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Saudis---Stop the Oil Flood---Or Else
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One night in his tent in Tripoli, Libya, Col. Muammar Khadafi told me, “the Saudis are a very rich family hiding behind high walls, terrified their neighbors will come and steal their wealth.”

He was right. The covetous neighbor most feared by the Saudis are Iran, followed by Egypt, Turkey and, more distantly, Israel. Iraq also used to be on the list until it was destroyed by the United States in 2003.

One must keep Saudi Arabia’s fear factor in mind to understand the oil wars that are now shaking the world’s economy to its foundations.

The Saudi royal family decided to kill two competitive birds with one stone – Iran and surging US shale oil producers – by kicking off a price war to run them out of business. Saudi Arabia is one of the world’s lowest cost oil producers. The Saudis also hoped to punish Russia for backing Syria’s government.

Price wars are the last recourse of all bad businessmen.

The problem with this ham-handed strategy is that your competitors will hang on desperately and cut prices to survive, even if it means running big losses. Price wars hurt all concerned. They dislocate production, markets, future investments and capital spending.

The result of Saudi Arabia’s oil price war has been to drive the once “black gold” down to around $32 a barrel from a high of $105 in 2015. Other Gulf producers joined Saudi Arabia in slashing prices. We have gone from panic over “peak oil” (worldwide shortages) to panic that we are drowning in oil.

So far, the Saudi oil war has indeed badly damaged the US shale and regular oil industry but has not put them out of business. However, oil industry dividends are being cut way back or eliminated. Blundering by the US, Canadian and Japanese central bankers has made things far worse.

Other major oil producers like Russia, Iran, Algeria, Malaysia, Kazakhstan and Indonesia have also been badly hurt but are hanging on. The oil war has seriously damaged the economy of the European Union. Japan should have been boosted by low oil prices but is also suffering relentless industrial decline, as witness by the humiliating sale of Sharp Electronics to China’s Foxconn.

Oil has become tightly correlated to North America’s stock markets, meaning that they rise and fall with the price of oil. Low oil prices may have helped a few industries like airlines, but they have created a worldwide recession. Canada, a dire example, has been battered by low oil prices and faces a bleak future unless resources rise sharply in price.

Efforts by OPEC and other oil producers to agree to cut back production and thus foster a price rise have so far failed due to fears that nations who reduce exports will see their former markets taken by cheating competitors. In economics, it’s known as ‘beggar they neighbors.’ The Saudis and Gulf producers keep blocking a decrease in oil production.

ORDER IT NOW

Now, the desert oil producers are deeply worried that Iran, freed from US economic prison, will soon begin exporting at least 500,000 bbls a day of oil. Iraqis oil production is finally returning to pre-US invasion levels. Oil prices could drop even further unless a deal is reached.

But Saudi Arabia is so petrified of Iran it is very reluctant to make a deal that will help grow the Islamic Republic’s economy – and hence even limited military power. So what’s to be done?

Some critics are saying that a group of obscenely rich Bedouins should not be allowed to hold the world economy to ransom. The western powers should press the Saudis to cut production or risk seeing vast Saudi investments in the US and Europe frozen – just as was done with Iran. The Saudis should also be told to stop their bloody war against Yemen that has killed thousands, cease their human rights abuses, and cease funding dangerous Islamic extremist movements, including ISIS and Syrian revolutionaries.

Why has this not been done? Because too many American and British politicians are on the Saudi payroll, and too much of Britain’s and America’s arms producers are dependent on Saudi business. The Saudis’ heads have swelled with arrogance while their dim-witted oil policies threaten the global economy.

The Saudis and OPEC must be offered a deal by the great powers that they can’t refuse. Otherwise, the Saudis may remain a bigger threat than ISIS.

(Republished from EricMargolis.com by permission of author or representative)
 
• Category: Foreign Policy • Tags: Middle East, Oil, Saudi Arabia 
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  1. Renoman says:

    Kill em all and take their oil? No one would shed a tear or miss those swine.

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    • Replies: @Corvinus
    "Kill em all and take their oil? No one would shed a tear or miss those swine."

    Are you volunteering as a one man wrecking crew, or just spouting off ignorance?
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  2. Sean says:

    The Saudis’ main motive is to put the Frackers out of business, the low oil price may halt the war in Syria because both Saudis and Iranians can not afford to continue.

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  3. I thought Saudi Arabia only exported three things – oil, terrorism, and dates – but now it seems we must add economic instability to the list.

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  4. Priss Factor [AKA "Dominique Francon Society"] says: • Website

    Margolis is so wrong.

    There is no way Saudi Arabia is doing this without tacit US support and protection.

    If indeed US were really damaged by Saudi policy, US could easily exert pressure on Saudi to make it change policy. Without US support, Saudis would be vulnerable.

    Sure, certain sectors of the US economy is hurt by low energy prices, but US has tremendous cash reserves and can print more money at the drop of the hat.

