If Tehran ever decided to shut down the Strait of Hormuz – call it the nuclear option – that would trigger a world depression as trillions of dollars of derivatives imploded. The Bank for International Settlements (BIS) counts about $600 billion in total derivatives. Not really. Swiss sources say there are at least 1.2 quadrillion with some placing it at 2.5 quadrillion. That would imply a derivatives market 28 times the world’s GDP. On Hormuz, the shortage of 22% of the world oil supply simply could not be papered over. It would detonate a collapse and cause a market crash infinitely worse than 1933 Weimar Germany.
The bombshell facts were delivered by caretaker Iraqi Prime Minister Adil Abdul-Mahdi, during an extraordinary, historic parliamentary session in Baghdad on Sunday.
Maj. Gen. Qasem Soleimani had flown into Baghdad on a normal carrier flight, carrying a diplomatic passport. He had been sent by Tehran to deliver, in person, a reply to a message from Riyadh on de-escalation across the Middle East. Those negotiations had been requested by the Trump administration.
So Baghdad was officially mediating between Tehran and Riyadh, at the behest of Trump. And Soleimani was a messenger. Adil Abdul-Mahdi was supposed to meet Soleimani at 8:30 am, Baghdad time, last Friday. But a few hours before the appointed time, Soleimani died as the object of a targeted assassination at Baghdad airport.
Let that sink in – for the annals of 21st century diplomacy. Once again: it does not matter whether the assassination order was issued by…
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