Posted on 03/15/2022 7:42:42 AM PDT by mikelets456
The Wall Street Journal reports active talks between Riyadh and Beijing about pricing some Saudi oil sales to China in yuan instead of dollars.
Chatter about this sort of arrangement has been ongoing for several years, but recent events have brought a new urgency to talks, according to the report, which says the Saudis are questioning longstanding U.S. security commitments to the Kingdom.
Among the issues is what the Saudis believe to be less-than-enthusiastic support for the war in Yemen, the White House's attempt at an Iran nuclear deal, and shock at the American withdrawal from Afghanistan. China is a buyer of more than 25% of Saudi Arabia's exported oil, according to the story.
The news would seemingly be of interest to the Bitcoin (BTC) and gold markets, but, for now, there's little reaction, with bitcoin continuing in the mid-$38,000 area, and gold remaining lower by 2.1% for the day at $1,918 per ounce.
(Excerpt) Read more at msn.com ...
Cancel culture turns everyone into an enemy.
It is a form of mass suicide.
The vacuum is between Brandon’s ears.
Exactly.
Look into the censored aftermath of the Schwab stooges in Canada cancelling the truckers.
Massive bank runs, hidden by Fecesbuch, the Twittsewer and Goolag, of course.
Only the fools who believed the government line in Canada still have their assets at the mercy of the TechnoLords.
Heck, people that I know here in the US took a position in cash and physical assets.
Yes.
see my post #23
Yup—Canada spooked the herd.
The plutocrats were supposed to wait a while before instituting social credit.
“As for my people, children are their oppressors, and women rule over them. O my people, they which lead thee cause thee to err, and destroy the way of thy paths.” Isaiah 3:12
Our friends the Saudis....
The adults are back, baby!!
America is once again respected in the world!!
81,000,000 votes!! Most in history!!
The uniparty in DC bears total responsibility for this. This cancellation of another country has led us here.
The US purposely ignited that war in Ukraine. It is unbelievable to me that people aren’t furious about this.
They wanted a color revolution in order to replace Putin. Drove him directly to China. Evil idiots. All of them. No wonder the Bible excludes them.
This is Biblical.
Today, America is “The radio star” and MTV just turned on.
All of those dollar reserves sitting in banks are going to come rushing home; and that means MORE inflation.
It's over for the US dollar if dollars no longer buy Saudi oil. this is yuge and serries.
Good luck with this fantasy.
The yuan (actually, called the renminbi when it is traded internationally) trades at a fixed exchange rate.
It will never work as a reserve currency unless it is allowed to float at a free market price.
Thanks Joe! Another sign of total weakness.
“It actually is a big thing”
Help us understand why that is so.
As I see it (limited view), oil is simply a currency benchmark for the US dollar.
Payments are made in multiple currencies, but pricing is in dollars.
How does pricing in another currency affect us?
I don’t think it will happen. Yuan is not a freely exchangeable currency, getting Yuan is actually pretty useless because you can’t use it to buy other stuff.
Secondly, actually reading that article makes it obvious Salman and bin Salman are pulling Xiden's chain, which they should, but has less to do with any petroyuan, which they know would be radioactive in the eventuality China attacks Taiwan, which seems likely to occur during bin Salman's tenure.
"The talks with China over yuan-priced oil contracts have been off and on for six years...China introduced yuan-priced oil contracts in 2018 as part of its efforts to make its currency tradable across the world, but they haven’t made a dent in the dollar’s dominance of the oil market.The idea of the Saudis selling oil to China in yuan “highly volatile and aggressive” and “not very likely.” The official said the Saudis had floated the idea in the past when there was tension between Washington and Riyadh.
It is possible the Saudis could back off. Switching millions of barrels of oil trades from dollars to yuan every day could rattle the Saudi economy, which has a currency, the riyal, pegged to the dollar. Prince Mohammed’s aides have been warning him of unpredictable economic damage if he moves ahead with the plan hastily.
Doing more sales in yuan would more closely connect Saudi Arabia to China’s currency, which hasn’t caught on with international investors because of the tight controls Beijing keeps on it. Contracting oil sales in a less stable currency could also undermine the Saudi government’s fiscal outlook."
yeah, this won’t end well
But countries that border China will look favorably at this. I can see I dis using Yuan; or the south Asian countries.
You and I both know that whatever gets people oil cheaper will win. And “cheaper” not not just the retail price. It’s the carry and transport cost. It’s the cost of debt. And it’s the benefit of Yuan reserves.
Just the fact that a large % of the traffic won’t require dollars means that those dollars are no longer “needed” in reserves. That causes the sale of dollars, and they come rushing back to the US.
THAT is what we are trying to avoid. If we cannot “force” markets to accept dollars, we cannot control interest rates or inflation.
This will happen slowly at first….and then it will be a logarithmic whirlwind.
It doesn’t have to be THE reserve currency. There can be more than one.
The thing that would kiss us would be issuing a Yuan tied to a fixed gold value. And China sets the value of gold. It would be a parallel currency, used for external trade only.
It’s an “out there” theory…
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