Ahead of Chariman Xi’s visit to Washington DC for a state visit on September 24th and 25th, Reuters is reporting that China has asked Iran to halt all strikes on Saudi Arabia oil fields.

The request from China carries a self-interest as China’s oil dependencies have become problematic since the Strait of Hormuz became a point of economic friction between Iran and U.S. military forces. The Saudi East/West pipeline was also hit by Iranian backed Houthi rebels from Yemen, creating even more energy turmoil.

Additionally, Beijing is the most exposed to the recent congressional sanctions applied toward countries that retain trade relations with Russia.

Both President Trump and Chairman Xi have a vested interest in seeing an end to the conflict between Russia and Ukraine. However, with EU-NATO still provoking expanded conflict the dynamic has become one of middle-powers (Canada, U.K, EU) against significant energy powers China, USA and Saudi Arabia.

Another way to look at it is the coalition of Green Energy nations -vs- Low Cost energy nations.

The U.K, Canada and Europe have been supporting attacks against gasoline and diesel fuel refineries in Russia. This approach appears to contain a political motivation to drive up gas/diesel prices in the USA as part of an anti-Trump election strategy. The state visit by Chairman Xi comes at a critical time in the global energy dynamic.

HOUSTON, Sept 18 (Reuters) – Oil prices fell on Friday after China, acting on a request from Saudi Arabia, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure that have threatened a second oil export route in the Middle East.

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Readers here have significant knowledge of how the overall western intelligence apparatus works to control the activity of their respective governments. Factually, the intelligence apparatus never really changes with each election within each of the respective nations that makes up the “Five Eyes” assembly.

The U.K, Canada, New Zealand, Australia and the United States make up the intelligence control group.  Together with the U.K., four of the five eyes are British Commonwealth nations, so it doesn’t seem odd to see the intelligence assembly follow the geopolitical shift underway.

Great Britain has previously outlined how despite their Brexit the institutional intelligence remained connected to the European Union.  With Canada now taking on “Associate Member” status within the EU, Carney is just bringing them into alignment.  Now, reports are surfacing that Australia and New Zealand are also open to remaining attached to their British cousins.

(AUSTRALIA) – The Albanese government is open to considering associate member status with the European Union despite threats issued by US President Donald Trump.

EU Parliament President Roberta Metsola put the idea on the table following an address by Canadian Prime Minister Mark Carney where he welcomed the possibility of becoming an “associate member” of the Union.

Ms Metsola said Australia and New Zealand were among the countries “with which we want to deepen our relationship”. Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite told News24 the government would “consider” the proposal. (read more)

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Palantir CEO Alex Karp is a little quirky but, on this issue, I tend to agree with him.

According to Karp in the interview below the request by OpenAI and Anthropic AI labs for government regulation is related to a legal issue within their business model.  Right now, massive multinational corporations are working with AI groups under contract. As part of those contracts the leaders of the corporations are discovering their individual business plans, what they call their intellectual property (IP) has been uploaded into the dataset of the AI models themselves.

These corporations have spent billions of dollars on their detailed business plans, marketing plans, logistics and revenue systems that are now part of the AI dataset.  These CEOs are not happy and talking about lawsuits against the AI developers for stealing their corporate intellectual property.  However, at the same time the CEOs are furious at the loss of proprietary information, they are simultaneously bound to the AI developers for forward revenue.  This is creating a problem.

Example: By some analyst’s estimations, Amazon’s forward revenue projection is approximately 51% dependent on further technological capability through the use of AI.  However, Jeff Bezos likely does not appreciate his business model, which includes a massive dataset that he makes money from, being taken and uploaded to the AI database.  Bezos could sue Anthropic for ip theft.

All of the AI labs are exposed to this litigation if it was to unfold.  Additionally, all of the investors into the AI frontier labs would be at risk if the AI developer were sued by these corporations.  Both the AI developers and their investors would/are demanding protection from these lawsuits.

Here’s where it gets complicated.

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Speaking to the European Parliament earlier today, Canadian Prime Minister Mark Carney warmly accepted the Associate Member status in the European Union and pledged to align the governmental policies of Canada to streamline the assimilation.

Everyone understands the orchestrated publicity from EU Commissioner Ursula von der Leyen, absent from any information given to the EU member representatives, is carried out in full coordination with Mark Carney who has also not discussed the merge of institutional policy with Canadian citizens.   It is more than a little ironic for Ursula von der Leyen and Mark Carney both speak in grand prose about their democratic values, while entering agreements that have never been discussed with the people of their countries.

