President Trump's 9-Day World Tour PBP: G7 Summit (Trade, Brexit, Climate, Immigration, Security)

[Arkain2K]

 

[Arkain2K]

 

[Arkain2K]

 

[jantar]

bad move

 

[Arkain2K]

bad move

I'm sure the Huffington Post would agree.

Hell, I'm not even gonna be surprised if a certain segment of the media to spin this long-expected arms deal into something controversal or even illegal, all because the person who signs the final document isn't somebody they wanted.

 

[HomerThompson]

I'm sure the Huffington Post would agree.

So insightful. Great post. Why don't you explain how it's good to sell $110 billion in arms to SA?

 

[Arkain2K]

So insightful. Great post. Why don't you explain how it's good to sell $110 billion in arms to SA?

To understand why the United States chose to partner with Saudi Arabia decades ago and pledge to protect them against their arch nemesis, first you'll have to learn about basic High School's World History, particularly the common knowledge about the Petrol Dollar and how it accomodated our insatiable appetite to print money as much as we want all these years.

The Saudi gets their weapons, American Dollar holds world supremacy, that is the deal that all Saudi Kings and U.S Presidents uphold. The only differences between each administration are the size of the arms package and prices.

How Petrodollars Affect The U.S. Dollar
By Zaw Thiha Tun | July 29, 2015

After the collapse of the Bretton Woods gold standard in the early 1970s, the U.S. struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born, along with a paradigm shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.

The petrodollar system elevated the U.S. dollar to the world's reserve currency and through this status, the U.S. is able to enjoy persistent trade deficits, and become a global economic hegemony. The petrodollar system also provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling." However, before the effects of the petrodollars on the U.S. dollar can be examined, a brief history lesson is in order. (For more, see: Global Trade And The Currency Market and US-Saudi Relations: A Complex Scenario.)

History of the Petrodollar

Faced with mounting inflation, debt from the Vietnam War, profligate domestic spending habits and a persistent balance of payments deficit , the Nixon administration decided to suddenly (and shockingly) end the convertibility of U.S. dollar into gold. In the wake of this “Nixon Shock,” the world saw the end of the gold era and a free fall of the U.S. dollar amidst soaring inflation. According to, Dr. Bessma Moomani in the article, " GCC Oil Exporters and the Future of the Dollar," through a series of carefully crafted bilateral agreements with Saudi Arabia beginning in 1974, the U.S. was able to promote bilateral political and commercial relations, market imported U.S. goods and services, and help recycle Saudi petrodollars (more on this later).

Through this framework of economic cooperation, and more importantly, petrodollar recycling, the U.S. managed to influence Saudi Arabia to persuade the other members of Organization of the Petroleum Exporting Countries (OPEC) to standardize the sale of oil in dollars. In return for invoicing oil in dollar denominations, Saudi Arabia and other Arab states were able to secure U.S. influence in the Israeli-Palestinian conflict, along with U.S. military assistance amidst an increasingly worrisome political climate that saw the Soviet Invasion of Afghanistan, the fall of the Iranian Shah and the Iran-Iraq War. Out of this mutually beneficial agreement, the petrodollar system was born.

Benefits of the Petrodollar System

Since the most sought after commodity in the world--oil--is priced in U.S. dollars, the petrodollar helped elevated the greenback as the world's dominant currency. In fact, according to the Bank for International Settlements (BIS) triennial survey, 87 percent of all foreign exchanges deals initiated in April 2013, involved the USD on one side. With this status, the U.S. dollar was able to enjoy, what some have asserted to be an "exorbitant privilege" of perpetually financing its current account deficit by issuing dollar denominated assets at very low rates of interest, as well as, becoming a global economic hegemony.


Read more: How Petrodollars Affect The U.S. Dollar | Investopedia http://www.investopedia.com/article...trodollars-affect-us-dollar.asp#ixzz4heUq3WIV

 

[jantar]

To understand why the United States chose to partner with Saudi Arabia decades ago and pledge to protect them against their arch nemesis, first you'll have to learn about basic High School's World History, particularly the common knowledge about the Petrol Dollar and how it accomodated our insatiable appetite to print money as much as we want all these years.

a dirty pact indeed

playing the devils advocate the US should just invade SA and take their oil

 

[Metusalemi]

So insightful. Great post. Why don't you explain how it's good to sell $110 billion in arms to SA?

You get $110 billion.

 

[HomerThompson]

To understand why the United States chose to partner with Saudi Arabia decades ago and pledge to protect them against their arch nemesis, first you'll have to learn about basic High School's World History, particularly the common knowledge about the Petrol Dollar and how it accomodated our insatiable appetite to print money as much as we want all these years.

Don't talk down to me, please. I understand the petrodollar, but that doesn't mean it couldn't be maneuvered around, or that continuing arms sales are a good thing for the world. The strength of our economy, and our nations stability are what really back the dollar.

You act like a prick a lot in the war room and seem to have a lot of unearned hubris. SA isn't as important as people make them out to be. Just because you accept that their evil is necessary doesn't make it so, and it certainly doesn't make our support of it good or necessary. Your ideas are outdated and backed by accepting ideas as truisms just because that's what you've been told to believe. Again, you can go fuck yourself with your condescension. I'll happily take you on in the debate league in any topic of your choosing.

