The Secret Behind the Next Global Crash
By Pepe Escobar
January 22, 2016 "Information Clearing House" - "Sputnik" - The
World Economic Forum in Davos is submerged by a tsunami of denials, and
even non-denial denials, stating there won’t be a follow-up to the
Crash of 2008.Yet there will be. And the stage is already set for it.
The Crash of 2016?
So a case could be made of a panicked House of Saud being instrumentalized to crash a great deal of the global economy. Cui bono?
Selected Persian Gulf traders, and that includes Westerners working in the Gulf confirm that Saudi Arabia is
unloading at least $1 trillion in securities and crashing global
markets under orders from the Masters of the Universe – those above the
lame presidency of Barack Obama.
Those
were the days when the House of Saud would as much as flirt with such
an idea to have all their assets frozen. Yet now they are acting
under orders. And more is to come; according to crack Persian Gulf
traders Saudi Western security investments may amount to as much as $8
trillion, and Abu Dhabi’s as $4 trillion.
In
Abu Dhabi everything was broken into compartments, so no one could
figure it out, except brokers and traders who would know each supervisor
of a compartment of investments. And for the House of Saud,
predictably, denial is an iron rule.
This massive securities dump has been occasionally corporate media,
but the figures are grossly underestimated. The full information simply
won’t filter because the Masters of the Universe have vetoed it.
There
has been a huge increase in the Saudi and Abu Dhabi dump since the
start of 2016. A Persian Gulf source says the Saudi strategy “will
demolish the markets.” Another referred to a case of “maggots eating the
carcass in the dark”; one just had to look at the rout in Wall Street,
across Europe and in Hong Kong and Tokyo on Wednesday.
So it’s already happening. And a crucial subplot may be, in the short to medium term, no less than the collapse of the eurozone.The Crash of 2016?
So a case could be made of a panicked House of Saud being instrumentalized to crash a great deal of the global economy. Cui bono?
Moscow
and Tehran are very much on it. The logic behind crashing markets,
creating a recession and a depression – from the point of view of the
Masters of the Universe above the lame duck President of the United
States — is to engineer a major slow down, cripple buying patterns,
decrease oil and natural gas consumption, and point Russia on a road
to ruin. Besides, the ultra low
oil price
also translates into a sort of ersatz sanction on Iran.
Still,
Iranian oil about to reach the market will be around an extra 500,000
barrels a day by mid-year, plus a surplus stored in tankers in the
Persian Gulf. This oil can
and will be absorbed, as demand is rising (in the US, for instance,
by 1.9 million barrels a day in 2015) while supply is falling.
Surging demand and falling production will reverse the oil crash by July.
Moreover, China’s oil imports recently surged 9.3% at 7.85 million
barrels a day, discrediting the hegemonic narrative of a collapse
of China's economy – or of China being responsible for the current
market blues.
So, as I outlined here, oil should turn around soon. Goldman Sachs concurs.
That gives the Masters of the Universe a short window of opportunity
enabling the Saudis to dump massive amounts of securities in the
markets.
The
House of Saud may need the money badly, considering their budget on red
alert. But dumping their securities is also clearly self-destructive.
They simply cannot sell $8 trillion. The House of Saud is actually
destroying the balance of their wealth. As much as Western hagiography tries to paint Riyadh as a
responsible player, the fact is scores of Saudi princes are horrified
at the destruction of the wealth of the kingdom through this slow motion
harakiri.
Would
there be a Plan B? Yes. Warrior prince Mohammed bin Sultan – who’s
actually running the show in Riyadh – should be on the first flight
to Moscow to engineer a common strategy. Yet that won’t happen.
And
as far as China – Saudi Arabia’s top oil importer — is concerned, Xi
Jinping has just been to Riyadh; Aramco and Sinopec signed a strategic
partnership; but the strategic partnership that really matters,
considering the future of One Belt, One Road, is actually
Beijing-Tehran.
The
massive Saudi dumping of securities ties in with the Saudi oil price
war. In the current, extremely volatile situation oil is down, stocks
are down and oil stocks are down. Still the House of Saud has not
understood that the Masters of the Universe are getting them to destroy
themselves many times over, including flooding the oil market with their
shut-in capacity. And all that to fatally wound Russia, Iran and… Saudi Arabia itself.
Only a Pawn in Their Game
Meanwhile, Riyadh is rife with rumors there will be a coup against King Salman – virtually demented and confined to a room in his palace in Riyadh. There are two possible scenarios in play:
1)
King Salman, 80, abdicates in favor of his son, notorious
arrogant/ignorant troublemaker Warrior Prince Mohammed bin Salman, 30,
currently deputy crown prince and defense minister and the second in the
line of succession but de facto running the show in Riyadh. This could
happen anytime soon. As an extra bonus, current Oil Minister Ali
al-Naimi, not a royal, would be replaced by Abdulaziz bin Salman,
another son of the king.
2)
A palace coup. Salman – and his troublemaker son – are out of the
picture, replaced by Ahmed bin Abdulaziz (who was a previous Minister
of the Interior), or Prince Mohammed bin Nayef (the current Minister
of the Interior and Crown Prince.)
Whatever
scenario prevails, the British MI6 is intimately aware of the whole
pantomime. And the German BND might be. Everyone remembers the BND memo
at the end of 2015 that depicted Deputy Crown Prince Mohammed bin Salman
as a “political gambler” who is destabilizing the Arab world
through proxy wars in Yemen and Syria.
Saudi sources — for obvious reasons insisting on anonymity — stress that as much as 80% of the House of Saud favors a coup.
Yet
the question is whether a House reshuffle would change their slow
motion hara-kiri. The categorical imperative remains; the Masters of the
Universe are ready to bring the whole world down in a major recession
basically to strangle Russia. The House of Saud is just a pawn in this
vicious game.
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