Perhaps that explains why half of the seats in the European Parliament were empty as the Prime Minister delivered his acceptance remarks with snarky pontification aimed at President Donald Trump.  WATCH:

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Pouring effusive and slobbering praise over the Canadian Prime Minister Mark Carney, the anointed “middle power” leader of a shrinking -and increasingly irrelevant- new world order, with grand pontifications EU Commissioner Ursula von der Leyen announced today that Canada is the first “Associate Member” of the European Union.

It’s a major award!  As noted by Reuters, “There is currently no such status as “associate member” set out in the European Union’s treaties — though various versions of an associate-type of membership have been floated in the bloc over the years. Germany suggested Ukraine be an associate member as an interim stage to full ​accession, though the proposal failed to gain traction as some EU capitals pushed back.”

von der Leyen gushed: “Dear Mark, I said we must urgently reimagine our partnerships. So, I would like to work with you on opening the door for Canada to be the first associate member of the EU. We share one ocean, one set of values, one way of seeing the world. And we will now build our shared future as well – thank you for being here.”  Mark Carney sat with a big smile, giddy with excitement and barely able to control his visible glee.  WATCH:

DAILY MAIL – […] But the attempt to flatter the former Governor of the Bank of England backfired, with diplomats saying they were never briefed about the proposal and that, in effect, ‘associate membership’ doesn’t even exist.

EU diplomats accused Brussels of ‘over-reach’, an accusation often levelled against Eurocrats by UK Brexiteers before Britain left the bloc. 

One EU diplomat told the Mail: ‘This bombastic announcement is just not right.

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The Iran-backed Houthi rebels in Yemen reportedly hit Saudi Arabia’s east/west pipeline with drones. President Trump did not strike the Houthi’s.  Despite knowing oil prices would jump, President Trump told Saudi Crown Prince Mohammed bin Salmon to approach the issue carefully.

Reuters, citing an Axios report based on two US officials, said Crown Prince Mohammed bin Salman called Trump twice on Thursday and pressed for military action. Trump rejected the request, according to the report.

Why would President Trump ‘not’ strike back against the Iran-backed Houthi rebels, knowing the drone attack on the Saudi pipeline would only worsen the oil issue?  Well, you won’t read this anywhere else…. However, if Saudi Arabia shut down the east/west pipeline for a while (they just did), then the oil flowing to the Red Sea that ends up in Europe would be halted (it just was).

Think about it.  All of a sudden Europe cannot get oil from Mohammed bin Salmon. So, how does that change the dynamic of President Trump’s desired leverage toward Europe in his approach to bringing Russian oil back into the market.

I hope everyone can see the dynamic.  All of a sudden that Russian oil Europe hates so much, turns into dependency leverage against EU antagonisms against solving the Ukraine-Russia conflict.   This is not happening accidentally.

Oil Price News – Saudi Aramco has canceled or delayed crude deliveries to European refiners after the shutdown of the kingdom’s East-West pipeline cut into one of its remaining routes around the Strait of Hormuz.

At least three European refiners have had late-September cargoes canceled or pushed as far out as November, according to market sources cited by Argus. Two more expect notices covering September supplies.

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You can’t make this stuff up folks.

Just days before making his next trip to lead the ‘middle-powers-summit’ in Europe where he will deliver his grandiose speech to announce ‘sovereign’ Canada is now a European subsidiary, the former central Banker turned appointed Prime Minister of Canada has announced he’s selling the Canadian airports.

Because in the banker’s world, sovereignty comes with a price, or something.

CANADA – Prime Minister Mark Carney says his government will open up Canada’s four largest airports to private investment, but that Ottawa will maintain ownership of airport land.

The prime minister said the private money will be sought through “long-term concessions” to operate these airports, which would include Toronto Pearson International Airport, Vancouver International Airport, Trudeau International Airport in Montreal and Calgary International Airport.

“The government of Canada will retain ownership of the underlying land and assets, but we will unlock their true value by bringing in new capital and expertise to their operations and growth,” Carney said during an address at the Canada Investment Summit in Toronto on Tuesday morning. (read more)

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Sometimes Russian Federation President Vladimir Putin just nails the issue in a way that is difficult for western voices to deconstruct. This is one of those examples.

Using the reference of the EU recently raising interest rates in an effort to lower energy costs, a seemingly disconnected approach that attaches energy policy to monetary policy, Vladimir Putin outlines exactly why the EU Central Bank approach is used.  This is a really important dynamic to understand.

