OPEC cut production and they cut production at the behest of China.
KEY POINTS
- Several OPEC+ members on Sunday announced intentions to voluntarily cut a further combined 1.16 million barrels per day of production, in a move independent from the broader bloc’s output strategy.
- The reductions will challenge consumer governments, such as the U.S., which are already tackling high inflation and volatility in the banking sector.
- A formal meeting of an OPEC+ technical committee took place Monday to review the group’s existing strategy.
Several OPEC+ members are set to tighten global production by an additional 1.16 million barrels per day until the end of the year, further burdening central bank efforts to curtail global inflation — but critically protecting the alliance’s broader output strategy from political pressures.
Washington has stepped in to criticize Sunday’s announcement where eight OPEC+ producers — including group leader Saudi Arabia and key allies Kuwait and the UAE — said they would remove more than a combined 1 million barrels per day from global oil markets, as part of an independent initiative unlinked to the broader OPEC+ policy.
This adds to Russia’s existing intentions to trim 500,000 barrels per day of its own production from February output levels, now until the end of the year — bringing the combined voluntary cuts of OPEC+ members in excess of 1.6 million barrels per day.
This is a major attack on the U.S. Dollar by China. As I explained in my piece U.S. and Iran are in a Hot War?, all this is being orchestrated by China. The Chinese are engaged in a War to change the Backing of Fuel Commodity Trading from the Dollar to the Yuan. The Dollar is the chief international reserve currency. China wants that changed to Yuan, and this is China’s opening Salvo.
A sudden drawback of Oil Production by OPEC while inflation is running rampant in the U.S. will pump that inflation up more than a ballplayer on steroids. President Biden reversed all of Trump’s policies out of spite, and those actions have serious consequences.
The consequences of President Biden’s Spite, Weakness, and Corruption are having catastrophic effects on America, and those effects are about to get a hell of a lot worse. The U.S., more than any Nation, relies on Gasoline as the very foundation of our economy. Every nation in the world has bought their Gas, Oil, and Coal with the Unites States Dollar until now.
The Average American family has 2 cars that must be driven daily. There is no Rail System in the U.S., and there are only 3 major cities that have 24/7 Public Transportation. Americans can’t work, go to school, shop, or travel in 99.9% of America without using Gasoline, let alone conduct any kind of business.
China last week made it’s first major purchase of Fuel with all parties using the Yuan as the currency for the purchase.
China has just completed its first trade of liquefied natural gas (LNG) settled in yuan, the Shanghai Petroleum and Natural Gas Exchange said on Tuesday.
Chinese state oil and gas giant CNOOC and TotalEnergies completed the first LNG trade on the exchange with settlement in the Chinese currency, the exchange said in a statement carried by Reuters.
The trade involved around 65,000 tons of LNG imported from the United Arab Emirates (UAE), the Shanghai Petroleum and Natural Gas Exchange added.
The French supermajor, one of the world’s top LNG traders, confirmed to Reuters that the trade involved LNG imported from the UAE, but declined to comment further on the deal.
Now China has committed OPEC & Russia to drawback Fuel Production. This will create a domino effect on the cost of everything in the United States. At the time of writing this article, inflation is at 19.4%. What you could buy with $100 in 2020, now will cost you $120. When the cost of these pullbacks hits it will drive those numbers much higher, continuing to destroy the standard of living in the United States. As inflation continues to go nowhere but up, interest rates are following it.
United States Housing Market Home prices nationwide were down 1.2% year-over-year in February. At the same time, the number of homes sold fell 22.3% and the number of homes for sale rose 15.4%.
New housing starts unexpectedly plunged more than economists projected in July—and to the lowest level in more than a year—as home builders grappled with dwindling demand for new homes, and though some experts remain optimistic that the market could be due for a quick recovery, others are only increasingly bearish.
The Housing Market is the Canary in the Coal Mine of the American Economy, it is always the first real indicator of whether our economy is growing or shrinking. It’s bad now, and as Gas Costs rise it will only get worse until the economy improves.
The odds of the American Economy improving grow less and less with each move that the Chinese make to change the Worlds Reserve Currency from the Dollar to the Yuan.
Some Economists like Terence James O’Neill, Baron O’Neill of Gatley, think that a change in the World Currency would be a good thing, and he actually advocates for it.
Jim O’Neill, a former chief economist at Goldman Sachs, suggested that the BRICS (Brazil, Russia, India, China, and South Africa) bloc should expand its presence and enhance the alliance’s work to threaten the greenback hegemony in global financial markets.
Writing in a March 26 paper in the Global Policy Journal,
“The U.S. dollar plays a far too dominant role in global finance,” O’Neill wrote. “Whenever the Federal Reserve Board has embarked on periods of monetary tightening, or the opposite, loosening, the consequences on the value of the dollar and the knock-on effects have been dramatic.”
If the BRICS pact grows, it could facilitate the emergence of a multi-currency global financial system, he added.
This man and his ilk are a major part of the problem. Even though he is a successful businessman and what seems to be a permanent backbencher in the House of Lords. He is a well educated, well connected fool. This is how he describes his work.
O’Neill claims not to commit to a specific financial ideology; instead, he is known for his “pragmatic, long-term” vision of currency markets. He improves upon traditional models of data analysis by incorporating elements that ultimately make them more accurate.
Pencil pushing idiocy is what he’s really practicing. The Baron believes that BRICS will create a pool of several nations currencies that will be more stable in the long run. He ignores the fact that China will be in complete control of such a system.
Now the U.S. is not perfect, far from it. The World Economy however has benefitted greatly through the backing of the American Dollar. Do the good Baron and his elitist peers believe that the world will prosper with China in control of all the worlds markets? What reality are they basing such an assumption on?
China is engaged in a War with the U.S.. It is not yet a shooting War, but it is heading in that direction. Allies are changing sides, joining the Chinese, aiding them in their attack on the U.S.. Saudi Arabia has spit in America’s eye by joining China, Russia, Iran, and Syria, ending a 75 year alliance with the U.S..
President Biden is bought and paid for by the Chinese, and we have the Bank Records prove it. What proves it even more is that President Biden’s Foreign and Domestic Policies are all geared toward benefitting China. Biden will not be President forever; 2 more years if he’s lucky, 6 if the people of America are unlucky.
China is taking advantage of the Senility of the American President, and it’s goal is to change the the World Currency to the Yuan before the next Presidential Election. What we are witnessing is the opening salvo.
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