The most significant oil and gas discovery this past decade was in the Mediteranean Sea somewhere between Israel, Cyprus, Greece and Lebanon is what is termed more oil and gas than Russia has in Siberia. The Greek oil and gas discoveries alone are said to be larger than oil and gas discoveries in Alaska. And the Israeli finds start in the mediteranean near Haifa and go all the way beyond the border with Lebanon. One field, the Leviathan Field (on the border of Israel and Lebanon) – has over 600 million barrels of oil, and 16 Trillion (with a T) cubic feet of Gas. We’re talking about “Persian Gulf” type status for the eastern mediteranean.
Is this oil and gas worth a war? Don’t ask me – ask the oil men!! They seem to think so!! They’re not just talking about physical guns and bombs; but currency wars, cold wars …you name it…against their NATO allies …their friends no less!! (Who can you trust?)
Since the second world war, the U.S. dollar has become the world’s reserve currench basically. The US. post war prosperity has been largely on the back of ‘cheap’ money deposited into its banking system by foreign governments. And even today, just about all international transactions in the world are done in U.S. dollars.
Actually, that’s a partial truth. Since 2000 to 2007 the U.S. dollar’s share of the world’s transactions actually plumetted to below 70% and the Euro steadily grew to 30% of all transactions. The Chinese and many others in the world, started recently spreading their sovereign deposits in other currencies and other banks outside the U.S. and the U.S. began to find itself “pressed” to blindly print new money or issue T-Bills – like it used to. Some folks (including Saddam Hussein, and the IRI) were only taking Euros for payment of their oil. Oil is by the largest internationally traded commodity, and what happens with oil payments basically dictates the status of the Dollar as a reserve currency. The U.S. suddenly found itself under siege – and the Europeans were basking new found money flooded into their banking systems. Greeks were borrowing money at much lower interest rates then ever before and driving Mercedes Benz cars! Life was good.
The economic debacle in the U.S. suddenly led to the need for major government led stimuli – and a sharp increase in federal debt. In order to manage the recovery and keep interest rates under control (i.e. low) , the U.S. had to attract major foreign buyers for its government bonds. This pitted the U.S. dollar directly against the Euro.
And looking beyond the immediate needs of the federal government, if major new oil discoveries in the mediteranean came ashore and were sold in Euro’s there would be even greater pressure on the dollar in the near future.
Somehow, (and don’t ask me how), U.S. based hedge funds (with dubious names and history) in 2009 and 2010 suddenly started dumping Greek government bonds …and this started the crisis in Greece and in turn Europe. The Euro was undermined, the dollar was strengthed!! Today, 3 years after a near doubling of the U.S. federal debt, (i.e. over 6 trillion dollars of new debt under Obama and almost 1.5 trillion under Bush in his last year) – with over 15 trillion dollars in debt; the U.S. federal government pays less in interest (i.e. $262 Billion) a year than Bush’s government paid in 2007 ($350 billion). Voila!! The dollar won the battle – it reigns supreme. And the Euro has retrenched from nearly 30% of the world’s transactions closer to 20%. Boom!! Obama’s men did the job.
The Euro will be further undermined, when in January, the Greeks pull out all together and re-establish their own currency. In the mean time, the Germans and the French will hemorrage…bleed good money out of their banks to support failing greek banks. Europe and the dream of the Euro will be completely undermined, and even more money will have to be spent trying to get Portugal, Spain, Italy and Ireland off life support next year. It will be a mess. A huge mess.
And then if, especially if, Greece abandons the Euro – the net result of all this will be that Greek Oil will come ashore and be sold like any other oil is sold in U.S. dollar denomination – not in Euros. The Drakma, my friends, will surely be a currency like the British Pound Sterling – free, independent …and strong with a load of oil and gas revenue behind it. The Greeks will go from today’s Famine to a Feast.
Its a brilliant plan, isn’t it? The french and germans will be all pissed off at the Greeks, and the greeks will be angry at the french and germans for not bailing them out. And then in come American and British oil companies, like heros to salvage the Greek economy with their investments. In case you did not know, the fields in Libya under Ghaddafi were french, german and italian oil company owned – guess who is walking into Libya these days to prospect for more oil and gas? Oh and the french lost their fields in Iraq (under saddam hussein) to no lesser than BP, Shell, Exxon after the war.
Why post this on Iranian.com? Well there are consequences to all this for Iranians.
1) Israel is dying to pick a fight with Iran (not because it is scared of Iran’s nuclear future) but because it really wants an excuse to attack Iranian allies: Hezbollah and Lebanon …and actually occupy an area at least 50 miles into Lebanon (create a buffer zone) and in the process claim similar title to adjacent area in the Mediteranean Sea! Israel will end up owning these precious oil and gas fields completely on its own (with no money or ‘sharing’ with Lebanon). So be on notice for a future fight with Iran – for their (truly) Lebanese agenda.
2) In a stagnant oil and gas global market (with US. importing almost 2 million barrels a day less than it did two year ago) … and with all this new oil and gas coming into the market, oil and gas somewhere else in the world will have to be shut down. Yep. You guessed it, after a “battle” with Iran; Iran’s oil and gas exports will be hit for many years to come. Iranian production will be dead or near dead in a few years! By the way, they did this to Iran in the ’80’s. Just when North Sea oil started to peak, Iran got mired into an 8 year war with Iraq. Iranian (and Iraqi) oil exports plunged for 10 years – but the oil market was stabilized (at a cost of over 1 million Iranian and Iraqi casualties).
3) Iran as we know it, may not even exist after the battle. There will a huge temptation to carve the country up, and share some of Azerbaijan’s oil and gas revenue with the Southern Azeris (in Iran) …and create a buffer zone to the South of Azerbaijan (becaue today Iran’s northern borders are only 100 Km from Baku the nerve center of Azerbaijan’s Oil industry). Remember BP owns the pipelines to the Mediteranean from Baku; and BP is the a major player in extracting oil and gas from Azerbaijan (in what was only 20 years ago, Iran’s part of the Caspian Sea). Splintering Southern Azerbaijan from Iran will further undermine Iranian claims on the Caspian and only expand BP’s operating areas for even further oil and gas exploitation in the Caspian Sea.
4) Notice that with sanctions in place now with Iran, the Chinese are buying oil from Saudi Arabia (in U.S. dollars). Notice also, that BP’s joint venture in Iraq is with the Chinese National Oil company (in Iraq’s largest ‘Ramallah’ oil fields) and all transactions there are being done in U.S. dollars. The Chinese have been pulled fully and squarely back into the U.S. camp – in every practical way. China’s economic growth, if it results in transactions remain in U.S. dollars, will in real terms be an extension of America’s economy. Its as if China was another state of the United States. Iran’s nuclear ambitions are being used to undermine Iran, and draw China further into the U.S. sphere. The nuclear negotiations are all a scam. A joke.
There is real misery in Greece today. There are tales of famine on some of the islands and an economic depression not seen since before the second world war. These ruthless planners and greedy bastards with their schemes could not care less for the people of Greece, Iran, Lebanon, Syria ….we are all expendable pawns in their hunt for oil and gas and global domination. Along the way: bombs will fall, innocent civilians will die, people will starve!
Why do the Brits and Americans hate Iranians so much? What have we done to them? Surely, there has to be a better way! No?