Socio-Economics History Blog

Socio-Economics & History Commentary

Breaking: China Moves To Kill The Petrodollar, Tells Saudi Arabia — China Will Pay For Oil In Yuan-Gold

  • The Alex Jones Channel Published on Oct 18, 2017
    China is making its move against America, not with military force but by trying to destroy the US economy.

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October 19, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

China’s New Oil Exchange Where Countries Will Be Able To Take Gold As Payment Plus A Worldwide Paradigm Shift

  • China’s New Oil Exchange Where Countries Will Be Able To Take Gold As Payment Plus A Worldwide Paradigm Shift
    by https://kingworldnews.com/
    As trading continues in the 3rd week of October, here is a look at China’s new oil exchange where countries will be able to take gold as payment, plus a worldwide paradigm shift.

    China is set to launch an oil exchange by the end of the year that is to be settled in yuan. Note that in conjunction with the existing Shanghai Gold Exchange, also denominated in yuan, any country will now be able to trade and hedge oil, circumventing U.S. dollar transactions, with the flexibility to take payment in yuan or gold, or exchange gold into any global currency.
    — John Curran, former partner and head of commodities at Caxton Associates

    read more.
https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-gold

Click on image for article.

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October 17, 2017 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Friday The Thirteenth Golden Jackass Jim Willie

https://ochelli.com/wp-content/uploads/2017/10/The-Ochelli-Effect-2017-10-13.mp3

Click on image for MP3 audio interview.

  • Friday The Thirteenth Golden Jackass
    by https://ochelli.com/
    The Ochelli Effect 10-13-2017 Jim Willie The man behind The “Hat Trick Newsletter” @  goldenjackass.com .Plus producer Tony Hurst has an unscripted conversation with Chuck in the second hour

    Hour 1 we break down money , Gold , Oil , and the U.S. Military Industrial Complex along with a few unusual subjects with the uniquely talented Jim Willie from GoldenJackass.com . Jim’s insights into finance ,  global trends , realities and the secret or not-so-secret  world of real deals is one of a kind and the Ochelli Effect is lucky to have Jim appear on a monthly basis. On Friday The Thirteenth Golden Jackass , we hear Jim answer listener questions and explain what happens when China decides to “Flip The Switch” , and what has happened to US Presidents  when they push back against the banking Cabals.

    Second Hour Tony Hursy makes a rare appearance on the show to pick Chuck’s brain a bit about current events , Climate Change , and What In Hell is actually going on in the alleged United States. The future of the show is addressed and Tony’s priceless contribution to show , website and Chuck’s basic knowledge are discussed. Also , What was that noise at the second hour break?

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

End of Petrodollar: Rise of Economic Protectionism to Reshape Global Trade

  • End of Petrodollar: Rise of Economic Protectionism to Reshape Global Trade
    by https://sputniknews.com/
    The era of petrodollar recycling is drawing to an end as shifts in technology and international politics render it redundant, meaning the US is entering volatile times.

    Kristian Rouz — The rise of economic protectionism and nationalism in politics of the recent years, including the gradual implementation of US President Donald Trump’s agenda and Brexit reshaping the contours of European trade, are poised to bring an end to the petrodollar recycling. These developments signal the first overhaul of international economic relations since the Nixon administration in the early 1970s in the United States.

    The petrodollar system entailed the end of the gold standard in the US, which had its national currency pegged to the value of gold at $35 per ounce in the aftermath of World War II. However, the severe challenges that global economy faced in the late 1960s pushed the administration of Richard Milhous Nixon to abandon the system.

    “The essence of the deal was that the US would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in US dollars,” The Huffington Post explains.

    The shale revolution in oil productionin the early 2010s rendered this system irrelevant in the US, as North America is becoming increasingly independent of crude oil imports and has, in fact, increased its own oil and petrochemical exports under President Trump.

    However, President Trump’s push for greater protectionism faces obstacles, mainly in the form of a significant Saudi investment in US Treasury bonds accrued over the past 40 years. The petrodollar system has allowed Saudi Arabia to increase its foreign reserves, and many other prominent oil-producing nations have followed the same foreign investment pattern.

    The US, on its part, was able to increase its money supply by printing dollars, which has produced major dollar devaluation, by over 30 percent since the early 1980s. Subsequently, other oil importers, in order to pay for energy, had to buy US dollars first.

    read more.

