Here is a very profitable game that Saudi Arabia also can play.

There's one other element people don't seem to be getting. True, if the Saudis cut back too far they would eventually hurt themselves, but I believe it is a good premise that they could cut back quite a bit and still be better off. There are two reasons they don't cut back in my opinion:
1. If you think the US is corrupt, it is nothing compared to SA. The people in power there are raping the country's oil resources and banking that $ as fast as they can while they are still in power. Sure, the Saudi people would be better off if production were cut back 50% and lasted twice as long, but the Royal Family there could give a rat's ass what is good for the Saudi people.
2. It's not entirely up to the Saudi Royal Family to cut back drastically. The US has a lot of influence there and can certainly play various members of the Family against one another. They all know that if anyone goes too crazy with cutbacks, the US will not be pleased. Just look at middle eastern history (or African or Latin American for that matter) since the 1950s and see what the US does to any leader who steps too far out of line.

 

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Lorax2013: They all know that if anyone goes too crazy with cutbacks, the US will not be pleased. Just look at middle eastern history (or African or Latin American for that matter) since the 1950s and see what the US does to any leader who steps too far out of line.


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March 12, 2008

SouthAmerica: I also wrote on this thread the following in May 2007:

It is a basic rule of finance and capitalism - the Saudis have to test how much money they can get for their resources - how much is too high a price for a barrel of oil?

Why not push it to US$ 100 per barrel to test that price level - and the Saudis have another incentive to do that since the value of the US dollar has been declining for a long time.

Just keep in mind it is just a game and they have to test what kind price they can get away with.

It is pure capitalism.

The Saudis have time on their side since it takes a lot of time and money to develop all these new sources of energy including nuclear power.

Remember the value of the US dollar will continue to decline in world markets in the coming months and years – it is just a matter of time for the adjusted price of a barrel of oil to reach the US$ 100 value.

It is not the actual value of a barrel of oil that is going up – it is the value of oil priced in a declining currency that is going up to make up for the declining value of the US dollar.

The days of pricing oil in international markets based on US dollars are probably at the end of its useful life and the oil producing countries will find a better way to price oil in the international markets other than price it in US dollars.

… It is worth the risk for various reasons:

1) First, that would translate into a major transfer of wealth from countries such as the United States and China into the oil producing countries including the oil producing countries of the Middle East. We are talking about a very large amount of money here.

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March 12, 2008

SouthAmerica: Here I am just putting some thoughts on paper.

Here is another game that Saudi Arabia and the other major oil producing countries of the Middle East can play right now:

The US economy is at the edge of the abyss right now, and continues to stay afloat only because of massive US government intervention in the financial markets.

Saudi Arabia and some of the other countries in the Middle East such as the UAE these countries already have at least US$ 2 trillion on hand and available for investments.

These countries can coordinate the same type of strategy used by American oil companies to keep the price of gasoline artificially high in the United States during the summer months. The Saudi’s and other major oil producing countries can coordinate the closure of many refineries – shut them down for maintenance or invent some type of bogus reason to shut them down for repairs, or even create small accidents to shut them down – then they should test the oil price per barrel up to the US$ 150 to $ 170 level.

That would generate even more incoming cashflow for these countries that can very quickly reach the US$ 3 trillion dollars level of available cash for investments.

They should keep pushing the price of oil up until the US economy goes into a deep recession, creating even a deeper financial crisis in the US economy than we have today – eventually even the US stock market will be affected and the price of stocks would go down here in the US.

The US economy starts becoming a complete basket case, and as foreigners start taking their money from the US economy - the US dollar continues it’s decline and reaches the trading range of US$ 1.80 to US 2.00 versus the euro.

At this point we are probably reaching to the point of an US dollar meltdown and the biggest international monetary crisis the world has ever seen – then here comes the countries of the Middle East with their US$ 3 trillion dollars of money available to bailout the US banking system and pick up the pieces of best companies that they can buy for a bargain.

In a nutshell: If we have a very deep recession bordering a great depression Americans will be happy that someone is willing to take over their country – With US$ 3 trillion dollars on hand these Middle East countries can buy a massive number of American companies, banks, insurance companies, you name it at bargain prices, many businesses they can pick up the pieces in bankruptcy court.

At that point Americans have the choice of letting these foreign companies bail them out or they can let the US economy spiral completely out of control and implode into a black hole.

That is the capitalist way of doing things.

But after the Middle East companies take control of the banking, insurance, and the mainstream media systems, and some other strategic pieces as well, basically you control the entire system, and they bought themselves a nice country for a bargain.

The one advantage the Middle East countries have in implementing such a strategy is that Americans take a long time to figure things out, and usually by the time they are able to figure out - it is too late.

These are just few thoughts that crossed my mind.


