Oil at $200 plus a barrel will be the least of America’s problems when the Saudi Monarchy falls.
"If something happens in Saudi Arabia it (oil) will go to $200 to $300 (a barrel). I don't expect this for the time being, but who would have expected Tunisia?" ~ Former Saudi oil minister Sheikh Zaki Yamani 4/5/11
The most important question facing the United States today is whether the freedom revolutions sweeping the Middle East will impact the authoritarian regime of Saudi Arabia and the major oil producers surrounding this nation of major oil reserves? The second question is if the government is overthrown, will the new government continue the practice of pricing oil in depreciating dollars rather than consider new options?
The future value of the dollar and the dollar status as the world’s reserve currency depend heavily on the outcome of these two questions. This is why the price of gold could soar and the dollar move dramatically lower when the Saudi Monarchy is overthrown. I fear, the probable American military reaction to this scenario threatens what remains of our republic and may be compared by future historians as comparable in scope to Caesar's march across the Rubicon in Roman history.
"I don't think that what the King is doing now is sufficient to prevent an uprising. Saudi Arabia is a time bomb, but one that is constantly being reset," ~ Jaafar Al Taie, managing director of Manaar Energy Consulting
Today, I’m warning about the risk of a dollar and Treasury bond threat which could make the real estate collapse or 2008 market meltdown mere footnotes in comparison. Today in the Middle East, either by stupidity or design, the Federal Reserve’s perpetuation of the dollar and treasury debt Ponzi schemes is now dependent on the survival of a few dictatorial regimes staying in power in the Persian Gulf while surrounded by spreading freedom revolutions.
This is the most dangerous region in the world and the focal point for conflict between Iran and America, the freedom revolution and authoritarian regimes, Sunni and Shiite, Israel and the Arab world, vast oil resources and the oil needs of the West and China, and where the decision will be made to price oil in depreciating dollars or in other currency alternatives. Of all the conflicts and threats in the region, I believe the question as to whether oil continues to be priced in dollars and the dollar remains the world’s reserve currency for now and the risk of a US dollar and debt collapse are the greatest threats facing America and the West.
The real estate bubble and financial meltdown as well as the new stock market bubble are misdemeanors in criminality compared to the Federal Reserve mistake of allowing our currency and debt to be dependent and held hostage based on the survival of a few corrupt authoritarian leaders in fake nations created by London politicians many years ago.
The Saudi Monarchy Will Fall Sooner Rather Than Later