    Also, Shale industry doesn’t control American Power. Jews control US, and they see Russia as the main enemy to destroy.
    So, the Shale industry will have to take a backseat to Suprema-Semite interest.
    Besides, the Shale industry can be bailed out by Wall Street and Washington for awhile.
    And if the Saudi economy suffers, it too can be bailed out by US as friend and ally.

    On the surface, it seems like US and Saudis are squabbling over this, but it’s all just bullshit. Saudis are doing this with the full support of the US as controlled by the Jews.
    If Jews didn’t control the US, there would be less of an imperative to hurt Russia. But since Jews do control the US and see Russia as the main long-term threat to Zio-hegemony, the #1 priority of the Jews is to hurt Russia.
    And lowering energy prices is the the most effective way.

    Jews know that Russian people are lazy and confused. If Russian masses are driven over the edge economically, they might grow angry and grumble like the masses who brought down the Tsar. And as Russian society unravels, the oligarchs will collude with globalist Jews to bring down Putin. And then, a new Russia ruled by Jewish oligarchs and cuck-Russians will be favored economically and then lots of investment will pour into Russia… along with the homo agenda. Russia will do better economically but it will be a total cuck nation to the Jews.

    Jews are using Saudi Arabia like Don Corleone used Luca Brasi. Corleone told Brasi to act like he was having problems with the Corleones. It was all just a ruse.

    Likewise, the Jewish supremacists who rule the US want to fool the world that what the Saudis are doing is independent of American wishes and, by golly, Saudi actions are hurting US too. It’s all bullshit. The fact is US can weather this because its economy is very diversified. Also, there is enough cash in the US to take care of the decline in Shale industry.
    Also, Saudis can weather this because they can suck out oil for cheap. Also, there is a secret agreement between US and Saudi Arabia that US will financially back the Saudis if the latter come under too much economic strain.

    US and Saudis are pulling the same dirty trick they did in the mid 80s when Saudi pumped oil like crazy to bring down gas to $10 a barrel. Back then, it was to hurt the USSR. Today, it is to hurt Russia.

    It’s all about Jews trying to destroy Russia.

    IT IS SO OBVIOUS.

    No way Saudis would do something that is so detrimental to the US if US really objected.

    Look how Jews act in the US. Jews fixed it so that anyone who opposed the homo agenda(proxy for Jewish agenda) will be financially destroyed. Big business or small business, it doesn’t matter. Jews have the power to go after the biggest companies if they don’t comply, and it is out of fear that all the fortune 500 companies are totally with the homo agenda.
    Jews control law and government and will target any company that won’t bend over to the homo agenda. As for small family bakeries, forget it. They can be destroyed so easily. And SJW, brainwashed retardo pink guards of the Jews, will go after anyone who won’t bend over to the homo agenda.

    What Jews do in the US, they also globally. Since Russia won’t totally bend over to the Jewish-homo or Jomo agenda, Jews will pull every dirty trick in the book to bring it down.

    What is called ‘free trade’ isn’t. If indeed Jews support free trade, it shouldn’t matter what kind of domestic or foreign policy Russia or Iran has. It should just be about supply and demand of whatever Russia or Iran has to offer.
    But Iran was under sanctions for a long time just because Jews and Israel hated it.
    And Russia is under sanctions because Jews hate it.

    So much for free trade.

    And inside the US, free trade is allowed ONLY FOR THOSE WHO BOW DOWN TO THE JEWISH-HOMO AGENDA.

    Consider how Chick-Fil-A has been banned from certain cities. Now, if US is all about free trade, Chick-Fil-A should be able to do business in any town on the basis of supply and demand. But Chick Fil A was banned purely on ideological grounds. It stood up for true marriage. So, it didn’t matter that many people might want Chick Fil A chicken in a certain city or community. The business was banned simply because of ideological reasons. That’s how ‘free trade’ works under Jews. You can trade freely ONLY IF Jews allow you to. Otherwise, it’s sanction-time for you.

    But Jewish supremacists and homos can do as they please anywhere.
    Jews don’t even believe in the political freedom of gentiles and conservatives.
    When David Duke was running for governor of Louisiana, Jews vowed to destroy the economy of the state and collectively hurt every person in Louisiana if Duke was made governor.

    But Jews don’t care if a scum like Sheldon ‘nuke Iran’ Adelson runs much of Las Vegas.
    Jews don’t care if Zionist-supremacists who support the imperialist state of Israel rule Hollywood.

    Jews don’t care if Arnon Milchan, who admitted to spying on the US for Israel, moves freely in the US. American government knows that anyone who gives the order to arrest Milchan will be destroyed by Jewish Power that controls US government.

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    • Replies: @Corvinus
    Niwdog’s Law—As an online discussion continues with multiple posters, the likelihood of a person making assertions that the Jews are behind everything in the world that is “bad” exponentially grows.
    , @DaveE
    Yesiree. Saudi Arabia is almost as Jewish as Israel, created right alongside it, at the same time, by the same "people".

    Oil was discovered, the Rothschilds wanted it, they sent their agents like T.E. Lawrence to cut deals with the local tribes, the Jews moved in, set up the "Saudi Royal Family" in 1932 and the rest is profit, eh, I mean "history."

