Socio-Economics History Blog

Socio-Economics & History Commentary

China About to Knock Out Petrodollar by Trading Oil in Yuan

  • China About to Knock Out Petrodollar by Trading Oil in Yuan
    by https://www.rt.com/
    According to Bloomberg, which cited a statement from the exchange, 149 members of Shanghai International Energy Exchange traded 647,930 lots in the rehearsal with a total value of 268.2 billion yuan. The system met the listing requirements of crude futures after the exercise, it added.

    “This contract has the potential to greatly help China’s push for yuan internationalization,”
     said Yao Wei, chief China economist at Societe Generale in Paris. She added, however, “its success will hinge critically on the degree of freedom allowed for the capital flows related to the contract.”

    A former China division chief at the International Monetary Fund, Eswar Prasad said: “It is not unreasonable to envision a world in which the overwhelming share of commodity contracts, especially for oil, are no longer denominated just in dollars.”

    But “the yuan’s role in global finance will ultimately be determined by the degree of commitment of Xi Jinping’s government to economic and financial market reforms.”

    Since the 1970s, the global oil trade has almost entirely been conducted in US dollars. The largest energy consumer, China, is interested in having oil contracts in yuan. Beijing plans to introduce its own oil benchmark which will rival Brent or West Texas Intermediate. Analysts say Chinese authorities will need to first convince large oil producers and consumers to use the yuan and invest in the Shanghai benchmark.

    read more.

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December 16, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

Gregory Mannarino: Bitcoin Futures Biggest Pump and Dump Ever

  • Gregory Mannarino: Bitcoin Futures Biggest Pump and Dump Ever
    by Greg Hunter’s USAWatchdog.com 
    Analyst/trader Gregory Mannarino says the record high stock markets have some big money people worried, and you should be too. Mannarino says, “On a weekly basis, yet another fund manager is coming out to speak against stock market evaluations and against what the Federal Reserve is doing.  Stanley Drukenmiller, a multi-billionaire hedge fund manager, came out on CNBC, and they didn’t turn him off.  He said the Federal Reserve is the Darth Vader of the financial markets and has inflated asset bubbles all over the place.  They let him talk.  They didn’t cut him off.”


    Mannarino goes on to say, “The Fed has created bubbles. This is no secret, and the market is twisted, it is distorted.  There is no real true price discovery mechanism, and there will not be until these world central banks stop managing the markets.  They have created fakery and made it way worse than the top of the last bubble.  This does not mean that this stock market is not going to go higher.”

    On Bitcoin and the new futures markets for it, Mannarino says, “Right now, Wall Street with its hand on Bitcoin, means to me that it’s going to be gamed. (Bitcoin) It’s very thinly traded, it’s not widely held.  Very few people actually hold this, and the bulk of this is held by very few.  So, to game Bitcoin through the exchanges, someone out here with deep pockets, like a bank with unlimited fiat currency, could run the biggest pump and dump the world has ever seen with regard to Bitcoin.  They are going to play it using the futures market.  Wall Street is going to game this.  How do we know this?  Wall Street games everything.”

    On the Bond market, Mannarino contends, “The debt market or the bond market is in the largest bubble the world has ever seen. If you believe Bitcoin is in a bubble, the bond market bubble makes Bitcoin look like one grain of sand on the entire earth.  That’s how big the debt bubble is.  World central banks have gone to unbelievable lengths to prop all this up. . . .They are going to kill the dollar, and they have been killing it for years.  It has lost almost all of its purchasing power.”

    Mannarino says the “red warning flag” will come from both the stock and bond markets at the same time. Mannarino explains, “When we see a sell-off in the bond market that does not stop, and we see a simultaneous sell-off in the stock market, when these two assets start to sell off at the same time, there is the gong of gongs. . . . That’s going to be the moment when people need to run for the hills, if you can get out.”

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December 15, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Gold Will Soar… As China Kneecaps the Dollar

Remember the Golden Rule: “He who has the gold Rules!”

  • Gold Will Soar… As China Kneecaps the Dollar
    by Nick Giambruno, Senior Editor, http://www.internationalman.com/
    Nick Giambruno’s Note: I recently spoke with my friend and colleague Chris Lowe about China’s new alternative financial system—and how it could mortally wound the US dollar. It was such an important discussion that I had to pass it along.

    Chris is the editor of Bonner & Partners’ Inner Circle. His publication shares insights from Bill Bonner’s personal global network of analysts and investment experts.

