Socio-Economics History Blog

Socio-Economics & History Commentary

Biggest Event in a Generation | Jim Willie on Metals & Markets

  • SilverDoctors Published on Apr 20, 2018
    Jim Willie tells Elijah Johnson and James Anderson the launch of the gold and oil Yuan contracts is the most important financial event in a generation. The Chinese want their own place in global finance. No longer does the dollar have a monopoly on oil. “This is the end time for the Dollar’s dominance.” China is moving away from the U.S. not solely by leaving the Dollar, but also through the trade conflict. Willie predicts China will demand the Saudi’s sell oil in RMB terms. This will be a “knife in the heart of the Petrodollar.”

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April 21, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Petro-Yuan is the Newest Weapon for the China-Russia-Iran Anti-USD Alliance

  • Petro-Yuan is the Newest Weapon for the China-Russia-Iran Anti-USD Alliance
    by Jeff Brown for The Saker blog, http://thesaker.is/
    … After 25 years of dreams, planning, rumors and testing, the Chinese petro-yuan is now official. Right now, almost all global oil trade is conducted in US dollars, using two benchmark varieties of crude, West Texas Intermediate and North Sea Brent, as the industry standards. It is no accident that these two benchmarks are based on imperial crude, American and British, and the irony of this is surely not lost on Baba Beijing (China’s leadership).

    China is not selling oil, so the petro-yuan is a futures purchase contract denominated in renminbi for the country to import the stuff. As the world’s biggest importer of hydrocarbons, Baba Beijing has long felt that pricing all its millions of tons of imports should be in its national currency. Why should China pay for Russian natural gas or Venezuelan crude in Western empire’s currency of global financial control, Uncle Sam’s greenback?

    Opinions outside China range from being non-plussed, to claiming it is the most important news in modern financial history, but you would have to search far and wide in Eurangloland (NATO, EU, Israel, Australia and New Zealand) and its heavily censored and suppressed media, to see for yourself. Outside the obligatory statement of fact in financial outlets like the Wall Street Journal, Financial Times, Reuters and Bloomberg, silence from the West’s mainstream media is deafening, as this screenshot below shows, when searching the topic. Only one mainstream article showed up on page #1 of the web search and that was CNBC from 2017. Even just looking for “petro-yuan” gives identical results. It’s a Western media black hole.

    The West’s censorship and suppression of news that reports the truth about China, Russia and Iran is lethally effective. Hitler called it the Big Lie. Eurangloland learned from a master.

    read more.

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April 11, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , | Leave a comment

Jim Willie on Economy, Gold, Dollar, China, Truth Bombs …

  • Jim Willie on Economy, Gold, Dollar, China, Truth Bombs …
    by http://goldenjackass.com/main5.html
    April 8th:  topics covered include the global rebellion against the USDollar for its monopoly in trade payment as well as bank reserves, the non-USD platforms in global finance, the dead OPEC cartel, the new Russian Rosneft Oil Consortium (based not in USD), the direct backfire with failure in every single USGovt foreign policy since 2001, the bank heist at the World Trade Center, the trade war with China which began in 2005, the sequence of events since 1999 with China on the Hong Kong regional conversion with USGovt gold lease reneged upon followed by massive dumping for Fannie Mae bonds which resulted in the Lehman failure and Chinese confiscation of the JPMorgan HQ property with mixed USFed monetary policy like Operation Twist, the absent gold reserves for the USGovt all stolen by Bush & Clinton & Rubin, the non-starter of a gold-backed new USDollar which requires US re-industrialization, the wise strategy to sell stocks & bonds followed by buying Gold & Silver coins & bars (as in sell high, buy low), the fast growth in the Belt & Oil Initiative based in $8 trillion of projects all outside the USDollar, the vengeance in trade tariffs where the US corporations lose out on canceled large deals, ending with international disgust for the USGovt uncontrollable debt and improper trade deficit funded by printed USDollars

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April 10, 2018 Posted by | Economics | , , , , , , , , , , , , , , , , , , , | Leave a comment

DOLLAR Will Be REPLACED, “It’s Been Bloodshed” | David Moadel

  • FinanceAndLiberty.com Published on Apr 7, 2018
    David Moadel from PortfolioWealthGlobal.com explains that demand for cryptocurrencies and the Yuan are causing the Dollar to decline. It won’t take long for the Dollar to lose its world reserve currency status.

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April 10, 2018 Posted by | Economics | , , , , , , , , , , | Leave a comment

Petro-Yuan to Launch RenMinBi as Global Currency & Kneecap Petro-Dollar

  • Petro-Yuan to Launch RenMinBi as Global Currency & Kneecap Petro-Dollar
    by https://www.rt.com/
    Yuan-backed oil futures can shatter the US dollar dominance on the crude market, according to experts polled by RT. However, the greenback will not give up the top spot easily.

