8 Comments
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William Foster's avatar

One problem, what about allied producers that export through the straights that are holding hundreds of billions in US Treasuries that aren't able to export their sole export product? Their only source if revenue now is to sell those treasuries before they mature.

Rod D. Martin's avatar

Well first, they are learning that Iran really is their enemy. Some of them have tried to thread the needle for many years. That is no longer viable, and it's one of the reasons the UAE just quit OPEC and is seeking a permanent currency swap line with the U.S.

But second, they are learning that they can't be so reliant on the Strait. Saudi Arabia in particular has ramped up oil shipment using the East-West Pipeline to Yanbu on the Red Sea. The UAE is looking to significantly increase capacity to ship by pipeline through Oman to the Gulf of Oman. There's even some talk of a regional pipeline to the Mediterranean coast of Israel.

So we're removing an existential threat to all our GCC friends, which they have come to see in exactly that way (thanks Iran!). And meanwhile, we are shifting the oil and gas industry's center of gravity to the Gulf of America, which all these guys understand and respect. It's not only what they'd do, it's what they did in the 1970s. So the best answer is to get on the team, and that's what they're doing.

William Foster's avatar

I hear you, but how many gulf states can we give permanent currency swap lines to? We're not in the best financial situation ourselves.

Rod D. Martin's avatar

I think you misunderstand the nature of a currency swap line. It is not a bailout or "foreign aid". The effect is to strengthen the dollar and America's financial dominance. I think this might help: https://www.rodmartin.org/p/deep-dive-trumps-plan-to-sideline

Sean's avatar

Epstein files guys. Where are they?

Rod D. Martin's avatar

Four million Epstein files released so far. How many of them have you read? Zero, I'm betting, even though they're available online.

Sean's avatar

You'd be betting wrong. I'm betting I probably pay a higher percentage in taxes than you do. I know your class and what you're about.

Your associations with Musk and Peter Thiele also' show character flaws.

Rod D. Martin's avatar

Haven't read a single document, obviously. But if you have, give us the number. Tell us.

I can tell you one I read. It's the one that proves Donald Trump personally turned Jeffrey Epstein in to the FBI.