    Using force to compel people to accept money without real value can only work in the short run. It ultimately leads to economic dislocation, both domestic and international, and always ends with a price to be paid.
    – Former U.S. Congressman Ron Paul


    He who holds the gold makes the rules.
    – Old saying


    Chris Lowe: 
    Why did you start researching the petrodollar system and its potential unraveling?

    Nick Giambruno: This has been on my radar since 2006. That’s when Ron Paul, then a Republican congressman, spoke to Congress about the collapse of the dollar-based global monetary system.

    As I recently told my Crisis Investing readers, I think it’s his most important speech ever. It’s called “The End of Dollar Hegemony.” During the speech, Dr. Paul lays out why a global monetary order built around a fiat currency is doomed to fail.

    Crucially, he pointed out the one thing that would precipitate the US dollar’s collapse—the end of the petrodollar system. I recommend reading the speech in full. But this is the most important part:

    The economic law that honest exchange demands only things of real value as currency cannot be repealed. The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or Euros.

    I discussed this with Dr. Paul at a past Casey Research conference. He told me he stood by his assessment. In a nutshell, he’s saying we’ll know the dollar-centric monetary system is on its way out when countries start trading oil for gold instead of dollars. That’s already starting to happen.

    read more.

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December 15, 2017 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Cryptocurrency Expert: Current Global Economy Could Collapse After Fiat Currency Financial Crisis

  • The Alex Jones Channel Published on Dec 13, 2017
    David Seaman joins Alex Jones live via Skype to evaluate the current financial viability of cryptocurrency and predicts that a collapse of fiat currency could usher in an era of a new economy.

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December 15, 2017 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

Alan Newman: “We Are About To Have The Biggest Asset Revaluation Of All Time”

  • McAlvany Financial Published on Dec 12, 2017
    This week Alan Newman of http://www.cross-currents.net joins the McAlvany Weekly Commentary. We discuss how the stock market is poised for an even larger correction than the 2008 stock market crash. We are about to have the biggest asset revaluation of all time. DOW $14,000 And Gold $5,000? The Numbers To Look For. Gold Is & Will Continue As The Currency Of Last Resort. Central Banks Cannot Promise Unlimited Gains In Stocks Forever. Thanks for listening, if you enjoyed please subscribe for more.

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December 15, 2017 Posted by | Economics | , , , , , , , , , , , , | Leave a comment

The Move From West To The East Is Almost Complete, Be Prepared For The Next Phase

  • X22Report Published on Dec 14, 2017
    Canada home values decline as household debt binge hits a new high, doesn’t look good.Initial jobless claims drop to there lowest level. US retail sales surge, the government just forgot to mention something very important.The service industry declines. Janet Yellen believes the market is not overvalued and she sees no warning signs. China has just completed its 4th dry run of the petro yuan.

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December 15, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Cryptocurrency Will Rock The Financial Industry & Change The Banking System: Frank Holmes

December 15, 2017 Posted by | Economics | , , , , | Leave a comment

China Regulators Complete Final ‘Drill’ In Preparation For Petro-Yuan Futures Trading

  • China Regulators Complete Final ‘Drill’ In Preparation For Petro-Yuan Futures Trading
    by Tyler Durden, http://www.zerohedge.com/
    Amid all the chatter of Venezuela and Russia potentially creating oil-backed cryptocurrencies, the “huge news” of China’s launch of the Petro-Yuan has fallen off the front page… until now.

    This week saw the Shanghai Futures Exchange complete its fifth yuan-back oil futures contract trading drill successfully…

    As Bloomberg reports149 members of Shanghai International Energy Exchange traded 647,930 lots in the drill with total value of 268.2b yuan, according to a statement from the exchange, which added that the system basically met the listing requirements of crude futures after the drill.

    While this was a success, it’s not all plain-saling…
    As Bloomberg notes,
     as the world’s largest energy consumer and an increasing source of investment capital for oil-producing nations, China has an interest in using its own currency rather than that of a geopolitical competitor.

    One hurdle for setting up a rival to Brent or West Texas Intermediate: Overseas oil producers and traders would need to swallow China’s capital controls and penchant for occasional market interventions.

    Similar hurdles have kept foreign investors as bit players in China’s giant mainland stock and bond markets, and the share of payments in Yuan in the Global SWIFT system has fallen…

    read more.