    A few battles along the way but basically, it was as easy as stealing fleas from a camel.
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  5. Obviously Saudis are v. bad, but “The oil war has seriously damaged the economy of the European Union.”? Eh? How can cheap oil for a major oil importer be seriously damaging? The madness of a single currency is what’s damaging the EU economy.

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  6. The strategy to put the frackers out of business was doomed from the start, short-term anyway. Once a given well is open and producing the cost is limited to transportation and storage. New wells won’t be created. exploration will go down but that doesn’t matter as (depending on the sources you wish to believe) production of 9-12 MILLION/BPD of U.S. oil isn’t going away for years. A well producing 10,000/BPD is not going to be shut down because of 25-30 dollar crude prices because the up front costs are already spent and financed by loans that must be serviced. It is new exploration and new installations that are suffering because no one is financing new construction and drilling.

    They’re fracking old Pa. wells long thought dry and those old holes are producing 5,000/BPD for very little effort in regions that already have pipelines and rail out of the fields and there are plenty more out there waiting. Along with the nationwide bounty of crude are the surpluses of natural gas that are created in lockstep. Along with all that is our enormous store of clean, low-sulfur coal that can be converted to light petroleum for fuels and lubricants and plastics production even if not burned in raw-state for power.

    The U.S. energy store is LOADED and growing and the Mid-Atlantic offshore fields and dozens of other resources on land and undersea off the U.S. are untapped. And federal properties weren’t even a part of the recent fracking boom, all that took place on private lands. The technologies behind all this is getting better and cheaper all the time and the only concern is where the Hell to store it all. If low oil prices break other countries, tough shit. The U.S. is a producing nation again, we’re a service economy and for once, our own citizens are sharing in a bounty that ought to be allowed to endure; low prices for gasoline and heating oil. If 300 million Americans are “profiting” from cheaper crude oil at the expense of Saudis and a few thousand commodity traders and hedges, I’m all for keeping things just as they are.

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    • Agree: Kiza
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  7. Escher says:

    The Saudis and OPEC must be offered a deal by the great powers that they can’t refuse. Otherwise, the Saudis may remain a bigger threat than ISIS.
    The Saudis created ISIS and Al Qaeda through their policy of exporting discontent and wahabbisn, so I would say Yes – they are a bigger threat than ISIS, and possibly the biggest threat to middle eastern and world stability.

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  8. American congressmen on the Saudi payroll? You must be joking. The commenters at Unz, and perhaps half the authors, have all agreed that congressmen are paid to be at the beckon call of Israel.

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    • Replies: @Wally
    Try BOTH.
    , @Kiza
    Try Sibel Edmonds as an FBI translator from the Turkish language.

    The owners of the US are, in diminishing order of power & control:
    1) Israelis,
    2) Saudis,
    3) Turks.
    Say hello to your owners Muricans.

    BTW, Margolis combines truths and lies, as he usually does, the prominent CIA writer he is. It was the Israeli-US connection which set this current war and oil policies of Saudi Arabia. My explanation is that they want Russia to get desperate and accept the money of the Jewish oligarchs who almost destroyed Russia in the 90s (see Paul Craig Roberts article). Naturally, this does not prevent a CIA writer to huff & puff about the Saudi oil policy, to enhance the plausible deniability.
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  9. The oil plunge happened after Skull-and-Bones John Kerry visited with the Saudis. And after the Congress put an exemption into the anti-bailout legislation. The exemption was designed to protect lenders to the shale industry.

    It is likely a coordinated attack aimed at resource rich nations, Russia, Venezuela, Kazakhstan, Iran etc.

    The Chinese are being taken down with financial attacks against their markets. Probably coming from the City of London.

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  10. anon says: • Disclaimer

    I don’t see where importing ever cheaper oil is a bad thing for oil importing nations. Bad for the exporters maybe. Why would it be “good” for the west to pay ever more billions to those corrupt oil sheiks? The real reason stock prices are collapsing is due to all the sovereign funds out there run by Saudi Arabia, Norway etc. They have to sell stocks like crazy to make up for the shortfall in oil prices in order to balance their budgets.

    Read More
    • Replies: @Corvinus
    You actually make sense for once.

    On a different note...

    “The oil war has seriously damaged the economy of the European Union…Russia…several Middle Eastern nations…The United States…”

    American consumers are rejoicing. Perhaps now is the time for companies to focus less on fossil fuels and more on alternatives. Sure, we have, what 200 years left of oil, we can wait until then to figure out next-generation energy.

    “Because too many American and British politicians are on the Saudi payroll, and too much of Britain’s and America’s arms producers are dependent on Saudi business.”

    I am sure the author here is are able to procure a specific list of those politicians and their direct compensation from the Saudi government.
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  11. Wally says: • Website
    @The Grate Deign
    American congressmen on the Saudi payroll? You must be joking. The commenters at Unz, and perhaps half the authors, have all agreed that congressmen are paid to be at the beckon call of Israel.

