As Italian bank UniCredit hangs by a thread as the potential European version of a Lehman Brothers collapse, but many more times over, one has to wonder about the timing of other seemingly unrelated events in the Persian Gulf. Sign-up for my 100% FREE Alerts
Newsletter writer Jim Willie Ph.D of the Hat Trick Letter told the Silver Doctors radio show that UniCredit is the bank to watch for its Lehman-like potential in the Eurozone. A collapse of UniCredit most assuredly will trigger the feared financial Armageddon scenario within an economic block representing approximately 22 percent of world GDP, an event the U.S. and China do not want to happen. For them, a European credit collapse immediately moves the crisis to the U.S. and China.
“So next on tap is UniCredit going bad, going bust, failing, turning to dust. And when that happens look for at least another couple Italian banks to also go bust,” Willie said. “And when that happens look for the French banks to go bust. The three major French banks. Credit Agricole, BNP Paribas, and Societe Generale. And when that happens look for at least one or two London banks to go bust- they’re all inter-connected!”
Founder of Global Resource Investments, Rick Rule, told King World News he senses something in the wind suddenly from OPEC’s swing producer, Saudi Arabia.
“One of the major developments in the oil sector is the recently announced and official Saudi Arabian position that they were able to produce another 2 million barrels a day in case Iranian crude is shut out of the market,” Rule told KWN host Eric King. “They also stated they could identify another 500,000 to 700,000 a day, which they would be able to produce in 9 months.
“The interesting thing in that press release was the fact that the Saudis were targeting 100 U.S. dollars per barrel,” Rule continued. “The earlier Saudi indications were $75 a barrel. It’s fascinating that the Saudis are now interested in establishing a floor price for oil in the triple digits.”
U.S. and Russian warships cruising around the Persian Gulf, Israel pretending to be the unleashed mad dog of Washington’s strategic plans against Iran, and a lot of saber rattling—again! — from all sides, higher and higher oil prices appear to be serving as the mechanism for a worldwide tax collection effort by Washington and the Fed to bailout Europe. And who collects the oil price tax? The Middle East.
“Aabar Investments PJS, the Abu Dhabi-based sovereign wealth fund, plans to increase its stake in UniCredit SpA to 6.5 percent through the lender’s rights offer, which would make it the bank’s biggest investor,” Bloomberg reported on Jan. 18.
That, in addition to the half-billion dollar currency swap with Europe has Fed-driven foreign policy fingerprints smeared all over artificially high oil prices.
U.S. warships raise the price of oil for its friends in the Middle East, who then help the Fed bailout European banks while providing support to the dollar.
In his essay of December 2006, titled, Hysteria Over Iran and a New Cold War with Russia: Peak Oil, Petrocurrencies and the Emerging Multi-Polar World, author William Clark explained that the Fed must somehow continue to create demand for the U.S. dollar to continue the Treasury Ponzi scheme, which may at times include the use of the U.S. military in order to continue to fund debt, deficits and military spending. And the demand for the petrodollar is critical to maintaining artificially low interest rates, according to Clark.
What Clark may not have seen in 2006 is the dramatic collapse of the global debt Ponzi scheme. The euro is indeed a threat to the dollar as a reserve currency, but now the euro must not be allowed to collapse overnight, a point suggested by Jim Rickards in his book, Currency Wars—a book published after the collapse Lehman Brothers of 2008.
Ironically, this leaves the Fed no choice but to bail out Europe to save the dollar, thus the UniCredit bailout scheme with the Middle East. Surely, in future more Arab nations will pick up some of the sudden slack from China’s and Japan’s reduced exposure to Europe and the U.S. debt markets, all thanks to a windfall of higher oil revenue generated in the Middle East.
Clarke wrote in December 2006:
The petrodollar-recycling system allows the Federal Reserve to effortlessly expand global credit to enforce U.S. financial control and continue massive debt-financing to pay for U.S. military control. If petrodollar-recycling begins to break down, then financial and military control will also begin to decline. Ergo, petrodollar recycling can not be allowed to diminish as it will undermine U.S. supremacy. The major oil-producers that have expressed interest in petroeuros or a “basket of currencies” for oil transactions and thus pose the greatest threat have been Iraq (under Saddam), Iran, Venezuela and Russia. Iraq received regime change via a military invasion; Iran is the current target for economic and geostrategic reasons, Venezuela was subjected in April 2002 to an unsuccessful coup d’état with covert U.S. backing, while Russia’s political establishment remains relatively insulated from U.S. interventions. But Russia’s peripheral states are, however, subject to U.S. meddling via “color revolutions” as part of Washington’s encirclement strategy. China remains in the background as an interested but somewhat enigmatic actor. (Bold text added)
After it became clear that European leaders weren’t going to easily come to the position of the U.S. to aggressively monetize debt with a blessing of Germany in the EU, suddenly the multi-year-long rhetorical lambasting of Iran for its nuclear enrichment plants has escalated to warships cruising the Persian Gulf–and at a time when the last thing the EU and U.S. economies need are higher oil prices. Sign-up for my 100% FREE Alerts