China Moves on New World Order: Will Buy Oil With Gold-Backed Currency—Bypassing US Petrodollar

In a direct challenge to U.S. imperialism, China’s yuan-denominated contracts – backed by gold -will let oil exporting countries bypass using the U.S. petrodollar.

Typically, crude oil is priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

The move by the Chinese will allow oil exporting countries such as Iran and Russia to bypass U.S. sanctions by trading in yuan instead of U.S. dollars. The move is a direct result of the U.S. proclivity to use the dollar as a weapon against countries that refuse to bend to the imperial will of the United States. To make the yuan denominated contracts more appealing, China intends to make the yuan fully convertible to gold on the Shanghai and Hong Kong exchanges.

“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT.

According to a report by OilPrice.com:

Last month, the Shanghai Futures Exchange and its subsidiary Shanghai International Energy Exchange, INE, successfully completed four tests in production environment for the crude oil futures, and the exchange continues with preparatory works for the listing of crude oil futures, aiming for the launch by the end of this year.

Yuan-backed oil and gold futures mean that users can be paid in physical gold, said Alasdair Macleod, head of research at Goldmoney, a gold-based financial services company based in Toronto.

While some potential foreign traders have expressed reservations that the contract would be priced in yuan, according to analysts who spoke to Nikkei Asian Review, backing the yuan-priced futures with gold would be appealing to oil exporters — especially to those that would rather avoid U.S. dollars in trade.

“It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either,” Macleod said.

These recent moves by the Chinese are part of a larger de-dollarization strategy by other world powers intent on creating a more multipolar global framework.

As we reported in July, the formation of a BRICS gold marketplace, which could bypass the U.S. Petrodollar in bilateral trade, continues to take shape as Russia’s largest bank, state-owned Sberbank, announced that its Swiss subsidiary had begun trading in gold on the Shanghai Gold Exchange.

Russian officials have repeatedly signaled that they plan to conduct transactions with China using gold as a means of marginalizing the power of the dollar in bilateral trade between the geopolitically powerful nations. This latest movement is quite simply the manifestation of a larger geopolitical game afoot between great powers.

report by the Centre for Research on Globalization clarifies the implications of these most recent moves by the Russians and the Chinese in an ongoing drive to replace the US petrodollar as the global reserve currency:

Fast forward to March 2017; the Russian Central Bank opened its first overseas office in Beijing as an early step in phasing in a gold-backed standard of trade. This would be done by finalizing the issuance of the first federal loan bonds denominated in Chinese yuan and to allow gold imports from Russia.

The Chinese government wishes to internationalize the yuan, and conduct trade in yuan as it has been doing, and is beginning to increase trade with Russia. They’ve been taking these steps with bilateral trading, native trading systems and so on. However, when Russia and China agreed on their bilateral US$400 billion pipeline deal, China wished to, and did, pay for the pipeline with yuan treasury bonds, and then later for Russian oil in yuan.

This evasion of, and unprecedented breakaway from, the reign of the US dollar monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese yuan for gold. The Russians are already taking Chinese yuan, made from the sales of their oil to China, back to the Shanghai Gold Exchange to then buy gold with yuan-denominated gold futures contracts – basically a barter system or trade.

The Chinese are hoping that by starting to assimilate the yuan futures contract for oil, facilitating the payment of oil in yuan, the hedging of which will be done in Shanghai, it will allow the yuan to be perceived as a primary currency for trading oil. The world’s top importer (China) and exporter (Russia) are taking steps to convert payments into gold. This is known. So, who would be the greatest asset to lure into trading oil for yuan? The Saudis, of course.

All the Chinese need is for the Saudis to sell China oil in exchange for yuan. If the House of Saud decides to pursue that exchange, the Gulf petro-monarchies will follow suit, and then Nigeria, and so on. This will fundamentally threaten the petrodollar.

“In 2014 Russia and China signed two mammoth 30-year contracts for Russian gas to China. The contracts specified that the exchange would be done in Renminbi [yuan] and Russian rubles, not in dollars. That was the beginning of an accelerating process of de-dollarization that is underway today,”according to strategic risk consultant F. William Engdahl.