    Try BOTH.

    Read More
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  12. Corvinus says:
    @Renoman
    Kill em all and take their oil? No one would shed a tear or miss those swine.

    “Kill em all and take their oil? No one would shed a tear or miss those swine.”

    Are you volunteering as a one man wrecking crew, or just spouting off ignorance?

    Read More
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  13. Corvinus says:
    @Priss Factor
    Margolis is so wrong.

    There is no way Saudi Arabia is doing this without tacit US support and protection.

    If indeed US were really damaged by Saudi policy, US could easily exert pressure on Saudi to make it change policy. Without US support, Saudis would be vulnerable.

    Sure, certain sectors of the US economy is hurt by low energy prices, but US has tremendous cash reserves and can print more money at the drop of the hat.

    Also, Shale industry doesn't control American Power. Jews control US, and they see Russia as the main enemy to destroy.
    So, the Shale industry will have to take a backseat to Suprema-Semite interest.
    Besides, the Shale industry can be bailed out by Wall Street and Washington for awhile.
    And if the Saudi economy suffers, it too can be bailed out by US as friend and ally.

    On the surface, it seems like US and Saudis are squabbling over this, but it's all just bullshit. Saudis are doing this with the full support of the US as controlled by the Jews.
    If Jews didn't control the US, there would be less of an imperative to hurt Russia. But since Jews do control the US and see Russia as the main long-term threat to Zio-hegemony, the #1 priority of the Jews is to hurt Russia.
    And lowering energy prices is the the most effective way.

    Jews know that Russian people are lazy and confused. If Russian masses are driven over the edge economically, they might grow angry and grumble like the masses who brought down the Tsar. And as Russian society unravels, the oligarchs will collude with globalist Jews to bring down Putin. And then, a new Russia ruled by Jewish oligarchs and cuck-Russians will be favored economically and then lots of investment will pour into Russia... along with the homo agenda. Russia will do better economically but it will be a total cuck nation to the Jews.

    Jews are using Saudi Arabia like Don Corleone used Luca Brasi. Corleone told Brasi to act like he was having problems with the Corleones. It was all just a ruse.

    Likewise, the Jewish supremacists who rule the US want to fool the world that what the Saudis are doing is independent of American wishes and, by golly, Saudi actions are hurting US too. It's all bullshit. The fact is US can weather this because its economy is very diversified. Also, there is enough cash in the US to take care of the decline in Shale industry.
    Also, Saudis can weather this because they can suck out oil for cheap. Also, there is a secret agreement between US and Saudi Arabia that US will financially back the Saudis if the latter come under too much economic strain.

    US and Saudis are pulling the same dirty trick they did in the mid 80s when Saudi pumped oil like crazy to bring down gas to $10 a barrel. Back then, it was to hurt the USSR. Today, it is to hurt Russia.

    It's all about Jews trying to destroy Russia.

    IT IS SO OBVIOUS.

    No way Saudis would do something that is so detrimental to the US if US really objected.

    Look how Jews act in the US. Jews fixed it so that anyone who opposed the homo agenda(proxy for Jewish agenda) will be financially destroyed. Big business or small business, it doesn't matter. Jews have the power to go after the biggest companies if they don't comply, and it is out of fear that all the fortune 500 companies are totally with the homo agenda.
    Jews control law and government and will target any company that won't bend over to the homo agenda. As for small family bakeries, forget it. They can be destroyed so easily. And SJW, brainwashed retardo pink guards of the Jews, will go after anyone who won't bend over to the homo agenda.

    What Jews do in the US, they also globally. Since Russia won't totally bend over to the Jewish-homo or Jomo agenda, Jews will pull every dirty trick in the book to bring it down.

    What is called 'free trade' isn't. If indeed Jews support free trade, it shouldn't matter what kind of domestic or foreign policy Russia or Iran has. It should just be about supply and demand of whatever Russia or Iran has to offer.
    But Iran was under sanctions for a long time just because Jews and Israel hated it.
    And Russia is under sanctions because Jews hate it.

    So much for free trade.

    And inside the US, free trade is allowed ONLY FOR THOSE WHO BOW DOWN TO THE JEWISH-HOMO AGENDA.

    Consider how Chick-Fil-A has been banned from certain cities. Now, if US is all about free trade, Chick-Fil-A should be able to do business in any town on the basis of supply and demand. But Chick Fil A was banned purely on ideological grounds. It stood up for true marriage. So, it didn't matter that many people might want Chick Fil A chicken in a certain city or community. The business was banned simply because of ideological reasons. That's how 'free trade' works under Jews. You can trade freely ONLY IF Jews allow you to. Otherwise, it's sanction-time for you.

    But Jewish supremacists and homos can do as they please anywhere.
    Jews don't even believe in the political freedom of gentiles and conservatives.
    When David Duke was running for governor of Louisiana, Jews vowed to destroy the economy of the state and collectively hurt every person in Louisiana if Duke was made governor.

