Russia Breaking Wall St Oil Price Monopoly, by F. William Engdahl . . . this is the article today of real importance! ~J

Forget all the terrible news, for instance about Muslim men. This has to be a false flag! Please keep on checking Jim Stone’s site Here. He does a great job of investigating these lies. 

Here is the news that really counts – this by William Engdahl says it’s all coming to an end. That’ s what we need to know, what we need to hang onto as these psychopaths do they only thing they know how to do: intimidate, create fear, murder — all on their way out! ~J

http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/

greece-expects-russian-gas-pipeline-deal-soon.w_l-300x169

Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy.

Later in November the Russian Energy Ministry has announced that it will begin test-trading of a new Russian oil benchmark. While this might sound like small beer to many, it’s huge. If successful, and there is no reason why it won’t be, the Russian crude oil benchmark futures contract traded on Russian exchanges, will price oil in rubles and no longer in US dollars. It is part of a de-dollarization move that Russia, China and a growing number of other countries have quietly begun.

The setting of an oil benchmark price is at the heart of the method used by major Wall Street banks to control world oil prices. Oil is the world’s largest commodity in dollar terms. Today, the price of Russian crude oil is referenced to what is called the Brent price. The problem is that the Brent field, along with other major North Sea oil fields is in major decline, meaning that Wall Street can use a vanishing benchmark to leverage control over vastly larger oil volumes. The other problem is that the Brent contract is controlled essentially by Wall Street and the derivatives manipulations of banks like Goldman Sachs, Morgan Stanley, JP MorganChase and Citibank.

The ‘Petrodollar’ demise

The sale of oil denominated in dollars is essential for the support of the US dollar. In turn, maintaining demand for dollars by world central banks for their currency reserves to back foreign trade of countries like China, Japan or Germany, is essential if the United States dollar is to remain the leading world reserve currency. That status as world’s leading reserve currency is one of two pillars of American hegemony since the end of World War II. The second pillar is world military supremacy.

US wars financed with others’ dollars

Because all other nations need to acquire dollars to buy imports of oil and most other commodities, a country such as Russia or China typically invests the trade surplus dollars its companies earn in the form of US government bonds or similar US government securities. The only other candidate large enough, the Euro, since the 2010 Greek crisis, is seen as more risky.

That leading reserve role of the US dollar, since August 1971 when the dollar broke from gold-backing, has essentially allowed the US Government to run seemingly endless budget deficits without having to worry about rising interest rates, like having a permanent overdraft credit at your bank.

That in effect has allowed Washington to create a record $18.6 trillion federal debt without major concern. Today the ratio of US government debt to GDP is 111%. In 2001 when George W. Bush took office and before trillions were spent on the Afghan and Iraq “War on Terror,” US debt to GDP was just half, or 55%. The glib expression in Washington is that “debt doesn’t matter,” as the assumption is that the world—Russia, China, Japan, India, Germany–will always buy US debt with their trade surplus dollars. The ability of Washington to hold the lead reserve currency role, a strategic priority for Washington and Wall Street, is vitally tied to how world oil prices are determined.

In the period up until the end of the 1980’s world oil prices were determined largely by real daily supply and demand. It was the province of oil buyers and oil sellers. Then Goldman Sachs decided to buy the small Wall Street commodity brokerage, J. Aron in the 1980’s. They had their eye set on transforming how oil is traded in world markets.

It was the advent of “paper oil,” oil traded in futures, contracts independent of delivery of physical crude, easier for the large banks to manipulate based on rumors and derivative market skullduggery, as a handful of Wall Street banks dominated oil futures trades and knew just who held what positions, a convenient insider role that is rarely mentioned inn polite company. It was the beginning of transforming oil trading into a casino where Goldman Sachs, Morgan Stanley, JP MorganChase and a few other giant Wall Street banks ran the crap tables.

