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Butifldrm

China threatens the throne of the dollar through the exchange of oil in the golden yuan

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yota691    85,063
 
Agencies - Beijing

A report on China's approach to launching yuan-denominated forward contracts and convertible into gold could help reduce US dollar control over crude pricing.

The Nikkei Asia Review, which published the report, said oil futures would be the first commodity contracts in China open to foreign investment funds and oil companies.

In China's bid to make the new crude contracts more attractive, it plans to make them fully convertible into gold on the Shanghai and Hong Kong exchanges, the report said.

Oil contracts could come into effect by the end of this year, months after the postponement.

Several reports have in recent months sought China to activate future contracts for oil in local currency, at a time when China is the largest importer of oil in the world at the moment, surpassing the United States in the first six months of 2017.

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yota691    85,063

China threatens the throne of the dollar through the exchange of oil in the golden yuan

the source:
  • Dubai Mohammed Abdul Rashid
Date:08 September 2017
image.jpg
 

In a move that could reduce the US dollar's control over crude oil pricing, and in an attempt to change the rules of the game in the global oil and gas market, China is preparing to launch gold futures contracts convertible into gold as Beijing begins to take concrete action to implement its plans announced in advance to buy Its imports of oil in yuan, which is being changed gold, according to the newspaper "Nikkei Asin Review" and will enter into force before the end of this year.

Beijing plans to encourage oil exporters by allowing yuan to be converted into gold in the Shanghai and Hong Kong stock exchanges and another in Budapest, where oil futures will be the first commodity contracts in China open to foreign investment funds and oil companies. China is the first importer of oil Around the world, which will negatively affect the importance of the dollar, which remains the only settlement currency in the world so far.

Experts on the world are currently busy analyzing this very confusing step for the green US currency and threaten to raise it on the one hand. On the other hand, experts consider that the Chinese move allows major oil exporting countries such as Russia and Iran to circumvent any future US sanctions by dealing with yuan instead of The dollar, confirming that "the rules of the global oil game are beginning to change dramatically," and the existence of oil contracts and gold futures linked to the yuan means that users will receive the option to pay gold.

It is worth mentioning that this news is being circulated for about 3 years. The huge oil contracts between Russia and China in 2014 were the beginning of the process of removing the dollar from the global market. However, the new is the confirmation of Beijing this time that the move will be implemented globally before the end of this year, The Chinese government would like the internationalization of the yuan.

And to carry out trade operations through its own currency, especially after being approved as the special drawing rights of the International Monetary Fund, to join the short list of dollars, euros, yen and sterling.

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1lucdog    313

"Once upon a time there was a kingdom that embraced many cultures and countries within it...each had it's own interests which they were free to pursue. Some of the cultures were older and wiser and others were young and impetuous but with a good heart they learned fast the unwritten rules of the kingdom. The game was often rough and tumble and then some times more civil and calm but always there were those who were planning silently to manipulate the game to their own advantage....Gold was the coin of the realm, then it wasn't and then it was again...or was it? British pound sterling, the gold backed dollar , the petro-Dollar, the dinar, the euro and on and on ...Then one manipulator caused a war and devalued one currency and bought it up and replaced it with his own which was now much more valuable. Then he proceeded to run his kingdom into debt knowing that one day in the future he would rebuild the war torn country and revalue its currency beyond his own and pay off all the debt he had incurred living the high life ...Then others found out ...they discovered the plan he inherited from other manipulators from ages past and planned to stop it by returning to a currency that they themselves backed with Gold...Now a new king took the throne of the first country and devised a plan to yet capitalize on the plan from the previous corrupt leaders ... He would guide them into reinstating their former glory and value of their currency, pay off his countries debt, that he inherited, and then reestablish a gold standard of his own to back his countries currency surely this would work...or will it? Can he time it just right and implement it before the ancient wise kingdom of the east slips in their plan? Can the two coexist? Tune in tomorrow same bat time and same bat channel for more question and very few answers, but join us as we cheer our new King on to victory against overwhelming odds...You know it is the stuff of every good story!"

