Who expected Saudi Arabia to welcome Biden and his shameful calls to ramp up production after previously telling the world that it considers Saudi Arabia a pariah state…
It is not necessary to know how to read a crystal ball to understand the mistakes that are being made in Europe and the United States with energy management.
One only needs to know mathematics and history to interpret the current environment of the energy crisis in the context of a global debt crisis, according to GoldSwitzerland.
And clearly to better predict the direction of the currency and gold markets without using cards… tarot.
Not surprisingly, the question of the simple (as well as frightening) levels of US debt makes such a vision almost too simple.
the oil issue
One doesn’t need to be an expert on the oil trade or the green politics of the US far-left to realize that the current US administration’s anti-shale policies are good (questionable?) environmentally, but ignore the math, the history and science of national and global sound thinking.
Oil, however, remains important.
And when understood in the broader context of macroeconomic issues—namely, debt, currencies, inflation, gold, a tough Fed, and a tooled US dollar—current and future trends are already in motion.
And when it comes to the never-ending debate about global warming, butterfly-friendly energy policies, and the simple reality of fossil fuels being part of and not a threat to our planet, there are certainly no answers.
However, the Germans (and their solar ideas in a part of Europe with very little sun) don’t get it…
In fact, they get much of their (nuclear) power from France and now they have to burn coal to get through the winter.
Biden, as seems pretty clear to everyone, is not in charge of American politics.
This is a terrifying fact.
However, even scarier is determining who is responsible.
Who was in charge of who expected Saudi Arabia to welcome Biden and his shameful calls to ramp up production after previously telling the world that it considered Saudi Arabia a pariah state…
Meanwhile, Saudi Arabia now spends a lot more time with China and Iran.
Also, how does the White House explain how it expects increased US shale oil production to reduce energy inflation and at the same time try to get oil out of the US supply chain? ?
Also, it might be worth reminding Americans and politicians weary of inflated fuel prices that the vast majority of these inflated costs at the pump are due to US per-gallon taxes, not Saudi production cuts.
At current US oil exploration and production levels, the US (according to the Dallas Fed itself) would have to participate in annual energy price inflation levels of 8-10% just to keep the oil industry lights on at a balanced price level.
So conservative oil/fuel price inflation rates when viewed in the context of US federal debt of over $31 trillion. dollars, essentially means that the Federal Reserve’s ability to cover its ever-increasing public debt burden will be weakened by at least 8-10% per year at a time in US history when it needs all the help you can get.
Fight inflation with inflation and debt with debt?
According to GoldSwitzerland, it goes without saying that the only “solution” to these inflated debt loads will be the monetarist, whose damning (but now ossified) “solution” to dealing with inflated oil prices is an even more inflationary policy of printing more money to cure an inflationary crisis.
The Fed’s monetary policy boils down to this: and an inflationary crisis with more…inflation.
Is this “sound monetary policy”?
Or is it just exporting inflation to the rest of the world?
Because that’s the problem.
Quite simply: those US dollars are running out (unless more are printed).
How long will world currencies (and leaders) remain captive to the dollar?
Regardless of whether or not one believes in the perpetual hegemony of the dollar as a payment system, everyone can agree that the liquidity of the dollar is running out.
Nations facing the dual problem of needing more US dollars to pay for inflated oil prices and inflated US dollar debts.
What can these nations do about it?
Just turn your back on the dollar, according to GoldSwitzerland.
How the United States is creating a global currency crisis
Unless they turn their back on the US dollar (not yet), the only option other nations have today is to devalue their own currencies at home.
But again values will fall, with gold once again being the safe haven.
This clearly crooked American system that exports its inflation to a world forced since the 1970s to import oil under an inflationary dollar has real potential to collapse.
Countries like Ghana have already realized that it is better to trade oil in real gold than in fiat dollars.
If the world slowly shifts towards liquidating oil into gold (partly or fully) to avoid a global currency crisis, gold will have to appreciate to levels significantly higher than current prices.