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The US is making a desperate attempt to knock over a petro-state or two or three before its shale oil runs out, with the Canadians, their tar sands now unprofitable, hitching a ride on its coat-tails, because if this attempt doesn't work, then it's lights out for the empire. But none of their recent gambits have worked. This is the winter of imperial discontent, and the empire is has been reduced to pulling pathetic little stunts that would be quite funny if they weren't also sinister and sad.

But a bunch of deluded people muttering to themselves in a dark corner, while the rest of the world points at them and laughs, does not an empire make. With this level of performance, I would venture to guess that nothing the empire tries from here on will work to its satisfaction.

Because it will recover. The fix for low oil prices is... low oil prices. Past some point high-priced producers will naturally stop producing, the excess inventory will get burned up, and the price will recover. Not only will it recover, but it will probably spike, because a country littered with the corpses of bankrupt oil companies is not one that is likely to jump right back into producing lots of oil while, on the other hand, beyond a few uses of fossil fuels that are discretionary, demand is quite inelastic. And an oil price spike will cause another round of demand destruction, because the consumers, devastated by the bankruptcies and the job losses from the collapse of the oil patch, will soon be bankrupted by the higher price. And that will cause the price of oil to collapse again. And so on until the last industrialist dies. His cause of death will be listed as “whiplash”: the “shaken industrialist syndrome,” if you will. Oil prices too high/low in rapid alternation will have caused his neck to snap.

King Salman has been part of the ruling clique of princes for decades and is thought likely to continue the main thrusts of Saudi strategic policy, including maintaining the alliance with the United States and working towards energy market stability. During his five decades as Riyadh governor he was reputedly adept at managing the delicate balance of clerical, tribal and princely interests that determine Saudi policy, while maintaining good relations with the West.In the long term Saudi rulers have to manage the needs of a rapidly growing population plagued by structural unemployment, and an economy that remains overly dependent on oil revenue and undermined by lavish subsidies.Saudi Arabia, which holds more than a fifth of the world's crude oil, also exerts some influence over the world's 1.6 billion Muslims through its guardianship of Mecca and Medina, Islam's holiest sites.

Most senior members of the ruling al-Saud family are thought to favor similar positions on foreign and energy policy, but incoming kings have traditionally chosen to appoint new ministers to head top ministries like oil and finance. In a country where the big ministries are dominated by royals, successive kings have kept the oil portfolio reserved for commoners and insisted on maintaining substantial spare output capacity to help reduce market volatility.

Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time: Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions. ... [T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.

Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected. And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...

... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.

Next, our small non-profit news outfit, WhoWhatWhy, which covers primarily international and national investigative stories, took the reporting to another level. Our story established that the owner of the house, Esam Ghazzawi, was a direct lieutenant to a powerful member of the Saudi royal family who’d learned to fly in Florida years earlier. Ghazzawi was director of the UK division of EIRAD Trading and Contracting Co. Ltd., which among other things, holds the Saudi franchise for many multinational brands including UPS. Ghazzawi’s boss, the chairman of EIRAD Holding Co. Ltd., is Prince Sultan bin Salman bin Abdul Aziz Al-Saud.

A fighter pilot who also flew on a Space Shuttle mission, Prince Sultan is the son of the new Saudi king, Salman. WhoWhatWhy’s reporting raised serious questions about whether high-ranking Saudis were directly involved with the 9/11 operation, and whether the U.S. government covered up what it knew. WhoWhatWhy paid a major news distribution outfit to send our story to thousands of news outlets, major and minor, in the United States. Again, the silence was deafening. *** The debate about Moussaoui’s newly released testimony centers on whether he can be trusted. But there is no debate about the Sarasota evidence we uncovered. We’re still waiting for the Times, along with the rest of the mainstream media, to acknowledge that material. Whatever happened in Florida, whatever the veracity of Moussaoui’s claims, anyone with an open mind will smell enough smoke to wonder whose interests are being served by pretending there’s no fire in the Saudi-9/11 connection.

For more on the Bush family’s relationship to the Saudi royal family, see Russ Baker’s book, Family of Secrets.