 

https://www.moneymetals.com/news/2017/09/05/china-oil-gold-standard-001150

 

China Puts Oil on a Gold Standard

by: Clint Siegner
 
 Money Metals News Service
 
 September 5th, 2017
 

The Chinese are preparing to launch an oil futures contract denominated in yuan and redeemable in gold. That is very bad news for the petro-dollar and for U.S. hegemony in the oil trade. The ability to sell oil on Chinese exchanges for yuan will take the potency out of U.S. sanctions levied on nations such as Russia and Iran.

Gold in China

The gold backing of those contracts figures to lure participants from around the globe – even those with strong ties to the U.S. This additional enticement will go a long way toward allaying concerns of those who may see the dollar as superior to the yuan in trade.

The move is another sign of the Chinese commitment to ending the dollar’s reign as the world reserve currency.

The oil contract, to be traded on the Shanghai International Energy Exchange, will be the China’s first futures contract which is open to international firms for trading. There is no official word on when the contract will launch, but testing has been underway since July.

 
Clint Siegner
About the Author:
Money Metals News Service

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

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alreis    238

When the petro dollar come about we were very dependent on Middle East supply. Today we have our own oil. 

The reserve currency issue comes down to dealing with China or USA, pick your demon.

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Butifldrm    5,698

Mnuchin Threatens More Sanctions on China Over North Korea

By 
Saleha Mohsin
 and 
Arit John
September 12, 2017, 11:18 AM CDT September 13, 2017, 2:15 AM CDT
  • Treasury secretary invokes potential ban from ‘dollar system’
  • He urges obeying ‘historic’ new United Nations sanctions
Treasury Secretary Steven Mnuchin warned the U.S. may impose additional sanctions on China -- potentially cutting off access to the U.S. financial system -- if it doesn’t follow through on a fresh round of United Nations restrictions against North Korea.
 

The UN Security Council added new sanctions against North Korea after leader Kim Jong Un’s regime conducted its sixth and most powerful nuclear test. Mnuchin echoed the U.S. envoy to the UN, Nikki Haley, in calling the sanctions “historic” even though they didn’t include U.S. demands for a full oil embargo and a freeze on Kim’s assets. The new measures include limiting North Korea’s imports of petroleum products and banning textile exports.

 

“If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system -- and that’s quite meaningful,” Mnuchin said during an event at CNBC’s Delivering Alpha conference in New York on Tuesday.

 

The Treasury Department under President Donald Trump has broadened its reach on North Korea by slapping sanctions against Chinese individuals and entities it has accused of helping Pyongyang’s development of nuclear weapons and ballistic missiles.

 

“North Korea economic warfare works,” Mnuchin said. “We sent a message that anybody that wanted to trade with North Korea -- we would consider them not trading with us.”

China’s Ministry of Commerce said it wouldn’t immediately comment on the threat of fresh measures. The People’s Bank of China said this week that it has ordered domestic banks to suspend opening or changes to accounts for clients on the UN sanction list and also prohibited other financial services for those clients.

"The premise is problematic, as China has executed all UN sanctions on North Korea," said He Weiwen, a senior fellow at the Center for China and Globalization in Beijing and a former official at the Ministry of Commerce, calling Mnuchin’s remarks "pure bluff."

Trump is said to plan a visit to China in November. China’s State Councilor Yang Jiechi told U.S. Secretary of State Rex Tillerson on Tuesday that the Asian nation is looking for "positive" achievements during the visit, and again called for efforts to seek cooperation and manage differences, according to a Ministry of Foreign Affairs statement on Wednesday.

Follow the Trump Administration’s Every Move

Small Step

On Tuesday, Trump appeared to downplay the significance of the UN sanctions.