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May 18, 2008

SouthAmerica: When I posted this info on this forum in August 22, 2006 the barrel of oil was trading at US$ 62 per barrel. The US dollar was trading at US$ 1.28 = Euro 1.00

On May 16, 2008 oil reached US$ 128 per barrel and the US dollar was trading at US$ 1.55 = Euro 1.00

Let’s review it once more.


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Here is what I posted on this forum two years ago on May 22, 2006.


August 22, 2006

SouthAmerica: Over the weekend Hugo Chavez was in Iran visiting the leaders of that country.

The president of Iran and Hugo Chavez can teach a lesson regarding capitalism to the United States.

The United States deserve to be taken to a ride, since the US government did almost nothing regarding its energy policies after the global oil shock of the 1970’s – today the United States is more dependent than ever on oil imports from the most dangerous places around the world.

A simple strategy coordinated between the president of Iran and Hugo Chavez – both of them can use rhetoric to talk the price of oil to the $ 100 a barrel in the near future. Today Americans are a nation of very frightened people – most Americans are afraid of even of their shadow. Won’t be hard to scare them to death about anything.

The first step on this process is for both countries Iran and Venezuela to unsign their countries from the nuclear non-proliferation treaty. There is a very simple procedure to follow with the United Nations to unsign a country from any international treaty.

If in doubt, just check what North Korea did to unsign North Korea from the nuclear non-proliferation treaty or check what the Bush administration did to unsign the United States from the Kyoto international treaty – a treaty that President Clinton had signed during his administration.

If I remember correctly the United States also unsigned the US from the treaty related to the International court in The Hague.

The president of Iran and Hugo Chavez – if they play their cards right they can laugh all the way to the bank to the tune of a few extra billion dollars in extra oil revenue that will end up on their coffers.

And all that it will take is some tough rhetoric and nothing else.

Americans deserve to be taken to the cleaners because they did nothing to correct its dependence of foreign oil since the 1970’s. And “Fools” should be taken for a ride – that’s the way the capitalist world works.

Source: http://www.elitetrader.com/vb/showt...59&highlight=take+them+for+a+ride#post1174459



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Here is what I posted on this forum one year ago on May 22, 2007.


May 22, 2007

SouthAmerica: Here is an economic game Saudi Arabia can play that can be very profitable to them.

It was obvious to me that the major petroleum companies have been playing games with the price of gas for a long time – and I know that the American Petroleum companies are going to play the same old game once again similar to the game they did play last year when gas prices reached $ 3.25 per gallon for the cheapest gas during the summer of 2006, then the prices declined to the lowest point of $ 2.00 per gallon in November 2006 on election day - and the following day after the election the petroleum companies restarted their game on the way up and once again they are taking the American people for a ride and gas prices have reached new high all over the United States.

Today the barrel of petroleum is trading at around US$ 65 per barrel. In my opinion it would be very easy for the Saudi Arabian government to make the price of a barrel of oil to go over US$ 100 per barrel and they can accomplish that overnight.

I have observed over time some US government strategy at work and just keep in mind that the United States government has brainwashed the American people into fear terrorist attacks, and basically today Americans would buy anything in that regard that is why every time something is going wrong with some kind of investigation regarding the current administration or a major problem is going on in the Middle East – they use the terrorism card and a new terrorist plot is brought forward to take attention of the other problem.

Today I don’t believe on anything the US government say about terrorist plots – and I assume only gullible Americans still believe on those fairy tales.

But for good or worse the American people is ripe to be taken for a ride because of their mindset regarding terrorism.

Why Saudi Arabia is not learning from the major American oil companies how to take the American public for a ride since it would be a piece of cake for Saudi Arabia to play the same game that the major American oil companies have been playing and Saudi Arabia can make the price of oil to go overnight to over US$ 100 per barrel on the international market.

When the price of oil reaches over US$ 100 per barrel that can translate in billions and billions of extra dollars going to the coffers of the petroleum producing countries in the Middle East.

How they can do that overnight?

It is very simple – remember the mindset of the American people regarding terrorism – all the Saudis have to do is stage a terrorist attack on one of their major oil production facilities – they can hire a movie making crew to make the attack to seem real – like in the movie “Wag the Dog” – but in this case they have to stage in such a way that has to look real even to the satellites from out of space that would be taking pictures to access the damage.

The illusion that a good filmmaker can create today in making such a war scenes can make it look as if it was the real thing.

Voila, no actual damage to the Saudi Arabian production capacity, but instead the illusion that the production capacity would be disabled for months until they can be repaired and returned once again to production.

In the meantime they can pocket billions and billions of extra dollar and they can laugh all the way to the bank.

Basically that staged terrorist attack by the Saudi government would not be any different than what the major oil companies are doing today to the American people – they would just be taking the American people to the cleaners.

The major oil companies are allowed to that the American people to the cleaners all the time then we can assume that the oil producing countries also should be able to get away with that kind of market manipulation.

