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What Kerry did give was the Master's Voice seal of approval to the Saudi strategy of low oil prices, thinking short-term about US oil consumers at the pump, and medium-term on putting pressure on the revenues of both Iran and Russia. Yet he obviously played down the blow to the US shale gas industry. The Saudis, for their part, have other key considerations, not least how to recover their market share across Asia - where their biggest customers are located. They are losing market share because of discounted crude sold by both Iran and Iraq. Thus, both must be "punished", on top of the House of Saud's pathological aversion to all things Shi'ite. As for the big picture in Syria, Obama's capo for dealing with The Caliph, General John Allen, laid down the law to Saudi newspaper Asharq Al-Awasat. He said, "[T]here is not going to be a military solution here [in Syria]". And he also said, "The intent is not to create a field force to liberate Damascus."

Short translation: those old goons of the previously "winning against Assad" Free Syrian Army (FSA) are now six feet under. And the new FSA goons to be trained in - of all places - Saudi Arabia are not exactly being regarded as holy saviors. For all practical purposes, the medium-term scenario spells out more US bombing (of infrastructure belonging to the Syrian nation); no regime change in Damascus; and The Caliph steadily consolidating his wins. And finally, the Hollywood factor Imagine if shabby "historical" al-Qaeda had these ultra-slick PR skills. Bearded has-beens with old Kalashnikovs in Afghan caves is so passe. The Caliph not only smuggles tens of thousands of barrels of oil a day undetected, but he also deploys a British hostage turned foreign correspondent (and who may have converted to the Salafi version of Islam) reporting from a hollowed out Kobani about to be totally captured by a bunch of takfiris and mercenaries (they certainly are not mujahideen).

Meanwhile, on the ground, only now has Ankara allowed roughly 200 peshmergas from Iraqi Kurdistan - whose slippery leaders do business with Turkey - to cross the border to, in theory, help Kobani. No soldiers, weapons or supplies are allowed for the Kurdish PKK/PYD forces which have been actually defending Kobani all along. Sultan Erdogan's endless procrastination will be judged by any independent investigation as the key element in allowing the possible fall of Kobani. Turkish Prime Minister Ahmet Davutoglu once again has laid down the "conditions" for his country to help with the - so far spectacularly innocuous - US campaign against The Caliph; the possible liberators of Kobani must only be Iraqi peshmergas, and remaining FSA goons, not "terrorists" (as in PKK/PYD). In the end, Kobani - precisely on the border between southeast Anatolia and northern Syria - is highly strategic. The situation on the ground is dire. There may be a little over 1,000 residents left, barricaded in their houses. Protecting them, a little over 2,000 Syrian Kurd fighters, including the female Ishtar brigade. Only 200 peshmergas coming from Iraqi Kurdistan are not going to make a huge difference against a few thousand heavily weaponized caliph goons deploying as many as 20 tanks. It does not look good, even though, unlike in the Caliph-approved Brit hostage report, the fake "mujahideen" are not in total control.

The Caliph, anyway, is bound to remain on a roll. Absolutely none of the above would be remotely possible without US/Western overt/covert complicity, proving once and for all that The Caliph is the ultimate gift that keeps on giving in the eternal GWOT (Global War On Terra). How come the Dick Cheney regime never thought about that?

Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.

So yes – it will be all about further moves towards the integration of Eurasia as the US is progressively squeezed out of Eurasia. We will see a complex geostrategic interplay progressively undermining the hegemony of the US dollar as a reserve currency and, most of all, the petrodollar. For all the immense challenges the Chinese face, all over Beijing it's easy to detect unmistakable signs of a self-assured, self-confident, fully emerged commercial superpower. President Xi Jinping and the current leadership will keep investing heavily in the urbanization drive and the fight against corruption, including at the highest levels of the Chinese Communist Party (CCP). Internationally, the Chinese will accelerate their overwhelming push for new 'Silk Roads' – both overland and maritime – which will underpin the long-term Chinese master strategy of unifying Eurasia with trade and commerce.

Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.

The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.

Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.

