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Putin says oil wars with Russia will make West bleed

The headline to this linked story, “Putin says oil wars with Russia will make West bleed” is debatable but unfortunately he is correct.  I have watched in amazement as “we” (the West and in particular Mr. Obama) has made error after error on the geopolitical front.  We have threatened and imposed meaningless sanctions but I don’t really believe that anyone in Washington can see the forward ramifications.

Mr. Putin is absolutely correct when he says that Europe “cannot stop buying Russian gas without inflicting pain on itself.”  He also bridges the question of a Saudi cut in price to hurt Russia’s cash flow by suggesting that the dollar will be more affected than the ruble.  This may or may not be true.  The first question is whether or not Saudi Arabia would in fact cut prices?  I have a sneaking suspicion that as Russia pens their “Holy Grail” energy deal with China next month…Saudi Arabia will also make some news of their own but we will see.

I do not have any proof that any deal has been cut or is even in the works.  I do know that the Saudis however have had meetings with both the Russians and the Chinese so something is in the works.  I also believe that Saudi Arabia has watched our actions very closely.  They have publicly voiced their dissatisfaction with us over both Egypt and Syria, now they are watching our “in” activity and useless (petty) sanctions over the Ukraine situation.  My point is this, we are for the very first time showing weakness and now risk losing even the Europeans as allies.  “Losing the Europeans as allies” is a bold statement but I believe this possibility is in play.

Our media has been portraying Mr. Putin as merely “talking his book” which of course everyone would like to do but almost everything that he has said is based in logic.  Europe gets 1/3 or more of their energy from Russia, natural gas in particular cannot be sourced or rerouted from elsewhere because the pipeline infrastructure does not exist.  Mr. Putin has also said that our shale industry would in his words “die” with lower prices.  Maybe this is a bit of an embellishment but the reality is that our shale industry has a much higher cost of production compared to Russia’s…which will certainly hurt us more than them if prices were artificially lowered.  The danger to all of this of course is that an outright war could be kicked off in which everyone is involved rather than most of the world standing by and watching while we do our thing, it is a dangerous situation.

I will switch gears here a little bit but it ties in to a cartoon that is posted below.  What has recently happened out west in Nevada is a travesty of American history.  I do have an opinion on what has happened and I disagree with much of it.  Assuming that the Bundys owe $1 million in taxes (which is disputable), the way this has been handled was ugly to say the least and unfortunately in my opinion only a roadmap of what is to come.  As I understand it, a good part of the Bundy herd had been either taken or shot from helicopters.  I’ve even read of “mass graves” for part of the livestock.

I see all sorts of things that are “wrong” here whether you are a liberal, a conservative or an independent.  First, what must the “liberals” think of slaughtering helpless animals from helicopters?  I haven’t heard any uproar at all on this.  What about the rule of law?  Of course, the news broke last week that Harry Reid is in the middle of doing a solar deal with the Chinese and this land is a necessary part.  When I first heard of his inclusion and that it was related to his personal business dealings I knew this would blow up.  The “militia” in my opinion is merely God fearing Americans who want the Constitution upheld and property rights protected.

We have strayed very very far from following the Constitution over the last 20-25 years and it seems to me like we are close to a breaking point.  Yes a good percentage of the country is either asleep (something they put in the water or in the air via chemtrails?) or on the “dole,” but the other half remains.  Will it be this incident or another one like it that sparks violence?  I have no idea but those with traditional American values have been pushed and pushed and pushed to this point and now even “vilified,” there is as our President so keenly says, “A line in the sand”…somewhere out there.

I wanted to write about both of these topics because they do have several things in common but most importantly they have our currency in common.  Were we to become isolated (even more) internationally then the dollar will become a “shunned” trading vehicle.  Domestically, were we to “split” or fracture with internal unrest, this will also turn the dollar into a pariah.  I don’t say this because of the “unrest” itself.  No, the world is not foolish and they will see “why” there is unrest and what is actually behind it.  The “what’s behind it” is the breakdown in our rule of law which has occurred because morally we have cut so many corners we now look like a circle.

This piece was written over the weekend, while editing it,  Zero Hedge has reported that new sanctions This Means War: US To Target Putin’s Personal $40 Billion Stash are being discussed to sanction Mr. Putin personally.  I cannot tell you how shortsighted this action is if implemented.  And yes, it will mean war if we target Mr. Putin’s wealth personally.