Putin and Petro-dollar Revolt

[Dover]

Subtle changes are in the wind on the energy front. As much as some people want to regard Russia as a strong American ally, their behavior on several fronts testifies to the contrary. Some truly staggering developments are underway, not adequately reported. Behind the scenes, covered little by the intrepid US press & media, a meeting was convened two weeks ago in the Urals of Russia. European leaders, and OPEC representatives, and Putin quietly are plotting to establish stronger ties between Europe and Russia in their basis for financial transactions. Putin is adroitly offering to install euro pricing of crude oil, which would surely favor Germany and other large EU nations. He strives to obtain geopolitical concessions from EU leaders, namely a more powerful voice for Russia in world politics.

OPEC appears to be willing and eager to join in new alliances to undermine the US domination from owning the world reserve currency. Enormous consequences follow, which lie completely in US blind spots. A strange contrasting parallel might exist between the United States and Russia, regarding relationships with large energy companies. The USA has evolved into a cooperative collusion with big companies like Halliburton. Russia has broken down into a confrontational situation steeped in confiscation with big companies like Yukos. The USA seems to work constructively with large firms, with governmental support. This is seen in sponsored foreign grain sales, in development of petro-chemical plants, in defense contracts for the military complex, in permissiveness toward software monopolies, in protection of the steel industry, and elsewhere. Russia seems to work in adversarial roles to steal back and forth with their big firms.

RUSSIAN ASSAULT ON FREE ENTERPRISE
Russian legal treachery embodies a big insult to free enterprise and rights to property. One might say Yukos Oil began as a company with stolen property, or cozy deals to gather in several purchases from state-owned regions, or tax scoffs at Russian authorities enabled growth. Fine, whatever. My attention is trained on current methods, which can be aptly labeled as legal warfare, and trends which betray private property. The Yukos tax & fine bill submitted was revealed to be $18.5 billion, which exceeds the company's annual revenue, and goes far beyond the level where embarrassment is profoundly clear. The Russian government has established a modus operandi, i.e. method of operation. A company is targeted for seizure. It is charged with tax evasion. Their assets are then frozen, pending investigations and legal outcomes. Cash flow is interrupted, only to put debt service repayments in jeopardy. The courts declare debt default, a fresh new problem for the targeted company, whose stock declines in value, and possibly sharply. Under financial duress, a deal is cut, as taxes are paid as a fraction of the original demand in return for a sale of large tracts of the company's properties to the Russian govt. Charges are reduced or negotiated along with the distress sale of their property. Such a pattern has shown itself clearly with the Yukos case.

Moreover on the front tied to cooperative agreements, Russia's treachery is wholly evident in its dealings with western firms. Pan Am Silver was severely victimized, via dissolution of a partner firm and reconstitution of a new corporate entity Polimetall with those mining rights, leaving the US firm out in the cold Siberian winter. PanAm Silver appears not to be in line to share profits where silver production is forthcoming. The original company was dissolved, and along with it, all contracts with PanAm. Czarist gamesmanship with western energy companies is now in focus. British Petroleum is at risk with older contracts, while others like Conoco Philips are at risk with newer contracts. British Petroleum could be in the midst of a bold double-cross, for the craziest of sounding reasons. They exceeded licensed production amounts!

cont'd
http://www.gold-eagle.com/editorials_04/willie112404.html

[nadinbrzezinski]

1. The Moscow Central Bank will be moving in the

nest 72 hours, max on Monday... today China dumped half its reserves in T-Bills

[Dover]

2. Huh? Not sure what you mean.......what about moving into the nest in

72 hours?

[autorank]

3. I'll see your Putin and raise you a Rove.

:wtf: These guys are re-arranging the deck chairs on the Titanic. I'd like us (the elders...haha) to go back to The Structure of Scientific Revolutions by Thomas Kuhn. Remember that eye opener. When the old paradigm ceases to work, when the last logical hurdles have been cleared and you keep hitting walls, you develop a new paradigm.

Oil pollution, scarcity, the stupidity of invading countries to maintain our SUVs...these and more absurdities are all leading to a breakthrough scientifically and technically that will bypass oil. Either that happens, and it should based on historical responses and our current scientific skill set, or we're all toast.

[Dover]

4. Here's some things that may or may not be linked........

If this is true, my guess is that the U.S. would attempt to oust or assassinate Putin. Is the current revolt in the Ukraine, the two downed airlines (that were heading for Putin's vacation spot) and the school shootings part of this kind of an effort? All three events certainly have worked against Putin imo.

And is the recent downing of the private plane that was on its way to pick up Bush Sr. related as well?

So many apparent coincidences...

Remember this article?

Putin: Why Not Price Oil in Euros?

By Catherine Belton
Moscow Times
October 10, 2003

http://www.globalpolicy.org/socecon/crisis/2003/1010oilpriceeuro.htm

[German-Lefty]

5. How do people cashing out of the dollar maximize their take?

From the article:
"Asians, with their collective $1900 billion in foreign exchange reserves, stand to lose significant capital in their banking systems, since the majority of these reserves are in US$-based securities. Asians, most notably Japan and China, find themselves in an awkward position. If they extend deeper support to the US$, their risk rises. If they diversify or withdraw with more conviction, their capital losses could be staggering."

It's kind of like owning stock in a failing company the best thing for the small holder to do is to sell before everyone else. Big investors can't do this because they have to find big buyers somewhere.

If all the US debtors put their heads together and came up with a plan to get the most for their dollars, how would they do it?

It seems like no matter what market they try to use to get out of the dollar, that market will notice and drop the value of the dollar. Here are some ideas where the money could go:
1) paying off dollar debts - for example Japan could refinance Argentina
2) buying precious metals - what a waste
3) buy US hard assets like real estate (could this explain a housing bubble?)
4) buying US stocks - if you think the US companies are safe
5) buying US futures - buying oil futures in USD, requires some sucker to sell the stuff to you
6) buying a better currency

All these things seem to require some sucker to buy your USD.