    But Jews don't care if a scum like Sheldon 'nuke Iran' Adelson runs much of Las Vegas.
    Jews don't care if Zionist-supremacists who support the imperialist state of Israel rule Hollywood.

    Jews don't care if Arnon Milchan, who admitted to spying on the US for Israel, moves freely in the US. American government knows that anyone who gives the order to arrest Milchan will be destroyed by Jewish Power that controls US government.

    Niwdog’s Law—As an online discussion continues with multiple posters, the likelihood of a person making assertions that the Jews are behind everything in the world that is “bad” exponentially grows.

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  14. Corvinus says:
    @anon
    I don't see where importing ever cheaper oil is a bad thing for oil importing nations. Bad for the exporters maybe. Why would it be "good" for the west to pay ever more billions to those corrupt oil sheiks? The real reason stock prices are collapsing is due to all the sovereign funds out there run by Saudi Arabia, Norway etc. They have to sell stocks like crazy to make up for the shortfall in oil prices in order to balance their budgets.

    You actually make sense for once.

    On a different note…

    “The oil war has seriously damaged the economy of the European Union…Russia…several Middle Eastern nations…The United States…”

    American consumers are rejoicing. Perhaps now is the time for companies to focus less on fossil fuels and more on alternatives. Sure, we have, what 200 years left of oil, we can wait until then to figure out next-generation energy.

    “Because too many American and British politicians are on the Saudi payroll, and too much of Britain’s and America’s arms producers are dependent on Saudi business.”

    I am sure the author here is are able to procure a specific list of those politicians and their direct compensation from the Saudi government.

    Read More
    • Replies: @OutWest
    The situation would seem to be one of greater supply and diminishing demand not easily preplanned. The biggest mover is the old U.S.A. and the enhancement of fracking. The Saudis can pump much cheaper than we can frack so they’ll just ride it out.

    I agree that now would be a good time to look into future nonwarming energy sources. You might review the thorium breeder reactor technology that was running well but killed because it didn’t generate nuclear weapon stuffs. It has much more benign byproducts.

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  15. One night somebody somewhere in some tent or another has once told me never to take seriously anything that comes from a pen of Eric Margolis.

    Some critics are saying that a group of obscenely rich Bedouins should not be allowed to hold the world economy to ransom.

    What a ludicrous remark. The Saudis may be many things but they are definitely not responsible for the current economic crisis. The demand for goods has dropped, as a result the manufacturing has dropped and there is a glut of commodities. It is not just oil hitting record low price. To say that Saudis are flooding the market with oil is preposterous. All one has to do is look at their output in the last year. A few percent increase is not exactly a flood and the storage capacities are not limitless. Are the Sheiks flooding the desert? By the way who held the economy to ransom in 2008 or in 1929?

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  16. OutWest says:
    @Corvinus
    You actually make sense for once.

    On a different note...

    “The oil war has seriously damaged the economy of the European Union…Russia…several Middle Eastern nations…The United States…”

    American consumers are rejoicing. Perhaps now is the time for companies to focus less on fossil fuels and more on alternatives. Sure, we have, what 200 years left of oil, we can wait until then to figure out next-generation energy.

    “Because too many American and British politicians are on the Saudi payroll, and too much of Britain’s and America’s arms producers are dependent on Saudi business.”

    I am sure the author here is are able to procure a specific list of those politicians and their direct compensation from the Saudi government.

    The situation would seem to be one of greater supply and diminishing demand not easily preplanned. The biggest mover is the old U.S.A. and the enhancement of fracking. The Saudis can pump much cheaper than we can frack so they’ll just ride it out.

    I agree that now would be a good time to look into future nonwarming energy sources. You might review the thorium breeder reactor technology that was running well but killed because it didn’t generate nuclear weapon stuffs. It has much more benign byproducts.

    Read More
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  17. Svigor says:

    The Saudis should also be told to stop their bloody war against Yemen that has killed thousands, cease their human rights abuses, and cease funding dangerous Islamic extremist movements, including ISIS and Syrian revolutionaries.

    he Saudis and OPEC must be offered a deal by the great powers that they can’t refuse. Otherwise, the Saudis may remain a bigger threat than ISIS.

    Eric, you wrote an entire article about Saudi oil dumping, mentioned Islamic State twice, and still managed to ignore the fact that IS’ main source of income is oil.

    What gives?

    Why does everyone insist on ignoring the fact that Saudi oil dumping hurts IS? That it may even hurt IS more than it hurts Iran, Iraq, Russia, or US shale producers?

    Iran, Iraq, Russia, and the US are countries. They all have access to the international banking system, their own banking industries, or both. They all have real, above-board economies, unlike IS, which is a pariah and, at best, para-state without the resources of the others.

    Is this because everyone is invested in the idea that the Saudis are pro-IS? That they refuse to consider that Saud might want to harm IS?

    US Shale will recover from this whenever prices rebound to a sufficient level. There will be plenty of capital available for reinvestment when this happens, and investors might pick up US Shale resources at firesale prices. Russia’s economy may be hurting, but her economy is indeed a real economy and they’ll survive the interim. Same is likely true of Iran. Probably Iraq, too.

