Quote:
Originally Posted by bubba
Yes, sort of. Look at the silver market right now. China just made exporting physical silver tightly (if not impossible) controlled. The Chinese were lined up to process Venezuelan silver ore in exchange for Yuan (not dollars).
China also is / was the primary recipient of Venezuelan oil, and since they import over 70% of their energy, it is bad news for them as well. China also wanted to pay for this oil in Yuan.
The Venezuelan drug empire consisting of large sums of cash and insurgent forces inside of CONUS were seen as a “5th column”. Not to mention having staging bases for potential future naval operations in the Western Hemisphere also greatly supported China’s interests (as well as others like Iran and Russia).
(Conspiracy hat time.). When you add the dots up, and I know it sounds kinda crazy, all of the above supported “the city of London”. The British are still butt-hurt over our little tea-party back in the 1770’s and want to see us burn. The Trump Admin has emptied the physical silver vaults at the LBMA in London. The paper contracts are getting ready to implode in violent fashion. By cutting the Venezuelan silver we further lock down the “Hard Currency” that has historically been associated with “Real Money”.
There is more to what is happening than just “CAG snatched some asshole”……..
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Been watching that silver squeeze.
Opaque trading practices become not so opaque when physical demand outstrips supply.
Much of the refining capacity in the US is designed to process heavy sour crude of the type Venezuela produces.
The US produces an excess of light sweet.
Keeping export partners hooked on light sweet and refined products, as well as creating an abundance of heavy sour gives the US economic power in two directions.
Also keeps oil priced in dollars, protecting the ol’ money printer.
People can and will cry foul about war for oil to make political hay.
The reality is that economic power is power.
If the US maintains a power advantage over adversaries, the world is a more peaceful place for everyone.
Not perfect, but better nonetheless.
The US crossed the threshold of being a net exporter of petroleum + petroleum products during the pandemic and hasn’t looked back since.
(Also a net exporter of natural gas and coal.)
Petroleum + petroleum products net imports:
https://www.eia.gov/dnav/pet/hist/Le...s=WTTNTUS2&f=W
Energy overview (consider net imports):
https://www.eia.gov/totalenergy/data...pdf/sec1_3.pdf