While the U.S. fights to protect the petrodollar, Iran tightens its grip, China rewires the payment system… and Europe quietly stops needing oil at all.
Awesome, I think you have something there, all past actions from this administration has been blinking a bright red light on it. " I HATE windmills killing all the birds".
Meanwhile, the middle countries are working on other alternatives without the US. PM Mark Carney is a good example of how he and other countries are quietly creating a new way forward.
Very well written. To me the most astounding part is the total lack of understanding of the Iranians. Nobody expected the Iranians to so capable and resourceful as they have shown to be. USA is in a heap of trouble which will totally change USA. AS for Israel they basically face to disappear as a nation with nowhere to go.
How could the Iranians capabilities not be known when a task force did just that? They were eliminated by a Fox show host. We should all know by now the commander n chief only cares to hear success not what is truth from his advisors. We were the ones kept in the dark.
Some of us did know Iran was not to be trifled with. The ancient Persian Empire never died, it just went underground and kept building. I have immense respect for Iran.
This is one of the best explanations of the US building a system of dominance that has been exposed for it weakness by this president. It also takes understanding of SWIFT that 99% of the population haven't a clue what it is.
As far as the clean energy debate, it takes time to develop new systems that are efficient and environmentally friendly. The 1st Model T Ford rolled out in 1908. That's a 100 years to evolve into today's vehicles. Just because the newst model of iPhone or TV rolls out every couple of years doesn't mean they haven't been in development for years. It's just marketing strategy to keep you upgrading at a higher cost when previous model sales flatline.
That will definitely have an impact on the US economy and I doubt they will recover but the USD transactions are not dead, a lot of long term contracts in place are paid in USD. This weakening may however see other changes like trading blocks like CPTPP and EU could decide to trade at least partially in Euro while the BRICS may favor the Yuan.
However, oil is not dead, while Europe wants to transition to renewables, the millions of cars, vehicles, planes still need to use oil based fuel to operate, homes and industries cannot quickly change their heating and industrial processes overnight, the transition already started after moving away from Russian oil and gas, it will take time. In addition, oil and gas are used in everything from lubricants to plastics and fertilizers. We can reduce consumption, recycle, etc but we need some oil and gas to make these and many more products including things like solar panels.
The big issues are the duration of the war disruption, the time to rebuild, the damage to the world economy and the social impact that could see the displacement of large populations (Lebanon, Gaza, Iran) and this could also trigger another period of uncertainty and terrorism impacting the life and travel around the world.
I believe one of the underlying reasons for the US invasion of Iraq by the Bush Administration, was that Iraq was pondering the idea of accepting oil payments in Russian Rubles.
It's going to take the state's taking control of their own fate. At least for the remainder of the Prez's term. That will involve trying to claw back the funding that Trump has severed. And digging into reserves. And continuing the fight until this madness is over!
Terrific commentary Fred!! You have no idea how many times this last year I have regretted not walking across the Ambassador Bridge & into Canada when I was still living in the Detroit area.
Ain't it great??? Oil skyrockets in cost, Sparky cancelled all green energy resources, and, from what i see, the US generates the most oil in the world
...any idea why Americans are paying high costs at the pump?????
The final, thrashing demise of the US Dollar as the Global Reserve Currency. For those so inclined, you are witnessing history being made by the fall of a once-great empire. Even I was too young when the Brits went down, so this is new for me as well. Just try to be Canadian - step back as quickly as you can so you don't get any on you. 🍁🍁
Japanese scientists have achieved a historic breakthrough by successfully synthesizing liquid hydrocarbon fuel using only water and carbon dioxide. This innovative process utilizes specialized photocatalysts and renewable energy to mimic natural photosynthesis on an industrial scale. The advancement offers a potential "holy grail" for a nation currently reliant on the Middle East for 90% of its energy.
The timing of this discovery is critical as the ongoing closure of the Strait of Hormuz has forced Japan into the largest emergency oil drawdown in its history. Retail gasoline prices in Tokyo have recently spiked to record highs of over 190 yen per liter. Prime Minister Sanae Takaichi has hailed the technology as a vital pillar for both national security and a future decarbonized society.
Unlike hydrogen, this synthetic fuel can be used in existing engines and distributed through current pipelines without expensive infrastructure overhauls. While mass production was originally slated for 2040, this success suggests the timeline for commercial viability could be moved up significantly. This shift could eventually strip oil-producing regions of their primary economic leverage over global markets.
