.
Posted on 10/31/2025 6:35:52 AM PDT by delta7
-BHP will begin settling 30% of its iron ore spot trades with Chinese buyers in Yuan starting Q4 2025, marking a historic departure from U.S. dollar pricing. -The move follows pressure from Beijing, signaling China’s strategy to internationalize the RMB and weaken the dollar’s hold over commodity markets. -Australia faces rising concerns over currency risk, trade dependence, and the geopolitical implications of aligning with China’s de-dollarization agenda.
In a landmark move that could reshape global commodity markets and impact iron ore prices,...
(Excerpt) Read more at oilprice.com ...
IMHO it’s a sign that China doesn’t have as much gold as they’ve led us to believe, or they’d use gold as the basis, not iron ore.
China is playing 4D chess while we are fingerpainting.
Makes zero difference. Xi Jinping is a retard. Australian miners will simply throw in a premium for currency risk, and then immediately convert any yuan received to dollars. Third World kleptocracies have previously done similar things with soft currencies like the ruble and the yuan, as well as barter trade in order to mask corrupt payoffs. The reality is that people use the dollar because of the size of the US economy (half again as large as China’s), its lack of capital controls (unlike China) and its predictable government policies. China has a long record of seizing assets of people and countries it doesn’t like. Since large yuan balances would be held in China, that’s a problem. When even a big, well-known Western fund manager has problems getting his money out, you know that Chinese thievery knows no bounds.
https://www.cnn.com/2023/03/06/business/mark-mobius-china-capital-controls
The elementary school grad running China is barely playing tic tac toe, never mind checkers. Chess is a level of abstraction beyond the retard’s abilities. What he doesn’t lack is confidence. The problem with stupid and over-confident people handed a lot of resources, as he was, thanks to China’s massive population, is that they do things that are reckless relative to their endowments. Xi is like a teen given a Lambo for his first car. You know he’s gonna crash it, maybe wrap it around a telephone pole.
China as I see it is doing everything it can to promote de-dollarization, in every sector of finance and trade. The article doesn’t touch on their SGE Gold depositories being built worldwide. Those Gold depositories are to be used as Yuan/ Gold convertibility in trade settlements.
That said, Iron/ steel are war metals. As we know, they also control the rare earths and silver sectors, both critical war metals.
President Trump is obviously well aware, however the time required to get our critical minerals into domestic production will take years. We can only hope the next President has the same mission.
I am disappointed he has not yet done a full audit of our Gold reserves with Gold sales now surpassing US Treasury debt instruments.
Who wants to hold RMB? They are probably selling it as quickly as they get it.
IBTG
IBTS
Can’t argue with anything you said. In addition, thank God China had a maoist retard running the place during our very vulnerable Biden years.
China’s debt to GDP is 3X the US, if you even believe their black box economic stats. China is in a depression right now and instead of trying to fix their plummeting real estate, over leveraging and population implosion, they still think they are the US’s equal and can take us out with their pathetic currency manipulation.
I don’t think Xi is on secure footing if not completely a figurehead by now. He gave Trump everything he wanted after Trump boxed him in with Japan and S. Korean deals.
Been going on for a while but now reached it’s near peek as the Dollar is growing nearly worthless...
I figure Trump discovered all that Gold has long since gone bye-bye...
Who wants to hold RMB?
“https://finance.yahoo.com/news/gold-surpasses-us-treasuries-first-203442334.html
For the first time since the mid-1990s, foreign central banks have held more gold than US treasuries. This milestone shows a significant shift in how global power views safety, liquidity, and trust.
Gold Overtakes US Treasuries for the First Time in 30 Years
Data shared by Barchart confirmed the crossover, with central banks continuing their record-breaking gold buying streak into 2025....”
Been going on for a while but now reached it’s near peek as the Dollar is growing nearly worthless...
That explains why the world’s biggest money, Central Banks, have been ditching the dollar and buying Gold in historic amounts....Tic, Toc, Tic, Toc......the world’s Wealth is moving from the West to the East.
