• Kissinger, Nixon, anyone?

     
  • We need more capex spending, more pipelines built and more drilling, in order to transition properly to clean energy. The Fed can't change a supply problem (with hydrocarbons) no matter how it acts. It turns into much higher labor costs, energy costs, food.

    The US is begging SA to pump more while trying to remove the Iranian National Guard as terrorists, as well as the Houthi rebels.

    US is reducing restrictions on Venezuela (a 'known terrorist and funder of terrorism') at the same time as killing the Keystone Pipeline which would carry crude from the US's ally, partner and neighbor Canada to US refineries that can refine heavy crude.

    US politicians (Biden included, markedly) are vilifying Big Oil, threatening them (saying they would turn them off).

    Adding windfall taxes and things to energy is just saying we want prices a lot higher, Bass said, instead of getting behind them, as the highest energy producer in the world (way ahead of the second, Russia).

    In 7 years, the first nuclear energy will open in Wyoming.

    He thinks it's the golden age for private capitol investing in hydrocarbons for the next 10 or 15 years. Demand is inelastic and growing, and there's no alternative energy that could get there in time. There aren't enough minerals to put into the wind turbines and things.

     
  • "It has been proven time and again that sanctions are a boomerang and a double-edged sword, to politicize, instrumentalize and weaponize the global economy, and to willfully impose sanctions by taking advantage of one's dominant status ... will only end up hurting one's own interest, as well as the interests of others, and inflict suffering on people around the world." - Xi speaking at BRICS summit

  • Saudi Aramco became biggest company in the world
  • Members of the Saudi royal family have been selling yachts, homes etc for a few years

    Apparently, MBS has cut money usually given to royals. He wants the money to fund ambitious projects. Some say that if the royals have lavish lifestyles, MBS will view them as rivals, and so are opting to hold cash.

  • Iran could teach Russia how to evade sanctions and 'money launder', according to an opinion piece in the WSJ (Dubowitz and Zweig)

    Of Tehran could serve as Russia's broker, taking a cut of the "illicit" trade it facilitates on Russia's behalf.

    Iran has a 'money laundering' architecture, a system they could make available to others.

    US/West kicked Iran of Swift, reduced their oil sales from 2.5b barrels to a few hundred thousand. So Iran has dealt with harsher sanctions than Russia (which still sells gas to Europe and has some institutions on Swift reportedly).


     
  • SA holding the cards

    XI is reportedly going to make his first overseas visit in 2 years to SA. Recently Biden asked SA to increase oil production and they said no.

    US is energy independent (biggest oil producer) and China is the biggest energy consumer (currently buys 1/4 of SA's oil exports). SA is the biggest crude oil exporter.

    US published documents on Yemen or something and linked SA royal house to Kashogi killing. China has it's think in Xinjiang.

    SA and US have an old relationship. China has leverage over Iran, something US may never have.

    How much weapons will China provide for SA?

    Reportedly China is talking about using Yuan instead of USD to buy oil. SA made a deal with Nixon to trade oil only for USD in return for security guarantees.

     
  • At minimum, expected 3-5% reduction in Russian economy due to sanctions

  • 2008 Russia takes a piece of Georgia, sanctions were pretty limited

    2014 takes two pieces of Ukraine, a few years later he's hosting the World Cup and European leaders are coming to visit him there

    2016 elections, Obama's like I don't want to deal with that right now

    So the economic sanctions now are maybe more than Russia expected

    - View by Ian Bremmer

  • Investing mainstream started to realize physical stores are good

    ... Simeon Siegel of BMO was talking to Kelly on CNBC and said they just finished a 6-month study, and all the big retailers who disrupted traditional stores with their e-commerce model are now growing profits through moving to physical stores (in addition to e-commerce. The term is 'omni'). Also realized that the middle man has value. He talked about 'surprises,' such as physical stores allowing you to own the brand and own the customer. It doesn't keep you at a certain threshold like e-commerce does.

  • China announces sanctions on seven Americans, including HRW's Sophie Richardson

    China's foreign ministry spokesperson also referred to American 'preaching' and 'arrogance.'

  • Saudi Arabia is going to have a news platform with a studio in DC.

    It will have journalists who were formerly part of AJ, Fox, NBC, and Sirius XM. It is expected before the end of the year.

    It's part of a new lobbying effort aimed at the White House and Congress.

    This is according to the DOJ: SA's foreign lobbying disclosures.

    The news org will be owned by Taqnia ETS, a SA-based subsidiary of SA's $400b PIF (Public Investment Fund). Taqnia is supervised by the Saudi Ministry of Info.

     
  • West's continued use of sanctions has less effect, according to Prof at U of South-Eastern Norway Glenn Diesen

    ... as the international system becomes more multi-polar. For example, Belarus, recently sanctioned by the EU for its human rights violations (following their grounding of a plane to arrest a Belarussian blogger), has other options in Russia. The US also sanctioned Myanmar following the coup, but they also have access to China and Russia.

    The hope with sanctions is that by undermining the whole economy of a country the population made to suffer will put pressure on their government to change. It is considered by some to have worked on Iran following the first Gulf War. There are also economic consequences in other countries including the one doing the sanctioning, such as in the US where the price of gas is driven up in line with sanctions on Iran. Thereby, such sanctions can end up helping other countries that may not be allies. It can also lead to negative consequences for the sanctioning country when it imposes sanctions on other countries for things it also does but expects to not be criticized for (many have pointed out that the US and EU also grounded a plane in 2014 to try to aprehend Edward Snowden - Austria grounded the plane from its airspace).

    The use of longlasting or permanent sanctions, especially when the sanctioned country has little ability to make concessions, it just leads to the sanctioned country learning to live without the countries that imposes the sanctions, according to Diesen.

    Anti-Russian sanctions following Crimea and Ukraine in 2014 didn't lead to Russia capitulating to the West or destroying the Russian economy. Russia rewired its economy to the East, forming a strategic partnership with China, reducing its vulnerability by cutting exposure to Western industries, tech, transportation corridors, banks, payment systems. Same with Iran. And now Belarus.

    #Belarus #Russia #Sanctions 
  • Nord Stream 2 almost finished, despite US sanctions along the way

    The U.S. will have a hard time competing with Russian gas anyway, in serving Europe. Russian gas is cheaper and is said to be greener.

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