from The News Doctors:
Secretary John Kerry and friends have managed what can only be called a brilliant double suicide. The September 2014 deal with Saudi Arabia to crash oil prices, then at $103 a barrel for US WTI grade crude oil, not only has managed to bring the US shale oil industry—Washington’s new strategic card allowing the US to essentially abandon her Saudi and Gulf Arab allies–to the brink of bankruptcy and collapse. The oil price collapse, ironically, also gave Russian oil beautiful profits and forced the companies to turn east for far larger and more lucrative new markets. Team Russia-Saudi Arabia: 2 to 0 for Team USA-Canada.
At the present rate of developments, with oil prices frantically being pushed up by derivative trades only to crash back the next day, today hovering at $47 a barrel for the benchmark US West Texas Intermediate or WTI, I would estimate that a major share of USA shale companies will be forced to declare Chapter 11 bankruptcy before year-end or into the first quarter of 2016.
By now the story is well-reported. In September 2014 US Secretary of State John Kerry made a trip to Saudi Arabia to meet the dying King Abdullah, his Oil Minister Ali al-Naimi and others. Kerry was armed with a proposal believed to have generated from one of the many Washington policy think-tanks. He proposed to the King that the world’s largest oil producer crash the world oil price. For Kerry it was a seemingly brilliant way to deal a devastating blow to Russia’s oil-reliant economy and the state budget revenues, heavily dependent on oil and gas.
For neo-cons such as Victoria Nuland, Assistant Secretary responsible for waging war on Russia, it was orgasmic. Only one problem. It’s backfired colossally.
There is a reason they call it “Foggy Bottom” around the State Department headquarters on the Potomac River in northwest Washington. Now, though, they might have to rename the area “Foggy Brains” for all the recent foolish and poorly thought-through acts of war, financial as well as military, recently being generated there from war on Libya to Egypt to Syria to Ukraine and now Russia and soon China.
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