A beautiful building which should make the US taxpayer very proud.
Nothing is better that a good conversation between trusted friends to get quickly to the point.
1974 was an important year, it was then crucial to deal with the effects of the first oil chock.
So I strongly suggest readers to go to the whole conversation the head of the secretary of state is discussing those important matters with high level German counter-parts, the central question is about potential systemic failure of the financial system.
Ingenuity would lead to understand that the birth of the so called petro-dollar was just nothing more than an unforeseen consequence of a geopolitical quagmire. It should be noted that not only that was a possibility clearly present to the mind of those involved at high level but, even more interesting that the endgame was also very clear from the very beginning.
Von Staden: What about the Shah?
Secretary: I don’t understand his position at all. He is the only world statesman in the area. These prices will in the end ruin the producers
as well. Constant devaluations are no solution. If Yamani gets his way and production is cut further, there will be an even more serious crisis.
Rush: If the Arabs industrialize subversion will grow.
Secretary: That’s what they are doing in Saudi Arabia, building for a revolution.
Von Hoffman: They have all these billions of dollars and yet there is no commercial teletype in Saudi Arabia.
Bahr: Why can’t they invest their money in the US?
Secretary: I don’t think they will to any great extent, but if they would we could let them invest here and then expropriate their assets.That’s really our secret plan. I hope you will go back and convince your colleagues of the absolute necessity of achieving results at this conference.
FOREIGN RELATIONS OF THE UNITED STATES; 1969–1976 VOLUME XXXVI,ENERGY CRISIS,1969–1974
At the light of such a document one should ponder the alleged active involvement of Saudi Arabia in the recent price move. As they surely figured out for themselves the “secret plan” we can presume that they know that their giant partner should not be mismanaged. It let us to contemplate three fascinating alternatives.
- Market is at work, such a proposition seems preposterous in our world but who knows, I would prefer that adventurous conclusion.
- If US is not happy with what is happening perhaps enormous events are on their ways on the financial front.
- If US is OK with what is going on, then the pressure on Russia is surely not the only reason, the oil majors will be happy to grab the busted juniors companies who prospered in the inter-land for almost nothing. Such a possibility will let the US taxpayer with another boom-bust price to pay but it will give the USA a powerful industrial base home based in that still strategic area.
We are living interesting times indeed.