Loading ...The dollar is winning (A la Charlie Sheen), but it is hardly by default!
$70 oil is crushing world economies from Greece to China, and $70 oil is a manufactured artifact. Higher oil prices are putting pressure on current accounts which is driving currencies down. Declining currencies function as a capital transfer vector to the world’s reserve currency. The US is now strip mining the world’s capital markets, and it is all being done very intentionally. Who else is better qualified for the job than Goldman, and JP, and they are crawling all over the Trump administration. The pink pachyderm (that no one is noticing) doing the minuet in the living room is the coming end of the oil age. The day of affordable oil for all of the world is over. The world is burning 9 barrels for every 1 it finds, and its biggest, and best production fields are on life support. The sanctions on Iran are a ruse to be used as an excuse to keep the price elevated. The US tariffs being set in place are being used to keep the US banking industry from imploding in a deflationary depression. Currencies all over the world are heading for the abyss, but prices in the US have magically stayed constant.
The enmity that the US is displaying toward Russia can be compared to wolves fighting over the kill of the last caribou on the range. Russia has its own oil, its own economy, and a fine military. As economies all over the world continue to fail, and as oil becomes further out of reach for most, only Russia can remain sovereign. The last two standing in the last resource challenge will be nuclear super power competitors. Either they come to an agreement of mutual cooperation, or the oil wars will soon be upon us.