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

US-Led Coalition Destroys Everything in Syria Except for ISIS-Daesh — Damascus

  • US-Led Coalition Destroys Everything in Syria Except for ISIS-Daesh — Damascus
    by https://sputniknews.com/
    Syrian Foreign Minister Walid Muallem has said that the US-led coalition against the internationally condemned terrorist group Daesh is acting in Syria like it is trying to destroy the country and prolong the armed conflict there.

    Muallem stated that Damascus will demand that the US-coalition is dissolved. He stressed that thousands of Syrian women and children have been killed by coalition airstrikes in the provinces of Raqqa and Deir ez-Zor. According to the minister, Washington is using the coalition to cover up for the destruction of the country.

    The US-coalition has so far confirmed that 735 civilians have been killed by “unintentional” airstrikes in Syria and Iraq, adding that 350 more reports of civilian casualties are currently under review. At the same time the alliance has denied it is assisting Daesh terrorists in Syria.

    The Syrian minister has also touched upon a Kurdish issue in the region. He stressed that Kurdish forces are rivaling the Syrian army to gain control over the oil-rich areas of the country. He went on by saying that Damascus won’t allow any external force to violate its sovereignty.

    read more.
http://sputniknews.com/middleeast/20150222/1018598246.html

Click on image for article.

http://www.globalresearch.ca/nato-and-cia-support-al-qaeda-terrorists-in-syria/5356391

Click on image for article.

https://sputniknews.com/columnists/201705251053969840-daesh-west-stench-of-death/

ISIS = CIA jihadists. Click on image for article.

http://rt.com/op-edge/261469-isis-suicide-bomb-yemen/

Click on image for article.

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October 16, 2017 Posted by | GeoPolitics | , , , , , , , , , , , | Leave a comment

China Could Shatter Petrodollar by Compelling Saudi Arabia to Trade Oil in Yuan

https://www.rt.com/business/406373-china-saudi-arabia-yuan-oil/

Click on image for article.

  • US-Pentagram: “We will conduct more freedom of navigation exercise in the South China Sea and we do not accept Chinese sovereignty over the islands in the South China Sea. … and we warn the Chinese – Al Qaeda and ISIS about to launch attacks on Chinese territories. (wink wink)”

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October 12, 2017 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

Jim Willie: 58 Recent Global Shifts That Are QUICKENING The Death Of King Dollar

  • Jim Willie: 58 Recent Global Shifts That Are QUICKENING The Death Of King Dollar
    by Jim Willie the Golden Jackass , via https://www.silverdoctors.com/
    Many are the turning points with individual nations, once firmly in the Western alliance camp, but no longer. They are flipping eastward or in the case of China cutting the major cords. The Shanghai developments are by far the most important in the financial setting. The Petro-Dollar is seeing its last months after a 43-year reign as defacto standard. Its retirement will begin in the East, then spread to the decaying loyal Western nations. The entire geopolitical chessboard is becoming more aligned with the Eurasian Trade Zone, one nation after another. Its cornerstones are Russia, China, and increasingly Iran. It has gathered some Eastern European countries like Turkey, and will gather more. It has pursued the Middle East oil monarchies, and will succeed in lassoing them into the zone corral. Whether they deploy financial connections, or trade ties, or security links, these nations no longer see the United States and British (who walk the American dog with a monetary leash) as the leading global players any longer. The leaders are China with its financial and industrial might and Russia with its energy and commodity strength.

    As the global structure shifts in alignment, many nations will be involved in the shifts directly. It can be perceived as chess pieces in movement. The many bilateral connections are being altered, so as to fit within the new forces. The power center is moving from West to East, although certainly very slowly. Some call it a giant ship changing course, but the Jackass thinks of it more as a very large baby being formed with numerous umbilical cords, which requires a very long gestation period like that for an elephant. The Eastern centers must remove the vestiges of old colonial power links. It is a very slow process, whereby the East must accept losses from the uprooted stanchions. The Eastern leaders measure their risks, make the changes, and consider the losses as part of a reorganization much like done with the better observed structural changes done by IBM or Chrysler.

