This Too Shall Pass: Nothing is Going to Change With US – Saudi Relations No Matter Whom They Murder

Despite the hemming and hawing we hear from credible journalists about the dismemberment of Saudi dissident and Washington Post journalist Jamal Khashoggi, don’t kid yourself. Nothing will be done.

by O Society Oct 14, 2018

It’s difficult to read his fiancée’s  take on this without feeling empathy for her over the murder. Walk a mile in her burka. Not only did he get murdered gangster style, there’s no way she can not hear about it wherever she goes because her wedding complications are splattered all over the world’s media.

She believes Khashoggie died a patriot. Maybe he did. I don’t know.

My position is simple: I am against the murder of human beings.

I do know enough not to trust the mainstream narrative sold in either Saudi or America any longer. This isn’t paranoia; it’s an objective observation of the propaganda engines in both countries.

See the fog coming?

I do know the Washington Post was Khashoggi’s employer, which explains why he has so many friends amongst the media and politicians:

Khashoggi has an enormous number of friends in Washington DC. Mainstream journalists see him as of one of their own. Like them, they feel, he does not deserve such ghastly fate. The neoliberals as well as the neoconservatives liked him. Many people in Congress know him personally. They activated procedures under the Global Magnitsky Human Rights Accountability Act that will lead to sanctions against Saudi figures. Media, banks, and well-known personalities pulled out of a three-day financial conference in Riyadh dubbed “Davos in the Desert”.

Trump is under pressure to ‘do something’, to punish the Saudis and especially MbS.

The Saudis know what is coming and they are not without defenses. In response to the sanction threats, they released a ‘fuck you’ statement and openly threaten any sanctions will be responded to with some 30 painful measures.

I believe Donald Trump and Saudi clown prince Mohammed bin Salman (also known by his rap gangster name MbS) are incapable of empathy. They grew up too rich and too damaged to care about human beings.

Their “relationship” is purely transactional, pure sociopath: what can you do for me?

The clown princes. Making people disappear like Tony Montana.

13a26461d9484b889ac65394a3765e3f.jpg

Despite the rending of clothes and gnashing of teeth we hear from solid reporters about Saudi women who go for a drive and then disappear forever more, as Loujain al-Hathloul did, it’s no big deal. Those “civil rights” were never meant to be real; they’re meant to placate a fawning American celebrity media composed of more than one idiot.

Loujain al-Hathloul

So everyone is threatening everyone today. However, it won’t be long and the newscycle will dredge up something new. That’s Donald Trump’s function. Manufacture some drama. Then whatever it is, the Kremlin, Kavanaugh, Khashoggi… this too shall pass.

Americans don’t remember much of anything for long, due to watching decades of Short Attention Span Theater.

RTX6EQPT.jpg

See? Now everyone is wondering whether crazy what’s his name is showing the guy with the big desk pictures of his wife’s Oval ass.

What were we talking about?

Oh yeah. Why? Because the United States and Saudi Arabia are tag team partners in waging a war of terrorism on the rest of the Middle East.

1_Banner.png

Why are the US and Saudi Arabia Best Friends Forever? Because money.

“I love the Saudis!” Donald Trump

Didn’t the Saudis blow up 3,000 Americans on 9/11?

201732112202249.jpg

“Who blew up the World Trade Center? It wasn’t the Iraqis, it was Saudi — take a look at Saudi Arabia, open the documents!” Donald Trump

Here they are now, the bastards:

saudi-911-terrorists

They said, “Never forget!!!” Umm, so… how come we forgot?

The world reserve currency. It’s the U$ dollar, isn’t it?

However, the United Nations says the Great Recession of 2008 proved the “current dollar standard is both unstable and inequitable.”

What if

“The U.S. dollar’s share of currency reserves reported to the International Monetary Fund fell in first quarter of 2018 to a fresh four-year low, while euro, yuan, and sterling’s shares of reserves increased, according to the latest data from the International Monetary Fund.”

Using the dollar as the world currency could become an issue. What if China… or Russia… or Iran stopped using the dollar for something like… oh, say… oil?

It’s key to how the system works. Used to be there was gold backing up US Currency. At one time you really could go down to Fort Knox (or wherever it was stored) with a wheelbarrow full of green paper money, and exchange it for gold.

Now that gold standard is gone, and the US Treasury basically can print as much money as it wants to print. There would be inflation if the Treasury prints a crazy amount of bills. More bills makes each one less valuable, so the number of bills you need to buy something goes up.

