A quick bit of 80's Nostalgia:
"Do you come from a land down under?
Where women glow and men plunder?
Can't you hear, can't you hear the thunder?
You better run, you better take cover."
Men At Work
I had written a piece on the effects of economic and political power on our investments for my first piece. However, late last night, I became intrigued by a couple of stories on our US Military actions down under so I've decided to put that piece off to do a bit of speculation on these tantalizing headlines.
Australian War Games: U.S. Military Machine Out Of Control
"The “military machine” of the United States is “out of control” as it is spreading its military tentacles throughout the Asia-Pacific region amid a massive and unprecedented series of war games in Australia, an antiwar activist says. Approximately 20,000 US troops descended on Australia’s east coast for a joint military exercise this week in the biggest such exercise to date."
US, Australian troops build for joint exercise in central Qld
Troop numbers are building in Central Queensland for the biggest bilateral military exercise conducted by Australia and the United States. More than 28,000 troops from the two nations will be involved in Exercise Talisman Sabre over the next three weeks
And this lovely piece of work by the US Military.
US says bombs dropped on Australia reef to avoid boats
The United States military said Monday it had jettisoned four unarmed bombs on Australia's Great Barrier Reef during a training exercise only because civilian boats had strayed into the drop zone.
What's going on here? Well according to Vice Adm. Scott Swift, the U.S. 7th Fleet commander overseeing operation Talisman Saber 2013, the joint war games in the South Pacific are designed to prepare for natural disasters and government relief, or to provide military support, now get this "when a government collapse leads to humanitarian need" Anybody get a feeling that Adm. Swift is a bit of a snake oil salesman MOPING the presence of US troops in one of the most stable countries in the world. I'm fairly certain that the Aussies are quite capable of handling their own humanitarian and disaster relief needs.
Now let's look at some parallel stories over in the Asia-Pacific region. According to the New York Times, only two weeks earlier China announced, an unprecedented naval exercise with the Russian navy in the Sea of Japan, under military deploying antimissile submarines, 7 warships, and an entire flotilla advanced naval weaponry.
China will not stand alone. The Obama administration’s decision to send more military power to Asia is widely interpreted in China as a containment policy, leading in part, some Chinese analysts say, to China’s seeking stronger military and economic relations with Russia, a country it has long regarded with suspicion.
I think we can be certain that China and Russia do not have humanitarian assistance in mind. And back in July, China and India announced for the first time joint naval exercises.
Ok, let's state the obvious: The US doesn't like the idea of China developing unilateral trade agreements with other countries such as Australia, New Zealand, France and a host of South American countries to allow direct conversion and trade with the Chinese yuan. The new BRICS alliance is working overtime to counter the Western elite with a new BRICS bank as a counter move to the IMF. We are seeing an unprecedented financial, military and geopolitical cooperation among the BRICS nations attempting to thwart the continued the Anglo-American financial and military dominance in the Euro/Asian theater.
As Turd has been suggesting, the Chinese are building reserves to build a gold backed currency. I understand that there are some objections to this based upon Chinese liberal monetary policy undermining it's currency. Nobody can claim China is a monetary saint, however, over printing a currency is not the sole criteria for debasement and currency failure. Right now we have Chinese monetary policy being met with broader acceptance of the Yuan contrasting the US Dollar being assaulted from all corners at the world simultaneously as the Fed issues more dollars. The fact that more and more countries are looking at direct trade with China and the Yuan strengthens the currency because at the end of the day it could be argued that there are no strong currencies except those which others are willing to accept.
Now let's add the following article to the equation of speculative reasons why the US might want to keep close tabs on Australia in light of their interest in direct trade with the Yuan. This article was published on Joseph's Farrell's blog so I'm also including his speculation along with the article. I expect that the oil blogosphere is heating up to show how this can't be so and a dozen or more ready to call me a schmuck for remaining on the fence regarding the Peak Oil meme. I get it. We are going dark. And yes, there are smarter, more well informed pundits writing about the situation but us uninformed are a bit slow and enjoying entertaining both ends of the argument.
The Biggest Oil Discovery In 50 Years?
In a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world. Some are calling it the biggest discovery of oil in 50 years. Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometres of land that it owns in the Arckaringa Basin. But that is the minimum number. It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area.
It would also mean that Australia now has more "black gold" than the nations of Iran, Iraq, Canada and Venezuela.