratorium on plans for further development of the North Field in order to conduct a reservoir study.
As you just read, there were two proposed routes for the pipeline. Unfortunately for Qatar, Saudi Arabia said no to the first route and Syria said no to the second route. The following is from an absolutely outstanding article in the Guardian…
In 2009 – the same year former French foreign minister Dumas alleges the British began planning operations in Syria – Assad refused to sign a proposed agreement with Qatar that would run a pipeline from the latter’s North field, contiguous with
Iran’s South Pars field, through Saudi Arabia, Jordan, Syria and on to Turkey, with a view to supply European markets – albeit crucially bypassing Russia. Assad’s rationale was “to protect the interests of [his] Russian ally, which is Europe’s top supplier of natural gas.”
Instead, the following year, Assad pursued negotiations for an alternative $10 billion pipeline plan with Iran, across Iraq to Syria, that would also potentially allow Iran to supply gas to Europe from its South Pars field shared with Qatar. The Memorandum of Understanding (MoU) for the project was signed in July 2012 – just as Syria’s civil war was spreading to Damascus and Aleppo – and earlier this year Iraq signed a framework agreement for construction of the gas pipelines.
The Iran-Iraq-Syria pipeline plan was a “direct slap in the face” to Qatar’s plans. No wonder Saudi Prince Bandar bin Sultan, in a failed attempt to bribe Russia to switch sides, told President Vladmir Putin that “whatever regime comes after” Assad, it will be “completely” in Saudi Arabia’s hands and will “not sign any agreement allowing any Gulf country to transport its gas across Syria to Europe and compete with Russian gas exports”, according to diplomatic sources. When Putin refused, the Prince vowed military action.
If Qatar is able to get natural gas flowing into Europe, that will be a significant blow to Russia. So the conflict in Syria is actually much more about a pipeline than it is about the future of the Syrian people. In a recent article, Paul McGuire summarized things quite nicely…
The Nabucco Agreement was signed by a handful of European nations and Turkey back in 2009. It was an agreement to run a natural gas pipeline across Turkey into Austria, bypassing Russia again with Qatar in the mix as a supplier to a feeder pipeline via the proposed Arab pipeline from Libya to Egypt to Nabucco (is the picture getting clearer?). The problem with all of this is that a Russian backed Syria stands in the way.
Qatar would love to sell its LNG to the EU and the hot Mediterranean markets. The problem for Qatar in achieving this is Saudi Arabia. The Saudis have already said “NO” to an overland pipe cutting across the Land of Saud. The only solution for Qatar if it wants to sell its oil is to cut a deal with the U.S.
Recently Exxon Mobile and Qatar Petroleum International have made a $10 Billion deal that allows Exxon Mobile to sell natural gas through a port in Texas to the UK and Mediterranean markets. Qatar stands to make a lot of money and the only thing standing in the way of their aspirations is Syria.
The US plays into this in that it has vast wells of natural gas, in fact the largest known supply in the world. There is a reason why natural gas prices have been suppressed for so long in the US. This is to set the stage for US involvement in the Natural Gas market in Europe while smashing the monopoly that the Russians have enjoyed for so long. What appears to be a conflict with Syria is really a conflict between the U.S. and Russia!
The main cities of turmoil and conflict in Syria right now are Damascus, Homs, and Aleppo. These are the same cities that the proposed gas pipelines happen to run through. Qatar is the biggest financier of the Syrian uprising, having spent over $3 billion so far on the conflict. The other side of the story is Saudi Arabia, which finances anti-Assad groups in Syria. The Saudis do not want to be marginalized by Qatar; thus they too want to topple Assad and implant their own puppet government, one that would sign off on a pipeline deal and charge Qatar for running their pipes through to Nabucco.
Yes, I know that this is all very complicated.
But no matter how you slice it, there is absolutely no reason for the United States to be getting involved in this conflict.
If the U.S. does get involved, we will actually be helping al-Qaeda terrorists that behead mothers and their infants…
Al-Qaeda linked terrorists in Syria have beheaded all 24 Syrian passengers traveling from Tartus to Ras al-Ain in northeast of Syria, among them a mother and a 40-days old infant.
