Please remember the global economics of the thing always aligns with the motives and outcomes of the thing.  Remember, Saudi Arabia just joined the BRICS coalition, BRICS+.

A new report shows China is moving six additional warships into the Middle East amid concerns the Israeli War could expand into a larger regional conflict.   China is aligned with multiple interests; and cunning Panda also supports the Biden administration end goal of a two-state solution in Israel.

(UK EXPRESS) – China has deployed six warships to the Middle East as the conflict between Israel and Hamas escalates, according to reports.

The 44th naval escort task force – from the People’s Liberation Army (PLA) Eastern Theatre – has been involved in routine operations in the region and spent several days in Oman last week.

The Chinese warships left Muscat for an unspecified location on Saturday after participating in an exercise with the Omani navy.

The task force includes the Zibo, a guided missile destroyer, the frigate Jingzhou, and the supply ship Qiandaohu – all of which will be stationed in the Middle East as Israel prepares for a ground invasion of Gaza.

During the visit to Oman, Chinese commanders met with Omani military officials and visited military institutions, while sailors from both countries toured shops and even organized a basketball game, according to a state news agency.

Since arriving in the Gulf of Aden north of Somalia six months ago, the PLA task force has been involved in escort missions for shipping.

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Against the backdrop of current events, it is worthwhile revisiting the speech President Donald Trump gave in 2017 from Riyad, Saudi Arabia. This speech led to the longest timeline of peace in the Arab world and was the foundation of the historic Abraham Accords.

Within the speech, President Trump provides a clarity that none in the audience had heard before. After this speech, all of the nations attending began a process to isolate the terrorists and confront the financiers (Qatar). WATCH (Transcript Below):

[TRANSCRIPT] I want to thank King Salman for his extraordinary words, and the magnificent Kingdom of Saudi Arabia for hosting today’s summit. I am honored to be received by such gracious hosts. I have always heard about the splendor of your country and the kindness of your citizens, but words do not do justice to the grandeur of this remarkable place and the incredible hospitality you have shown us from the moment we arrived.

You also hosted me in the treasured home of King Abdulaziz, the founder of the Kingdom who united your great people. Working alongside another beloved leader – American President Franklin Roosevelt – King Abdulaziz began the enduring partnership between our two countries. King Salman: your father would be so proud to see that you are continuing his legacy – and just as he opened the first chapter in our partnership, today we begin a new chapter that will bring lasting benefits to our citizens.

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Oil prices shot passed $90/bbl today after Saudi Arabia and then Russia announced a continuance of production cuts through the end of this year.

The BRICS alliance is going to deliver some pain to the Western alliance.  Those people living in the yellow zone, with leadership chasing climate change and Green New Deal policies, are going to see more durable inflation as the cost of oil is attached to just about every product and service.

Gasoline, energy products, petroleum products, home heating oil, groceries, everything will cost more as the geopolitical battle continues; but we are supposed to pretend we are unaware of the global political dynamic.

(Zero Hedge) – […] Just after 9am ET, Saudi Arabia said it would extend the voluntary cut of 1 million b/d of for another 3 months, from October until the end of December, well beyond the expectation of just 1 more month. Saudi press agency SPA notes that the voluntary cut decision will be reviewed monthly to consider deepening the cut or increasing production.

The extension of cuts is meant to reinforce the precautionary efforts made by OPEC countries with the aim of supporting the stability of the oil market. The Saudi announcement came a shock to market as 20 of 25 traders and analysts surveyed by Bloomberg last week had predicted the additional cutback would be continued for just one additional month.

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For his opening monologue and first interview tonight, Fox News host Tucker Carlson outlined the ramification of non-western nations now trading in alternative currencies to the U.S. dollar.   {Direct Rumble Link Here]  As the dollar diminishes in value, and as an outcome of Biden using U.S. treasury bonds as part of the sanction regime against Russia, various non-western nations now perceive holding dollars as exposing themselves to risk.

