Economic Warfare and changing Geopolitics due to –
NATURAL GAS of ARCTIC specifically
NUCLEAR Weapons & ARMS RACE
Prices of Crude are temporarily being brought up only for the sake of SAUDI ARAMCO’s IPO which is scheduled to be listed next year so for that purpose intentionally temporary rise in crude prices are done or might be Developed & Powerful Economies are using it as a bargaining tool & they want to get a better deal on all fronts with Middle East.
The main intention of Developed & Powerful Economies is to replace Oil with Natural Gas of Arctic. These powerful economies are playing it very smartly with the Oil prices since they are making it sure that it stays above the Natural Gas prices according to the situations prevailing in the market so that Developing Economies attraction towards Natural Gas is kept intact.
Developing & Poor economies want the prices of Crude & Natural Gas to stay low to meet their energy demands since it has direct impact on the Fiscal Deficit. Prices of Crude & Natural Gas are being played out very smartly based on the Fiscal position of Developing Economies i.e. Better the Fiscal Health of Developing Economies, Higher will be the prices of Natural Gas & Crude since the purchasing power improves & vice versa.
Climate & Environmental are genuine issues but now they are are being used as a tool to replace Oil with Natural Gas i.e. with cleaner fuel which is by the way good step.The nations whose Fiscal Health is good enough have already started shifting from Oil to Natural Gas to reduce Pollution level e.g. China, India, EU etc.Pollution has now became a major issue of whole World & each nation is accordingly using it for their own benefit.
OPEC is now left with no option but to think of another way of running their economies other than on Oil since major economies are shifting towards cleaner fuel to meet their energy demands & that is what the Natural Gas Exploring nations wants the World should do especially USA, Russia, China & some nations of EU.
Climate Accord is not beneficial to the OPEC especially to the Middle East nations since their economies are mainly & only depended on Oil.USA recently backed out of the Climate Accord which can be seen as favour to Saudi Arabia for Saudi Aramco’s IPO or OPEC or may be USA might have cracked a better deal out of it since from long time USA wants to pull out it’s Army from many war zone areas of Middle East nations like Afghanistan,Syria etc.
OPEC must remember one thing now USA has also got Oil & they are using it accordingly as per their own convenience to crack better deals from both sides i.e. from Exporter of Oil as well as from Importer of Oil.
Exporters/OPEC are Investor in USA e.g. Increasing prices by reducing Oil production & Importers are both Investors as well as Market for USA e.g. President Trump’s Tweet on Crude that prices are too high.
Also USA has an upper hand as far as Oil is concerned since USA’s economy is diversified & not fully based on Oil but on other side all OPEC nations of Middle East are fully depended on Oil.
Asia & Africa are Market for all these Oil & Natural Gas exploring nations since they are dependent on Import of these products.USA, Russia, China & many more developed & powerful economies are playing very smartly by using Crude, Natural Gas, Terrorism, Climate, Currency, Geopolitics etc as per their own convenience.
Automobile industry is another thing which has now started putting pressure on OPEC since Electric Vehicles & Vehicles on Natural gas etc are gaining momentum across the World. One thing is for sure that the USA, Russia & other powerful nations are playing the Oil & Natural Gas Games very smartly to crack better deals across the World. They are always on the winning side as far as Oil, Natural Gas, Defense Equipment, Technology etc is concerned.
Now comes the game of ARCTIC which has got WORLD’s largest NATURAL GAS RESERVE where US & Russia claim that it is their own but later they might have come to consensus & decided to join hands. Latest move of US declaring Jerusalem as a capital of Israel is one of those moves to distract the World’s attention from ARCTIC’s Natural Gas since immediately after the declaration of Jerusalem as Israel’s capital Russia started exploration of Natural Gas from Arctic and sooner or later US will also follow them. Russia has already invited India for Natural Gas exploration in Arctic region.
Recent comment of Russia to Saudi Arabia was actually a message to whole of OPEC Community & the comment was Buy our Gas and Save your Fuel.This is actually a win win situation to both US,Russia & OPEC since Oil reserves are depleting faster & due to this recent developments US & Russia will earn from both Crude as well as from Natural Gas of Arctic.
Recently Russian President Putin’s message to USA’s President Trump was crystal clear & he said higher Natural Gas prices will be beneficial to both USA & Russia since they are exporters of Natural Gas.Also to distract the attention from ARCTIC Natural Gas Reserves US & RUSSIA are using the nations like NORTH KOREA in East Asia, Pakistan in South Asia, ISIS and Jerusalem like issues in Middle East & West Asia, Iran in Middle East, breaking Europen Union like Brexit, pressuring economies in South America and Africa through sanctions, Terrorism across the globe i.e. from financing to supplying of defence equipments to Terror Organisations via Muslim Nations.