Ukraine’s debt is poised to extend declines as investors are underestimating losses in the country’s planned debt reorganization, analysts at Goldman Sachs Group Inc. and JPMorgan Chase & Co. said on Friday in separate reports. “Ukraine is bankrupt and the only reason the bonds are trading at 40-45 is because of IMF involvement,” Dmitri Barinov, a money manager who oversees $2.6 billion of emerging-market bonds at Union Investment Privatfonds GmbH in Frankfurt, said by e-mail on Monday. “Ukraine has neither the possibility nor the willingness to pay its debt, but will be forced to restructure under IMF conditions.” The hryvnia’s 51 percent depreciation against the dollar this year, following a 48 percent drop in 2014, is driving up the prices of imports and energy, while making external debt payments more difficult for Ukraine. Gontereva yielded control of the currency earlier this month, allowing it to weaken in an IMF-backed move which helped eliminate an unofficial street market for currency transactions. “The National Bank of Ukraine has few options, with the West still dragging its feet over financial support,” Ash, the chief emerging-markets economist at Standard Bank in London, said by e-mail.

International law with regard to the situation in Ukraine is difficult and subject to interpretation rather than regulation. On one hand there is the principal of non-interference into internal affairs which has been undermined, practically by financing policy groups and NGOs and legally by constructs such as the “responsibility to protect”. One the other hand there is the principle about the invulnerability of national borders. This principle, on the other hand, is being contradicted by the equally valid right to self-determination as seen in the Crimean referendum and Crimea’s accession into the Russian Federation or the 2014 referendum on Scottish independence. International law is, on other words, highly subjective and based on policy and  constructs about apparent “legitimacy” rather than legality and law.

Experts warn about the risk of unwanted nuclear war. Several analysts would note that the deterioration in relations between NATO and Russia poses an acute risk for a military escalation which could include the use of nuclear weapons and escalate into a conflict of global reach regardless whether it is wanted or unwanted. During a two-day symposium at the New York Academy of Medical Sciences on February 28 and March 1, 2015, several internationally renown experts warned about the risk about a potential escalation of the situation in Ukraine and the involvement of nuclear weapons due to mutual distrust and nuclear forces being on hair-trigger alert.

If the powers are granted by the National Assembly, Maduro plans to draft next Tuesday an “anti-imperialist law to prepare us for all scenarios and to win,” he said today.

Regardless of whether one thinks this evidence is sufficient (the U.S. press has not reported most of it), it is little wonder that the governments in the region are convinced. Efforts to overthrow the democratically elected government of Venezuela have been underway for most of the past 15 years. Why would it be any different now, when the economy is in recession and there was an effort to force out the government just last year? And has anyone ever seen an attempted ouster of a leftist government in Latin America that Washington had nothing to do with?Because I haven’t.

The face of Washington in Latin America is one of extremism. Despite some changes in other areas of foreign policy (e.g., Obama’s engagement with Iran), this face has not changed very much since Reagan warned us that Nicaragua’s Sandinistas “were just two days’ driving time from Harlingen, Texas.” He was ridiculed by Garry Trudeau in “Doonesbury” and other satirists. The Obama White House’s Reagan redux should get the same treatment.

his is the state of affairs NATO bequeathed to Libya, reversing the country’s trajectory as a stable, prosperous pan-African state that was a leading player in the African Union, and a thorn in the side of US and British attempts to re-establish military domination. And it is not only Libya that has suffered; the power vacuum resulting from NATO’s wholesale destruction of the Libyan state apparatus has dragged the whole region into the vortex. As Brendan O Neill has shown in detail, the daily horrors being perpetrated in Mali, Nigeria and now Cameroon are all a direct result of NATO’s bloodletting, as death squads from across the entire Sahel-Sahara region have been given free reign to set up training camps and loot weapons across the giant zone of lawlessness which NATO have sculpted out of Libya.

The result? African states that in 2010 were forging ahead economically, greatly benefitting from Chinese infrastructure and manufacturing investment, moving away from centuries of colonial and neo-colonial dependence on extortionate Western financial institutions, have been confronted with massive new terror threats from groups such as Boko Haram, flush with new weaponry and facilities courtesy of NATO’s humanitarianism. Algeria and Egypt, too, still governed by the same independent-minded movements which overthrew European colonialism, have seen their borders destabilised, setting the stage for ongoing debilitating attacks planned and executed from NATO’s new Libyan militocracy. This is the context in which Egypt is launching the regional fightback against NATO’s destabilisation strategy.