    Walls on all continents are seeing more clear graffiti. The writing is on the walls for the King Dollar first relinquishing its dominant position, then soon permitting a peaceful coexistence with the Chinese RMB, and later suffering the ignominy of gradual more complete removal as global currency reserve. Expect next to see a wider recognition of the Dual Universe, with the USD pitted against the RMB but without war. The current challenges are numerous, significant, and undeniable. The following nations are central to the global paradigm shift in progress. Cited are some key events in the shift. They have two themes in common, energy pacts and financial flight from the King Dollar. The more full description with effects, angles, and players is included in the October Hat Trick Letter, now in the production phase.

    read more.

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October 12, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Leave a comment

Petrodollar Collapse Alert: Russia and Saudi Arabia ‘Sign $3 Billion Arms Deal’ – Jerry Robinson

  • Follow the Money Published on Oct 6, 2017
    In this brief audio clip, Christian economist Jerry Robinson shares his insights into the warming of ties between Saudi Arabia and Russia and explains what it could mean to the failing petrodollar system. Read more about the petrodollar system here… http://ftmdaily.com/petrodollar

    Russian President Vladimir Putin hosted Saudi Arabia’s King Salman for talks at the Kremlin on Thursday, cementing a relationship that is pivotal for world oil prices and could decide the outcome of the conflict in Syria. King Salman, the first sitting Saudi monarch ever to visit Russia, led a delegation to Moscow that agreed joint investment deals worth several billion dollars, providing much-needed investment for a Russian economy battered by low oil prices and Western sanctions. Saudi Arabia said it had signed a memorandum of understanding on the purchase from Russia of S-400 air defense systems. That marked a shift for the kingdom, which buys most of its military kit from the United States and Britain.

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

Saudia Arabia Pivots Towards Russia And Away From The US

  • X22Report Published on Oct 6, 2017
    Spanish courts are trying to block the Catalan independence vote. Russia and Saudi leaders meet and agree on a oil deal and a weapons deal. Saudi Arabia is pivoting away from the US and towards Russia. US troops can now fire in Afghanistan. North Korea keeps shouting about war, but they are not making any preparations. The IS and Site Intelligence are pushing the idea that Paddock was radicalized. Was Stephen Paddock working with the intelligence agencies. Julian Assange  says most terror plots are orchestrated by the FBI.

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October 7, 2017 Posted by | Economics, GeoPolitics, Social Trends | , , , , , , , , , , , , , , , , , , | Leave a comment

Challenging the Dollar: China and Russia’s Plan from Petroyuan to Gold

  • Challenging the Dollar: China and Russia’s Plan from Petroyuan to Gold
    by FEDERICO PIERACCINI, https://www.strategic-culture.org/
    As seen in my previous article, US military power is on the decline, and the effects are palpable. In a world full of conflicts brought on by Washington, the economic and financial shifts that are occurring are for many countries a long-awaited and welcome development.

    If we were to identify what uniquely fuels American imperialism and its aspirations for global hegemony, the role of the US dollar would figure prominently. An exploration of the depth of the dollar’s effects on the world economy is therefore necessary in order to understand the consequential geopolitical developments that have occurred over the last few decades.

    The reason the dollar plays such an important role in the world economy is due to the following three major factors: the petrodollar; the dollar as world reserve currency; and Nixon’s decision in 1971 to no longer make the dollar convertible into gold. As is easy to guess, the petrodollar strongly influenced the composition of the SDR basket, making the dollar the world reserve currency, spelling grave implications for the global economy due to Nixon’s decision to eliminate the dollar’s convertibility into gold. Most of the problems for the rest of the world began from a combination of these three factors.

    Dollar-Petrodollar-Gold
    The largest geo-economic change in the last fifty years was arguably implemented in 1973 with the agreement between OPEC, Saudi Arabia and the United States to sell oil exclusively in dollars.


    Specifically, Nixon arranged with Saudi King Faisal for Saudis to only accept dollars as a payment for oil and related investments, recycling billions of excess dollars into US treasury bills and other dollar-based financial resources. In exchange, Saudi Arabia and other OPEC countries came under American military protection. It reminds one of a mafia-style arrangement: the Saudis are obliged to conduct business in US dollars according to terms and conditions set by the US with little argument, and in exchange they receive generous protection.

