It's On: Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan

Zerohedge ^ | 4-10-2014 | Tyler Durden

[tcrlaf]

Curious what the fate of the petrodollar is? Look no farther than this Interfax update blasted moments ago by Bloomberg: "Gazprom Considers 'Symbolic' Yuan Bond Issue, Interfax Says."

Bloomberg adds that the gas giant is considering proposals from potential organizers to market bonds in yuan, Interfax reports, citing people with knowledge of the matter.

-Gazprom unlikely be able to gain more than $300m due to mkt volume, newswire reports -No mandates, deal timeline yet -Issue may add new investors, become a “topical” public relations act amid tensions with U.S., EU

Well, yes. It's called "symbolic" for a reason. More importantly, it is a symbol of what happens when one can "create" money de novo without the presence of the world's increasingly defunct reserve currency, either secured by gas or by future cash flows, i.e., unsecured.

[tcrlaf]

Now it becomes a full-scale economic war. This is the "Big Gun" the Russians and Chinese can use against us. And it could be far more damaging than any non-nuclear weapon.

[Obadiah]

Please elaborate/clarify.

[Psalm 144]

“Sun Tzu said: In the practical art of war, the best thing of all is to take the enemy’s country whole and intact; to shatter and destroy it is not so good. So, too, it is better to recapture an army entire than to destroy it, to capture a regiment, a detachment or a company entire than to destroy them.”

Of course, this is what the neocons have always been about. For the first time, they are now meeting credible opposition.

[jiggyboy]

“Symbolic”, hah. It’s nothing less than what people in manufacturing would call a pilot project — all the procedures needed, just at a small scale.

[tcrlaf]

It is a loud and clear message to the G20 meeting about the future of the US Petrodollar.

[Zhang Fei]

Tyler Durden obviously believes our First World status relies on having a military that's big enough to throw its weight around - an outgrowth of Russian propaganda about the US being an overweening Western imperialistic power that claws unearned tribute from its vassal states. The funny thing about this view is that it has since become conventional wisdom. I suspect the antidote is on its way. As we drastically lower our defense expenditures in response to continued jeering by our military dependents allies coupled with their feckless, non-existent defense policies, and revert to our pre-WWI status of armed neutrality a century ago, it will become clear that our foreign military entanglements were a net liability to our economy.

[Night Hides Not]

Frack, baby, frack...drill, baby, drill. Cry havoc, and let slip the dogs of American fossil fuels.

[tcrlaf]

“Frack, baby, frack...drill, baby, drill.”

Reagan destroyed the Soviet Union by aligning with the Saudi’s to lower the price of energy to a level that the Russians couldn’t compete with.

Obama supposedly tried to do the same thing last week, during his visit to Saudi.

Which most likely explains why the price of gas at my local station went UP 50 cents this week.

[alloysteel]

A little trouble with Big China.

When the dollar (whether backed by “petros” or not) has lost so much support among several trading powers, the end of the “reserve” status for the dollar is near. That the Chinese have a more stable currency than the currency now in use in the territory once known as “the United States of America”, only shows how much the “soft money” policy of the Current Regime has eroded the overall influence of the this tormented land.

Nuclear weapons are so unsophisticated.

[DoodleDawg]

Bloomberg adds that the gas giant is considering proposals from potential organizers to market bonds in yuan, Interfax reports, citing people with knowledge of the matter

Due to lack of faith in the dollar? Or lack of faith in the ruble?

[griswold3]

‘Due to lack of faith in the dollar? Or lack of faith in the ruble?’
Interesting way to look at it. Using just the ruble, wouldn’t encourage China to play. But if both agreed to the yuan, would they gang up on the US to make a point? Remember China hold much US debt. Things that make you go hmmmm.

[Beagle8U]

And the stock market is crashing this very min!

[griswold3]

Looks like they fall on the ‘lost faith in the dollar’ crowd. Hmmm..

[Natufian]

That might have been true if Zerohedge didn’t have a history of unfulfilled catastrophism.