“We think it’s just another very small step,” Trump told reporters at the White House one day after the Security Council’s unanimous vote. “Not a big deal. Not big. I don’t know if it has any impact but certainly it was nice to get a 15-to-nothing vote. But those sanctions are nothing compared to what ultimately will have to happen.”

At a hearing of the House Foreign Affairs Committee on Tuesday, Republican Chairman Ed Royce said the U.S. should target major Chinese banks, including Agricultural Bank of China Ltd. and China Merchants Bank Co., for aiding Kim’s regime.

800x-1.png

Russia also came in for criticism. Assistant Treasury Secretary Marshall Billingslea said in prepared remarks to the committee that North Korean bank representatives “operate in Russia in flagrant disregard of the very resolutions adopted by Russia at the UN.”

While China and Russia supported the latest UN sanctions, officials made clear they were troubled by Haley’s comments in the Security Council that the U.S. would act alone if Kim’s regime didn’t stop testing missiles and bombs. They emphasized the world body’s resolution also emphasized the importance of resolving the crisis through negotiations.

“The Chinese side will never allow conflict or war on the peninsula,” Foreign Ministry spokesman Geng Shuang said in a statement on Tuesday.

Read More: China and Russia Warn U.S. Against Regime Change

China and Russia -- North Korea’s biggest economic patrons -- share the view that North Korea won’t give up nuclear weapons without security guarantees, and they don’t see the point in fomenting a crisis on their borders that benefits American strategic goals. They also don’t want Kim provoking the U.S. into any action that could destabilize the region.

“Sanctions of any kind are useless and ineffective,” Russian President Vladimir Putin told reporters earlier this month at a summit in Xiamen, China. “They’ll eat grass, but they won’t abandon their program unless they feel secure.”

— With assistance by Jeff Black, Kambiz Foroohar, Ting Shi, David Tweed, and Miao Han

 

https://www.bloomberg.com/news/articles/2017-09-12/mnuchin-threatens-financial-sanctions-on-china-over-north-korea

Edited by Butifldrm
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Butifldrm    5,698

US threatens action against China if it doesn't follow new North Korea sanctions

'If China doesn't follow these sanctions, we will put additional sanctions on them', Mr Mnuchin said

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The Independent US
 

steven-mnuchin.jpg Treasury Secretary Steven Mnuchin arrives for a closed-door meeting with Speaker of the House Paul Ryan and House Republicans on September 8, 2017 AP

China has been warned that it could face further sanctions from the US if it does not abide by new United Nations sanctions placed on Kim Jong-un’s regime, Treasury Secretary Steven Mnuchin has said. 

The UN Security Council unanimously voted this week to ratchet up sanctions on North Korea following its sixth and largest nuclear test, although the penalties fell short of the sweeping sanctions the Trump administration had demanded.

Both Russia and China, North Korea’s main economic ally, had opposed the US’s call for an oil embargo and other far-reaching sanctions. 

The new penalties include a ban on the sale of natural gas to North Korea and limits the amount of refined petroleum sales to the country to two million barrels per year. China,  supplies most of North Korea's crude oil. 

“If China doesn't follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system, and that's quite meaningful,” Mr Mnuchin said, adding that “economic warfare works”. 

Nikki Haley, the US’s ambassador to the UN, on Monday cast the new sanctions as a victory and credited Donald Trump’s relationship with his Chinese counterpart, Xi Jinping, as a reason why the 15 council members were able to approve tougher penalties. 

“We don't take pleasure in further strengthening sanctions today. We are not looking for war,” Ms Haley said. 

“The North Korean regime has not yet passed the point of no return,” she added. “If North Korea continues its dangerous path, we will continue with further pressure. The choice is theirs.” 

Kim Jong-un inspects weapon North Korea says is powerful hydrogen bomb

In his remarks, China’s UN ambassador Liu Jieyi cautioned the US against efforts at “regime change” and the use of military force. “China will continue to advance dialogue,” he said.