For a long time, Russia battled with the EU over the pricing process for oil and gas.  Russia, specifically Putin, wanted to sell oil/gas to the EU based on production prices and fair profits.

Europe wanted to buy Russian oil/gas based on “market prices” which are manipulated by speculation and traders.

Putin doesn’t like this pricing approach because it artificially inflates the price based on speculation, trading and inorganic influences.

Instead, Putin always said the “market approach” makes your energy prices go up, even when production capacitary prices go down (productivity).

Producers can provide increases in energy volume at lower per unit levels just by turning a dial on gas volume.  Why would Europe want to pay more, when the cost to deliver a higher volume lowers the per unit price.  The EU never had a good answer, other than that’s just the way the ‘western market’ works.

Concluding the first day of his working visit to India for the BRICS meeting, Vladimir Putin answered a media question about the EU and used this reference to outline why the financial system of the EU is actually the underlying reason for their need to have conflict with Russia.  This is really interesting.

Question: You have spoken at length today about the BRICS countries. I would like to raise a question concerning a nation which, though geographically more distant from here, is perhaps closer to you personally – Germany. As is known, elections have recently taken place in Saxony, where the Alternative for Germany secured a decisive victory. It appears a similar trend is emerging in Mecklenburg-Western Pomerania as well. How do you view these developments?

President of Russia Vladimir Putin: I do not wish to, nor will I, comment on matters of the internal political developments currently unfolding in the Federal Republic.

However, there are points which merit attention in this context – and I will explain why. In my view, all that is now happening across Europe as a whole is the consequence of systemic errors committed by the so‑called West, or, to be more precise, by the globalist circles of the West, in the political, security and economic spheres.

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The missing aspect in all USMCA/CUSMA trade discussions is the simple fact that President Trump and U.S. Trade Ambassador Jamieson Greer would prefer bilateral trade agreements.  The reason is simple and is highlighted in all the problems with the three-party USMCA.

Two countries can negotiate based on their individual interests; multiple country assemblies get complicated.  Canadian Prime Minister Mark Carney and his “middle power” strategy of multiple interests assembling to create larger influence simply doesn’t work in trade discussion.  That’s the bottom line.

Reuters is reporting the obvious.  Mexico and the United States are racing to reach a bilateral trade deal before the U.S. midterm elections in less than eight weeks, according to six sources in both countries familiar with the talks, an effort made more urgent by the collapse of Canadian negotiations with Washington. Both USTR Jamieson Greer and President Trump have previously said the deal with Mexico would likely come first.

Mexico has played this very well.  Mexican President Claudia Sheinbaum has not participated in any antagonisms toward the U.S. position; they are simply negotiating for their best outcome.  The Mexican government officials don’t try to hide their U.S. dependency under the misguided premise of patriotism.  They understand the nature of the relationship.

If President Sheinbaum wants to keep a strong economy, she needs the USA.  Both leaders want a trade agreement; it’s business beyond politics.  Canada on the other hand is playing pure politics and trying to carve out a deal for themselves the rest of the world doesn’t have.  Canada wants to be excluded from the baseline tariffs applied to everyone, that’s not going to happen.

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The European Central Bank raised interest rates a quarter of a percent claiming the effort will reduce energy prices.  However, the primary cause of higher energy costs is energy policy not monetary policy.

As you can see, Europe is blaming the Iran conflict, and by extension blaming President Trump for inflicting higher oil and gas prices.  Yet in reality, it was the European decision to cut themselves off of Russian oil and gas that led to their massive price increases.

In essence, if you ask yourself how far the EU collective is willing to go in order to combat the fictitious threat represented by Russia’s conflict with non-EU state Ukraine, it appears there is no upper limit.  Rather than assist in a resolution of the Ukraine-Russia conflict, they are willing to keep fueling the war and diminishing their own economy in the process.

From the perspective of the welfare of the average European, none of this makes sense.  This is bureaucratic ideology running amok.

FRANKFURT, Germany (AP) — The European Central Bank raised interest rates Thursday to cool inflation that is being fed by high oil prices from the Iran war. The decision was supported by a stronger-than-expected economy that suggests businesses can weather the higher borrowing costs.

The central bank for the 21 EU member countries that use the euro currency raised its benchmark rate by a quarter percentage point to 2.50% at a meeting held in Berlin, away from the bank’s Frankfurt headquarters.

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