    “The question number one is whether China will be able to make the oil market its demand market, and not the oil supply market traded in dollars, which it is now,”
     Vladimir Rozhankovsky, Global FX Investment analyst, told RT. China has recently overtaken the US as the world’s number one oil buyer.


    The question number two is trade wars. If the world trade enters into a death spiral of reciprocal economic sanctions, keeping oil trade in dollars will be a matter of strategic importance, or a matter of survival for the US,” the analyst added.

    As a result, Washington can deliberately undermine the image of the petro-yuan by attacking Chinese stock, which could result in the devaluation of the yuan, making Chinese oil futures less attractive, Rozhankovsky said.

    However, the US has obvious disadvantages which the petro-yuan can capitalize on. First, the US dollar is still too strong, making domestic oil production very expensive. Second, the United States does not have transatlantic pipelines, and tankers are costly and highly risky, the analyst added.

    “The trade war between the US and China has already begun. China has plans to promote the renminbi as a reserve currency and there is no better move than to purchase raw materials in its national currency. It can save money on the currency conversion and become less dependent on the US dollar,”
     Stanislav Werner, head of the analytical department of Dominion, told RT.


    The analyst notes that the oil market is worth $14 trillion at the moment, and is bigger than the Chinese economy. “The first trading sessions were volatile, but this is a typical story for new financial instruments. The US has a serious reason to get nervous, because in many ways the hegemony of the US dollar came from oil trading in dollars,” he said.

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April 7, 2018 Posted by | Economics | , , , , , | Leave a comment

Pentagon At Odds with Trump Over Troop Withdrawal from Syria

  • Pentagon At Odds with Trump Over Troop Withdrawal from Syria
    by http://www.presstv.com/
    Top Pentagon and US State Department officials have adopted a totally different policy than that of President Donald Trump regarding the withdrawal of American troops from Syria, saying that the United States will not be leaving the war-torn Arab country anytime soon as the “mission is not over.”

    Addressing a forum in Washington, DC, on Tuesday, US Central Command Chief General Joseph Votel said “well over 90 percent” of land once held by the Daesh (ISIL) Takfiri terrorist group in Iraq and Syria had been recaptured, particularly in the north and eastern parts of the country, but added that the military must maintain its presence there.

    “There still are some areas where they are present and that we will have to continue to operate on,” Votel said. Speaking alongside Votel, the State Department’s senior envoy to the so-called anti-Daesh coalition, Brett McGurk, agreed that “ISIL is not finished.” “We are in Syria to fight ISIL. That is our mission and our mission isn’t over, and we’re going to complete that mission,” McGurk said.

    The comments were made shortly after Trump said the US would withdraw troops from Syria “very soon,” and that he intended to “bring our troops back home.”

    read more.

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April 5, 2018 Posted by | GeoPolitics | , , , , , , , , , , , , , | 1 Comment

China Threatens The Petro-Dollar: What Does It Mean?

  • The Alex Jones Channel Published on Apr 3, 2018
    Jake Lloyd explains the United States’ history as the “World’s Bank”, as well as the petrodollar and what it would mean for China to create their own.

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April 5, 2018 Posted by | Economics | , , , , , , , , , , , , , , , | Leave a comment

China to Start Paying Yuan for Oil

  • US-Pentagram: “Those damn ChiComs, they are out to destroy America, kill all Americans. Take away our rights to apple pies and French Fries. They want to kill democracy, liberty … our way of life. We must destroy them, nuke them before they nuke us. We must protect the Illuminist global monetary hegemony … ur ur .. I mean fight for freedom, liberty … democracy, bullshit (cough cough)”
  • corbettreport Published on Apr 1, 2018
    SHOW NOTES: https://www.corbettreport.com/?p=26605
    No sooner had I penned my editorial on how “The Petroyuan Was Born This Week” then the next piece of the puzzle arrived: China is set to start buying oil directly with yuan this year. You may not know it, but this could be one of the most important stories of the decade.

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April 4, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

China Can Succeed with Petro-Yuan Where Gaddafi Failed – Killing the US Dollar in Oil Trade

  • China Can Succeed with Petro-Yuan Where Gaddafi Failed – Killing the US Dollar in Oil Trade
    by https://www.rt.com/
    Muammar Gaddafi wanted to shatter the dominance of the greenback in the Middle East by introducing gold-backed dinar, but failed. China has a chance to finish what he started, one industry expert has told RT.