North Korea's ambassador to the UN, Han Tae Song, told a conference in Geneva: “The forthcoming measures by DPRK [the Democratic Republic of Korea] will make the US suffer the greatest pain it has ever experienced in its history.”

Sanctions approved by the UN Security Council in August were already estimated to slash North Korea’s $3 billion annual export revenue by a third. 

Mr Trump praised China and Russia for backing those sanctions last month, but said that China could be doing more to help the US rein in North Korea. 

He previously suggested that that if China does so, he may change his views on trade between Americans and the Chinese – a topic which he has constantly said he will do something about. 

“We lose hundreds of billions of dollars a year on trade with China,” Mr Trump said in August, referring to the large US-China trade deficit, which he has repeatedly railed against. “They know how I feel. It’s not going to continue like that. But if China helps us, I feel a lot differently toward trade, a lot differently toward trade.”

 

http://www.independent.co.uk/news/world/americas/us-politics/north-korea-sanctions-china-us-warning-economic-warfare-latest-updates-a7943286.html

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Butifldrm    5,698

Putin Orders End To US Dollar Trade At Russian Seaports

 
 
Tyler Durden's picture
Sep 19, 2017 4:10 PM
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Whether in response to rising scorching tensions with the US, or simply to provide support for the ruble, on Tuesday Russian President Vladimir Putin instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, RT reported citing the Kremlin website.

The head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned. So, in order to "protect the interests" of dockworkers and their complyees with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements.

novorossiysk_0.jpg
The commercial sea port of Novorossiysk

The proposal to switch port tariffs to rubles was first proposed by Putin a year and a half ago, but it was mothballed only to pick up speed again in recent days.

Originally, the idea was rejected by large transport companies, which said they prefer to keep revenues in dollars and other foreign currencies due to sharp fluctuations on the volatile ruble. However, the Russian anti-trust watchdog said the decision would force foreigners to buy Russian currency, which would stabilize rates and be good for the ruble.

In 2016, Artemyev's agency filed several lawsuits against the largest Russian port group NMTP.

 
 

According to FAS, the group of companies set tariffs for transshipment in dollars and raised tariffs from January 2015 "without objective grounds."

 

The watchdog ruled that NMTP abused its dominant position in the market and imposed a 9.74 billion rubles fine, or about $165 million at the current exchange rate. The decision was overturned by a court in Moscow in July this year.

While Russia's stated motive for the unexpected redenomination of trade at some of its largest trading hubs has to do with domestic economic policies, there is speculation that the timing of this decision has been influenced by the recent diplomatic fallout between the US and Russia, the result of which would be an heightened demand for the ruble, especially since it is rather complicated to find alternative sources for Russia's largest export by a wide margin: crude.

And while it is still early to discuss whether Moscow has launched the "Petrorouble", Putin's rejection of the Petrodollar in yet another aspect of economic life will raise quite a few eyebrows around the globe.

http://www.zerohedge.com/news/2017-09-19/putin-orders-end-us-dollar-trade-russian-seaports

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Butifldrm    5,698

Putin orders to end trade in US dollars at Russian seaports

Published time: 19 Sep, 2017 13:41
Putin orders to end trade in US dollars at Russian seaports
Novorossiysk commercial sea port © Vladimir Astapkovich / Sputnik
16K101
Russian President Vladimir Putin has instructed the government to approve legislation making the ruble the main currency of exchange at all Russian seaports by next year, according to the Kremlin website.

 

To protect the interests of stevedoring companies with foreign currency obligations, the government was instructed to set a transition period before switching to ruble settlements.

According to the head of Russian antitrust watchdog FAS Igor Artemyev, many services in Russian seaports are still priced in US dollars, even though such ports are state-owned.

The proposal to switch port tariffs to rubles was first proposed by the president a year and a half ago. The idea was not embraced by large transport companies, which would like to keep revenues in dollars and other foreign currencies because of fluctuations in the ruble.

