Why is it that everything fungible like Oil and Money is the source of all our evils…?
We are about to reap the whirlwinds, folks…! As even the Davos Vampire Squids are realizing the shitstorm they’ve created…! In their Global Risks Report 2012 (PDF 64pgs!) , they forsee ‘Major Systemic Financial Failure,’ ‘Extreme volatility in energy and agriculture prices,’ Chronic fiscal imbalances,’ Recurring liquidity crises,’ and, Severe income disparity.’ Coupled with; ‘Rising greenhouse gas emissions,’ ‘Failure of climate change adaptation,’ ‘Irremediable pollution,’ and, ‘Land and waterway use mismanagement.’ Read it and weep, folks…!
Just listen to what George Soros had to say recently…
…Has the short seller gone soft? …“At times like these, survival is the most important thing”…
…As he sees it, the world faces one of the most dangerous periods of modern history—a period of “evil.” Europe is confronting a descent into chaos and conflict. In America he predicts riots on the streets that will lead to a brutal clampdown that will dramatically curtail civil liberties. The global economic system could even collapse altogether.
…“We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”
Now, as the ever intrepid, Pepe Escobar wrote recently…
The Iranian oil embargo blowback
…According to the EU sanctions package, all existing contracts will be respected only until July 1 – and no new contracts are allowed. Now imagine if this pre-emptive Iranian legislation is voted within the next few days. Crisis-hit Club Med countries such as Spain and especially Italy and Greece will be dealt a deathblow, having no time to find a possible alternative to Iran’s light, high-quality crude.
Saudi Arabia – whatever the oily spin in Western corporate media – does not have the spare capacity; and on top of it, the absolute priority for the House of Saud is high oil prices, so it can bribe – apart from repressing – its own population into forgetting about noxious Arab Spring ideas.
So yes, already broken European economies would be forced to keep buying Iranian oil, but now from the winners of choice – middlemen vultures.
Not surprisingly, the losers lost in these Cold War tactics anachronistically applied to a global open market are the Europeans themselves. Greece – already facing the abyss – has been buying heavily discounted oil from Iran. The strong possibility remains of the oil embargo precipitating a Greek government bond default – and even a catastrophic cascade effect in the eurozone (Ireland, Portugal, Italy, Spain – and beyond).
The world needs a digital Herodotus to decode how these European poodles who claim to represent “civilization” were able, in a single stroke, to inflict simultaneous pain on Greece – the cradle of Western civilization itself – and Persia – one of the most sophisticated civilizations in history. In an astonishing historical replay of tragedy as farce, it’s as if Greeks and Persians were bonded together at the Thermopylae facing the onslaught of North Atlantic Treaty Organization armies.
Seriously, watch what’s about to transpire in the EU…
…”Generally, the parties to incur damage from the EU’s recent decision will be European companies with pending contracts with Iran,” Ahmad Qalebani, head of the National Iranian Oil Co. told the ISNA news agency.
“The European companies will have to abide by the provisions of the buyback contracts,” he said. “If they act otherwise, they will be the parties to incur the relevant losses and will subject the repatriation of their capital to problems.”
By turning the sanctions back on the EU, Iranian lawmakers hope to deny Europe the six-month window it had planned to give those countries most dependent on Iranian oil – including some of the most economically fragile – time to adapt…
As I’ve been screaming about recently… We’re screwing the pooch…!
Now, if you aren’t paying attention, our Government is anticipating the potential blowback…! POLICE STATE AMERICA: FEMA Camp Rendition Hubs Discovered…
Coming to a neighborhood near you…!