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December 14, 2017 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Dollar’s Days as World’s Most Important Currency are Numbered – Berkeley Economics Professor

  • Dollar’s Days as World’s Most Important Currency are Numbered – Berkeley Economics Professor
    by https://www.rt.com/
    Currencies will soon coexist on a more ‘equal footing’ in international markets, and the US dollar will be forced to share prominence with the Chinese yuan and the EU’s euro, according to global currency systems expert Barry Eichengreen.

    In his book How Global Currencies Work: Past, Present, and Future, he wrote that reserve currences can and do coexist. The book, co-authored by European Central Bank economists Arnaud Mehl and Livia Chițu, was published this month.

    The economists used new evidence of central bank reserves from the 1910s to early 1970s, mainly focusing on the interwar period of the 1920s and 1930s. They have challenged the traditional ‘winner-take-all’ view that there can only be one dominant reserve currency at a time.

    “In the period between the wars, it seems the British pound and the US dollar shared reserve currency status more or less equally, depending on the year,”
     said Eichengreen and his colleagues. They found that “before the First World War, even though sterling was the most important currency, the French franc and German mark were internationally significant, too.”

    read more.

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December 14, 2017 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

Rob Kirby: The New World Reserve Currency Will Be Cryptocurrency BACKED BY GOLD & SILVER

  • Rob Kirby: The New World Reserve Currency Will Be Cryptocurrency BACKED BY GOLD & SILVER
    by https://www.silverdoctors.com/
    Rob provides a timely update on the “cryptoization” of gold & silver… Rob Kirby interviewed on Reluctant Preppers: 

    With $21 TRILLION gone missing from DOD and HUD, as recently revealed by researchers, WHERE IS THE MONEY, how is it being used, and how will it impact the official US Government financial measures if accounted for properly? Are Bitcoin and other cryptos making gold & silver obsolete, or is there a centralized hand over-reaching into the crypto markets? What specific facts signal the last gasp for the US Dollar, against an unarguable preponderance of mega-trends?

    Rob Kirby, proprietary financial analyst, precious metals expert, and founder of KirbyAnalytics.com, returns to Reluctant Preppers to answer YOUR QUESTIONS in this rapid-fire and wide-ranging interview that tackles the tough issues you won’t hear about on the mainstream media!

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December 12, 2017 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

Central Banks Want To Replace The US Dollar With A Single Global Super-Currency

  • X22Report Published on Dec 8, 2017
    Jobs hit an all time new high with retail stores closing, corporations laying off, this makes sense. The everything bubble is getting ready to pop, countries issuing 100 year bonds. Central bankers pushing to replace the dollar with a global super currency, the central bankers say this will stabilize the world.
http://www.newdawnmagazine.com/Article/A_Global_Central_Bank_Global_Currency_World_Government.html

Click on image for article.

9 Jan 1988 cover, The Economist: Get Ready for a World Currency by 2018! The Rise of the Phoenix world currency from the ashes of national fiat currencies ie. destruction of fiat currencies via hyperinflation. “Phoenix” is of course an occult metaphor. Out of the destruction, the ashes of the old world order, the Luciferian New World Order will rise like a Phoenix!

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December 11, 2017 Posted by | Economics, EndTimes, GeoPolitics | , , , , , , , , , , , , , | Leave a comment

The Physical Economy Is Deteriorating At An Accelerated Pace, It Will Not End Well: David Morgan

December 11, 2017 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment

Catherine Austin Fitts: Smart Money Buying Gold and Land. The U.S. Government is a Criminal Enterprise

  • Catherine Austin Fitts: Smart Money Buying Gold and Land. The U.S. Government is a Criminal Enterprise
    by Greg Hunter’s USAWatchdog.com (Early Sunday Release)
    Financial expert and investment advisor Catherine Austin Fitts says the U.S. Government runs on massive criminal activity. Fitts explains, “The U.S. economy is deeply dependent on criminal cash flows.  We’re the global leader in money laundering.  If we stopped doing that, the economy would be in for a major, major change. . . . The preference for most Americans is to keep that system going as long as it works for them.  So, it you are a public official, you are between a rock and a hard place.  If you press the red button and stop the illegal cash flows, then all hell breaks loose. . . . The U.S. Government has been run as a criminal enterprise, and I have documented and proved that on multiple occasions.  The swamp that exists in Washington is from sea to shining sea.  It’s not just in Washington.  It’s in every county and every state house in the country.  If we are going to change and clean ourselves of enormous financial dependencies on criminal activities, we are talking about a very big change, and it’s not just in Washington.”


