MANNARINO: Middle East War...What It Means for the Market
What this war is really all about is sending a message to the BRICS alliance, and that message is this: DO NOT THREATEN THE U.S. DOLLAR RESERVE STATUS.
By Gregory Mannarino, TradersChoice.net
At 4 p.m. ET, Friday, immediately after the closing bell at the NYSE (as is standard procedure), the U.S. began a heavy military strike against multiple Iranian targets.
Large military strikes are almost NEVER done during market hours—do you really think that is just by coincidence?
I have been warning my audience on YouTube for weeks about how the U.S. strike on Iran would play out.
NEW TRENDS JOURNAL ISSUE IS OUT
I even nailed the timing of the U.S. strike on Iran almost down to the day, saying it would likely happen this weekend. I also predicted the timing of U.S. strikes on Yemen nearly down to the minute, putting out a video that morning which stated in the title that a U.S. strike on Yemen was imminent.
This war has absolutely nothing to do with “retaliatory” strikes for U.S. service members who were killed in Jordan, nor any other attacks on U.S. bases in the area. Nor does it have ANYTHING to do with shipping coming under fire in the Red Sea by so-called Iranian-supported militant groups.
On the 3rd of January 2024, Iran, which is a founding member of OPEC, joined the BRICS alliance. Iran now aligning themselves along with Saudi Arabia with the BRICS alliance presents a direct threat to the U.S. dollar reserve status. AND THAT IS WHAT THIS WAR IS ABOUT.
The US dollar has remained the world reserve currency only because of one thing. And that is an agreement which exists between the U.S. and OPEC nations which guarantees that the U.S. military will protect and defend the oil belonging to OPEC nations.
Ever wonder why there is a large U.S. military presence in the Middle East? It has NOTHING to do with terrorism or stopping terror, it’s about protecting oil.
Within the agreement between the U.S. and OPEC is an accord from OPEC. This accord states: that in return for U.S. military protection of OPEC oil, they would price their oil in U.S. dollars.
Having OPEC price their oil in U.S. dollars was a MASSIVE win for the Federal Reserve, in that now any nation wishing to purchase oil from OPEC would first have to convert their currency into U.S. dollars to purchase oil.
This mechanism, in turn, creates an ever-expanding demand for more U.S. dollars.
However, over the last several years various nations have sidestepped what has become known as the Petrodollar process and have instead been purchasing OPEC oil using their own currency. This therefore has decreased demand for Federal Reserve notes.
From day one, the BRICS alliance has sought to reduce the hegemony of the U.S. dollar on the world stage, which has not gone unnoticed by the Federal Reserve.
What this war is really all about is sending a message to the BRICS alliance, and that message is this: DO NOT THREATEN THE U.S. DOLLAR RESERVE STATUS. A message which is being sent DIRECTLY by the Federal Reserve whose enforcement arm is the U.S. military, including its nuclear arsenal.
The U.S. will never directly or indirectly attack Saudi Arabia, or its interests, so Iran is the target, and the message is clear.