 

[SouthoftheAndes]

Don't talk down to me, please. I understand the petrodollar, but that doesn't mean it couldn't be maneuvered around, or that continuing arms sales are a good thing for the world. The strength of our economy, and our nations stability are what really back the dollar.

You act like a prick a lot in the war room and seem to have a lot of unearned hubris. SA isn't as important as people make them out to be. Just because you accept that their evil is necessary doesn't make it so, and it certainly doesn't make our support of it good or necessary. Your ideas are outdated and backed by accepting ideas as truisms just because that's what you've been told to believe. Again, you can go fuck yourself with your condescension. I'll happily take you on in the debate league in any topic of your choosing.

Damn son.

We actually agree for once. I like that you don't take this place too seriously. I pitty any man who does this place is a joke it's a god damn mma forum for christ sakes. Lol at acting like anyone knows it all or being a pretentious ass. The too serious ones are the real sad cases.

Anyhow feel free to use hot dog rob ford memes lol. I don't mind

And I do agree with you. There are ways around dealing with the devil (Saudis) but alas nobody so far has wanted to and prefers the quick easy way. No doubt the defense contractors and paid off congressmen also benefit from close relations with the Gulf states.

 

[Limbo Pete]

Don't talk down to me, please. I understand the petrodollar, but that doesn't mean it couldn't be maneuvered around, or that continuing arms sales are a good thing for the world. The strength of our economy, and our nations stability are what really back the dollar.

You act like a prick a lot in the war room and seem to have a lot of unearned hubris. SA isn't as important as people make them out to be. Just because you accept that their evil is necessary doesn't make it so, and it certainly doesn't make our support of it good or necessary. Your ideas are outdated and backed by accepting ideas as truisms just because that's what you've been told to believe. Again, you can go fuck yourself with your condescension. I'll happily take you on in the debate league in any topic of your choosing.

 

[Makani]

This might sound petty, but I hate the way Trump sits. Slumped forward, hands clasped, like he's bored and waiting for someone to offer him an ice cream.
I actually think this is going to be a pretty easy tour, we might get a few embarrassing soundbites but it'll mostly just be glamour shots. Speaking of which, both Trump women brought their A-games to that shitty country. Hooo-ey.

 

[Arkain2K]

a dirty pact indeed

Dirty? Perhaps, but it's certainly mutually-beneficial for those involved. Without that pact, the almighty U.S Dollar probably would never have become the world's preferred currency for business overnight, and our inflation rates would be a lot higher with the furious speed of our money-printing press if it didn't have the backing of the one commodity that everybody needs.

During the Cold War, it must have been amusing watching the Communist block scramble to find U.S Dollars, because they can't do any business with the outside world without it. I get the same giggles now when Nicolas Maduro scouring for Benjamins as soon as he finish with his daily anti-American tirade.

There are certainly some threats to this status quo, particularly with Russia rising to the world's top 3 oil producer and accepts other currencies as payment, there are some Americans who think Iran is trust-worthy and should be friend with, and Saudi Arabia's abysmal human rights record continue to be a pain in the ass with no end in sight, but I do not see the partnership between the U.S and Saudi Arabia to change anytime soon, especially with the Chinese Yuan steadily gaining clout as a reserve currency while the U.S trade deficit continue mounting for years with no end in sight.

That means every four to eight years, we can expect Republicans and Democrats (and Rand Paul) to take turn being outraged that the other side "bow down to the Saudis and kiss their asses" each time a new batch of weapons are ready to be shipped to whoever in charge of the House of Saud at the time, for billions of dollars.

 

[senri]

Don't talk down to me, please. I understand the petrodollar, but that doesn't mean it couldn't be maneuvered around, or that continuing arms sales are a good thing for the world. The strength of our economy, and our nations stability are what really back the dollar.

You act like a prick a lot in the war room and seem to have a lot of unearned hubris. SA isn't as important as people make them out to be. Just because you accept that their evil is necessary doesn't make it so, and it certainly doesn't make our support of it good or necessary. Your ideas are outdated and backed by accepting ideas as truisms just because that's what you've been told to believe. Again, you can go fuck yourself with your condescension. I'll happily take you on in the debate league in any topic of your choosing.

That is some penetrating poetry Mr Thompson. Let us witness the impact...

 

[Magooglie]

Salman should have made Trump bend the knee.

But I guess he's not Putin.

 

[ShinkanPo]

Not only that, but Saudis invited all the regional leaders in the Muslim neighborhood to attend, in an effort to strengthen the U.S-Gulf Council alliance against Iran's influence, and the Sunni leaders are for all intends and purposes excited to be there.

This could be either the new beginning of a beautiful (albeit dysfunctional) friendship, or a giant clusterfuck. I give it 75/25, depends on how much freestyle adlibs is added to the speech.

I think Trump got this one, he can be very diplomatic when he wants he will just say, I love the Saudis and the Arabs they got very beautiful deserts really beautiful Sands no one can make sand more beautiful than them.

 

[ShinkanPo]

...and bonus:

That Pence photo is MEME material..

SOON!!!

 

[Arkain2K]

 

[Slippery Kantus]

Trump recoils from the truth like a vampire does from a crucifix. I bet he made a hissing sound like cornered feral cat when Comey wouldn't pledge loyalty.

Maybe they should throw some holy water on him just to see what happens?

At the very least, it would ruin his Cheeto dust spray tan, which would be hilarious.

Jesus dude, you're more gotten to than Maher.

Obsession is unhealthy man!