Dumping dollar assets the key to protecting onself from economic warfare

Last week Saudi Arabia, a long time friend and ally to the Washington cabal, issued an ultimatum to President Obama that should Congress succeed in passing legislation to un-classify and disseminate ’28 pages’ of the 9/11 Commission report which allegedly implicate the Royal family in playing a key role in the terror attacks, then they would respond by dumping more than $750 billion worth of Treasuries and other dollar assets.

And as many predicted, Barack Obama caved to his geo-political masters and assured them that he would veto any demands that came before his desk to reveal the truth about Saudi involvement in 9/11.

President Obama bows to Saudi King
President Obama bows to Saudi King

Yet what is perhaps not being mentioned by the media from this threat is the significance and even importance for not only the Saudi’s, but for other countries in using the threat of dollar dumping more often as a means to counter and protect themselves from the programs of economic sanctions and economic warfare that the U.S. uses regularly to force its will on these same nations under the guise of foreign policy.

For Saudi Arabia, they already have the case of their stolen gold by London to justify getting out of dollar denominated assets, or at the very least, getting any and all assets completely out of Western controlled banks.  And if for some extraordinary reason the U.S. decided to reveal the Saudi’s direct involvement in the terror attacks of a decade ago through the dissemination of the classified documents hidden from the public, then once that genie is out of the bottle, the lawsuits that would come from 9/11 victims would assuredly lead to a freezing of Saudi assets to pay for their court judgments.

Because the U.S. currently controls nearly all mechanisms within the global financial system, they have embarked on policies which almost always begin with economic sanctions, and a freezing of assets for any nation it determines to be in opposition to the will of Washington,  and of U.S. foreign policy agendas.  And we still see this today in regards to nations like Russia and Iran, and in a more subtle way for most of the nations of Europe (through Fed swap lines).

The bottom line is that the U.S. has crossed the Rubicon one too many times by unilaterally inflicting economic warfare on any and all nations that do not cede to their will, and they have been able to do this through the petrodollar system originally created through a partnership with the House of Saud.  But as both Russia and China have shown over the past four years, the effects of sanctions can be mitigated through strong coalitions that are willing to participate outside dollar hegemony, and even turn the tables on the U.S. by offering the world an alternative to the current dollar based financial system.  And it appears that the Saudi’s know this, and know that it is now possible to break away from Washington at any time, and is part of the reason why Obama chose to ‘bow down’ to the royal family this week despite the growing movement demanding that the books be open, and that the hidden truth that remains a shadow over the attacks on 9/11 be revealed.

4 comments

  1. Hallelujah, amen & holy shit….. well said:

    "Yet what is perhaps not being mentioned by the media from this threat is the significance and even importance for not only the Saudi’s, but for other countries in using the threat of dollar dumping more often as a means to counter and protect themselves from the programs of economic sanctions and economic warfare that the U.S. uses regularly to force its will on these same nations under the guise of foreign policy."

    Exactly spot on, the debtor can not negotiate terms from any position of strength when push comes to shove. Even with a bunch of bush league idiots, if they hold our debt.

  2. Seems like the truth IS coming out in a drip-drip fashion. Somethings out there now called ‘document 17’, showing one of the hijackers US flight certificate sent in an envelope from the Saudi embassy in Washington. This increases the pressure for full disclosure, which will never decrease, but slowly ramp up over time.

  3. Ken – yes, sovereign countries are sick and tired of being bullied by the empire of chaos, and indeed the US has past the rubicon, but you fail to mention the primary reason nations can threaten to dump dollar assets, which is because they have their dollar exposure hedged with gold.

    Their gold holdings acts as a hedge because gold is the anti-dollar monetary asset. When dollars fall, which they certainly would do if a country like Russia, China or the Saudis dumped billions of them, their gold holdings would rise, offsetting their losses. This is the primary reason these countries are buying tonnage — to act as a counterweight or hedge to their dollar assets.

    You mention the US uses the dollar to "unilaterally inflicting economic warfare on any and all nations that do not cede to their will." Wholeheartedly agree, this pattern of imperial aggression and overreach has been well established, so countries around the world know (Saudis included) that if they began dumping their dollar assets the US would be just as aggressive to stop it. By executive decree for, you guessed it, "nation security reasons", the US would simply flip the switch preventing them from selling their dollar assets.

    So China, Russia, Saudis, et al. have no choice but to accumulate gold to hedge their dollar investment in order to protect their sovereignty and get out from under the thumb of the US empire.

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