    De-dollarize
    Beijing has started putting strong pressure on Riyadh to start accepting yuan payments for oil instead of dollars, as are other countries such as the Russian Federation. For Riyadh, this is an almost existential issue. Riyadh is in a delicate situation, dedicated as it is to keeping the US dollar tied to oil, even though its main ally, the US, has pursued in the Middle East a contradictory strategy, as seen with the JCPOA agreement. Iran, the main regional enemy of Saudi Arabia, was able to have sanctions lifted (especially from Europeans countries) thanks to the JCPOA. In addition, Iran was able to pursue a historic victory with its allies in Syria, gaining a preeminent role in the region and aspiring to become a regional powerhouse. Riyadh is obliged to obey the US, an ally that does not care about its fate in the region (Iran is increasingly influential in Iraq, Syria and Lebanon) and is even competing in the oil market. To make matters worse for Washington, China is Riyadh’s largest customer; and considering the agreements with Nigeria and Russia, Beijing can safely stop buying oil from Saudi Arabia should Riyadh continue to insist on receiving payment only in dollars. This would badly hurt the petrodollar, a perverse system that damages China and Russia most of all.


    read more.

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October 6, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , | Leave a comment

Russia Stockpiles Gold in Continued Push Away from US Dollar

https://www.rt.com/business/405526-russia-highest-gold-reserves/

Click on image for article.

https://www.rt.com/business/403465-dollar-end-china-crude-rogers/

Click on image for article.

October 4, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Cracks in Dollar Are Getting Larger. Gold is Heading to $10,000 or Higher

https://asia.nikkei.com/Markets/Commodities/China-sees-new-world-order-with-oil-benchmark-backed-by-gold

Click on image for article.

  • Cracks in Dollar Are Getting Larger
    by JAMES RICKARDS, https://dailyreckoning.com/
    Many Daily Reckoning readers are familiar with the original petrodollar deal the U.S made with Saudi Arabia. It was set up by Henry Kissinger and Saudi princes in 1974 to prop up the U.S. dollar. At the time, confidence in the dollar was on shaky ground because President Nixon had ended gold convertibility of dollars in 1971.

    Saudi Arabia was receiving dollars for their oil shipments, but they could no longer convert the dollars to gold at a guaranteed price directly with the U.S. Treasury. The Saudis were secretly dumping dollars and buying gold on the London market. This was putting pressure on the bullion banks receiving the dollar.

    Confidence in the dollar began to crack. Henry Kissinger and Treasury Secretary William Simon worked out a plan. If the Saudis would price oil in dollars, U.S. banks would hold the dollar deposits for the Saudis. These dollars would be “recycled” to developing economy borrowers, who in turn would buy manufactured goods from the U.S. and Europe. This would help the global economy and help the U.S. maintain price stability. The Saudis would get more customers and a stable dollar, and the U.S. would force the world to accept dollars because everyone would need the dollars to buy oil.

    Behind this “deal” was a not so subtle threat to invade Saudi Arabia and take the oil by force. I personally discussed these invasion plans in the White House with Kissinger’s deputy, Helmut Sonnenfeldt, at the time. The petrodollar plan worked brilliantly and the invasion never happened.

    Now, 43 years later, the wheels are coming off. The world is losing confidence in the dollar again. China just announced that any oil-exporter that accepts yuan for oil can convert the oil to gold on the Shanghai Gold Exchange and hedge the hard currency value of the gold on the Shanghai Futures Exchange.

    The deal has several parts, which together spell dollar doom. The first part is that China will buy oil from Russia and Iran in exchange for yuan. The yuan is not a major reserve currency, so it’s not an especially attractive asset for Russia or Iran to hold. China solves that problem by offering to convert yuan into gold on a spot basis on the Shanghai Gold Exchange. This straight-through processing of oil-to-yuan-to-gold eliminates the role of the dollar.

    I believe gold is ultimately heading to $10,000 an ounce, or higher.

    read more.

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September 30, 2017 Posted by | Economics, GeoPolitics, History | , , , , , , , , , , , | Leave a comment

This Could Send Gold Much Higher Than $10,000

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

  • This Could Send Gold Much Higher Than $10,000
    by BRIAN MAHER, https://dailyreckoning.com/
    Jim Rickards is on record forecasting $10,000 gold. But is China about to provide the catalyst to send gold even higher? And by how much?

