PAKISTAN ALLIES WITH SAUDI ARABIA - OUR FLUCTUATING DOLLAR

Donald Hank writes:

Two items should command your attention today:

1. Pakistan enters the fray in Yemen:

http://in.reuters.com/article/2015/03/30/pakistan-saudi-arabia-yemen-idINKBN0MQ1GB20150330

Pakistan has entered the Yemen conflict on the side of Saudi Arabia. The other side is headed by Iran. For the first time this pits 2 Muslim powers against each other that either have nukes (Pakistan) or are thought to aspire to have them (Iran). Add to this the fact that Iran and Pakistan share a border and you have a situation as volatile and dangerous as we have seen in decades. What happens if Iran escalates and sends MORE troops or its air force gets involved?

And don’t forget that we are in the midst of talks to limit Iran’s nuclear capability. This tiff with its nuclear armed neighbor gives Iran all the more incentive to renege or cheat on whatever non-proliferation agreement is signed between it and the 6 interested parties to the agreement.

2. The fluctuating dollar is wreaking havoc with the stock market

https://finance.yahoo.com/news/2-stocks-beat-dollars-volatile-134501482.html

The stock market looks like a roller coaster. Financial analysts blame the dollar decline on an announced rate hike by the Feds. But is there a link with the fact that almost all of our “allies” have signed on to the new Chinese Investment bank? Could the Fed be hinting at a rate hike as cover? It is hard to avoid this suspicion. The dollar was propped up by the petrodollar agreement with the Saudis but guess who joined the new Chinese bank? That’s right. The Saudis were some of the first on board – followed by most of Europe, Australia, and others. Over 40 countries have signed on, snubbing the US-supported World Bank.

There is now no rational excuse for the US not to join.

Oh, I forgot: we’re exceptional. We might have to put up some of our exceptionality as collateral soon though.

Finally, did you notice that the Saudis are involved in both of these major events? That is partly because the Saudis are rich enough to afford any friend they want. Sadly, they may not want the US as a friend much longer. And also note that whatever affects the Saudis affects Israel in much the same way because they are in fact allies (of the odd couple kind).