    “Ideas related to oil trade in currencies other than the dollar arose more than once. Some of them were severely suppressed by the United States, one example is Muammar Gaddafi, who proposed the introduction of a regional currency gold dinar and trading oil in the Middle East in this currency,”
     Aleksandr Egorov, foreign exchange strategist at TeleTrade, told RT.


    However, this time, an attempt to oust the dollar could be successful. China has launched oil futures backed by yuan, and Beijing has what Gaddafi didn’t, according to the expert.

    “Along with the Chinese role in the global economy and the growing interest in the renminbi, China is also protected by a nuclear shield. It can afford to try to shatter the monopoly in oil trade. This will give even more weight to the Chinese yuan. In addition, China’s economy is the world’s largest consumer of oil, and consequently, all world producers of raw materials will have to reckon with the strategy of the Chinese authorities,”
     Egorov said.


    According to the analyst, the timing for the launch of the petro-yuan is perfect. Key oil producers Russia, Iran and Venezuela are under pressure from US sanctions, and it is a good moment for them to ditch the dollar in oil trade and substitute it with the yuan.

    Mikhail Mashchenko, an analyst at social network for investors eToro, agrees. “From the point of view of Russia’s geopolitics, it is certainly beneficial to reduce the role of the dollar in foreign trade. And it has been done, let’s recall the record growth of the country’s gold reserves. The other states that are constantly under the threat of new sanctions, like Iran and Venezuela, can profit, too. The contracts in RMB will allow to trade oil without US approval,” he told RT.

    read more.

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April 3, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

The Yuan-Oil Futures Contract and Gold

  • The Yuan-Oil Futures Contract and Gold
    by Alasdair Macleod, https://www.goldmoney.com/
    “There can be little doubt that the introduction of the yuan-denominated oil future has been a major strategic step for China.”

    Regular readers of Goldmoney’s research will be aware that we were among the first to alert western financial markets that China would introduce a new oil futures contract priced in yuan, months before it was officially admitted that the plans for the contract were being finalised and a date for trading was being planned.i

    Trading in the new Shanghai oil future commenced last Monday, and on the first three days trading there were 151,804 contracts traded with a turnover value of 65bn yuan. It is the first futures contract listed on China’s mainland available to overseas users, putting them on the same footing as domestic investors. There are 15 benchmark contracts for different delivery dates between September next and March 2019.

    There is little doubt that the Chinese government views this contract as an important development, with international commodity trading houses, such as Glencore and Trafigura, encouraged to participate. Furthermore, state-owned banks would have been on hand to ensure the necessary currency and financial liquidity is available.

    The Chinese are likely to ensure trading liquidity continues to build in its new oil contracts before its oil suppliers routinely use them against physical oil deliveries. Presumably, this is one reason the first delivery date is in September, while actual shipment is never more than a month or so.

    This contract goes head-to-head against the petrodollar and is the first serious challenge to it since its inception in the mid-1970s. The petrodollar was born out of the monetary chaos that led to the end of the Bretton Woods Agreement, when excess dollars in foreign hands were redeemed for gold. In that sense, being the first significant threat to the petrodollar, this contract could mark the end of a monetary era.

    China does not intend to replace the petrodollar with its own currency, other than for her own energy and commodity imports. To put it into context, China imports about 8 million barrels of oil per day, mostly from the Eurasian continent, which compares with global daily demand of roughly 100 million barrels. China also produces her own oil to the tune of about 3.7 mbd, so if all China’s suppliers take yuan in payment, it leaves about 88% of global demand still being priced in dollars.

    read more.

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April 3, 2018 Posted by | Economics, GeoPolitics | , , , , , , , | Leave a comment

China’s ‘Petro-Yuan’: The End of the Dollar Hegemony? | Counting the Cost

  • Al Jazeera English Published on Mar 31, 2018
    In an attempt to reshape the global oil market, the Shanghai International Energy Exchange has launched the first crude futures contracts priced in Chinese reminbi, or yuan. China, the world’s biggest oil importer buys around nine million barrels of oil every day and it wants to use its own currency to price the world’s most-traded commodity. The US dollar has been the main currency for oil futures contracts, so launching a contract in its domestic currency is a sign that China wants the yuan to play a bigger role in global oil trading. China is also taking on the world’s most used oil benchmarks, Brent and WTI crude, which are both priced in dollars. But Shanghai-traded oil is still far away from earning benchmark status and taking on the petrodollar won’t be easy.