Gunmen from the terrorist Islamic State of Iraq and Levant stopped the bus on the road in Talkalakh and killed everyone before setting the bus on fire.
Is this really who we want to be “allied” with?
And of course once we strike Syria, the war could escalate into a full-blown conflict very easily.
If you believe that the Obama administration would never send U.S. troops into Syria, you are just being naïve. In fact, according to Jack Goldsmith, a professor at Harvard Law School, the proposed authorization to use military force that has been sent to Congress would leave the door wide open for American “boots on the ground”…
The proposed AUMF focuses on Syrian WMD but is otherwise very broad. It authorizes the President to use any element of the U.S. Armed Forces and any method of force. It does not contain specific limits on targets – either in terms of the identity of the targets (e.g. the Syrian government, Syrian rebels, Hezbollah, Iran) or the geography of the targets. Its main limit comes on the purposes for which force can be used. Four points are worth making about these purposes. First, the proposed AUMF authorizes the President to use force “in connection with” the use of WMD in the Syrian civil war. (It does not limit the President’s use force to the territory of Syria, but rather says that the use of force must have a connection to the use of WMD in the Syrian conflict. Activities outside Syria can and certainly do have a connection to the use of WMD in the Syrian civil war.). Second, the use of force must be designed to “prevent or deter the use or proliferation” of WMDs “within, to or from Syria” or (broader yet) to “protect the United States and its allies and partners against the threat posed by such weapons.” Third, the proposed AUMF gives the President final interpretive authority to determine when these criteria are satisfied (“as he determines to be necessary and appropriate”). Fourth, the proposed AUMF contemplates no procedural restrictions on the President’s powers (such as a time limit).
I think this AUMF has much broader implications than Ilya Somin described. Some questions for Congress to ponder:
(1) Does the proposed AUMF authorize the President to take sides in the Syrian Civil War, or to attack Syrian rebels associated with al Qaeda, or to remove Assad from power? Yes, as long as the President determines that any of these entities has a (mere) connection to the use of WMD in the Syrian civil war, and that the use of force against one of them would prevent or deter the use or proliferation of WMD within, or to and from, Syria, or protect the U.S. or its allies (e.g. Israel) against the (mere) threat posed by those weapons. It is very easy to imagine the President making such determinations with regard to Assad or one or more of the rebel groups.
(2) Does the proposed AUMF authorize the President to use force against Iran or Hezbollah, in Iran or Lebanon? Again, yes, as long as the President determines that Iran or Hezbollah has a (mere) a connection to the use of WMD in the Syrian civil war, and the use of force against Iran or Hezbollah would prevent or deter the use or proliferation of WMD within, or to and from, Syria, or protect the U.S. or its allies (e.g. Israel) against the (mere) threat posed by those weapons.
Would you like to send your own son or your own daughter to fight in Syria just so that a natural gas pipeline can be built?
What the United States should be doing in this situation is so obvious that even the five-year-old grandson of Nancy Pelosi can figure it out…
I’ll tell you this story and then I really do have to go. My five-year-old grandson, as I was leaving San Francisco yesterday, he said to me, Mimi, my name, Mimi, war with Syria, are you yes war with Syria, no, war with Syria. And he’s five years old. We’re not talking about war; we’re talking about action. Yes war with Syria, no with war in Syria. I said, ‘Well, what do you think?’ He said, ‘I think no war.’
Unfortunately, his grandmother and most of our other insane “leaders” in Washington D.C. seem absolutely determined to take us to war.
In the end, how much American blood will be spilled over a stupid natural gas pipeline?”
[The fact that we are increasingly being led into Energy Resource Wars stems from our exponential use of energy, see the article, “Exponential Growth” at: https://4dtraveler.net/2012/01/12/exponential-growth/
As we slowly change energy sources wood>coal>steam>oil>natural gas there are social, technological, political and international elements that have to be smoothed out in order for the new energy form to spread into the mainstream and replace the diminishing, less desirable form. Iraq, Iran and Syria are wrinkles in the fabric of western energy consumption and our desire to maintain global trade in US Dollars.]