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Trump did a 180 on Saudi Arabia, and this one thing is the reason why

The secret reason Trump is so cozy with Saudi Arabia.

Alex Christoforou

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US Presidential candidate Trump talked a big game against Saudi Arabia.

US President Trump sings a much different tune with the Kingdom, bowing down to its oil rich dictators in much the same fashion as Obama and Bush did before him.

The Secret Reason Trump Is So Cozy With Saudi Arabia“, by Nick Giambruno, Senior Editor


As a candidate, Donald Trump used uncommonly harsh language to criticize Saudi Arabia—the world’s largest oil exporter.

He called the Saudi regime the world’s biggest funder of terrorism.

He also said the Saudi government uses “our petro dollars—our very own money—to fund the terrorists that seek to destroy our people, while the Saudis rely on us to protect them!”

At another point, Trump said, “Who blew up the World Trade Center? It wasn’t the Iraqis, it was Saudi [Arabia].”

Trump also criticized Hillary Clinton for taking Saudi money for the Clinton Foundation. (They were its biggest “donors.”) He even challenged her to return the money.

He also famously got into a Twitter spat with a prominent member of the Saudi royal family, Alwaleed bin Talal.

As a candidate, Trump blasted the Saudis countless other times.

But, after he took office, Trump did a complete 180. He stopped criticizing the Saudis. In fact, he’s now singing their praises.

It’s bizarre… as if someone put a severed horse head in his bed.

Mere months after criticizing the Saudis, he was on Air Force One headed to Saudi Arabia to do the sword dance with his new friends.

It was his first foreign trip as president.

President Trump with King Salman

Trump’s about face was astounding. But his newly adopted deference to the Saudis is no different than Obama’s, Baby Bush’s, or any previous president’s.

President Obama with King Abdullah

President G.W. Bush with King Abdullah

Today, I’ll tell you why Trump made such an abrupt turnaround. I’ll also explain why the Saudis get special treatment from the US Deep State.

“As Good As Gold”—From Bretton Woods to the Petrodollar

It’s been rightly said that he who holds the gold makes the rules.

After World War 2, the US had the largest gold reserves in the world, by far. Along with winning the war, this let the US reconstruct the global monetary system around the dollar.

The new system, created at the Bretton Woods Conference in 1944, tied the currencies of virtually every country in the world to the US dollar through a fixed exchange rate. It also tied the US dollar to gold at a fixed rate of $35 an ounce.

The dollar was said to be “as good as gold.”

The Bretton Woods system made the US dollar the world’s premier reserve currency. It effectively forced other countries to store dollars for international trade, or to exchange with the US government for gold.

However, this pseudo gold standard was doomed to fail.

Not surprisingly, runaway spending on warfare and welfare caused the US government to print more dollars than it could back with gold at the promised price.

By the late 1960s, the number of dollars circulating had drastically increased relative to the amount of gold backing them. This encouraged foreign countries to exchange their dollars for gold, draining the US gold supply. It dropped from 574 million ounces at the end of World War 2 to around 261 million ounces in 1971.

To plug the drain, President Nixon “temporarily” suspended the dollar’s convertibility into gold in 1971. This ended the Bretton Woods system and severed the dollar’s last tie to gold.

The “temporary” suspension is still in effect today.

This is why the Fed can print as much paper money as it pleases.

The death of the Bretton Woods system had profound geopolitical consequences. Most critically, it eliminated the main reason foreign countries stored large amounts of US dollars and used the US dollar for international trade.

At this point, oil-producing countries began to demand payment in gold instead of rapidly depreciating dollars.

It was clear the US would have to create a new monetary system to stabilize to the dollar.

So, the US government concocted a new scheme—the petrodollar system. It gave foreign countries another compelling reason to hold and use the dollar.

The new arrangement preserved the dollar’s special status as the world’s top reserve currency.

For President Nixon and Secretary of State Henry Kissinger, it was a geopolitical and financial masterstroke.

From 1972 to 1974, the US government made a series of agreements with Saudi Arabia that created the petrodollar system.

The US handpicked Saudi Arabia because of the kingdom’s vast petroleum reserves and its dominant position in OPEC—and because the Saudi royal family was (and is) easily corruptible.

