Trump’s Own Deep State

Economics, Geopolitical, Premium POM

The Evidence of New Petroleum Politics & a Great Deal for America to Provide China with Crude


The evidence is clear.  A shift in the petroleum world is taking place.

With all the talk of the US Deep State and its attacks upon Donald Trump and his incoming administration everyone has failed to observe that Trump himself has something of a deep state supporting his strategies.

From the first moment his candidacy was announced there was a deep and broad strategy in place which included everything from the use of Twitter to the provocations against other nations and existing trade agreements, as well as how to overturn the elite media.  The fact that everything the existing American establishment threw at him didn’t stick should be evidence enough that something more powerful and organized was operating behind the scenes.

There is so much ground to explore here that it’s hard to pick a place to start.  Right now I’m sitting in a hotel room with a few days on a mine site ahead of me so I’ll just jump right in where we sort of left off with Iran being the hinge for Middle East peace.

In The Take Down of George Soros – Part Two we explored how America requires a steady supply of heavy crude for its refineries on the Gulf Coast.  The petrodollar arrangement with Saudi Arabia provided support to both the dollar reserve system and the need for heavy crude.  Iran, being organic enemies with the House of Saud was the odd man out on these arrangements and positioned itself geopolitically to align with partner Russia.

The sides begin to make more sense when we consider them through the lens of crude exports.

The hard stance Trump is taking on China stands in contrast to the approach which is being used with Russia.  But when we consider that China imports a huge amount of its crude from Saudi Arabia we can begin to understand some of the geopolitics.

Russia is aligned with Iran.  Saudi Arabia supports ISIS.  Russia is taking on ISIS.  China imports crude from Saudi.  Trump is in agreement with Putin and pushing hard on China.  Russia and America will finish off ISIS together.  This means Russia and America will take out the House of Saud.  Which means China will need to find another reliable supplier of crude.

Here are China’s recent import statistics:

  1. Saudi Arabia: $20.8 billion (down -46.7%)
  2. Russia: $17.2 billion (up 5.7%)
  3. Angola: $15.9 billion (down -35.9%)
  4. Oman: $14 billion (up 1.1%)
  5. Iraq: $12.7 billion (up 21.4%)
  6. Iran: $10.7 billion (down -50.8%)
  7. Kuwait: $5.7 billion (down -22.3%)
  8. Brazil: $5.3 billion (up 8.6%)
  9. United Arab Emirates: $5.1 billion (down -7%)
  10. Venezuela: $5.1 billion (down -30.3%)
  11. Colombia: $3.1 billion (up 92.2%)
  12. Sudan (North + South): $2.9 billion (down -69.4%)
  13. Congo: $2.3 billion (down -46.9%)
  14. Kazakhstan: $1.9 billion (down -78.7%)
  15. Australia: $1 billion (down -69.4%)

Some interesting assumptions can be made from this list but we don’t have time right now.

Trump could very well be positioning negotiations to get China to stop importing crude from Saudi Arabia altogether.  This would leave the kingdom extremely isolated economically and geopolitically and would hasten its internal collapse.

To support this line of reasoning we see that China began importing from America last year when the crude exporting ban was lifted.  We said back then that the lifting of this ban meant the end of the petrodollar arrangement and it would appear that that is the case.

You can see the strategy where a Trump administration would trade some influence in the South China Sea to ensure China has to rely on America for crude imports.  It’s a security trade off which could very well benefit both of the largest economies on Earth.

Iran could also provide more crude to China which would create one massive energy arrangement between America, China, Russia, Iran, and other players around the world, including a new government in Venezuela.  A reader had asked me to write something on South America.  I haven’t forgotten.  Please consider this a lead in to a broader article.

The people which have been picked to lead the Trump administration should be considered a part of a new and emerging deep state and establishment which is implementing a well-planned and strategized transformation of the world and its energy geopolitics.

The world is changing faster than any of us considered possible.  Expect to see broader monetary discussions, including the role of the SDR, once some of the energy and associated geopolitics are sorted out.  Can’t put the fuel before the crude.  – JC