As the government prepares to increase subsidies for further development, international markets are watching this "water-to-oil" transformation closely. If Japan can achieve cost-effective scaling, it would redefine the global energy landscape and provide a new blueprint for climate action. This breakthrough marks a definitive step toward energy independence for resource-poor nations worldwide.
Europe needs to step in and ensure that oil can be paid for in Euros too. There’s little point in dropping the Dollar in favour of the Yuan as it now cedes power to another superpower who will wield their control just as America has.
Awesome, I think you have something there, all past actions from this administration has been blinking a bright red light on it. " I HATE windmills killing all the birds".
Meanwhile, the middle countries are working on other alternatives without the US. PM Mark Carney is a good example of how he and other countries are quietly creating a new way forward.
You’re seeing the same pattern I am Lynne.
While the noise is all about oil, war, and control… the real shift is happening quietly in the background.
Countries aren’t waiting around anymore... they’re building options.
And Carney’s approach fits that perfectly.
Less chest-thumping, more positioning.
That’s usually how the real moves get made.
Like Trump really cares about the birds!!
There is no old order, thanks to Trump, it was “ruptured.” Mark Carney and the middle power countries are working on a new order, fast. 🇨🇦
I think you’re right about the rupture Caroline.
What’s interesting now is who adapts fastest... not who was dominant before.
That’s where countries like Canada suddenly matter a lot more than people expect.
There are always some confused, clueless folks on every platform! That’s all you MAGATS ever say, Brookfield. 😏
Thanks so much for sharing ❤️
Very well written. To me the most astounding part is the total lack of understanding of the Iranians. Nobody expected the Iranians to so capable and resourceful as they have shown to be. USA is in a heap of trouble which will totally change USA. AS for Israel they basically face to disappear as a nation with nowhere to go.
I think you’re right about one thing...
a lot of people underestimated how capable and adaptable Iran would be.
Where I’d be more cautious is the “endgame” predictions.
These situations tend to shift and evolve in ways nobody fully sees coming.
What does seem clear is that the assumptions people were relying on aren’t holding up the way they used to.
How could the Iranians capabilities not be known when a task force did just that? They were eliminated by a Fox show host. We should all know by now the commander n chief only cares to hear success not what is truth from his advisors. We were the ones kept in the dark.
Some of us did know Iran was not to be trifled with. The ancient Persian Empire never died, it just went underground and kept building. I have immense respect for Iran.
How’s trump going to save face on this one?????
He doesn’t need to save face… he just needs a version of the story that people will believe.
That’s usually how this plays out.
But the other sides are not falling for that grift anymore.
We’ll just have to wait & see what lies he comes up with, what kind of spin.
This is one of the best explanations of the US building a system of dominance that has been exposed for it weakness by this president. It also takes understanding of SWIFT that 99% of the population haven't a clue what it is.
As far as the clean energy debate, it takes time to develop new systems that are efficient and environmentally friendly. The 1st Model T Ford rolled out in 1908. That's a 100 years to evolve into today's vehicles. Just because the newst model of iPhone or TV rolls out every couple of years doesn't mean they haven't been in development for years. It's just marketing strategy to keep you upgrading at a higher cost when previous model sales flatline.
You nailed it.
Most people don’t realize how much of the global system runs through things like SWIFT until something stresses it.
And you’re right on energy too...
these transitions always look slow… until suddenly they’re not.
What we’re seeing now feels like that “acceleration phase” starting to kick in.
That will definitely have an impact on the US economy and I doubt they will recover but the USD transactions are not dead, a lot of long term contracts in place are paid in USD. This weakening may however see other changes like trading blocks like CPTPP and EU could decide to trade at least partially in Euro while the BRICS may favor the Yuan.
However, oil is not dead, while Europe wants to transition to renewables, the millions of cars, vehicles, planes still need to use oil based fuel to operate, homes and industries cannot quickly change their heating and industrial processes overnight, the transition already started after moving away from Russian oil and gas, it will take time. In addition, oil and gas are used in everything from lubricants to plastics and fertilizers. We can reduce consumption, recycle, etc but we need some oil and gas to make these and many more products including things like solar panels.
The big issues are the duration of the war disruption, the time to rebuild, the damage to the world economy and the social impact that could see the displacement of large populations (Lebanon, Gaza, Iran) and this could also trigger another period of uncertainty and terrorism impacting the life and travel around the world.
That’s a grounded take.
Oil isn’t disappearing tomorrow... but the system around it is starting to shift.
