The BRICS nations (Brazil, Russia, India, China, South Africa) are putting out a reserve currency. This happened because the UK and US put sanctions against Russia and removed their currency from the SWIFT banking system. Russia could not transact internationally anymore. Therefore, they came out with this BRICS reserve currency, while the US and UK pay for foreign nations to supply them Oil. Because drilling was cut off and energy independence was destroyed recently. As that was going on the Fed raised rates from .75% FFR to 4.0% FFR (Fed Funds Rate). Here is a chart giving details about the BRICS reserve currency:
Bitcoin’s role in this will be for trans-border payments. China and Russia are Bitcoin mining hubs and they both own over 100K Bitcoin in their respective central banks. We know XRP claims to have a role in trans-border payments and international settlements but XRP is centralized. Bitcoin has no counter party risk because it is decentralized. This will all come out later on. A handful of people control XRP. All node operators and miners on the blockchain globally control Bitcoin. That is a massive difference. The only safe and secure method for trans - border payments is Bitcoin!
Now let’s quickly look at the Diesel shortage situation:
“I’m in the inland maritime oil transportation industry, we are extremely busy right now. Nat Gas, Jet Fuels, raffinate (Gasoline blend stock) all being moved when just a few years ago crude was the real mover. Everyday it’s one of these product being transported. Red flag for me”.
Natural Gas, Jet Fuel, and Raffinate are end use fuels, they are not raw materials for refining. Crude Oil is a raw material for refining. Therefore, if a major inland marine transportation company like Stolthaven were to begin shipping only end use fuels in the US, not raw materials. That tells us clearly, that the raw material is in extremely low supply and transportation companies are surviving off of imported, end use fuels. In the past, these were refined in the US, and just the raw materials were imported. That is still happening but if a major inland maritime company has to ship end use fuels. That is a serious problem. We know maritime shipping very well. There should be only Crude being shipped! Not end use fuels. Now understanding that, think about what happens when the SPR (strategic petroleum reserve) is empty! It is down to ~20 days of Diesel left in the SPR, right now. How will food distribution, let alone other types of distribution happen when the shortage worsens? North Carolina and South Carolina along with the North East US have issued warnings already about a Diesel outage in the winter! This will shock the energy supply system and shoot Gas and Diesel prices in a parabolic manner. This will drive inflation like we have never seen in US history! Let’s see how it plays out.
Below are large speculators net longs in WTI (West Texas Intermediate Crude Oil) futures:
All futures bets are going long not short on the WTI. Prices will skyrocket!
Then look at what type of crude is leaving the SPR. Light Sweet Crude is refined for Gasoline. Whereas Medium Sour Crude is refined more for Diesel. We have 29 years experience in Oil and Gas. Mostly in Refineries and maritime shipping at tank terminals on ship channels. We know this business! See this chart below:
Farm equipment, Constuction equipment, and cross country as well as international transportation (Truck, Rail, Tanker ships) all utilize Diesel fuel! This is catastrophic for the US as well as Europe. Since the US is such a large land mass. Depending on how bad the Diesel shortage gets, the US would be hit harder on that. Europe would be hit hard importing Natural Gas and from Russia! Here is another article about the Diesel shortage in the North East:
Depending on the severity of the winter this year. Depending on how low the Diesel stock actually gets this winter. These factors will determine, to a large degree, how bad inflation will be over the next 4 months. We cannot say for sure, but if the shortage gets bad enough, it could hyperinflate the USD. We see Europe as being more vulnerable for that than the US is. Regardless, expect higher inflation, a shortage of food at grocery stores, and high Gas and Diesel prices this winter. Hopefully this change over to a new monetary system (Reserve Currency), will be more painless than we fear. CBDC should be avoided at all cost. Past blogs have detailed that. Look out for more news about Bitcoin used for trans-border payments, or international settlements. 2023 will be a very interesting and historical year. Moreso than 2022 was. We are not financial advisors and this is not financial advise. We know it will look bleak this winter, however, keep heart. A new day will dawn in 2023! We cannot say how it will all shake out. Bitcoin will rise in value in multiple ways. It gives us freedom and sovereignty. We cannot allow ourselves to be slaves, or in bondage, to an outdated debt based monetary system! This must change. The sooner it does, the less pain all of us will feel!
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