    So, in the big picture, where are we now? Why are so many top people in politics and Hollywood being taken down?  Fitts says, “These people are expensive.  This is a fundamental re-engineering. . . . We are watching purges, but these purges are knocking out the expensive people, people we no longer need from the financial coup d’état period, and you are bringing in a new wave of people or you are just downsizing.  So, we see sex purges in Hollywood and in various forms of media and entertainment. . . . You have various purges going on because the reality is the world needs to move on.  This money needs to be reinvested, and you can’t afford a bunch of egotistical maniacs who were good at stealing money.  You can’t use them to build the future, and you can’t afford them. . . . There is a huge amount of money that is floating around in fixed income and derivative markets, and now you’ve got to bring it down into the hard economy and hard assets.  How do you do that?  You need to switch the caliber of the people for management and reinvestment of the money.  You have to do it in a way that doesn’t kick off hyperinflation.”

    So, what are the rich doing with their money?   Fitts says, “Gold is what it has always been and that is a real store of value.  I am a gold girl.  If you look at the smart money and central banks around the world . . . the smart money is buying gold, and the smart money is buying land.  If you read the land report, that’s the top holders of land in the United States.  Their holdings have doubled since 2008.  I see tremendous amounts of money moving into hard assets.”

    read more.

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December 11, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , | Leave a comment

Russia-China Real Gold Standard Means End of US Dollar Dominance

https://www.rt.com/business/412546-china-russia-gold-standard-dollar/

Click on image for article.

December 9, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | Leave a comment

Hillary Emails Reveal NATO Killed Gaddafi to Stop Libyan Creation of Gold-Backed Currency

  • Hillary Emails Reveal NATO Killed Gaddafi to Stop Libyan Creation of Gold-Backed Currency
    by Sheep Media Global Research, via http://themillenniumreport.com/
    Hillary’s emails truly are the gifts that keep on giving. While France led the proponents of the UN Security Council Resolution that would create a no-fly zone in Libya, it claimed that its primary concern was the protection of Libyan civilians (considering the current state of affairs alone, one must rethink the authenticity of this concern). As many “conspiracy theorists” will claim, one of the real reasons to go to Libya was Gaddafi’s planned gold dinar.

    One of the 3,000 Hillary Clinton emails released by the State Department on New Year’s Eve (where real news is sent to die quietly) has revealed evidence that NATO’s plot to overthrow Gaddafi was fueled by first their desire to quash the gold-backed African currency, and second the Libyan oil reserves.

    The email in question was sent to Secretary of State Hillary Clinton by her unofficial adviser Sydney Blumenthal titled “France’s client and Qaddafi’s gold”. From Foreign Policy Journal:

    The email identifies French President Nicholas Sarkozy as leading the attack on Libya with five specific purposes in mind: to obtain Libyan oil, ensure French influence in the region, increase Sarkozy’s reputation domestically, assert French military power, and to prevent Gaddafi’s influence in what is considered “Francophone Africa.”

    Most astounding is the lengthy section delineating the huge threat that Gaddafi’s gold and silver reserves, estimated at “143 tons of gold, and a similar amount in silver,” posed to the French franc (CFA) circulating as a prime African currency.

    And here is the section of the email proving that NATO had ulterior motives for destroying Libya (UPDATE: The link has since been killed, but here is the web cache):

    This gold was accumulated prior to the current rebellion and was intended to be used to establish a pan-African currency based on the Libyan golden Dinar. This plan was designed to provide the Francophone African Countries with an alternative to the French franc (CFA).

    (Source Comment: According to knowledgeable individuals this quantity of gold and silver is valued at more than $7 billion. French intelligence officers discovered this plan shortly after the current rebellion began, and this was one of the factors that influenced President Nicolas Sarkozy’s decision to commit France to the attack on Libya. According to these individuals Sarkozy’s plans are driven by the following issues:

    a. A desire to gain a greater share of Libya oil production,
         b. Increase French influence in North Africa,
         c. Improve his internal political situation in France,
         d. Provide the French military with an opportunity to reassert its position in the world,
         e. Address the concern of his advisors over Qaddafi’s long term plans to supplant France as the dominant power in Francophone Africa)

    Ergo as soon as French intel discovered Gaddafi’s dinar plans, they decided to spearhead the campaign against him- having accumulated enough good reasons to take over.

    read more.

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December 9, 2017 Posted by | GeoPolitics | , , , , , , , | Leave a comment