Further Evidence of Saudi Strategic Difficulties
By Daily Bell Staff - January 05, 2016

Will the U.S. fall for Saudi Arabia's deliberate provocation in killing of Shi'ite cleric?… Saudi Arabia's execution of a prominent political leader of the monarchy's Shiite minority has worsened Mideast tensions and is forcing the Obama administration to decide if there are any limits to the outrages that the longtime U.S. "ally" may commit, as Trita Parsi explains. – Reuters

Dominant Social Theme: Saudi Arabia is out of control.

Free-Market Analysis: For several years now, we've suggested that those who steer the world's monetary system are gradually attempting to remove the dollar reserve.

The idea is to humble king dollar in order to create a basket of dominant currencies that can serve as the foundation for a bancor or some other global money.

The vision, as it is obviously being unveiled, is to have one worldwide central bank, one bourse, one regulator and … one money.

We've also suggested that economies around the world have gradually been leveled out. The BRICs have been raised while the West has been lowered.

To see this as a conscious terra-forming of the economic landscape is difficult. But the world's economic system did not emerge by accident. The BRICs' domestic economies are similar to those of the West, certainly from a financial standpoint.

Even competing global systems are based on similar patterns, as the BRICs are setting up their own version of the International Monetary Fund.

It has also occurred to us, and we have written about it, that the House of Saud is suffering from the intention of globalists to create an international money. As the Saudi kingdom provides the support for the petrodollar, the kingdom has become … possibly … expendable.

In fact, we have suggested that the relationship between Western financial elites and the kingdom is fraught at best.

This article, in fact, would seem to give further credence to our supposition. It shows clearly that the House of Saud – or those currently making decisions for it – are in a quasi-adversarial stance when it comes to the US in particular.

Here … more from the article:

There should be little doubt that Saudi Arabia wanted to escalate regional tensions into a crisis by executing Shi'ite cleric Nimr al-Nimr. On the same day, Riyadh also unilaterally withdrew from the ceasefire agreement in Yemen.

By allowing protesters to torch the Saudi embassy in Tehran in response, Iran seems to have walked right into the Saudi trap. If Saudi Arabia succeeds in forcing the United States into the conflict by siding with the kingdom, then its objectives will have been met.

This doesn't sound like a comfortable relationship does it? … One in which the Saudis do their best to ensnare the US in diplomatic and military conflicts.

There are other signs. Western media has been relentlessly negative when it comes to Saudi Arabia after years when the kingdom was rarely in the news. And the kingdom has responded, it seems, by going its own way more and more – judicially, politically and militarily.

…According to White House sources, President Barack Obama had to personally call King Salman bin Abdulaziz Al Saud to force the Saudis to take part in the Vienna talks on Syria this past fall. Now, by having cut its diplomatic relations with Iran, the Saudis have the perfect excuse to slow down, undermine and possibly completely scuttle these U.S.-led negotiations, if they should choose to do so.

One can make the case that such strategies are part of the dance of international relations. But until recently, Saudi interests and Western ones aligned fairly closely.

It is the Saudis that support the petrodollar and its reserve status by refusing to accept anything other than dollars for its oil. This basically places the world on a dollar standard when it comes to energy purchases. In turn, the US supports the fabulously wealthy House of Saud.

The best way for someone to destabilize the dollar would be to destabilize Saudi Arabia. If the House of Saud crumbles and no one else is available to support the petrodollar, the current global financial system would suffer convulsive shocks.

The House of Saud's control over oil supplies is less stable now. Fracking has weakened the grip of the Saudis over energy. The globe has gone from energy scarcity to energy plenty.

All these trends militate against the continued Saudi rule as now constituted. According to this article, it has forced the Saudi princes into a number of risky gambits.

Riyadh's calculation with the deliberate provocation of executing Nimr may have been to manufacture a crisis — perhaps even war — that it hopes can change the geopolitical trajectory of the region back to the Saudi's advantage.