Artemyev said the decision will force foreigners to buy Russian currency, which is good for the ruble.

In 2016, his agency filed several lawsuits against the largest Russian port group NMTP. According to FAS, the group of companies set tariffs for transshipment in dollars and raised tariffs from January 2015 "without objective grounds."

The watchdog ruled that NMTP abused its dominant position in the market and imposed a 9.74 billion rubles fine, or about $165 million at the current exchange rate. The decision was overturned by a court in Moscow in July this year.

 

https://www.rt.com/business/403804-russian-sea-ports-ruble-settlements/

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Butifldrm    5,698

The Petrodollar Is Under Attack: Here's What You Need To Know

 
 
Tyler Durden's picture
Sep 21, 2017 4:25 PM
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Authored by Darius Shatahmasebi via TheAntiMedia.org,

Once upon a time, the U.S. dollar was backed by the gold standard in a framework that established what was known as the Bretton-Woods agreement, made in 1944. The dollar was fixed to gold at a price of $35 an ounce, though the dollar could earn interest, marking one notable difference from gold.

The system ended up being short-lived, as President Richard Nixon announced that the U.S. would be abandoning the gold standard in 1971. Instead, the U.S. had other plans for the future of global markets.

As the Huffington Post has explained, the Nixon Administration reached a deal with Saudi Arabia:

 
 

“The essence of the deal was that the U.S. would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in U.S. dollars.”

This system became known as the Petrodollar Recycling system because countries like Saudi Arabia would have to invest excess profits back into the U.S. It didn’t take long for every single member of OPEC to start trading oil in U.S. dollars.

A little-known economic theory, rejected by the mainstream, stipulates that Washington’s stranglehold over financial markets can be at least partially explained by the fact that all oil exports are conducted in transactions involving the U.S. dollar. This relationship between oil and currency arguably gives the dollar its value, as this paradigm requires all exporting and importing countries to maintain a certain stock of U.S. dollars, adding to the dollar’s value. As Foreign Policy – a magazine that rejects the theory – explains:

 
 

“It does matter slightly that the trade typically takes place in dollars. This means that those wishing to buy oil must acquire dollars to buy the oil, which increases the demand for dollars in world financial markets.”

The term “those wishing to buy oil” encompasses almost every single country that does not have an oil supply of its own – hardly a trivial number. An endless demand for dollars means an endless supply, and the United States can print as much paper as it wants to account for its imperial ambitions. No other country in the world can do this.

In 2000, Iraq announced it would no longer use U.S. dollars to sell oil on the global market. It adopted the euro, instead, which was no easy decision to make. However, by February 2003, the Guardian reported that Iraq had netted a “handsome profit” after making this policy change.

Anyone who rejects this petrodollar theory should be able to answer the following question: if currency is not an important factor in America’s imperialist adventures, why was the U.S. so intent on invading a country (based on cold, hard lies), only to make it a priority to switch the sale of oil back to dollars? If they cared so much about Iraq and its people, as we were supposed to have believed, why not allow Iraq to continue netting a “handsome profit”?

In Libya, Muammar Gaddafi was punished for a similar proposal that would have created a unified African currency backed by gold, which would have been used to buy and sell African oil. Hillarious Clinton’s leaked emails confirmed this was the main reason Gaddafi was overthrown, though commentators continue to ignore and reject the theory. Despite these denials, Clinton’s leaked emails made it clear that Gaddafi’s plan for the future of African oil exports was a priority for the U.S. and its NATO cohorts, more so than Gaddafi’s alleged human rights abuses. This is the same Hillarious Clinton who openly laughed when Gaddafi was sodomized and murdered, displaying no regrets that she single-handedly plunged a very rich and prosperous nation into a complete state of chaos.

