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Petrodollar ‘recycling’ to change Geopolitics in 2015!

February 8, 2015

Petrodollar growth has peaked and now these reserves will be used to change our markets in 2015 and 2016. The price of oil has declined by some 50% and this change will affect the reserves of countries who export oil. Those countries which import oil should benefit initially but shifts in how funds are reinvested could change our markets substantially soon. Countries like Russia, Iraq, Iran, Libya, Venezuela, Nigeria, Saudi Arabia, Qatar, and all the other export countries will now need to rethink how their petro reserves will be invested and spent. These changes (in the billions) will change all our markets in time. My assumption is that the cyber price of oil will remain depressed/suppressed for all of 2015 and also 2016. Here is one link re: what is emerging:

 This leader could play a major role in what happens going forward!

Russia, the Middle East, parts of Africa, and parts of Latin America could be affected soon by these changes in the flow of petro funds. Our petrodollar became the global reserve currency after the closing of the gold window in 1971-73. The agreement between the Opec Cartel and the United States to price oil in dollars created the concept called the petrodollar. This concept is now mostly irrelevant going forward. Many countries are now recognizing that this concept benefited mostly the USA (at the expense of the developing world). The USA was blessed with unlimited funds from the reinvestment of these petrodollars back into U.S. treasuries and similar assets. The collapse of oil prices is recent but the trend of lower prices is likely to continue for the immediate future. This will change all of Geopolitics in time!

The coming changes within the Russian sphere of influence and the Middle East could be significant in 2015-16. Prosperity appears to be over for Russia and for much of the Middle East. This will lead to tensions. The blame will flow towards the USA (the Great Satan of the West who started the game of petro finance). The global POWER game of the USA (both economic and political) will continue to increase this stress and tension among the suffering countries…and eventually the LION will exit the cage. The LION will then create serious stress and tension within all of the Western political sphere. How will the USA respond to this new stress and tension. Will they choose more of their philosophy of MIGHT makes Right to suppress these tensions? History suggests that they will! Might and more War games are likely going forward. This is how our Current World works!

The USA acquired their financial muscle from forcing the world to accept their petrodollar in 1974 and after. Our entire global economy depends upon energy and oil has been the medium for supplying this energy. The game of economics is now changing rapidly as other Nations recognize the unfairness which America has acquired from their control over finance for the entire planet. Yes, the Nixon decision to close the gold window in 1971 and then the decision to continue American hegemony via the petrodollar in 1974 and after created a huge prosperity for Americans and their friends. Our Geopolitics are now changing as a result of the huge decline in oil prices and the awareness of our enemies that they dislike our hegemony over them. The Great Satan (from the viewpoint of our enemies) will now need to rethink their strategy going forward!

This gauge suggests tension/stress/military conflict ahead! 

The USA is the Great Super Power (militarily)! Will this card work going forward???

The volatility in our markets has started and is likely to accelerate going forward. The predictability of how events will play out is impossible to forecast. We can expect many ‘black swan’ events in the next 18 – 24 months. The trend of DEFLATION could also accelerate as a result of all these coming events. All the QE counterfeiting is unlikely to change this trend towards DEFLATION (for the immediate future). All this could be good for silver/gold investors BUT this is assuming that price manipulations/suppressions (via algorithms) within our electronic futures markets becomes ineffective. Will the trading strategy of ‘naked shorts’ continue at a more intense level? Will our Central Banks abandon this price suppression as demand increases for these SAFE HAVENS? We must watch and see! Events will change substantially and all is uncertain going forward! Enjoy! I am:

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