This is surely a faint hope. When Western powers decide on a shift in policy, those who benefited from the previous policy often find themselves without recourse. This may be the fate of Saudi Arabia.

The fall of the House of Saud is being raised as a possibility these days. If it falls, there would certainly be a resounding crash and global economic realignment. The texture of monetary policy would be reconfigured worldwide.

After Thoughts

It may seem like a far-fetched possibility but international finance is a strange game. What seems unusual today may seem commonplace tomorrow. History is replete with the fall of great houses. The House of Saud may not prove an exception.

  • Bill O.

    The house of Saud is long due for an overhaul, to the point of complete dismantling, along with the other Arab royal houses, except possibly Jordan. Without oil, and the resulting petrodollars, they would be nothing but primitive desert tribes, but as it stands today they use their influence in unwise manners, to the point that it is time for them to go by the wayside of history, in my opinion. Without them the spread of jihadists would be negligible and the rapid decline of freedoms in the West would be slowed greatly. It is long past due for the House of Saud to fall and the sooner the west realizes this the better off we will all be.

  • dave jr

    My view of the economic condition of this world pretty much aligns with DBs’, except for a ‘one world currency’ being the goal of the international Technocratic monetary cartel. Rather, it seems a handful of regional currencies, weighting the basket, in order to control (manipulate) regional trade, gold prices, economies and world resources would fit the bill. The Technocrats hate a gold standard, which essentially would be a “global money”. Technocrats want an energy based accounting system and Kissinger / Nixon were useful minions in setting up the petro-dollar.
    Now, with some form of carbon credit quickly approaching from the horizon, the petro-dollar will have to yield to make room, or possibly collapse (reset), falling from the top world reserve status at the right moment to create a vacuum, to help usher it in. These energy ‘credits’ or debits, might then be used to further help evaluate the regional currency weight ratios in the God forsaken ‘basket’.

  • cronx

    Iran will nuke Saudi Arabia.

  • Danny B

    The energy landscape is in the process of change. Wind and solar are taking a huge bite out of the profitability of conventional energy production. There are a few non-conventional energy systems that are coming on line.

    Lest you turn up your nose at the idea of “free energy”, I would like to point out that none other than Judge Webster, former head of the CIA and FBI, is head of a free energy company called Terawatt. He has some high-powered engineers. No doubt he had the keys to the back door at the patent office. The company built a device that harnessed the Aspden Effect to create overunity. The website showed reports from the lead laboratories in America and Germany. They clearly reported that the device had an output torque much higher than the input torque.

    I started a thread and explained the secret of the device.
    A few weeks after that, Terawatt took down their website. All of these developments will change the energy picture.

    • no republicrat

      Another perpetual motion device?
      Buffet says wind is a black hole without subsidies, as is ethanol.
      solar takes far too much water to keep clean and operating.

      • Danny B

        Keep in mind that the electron goes on spinning forever.

        • alaska3636

          For all intents and purposes, so do planets.

  • Earn nest

    Oklahoma is a very business friendly, particularly oil interests. Really built on oil. But recently a considerable opposition has begun to voice a protest against fracking to a remarkable extent. The earthquakes and groundwater pollution are principle arguments. I can see where the lifting of the export ban may be mute if prices don’t edge higher soon as it would seem justice is on their side?

  • alohajim

    Re the Conclusion : The term ‘international finance’ lends far too much legitimacy to the money changers monumental worldwide crimes of legalized theft, tyranny, and mass killing. We already have a one central bank (BIS) and a one currency (credit created by bankers). Every so called sovereign nation within the Western central banking cartel neither owns their own currencies or their own central banks. The sovereign bit is a show, a con, a gigantic put on. Bankers own the world through their sole power to create ‘credit’ from nothing and charge the world ‘interest’ on it. Somehow they have re-written history, bought political control, and brainwashed humanity into accecpting this madness. Thanks DB for helping wake people up. Would humbly suggest that you refer to the money changers as something that more appropriately describes their true nature and their role within humanity.