Saudis flex their oil muscles

Remember Bandar Bush. That jovial solid gold Rolex giving best friend of America. Well he is now royally pissed at the Obama administration. It has long been obvious that the Saudis and Israelis are best buds. For some strange reason Canada seems to be the only other country still hooked to these pair of strange bedfellows foreign policy. There is a lot of speculation that the saran gas attack in Syria was a false flag engineered by someones secret police.  Will we ever know the truth, based upon the results of the inquiry into the Kennedy assassination its doubtful. The fact is that the Assad regime had everything to lose from a gas attack and the rebels everything to win.

Al Queda was created in Saudi Arabia, the 911 hijacking was planned and carried out by Saudi citizens.  The Saudis are furious that the US will not be the Al Queda air force in Syria. They are also fuming that Obama has began detente with Iran. Saudi Arabia is a Sunni country, Iran is the most powerful Shiite country in the world. The Saudis are also ruthlessly fighting a Shiite uprising in Bahrain. A country that has Sunni royalty but a majority Shiite population. And it is home to the US 7th fleet. The Obama administration while not directly criticizing the heavy hand, is not turning the Bush administrations blind eye.

Essentially the Saudis are threatening to blow up the US reserve currency status if America does not fight Saudis battles. Owning the reserve currency has many advantages. Its estimated that it generates up to $100 Billion a year in revenues, it adds 10 to 15% to the exchange rate of US dollars, and most importantly it creates huge demand for US dollars that allow the treasury to print money without penalty.

For some artificial reason if you buy oil you must buy it in US dollars. Many have speculated that the main reason Iraq was invaded was Saddam's threat to trade oil directly without using US dollars. Now the Saudis are threatening the same thing. Obama has his nuts in a vice, this is going to be fascinating to watch moving forward. The US can not lose reserve status, if they cant borrow money the world economy goes boom. So either Saudi Arabia backs down or is invaded or Syria and Iran get liberated. Stay tuned.