In the aftermath of the 1973 rise in the price of OPEC oil by some 400% in a matter of months following the October, 1973 Yom Kippur war, the US Treasury sent a high-level emissary to Riyadh, Saudi Arabia. In 1975 US Treasury Assistant Secretary, Jack F. Bennett, was sent to Saudi Arabia to secure an agreement with the monarchy that Saudi and all OPEC oil will only be traded in US dollars, not Japanese Yen or German Marks or any other. Bennett then went to take a high job at Exxon. The Saudis got major military guarantees and equipment in return and from that point, despite major efforts of oil importing countries, oil to this day is sold on world markets in dollars and the price is set by Wall Street via control of the derivatives or futures exchanges such as Intercontinental Exchange or ICE in London, the NYMEX commodity exchange in New York, or the Dubai Mercantile Exchange which sets the benchmark for Arab crude prices. All are owned by a tight-knit group of Wall Street banks–Goldman Sachs, JP MorganChase, Citigroup and others. At the time Secretary of State Henry Kissinger reportedly stated, “If you control the oil, you control entire nations.” Oil has been at the heart of the Dollar System since 1945.

Russian benchmark importance

Today, prices for Russian oil exports are set according to the Brent price in as traded London and New York. With the launch of Russia’s benchmark trading, that is due to change, likely very dramatically. The new contract for Russian crude in rubles, not dollars, will trade on the St. Petersburg International Mercantile Exchange (SPIMEX).

The Brent benchmark contract are used presently to price not only Russian crude oil. It’s used to set the price for over two-thirds of all internationally traded oil. The problem is that the North Sea production of the Brent blend is declining to the point today only 1 million barrels Brent blend production sets the price for 67% of all international oil traded. The Russian ruble contract could make a major dent in the demand for oil dollars once it is accepted.

Russia is the world’s largest oil producer, so creation of a Russian oil benchmark independent from the dollar is significant, to put it mildly. In 2013 Russia produced 10.5 million barrels per day, slightly more than Saudi Arabia. Because natural gas is mainly used in Russia, fully 75% of their oil can be exported. Europe is by far Russia’s main oil customer, buying 3.5 million barrels a day or 80% of total Russian oil exports. The Urals Blend, a mixture of Russian oil varieties, is Russia’s main exported oil grade. The main European customers are Germany, the Netherlands and Poland. To put Russia’s benchmark move into perspective, the other large suppliers of crude oil to Europe – Saudi Arabia (890,000 bpd), Nigeria (810,000 bpd), Kazakhstan (580,000 bpd) and Libya (560,000 bpd) – lag far behind Russia. As well, domestic production of crude oil in Europe is declining quickly. Oil output from Europe fell just below 3 Mb/d in 2013, following steady declines in the North Sea which is the basis of the Brent benchmark.

End to dollar hegemony good for US

The Russian move to price in rubles its large oil exports to world markets, especially Western Europe, and increasingly to China and Asia via the ESPO pipeline and other routes, on the new Russian oil benchmark in the St. Petersburg International Mercantile Exchange is by no means the only move to lessen dependence of countries on the dollar for oil. Sometime early next year China, the world’s second-largest oil importer, plans to launch its own oil benchmark contract. Like the Russian, China’s benchmark will be denominated not in dollars but in Chinese Yuan. It will be traded on the Shanghai International Energy Exchange.

Step-by-step, Russia, China and other emerging economies are taking measures to lessen their dependency on the US dollar, to “de-dollarize.” Oil is the world’s largest traded commodity and it is almost entirely priced in dollars. Were that to end, the ability of the US military industrial complex to wage wars without end would be in deep trouble.

Perhaps that would open some doors to more peaceful ideas such as spending US taxpayer dollars on rebuilding the horrendous deterioration of basic USA economic infrastructure. The American Society of Civil Engineers in 2013 estimated $3.6 trillion of basic infrastructure investment is needed in the United States over the next five years. They report that one out of every 9 bridges in America, more than 70,000 across the country, are deficient. Almost one-third of the major roads in the US are in poor condition. Only 2 of 14 major ports on the eastern seaboard will be able to accommodate the super-sized cargo ships that will soon be coming through the newly expanded Panama Canal. There are more than 14,000 miles of high-speed rail operating around the world, but none in the United States.