In essence, the petrodollar system was an agreement that the US would guarantee the House of Saud’s survival.

In exchange, Saudi Arabia would:

  1. Use its dominant position in OPEC to ensure that all oil transactions would only happen in US dollars.
  2. Recycle the many billions of US dollars from oil revenue into American weapons manufacturers and infrastructure companies—and critically, into US Treasuries. This let the US issue more debt and finance previously unimaginable budget deficits. By 1977, at least 20% of all Treasuries held abroad were in Saudi hands.
  3. Guarantee the price of oil within limits acceptable to the US and prevent another oil embargo.

Oil is the largest and most strategic commodity market in the world.

As you can see in the chart below, it dwarfs all other major commodity markets combined.

Every country needs oil. And if foreign countries need US dollars to buy oil, they have a very compelling reason to hold large dollar reserves.

Think about it… If Italy wants to buy oil from Kuwait, it has to purchase US dollars on the foreign exchange market to pay for the oil first.

This creates a huge artificial market for US dollars.

In part, this is what differentiates the US dollar from a purely local currency, like the Mexican peso.

The dollar is just a middleman. But it’s used in countless transactions amounting to trillions of dollars that have nothing to do with US products or services.

Since the oil market is so enormous, it acts as a benchmark for international trade. If foreign countries are already using dollars for oil, it’s just easier to use the dollar for other international trade.

In addition to nearly all oil sales, the US dollar is used for about 80% of all international transactions.

This gives the US unmatched geopolitical leverage.

The US can sanction or exclude virtually any country from the US dollar-based financial system at the flip of a switch. By extension, it can also cut off any country from the vast majority of international trade.

The petrodollar system is why people and businesses everywhere in the world take US dollars. Other countries have had little choice over this.

Today, the biggest US exports are dollars and government debt. The US government can create unlimited quantities of both… from nothing.

It requires no effort to create US dollars, which can then be exchanged for real things like French wine, Italian cars, electronics from Korea, or Chinese manufactured goods.

Ultimately, the petrodollar boosts the US dollar’s purchasing power. It entices foreigners to soak up many of the new currency units the Fed creates.

The system helps create a deeper, more liquid market for the dollar and US Treasuries.

It also helps the US keep interest rates artificially low. This allows the US government to finance enormous and permanent deficits. Otherwise, this would be impossible without destroying the currency through money printing and inflation.

The petrodollar allows the US to finance the world’s largest military, which is bigger than the next seven largest militaries combined.

The petrodollar has also allowed the US to spend astronomical amounts of money on welfare and other benefits for over half of its population. It gives Americans a much higher standard of living than they would have otherwise.

In short, the petrodollar is the ultimate enabler of big government.

The US government could never have become as powerful without it.

It’s hard to overstate how much the petrodollar system benefits the US. It’s the bedrock of the US financial system.

And it’s the reason the US political elite pamper the Saudis.

Bretton Woods lasted 27 years. So far, the petrodollar has lasted over 40 years.

I think we’re on the cusp of another paradigm shift in the international financial system. It will be at least as fundamental as the end of Bretton Woods in 1971.

For decades, the petrodollar system has allowed the US government and many Americans to live way beyond their means.

The US takes this unique position for granted. But it will disappear once the petrodollar system breaks down.

When that happens, I expect severe inflation.

This will likely be the tipping point…

Afterward, the US government will be desperate enough to implement capital controls, people controls, nationalization of retirement savings, and other forms of wealth confiscation.

I urge you to prepare for the economic and sociopolitical fallout while you still can. Expect bigger government, less freedom, shrinking prosperity… and possibly worse.

It probably won’t happen tomorrow. But it’s clear where this trend is headed.

One day soon, Americans may wake up to a new reality.

Once the petrodollar system kicks the bucket and the dollar loses its status as the world’s premier reserve currency, you will have few, if any, options.

The sad truth is, most people have no idea how bad things could get, let alone how to prepare…

Yet there are straightforward steps you can start taking today to protect your savings and yourself from the financial and sociopolitical effects of the collapse of the petrodollar.