Over the past year in particular, Egyptians have witnessed their Western neighbour rapidly descending down the same path of ISIS takeover as Syria. In Syria, a civil war between a Western-sponsored insurgency and an elected secular government has seen the anti-government forces rapidly fall under the sway of ISIS, as the West’s supposed ‘moderates’ in the Free Syrian Army either join forces with ISIS (impressed by their military prowess, hi-tech weaponry, and massive funding) or find themselves overrun by them. In Libya, the same pattern is quickly developing. The latest phase in the Libyan disaster began last June when the militias who dominated the previous parliament (calling themselves the ‘Libya Dawn’ coalition) lost the election and refused to accept the results, torching the country’s airport and oil storage facilities as opening salvos in an ongoing civil war between them and the newly elected parliament. Both parliaments have the allegiance of various armed factions, and have set up their own rival governments, each controlling different parts of the country. But, starting in Derna last November, areas taken by the Libya Dawn faction have begun falling to ISIS. Last weekend’s capture of Sirte was the third major town to be taken by them, and there is no sign that it will be the last. This is the role that has consistently been played by the West’s proxies across the region – paving the way and laying the ground for ISIS takeover. Egyptian President Sisi’s intervention – airstrikes against ISIS targets in Libya - aims to reverse this trajectory before it reaches Iraqi-Syrian proportions.

The internationally-recognised Libyan government based in Tobruk – the one appointed by the House of Representatives that won the election last summer - has welcomed the Egyptian intervention. Not only, they hope, will it help prevent ISIS takeover, but will also cement Egyptian support for their side in the ongoing civil war with ‘Libya Dawn’. Indeed, Egypt could, with some justification, claim that winning the war against ISIS requires a unified Libyan government committed to this goal, and that the Dawn’s refusal to recognise the elected parliament , not to mention their ‘ambiguous’ attitude towards ISIS, is the major obstacle to achieving such an outcome. Does this mean that the Egyptian intervention will scupper the UN’s ‘Libya dialogue’ peace talks initiative? Not necessarily; in fact it could have the opposite effect. The first two rounds of the talks were boycotted by the General National Congress (GNC) - the Libya Dawn parliament- safe in the knowledge that they would continue to receive weapons and financing from NATO partners Qatar and Turkey whilst the internationally-recognised Tobruk government remained under an international arms embargo. As the UK’s envoy to the Libya Dialogue, Jonathan Powell, noted this week, the “sine qua non for a [peace] settlement” is a “mutually hurting stalemate”. By balancing up the scales in the civil war, Egyptian support military support for the Tobruk government may show the GNC that taking the talks seriously will be more in their interests than continuation of the fight.

Sisi’s call for the military support of the West in his intervention has effectively been rejected, as he very likely expected it to be. A joint statement by the US and Britain and their allies on Tuesday poured cold water on the idea, and no wonder – they did not go to all the bother of turning Libya into the centre of their regional destabilisation strategy only to then try to stabilise it just when it is starting to bear fruit. However, by forcing them to come out with such a statement, Sisi has called the West’s bluff. The US and Britain claim to be committed to the destruction of ISIS, a formation which is the product of the insurgency they have sponsored in Syria for the past four years, and Sisi is asking them to put their money where their mouth is. They have refused to do so. In the end, the Egyptian resolution to the UN Security Council (UNSC) on Wednesday made no mention of calling for military intervention by other powers, and limited itself to calling for an end to the one-sided international arms embargo which prevents the arming of the elected government but does not seem to deter NATO’s regional partners from openly equipping the ‘Libya Dawn’ militias. Sisi has effectively forced the West to show its hand: their rejection of his proposal to support the intervention makes it clear to the world the two-faced nature of their supposed commitment to the destruction of ISIS.