The US is now a debt-based economy. Credit cards, student loans, mortgages, car loans… Americans are up to our eyebrows in debt, as human beings have become commodities. 
In economic terms, the debt:GDP ratio keeps getting bigger in the US. As our debt goes up, our gross domestic product goes up too, but not at the same rate. Our debt goes up faster than what we produce. We are becoming a de-industrialized society. We still make weapons, but now everything else says Made in China.
Trump is an idiot, but he knows he can’t let gas prices get high and he needs to pimp our arms sales. This makes our debt:GDP situation look better. Trump knows if the economy crashes due to oil or mortgage or stock market issues, he’s done playing gold-plated dictator.

One question is whether our next debt crash will happen before or after Trump’s re-election in 2020. The other question is whether MbS has successfully usurped his position on the game of thrones and disposed of his rivals.

Got_Saudi.jpg

Saudi Arabia produces more oil than anyone in the world. The Saudis agree to sell their oil in US dollars. For consistency, everyone else uses US dollars to buy/ sell oil too. Nobody wants to deal with exchanging 100 different currencies. The dollar is reasonably stable. To a large degree, our entire world economy is based on $ and oil.

If the Saudis begin only buying/ selling in a currency other than the dollar, other oil producers of the world could do the same thing. Then all of a sudden there is nothing tangible attached to the dollar’s value. No commodity. No gold. No oil.

This gives Saudis leverage on America. Middle East sovereignty and stability is key to the US for obvious reasons. So we keep the Saudis afloat.

Oil is a limited resource. Finite. So one day the Saudi oil fields will go dry. Therefore, there is no static reason this world economy has to be set up this way. It can’t last forever.

Our world economy has to diversify off the oil and dollar if we want to do something about global warming. Remaining devoted to “free market” fossil fuel fundamentalism is going to get us all killed. These hurricanes and forest fires are just the beginning

Not to speak ill of the dead, but rather to speak frankly, I never heard of this Khashoggi person until he died. It certainly isn’t as if the American public is angry for losing one of its journalistic heroes. The media is telling all of us we need to be angry and shocked. And so, the brave new world of bobblehead dolls washes the story down with a Soma tablet and off we go… but why?

The self-fellating media are aghast one of their own can be tossed down the disposal.

bo181016_.png

The gangster feud between DJT and Mbs needs to use this story as leverage to get what they want out of each other.

There are arm sales, 9/11 information, oil sales, stock market crashes, and even nuclear weapons for the two clown princes to argue over.

Maybe this is all an epic dance off gangster rap video, just as the Korean Rocket Man vs. Donnie the Dotard on Twitter turned out to be. Half-wit psychopaths playing “my dick is bigger than yours” for all to see.

Maybe we’re over thinking this. It’s DJT and MbS. It’s about threats and disrespect.

petrodollar-definition.gif

Here’s more on the petrodollar from The Balance:

Petrodollars and the System that Created It 

The petrodollar is any U.S. dollar paid to oil-exporting countries in exchange for oil. Since the dollar is a global currency, all international transactions are priced in dollars. As a result, oil-exporting nations must receive dollars. That makes their national income dependent on the dollar’s value. If it falls, so does the government’s revenue.

As a result, most of America’s trade partners also peg their currencies to the dollar. That way, if the dollar’s value falls, so does the price of all their domestic goods and services. That helps these countries avoid wide swings in inflation or deflation.

The Coming Collapse of the Petrodollar?

The United States uses the power of petrodollars to enforce its foreign policy. But many countries don’t fight back. They are afraid it would mean the collapse of the petrodollar.

For example, the United States sanctioned Iran for refusing to halt its development of potential nuclear weapons. Similarly, it hit Russia with trade embargoes for invading Crimea and creating a crisis in Ukraine. As a result, these countries signed a five-year trade deal with each other that is worth $20 billion. Critically, it is not priced in dollars, and it includes the sale of Iran’s oil.

Venezuela and Iran also signed oil contracts in their currencies instead of petrodollars. China called for a replacement of the U.S. dollar as a global currency. Ironically, it is one of the largest foreign holders of the dollar. China influences the U.S. dollar by pegging its currency, the yuan, to it.

Will these rogue attacks cause a dollar collapse? No, at least not for the near future. That is because there is no good alternative. The euro is the second-most circulated currency. It has undergone attack from within, thanks to the Eurozone crisis.

Interesting how today our so-called “bad guys” aren’t really James Bond villains intent on blowing up the world or at least killing millions of their own people. They ain’t Chairman Mao, Der Führer Hitler, and Great Purge Stalin, are they?