    The Saudis’ main motive is to put the Frackers out of business, the low oil price may halt the war in Syria because both Saudis and Iranians can not afford to continue.

    Let’s go with the flow for a second and assume Saud loves IS. Doesn’t the Saudis’ move here endanger IS, more than it does US Shale? US Shale can go out of business. But their expertise and knowledge and equipment won’t go anywhere. It’ll sit in mothballs until needed again. They are simply not going to go belly up and melt away to nothing, leaving the Saudis free to raise prices to $120/bbl. Whenever it becomes profitable again ($40/bbl? $60?), the money will flow in from Wall Street and wherever, and the fracking will begin again.

    Also, Shale industry doesn’t control American Power. Jews control US, and they see Russia as the main enemy to destroy.

    This seems joined at the hip with the idea that US/Saud are fine with destroying IS, as long as they get to destroy Russia, too. Actually, with the idea that they get to hurt Russia, too; destroying IS and hurting Russia seems more likely.

    Besides, the Shale industry can be bailed out by Wall Street and Washington for awhile.

    They can be bailed out whenever. There’s no clock on it. Wall Street pumps in some cash and boom, the shale oil industry is back. I do tend to believe that what the Saudis are doing this with USG approval.

    Saudis seem to be hurting themselves at least as much as anyone else. How long can they really sustain $25/bbl oil?

    American congressmen on the Saudi payroll? You must be joking. The commenters at Unz, and perhaps half the authors, have all agreed that congressmen are paid to be at the beckon call of Israel.

    Please send a message back to Hasbara HQ: “need to be replaced with more intelligent stooge.” Thanks.

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  18. Svigor says:

    I think if we’re going with the idea that Saud is “dumping” oil (not cutting back production can be the same as not dumping) to harm oil-producers, we should rank entities harmed by this in order, from most harmed, to least. Then we can get an idea of who they’re most interested in harming.

    I submit, from most to least:

    Islamic State, Russia, Iraq, Iran, US, Saudi Arabia. Venezuela and Mexico should be on that list somewhere, too.

    We could substitute US Shale for US in this list, and that would put US Shale first, but then we could just as easily break out IS oil industry from IS, Russian oil industry from Russia, Iraqi oil industry from Iraq, Iranian oil industry from Iran, Saudi oil industry from Saudi Arabia, and we’ve got a whole new list, one I wouldn’t even know how begin to sort, without some research.

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  19. Svigor says:

    The situation would seem to be one of greater supply and diminishing demand not easily preplanned. The biggest mover is the old U.S.A. and the enhancement of fracking. The Saudis can pump much cheaper than we can frack so they’ll just ride it out.

    Again, if we’re comparing countries to countries, the Saudis are hurting far more than the US is. Our economy isn’t remotely dependent upon oil production, while oil is pretty much the only thing the Saudis produce. It’s like cutting off your nose to spite your face.

    I’ve seen no evidence whatsoever that the damage done to the US shale industry will be permanent. Everything I read, and common sense, says that re-starting the US shale industry will be far easier than it was to start in the first place, from scratch. Common sense also says that the US started the US shale industry from scratch once before, and could do it again.

    All of this suggests to me that the US shale industry barely even factors into the decision for the Saudis.

    Russia, Iran, Iraq, Islamic State; these seem to be the most likely targets.

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    • Replies: @OutWest
    Correct about the U.S. having other resources. But from the Saudi viewpoint that means that the U.S. will look at the economics while Russia, Iran, Iraq and the Islamic State (particularly) will keep on pumping for other than economic reasons. Just my view but I think that the Saudis are, in this case, looking to their economy rather than their regional intrigues.
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  20. Svigor says:

    (not cutting back production can be the same as not dumping)

    Should be:

    (not cutting back production can be the same as dumping)

    Funny, I’m trying to think of the last time I heard from the Peak Oil types. I guess it was right around the time the fracking boom got rolling. US shale kicked the Peak Oil guys’ can waaaaaay down the road.

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  21. bondo says:

    the saudis dont do much without american approval or request/demand.
    this oil overpump seems like an idea out of one of DCs jew war tanks.
    targets: russia, iran, and for good measure venezuela also hated by the jewcons.

    s. arabia wouldnt give a piss about the fracking business.

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  22. Kiza says:
    @The Grate Deign
    American congressmen on the Saudi payroll? You must be joking. The commenters at Unz, and perhaps half the authors, have all agreed that congressmen are paid to be at the beckon call of Israel.

    Try Sibel Edmonds as an FBI translator from the Turkish language.

    The owners of the US are, in diminishing order of power & control:
    1) Israelis,
    2) Saudis,
    3) Turks.
    Say hello to your owners Muricans.

    BTW, Margolis combines truths and lies, as he usually does, the prominent CIA writer he is. It was the Israeli-US connection which set this current war and oil policies of Saudi Arabia. My explanation is that they want Russia to get desperate and accept the money of the Jewish oligarchs who almost destroyed Russia in the 90s (see Paul Craig Roberts article). Naturally, this does not prevent a CIA writer to huff & puff about the Saudi oil policy, to enhance the plausible deniability.