Bitcoin on other hand is being encouraged to break the backbone of Poor economies in South America and African nations. By encouraging Bitcoin the Developed & Powerful economies are directly trying to attack GOLD & precious metals since Bitcoin is seen as a new asset class i.e. substitute to Gold. Gold & precious metals are backbone of those poor economies in South America & Africa.Developed & Powerful economies have fully expanded & now their growth has stopped or you can say they have become stagnant & so in order to further expand all these nations have started targeting SOUTH AMERICAN and AFRICAN nations to expand their economy.
US, Russia, China & EU are all involved in political interference in these poor economies to topple the current regime for gaining upper hand on each other & to some extent Military intervention is also exercised by these nations. Military Coup is also being backed & encouraged by these powerful nations in these poor economies.They are putting pressure on these poor economies by encouraging Bitcoin due to which Investors have diverted their attention from Gold to Bitcoin & so this can further put pressure on these poor economies which are depended on precious metals like Gold, Platinum etc.
Poor economies are under pressure & best e.g. is recently Zimbabwe has started using US Dollars and their own currency is being stopped due to economic pressure from Western World.
Inflation in these nations are increasing sharply and now inflation is out of hands and can’t be controlled & so the use of Bitcoin is on the rise in these poor economies.
Venezuela is another example where inflation has gone out of control due to Western World’s sanctions & here also the situation is same & there is sharp rise in usage of Bitcoin.There are few more nations in the list where same situation is going to get repeated like Libya, Lebanon, Sudan, Somalia etc.
These two nations are specifically selected since Zimbabwe has got largest GOLD RESERVE in the world & VENEZUELA has got largest OIL RESERVE in the world.
It is very funny to listen that the nation with largest OIL and GOLD reserve are under extreme pressure & they have stopped using their own currency & are using US Dollar. There is a sharp rise in use of Bitcoin in these nations. Inflation has risen sharply & gone out of control.
All this has happened due to powerful nations interference, sanctions, economic warfare & to some extent miscalculated policy decisions by those nations.
Bitcoin is intentionally being encouraged as a new asset class in World & reason behind that can be only predicted. Currency, Crude, Gold, Treasury bonds, Forex reserves, Land, Natural Gas are asset class which almost all nations hold & can deploy it as tool in Trade War but Bitcoin as we know is a new asset class & Blockchain technology helps it to keep it confidential.
Bitcoin may be seen as a new safe heaven for all of them i.e. using it for Terrorism, Drugs dealing, Extortion, etc across the World & also the Black Money is being invested in Bitcoin since Blockchain Technology helps it to keep it confidential whereas now many safe havens like Swiss Bank, Mauritius, Cyprus, Singapore route etc are no longer safe heaven which may be due to some sort of pressure from some powerful nations or due to some other reasons.Bitcoin can also be used as a tool to extract money from retail investors across the World to some powerful nations since someone might have bought it at lower prices & now are promoting & encouraging the usage of Bitcons so that the prices rise.So these poor economies might have fallen in the trap of powerful nations since usage of Bitcoin is more in these poor nations.Buying at Lower Prices & Selling at High Prices is being implemented by some powerful nations & these poor nations might have been caught in the middle of that trap set by some powerful nations.
On one hand GOLD is being pressurized through BITCOIN and on other hand CRUDE is being pressurized through SOLAR , ELECTRIC VEHICLES , BIOFUEL , NATURAL GAS etc & by doing this backbone of African nations & Middle East nations is being broken so that they will open up their economies to the Developed & Powerful nations.
Cold War & Arms Race is Mother of all of above mentioned Warfare tactics & the Arms Race has already begun since US has already backed out of the Nuclear Treaty with Russia. This is further going to put the pressure on all those poor & developing economies since they are the major importer of Defense equipment. North Korea, Iran, Pakistan, etc will further work as a Fuel in the Fire for the Arms Race & this all is being done intentionally by the Developed & Powerful nations in order to encourage Export of Defense equipment. The main intention of these Developed & Powerful nations is to extract money from poor & developing economies. North Korea, Iran, Pakistan, Palestine etc enjoys one or the either powerful nations support & these powerful nations are working together for each others betterment so that they can earn from Defense Exports. Tensed situation across the globe helps in the rise of sale of Defense Equipment.
So I think these type of economic conspiracies & warfare are being hatched together by the group of Developed & Powerful Economies of the World in order for further expansion.
DISCLAIMER: The author is solely responsible for the views expressed in this article. The author carries the responsibility for citing and/or licensing of images utilized within the text.