Saudi Arabia Shows Off Chinese Missiles
I saw this headline over the weekend and could only think to myself, this is bad, really bad. After opening the link…BAM! Right under the headline is the statement “Saudis send message to United States, Iran in military parade.” Well yes, they did.
I must confess that I did not know that the Saudis even had Chinese missiles but this was one of the dots that I’ve speculated was going to be “connected.” We have known of high level Chinese/Saudi talks over the last six months and also of the meeting between Prince Salman and the Chinese President just a couple of months back. It is very important that you understand the symbolism being displayed here. These Chinese missiles were not meant to impress their populace (well maybe) they were not meant to scare the U.S., Iran (maybe) or any of their neighbors…Saudi Arabia made a very big, very loud statement for anyone willing to listen. These missiles were 25 years old and only a small part of the arsenal “display” but they did not have the stamp “Made in America” on them which is oh so important.
We knew that Saudi Arabia has been public about their displeasure with how the U.S. has handled the Syria situation. We also knew that they recently sacked their intelligence chief, Prince Bandar who was one of their most “pro U.S.” officials. We have had these previous pieces to put together which showed a picture of the Saudis slipping away from the U.S. and towards China, parading these missiles was not by mistake nor without thought. No, Saudi Arabia I believe just made a statement that the U.S., the Chinese and the rest of the world cannot mistake. I also believe that this is merely a “warm up” for what naturally follows.
Displaying these missiles in my opinion was pure and simple “business,” let me explain. I would expect that at any time now we may hear that Saudi Arabia will accept payment for their oil in something other than dollars. They may include several acceptable currencies or maybe they will skip the “courtship” altogether and require Yuan. This would be the most drastic move and probably statistically least likely but it is a possibility. The point is this; the Saudis have now put the U.S. “on notice.” I would say that this is the equivalent of a long lasting marriage that has gone downhill over the years and now one spouse is leaving an envelope from a well-known divorce attorney out in the open and on the kitchen table. Make no mistake this was done purposely and publicly.
I wrote about this last week in “The Nuclear Option?” where I speculated that part of the “plan” would be a switching of sides by Saudi Arabia. This now appears quite likely. I do want to remind you that if it were not for the Saudis accepting ONLY dollars for oil from 1973 on, we would not be where we are today. It allowed the U.S. to blow up the biggest paper fiat/debt bubble in the history of the world by MANY orders of magnitude. Were it not for this deal cut by Henry Kissinger, I believe that it would have been highly likely that the inflation that led to the 1980-82 twin recessions would have gone “hyper” and history would be very very different today. The “demand” that was created for dollars by this deal allowed the U.S. to plaster the entire world with dollars. In fact, because you could only buy oil with dollars, dollars became the lifeblood of every nation on the planet. Without dollars, no nation could have survived because in effect they would have been shut off from oil. This has been changing slowly for maybe the last 10 years and changing more rapidly now, we very well could see this culminate in a “flashpoint” where the dollar becomes an unacceptable pariah.
I am curious to see what will happen over the next days, weeks and months as both Saddam Hussein and Mohamar Qaddafi quickly met their maker after announcing plans to sell oil in euros. My questions on this are wide ranging. Were the Saudis to announce the acceptance of “non dollars” for oil, will the U.S. now come up with a reason to invade them? In past years with past presidents I have no doubt that this somehow would have been arranged, your guess is as good as mine with the current occupant. Of course then the questions swing to Russia, China and the Eurozone. Will Europe pay Russia in rubles? Or God forbid gold (if they even have it to deliver). Will Russia even accept euros as payment? Maybe, maybe not. What about China? Will Saudi Arabia now become their supplier and divert U.S. bound oil to China?
How does the ally of Russia, Iran fit into all of this? The Saudis clearly are not pals with the Iranians but do they now tolerate Iran if they are doing business with China…who is business partners with Russia…who are sympathetic to the Iranians? Where does this leave Israel? Please remember that the Chinese and Russians are set to ink a “Holy Grail” energy/pipeline deal this month …was this display of Chinese missiles the equivalent of the Saudis “serving” divorce papers to the U.S.?