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  23. bondo says:

    the saudis, turks give some money to some congressmen, lobbyists and they get what? so many pages “redacted” – maybe faked then redacted.

    forgot

    not too much mention of the armenian slaughter policy, i’ve read, of the donmehs/jews and of course awacs back when and the saudis watch what with awacs? camel races?

    added bullshit to divert from the total control by jewry.

    turks and saudis fetch us some pickled carp.

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  24. OutWest says:
    @Svigor

    The situation would seem to be one of greater supply and diminishing demand not easily preplanned. The biggest mover is the old U.S.A. and the enhancement of fracking. The Saudis can pump much cheaper than we can frack so they’ll just ride it out.
     
    Again, if we're comparing countries to countries, the Saudis are hurting far more than the US is. Our economy isn't remotely dependent upon oil production, while oil is pretty much the only thing the Saudis produce. It's like cutting off your nose to spite your face.

    I've seen no evidence whatsoever that the damage done to the US shale industry will be permanent. Everything I read, and common sense, says that re-starting the US shale industry will be far easier than it was to start in the first place, from scratch. Common sense also says that the US started the US shale industry from scratch once before, and could do it again.

    All of this suggests to me that the US shale industry barely even factors into the decision for the Saudis.

    Russia, Iran, Iraq, Islamic State; these seem to be the most likely targets.

    Correct about the U.S. having other resources. But from the Saudi viewpoint that means that the U.S. will look at the economics while Russia, Iran, Iraq and the Islamic State (particularly) will keep on pumping for other than economic reasons. Just my view but I think that the Saudis are, in this case, looking to their economy rather than their regional intrigues.

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  25. Anonymous says: • Disclaimer

    Why not just impose a tariff on oil imports from the muslim part of the world and use the revenue to reduce deficit spending? That seems a lot simpler than trying to tell the Saudis how much to produce or what to charge for it. Why hasn’t Sanders or Trump suggested this? Why is all the protectionist rhetoric about repetitive assembly line manufacturing jobs which are not a huge percentage of the labor market anyway.

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    • Replies: @Bill Jones
    Who then in America would buy "muslim oil"?

    And btw the US imports comparatively little from the middle east.

    http://www.businessinsider.com/map-us-oil-imports-by-country-of-origin-2013-1

    Do try to keep up.
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  26. Svigor says:

    Well, just saw the (brief) piece in the NYT yesterday; OPEC is now making noises about restricting supply.

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  27. @Anonymous
    Why not just impose a tariff on oil imports from the muslim part of the world and use the revenue to reduce deficit spending? That seems a lot simpler than trying to tell the Saudis how much to produce or what to charge for it. Why hasn't Sanders or Trump suggested this? Why is all the protectionist rhetoric about repetitive assembly line manufacturing jobs which are not a huge percentage of the labor market anyway.

    Who then in America would buy “muslim oil”?

    And btw the US imports comparatively little from the middle east.

    http://www.businessinsider.com/map-us-oil-imports-by-country-of-origin-2013-1

    Do try to keep up.

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  28. DaveE says:
    @Priss Factor
    Margolis is so wrong.

    There is no way Saudi Arabia is doing this without tacit US support and protection.

    If indeed US were really damaged by Saudi policy, US could easily exert pressure on Saudi to make it change policy. Without US support, Saudis would be vulnerable.

    Sure, certain sectors of the US economy is hurt by low energy prices, but US has tremendous cash reserves and can print more money at the drop of the hat.

    Also, Shale industry doesn't control American Power. Jews control US, and they see Russia as the main enemy to destroy.
    So, the Shale industry will have to take a backseat to Suprema-Semite interest.
    Besides, the Shale industry can be bailed out by Wall Street and Washington for awhile.
    And if the Saudi economy suffers, it too can be bailed out by US as friend and ally.

    On the surface, it seems like US and Saudis are squabbling over this, but it's all just bullshit. Saudis are doing this with the full support of the US as controlled by the Jews.
    If Jews didn't control the US, there would be less of an imperative to hurt Russia. But since Jews do control the US and see Russia as the main long-term threat to Zio-hegemony, the #1 priority of the Jews is to hurt Russia.
    And lowering energy prices is the the most effective way.

    Jews know that Russian people are lazy and confused. If Russian masses are driven over the edge economically, they might grow angry and grumble like the masses who brought down the Tsar. And as Russian society unravels, the oligarchs will collude with globalist Jews to bring down Putin. And then, a new Russia ruled by Jewish oligarchs and cuck-Russians will be favored economically and then lots of investment will pour into Russia... along with the homo agenda. Russia will do better economically but it will be a total cuck nation to the Jews.

    Jews are using Saudi Arabia like Don Corleone used Luca Brasi. Corleone told Brasi to act like he was having problems with the Corleones. It was all just a ruse.