There are, however, deep divisions on this issue in Europe. France is deepening its military presence in the Sahel-Sahara region, with 3000 troops based in Chad, Niger, Burkina Faso and Mali and a massive new base opened on the Libyan border in Niger last October, and would likely welcome a pretext to extend its operations to its historic protectorate in Southern Libya. Italy, likewise, is getting cold feet about the destabilisation it helped to unleash, having not only damaged a valuable trading partner, but increasingly being faced with hundreds of thousands of refugees fleeing the horror and destitution that NATO has gifted the region. But neither are likely to do anything without UNSC approval, which is likely to continue to be blocked by the US and Britain, who are more than happy to see countries like Russian-allied Egypt and Chinese-funded Nigeria weakened and their development retarded by terror bombings. Sisi’s actions will, it is hoped, not only make abundantly clear the West’s acquiescence in the horrors it has created – but also pave the way for an effective fightback against them.

Among its other critics, Sen. Elizabeth Warren has slammed the idea of ISDS provisions as a surrender of democratic ideals to corporate interests. According to Warren, ISDS would simply “tilt the playing field in the United States further in favor of big multinational corporations.” By having unchallenged input on secretive TPP talks, Warren argued last month, these large companies and financial interests “are increasingly realizing this is an opportunity to gut U.S. regulations they don’t like.” According to Grayson, putting Wednesday’s ISDS briefing in a classified setting “is part of a multi-year campaign of deception and destruction. Why do we classify information? It’s to keep sensitive information out of the hands of foreign governments. In this case, foreign governments already have this information. They’re the people the administration is negotiating with. The only purpose of classifying this information is to keep it from the American people.”

It's easier for Brazil to win the World Cup with a team of crybabies with no tactical nous than having US Secretary of State John Kerry and his State Department ciphers understand that the Syrian "opposition" is controlled by jihadis. But then again, they do know -- and that perfectly fits into the Empire of Chaos's not so hidden Global War on Terror (GWOT) agenda of an ever-expanding proxy war in both Syria and Iraq fueled by terror financing. So 13 years ago, Washington crushed both al-Qaeda and the Taliban in Afghanistan. Then the Taliban were reborn. Then came Shock and Awe. Then came "Mission Accomplished." Then al-Qaeda was introduced in Iraq. Then al-Qaeda was dead because Osama bin Laden was dead. Then came ISIL. And now there's IS. And we start all over again, not in the Hindu Kush, but in the Levant. With a new Osama. What's not to like? If anyone thinks this whole racket is part of a new live Monty Python sketch ahead of their reunion gig this month in London, that's because it is.

Among the members of the Organization of the Petroleum Exporting Countries, Venezuela and Iraq have called for output cuts. OPEC's traditional price hawk Iran said on Wednesday its views were now close to those of Saudi Arabia.

"The onslaught of North American shale oil has drastically undermined OPEC’s position and reduced its market share," said Dr. Gary Ross, chief executive of PIRA Energy Group. Russia, which produces 10.5 million barrels per day (bpd) or 11 percent of global oil, came to Tuesday's meeting amid hints it might agree to cut output as it suffers from oil's price fall and Western sanctions over Moscow's actions in Ukraine.But as that meeting with Naimi and officials from Venezuela and non-OPEC member Mexico ended, Russia's most influential oil official, state firm Rosneft's (ROSN.MM) head Igor Sechin, emerged with a surprise message - Russia will not reduce output even if oil falls to $60 per barrel.

Sechin added that he expected low oil prices to do more damage to producing nations with higher costs, in a clear reference to the U.S. shale boom. On Wednesday, Russian Energy Minister Alexander Novak said he expected the country's output to be flat next year. Many at OPEC were surprised by Sechin's suggestion that Russia - in desperate need of oil prices above $100 per barrel to balance its budget - was ready for a price war.

OPEC publications have shown that global supply will exceed demand by more than 1 million bpd in the first half of next year.While the statistics speak in favour of a cut, the build-up to the OPEC meeting has seen one of the most heated debates in years about the next policy step for the group."The idea of unleashing a price war against U.S. shale oil seems strange to me. I doubt you can win this battle as most U.S. oil producers are hedging a lot of their output," said a top oil executive visiting Vienna for talks with OPEC ministers.

However, oil makes up 97 percent of Venezuela’s export earnings, and the market shift has already caused the country a 30 percent loss in foreign income, Maduro said last week. According to Reuters, PDVSA has put the possible sale of U.S. refinery Citgo Petroleum Corp back on the table. People close to the matter have reported that Lazard Ltd, the investment bank hired by PDVSA to explore the sale, has set a late-December deadline for new offers, despite Venezuelan finance minister ruling it out last month. Citgo runs three refineries in the United States, totaling an estimated value of up to $10 billion.