And once those shifts lock in (currency, trade blocks, supply chains)… they tend to stick.
I believe one of the underlying reasons for the US invasion of Iraq by the Bush Administration, was that Iraq was pondering the idea of accepting oil payments in Russian Rubles.
You’re not imagining that Ron.
Iraq did move its oil sales away from the dollar before the invasion...
and it got switched right back after.
Whether that was the reason is still debated…
But it definitely wasn’t irrelevant.
It's going to take the state's taking control of their own fate. At least for the remainder of the Prez's term. That will involve trying to claw back the funding that Trump has severed. And digging into reserves. And continuing the fight until this madness is over!
There’s a push for more local control, no question.
But the systems underneath are global… and they don’t shift neatly along state lines.
The states can band together to form a trading coalition. In the interim they gotta realize it's in their best interest.
Terrific commentary Fred!! You have no idea how many times this last year I have regretted not walking across the Ambassador Bridge & into Canada when I was still living in the Detroit area.
Appreciate that, Sherry.
Crossing a bridge is easy…
figuring out where things are heading is the harder part these days.
Ain't it great??? Oil skyrockets in cost, Sparky cancelled all green energy resources, and, from what i see, the US generates the most oil in the world
...any idea why Americans are paying high costs at the pump?????
Because oil isn’t priced locally... it’s priced globally Kay.
You can pump more than anyone else…
but if the global market tightens, you still pay the global price.
That’s the part most people don’t see.
The Tories and Reform need to read this!
Honestly, I think a lot of leaders could benefit from looking at this angle... not just one side.
The shift doesn’t really care about politics… it’s happening anyway.
The final, thrashing demise of the US Dollar as the Global Reserve Currency. For those so inclined, you are witnessing history being made by the fall of a once-great empire. Even I was too young when the Brits went down, so this is new for me as well. Just try to be Canadian - step back as quickly as you can so you don't get any on you. 🍁🍁
History doesn’t usually end with a bang… it drifts, then shifts.
Feels less like a collapse… more like a slow rebalancing.
Still history in the making though.
So… Iran must have read “Art of the Deal” ? Sound like they have the cards, now.
Less about the book… more about the position at the table.
When you control the chokepoint, you don’t need a perfect hand.
Hello Fred, what do you think of Hydrogen fuel?
Hydrogen looks great on paper.
Reality is… it’s still expensive, inefficient, and not as “clean” as advertised yet.
But for certain uses? Could be a big part of the puzzle.
Yes I agree, looks like Japan may have an alternative power supply. Have you seen the big news yet 😳
Japan’s been betting on hydrogen for a while now.
Interesting direction… but it still has to prove it works at scale, not just in headlines.
What caught your eye Lynne?
A little bird 🐦 I will follow up soon
Japanese scientists have achieved a historic breakthrough by successfully synthesizing liquid hydrocarbon fuel using only water and carbon dioxide. This innovative process utilizes specialized photocatalysts and renewable energy to mimic natural photosynthesis on an industrial scale. The advancement offers a potential "holy grail" for a nation currently reliant on the Middle East for 90% of its energy.
The timing of this discovery is critical as the ongoing closure of the Strait of Hormuz has forced Japan into the largest emergency oil drawdown in its history. Retail gasoline prices in Tokyo have recently spiked to record highs of over 190 yen per liter. Prime Minister Sanae Takaichi has hailed the technology as a vital pillar for both national security and a future decarbonized society.
Unlike hydrogen, this synthetic fuel can be used in existing engines and distributed through current pipelines without expensive infrastructure overhauls. While mass production was originally slated for 2040, this success suggests the timeline for commercial viability could be moved up significantly. This shift could eventually strip oil-producing regions of their primary economic leverage over global markets.
As the government prepares to increase subsidies for further development, international markets are watching this "water-to-oil" transformation closely. If Japan can achieve cost-effective scaling, it would redefine the global energy landscape and provide a new blueprint for climate action. This breakthrough marks a definitive step toward energy independence for resource-poor nations worldwide.
#Japan #EnergyBreakthrough #Science #Sustainability #BreakingNews
Europe needs to step in and ensure that oil can be paid for in Euros too. There’s little point in dropping the Dollar in favour of the Yuan as it now cedes power to another superpower who will wield their control just as America has.
Exactly.
Swapping the dollar for the yuan doesn’t remove control… it just changes who’s holding it.
What’s starting to emerge looks less like a replacement… and more like a split system.