IMHO one thing Trump can do to reduce China’s ability to gain war superiority over us is to prosecute China’s paid for traitors in the Dims for things like Artic Frost and Crossfire Hurricane. The way I see it is: If the Dims can get away with lawfare against Republicans, then China, by paying grift to the Dims, has control over our country. That includes things like the Dims’ policies to limit our resources for war capability, combined with lawfare making it harder for Republicans to get back into office and reverse it.
Correct as you see the consumer buying power disappearing faster than a fart in the wind.. Trump knows the score and said as much at the end of his 1st term..He said the next Presidents would be just rearranging deck chairs on the Titanic..
The company was established as a result of the merger of two major mining entities: BHP, founded in 1885 in Melbourne, Australia, to exploit silver, lead, and zinc deposits at Broken Hill, and Billiton, which originated in 1860 in The Hague, Netherlands, initially focused on tin mining in the Indonesian archipelago.
The merger created one of the world's largest diversified natural resources companies, with operations spanning over 20 countries and a broad portfolio including iron ore, coal, copper, nickel, uranium, gold, and oil and gas.
In 2015, certain assets of BHP Billiton were demerged and rebranded as South32, while the remaining business was restructured and renamed BHP.
The corporate structure was further streamlined in 2018 when BHP Billiton Limited and BHP Billiton plc were renamed BHP Group Limited and BHP Group plc, respectively.
In January 2022, BHP relinquished its London Stock Exchange listing, becoming a solely Australian Securities Exchange-listed company.
As of 2022, BHP was the largest company in Australia and the largest mining company in the world by market capitalisation.
The company has a long history of global expansion and diversification. BHP began steel manufacturing in 1915 with the establishment of the Newcastle Steelworks in New South Wales, and later expanded into petroleum exploration in the 1960s following discoveries in Bass Strait.
Billiton, after being acquired by Royal Dutch Shell in 1970, experienced significant growth and expanded its operations into aluminium smelting, nickel, and base metals mining across South America, Canada, South Africa, and Australia.
BHP Billiton's operations included major projects such as the Mozal aluminium smelter in Mozambique, which began production in 1998 and was expanded in 2001 and 2003.
In the 2010s, BHP Billiton faced financial challenges but maintained substantial annual revenue, solidifying its position as a leading player in the natural resources sector.
The company also pursued strategic acquisitions, including Woodside Energy, Oz Minerals, and Filo Corp. (in cooperation with Lundin Mining), and made offers to acquire Anglo American, though these were not accepted in 2024.
BHP has continued to focus on core commodities such as coal, copper, and iron ore, while reducing its involvement in gas and oil ventures.
=================================================================================================
Therfore, based upon the above history of what is now known as BHP, I do not believe their decision has anything to do with the amount of gold China may or may not possess, and is more about replacing the dollar with the Chinese Yaun (RMB) when dealing with China in payment for their iron-ore trade with China.
=================================================================================================
-----------------------------------------------------------------------------------------------------------
The article itself states:
In a landmark move that could reshape global commodity markets and impact iron ore prices, BHP Billiton has agreed to settle 30% of its iron ore spot trades with Chinese buyers in Chinese Yuan (RMB). This represents a significant departure from the longstanding U.S. dollar standard. Set to begin in Q4 2025, the shift marks a strategic pivot in Australia-China trade relations. It also signals China’s growing influence in global pricing mechanisms.
China’s confrontation with BHP over iron ore prices and currency settlement is more than just a commercial dispute. Some observers see it as a calculated maneuver in Beijing’s long-term campaign to reshape global trade and financial systems. By pressuring the world’s largest mining company to settle in China’s own currency, Beijing is testing its ability to erode the dominance of the U.S. dollar and assert greater control over commodity pricing. The RMB-based settlement will cover approximately 88.5 million tons (MT) of iron ore annually, which is worth an estimated US $10 billion.