At the start of this month, Venezuela announced it would soon “free” itself from the dollar. Barely a week or so later, the Wall Street Journal reported that Venezuela had stopped accepting dollars for oil payments in response to U.S. sanctions. Venezuela sits on the world’s largest oil reserves. Donald Trump’s threats of unilateral military intervention — combined with the CIA’s admission that it will interfere in the oil-rich country — may make a lot more sense in this context.

Iran has also been using alternative currencies  — like the Chinese yuan — for some time now. It also shares a lucrative gas field with Qatar, which could be days away from ditching the dollar, as well. Qatar has reportedly already been conducting billions of dollars’ worth of transactions in the yuan. Just recently, Qatar and Iran restored full diplomatic relations in a complete snub to the U.S. and its allies. It is no surprise, then, that both countries have been vilified on the international stage, particularly under the Trump administration.

In the latest dig to the U.S. dollar and global financial hegemony, the Times of Israel reported that a Chinese state-owned investment firm has provided a $10 billion credit line to Iranian banks, which will specifically use yuan and euros to bypass U.S.-led sanctions.

Consider that in August 2015, then-Secretary of State John Kerry warned that if the U.S. walked away from the nuclear deal with Iran and forced its allies to comply with U.S.-led sanctions, it would be a “recipe, very quickly…for the American dollar to cease to be the reserve currency of the world.”

Iran, bound to Syria by a mutual-defense pact, was reportedly working to establish a natural gas pipeline that would run through Iraq and Syria with the aim of exporting gas to European markets, cutting off Washington and its allies completely. This was, of course, in 2009 — before the Syrian war began. Such a pipeline deal, now with Russia’s continued air support and military presence, could entail the emergence of a whole new market that could easily be linked to the euro, or any other currency for that matter, instead of the dollar.

According to Russian state-owned outlet RT, the Kremlin’s website announced Tuesday that Russian President Vladimir Putin has also instructed the government to approve legislation to ditch the U.S. dollar at all Russian seaports by next year.

Further, the Asia Times explains that Putin dropped an enormous “bombshell” at the recent BRICS summit in Xiamen early September, stating:

 
 

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.” [emphasis added]

According to the Asia Times author, the statement was code-speak for how BRICS countries will look to bypass the U.S. dollar as well as the petrodollar.

China is also on board with this proposal. Soon, China will launch a crude oil futures contract priced in Chinese yuan that will be completely convertible into gold. As reported by the Nikkei Asian Review, analysts have called this move a “game-changer” for the oil industry.

Both Russia and China have been buying up huge quantities of gold for some time now. Russia’s present gold reserves would back 27 percent of the narrow ruble money supply – far in excess of any other major country. The United States’ Federal Reserve admitted years ago that they haven’t held any gold for a very long time.

China is also implementing a monumental project, known as the Silk Road project, which is a major push to create a permanent trade route connecting China, Africa, and Europe. One must wonder much control over these transactions will the U.S. have.

These are just a few of the latest developments that have affected the dollar.

20170921_petro_0.jpg

Can those continue to reject this petrodollar-related theory answer the following questions with confidence: Is it a coincidence that all of the countries listed above as moving away from the dollar are long-time adversaries of the United States, including the ones that were invaded? Is it a coincidence that Saudi Arabia gets a free pass to commit a host of criminal actions as it complies with the global financial order? Are Saudi Arabia’s concerns with Qatar really rooted in the latter’s alleged funding of terror groups even though Saudi Arabia leads the world in funding the world’s most vile terror groups?

Clearly, there is something far more sinister at play here, and whether or not it is tied solely to a deranged, psychopathic currency warfare will remain to be seen. The evidence continues to show, however, that the U.S. dollar is slowly being eroded piece by piece and ounce by ounce — and that as these adversarial countries make these developments in unison, there appears to be little the U.S. can do without risking an all-out world war.

 

 

http://www.zerohedge.com/news/2017-09-21/petrodollar-under-attack-heres-what-you-need-know

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