There are all sorts of questions and I obviously don’t have the inside knowledge or the answers but there are lots of clues. As I wrote last week, I believe that Russia and China know that we (the West) are in a much weakened financial state. I also believe that they have probably already received for delivery some of the pre “1960” gold bars that James Turk has reported are now showing up all over the world. Has this tipped our hand?
Let me expand on this a little and sorry if it is a bit of a rehash of my piece last week but this is very important. It only makes sense from a “strategy” standpoint to pull ALL of the triggers at once. The display of Chinese missiles by the Saudis only fits in “time wise” with what else is going on. Russia can now invade the Ukraine; they have the troops and machinery amassed to do this. On Friday there were deaths of many pro Russians in the Ukraine so Mr. Putin now has the green light politically to do this. We also know that China and Russia are set to ink a massive energy and pipeline deal within the next several weeks. Saudi Arabia was a lingering question mark in all of this …until now. I could be wrong but it looks to me like this “dot” just got connected to all the rest. If my analysis or theory holds any water, it looks like all system is now “go” for the isolation of the U.S.
Wow, Very interesting but if it heads towards an alliance with these nations essentially isolating the U.S. wouldn’t it be more like whats good for the goose is good for the gander as for the U.S. Our behavior of late has certainly made this all too easy.
I’m afraid so.
Saudi Arabia will not switch sides until China announces that its Yuan’s purchasing-power is solidified, and its price is anchored to Gold for many decades.
The Zero Hedge report, “China, Russia Military Ties Deepen With Naval Drill In East China Sea”, Submitted by Tyler Durden on 05/02/2014 22:09 -0400, states the following:
“Perhaps of more lasting importance, Russia and China have been significantly boosting their energy ties, which could solidify a more long-term relationship between them. Most notably, in June of last year Rosneft, Russia’s state-owned energy giant, agreed to double its oil exports to China. Under the deal, which was worth an estimated $270 billion, Russia will ship 365 million tons of oil to China over the next 25 years.
Similarly, numerous signs suggest that after a decade of ongoing talks, Russia and China are in the final stages of negotiating a massive 30-year natural gas supply deal. Once the deal is completed, according to Bloomberg News, Russia’s “Gazprom plans to supply as much as 38 billion cubic meters of gas to China, about 24 percent of the company’s deliveries to Europe last year.” Achieving this will require the construction of a massive pipeline to carry the natural gas from eastern Russia into China. Russia will reportedly need to spend about $22 billion to build the pipeline.
The two sides are hoping that the deal will be ready in time for Putin’s trip to China on May 20, which will take place immediately prior to the joint naval drills.” (http://www.zerohedge.com/news/2014-05-02/china-russia-military-ties-deepen-naval-drill-east-china-sea)
No two sovereign countries could sign a 25 and/or 30 year contract unless the designated currency’s purchasing-power was solidified and stable for at least the term of the contracts. The in this case the Chinese Yuan has the highest probability for being the designated currency. Therefore, the price of the Yuan should be fixed and anchored to Gold before May 20, 2014.
you then are connecting this dot by May 20
YES!! If you reply by my e-mail address, we could be more detailed in my responses.
Retrospective persons deeply believe that the “Best defense is a strong Offense”, therefore they are mostly very aggressive.
The current seven members of the CPC Standing Committee of Political Bureau are all Prospective persons, and they rely on a 7,500 year Chinese history, and believe that the best defense is to neutralize an antagonist. Therefore they spend their resources on equipment that will counteract and neutralize any potential aggressor’s weapon systems. It is much easier and less expensive to solve an existing problem (weapon) than to generate a new problem (weapon).
The combination of both China and Russia have been able to develop weapons and technology that are able to neutralize almost all of the US military weapons and stealth technology
Great food for thought, Bill.
I hope Victor is right — his logic is plausible and defensible — and that May 20th is the trigger date.
I do not think Russia will invade Ukraine. There is ugly bloodshed going on, but the Ukraine coupsters and U.S. will soon be in a dead flat spin from which they will not be able to pull out. Maybe that is another major impetus for May 20th, to finally put an end to the dollar and the U.S.’ ability to finance terrorism — e.g., Libya, Egypt, Syria — worldwide, and especially in the Ukraine, now.
yes, good thought.
Excellent analysis. You make too much sense, but that’s why I enjoy reading your articles. Thank you for that.
thank you SS.