Posted on 09/04/2017 9:54:08 PM PDT by Enlightened1
It’s a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air. – Grant Williams
A report released by the Nikkei Asian Review indicates that China is prepared to release a yuan-denominated oil futures contract that is convertible (backed by) physical gold. The contract will enable China’s largest oil suppliers to settle oil sales in yuan, rather than in dollars, and then convert the yuan into gold on exchanges in Hong Kong and Shanghai.
This is a significant step in removing the global reserve currency status of the dollar and resetting the the global economic and geopolitical “landscape.” Over the past several years, China has quietly established yuan-based currency exchange facilities, which has set up the ability to implement this new non-dollar trade settlement financial instrument. According to the Brookings Institute, 34 Central Banks around the world have signed bilateral local currency swap agreements with the PBoC as of of the end of September 2016, including the major oil-producing countries. With this new contract, China’s largest oil suppliers will now be able to transact directly with China, and other oil importing countries, using yuan which are directly convertible into gold to settle the trade.
Since 1973, OPEC oil has been quoted and traded using to U.S. dollars, otherwise known as “petrodollars.” The “recycling” of petrodollars into U.S. Treasuries has been the life-blood of the U.S. economic and political system. In addition to reducing a major source of funding for the the U.S. Government’s enormous deficit spending, the introduction of a gold-backed yuan oil futures contract is an important step toward removing the dollar as the world’s reserve currency. More significantly it reintroduces gold into the global monetary system.
(Excerpt) Read more at investing.com ...
Lower U.S. dollar, more exports, more jobs.
no one is going to trust the Chinese. Their economy is command and control, their stock market is propped up by the state, and anyone who gets involved in that crap is going to lose his shirt, and several other people’s shirts.
Initially yes but the long term effects of it would be that we are no longer the world’s reserve currency. That would be very bad for us.
That’s true they do manipulate their currency.
However, they may trust their Central Bank which consists of Russia, China, India and Brazil.
Initially yes but the long term effects of it would be that we are no longer the world’s reserve currency. That would be very bad for us.
>><<
You’re right.
we’ve been told/warned/threatened that we’re on the verge of no longer being the world’s reserve currency for decades. hasn’t happened yet because the world isn’t stupid when it comes to their money.
it’s gold backed. oil is what they want to trade.
doesn’t matter. no one is that stupid.
> “It’s a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air. – Grant Williams”
Gold is just a yellow metal that is a pain in the *ss to store and secure. It had its day in the Sun.
Oil is brimming in the US Bakken and the Permian Basin as well as other domestic regions. The Bakken alone has more than ten times the proven reserves of Saudi Arabia.
As China scoops up other world currencies using a gold standard, it will eventually be hit with the reality that currency is ultimately backed with the stamp of Caesar, meaning force.
As was written in years past, the reserve currency could just as well be backed by Puka Shells as long as there is a force behind it. Its value will be weighed against the measure of the force behind it. Gold isn’t a force, it’s a pain in the *ss.
The goal of maintaining value in US currency is to make the American living standard the wonder of the world, in other words, MAGA. With advancements and decentralization of robots and technology, the world will beat its path to America’s door because it wants those advancements.
Give me gold for my renminbi? What you gonna do with the gold?? Eat it? Hide it under the mattress?
The reality is the third world has in some instances such as China become the emerging world. But it’s still third world. They are thinking like it’s 30 or 40 years ago. They still think gold is special.
We’re already bankrupt, and the way I figure it, we’re less than two presidential terms away from complete insolvency.
And Washington, DC is not doing a single thing to change anything about it.
Sure, go ahead and trust the Chinese.
“Brian Silliman, ..has been to China and seen the counterfeiting operations there.”
““There’s a reliable supply of bogus coins coming from China into the U.S., ..”said Brad Karoleff, a veteran coin dealer”
“Glitters, but Not Gold: Fake Gold and Silver Coins ‘Flooding’ Market”
“Inside a Chinese Coin Counterfeiting Ring”
08/22/17
https://www.thespruce.com/chinese-coin-counterfeiting-ring-4071202
“Their economy is command and control, their stock market is propped up by the state”
That really rings a bell. Now where else have I seen that?
I agree to a point. We shouldn’t trust the Globalists because we can’t put anything past them.
How do you say “Ponzi scheme” in Mandarin ?
no one is going to trust the Chinese”
Yes. The Chicoms will soon figure out that nobody wants their gold certificates for oil. Gold for black gold is the way their trade will go.
Maybe off topic, but I often wonder about China. They are still officially communist. Yet they have introduced many free market reforms into their economy. They have opened up and trade with the rest of the world. Chinese millionaires are buying real estate in other countries.
I wonder how can it be, if under communism, everyone is equal, and there are no millionaire business owners, how can communist China have so many wealthy businessmen?
And what would Chairman Mao think of today’s China??
And just a general question, about communism. If communism is supposed to be such a superior system, why does a major communist country such as China institute so many free market reforms, rather than adhere to their communist ideology????
Collecting these kinds of coins has pretty much been made Impossible by the Chinese flooding the US market with Fakes.
Could it be .... Free market or me, communism for thee ...
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