- As the U.S. sinks into debt, inflation, a collapsing petro-dollar and political chaos - - - The BRICS nations are attracting many new member nations and building a gold and commodities backed currency.
(Zerohedge) Today OPEC+ woke up and chose scorched-earth war against the Fed.
That's because while the US central bank is already trapped, and is desperately looking for any excuse to halt its tightening campaign now that inflation is accelerating . . . .
As the WSJ reports today, one of Washington’s closest allies in Asia is now buying oil at prices above the cap, in effect breaking with the sanctions regime imposed by US allies.
As the note adds, Japan got the U.S. to agree to the exception, saying it needed it to ensure access to Russian energy. The concession shows Japan’s reliance on Russia for fossil fuels, which analysts said contributed to a hesitancy in Tokyo to back Ukraine more fully in its war with Russia. It also shows why the price cap was imposed at a level where it doesn't actually adversely impact Russian oil exports. But the current price surge means that unless the price cap is lifted, the U.S. alliance is about to shoot itself in the leg.
Going back to Japan, it's the one country which - at a time when most European countries have at least claimed they are reducing their reliance on Russian energy supplies - has stepped up its purchases of Russian natural gas over the past year.
Japan is the only Group of Seven nation not to supply lethal weapons to Ukraine, and Prime Minister Fumio Kishida was the last G-7 leader to visit Ukraine after Russia’s invasion.
In the first two months of this year, Japan bought about 748,000 barrels of Russian oil for a total of ¥6.9 billion, according to official trade statistics. At the current exchange rate, that translates to $52 million, or just under $70 a barrel.
Aleppo, Syria before and after the unconstitutional CIA backed war.
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