That kind of basic infrastructure spending would be a far more economically beneficial source of real jobs and real tax revenue for the United States than more of John McCain’s endless wars. Investment in infrastructure, as I have noted in previous articles, has a multiplier effect in creating new markets. Infrastructure creates economic efficiencies and tax revenues of some 11 to 1 for every one dollar invested as the economy becomes more efficient.

A dramatic decline for the role of the dollar as world reserve currency, if coupled with a Russia-styled domestic refocus on rebuilding America’s domestic economy, rather than out-sourcing everything, could go a major way to rebalance a world gone mad with war. Paradoxically, the de-dollarization, by denying Washington the ability to finance future wars by the investment in US Treasury debt from Chinese, Russian and other foreign bond buyers, could be a valuable contribution to genuine world peace. Wouldn’t that be nice for a change?

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”.

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9 Responses to Russia Breaking Wall St Oil Price Monopoly, by F. William Engdahl . . . this is the article today of real importance! ~J

  1. curtain falling says:

    So again you fall for these distractions and looking for a “saviour” such as “Put In” You do not learn the lessons, you will continue to have your “bundy” (remember ted?), your “dees”, your pretrayus, What we all need to stay focused on is the geoengineering of the planet. All this, is nothing but “skits” to keep your focus away from this. Every government of all “countries” are involved in geongineering this this planet. Does it really, really matter which government is right or wrong on a surface level??? When behind all our backs, they are united, in this “climate change” They are going to continue these “theatrics”, locally, state, country and internationally. It is all a distraction. For all that is said, “played out”…while our “planet” is being “terrorformed”, as well as terraformed. You will never hear the “truth” from anyone, because no one has the whole truth. You just all keep being manipulated to take “sides”, but cannot see it. Distraction after distraction, as the grand illusionist, behind the curtain, still manipulates the “puppets” as well as the scenes/scenarios. We are being held captive in a false, chemical/metal induced ionosphere/atmosphere that is being electrified by ELF’s/HAARP/microwaves/wifi/”cell” towers. Which in turn amounts to a super electified fence, we all know about electric fencing, used by ranchers forever to keep their cattle/flocks contained, and not wander away. We are inside the biggest open air prison, ever known to Humankind, a litteral human zoo. you are being distracted and lured, just like “animal pelt trappers” but you will not open your eyes to the BIGEST PICTURE OF THEM ALL. Instead, you follow “their breadcrumb trails” over and over again! No wonder nothing changes, and the pendulum swings left to right, over and over again. Always some sort of division, this is how they get our tacit consent!!! do not choose any “side”, all right now is nothing but distraction, to CON you into choosing one side or the other, either side is not the true path.
    I do not (k)now if Jean will allow my comment to be published on her blog, but at least I put it out there, to reign in their focus, back to geonengineering and its true purpose…the rest are just childhood plays from grade school…never in my conscious being, would I have ever imagined, the amount of beings, that have willingly engaged in the grand deception
    Geoengineering – Terraforming our planet…cannot get the link to attach, but you can do a search

    • Jean says:

      Look, your thinking just doesn’t work for me!!! Who is paying for the geo-engineering? ? ? Who? Until the criminals are broken financially, this will continue!! Can’t you see this? It is so very obvious to me! Putin isn’t saving anyone, but he’s working with a lot of other countries to save his own – and their own, by breaking the back of the fiat dollar. Please, I’m running out of patience, so please until you can see the larger picture, stop these negative comments that are full of ire, but in my opinion are without basis! Instead, do the work to prove me wrong, to prove the focus should only be on geo-engineering; otherwise, I won’t publish your thoughts here anymore, because to me they make zero sense.