If other oil producing countries try to use that strategy that would not have the same impact as if the Saudis did that themselves – only the Saudis have the power to push the price of oil to over US $ 100 per barrel.

The price of oil on world markets would react to the way up based on the illusion that has been created instead of the actual reality. The oil traders would react to the perception of what they think that has happened – to the staged illusion created for them.

If Saudi Arabia decides to play such an economic game I wonder how many extra billion dollars that game can provide to their coffers when the price of oil jumps from the current US$ 65 per barrel to over US$ 100 per barrel overnight.


Source: http://www.elitetrader.com/vb/showt...92&highlight=take+them+for+a+ride#post1475992


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May 18, 2008

SouthAmerica: The Saudis did not need to play any games after all, but Chavez and the president of Iran did help a little to push the price of oil to the current levels.

This is what I posted 2 years ago on this forum: “The president of Iran and Hugo Chavez – if they play their cards right they can laugh all the way to the bank to the tune of a few extra billion dollars in extra oil revenue that will end up on their coffers.

And all that it will take is some tough rhetoric and nothing else.

Americans deserve to be taken to the cleaners because they did nothing to correct its dependence of foreign oil since the 1970’s. And “Fools” should be taken for a ride – that’s the way the capitalist world works.”


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Now these guys can coordinate their strategy and take Americans for a further ride to the US$ 200 dollar per barrel level.

The oil producing countries can laugh all the way to the bank with 100’s of billions of extra US dollars that they have the choice to use it as wallpaper or as confetti.

I am not sure if we are watching a major transfer of wealth from the United States to the oil producing countries or if we are watching just the meltdown of the value of the US currency.

It is like take candy from a baby, considering that Americans never learn their lessons, and they are always ready for more.

“Fools” who never learn their lessons should be taken for a ride over and over again.

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An apt description for "SouthAmerica" one of the finest idiots from his continent. Continuously demonstrating that anyone with a keyboard and a mouse can talk without saying much...

 

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May 18, 2008

SouthAmerica: Reply to Trader Zones

Here is my answer to you – just a reminder.

By the way, the Saudi government had some pity on George W. Bush when he stopped in Saudi Arabia this week to beg for more oil. Anyway, the Saudi government did throw a bone to a Pathetic George W. Bush and the United States.


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December 6, 2007

SouthAmerica: As I mentioned before on this thread “every time you stop on a gas station to fill the tank of your car with gas – when the attendant comes to get your credit card or your cash you will remember that at that exact moment you are paying HOMAGE to Iran and to Venezuela – and to the incompetence and stupidity of George W. Bush”

And now according to the latest information from the US intelligence agencies - Iranian President Mahmoud Ahmadinejad's rhetoric about the status of Iran’s nuclear program plus his tough rhetoric about Israel it has turned out to be the biggest con-job of the new millennium.

I knew if Mahmoud Ahmadinejad and Hugo Chavez played their cards right they could talk the price of oil up and the experts say that there is at least US$ 30 Mahmoud Ahmadinejad rhetoric premium included on the price of a barrel of oil.

Talking about taking the United States for a ride to the tune of a few hundred billion US dollars – The Arab oil producing countries of the Middle East should send a commission to Mahmoud Ahmadinejad for a job well done since he helped these gulf state countries make a ton of money in extra oil revenues.

President Bush's credibility has reached a new low for warning as recently as October that Iran's nuclear prowess could ignite World War III.

And George W. Bush looks as foolish as ever to the rest of the world as Iran, Venezuela and many other oil producing countries are laughing all the way to the bank to the tune of hundreds of billions of US dollars – what a transfer of wealth from the United States and other countries to the oil producing countries around the world – with the compliments of Iran and Mahmoud Ahmadinejad and his rhetoric; no wonder Mahmoud Ahmadinejad always had a smile on his face – he knew he was taking the United States to the cleaners and all he had to do was push the right bottoms of that Pathetic man in Washington DC - The Decider.

I wonder if in future years they are going to use this special case study on the US graduate business schools to bring to the attention of students the transfer of hundreds of billions of US dollars to the oil producing countries caused by the Bush administration - and how easy it was to pull a major con-job in the most incompetent US government administration the United States ever had since 1776.

Source: http://www.elitetrader.com/vb/showt...704289&highlight=fill+up+with+gas#post1704289

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Bush could be laughing all the way, inside.

 

all southamerica posts r really good. all those who were posting agnst southamerica went into hibernation and wont reply here...

nice work south america keep it up..

 

Fascinating analysis SouthAmerica. I've always wondered why Mahmoud has that smurk on his face whenever he's shown on TV and asked about the "tension" between his country and USA. He did help the mideast become flush with petro money that they will have to invest it back here when stagflation is deeply entrenched in America and people are getting financially hurt. Quite a sad situation that didn't have to be this way. Does he play poker on the side?? 'cause he's a damn good bluffer