The European Central Bank (ECB) is setting the stage of a complete financial collapse of fiat currencies across the globe. Joining in the scheme are other technocratic institutions such as the Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank.

Turkey also made a killing. It’s not only the deal with Gazprom; Moscow will build no less than Turkey’s entire nuclear industry, apart from increased soft power interaction (more trade and tourism). Most of all, Turkey is now increasingly on the verge of becoming a full member of the Shanghai Cooperation Organization (SCO); Moscow is actively lobbying for it. This means Turkey acceding to a privileged position as a major hub simultaneously in the Eurasian Economic Belt and of course the Chinese New Silk Road(s). The EU blocks Turkey? Turkey looks east. That’s Eurasian integration on the move. Washington has tried very hard to create a New Berlin Wall from the Baltics to the Black Sea to “isolate” Russia. Now comes yet another Putin judo/chess/go counterpunch – which the opponent never saw coming. And exactly across the Black Sea. A key Turkish strategic imperative is to configure itself as the indispensable energy crossroads from East to West – transiting everything from Iraqi oil to Caspian Sea gas. Oil from Azerbaijan already transits Turkey via the Bill Clinton/Zbig Brzezinski-propelled BTC (Baku-Tblisi-Ceyhan) pipeline. Turkey would also be the crossroads if a Trans-Caspian pipeline is ever built (slim chances as it stands), pumping natural gas from Turkmenistan to Azerbaijan, then transported to Turkey and finally Europe.

So what Putin’s judo/chess/go counterpunch accomplished with a single move is to have stupid EU sanctions once again hurt the EU. The German economy is already hurting badly because of lost Russia business. The EC brilliant “strategy” revolves around the EU’s so-called Third Energy Package, which requires that pipelines and the natural gas flowing inside them must be owned by separate companies. The target of this package has always been Gazprom – which owns pipelines in many Central and Eastern European nations. And the target within the target has always been South Stream.

Now it’s up to Bulgaria and Hungary – which, by the way, have always fought the EC “strategy” – to explain the fiasco to their own populations, and to keep pressing Brussels; after all they are bound to lose a fortune, not to mention get no gas, with South Stream out of the picture. So here’s the bottom line; Russia sells even more gas – to Turkey; and the EU, pressured by the US, is reduced to dancing like a bunch of headless chickens in dark Brussels corridors wondering what hit them. The Atlanticists are back to default mode – cooking up yet more sanctions while Russia is set to keep buying more and more gold.

This is not the endgame – far from it. In the near future, many variables will intersect. Ankara’s game may change – but that’s far from a given. President Erdogan – the Sultan of Constantinople – has certainly identified a rival Caliph, Ibrahim of ISIS/ISIL/Daesh fame, trying to steal his mojo. Thus the Sultan may flirt with mollifying his neo-Ottoman dreams and steer Turkey back to its previously ditched “zero problems with our neighbors” foreign policy doctrine. The House of Saud is like a camel in the Arctic. The House of Saud’s lethal game in Syria always boiled down to regime change so a Saudi-sponsored oil pipeline from Syria to Turkey might be built – dethroning the proposed, $10 billion Iran-Iraq-Syria “Islamic” pipeline. Now the Saudis see Russia about to supply all of Turkey’s energy needs – and then some. And “Assad must go” still won’t go.

US neo-cons are also sharpening their spears. As soon as early 2015 there may be a Ukrainian Freedom Act approved by the US Congress. Translation: Ukraine as a “major US non-NATO ally” which means, in practice, a NATO annexation. Next step; more turbo-charged neo-con provocation of Russia. A possible scenario is vassal/puppies such as Romania or Bulgaria – pressed by Washington – deciding to allow full access for NATO vessels into the Black Sea. Who cares this would violate the current Black Sea agreements that affect both Russia and Turkey? And then there’s a Rumsfeldian “known unknown”; how the weak Balkans will feel subordinated to the whims of Ankara. As much as Brussels keeps Greece, Bulgaria and Serbia in a strait jacket, in energy terms they will start depending on Turkey’s goodwill. For the moment, let’s appreciate the magnitude of the geopolitical shockwaves. There will be more, when we least expect them.