    Likewise, the Jewish supremacists who rule the US want to fool the world that what the Saudis are doing is independent of American wishes and, by golly, Saudi actions are hurting US too. It's all bullshit. The fact is US can weather this because its economy is very diversified. Also, there is enough cash in the US to take care of the decline in Shale industry.
    Also, Saudis can weather this because they can suck out oil for cheap. Also, there is a secret agreement between US and Saudi Arabia that US will financially back the Saudis if the latter come under too much economic strain.

    US and Saudis are pulling the same dirty trick they did in the mid 80s when Saudi pumped oil like crazy to bring down gas to $10 a barrel. Back then, it was to hurt the USSR. Today, it is to hurt Russia.

    It's all about Jews trying to destroy Russia.

    IT IS SO OBVIOUS.

    No way Saudis would do something that is so detrimental to the US if US really objected.

    Look how Jews act in the US. Jews fixed it so that anyone who opposed the homo agenda(proxy for Jewish agenda) will be financially destroyed. Big business or small business, it doesn't matter. Jews have the power to go after the biggest companies if they don't comply, and it is out of fear that all the fortune 500 companies are totally with the homo agenda.
    Jews control law and government and will target any company that won't bend over to the homo agenda. As for small family bakeries, forget it. They can be destroyed so easily. And SJW, brainwashed retardo pink guards of the Jews, will go after anyone who won't bend over to the homo agenda.

    What Jews do in the US, they also globally. Since Russia won't totally bend over to the Jewish-homo or Jomo agenda, Jews will pull every dirty trick in the book to bring it down.

    What is called 'free trade' isn't. If indeed Jews support free trade, it shouldn't matter what kind of domestic or foreign policy Russia or Iran has. It should just be about supply and demand of whatever Russia or Iran has to offer.
    But Iran was under sanctions for a long time just because Jews and Israel hated it.
    And Russia is under sanctions because Jews hate it.

    So much for free trade.

    And inside the US, free trade is allowed ONLY FOR THOSE WHO BOW DOWN TO THE JEWISH-HOMO AGENDA.

    Consider how Chick-Fil-A has been banned from certain cities. Now, if US is all about free trade, Chick-Fil-A should be able to do business in any town on the basis of supply and demand. But Chick Fil A was banned purely on ideological grounds. It stood up for true marriage. So, it didn't matter that many people might want Chick Fil A chicken in a certain city or community. The business was banned simply because of ideological reasons. That's how 'free trade' works under Jews. You can trade freely ONLY IF Jews allow you to. Otherwise, it's sanction-time for you.

    But Jewish supremacists and homos can do as they please anywhere.
    Jews don't even believe in the political freedom of gentiles and conservatives.
    When David Duke was running for governor of Louisiana, Jews vowed to destroy the economy of the state and collectively hurt every person in Louisiana if Duke was made governor.

    But Jews don't care if a scum like Sheldon 'nuke Iran' Adelson runs much of Las Vegas.
    Jews don't care if Zionist-supremacists who support the imperialist state of Israel rule Hollywood.

    Jews don't care if Arnon Milchan, who admitted to spying on the US for Israel, moves freely in the US. American government knows that anyone who gives the order to arrest Milchan will be destroyed by Jewish Power that controls US government.

    Yesiree. Saudi Arabia is almost as Jewish as Israel, created right alongside it, at the same time, by the same “people”.

    Oil was discovered, the Rothschilds wanted it, they sent their agents like T.E. Lawrence to cut deals with the local tribes, the Jews moved in, set up the “Saudi Royal Family” in 1932 and the rest is profit, eh, I mean “history.”

    A few battles along the way but basically, it was as easy as stealing fleas from a camel.

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  29. Low oil prices don’t cause a recession. Low oil prices are a good thing. They might be caused by other factors which cause a recession but they are great for people. Like low house prices. Or low sandwich prices. Or low beer prices.

    Why do economists fail and fail again to understand that low commodity, consumer goods and asset prices are great for people and high wage or labour prices are great too! It is not rocket science.

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    • Replies: @OutWest
    Well, yes and no. The low oil prices are clearly directly good for the consumer. The problem concerns the international oil people who have been using their outsized oil profits to buy stocks etc. and now are having to sell these assets. This depresses the market and slops over into the general health of the economy. So bystanders are being affected by the rather deep dip in stock prices at a time that interest returns have be depressed by the government(s).
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  30. OutWest says:
    @This Is Our Home
    Low oil prices don't cause a recession. Low oil prices are a good thing. They might be caused by other factors which cause a recession but they are great for people. Like low house prices. Or low sandwich prices. Or low beer prices.

    Why do economists fail and fail again to understand that low commodity, consumer goods and asset prices are great for people and high wage or labour prices are great too! It is not rocket science.

    Well, yes and no. The low oil prices are clearly directly good for the consumer. The problem concerns the international oil people who have been using their outsized oil profits to buy stocks etc. and now are having to sell these assets. This depresses the market and slops over into the general health of the economy. So bystanders are being affected by the rather deep dip in stock prices at a time that interest returns have be depressed by the government(s).

    Read More
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