But the bad guys maybe are doing some mischief to US economic global hegemony…

Hillary Clinton’s documents show “Gaddafi’s gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar,” was the prime reason to sodomize him with a bayonet.

Saddam was the real Great Satan, wasn’t he?

greenspan-quote.gif

You’d expect the US and our heavy hitter allies to be the “good guys,” wouldn’t you? That’s how it works in the movies. The Pentagon pays Hollywood to make certain we’re the good guys.

In the movies.

How come the US allies with right-wing extremist dictators all the time? You know, like that Netanyahoo guy in Israel who murders peaceful protesters. Oh, yeah… money.

And  Ko-rean communists better keep their hands off our loot, or they’ll end up in mass graves! That’s how neoliberalism rolls!

Sooo… how come the #1 US ally is a fundamentalist Muslim terrorist monarchy called Saudi Arabia, who still publicly beheads people to get its message across to its citizens?

MBS

By now, we’re all wondering, Damn!  Just how does the Kingdom of Saudi Arabia solve this maintaining the dollar as the world currency problem for America?

The Untold Story Behind Saudi Arabia’s 40-Year U.S. Debt Secret

How a legendary bond trader from Salomon Brothers brokered a do-or-die deal that reshaped U.S.-Saudi relations for generations.

By Andrea Wong  Bloomberg

Failure was not an option.

It was July 1974. A steady predawn drizzle had given way to overcast skies when William Simon, newly appointed U.S. Treasury secretary, and his deputy, Gerry Parsky, stepped onto an 8 a.m. flight from Andrews Air Force Base. On board, the mood was tense. That year, the oil crisis had hit home. An embargo by OPEC’s Arab nations—payback for U.S. military aid to the Israelis during the Yom Kippur War—quadrupled oil prices. Inflation soared, the stock market crashed, and the U.S. economy was in a tailspin.

Officially, Simon’s two-week trip was billed as a tour of economic diplomacy across Europe and the Middle East, full of the customary meet-and-greets and evening banquets. But the real mission, kept in strict confidence within President Richard Nixon’s inner circle, would take place during a four-day layover in the coastal city of Jeddah, Saudi Arabia.

The goal: neutralize crude oil as an economic weapon and find a way to persuade a hostile kingdom to finance America’s widening deficit with its newfound petrodollar wealth. And according to Parsky, Nixon made clear there was simply no coming back empty-handed. Failure would not only jeopardize America’s financial health but could also give the Soviet Union an opening to make further inroads into the Arab world.

It “wasn’t a question of whether it could be done or it couldn’t be done,” said Parsky, 73, one of the few officials with Simon during the Saudi talks.

1400x-1
Treasury Secretary William Simon, left, sits with Nancy Kissinger and Secretary of State Henry Kissinger as they listen to former President Nixon talk to his staff prior to leaving the White House for the last time, August 9, 1974. Source: AP Photo

At first blush, Simon, who had just done a stint as Nixon’s energy czar, seemed ill-suited for such delicate diplomacy. Before being tapped by Nixon, the chain-smoking New Jersey native ran the vaunted Treasuries desk at Salomon Brothers. To career bureaucrats, the brash Wall Street bond trader—who once compared himself to Genghis Khan—had a temper and an outsize ego that was painfully out of step in Washington. Just a week before setting foot in Saudi Arabia, Simon publicly lambasted the Shah of Iran, a close regional ally at the time, calling him a “nut.”

But Simon, better than anyone else, understood the appeal of U.S. government debt and how to sell the Saudis on the idea that America was the safest place to park their petrodollars. With that knowledge, the administration hatched an unprecedented do-or-die plan that would come to influence just about every aspect of U.S.-Saudi relations over the next four decades (Simon died in 2000 at the age of 72).

The basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending.

It took several discreet follow-up meetings to iron out all the details, Parsky said. But at the end of months of negotiations, there remained one small, yet crucial, catch: King Faisal bin Abdulaziz Al Saud demanded the country’s Treasury purchases stay “strictly secret,” according to a diplomatic cable obtained by Bloomberg from the National Archives database.

With a handful of Treasury and Federal Reserve officials, the secret was kept for more than four decades—until now. In response to a Freedom-of-Information-Act request submitted by Bloomberg News, the Treasury broke out Saudi Arabia’s holdings for the first time this month after “concluding that it was consistent with transparency and the law to disclose the data,” according to spokeswoman Whitney Smith. The $117 billion trove makes the kingdom one of America’s largest foreign creditors.

Yet in many ways, the information has raised more questions than it has answered. A former Treasury official, who specialized in central bank reserves and asked not to be identified, says the official figure vastly understates Saudi Arabia’s investments in U.S. government debt, which may be double or more.

