As China ‘Buys Low’ To Build SPR, Washington Forced To Sell Strategic Crude To Meet Budget

The signs of regime change are everywhere. From embarrassment by Russia’s success in Syria to China’s creation of its own ‘World Bank’ and SWIFT alternative, the trend of de-empirization are growing, but tonight’s news that Washington will sell oil from its strategic reserve in order to meet budget constraints and avoid default (as China takes advantage of low prices to build its own reserves) is simply stunning in its analogy of the shifting world order.

As CNN reports,

Bipartisan congressional leaders and the White House struck a major fiscal deal in principle Monday that would raise the debt ceiling and lift budget caps on both defense and domestic programs, according to congressional sources familiar with the deal.

This deal would avoid a potential debt default on November 3, and it would reduce the chances of a government shutdown on December 11.

The deal includes $80 billion in increased defense and domestic spending over two years‎, a senior House source told CNN.

That new spending would be offset by sales from the strategic petroleum oil reserve, use of public airwaves for telecommunications companies and changes to the crop insurance program — among other measures. Moreover, the deal would spread out increases in Medicare premiums over time so beneficiaries don’t feel them acutely. It would also aim to preserve the Social Security disability trust fund, sources said.

Conservatives sharply panned the deal.

“It’s emblematic of five years of failed leadership,” said Rep. Justin Amash, R-Michigan.

So, to summarize, ‘Murica – the world’s reserve currency superpower and “cleanest dirty sheet in a brothel” economy is about to sell its “strategic” petroleum reserves at multi-year low prices in order to meet an ever-expanding welfare state’s needs…

Click on image to enlarge

As China “buys low” adding to its reserves amid the multi-year low prices…

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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