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Fake news media FREAK OUT over Trump and NATO (Video)

The Duran – News in Review – Episode 172.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the media meltdown over remarks that U.S. President Trump may have made with regard to NATO, and how neo-liberal war hawks championing the alliance as some sort of foreign policy projection of peace and democracy, are really just supporting aggression, war, and the eventual weakening of the United States.

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Top 10 Reasons Not to Love NATO, Authored by David Swanson:


The New York Times loves NATO, but should you?

Judging by comments in social media and the real world, millions of people in the United States have gone from having little or no opinion on NATO, or from opposing NATO as the world’s biggest military force responsible for disastrous wars in places like Afghanistan (for Democrats) or Libya (for Republicans), to believing NATO to be a tremendous force for good in the world.

I believe this notion to be propped up by a series of misconceptions that stand in dire need of correction.

1. NATO is not a war-legalizing body, quite the opposite. NATO, like the United Nations, is an international institution that has something or other to do with war, but transferring the UN’s claimed authority to legalize a war to NATO has no support whatsoever in reality. The crime of attacking another nation maintains an absolutely unaltered legal status whether or not NATO is involved. Yet NATO is used within the U.S. and by other NATO members as cover to wage wars under the pretense that they are somehow more legal or acceptable. This misconception is not the only way in which NATO works against the rule of law. Placing a primarily-U.S. war under the banner of NATO also helps to prevent Congressional oversight of that war. Placing nuclear weapons in “non-nuclear” nations, in violation of the Nonproliferation Treaty, is also excused with the claim that the nations are NATO members (so what?). And NATO, of course, assigns nations the responsibility to go to war if other nations go to war — a responsibility that requires them to be prepared for war, with all the damage such preparation does.

2. NATO is not a defensive institution. According to the New York Times, NATO has “deterred Soviet and Russian aggression for 70 years.” This is an article of faith, based on the unsubstantiated belief that Soviet and Russian aggression toward NATO members has existed for 70 years and that NATO has deterred it rather than provoked it. In violation of a promise made, NATO has expanded eastward, right up to the border of Russia, and installed missiles there. Russia has not done the reverse. The Soviet Union has, of course, ended. NATO has waged aggressive wars far from the North Atlantic, bombing Bosnia and Herzegovina, Kosovo, Serbia, Afghanistan, Pakistan, and Libya. NATO has added a partnership with Colombia, abandoning all pretense of its purpose being in the North Atlantic. No NATO member has been attacked or credibly threatened with attack, apart from small-scale non-state blowback from NATO’s wars of aggression.

3. Trump is not trying to destroy NATO. Donald Trump, as a candidate and as U.S. President, has wondered aloud and even promised all kinds of things and, in many cases, the exact opposite as well. When it comes to actions, Trump has not taken any actions to limit or end or withdraw from NATO. He has demanded that NATO members buy more weapons, which is of course a horrible idea. Even in the realm of rhetoric, when European officials have discussed creating a European military, independent of the United States, Trump has replied by demanding that they instead support NATO.

4. If Trump were trying to destroy NATO, that would tell us nothing about NATO. Trump has claimed to want to destroy lots of things, good and bad. Should I support NAFTA or corporate media or the Cold War or the F35 or anything at all, simply because some negative comment about it escapes Trump’s mouth? Should I cheer for every abuse ever committed by the CIA or the FBI because they investigate Trump? Should I long for hostility between nuclear-armed governments because Democrats claim Trump is a Russian agent? When Trump defies Russia to expand NATO, or to withdraw from a disarmament treaty or from an agreement with Iran, or to ship weapons to Ukraine, or to try to block Russian energy deals in Europe, or to oppose Russian initiatives on banning cyber-war or weapons in space, should I cheer for such consistent defiance of Trump’s Russian master, and do so simply because Russia is, so implausibly, his so-inept master? Or should I form my own opinion of things, including of NATO?

