US veto may make the Middle East turn to the Far East.

The world is already unstable due to the economic problems. That instability cannot go on without causing a blow-out somewhere that will stabilize the situation. For the moment, no one knows what that blow-out will be (Eurozone is favorite).
The US veto will shake up the already well-shaken Middle East. Potential blow-out points are everywhere~!
The West Bank. Lebanon. Iran – Syria. What will Iraqis make of it~? North Africa is being run by new regimes that need to solidify their leaderships.
The Saudis have the problem that they will want to tweak the US and Iran.
They could (with others in the crescent) start accepting non-US-dollars for their oil (which mainly goes east anyway)……and accelerate a general orientation towards Asia.
This, strangely, may push Iran and Syria into the unwilling arms of the US.

13:06 min.

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  • CSArichardo

    Hi Nick…just back from vacation and two weeks without the internet.  Appears that the world has not been destroyed by the politicians in my absence.  I think that the Saudis are afraid of Turkey’s increased influence in the area.  However I am not certain as to why, except that Turkey used to have an empire that contained the Saudi Arabia ?  So the big news I have missed can probably be summed up with Turkey deciding that if Europe does not want them then there is plenty of the middle east to become friendlier with. 

    • http://overthepeak.com/wordpress/ Mystic

      So, to prove their `street cred,` they are going to go and pick a fight with Israel~?
      But yes, they do need friends and they just aren’t the right religion to get shoulder to shoulder with the nice European folk~!

  • Windcutter
  • Windcutter

    Shooting themselves in the foot, maybe.

    Although I agree 100% that this wastage should stop, here’s a plan to lop 12,000,000,000 quid off the GDP. I wonder where the money will be spent or maybe even saved for the rainy days in the monsoon of the retirement, or more likely pay down some more debt.

    http://www.telegraph.co.uk/foodanddrink/8764091/New-rules-scrap-sell-by-date.html

    As seems to be often the case, they twiddle one bit of the economy and there will be unknown results. But the waste should stop, that is definitely the way to go.

    • http://overthepeak.com/wordpress/ Mystic

      Yes, yes..the waste etc.  but really the problems go deeper than making the old system better, no~!?

      • Windcutter

        Eliminating the massive waste would be a huge stride in the right direction. Everything I buy nowadays seems to render itself useless through failure or obsolescence in two years or so.

        In ‘the old days’ things lasted a lot longer, or maybe I’m age biased?

        • Anonymous

          Yes, Imo from a companies viewpoint good quality (durable) goods are not
          optimal for optaining maximum profit.

          To optain maximum profit they make imo products that are good enough for
          popular short term use.

          A collective strategy to make the best (maximum) net profit per time
          unit (per month, per year). Because durable goods are not the best strategy to
          optain maximum profit one can say that our economy is based on waste. 

          Her in the Netherlands
          it was even on Television that a new economic model is needed to realise a much
          more systainable society (economic system). A lot of our jobs our dependent on
          waste.

          Som scientist at by example Technical universities in the Netherlands
          are thinking about ways to (step by step) transform our waste based economy to
          a more sustainable economy. It is not easy because our society is conditioned
          to do business in certain ways. Its like adjusting the moving direction of a  big supertanker  (it has huge momentum)…    
           

  • Bigcollapso

    I agree that default would be a good start. What the bankers don’t yet realize that is that eventually all of this stuff will become a liability. They are still tying rocks together to make a raft. They are aggravating their own problems, because they think that the debt will become money, and they think that money will buy them candy. Once they finally realize that they are actually transferring their own wealth into a bottomless sink hole the world will become a different place.

  • Windcutter

    What is afoot in the “market”?

    There must be a shortage of USD’s coming up over Christmas, because the Big Five Central Bank Club is prepared to dish out unlimited amounts of USD’s against ‘acceptable collateral’. I trust it’s not inability to pay the damn bonuses in cash.

    This is basically, if I understand it correctly, unlimited QE with a duration of five months covering the period 12th October to the 1st March. 

    http://www.bankofengland.co.uk/publications/news/2011/084.htm

    I suppose the CB’s are required by law to say they are doing this, but there is no requirement to say why. Which leads to unnecessary speculation.

    Now, which TBTF banks have massive USD debt obligations coming up soon, but no dosh to pay up? Is Greece involved in this web of entangled finances?

    • http://overthepeak.com/wordpress/ Mystic

      I believe they will be `lending money` not `buying stuff` (QE) so not so `bad` (just CB’s doin’ their jobbies).

      • Windcutter

        How fine is the line between issuing unlimited USD’s against ‘accepted collateral’ and issuing limited USD’s in purchasing ‘stuff’?

        IMO this is all very blurred.

        • http://overthepeak.com/wordpress/ Mystic

          Blurred, eh~!?
          (it’ll be the smoke and mirrors doing that~!)