Hey There Income Hunter,
Well, that didn’t take long …
I wrote last week about how Vladimir Putin held all the cards and was setting up Europe for a shakedown.
It doesn’t hurt that he’s received all the help he’s needed from China and India, with the duo scooping up as much oil as Moscow will dole out.
Of course, with energy in short supply, the guys who have it also have the leverage …
And, bad news, Russia recently passed Saudi Arabia as the largest exporter of crude oil.
It’s all a little post-apocalyptic.
Now Putin is playing hardball with Europe, and a possible one of the consequences may be a European allegiance shift to the Brazil, Russia, India, China and S. Africa (BRICS) cohort.
Today, we’ll take a look at what that would mean for the US and how YOU could make money on a possible switch.
Even the Mideast is Buying From Russia
Biden went to Saudi Arabia last week with an oil can in hand …
Unfortunately he found out the Saudis output was near a ceiling and he came home empty handed.
If that is really the case, it means either the Saudis and Middle East oil production is decreasing or that the region is also siding with Russia.
Either way, that is not good news for the West and, as you can see from the chart below, the Middle East is, in fact, importing more oil from Russia.
The news from the Saudis and the fact that China and India both have a massive oil deficit is most likely the reason the latter two nations refused to go along with Western sanctions on Russia.
What was confirmed from the Biden trip was a couple of key points:
- Putin has the most leverage
- The global monetary system as currently structured (Petrodollar system) cannot function if Middle Eastern oil production is in decline
Yes, when the Saudis can no longer raise production, the Petrodollar system breaks.
And remember, the Petrodollar system is how the US was able to find buyers for US debt …
We protect OPEC, they exclusively use US dollars as settlement for oil, and with excess dollars they buy US bonds.
Well, if OPEC is aligning with BRICS, that deal is done.
For traders that means we are much closer to a massive shift away from US dollar assets to real assets that we thought.
Bring It Home
Given the circumstances, it may be time to think strategically and consider buying fossil fuel and nuclear energy stocks.
That’s in addition purchasing gold shares that are backed by physical gold because gold will be part of a settlement solution within a new monetary system.
I have been talking about this ultimate end game for over a year now. I am just amazed at how quickly it is transitioning.
These developments make what Powell has to say on Wednesday even more important …
If he stays hawkish, it confirms their fear of the changing world order and answers the question of why they are choosing to inflict so much pain on our trading counterparts that still rely on dollars.
Stay tuned. I appreciate all your feedback and comments, and as always …
Live and Trade With Passion My Friend,
Griff