Carlson is joined by Luke Gromen who accurately notes the dollar as a global trade currency may continue, but foreign nations holding U.S. treasury bonds as an asset will likely start contracting.  The result of U.S. treasury bonds returning after maturity with no repurchase, would be an inability of the U.S. to borrow against their sale. This could, perhaps likely will, severely diminish the amount of money the U.S. congress can spend.  WATCH:

None of this should come as a surprise to those who have paid attention. Factually, in March of last year, one month after the Russian sanctions were announced, the International Monetary Fund’s (IMF) Deputy Managing Director said the sanctions against Russia are likely to undermine the US dollar’s global dominance as a trade currency.  Everyone could see this coming.

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According to inside media sources, Saudi Arabia was under the impression the Biden administration was going to begin refilling the U.S. Strategic Petroleum Reserve two months ago. However, the Biden administration made no efforts to do that.  As a consequence, Saudi Arabia and OPEC+ which includes Russia, decided to cut production in line with diminished global energy needs as a result of a slower global economy. {Background Here}

Tucker Carlson outlines the ramifications of increased oil costs on the American electorate {Direct Rumble Link} while his guest Brian Brenberg from Fox Business News, accurately points out that Joe Biden wants to keep energy prices high to support his climate change policy initiatives. WATCH:

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Despite the fact the Western Alliance have created the policy that will deliver pain to their citizens, not a single government leader will look at this move as a bad thing.

The pain will not be felt by the elites, it will only hit the citizenry.  Lowered oil production outputs that drive up gasoline prices and fuel inflationary drivers, expedite the Build Back Better narrative and objective.

However, that said, in context to this announcement, a pain that will hit the Western economies of the alliance represented in yellow, the last 18 months of moves by Mexico makes President Andres Manuel Lopez-Obrador look remarkably prescient.  The new strategic relationships and trade partnerships between China, Russia, Iran, Saudi Arabia, India and beyond, take on an added geopolitical dimension.

DUBAI, April 2 (Reuters) – Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day, in a surprise move that analysts said would cause an immediate rise in prices and the United States called inadvisable.

The pledges bring the total volume of cuts by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.

Sunday’s development comes a day before a virtual meeting of an OPEC+ ministerial panel, which includes Saudi Arabia and Russia, and which had been expected to stick to 2 million bpd of cuts already in place until the end of 2023.

The latest reductions could lift oil prices by $10 per barrel, the head of investment firm Pickering Energy Partners said on Sunday, while oil broker PVM said it expected an immediate jump once trading starts after the weekend.

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Two major energy trade developments today highlight how the Western Alliance is quickly losing a grip on the world energy market, as an alliance between China, Russia, Iran and the Middle East Gulf Cooperation Council starts to take shape with actual trade exchanges that are not in dollars.

Last year, in response to big panda’s own interest and seeking to exploit two western alliance self-created weaknesses; (1) sanctions against Russia and (2) weakened investment in LNG production; China spearheaded the Shanghai Petroleum and Natural Gas Exchange.

The exchange was aimed at group purchasing services for liquefied natural gas (LNG) though the use of the yuan to replace the dollar.  Essentially, team Gray operating without the global trading system of team Yellow (map).  The Shanghai exchange allows purchases of LNG portions by small and medium-sized buyers in yuan.

Today, CHINESE national oil company CNOOC and France’s TotalEnergies have completed China’s first yuan-settled liquefied natural gas (LNG) trade through the Shanghai Petroleum and Natural Gas Exchange, the exchange said on Tuesday (Mar 28).

Approximately 65,000 tonnes of LNG imported from the UAE changed hands in the trade, it said in a statement. TotalEnergies confirmed to Reuters that the transaction involved LNG imported from the UAE but did not comment further. (read more)

This exchange between the UAE and France is taking place without dollars. If the process continues the dollar weakens.  In the geopolitical world of currency valuations and trade, this might be considered the Archduke Ferdinand moment for the end of the petrodollar.  The question will become, can they grow this process with OPEC+ support and begin eventually trading oil in yuan?