Not surprisingly, many members of the Saudi Royal Family are concerned about the situation which has come about after the new King Salman bin Abdulaziz Al Saud came to power. According to the Egyptian newspaper, the Egyptian Gazette, the changes that have occurred in the Kingdom’s foreign and domestic policy in less than 9 months of King Salman’s reign have cause a growing number of problems in both the Kingdom of Saudi Arabia and abroad. Dissatisfaction among the Saudis has risen to a new level. All of this is reflected in a letter that members of the Royal Family received from one of the younger princes. In the letter, which was widely reprinted in the world media, the anonymous monarch justifies the need for change and literally calls for a coup d’etat, which, according to the prince should by carried out by the 13 currently healthy sons of the founder of Saudi Arabia. “The King in not in a stable position and in reality the son of the King is ruling the Kingdom”, the prince wrote. He called for “the sons of Ibn Saud, from the eldest, Bandar, to the youngest, Muqrin” to urgently convene a meeting to examine the situation and see what should be done to save the Kingdom, to carry out a series of substitutions in high positions in the Kingdom of Saudi Arabia and to verify the decisions taken by members of the Saudi Arabian royal family, irrespective of which they generation belong to.

It is worth noting that the author of the letter refers to a range of reasons for which the current King Salman and his son should be removed from their posts, including their inability to lead or deal with the difficult economic situation in the country caused by the fall in oil prices, the unpopular war in Yemen, the foreign policy failures in Syria and the recent tragedy in Mecca that claimed more than 800 lives. Meanwhile the writer does not explain exactly whom he would like to see in the position of King and Crown Prince. Neither the Royal house, nor the 13 princes, to whom the letter is addressed, have since reacted. In any case, the current rulers are faced with a number of questions and problems, and the immediate future of Saudi Arabia will depend on how professionally and quickly they are able to solve them.

Adding credence to the theory about why Gadhafi had to be overthrown, as The New American reported in March, was the rebels’ odd decision to create a central bank to replace Gadhafi’s state-owned monetary authority. The decision was broadcast to the world in the early weeks of the conflict. In a statement describing a March 19 meeting, the rebel council announced, among other things, the creation of a new oil company. And more importantly: “Designation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.” The creation of a new central bank, even more so than the new national oil regime, left analysts scratching their heads. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” noted Robert Wenzel in an analysis for the Economic Policy Journal. “This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences,” he added. Wenzel also noted that the uprising looked like a “major oil and money play, with the true disaffected rebels being used as puppets and cover” while the transfer of control over money and oil supplies takes place.

Similar scenarios involving the global monetary system — based on the U.S. dollar as a global reserve currency, backed by the fact that oil is traded in American money — have also been associated with other targets of the U.S. government. Some analysts even say a pattern is developing. Iran, for example, is one of the few nations left in the world with a state-owned central bank. And Iraqi despot Saddam Hussein, once armed by the U.S. government to make war on Iran, was threatening to start selling oil in currencies other than the dollar just prior to the Bush administration’s “regime change” mission. While most of the establishment press in America has been silent on the issue of Gadhafi’s gold dinar scheme, in Russia, China, and the global alternative media, the theory has exploded in popularity.

Posted on January 13, 2012 by WashingtonsBlog The Reason for the Wars in the Middle East and North Africa:  Dollars The Middle Eastern and North African wars – planned 20 years ago – don’t necessarily have much to do with fighting terrorism. See this,  this and this. They are, in reality, about oil. And protecting Israel (and read the section entitled “Securing the Realm” here). But as AFP reports today, there is another major motivation for the expanding wars: The latest round of American sanctions are aimed at shutting down Iran’s central bank, a senior US official said Thursday, spelling out that intention directly for the first time. “We do need to close down the Central Bank of Iran (CBI),” the official told reporters on condition of anonymity, while adding that the United States is moving quickly to implement the sanctions, signed into law last month. *** Foreign central banks that deal with the Iranian central bank on oil transactions could also face similar restrictions under the new law, which has sparked fears of damage to US ties with nations like Russia and China. “If a correspondent bank of a US bank wants to do business with us and they’re doing business with CBI or other designated Iranian banks… then they’re going to get in trouble with us,” the US official said.