    “For now, it doesn’t mean many changes. Oil is still going to trade in the US dollar, but increasingly over time, there will be more transactions … but this is not a gamechanger, yet,” Michal Meidan, Asia analyst for Energy Aspects, tells Counting the Cost. “The goal is for China to establish an Asian benchmark that will reflect Chinese consumption and more broadly Asian demand patterns”, but he believes “it’s highly unlikely” that the yuan will challenge the dollar in the near future. Meidan explains that the Chinese yuan would have to become “freely convertible, we would need other countries to open up to settlement in the renminbi; but the primary issue will be currency convertibility. And for now, the Chinese government is very reluctant to loosen currency controls and to give it up to free trade.” “It’s unlikely China will loosen the reigns on their currency”, says Meidan, “It’s very hard to see that happening in the coming five years.

    They still have a lot of domestic challenges that they need to meet and the government and Xi Jinping are in agreement that the state and the party needs a very firm control over that [currency]. If liberalisation was the trend in the 1990s, I think we’re very much seeing a reversal of that. China is very much willing to become a global player, but under its own terms. And whether the global market or global investors are happy to take that on – I think we’re not seeing a huge amount of appetite for that yet.”

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April 2, 2018 Posted by | Economics, GeoPolitics | , , , , , , , , | Leave a comment

Jamie Carrasco: The Petrodollar is Now Under Attack & Will Die

  • Palisade Radio Published on Apr 1, 2018
    Jamie discusses how the Chinese yuan gold backed system was initially conceived back in the year 2000. However, China did not hold that much gold. That has changed considerably, as they have been acquiring more and converting it into metric bars. They can now use these bars pay for energy with gold. These contracts are denominated in yuan and are directly convertible to gold. By using gold for energy, China is essentially saying that they will no longer pay in U.S. Dollars. This will lower the demand for ten-year treasuries as China will no longer need them. Many countries are likely to shift away from US Petrodollar system as a result. Chile, for example, produces 30% of the world’s copper and they are likely to start accepting gold instead.

    The dollar has appreciated considerably relative to gold over the past twenty plus years, and now gold needs to appreciate much more to function as money again. If ten percent of trades occur in gold, there will be supply problems in the west. They plan to use this as a mechanism to drain the west of their remaining reserves. The impetus for major oil producers to stop using the dollar will be greed as the U.S. is no longer the biggest buyer of oil. Asia is going to be the region with the most global growth for the conceivable future. China is rebuilding the historic silk road. Canada is in a tough situation as our large industries can’t move to Asia. They can’t easily ship oil to Asia and are stuck with the United States. Canadians need to learn how to position themselves.

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April 2, 2018 Posted by | Economics | , , , , , | Leave a comment

In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars

  • In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars
    by Tyler Durden, https://www.zerohedge.com/
    Just days after Beijing officially launched  Yuan-denominated crude oil futures (with a bang, as shown in the chart below, surpassing Brent trading volume) which are expected to quickly become the third global price benchmark along Brent and WTI, China took the next major step in the challenging the Dollar’s supremacy as global reserve currency (and internationalizing the Yuan) when on Thursday Reuters reported that China took the first steps to paying for crude oil imports in its own currency instead of the US Dollars.

    A pilot program for yuan payment could be launched as soon as the second half of the year and regulators have already asked some financial institutions to “prepare for pricing crude imports in the yuan“, Reuters sources reveal.
    – 
    read more.

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April 2, 2018 Posted by | Economics, GeoPolitics | , , , , , , | Leave a comment

As Trade War Heats Up, China Hints at Early ‘Petro-Yuan’

  • As Trade War Heats Up, China Hints at Early ‘Petro-Yuan’
    by https://www.rt.com/
    In its efforts to make its currency more international and break the US dollar’s global dominance, China is in the early stages of preparing to paying for oil imports in yuan, sources told Reuters.

    China could launch a pilot program to pay for oil in yuan as early as the second half of this year, according to sources. Local regulators have asked a few financial institutions to get ready for pricing Chinese oil imports in yuan, the three sources at some of the financial institutions said.

    One of the sources speculated that China could begin the test with paying in yuan for the oil it imports from Russia and Angola, although the source said they had no details of anything so specific being discussed.

    The Chinese plans to pay in yuan for oil are at early stages and officials at some of the Chinese state-held oil companies told Reuters they were not aware of such plans. China is the world’s biggest oil importer and the volumes of its imports are closely watched by market analysts to gauge the pace of oil demand growth, the key growth driver of the global oil market.

    The world’s top crude oil importer switching to yuan for oil payments could have potentially huge implications on global oil trade, on the internationalization of the yuan, and on the US dollar oil trade.

    read more.

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April 2, 2018 Posted by | Economics | , , , , , , , , | Leave a comment

CURRENCY WAR: China Will Pay For Oil in Yuan in 2018! DEVASTATING BLOW To the Petrodollar!

April 2, 2018 Posted by | Economics | , , , , , , , , , , , , , | Leave a comment