5. Trump is not working for, and was not elected by, Russia.According to the New York Times, “Russia’s meddling in American elections and its efforts to prevent former satellite states from joining the alliance have aimed to weaken what it views as an enemy next door, the American officials said.” But are anonymous “American officials” really needed to acquire Russia’s openly expressed opinion that NATO is a threatening military alliance that has moved weapons and troops to states on Russia’s border? And has anyone produced the slightest documentation of the Russian government’s aims in an activity it has never admitted to, namely “meddling in American elections,” — an activity the United States has of course openly admitted to in regard to Russian elections? We have yet to see any evidence that Russia stole or otherwise acquired any of the Democratic Party emails that documented that party’s rigging of its primary elections in favor of Clinton over Sanders, or even any claim that the tiny amount of weird Facebook ads purchased by Russians could possibly have influenced the outcome of anything. Supposedly Trump is even serving Russia by demanding that Turkey not attack Kurds. But is using non-military means to discourage Turkish war-making necessarily the worst thing? Would it be if your favorite party or politician did it? If Trump encouraged a Turkish war, would that also be a bad thing because Trump did it, or would it be a bad thing for substantive reasons?

6. If Trump were elected by and working for Russia, that would tell us nothing about NATO. Imagine if Boris Yeltsin were indebted to the United States and ended the Soviet Union. Would that tell us whether ending the Soviet Union was a good thing, or whether the Soviet Union was obsolete for serious reasons? If Trump were a Russian pawn and began reversing all of his policies on Russia to match that status, including restoring his support for the INF Treaty and engaging in major disarmament negotiations, and we ended up with a world of dramatically reduced military spending and nuclear armaments, with the possibility of all dying in a nuclear apocalypse significantly lowered, would that too simply be a bad thing because Trump?

7. Russia is not a military threat to the world. That Russia would cheer NATO’s demise tells us nothing about whether we should cheer too. Numerous individuals and entities who indisputably helped to put Trump in the White House would dramatically oppose and others support NATO’s demise. We can’t go by their opinions either, since they don’t all agree. We really are obliged to think for ourselves. Russia is a heavily armed militarized nation that commits the crime of war not infrequently. Russia is a top weapons supplier to the world. All of that should be denounced for what it is, not because of who Russia is or who Trump is. But Russia spends a tiny fraction of what the United States does on militarism. Russia has been reducing its military spending each year, while the United States has been increasing its military spending. U.S. annual increases have sometimes exceeded Russia’s entire military budget. The United States has bombed nine nations in the past year, Russia one. The United States has troops in 175 nations, Russia in 3. Gallup and Pew find populations around the world viewing the United States, not Russia, as the top threat to peace in the world. Russia has asked to join NATO and the EU and been rejected, NATO members placing more value on Russia as an enemy. Anonymous U.S. military officials describe the current cold war as driven by weapons profits. Those profits are massive, and NATO now accounts for about three-quarters of military spending and weapons dealing on the globe.

8. Crimea has not been seized. According to the New York Times, “American national security officials believe that Russia has largely focused on undermining solidarity between the United States and Europe after it annexed Crimea in 2014. Its goal was to upend NATO, which Moscow views as a threat.” Again we have an anonymous claim as to a goal of a government in committing an action that never occurred. We can be fairly certain such things are simply made up. The vote by the people of Crimea to re-join Russia is commonly called the Seizure of Crimea. This infamous seizure is hard to grasp. It involved a grand total of zero casualties. The vote itself has never been re-done. In fact, to my knowledge, not a single believer in the Seizure of Crimea has ever advocated for re-doing the vote. Coincidentally, polling has repeatedly found the people of Crimea to be happy with their vote. I’ve not seen any written or oral statement from Russia threatening war or violence in Crimea. If the threat was implicit, there remains the problem of being unable to find Crimeans who say they felt threatened. (Although I have seen reports of discrimination against Tartars during the past 4 years.) If the vote was influenced by the implicit threat, there remains the problem that polls consistently get the same result. Of course, a U.S.-backed coup had just occurred in Kiev, meaning that Crimea — just like a Honduran immigrant — was voting to secede from a coup government, by no means an action consistently frowned upon by the United States.

9. NATO is not an engaged alternative to isolationism. The notion that supporting NATO is a way to cooperate with the world ignores superior non-deadly ways to cooperate with the world. A nonviolent, cooperative, treaty-joining, law-enforcing alternative to the imperialism-or-isolationism trap is no more difficult to think of or to act on than treating drug addiction or crime or poverty as reason to help people rather than to punish them. The opposite of bombing people is not ignoring them. The opposite of bombing people is embracing them. By the standards of the U.S. communications corporations Switzerland must be the most isolationist land because it doesn’t join in bombing anyone. The fact that it supports the rule of law and global cooperation, and hosts gatherings of nations seeking to work together is simply not relevant.