-----------------------------------------------------------------------------------------------------------
What remains unclear to me is, what are they accepting as payment for the remaining 70%?
I tried to find the answer to that quesation, but I didn't see it. Doesn't mean it isn't there, I just failed to see it. My eyes are not that great anymore, so when they get tired, I tend to terminate my reading.
Is it the dollar or are they receiving gold as payment? Are they hedging their risk, to see who wins the economic war?
That seems to be the real case here, at least to me. If they make a later agreement that they will accept a higher percentage in Chinese Yuan (RMB) as payment that is when it elevates the concern for the dollar collapse is looming large on the horizon.
Right now there is sufficient concern, because Trump's shelf life is limited. Will another Trump strong type person step up, or will the MAGA movement become hsitory, and thereby provide China with the advantage?
This is what I see as the driving force in accepting a 30% oayment being allowed to be made in the Chinese Yaun (RMB).
Not sating that I am right, but rather, is just my assessment at this point.
.
The Communist Chinese aren’t stupid. But they aren’t supermen, either.
They are, however, iron-fisted totalitarians who know how to exercise that power on their own people.
There are two major errors one can make when dealing with someone who has ill intentions towards you: Treating them dismissively, or treating them as all powerful.
In warfare, the United States was guilty of being entirely dismissive of the Japanese threat. They made poor quality goods. They had bad eyes and buck teeth. They couldn’t see in the dark.
Then, after having our asses kicked by them up until the Battle of The Coral Sea and Midway, they were Supermen. They were invincible. They couldn’t be beaten.
Neither of those things were true.
After Pearl Harbor, we found out they made superb fighter planes and torpedoes. They annihilated us in the Battle of Savo Island at night, so they could see damn well in the dark, because they didn’t have any radar at that point and we had not yet learned how to use our radar that we did possess.
We had no idea of how to use radar tactically in a naval battle until the superlative Admiral “Ching” Lee beat the snot out of them in the famous Second Naval Battle of Guadalcanal, where the USS Washington absolutely savaged them using his own knowledge of radar systems at the time which he himself had developed tactics of using radar to guide Naval gunfire, and implemented them for the first time in that battle. Within two salvos, Admiral Lee landed 20 direct hits on the IJN Kirishima from his main battery of 16 inch guns, and the Kirishima was toast.
And, even until halfway through 1943, there were American Naval officers who simply could not get it through their heads that the Japanese Long Lance torpedo was qualitatively in a different universe than our own torpedoes...and it was their damned job to know at that point, because the knowledge was available but they didn’t want to believe it. It could go longer distances than ours, go faster than ours, and was extremely reliable, far, FAR more so than our own torpedoes. Even worse for us, they knew the capabilities of their torpedoes, and built solid tactics around the use of them.
Point was, until Coral Sea and Midway, we completely overestimated the capability of the Japanese military, and were shy about engaging them. When we did engage, it didn’t go well.
With the Communist Chinese of today, we have both elements in play in our society, that the Chinese make cheap, low quality goods, and at the same time, they are playing 4-D chess.
Neither of those things are wholly true.
When in war, too often when things are hard for your own forces, it is compounded by a sense that your opponent is omniscient, all powerful, and with high morale, is unstoppable.
Wise military leaders counsel those who are engaged that, while we do indeed have serious problems, the enemy has problems too, and it is a good idea to keep in mind that they may not have enough food, fuel, or ammunition, and morale might well be low for them too.
In that light, China has its own problems that they work hard with propaganda not to let them be easily seen by the masses outside of Communist China. They have issues with keeping their population employed, and with billions of workers, any slowdown in demand via tariffs or sanctions is going to shutter factories and the government is going to have to continue to house, clothe, and feed them. Their real estate market is going to wholly collapse (if it hasn’t already) and Chinese citizens are upset about all these things.
It isn’t all just in a vacuum. And I would still rather be an American than a Chinese citizen, and that isn’t even close.
I figure Trump discovered all that Gold has long since gone bye-bye
Time will tell.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.