I know, I know, I heard what the Senile Old guy said yesterday:
Biden says on hot mic: "No one fucks with a Biden…" pic.twitter.com/Oo814Z8JY1— Greg Price (@greg_price11) October 5, 2022
Nobody f*cks with him except airplane stairs, DeSantis, boogers on his chin, the English language, oh, and yes, OPEC+.
The first salvo in the upcoming North-South currency war was fired yesterday yet no one seems to have heard a single shot. The US Dollar index looks solid even after the meeting:
The war to decouple from the old world order is well under way and yesterday’s meeting only indicated that the ferocity of the upcoming collapse will be on par with that of the British Empire. The divide is being noticed in Russia, Africa, the Middle East, and of course Asia. The External Affairs Minister of the Emirates Jaishankar said so much yesterday while lambasting the CNBC International reporter:
EAM Jaishankar talks about baises in American media for India in a public meet in Washington DC. Says,"thr are some newspaper you know exactly what they are going to write…Including one in this town" pic.twitter.com/8pasqin41S— Sidhant Sibal (@sidhant) September 26, 2022
This reduction in oil output is almost purely symbolic but also an indication that the royals in Saudi Arabia have had enough of the European-US central bankster clown show. The last domino to fall is coming soon as I outlined that back on September 7th:
Is Saudi Arabia Preparing to Implode the Dollar?
Thus what happened this morning should be seen as a red flag to markets and US policymakers but the bubblevisions will literally ignore the implications of this headline:
For the first time in recent memory, the US will now pay more for all oil products from the House of Saud than the Europeans, Chinese, and every other nation in the world. Yet the media here is silent. The implications of what is about to happen are mind boggling though.
Once the event occurs with China and the Gulf states decoupling from the petrodollar and begin trading in Yuan and Riyals, the US dollar should soar higher as the global destabilization will cause a short term flight to quality. If, and it’s more like when, China elects to occupy Taiwan, the US dollar will collapse as a result. At that point, the end of US hegemony and the very visible economic conflict between North and South will be obvious.
The loss of faith in the dollar, the ability of the US to defends its allies, and the unwillingness of nations and citizens around the globe to be the bag holder for the Federal Reserve and US Treasury. All of this slosh along with unwanted Treasury notes and bills will be sold at any price. People will try to get out of the dollar but the US 2 year Treasury yield will long ago have topped 6% before any pause in the storm occurs.
That’s where the danger lies. Instead of an incremental return of the least loved “global reserve currency” to its own shores, a mad tidal wave or global dump happens. The results of this will be first much higher inflation then worse, hyperinflation. China won’t accept US dollars in trade. The Gulf states neither. The nations of South America, already tired of the political and economic games inflicted on them by the Fed and US government will refuse to take dollars. Inflation would easily top 30% on the phony CPI-U by next summer if not a lot higher.
But don’t worry, nobody f*cks with a Biden.
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