Again, The Arabs?
QuattroL: "Saudis need to spend megatons of cash to fund weapons and proxy armies,"
You forget the unwritten deal, the Saudi's denominate all oil sales in USD, they recirculate petrodollars into UST's, in exchange we provide them with protection. And since we occupy Iraq, we have a nice warm seat at OPEC meetings. If any conflicts breakout, we will be supplying the weapons, at a minimum.
The 18 month deep contango in oil futures is in compression. With the curve all under $50, and the value of the collateral (OIL) ever shrinking, those specs buying spot, short term futures, even producers, all who thought they would profit on the carry, are liquidating at whatever they can get on the surplus glut to roll, pay margin calls or get out while they still can.
Meanwhile, Russia, Venezuela and China are in the vice grip of KING DOLLARS pet python ED (eurodollar), with his son, CASH DOLLAR being hoarded globally, soon his wife CASH FLOW will go looking for her son and pull a disappearing act in these banana republics, petty dictatorships and overhyped outsourced sweat shops. Never forget, we are the Arabs.
You forget the unwritten deal, the Saudi's denominate all oil sales in USD, they recirculate petrodollars into UST's, in exchange we provide them with protection. And since we occupy Iraq, we have a nice warm seat at OPEC meetings. If any conflicts breakout, we will be supplying the weapons, at a minimum.
The 18 month deep contango in oil futures is in compression. With the curve all under $50, and the value of the collateral (OIL) ever shrinking, those specs buying spot, short term futures, even producers, all who thought they would profit on the carry, are liquidating at whatever they can get on the surplus glut to roll, pay margin calls or get out while they still can.
Meanwhile, Russia, Venezuela and China are in the vice grip of KING DOLLARS pet python ED (eurodollar), with his son, CASH DOLLAR being hoarded globally, soon his wife CASH FLOW will go looking for her son and pull a disappearing act in these banana republics, petty dictatorships and overhyped outsourced sweat shops. Never forget, we are the Arabs.
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