The current tally represents just 20 percent of its $587 billion of foreign reserves, well below the two-thirds that central banks typically keep in dollar assets. Some analysts speculate the kingdom may be masking its U.S. debt holdings by accumulating Treasuries through offshore financial centers, which show up in the data of other countries.

gas

Drivers line up for fuel at a U.S. gas station during the worldwide fuel shortages caused by the oil embargo imposed by OPEC, circa 1974.

Photographer: Pictorial Parade/Archive Photos/Getty Images

Exactly how much of America’s debt Saudi Arabia actually owns is something that matters more now than ever before.

While oil’s collapse has deepened concern that Saudi Arabia will need to liquidate its Treasuries to raise cash, a more troubling worry has also emerged: the specter of the kingdom using its outsize position in the world’s most important debt market as a political weapon, much as it did with oil in the 1970s.

In April, Saudi Arabia warned it would start selling as much as $750 billion in Treasuries and other assets if Congress passes a bill allowing the kingdom to be held liable in U.S. courts for the Sept. 11 terrorist attacks, according to the New York Times.

The threat comes amid a renewed push by presidential candidates and legislators from both the Democratic and Republican parties to declassify a 28-page section of a 2004 U.S. government report that is believed to detail possible Saudi connections to the attacks. The bill, which passed the Senate on May 17, is now in the House of Representatives.

Saudi Arabia’s Finance Ministry declined to comment on the potential selling of Treasuries in response. The Saudi Arabian Monetary Agency didn’t immediately answer requests for details on the total size of its U.S. government debt holdings.

“Let’s not assume they’re bluffing” about threatening to retaliate, said Marc Chandler, the global head of currency strategy at Brown Brothers Harriman. “The Saudis are under a lot of pressure. I’d say that we don’t do ourselves justice if we underestimate our liabilities” to big holders.

600x-1
President Nixon shakes hands with Saudi King Faisal in June, 1974 in Saudi Arabia. Photographer: Dirck Halstead/Liaison via AP Photo

Saudi Arabia, which has long provided free health care, gasoline subsidies, and routine pay raises to its citizens with its petroleum wealth, already faces a brutal fiscal crisis.

In the past year alone, the monetary authority has burned through $111 billion of reserves to plug its biggest budget deficit in a quarter-century, pay for costly wars to defeat the Islamic State, and wage proxy campaigns against Iran. Though oil has stabilized at about $50 a barrel (from less than $30 earlier this year), it’s still far below the heady years of $100-a-barrel crude.

Saudi Arabia’s situation has become so acute the kingdom is now selling a piece of its crown jewel—state oil company Saudi Aramco.

What’s more, the commitment to the decades-old policy of “interdependence” between the U.S. and Saudi Arabia, which arose from Simon’s debt deal and ultimately bound together two nations that share few common values, is showing signs of fraying. America has taken tentative steps toward a rapprochement with Iran, highlighted by President Barack Obama’s landmark nuclear deal last year. The U.S. shale boom has also made America far less reliant on Saudi oil.

“Buying bonds and all that was a strategy to recycle petrodollars back into the U.S.,” said David Ottaway, a Middle East fellow at the Woodrow Wilson International Center in Washington. But politically, “it’s always been an ambiguous, constrained relationship.”

Yet back in 1974, forging that relationship (and the secrecy that it required) was a no-brainer, according to Parsky, who is now chairman of Aurora Capital Group, a private equity firm in Los Angeles. Many of America’s allies, including the U.K. and Japan, were also deeply dependent on Saudi oil and quietly vying to get the kingdom to reinvest money back into their own economies.

“Everyone—in the U.S., France, Britain, Japan—was trying to get their fingers in the Saudis’ pockets,” said Gordon S. Brown, an economic officer with the State Department at the U.S. embassy in Riyadh from 1976 to 1978.

For the Saudis, politics played a big role in their insistence that all Treasury investments remain anonymous.

Tensions still flared 10 months after the Yom Kippur War, and throughout the Arab world, there was plenty of animosity toward the U.S. for its support of Israel. According to diplomatic cables, King Faisal’s biggest fear was the perception Saudi oil money would, “directly or indirectly,” end up in the hands of its biggest enemy in the form of additional U.S. assistance.

Treasury officials solved the dilemma by letting the Saudis in through the back door. In the first of many special arrangements, the U.S. allowed Saudi Arabia to bypass the normal competitive bidding process for buying Treasuries by creating “add-ons.” Those sales, which were excluded from the official auction totals, hid all traces of Saudi Arabia’s presence in the U.S. government debt market.