    Today, we fare forth in the spirit of speculation… follow facts down strange roads… and arrive at a destination stranger still…

    China — the world’s largest oil importer — struck lightning through international markets recently. According to the Nikkei Asian Review, China has plans to buy imported oil with yuan instead of dollars. Exporters could then exchange that yuan for gold on the Shanghai Gold Exchange.

    Not only would the plan bypass the dollar entirely… it would restore gold’s role in international commerce for the first time since 1971, when Nixon hammered the last nail through Bretton Woods.

    If the rumors hold true, China’s plan could enter effect by the end of this year. Billionaire business magnate and sound money advocate Hugo Salinas Price ran China’s plan through his calculator. It turned up a basic math problem that spells drastically higher gold prices — if the plan is to work.

    If China is willing to trade gold for oil under its latest plan, a similar dynamic enters play. Consider: China takes aboard some 8 million barrels of oil a day. That’s 2.92 billion barrels per year — nearly 3 billion in all. But China holds only a few thousand metric tons of gold (officially about 1,850. Some estimate the true figure much higher).

    You see the problem, of course. China rapidly depletes its gold reserves if too many oil exporters choose to exchange yuan for gold. If the plan’s to be sustainable at all, gold must rise — drastically — in order to balance the vast amounts of oil it’s supporting.

    As Price explains, “To balance the mass of oil received by China against a limited amount of available gold… it will be necessary for gold to skyrocket upward in yuan terms and, necessarily, in dollar terms as well.” Price crunched the numbers…

    One ounce of gold (about $1,300) currently fetches 26 barrels of oil (about $50 per). One barrel of oil is worth 1.196 grams of gold.

    Price calls this ratio “an unsustainably low purchasing power of gold vis-a-vis oil.” Only a drastically higher gold price would render the plan plausible. How far would gold have to climb before the relationship was stable in Price’s estimate? Ten times. Thus, Price arrives at a reasonable gold price:

    $13,000 per ounce.

    read more.

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September 29, 2017 Posted by | Economics | , , , | Leave a comment

“Sunset of the Dollar” | Jim Willie

  • SilverDoctors Published on Sep 27, 2017
    Jim Willie tells Silver Doctors that one of the most important financial events in four decades just transpired and now we’re witnessing the “sunset of the dollar.”

    Jim Willie interviewed on Silver Doctors
    China is announcing the imminent roll-out of gold-backed futures contracts denominated in Chinese yuan. The petrodollar system is breaking down, Willie says. OPEC is deteriorating to a state of discord and disunity. Willie explains the replacement he sees coming. It is terrible for the dollar…

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September 28, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , | Leave a comment

The Demise Of The Dollar As We Know It: “A Break Is Coming… On A Worldwide Basis”

  • The Demise Of The Dollar As We Know It: “A Break Is Coming… On A Worldwide Basis”
    by Mac Slavo, September 24th, 2017, SHTFplan.com
    The significance of the shift taking place on a geo-political basis to unseat the U.S. dollar as the world’s reserve currency cannot be understated. It is, by all means, a complete upending of the financial and economic systems as we have come to know them. According to Keith Neumeyer, the Chairman of First Mining Finance and Chief Executive Officer of First Majestic Silver, the world’s purest silver producing mining company, the move is already taking place with countries like China, Russia, Venezuela and Iran already beginning to trade commodities with Yuan, Rubles and gold.

    Amid a recent announcement about developments in the gold and silver mining industry discussed in the following interview with SGT Report, Neumeyer, who previously called out, in very public fashion, the manipulation of precious metals by a small concentration of market players, says that the global currency wars currently playing out on the monetary battlefield will lead to significant price increases in the world’s most trusted hard assets of last resort.

    We’re seeing Chinese and Russians trading in gold for oil… there’s a real move on a worldwide basis… There is a break coming…

    It has to… It’s just time… The United States is a very powerful country… it has a very powerful military and they want to keep the system that’s in place because a lot of people have made a lot of money in the current system…

    I think as the world develops and gets off oil, I think that’s going to help facilitate a break from the Petrodollar system…  and everything that’s going on in the world is very supportive of much, much higher gold prices… I do contend that silver is going to far exceed the move in gold.

    read more.

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September 26, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , | Leave a comment