The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia’s most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy?
Archive for March 23, 2012
From The Obama File
In an interview last night with CNN’s Soledad O'Brien, the slimy Ground Zero Imam, Abdul Rauf, threatened violence against America and Americans if the Islamic victory mosque is not built at Ground Zero.
Rauf, a supporter of the Iranian revolution, says the reason he can’t move the Islamic center now is because of national security concerns, saying parts of the Muslim world would be violently inflamed at the news of the center’s relocation.
Muslim gang bangers who rape and violently force underage girls into prostitution get Islamic prayer time during the trial? Judge Dhimmi reporting for duty. via Suspects facing trial in sex trafficking ring that included Twin Cities - TwinCities.com.
More than a dozen people accused in a sex trafficking ring run by Somali gangs that reached from Minnesota to Tennessee are facing trial in Nashville.
Union officials take over a hundred dollars in forced union fees from nurse’s paycheck without proper disclosure
Pleasanton, CA -- A Kaiser Pleasanton Clinic nurse has filed federal unfair labor practice charges against a local union for violating her rights.
I’ve mentioned before how I’m proud and lucky to work for the Cato Institute, first and foremost because my colleagues are scrupulously non-partisan. We promote the ideals of freedom and liberty and we’ll work with any politician of any party who happens to be on the right side.