10. April 4 belongs to Martin Luther King, Jr., not militarism. War is a leading contributor to the growing global refugee and climate crises, the basis for the militarization of the police, a top cause of the erosion of civil liberties, and a catalyst for racism and bigotry. A growing coalition is calling for the abolition of NATO, the promotion of peace, the redirection of resources to human and environmental needs, and the demilitarization of our cultures. Instead of celebrating NATO’s 70thanniversary, we’re celebrating peace on April 4, in commemoration of Martin Luther King Jr.’s speech against war on April 4, 1967, as well as his assassination on April 4, 1968.

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Turkey prepared to take Syria’s Manbij, won’t let it turn into ‘swamp’ like N. Iraq

Turkey sees the US-backed Kurdish YPG militias as an extension of the PKK and considers them terrorists as well.

RT

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Via RT


Ankara has “almost completed” preparations for another military operation in Syria and will launch it if “promises” made by other parties about the protection of its borders are not kept, President Recep Tayyip Erdogan has said.

Turkey still hopes that talks with the US, Russia and “other parties” will allow it to ensure its security without resorting to force but it is still ready to proceed with a military option and will not “wait forever,” Erdogan said. He was referring to Ankara’s plans for the northern Syrian territories east of the Euphrates River, which it seeks to turn into a “security zone”free of any Kurdish militias.

“We are on our border with our forces and following developments closely. If promises made to us are kept and the process goes on, that’s fine. Otherwise, we inform that we have almost completed our preparations and will take steps in line with our own strategy,” the president said, addressing a group of businessmen in Ankara on Monday.

He did not elaborate on the promises made. However, they are apparently linked to the withdrawal of the Kurdish YPG militia from the Manbij area and the regions along the border with Turkey. “We will never allow a safe zone to turn into a new swamp,” Erdogan said, referring to the northern Syrian territories and comparing them to the northern Iraq, where the militants from the Kurdistan Workers’ Party (PKK) – an organization that Ankara considers a terrorist group – have been entrenched for decades.

Turkey sees the US-backed Kurdish YPG militias, which form the backbone of the so-called Syrian Democratic Forces (SDF), as an extension of the PKK and considers them terrorists as well. “Our proposal for a security zone under Turkey’s control aims to keep terror organizations away from our borders,” the Turkish president said.

He went on to explain that Ankara does not seek any territorial gains in its military campaigns in Syria but merely seeks to restore order in the war-ravaged country. “We will provide security for Manbij and then we will hand over the city to its real owners,” Erdogan said. “Syria belongs to Syrians.”

Turkey also seeks to establish a “security zone 20 miles [32 kilometers] deep” into Syria, Erdogan said, adding that he already discussed this issue with the US President Donald Trump. “Those who insistently want to keep us away from these regions are seeking to strengthen terror organizations,” he added.

Ankara has been long planning to push YPG units out of the area east of the Euphrates River. Its operation was delayed by the US withdrawal from Syria. However, Erdogan repeatedly hinted that his patience is wearing thin and he is not ready to wait much longer. He warned Trump against backtracking on his pledge to withdraw some 2,000 US forces out of Syria following a suicide attack in Manbij that killed four Americans. If the US president halted the withdrawal, it would mean that Islamic State (formerly ISIS/ISIL) had won, Erdogan argued.

He has also reiterated that Turkey is ready to take over Manbij “without delay.” The US military is currently working on security arrangements with the Turkish forces to create a buffer zone between Turkey and the Kurdish fighters. The Kurds, meanwhile, invited the Syrian government to take over the city and have reportedly begun to leave the area. Turkey has dismissed the reports saying its a “psyop”.

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Political Knives Dull Themselves on the Rock of Brexit Article 50

The invocation of Article 50 was undertaken by an act of Parliament. And it will take another act of Parliament to undo it.

Strategic Culture Foundation

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Authored Tom Luongo via Strategic Culture Foundation:


Theresa “The Gypsum Lady” May went through an extraordinary twenty-four hours. First, seeing her truly horrific Brexit deal go down in historic defeat and then, somehow, surviving a ‘No-Confidence’ vote which left her in a stronger position than before it.