As much as Russia may be downsizing, Iran (and Hezbollah) are not. Tehran has trained and weaponized key paramilitary forces – thousands of soldiers from Iraq and Afghanistan fighting side by side with Hezbollah and the Syrian Arab Army (SAA). The SAA will keep advancing and establishing facts on the ground. As the Geneva negotiations pick up, those facts are now relatively frozen. Which brings us to the key sticking point in Geneva – which has got to be included in the possible grand bargain. The grand bargain is based on the current ceasefire (or "cessation of hostilities") holding, which is far from a given. Assuming all these positions hold, a federal Syria could emerge, what could be dubbed Break Up Light.

And yet, in the shadows, lurks the possibility that Russian intel may be ready to strike a deal with the Turkish military – with the corollary that a possible removal of Sultan Erdogan would pave the way for the reestablishment of the Russia-Turkey friendship, essential for Eurasia integration.

Only the proverbially clueless Western corporate media was caught off-guard by Russia’s latest diplomatic coup in Syria. Consistency has been the norm. Russia has been consistently upgrading the Russia-China strategic partnership. This has run in parallel to the hybrid warfare in Ukraine (asymmetric operations mixed with economic, political, military and technological support to the Donetsk and Lugansk republics); even NATO officials with a decent IQ had to admit that without Russian diplomacy there’s no solution to the war in Donbass. In Syria, Moscow accomplished the outstanding feat of making Team Obama see the light beyond the fog of neo-con-instilled war, leading to a solution involving Syria’s chemical arsenal after Obama ensnared himself in his own red line. Obama owes it to Putin and Lavrov, who literally saved him not only from tremendous embarrassment but from yet another massive Middle East quagmire.

Russia will be closely monitoring the current “cessation of hostilities”; and if the War Party decides to ramp up “support” for ISIS/ISIL/Daesh or the “moderate rebel” front via any shadow war move, Russia will be back in a flash. As for Sultan Erdogan, he can brag what he wants about his “no-fly zone” pipe dream; but the fact is the northwestern Syria-Turkish border is now fully protected by the S-400 air defense system. Moreover, the close collaboration of the “4+1” coalition – Russia, Syria, Iran, Iraq, plus Hezbollah – has broken more ground than a mere Russia-Shi’te alignment. It prefigures a major geopolitical shift, where NATO is not the only game in town anymore, dictating humanitarian imperialism; this “other” coalition could be seen as a prefiguration of a future, key, global role for the Shanghai Cooperation Organization.

As we stand, it may seem futile to talk about winners and losers in the five-year-long Syrian tragedy – especially with Syria destroyed by a vicious, imposed proxy war. But facts on the ground point, geopolitically, to a major victory for Russia, Iran and Syrian Kurds, and a major loss for Turkey and the GCC petrodollar gang, especially considering the huge geo-energy interests in play. It’s always crucial to stress that Syria is an energy war – with the “prize” being who will be better positioned to supply Europe with natural gas; the proposed Iran-Iraq-Syria pipeline, or the rival Qatar pipeline to Turkey that would imply a pliable Damascus. Other serious geopolitical losers include the self-proclaimed humanitarianism of the UN and the EU. And most of all the Pentagon and the CIA and their gaggle of weaponized “moderate rebels”. It ain’t over till the last jihadi sings his Paradise song. Meanwhile, “time out” Russia is watching.

And in a total symbiotic way, the SPV opens another path for Russia and China as well. After all, the SPV mechanism will bypass the Belgium-based SWIFT financial network, on which the US interferes at will. SPV may become the preferred post-SWIFT mechanism, allowing for even more cross-border business across Eurasia and expanding to the Global South.

The game reveals its complexity when we consider that Iran has been the catalyst for the EU to finally stand up to the US – and potentially get closer to Russia and China. What we see emerging is the contours of a possible cross-Eurasia alliance, in multiple fronts, between Russia-China-Iran – the three key nodes of Eurasia integration – and the EU-3. It’s a game worthy of a Persian chess master: involving energy wars, the balance of power in Southwest Asia, the absolute power of the US-controlled global financial system and the status of the US dollar – bolstered by the petrodollar – as the global reserve currency.