      Yes, there are hundreds of things we should focus on: the corrupt US government, the attempt to murder us through vaccinations; now the methane gas leak, the continual lies from the MSM, and the list goes on and on. What will stop ALL OF THIS? Destroying the US fiat dollar, so they have no ability to pay anyone to do their bidding. . . Now, take the time to prove me wrong . . . give me links, ideas from knowledgable people who have everyone’s respect that tell me there is something besides the collapse of the Fiat dollar that will bring these criminals to a halt in all their sick attempts to destroy us and bring this planet to the edge of destruction; otherwise, don’t come back here!!! . . .

      Hugs,
      ~Jean

    • Light I AM says:

      To understand the emergence of political correctness, social justice, modern feminism, etc., one must first understand the manipulation by the wanna-be powers, using the principle of the DIVIDE & CONQUER tactics.
      These imposts upon the peoples and nations throughout the world is being orchestrated by a select few based in Rome, City of London and Washington DC, = The Old Roman Empire, come again. i.e. reincarnated Energy Field of the discordant ones, or, the laggards from bygone eras/worlds, come again.
      Worlds = Whirlds = Language manipulation = SPELLing!

      Whilst I AM able to see the perspective on the geoengineering aspect as a major disrupter, (having noticed only yesterday the tripling of the usual CHEMtrails in my neck of the woods), I AM also able to see the other following other significant contributors…
      1. Finance/Fiat Money Creation as another major tool by that which the people’s MIND (Mined) is being manipulated. Dependence (like drugs, sugar, tobacco, social networking), bribery, extortion, elected rep’s compromised…
      2. LANGUAGE construct & use, its associated vibration (internal thought & external), this one is most significant and the most underrated!
      3. Religion, ANY and ALL of them.
      4. Law, maritime, or any written law. The word “Law” is their usual perverted and inverted word use. law = wal = WALL = A BARrier = BAR = Temple BAR = Allegiance to the system, even if it is in another country and forget all else.
      5. Education system. Indoctrinating your MINED, their agenda, not Self Master-ship. Remember the old “God-Parent” system & it’s more virtuous nature …anyone know how to be a “God-Parent”?
      6. Wars – any type, overt and covert, along with the hypocrisy always spouted by “leaders” in the lead-up to it.
      7. Sex trade, associated with satanic rituals, set-ups/stings, blackmail, life taking. Live and via the Media. To be Beaten = Battery = Energy source drained.
      8. Media (MSM) buy-out and info manipulation (Mass distraction), steering the path for you?
      9. Food quality corruption …where to start, there is so much!
      10. Electro-magnetic proliferation. Totally disrupts the UN-conscious person’s Energy Field. “Let me count the ways” this is done!

      These are but a few used by the manipulations. ALL this is a deliberate assault on your Senses (5 major physical ones), or, your consciousness, for that is the INTENT of it.
      If you physical health is in turmoil, encouraged by their assault, there goes your consciousness …you are not focused on Higher perspectives and that is what overrides and restores the Physical – the lowest layer of your vibration.
      One needs to be WISE to the GAME being PLAYED. You/we are being FIDDLED, like the violin, in every way that they can come up with! Remember the word used when being CONned out of money …FIDDLED the books …on and on!
      It is a bit like the old legalese saying of “Throw the book at them and maybe, just maybe, something will stick”.
      It is WITHOUT DOUBT the same old same old DIVIDE & CONQUER tactic from the laggards!
      The moment one SUBSCRIBES to that/their Game Playing, you have been railroaded …BIG TIME!

      These distractions work in essentially two ways;
      1. Take your MIND (mined) off the ball – your TRUE PURPOSE – Self Master-Ship,
      2. To keep your VIBRATION low, or, down, down, down, sub-servient, a Slave!
      You see, “A house divided within itself, cannot stand” = POLarisation = Extremes = Unbalanced.
      So what is the best way to deal with is and how best to direct your Energy, your Consciousness?