It looks like May rightly calculated that the twenty or so Tory Remainers would put party before the European Union as their personal political positions would be terminally weakened if they voted her out of office.

While there is little stomach in the British Parliament for a ‘no-deal’ Brexit, there is less for allowing Labour leader Jeremy Corbyn to become Prime Minister. And that is the crux of why the incessant calls to delay Brexit, call for a ‘people’s vote’ or, in Corbyn’s case, “take a no-deal Brexit off the table,’ ultimately lead to a whole lot of political knife-fighting and very little substantive action.

The day-to-day headline spam is designed to wear down people’s resistance and make it feel like Brexit getting betrayed is inevitable. That has been the British Deep State’s and EU’s game plan all along and they hoped they could arm-twist enough people in parliament to succeed.

But the problem for them now, since the clock has nearly run out, is the invocation of Article 50 was undertaken by an act of Parliament. And it will take another act of Parliament to undo it.

And I don’t see anyone on the Remainer side working towards that end. That should be your clue as to what happens next.

Why? Because they know they don’t have the time to get that act past Parliament. So, the rest of this is simply a PR campaign to push public opinion far enough to allow for an illegal canceling or postponing of Brexit.

But it’s not working.

According to the latest polls, Brits overwhelmingly want the original Brexit vote respectedLeave even has a 5-6 point lead over Remain.

And, I think Theresa May now realizes this. It is why she invited the no-confidence vote against her. She knew she had the votes and it would give her the ammunition to ignore Corbyn’s hysterical ranting about taking a no-deal Brexit off the table.

Whether she realizes that the only negotiating tool she has with the EU is the threat of a No-Deal Brexit, exactly like Nigel Farage and those committed to Brexit have been telling her for two years is still, however, up in the air.

It looks like she’s finally starting to get it.

The net result is we are seeing a similar outing of the nefarious, behind-the-scenes, power brokers in the public eye similar to what’s been happening in the US with Donald Trump and Russiagate.

May has been singularly unimpressive in her handling of Brexit. I’ve been convinced from the beginning that betraying Brexit was always her goal. Negotiating a deal unacceptable to anyone was meant to exhaust everyone into the position to just throwing up their hands and canceling the whole thing.

The EU has been in the driver’s seat the entire time because most of the British establishment has been on their side and it was only the people who needed to be disrespected.

So, after all of these shananigans we are back to where we were last week. May has cut off all avenues of discussion. She won’t commit to taking ‘no-deal’ off the table to tweak Corbyn. She won’t substantively move on any other issue. This is likely to push her deal through as a last-minute panic move.

Corbyn is still hoping to get new elections to take power, and the majority of MP’s who don’t want to leave the EU keep fighting among themselves to cock up the entire works.

All they are doing is expending pound after pound of political capital beating themselves against their own act of Parliament which goes into effect on March 29th.

By the time that date comes around the frustration, shame and humiliation of how Parliament has mishandled Brexit will make it difficult for a lot of Remainers to hold together their majority as public opinion has decidedly turned against them.

In the past the EU has had that façade of democratic support undermining any change at the political level. With Brexit (and with budget talks in Italy) that is not the case. The people are angry.

The peak moment for Remainers to stage a bipartisan political coup against May should have been the most recent no-confidence vote.

With May surviving that it implies that Remainers are not willing to die politically for their cause.

This should begin to see defectors over the next couple of weeks as they realize they don’t have a hand to play either.

And by May refusing to rule out a ‘no-deal’ Brexit it has finally brought the EU around to throw a bone towards the British. Their admitting they would extend Article 50 is just that. But they know that’s a non-starter as that is the one thing May has been steadfast in holding to.

On March 29th with or without a deal the U.K. is out of the EU. Because despite the European Court of Justice’s decision, Britain’s parliament can only cancel Article 50 at this point by acting illegally.

Not that I would put that past these people, but then that opens up a can of worms that most British MP’s will not go along with. The personal stakes are simply too high.

When dealing with politicians, never bet against their vanity or their pocketbook. In May’s case she may finally have realized she could have the legacy of getting Britain out of the EU just before it collapses.

And all she has to do between now and the end of March is, precisely, nothing.

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