“When I arrived at the embassy, I was told by people there that this is Treasury’s business,” Brown said. “It was all handled very privately.”

By 1977, Saudi Arabia had accumulated about 20 percent of all Treasuries held abroad, according to The Hidden Hand of American Hegemony: Petrodollar Recycling and International Markets by Columbia University’s David Spiro.

Another exception was carved out for Saudi Arabia when the Treasury started releasing monthly country-by-country breakdowns of U.S. debt ownership. Instead of disclosing Saudi Arabia’s holdings, the Treasury grouped them with 14 other nations, such as Kuwait, the United Arab Emirates and Nigeria, under the generic heading “oil exporters”—a practice that continued for 41 years.

treasuries

The system came with its share of headaches. After the Treasury’s add-on facility was opened to other central banks, erratic and unpublicized foreign demand threatened to push the U.S. over its debt limit on several occasions.

An internal memo, dated October 1976, detailed how the U.S. inadvertently raised far more than the $800 million it intended to borrow at auction. At the time, two unidentified central banks used add-ons to buy an additional $400 million of Treasuries each. In the end, one bank was awarded its portion a day late to keep the U.S. from exceeding the limit.

Most of these maneuvers and hiccups were swept under the rug, and top Treasury officials went to great lengths to preserve the status quo and protect their Middle East allies as scrutiny of America’s biggest creditors increased.

Over the years, the Treasury repeatedly turned to the International Investment and Trade in Services Survey Act of 1976—which shields individuals in countries where Treasuries are narrowly held—as its first line of defense.

The strategy continued even after the Government Accountability Office, in a 1979 investigation, found “no statistical or legal basis” for the blackout. The GAO didn’t have power to force the Treasury to turn over the data, but it concluded the U.S. “made special commitments of financial confidentiality to Saudi Arabia” and possibly other OPEC nations.

Simon, who had by then returned to Wall Street, acknowledged in congressional testimony that “regional reporting was the only way in which Saudi Arabia would agree” to invest using the add-on system.

“It was clear the Treasury people weren’t going to cooperate at all,” said Stephen McSpadden, a former counsel to the congressional subcommittee that pressed for the GAO inquiries. “I’d been at the subcommittee for 17 years, and I’d never seen anything like that.”

Today, Parsky says the secret arrangement with the Saudis should have been dismantled years ago and was surprised the Treasury kept it in place for so long. But even so, he has no regrets.

Doing the deal “was a positive for America.”

GettyImages-852744726-1538714777-e1538714849792.jpg

For Further Reading About How We Know Saudi Arabia Is The Source of Muslim Terrorism And How United States Politicians Take Money From Saudis To Normalize This Scam, see below…

Oops! Did I say Normalize?

Do we realize how abnormal normal really is now?

Declassified 28 pages from report of Congressional Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 11

Trump administration to sell nuclear weapons to Saudi Arabia

Saudi Arabia and the United States continue negotiations to build reactors in the kingdom

WikiLeaks – Clinton email acknowledgement Saudis fund ISIS and other Sunni terrorists

The Saudi Lobby Juggernaut

WikiLeaks cables portray Saudi Arabia as a cash machine for terrorists

Wikileaks – Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide

In our 65-plus years of experience working on U.S. Middle East policy, we’ve never seen anything like the Trump administration’s willingness to prostitute American interests to Saudi Arabia.

Donald Trump Said Saudi Arabia Was Behind 9/11. Now He’s Going There on His First Foreign Trip.

This is Why the Aliens Won’t Talk to Us

Lockheed Martin and General Dynamics Help Saudis Kill School Bus Filled with Children

‘We Misled You’: How the Saudis Are Coming Clean on Funding Terrorism

Kingdom of Saudi Arabia Gives Clinton Foundation $10-25 Million

Saudi Arabia Is the Biggest Buyer of U.S. Arms

17 Years After 9/11, the US is Allied with Al Qaeda in Syria and Yemen

5 Times the US Actively Supported ISIS or Similar Groups (Yes, Actively)

How long until we abandon the petrodollar?

Theresa May urged not to suppress report into funding of Saudi jihadi groups

Congress suddenly has buyer’s remorse for overriding Obama’s veto of law which allows 9/11 victims’ families to sue Saudi Arabia.

Sunni vs Shia: the roots of Islam’s civil war How this conflict – played out in the rivalry between Iran and Saudi Arabia – is destabilizing the world.

Dance, monkey, dance!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s