Russia and China are now creating a new paradigm for the world economy and paving the way for a global de-dollarization.

“A Russian-Chinese alternative to the dollar in the form of a gold-backed ruble and gold-backed Renminbi or yuan, could start a snowball exit from the US dollar, and with it, a severe decline in America’s ability to use the reserve dollar role to finance her wars with other peoples’ money,”Engdahl concludes.

http://wakingtimesmedia.com/china-moves-new-world-order-will-buy-oi...

Views: 19

Reply to This

Replies to This Discussion

The upside of this is that the U.S. is now 2nd in the world in oil production.

So, let the Chinese buy our oil, pay us in gold.

What's wrong with that scenario. The gold is worth more, and we win.

https://www.eia.gov/todayinenergy/detail.php?id=26352

The truth of the economic matter is the following:

China KNOWS they need the U.S.A. MORE than America needs them. If America no longer buys Chinese (crap) products, their precarious economy would simply collapse. Would they, as a nation that has finally achieve world economic success, dare to throw America under the bus? Would they just kill their golden goose. It's very doubtful.

That was my thinking.........glad somebody agrees with me  ;o)

RSS

LIGHTER SIDE

ALERT ALERT

Congressman Calls Trump ‘Psychopath’
For Saying Out Loud What Rational-Minded Americans
Are Thinking About FBI

Democrats have become so unhinged over their hatred for President Donald Trump that they think nothing of calling the commander in chief a “psychopath.”

Case in point, U.S. Rep. Ruben Gallego, D-Ariz., who took great exception to Trump saying out loud what most rational minded Americans are already thinking when it comes to the FBI.

The president took to Twitter on Saturday to state the obvious, that it’s unacceptable that the FBI failed to follow up on a credible tip about the Parkland, Fla., high school gunman who killed 17 people, and that the bureau has been too distracted in “trying to prove Russian collusion with the Trump campaign.”

“Very sad that the FBI missed all of the many signals sent out by the Florida school shooter. This is not acceptable. They are spending too much time trying to prove Russian collusion with the Trump campaign – there is no collusion. Get back to the basics and make us all proud!,” Trump tweeted. 
Donald J. Trump Very sad that the FBI missed all of the many signals sent out by the Florida school shooter. This is not acceptable. They are spending too much time trying to prove Russian collusion with the Trump campaign - there is no collusion. Get back to the basics and make us all proud! 

 The FBI released a statement acknowledging that protocols were not followed when the tip that may have saved 17 lives was recieved.

“On January 5, 2018, a person close to Nikolas Cruz contacted the FBI’s Public Access Line (PAL) tipline to report concerns about him,” the bureau said in a statement. “The caller provided information about Cruz’s gun ownership, desire to kill people, erratic behavior, and disturbing social media posts, as well as the potential of him conducting a school shooting.”

As for the “signals” the president referenced, the killer could not have screamed his intentions any louder than he did in the weeks leading up to last week’s shooting.

But this proved to be inconsequential to Congressman Gallego, an Iraq War veteran who responded to the president’s post by declaring “America will regret the day you were ever born.”

“You are such a psychopath that you have to make even the death of 17 children about you. America will regret the day you were ever born,” he tweeted. 

You are such a psychopath that you have to make even the death of 17 children about you. America will regret the day you were ever born.

Gallego, who announced in 2016 he was divorcing his wife while she was pregnant with their first child, criticized Trump is a second tweet for commenting on a news conference held by Deputy Attorney General Rod Rosenstein, who said that no Americans had knowledge of the efforts of 13 Russian nationals indicted last week for allegedly meddling in the 2016 presidential election.

The lawmaker noted that “children are being buried today.”

Of course, that didn’t stop the hypocrite from tweeting his support for pro-abortion Democratic women running for office on the same day “children are being buried.”

YES PATRIOT STORE

© 2018   Created by Steve - Ning Creator.   Powered by

Badges  |  Report an Issue  |  Terms of Service