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Before getting to the details of the Credit Suisse issue, it is worth taking a bigger geopolitical context to the dynamic.  The initial backstop sought by Credit Suisse was from the Saudi National Bank; however, SNB Chairman Ammar Abdul Wahed Al Khudairy refused more lending {LINK}.

This is where we need to keep the BRICS -vs- WEF dynamic in mind and consider that ideologically there is a conflict between the current agenda of the ‘western financial system’ (climate change) and the traditional energy developers.  This conflict has been playing out not only in the energy sector, but also the dynamic of support for Russia (an OPEC+ member) against the western sanction regime.  Ultimately, supporting Russia’s battle against NATO encroachments.

Russia, Saudi Arabia and China are geopolitically aligned in interest against the western financial system.  As a consequence, when western banks find themselves in need of capital and cash, there is a layered geopolitical dynamic in the background to Saudi refusal that must be considered.

With multiple western banks now in trouble, Credit Suisse is also exposed, and, like U.S. Treasury/Fed intervention in America, the Swiss central bank has stepped in to backstop the looming collapse.

In the big picture, we are seeing the ramifications of the ‘Build Back Better‘ agenda impacting the banking and finance sector which spearheaded it.  I am not seeing this discussed anywhere, as the western governments of the collapsing banks are being forced to intervene.

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Brittany Griner (32) was held in Russian prison after a conviction for drug possession.  Viktor Bout (55) was held in American prison after a conviction for illegal arms sales, supporting terrorists and money laundering.  In a prisoner exchange that took place in the United Arab Emirates (UAE) at Abu Dhabi airport, WNBA player Brittany Griner and Russian dealer Viktor Bout walked past each other on the tarmac.

NOTE: Saudi Arabia Crown Prince Mohammed bin Salman (MbS) negotiated the deal.  Yesterday, in federal court the U.S. dropped a lawsuit against MbS for the Khoshoggi killing.  The case was dismissed.  The timing is transparent.

The Biden administration gets a popular transvestite hero of the LGBTQ+ community, while Vladimir Putin gets a Russian born global arms dealer nicknamed “the merchant of death.”  All things considered, the exchange priorities sound about right.

(Joe Biden) – “Moments ago, standing together with her wife, Cherelle, in the Oval Office, I spoke with Brittney Griner.  She’s safe.  She’s on a plane.  She’s on her way home.

After months of being unjustly detained in Russia, held under intolerable circumstances, Brittney will soon be back in the arms of her loved ones, and she should have been there all along.  This is a day we’ve worked toward for a long time.  We never stopped pushing for her release.

It took painstaking and intense negotiations, and I want to thank all the hardworking public servants across my administration who worked tirelessly to secure her release.” (read more)

Video Below.

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The extreme vitriol against the recent OPEC+ decision to cut oil output, specifically the extreme Biden anger toward Saudi Arabia, now takes on additional context as the New York Times writes about a secretly negotiated deal between the Kingdom and White House officials that was never executed.

As the Times reveals, over the summer the White House thought their team had negotiated a deal with Saudi Arabia for increased oil production that would have lowered oil and gasoline costs in the U.S, strategically timed before the midterm election.

With that agreement in mind, Joe Biden went to Saudi Arabia a few months ago. However, as the western alliance began putting more pressure on Russia and increased the activity within Ukraine, the Saudi’s aligned with OPEC+ to support Russia via lowered oil outputs.  The White House felt double-crossed, hence the fury.

(New York Times) –  WASHINGTON — As President Biden was planning a politically risky trip to Saudi Arabia this summer, his top aides thought they had struck a secret deal to boost oil production through the end of the year — an arrangement that could have helped justify breaking a campaign pledge to shun the kingdom and its crown prince.  It didn’t work out that way.

Mr. Biden went through with the trip. But earlier this month, Saudi Arabia and Russia steered a group of oil-producing countries in voting to slash oil production by two million barrels per day, the opposite of the outcome the administration thought it had secured as the Democratic Party struggles to deal with inflation and high gas prices heading into the November elections.

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