      If each and every person (your BEing) remained in the Heart, Center Balanced, which is the PERFECT out-picturing of Cosmic Consciousness, then there is no way that they/anything can affect you. From a Physics angle, the “Heart” is, in Electrical Energy speaking terms = to your TORIAL FIELD)
      “Though I walk through the valley of the shadow of death, I shall fear no evil” applies here!!!
      If you doubt it, then there is your consciousness, outplaying your thoughts! You are out of the HEART CENTRE, also termed, “The Middle Way”. (Doubt? = Wisdom required!)
      If I could explain it any simpler, I would. Somehow, many people tend to think it cannot be so simple? Yet, it IS!
      The only person that matters is your-SELF.
      If you get your Energy Field centered, the rest follows and the Domino Principle occurs (Resonance) to change the outer view.
      So care not what others do …Get yourself RIGHT …In the Centre, no polarity in the Heart.
      Then as you SPEAK your PURE HARMONIOUS WORDS (or thoughts), they manifest accordingly.
      It is all about VIBRATION! Everything is Vibration.

      Putin is doing his thing, Obama is doing his (even though it is totally disharmonious, out of balance, it is still valid), you/we need to do our thing …it is FREE WILL being outplayed, always!

      Get thee WISDOM and in all thy getting get UNDERSTANDING! – Lanto
      WISDOM comes from DIRECT EXPERIENCE. Thus you must prove Cosmic Law only to your-SELF, no one else!
      Or, “Get yourself right with God and all else will follow!”

      “If you want to find the secrets of the Universe, think in terms of energy, frequency, and vibration.” – Nikola Tesla
      “Most persons are so absorbed in the contemplation of the outside world that they are wholly oblivious to what is passing on within themselves.” – Nikola Tesla, My Inventions: The Autobiography of Nikola Tesla

      These recent posts on Zen’s are well worth your investment!…
      http://www.zengardner.com/radical-contemplation-changing-the-world-from-the-inside-out/
      http://omnithought.org/why-words-more-powerful-than-swords/3007

  2. Deborah says:

    This is an EXCELLENT article Jean….and I agree completely with your comment above!!!!
    Hugs ~ Deborah

    • Jean says:

      Thanks, Deborah, and hugs . . . I thought it brought great hope . . . to avoid WWIII, and to bring the cabal to its knees. Putin isn’t dumb, and although he is protecting his own country and those who join with him, he is also helping us here at home. When this is over, though, we will still need to contend with the cabal here in our own country, because I think they will not have disappeared. We are still going to be in dire straights as a country . . . but that is a whole other subject! Hugs, ~Jean

  3. hannacora says:

    MAY BE OF INTEREST

    Cultural Marxism Explained In 7 Minutes

    Published on Jan 2, 2016
    To understand the emergence of political correctness, social justice, modern feminism, etc., one must first understand the history of critical theory/Cultural Marxism.

    What Is Cultural Marxism?
    Tyler Durden’s pictureSubmitted by Tyler Durden on 01/08/2016 18:30 -0500
    http://www.zerohedge.com/news/2016-01-08/cultural-marxism-explained-7-minutes
    Submitted by Joseph Salerno via The Mises Institute,

    This is an excellent short video explaining the source and nature of Cultural Marxist movements like political correctness, modern feminism, pansexualism, multiculturalism, “whiteness studies,” etc.

    For an in-depth critique of the thinkers whose writings shaped Cultural Marxism, see Fools, Frauds and Firebrands: Thinkers of the New Left by the eminent British philosopher Roger Scruton. Scruton brilliantly exposes the pretensions, obscurities, and inanities of Sartre, Foucault, Galbraith, Marcuse, Lukacs, Habermas, Adorno, Rawls, Dworkin and others of their ilk.

    The book is not just a philosophical tract but a work in critical political economy and contains one of the most penetrating discussions of the Marxist labor theory of value that I have ever read.

  4. Pingback: Russia Breaking Wall St Oil Price Monopoly, by F. William Engdahl . . . this is the article today of real importance! ~J | Johnsono ne'Blog'as

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