Socio-Economics History Blog

Socio-Economics & History Commentary

The Transition Begins, The World Economic Structure Is About To Change

  • X22Report Published on Dec 19, 2017
    The central banking system is trying to convince the world that the UK will not do as well as the EU when they leave. During the holiday season Toys R Us will be closing somewhere around 200 stores. We are seeing the same thing we saw in the markets back in 1997 & 2007 and in 2017,this will not end well. Saudi Arabia propped itself up by spending money they never had, now its coming to an end. The end of the petro-dollar is getting closer, the petro-yuan finished its testing and will most likely go live during Christmas. Trump now is pushing the strategy of trade.

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December 20, 2017 Posted by | Economics | , , , , , , , , , , , | Leave a comment

Nightmare Before Christmas for Petrodollar as Yuan-Priced Crude Futures Due to Launch

  • Nightmare Before Christmas for Petrodollar as Yuan-Priced Crude Futures Due to Launch
    by https://www.rt.com/
    China has successfully completed its fifth round of yuan-backed oil futures testing may officially begin the contract by the end of this year. It seeks to challenge the dominance of the petrodollar.

    Last week the Shanghai International Energy Exchange said the system has met all the listing requirements after rehearsals for futures trading denominated in the Chinese currency.

    “An official launch during Christmas would be appropriate. The Western market would be quiet and allow the Shanghai exchange as well as Chinese investors to adjust in the early days,”
     Chinese trader Yuan Quwei told Bloomberg.


    According to Wang Xiao, an oil analyst at Guotai Junan Futures “The Chinese oil industry wants to have a local hedging tool while institutional investors look at Shanghai crude futures as an important product in their portfolios.”

    “Shanghai oil will be the first Chinese product that allows foreign investors to trade directly and such involvement will surely bring more volumes,”
     said Wang.

As 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. Experts say Chinese authorities will need to first convince large oil producers and consumers to use the yuan and invest in the Shanghai benchmark.

The Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold earlier this year. The contract enables the country’s trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

read more.

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December 20, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Sprott Money News Ask The Expert – December 2017 – Jim Willie

  • Sprott Money Published on Dec 15, 2017
    Acclaimed analyst Jim Willie joins us for a look ahead to 2018 while answering questions submitted by customers of Sprott Money.

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December 18, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , | Leave a comment

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

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

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

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

China To Test Trade Petro-Yuan Oil Contracts THIS WEEKEND

https://www.bloomberg.com/news/articles/2017-12-06/petro-yuan-delays-show-hurdles-confronting-china-s-currency-push

Click on image for article.

  • China To Test Trade Petro-Yuan Oil Contracts THIS WEEKEND
    by https://www.silverdoctors.com/
    Bloomberg just went full Petro-yuan. There’s just one glaring omission. Here’s the details… One of the main understandings a person gets when they wake up to gold and silver is the inevitable death of the Petro-dollar.

    By now most in the precious metals space should be keen on the fact that China is the up-and-comer in the gold market. From the Shanghai Gold Exchange roll-out last year, and the IMF SDR basket inclusion the year before, China has been rising with it’s role in global finance. If there was a theme to China this year, it would be the highly polarizing rise of the Petro-yuan theme. Today this theme has come front and center in the MSM. Here’s Bloomberg just today:

    China’s moves to set up trading oil in yuan have sparked enthusiasm about what could be a shift in the global financial system: a reduced role for the U.S. dollar. Players like Adam Levinson, founder of hedge fund Graticule Asset Management Asia, call it a “huge story” to come.

    But with policy makers prioritizing market stability over internationalization, plans laid back in 2012 to start oil-futures trading priced in yuan or dollars in Shanghai that year are still pending. The latest from the city’s International Energy Exchange: it’s coming soon, with test trades scheduled this weekend.

    Let’s stop there for a moment. Notice the key words “market stability”. Note to self: The Fed has a mandate for “price stability”. Interesting. Secondly, they will begin test trades this weekend. Interesting. Bloomberg continues:

    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.

    Hmmm: Overseas oil producers and traders will need to swallow ‘capital controls’ and ‘occasional market interventions’? I’m sure oil producing countries would take those headaches and even losses eight days a week rather than having the war machine of the United States bombing their lands into the stone age all the while occupying their lands either before or after the fact.

    read more.

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December 7, 2017 Posted by | Economics, GeoPolitics | , , , , , | Leave a comment

Dual Universe Of The Petro Yuan And Petro Dollar Has Arrived, It’s All About To Change: Jim Willie

December 6, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Jim Willie: Saudi Arabia Buying Time

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

Click on image for MP3 audio interview.

  • Jim Willie: Saudi Arabia Buying Time
    by https://ochelli.com/
    Ochelli Effect 12-1-2017 Jim Willie
    He’s Baaaack! Jim Willie , The editor-in-cheif and founder of The Hat Trick Newsletter & GoldenJackass.com un-packs the recent palace intrigues in the kingdom of oil and everything else greasy.  Saudi Arabia Buying Time ? We are privileged to get Jim’s take on many shell games being run in the grand casino of financial fun and games on a global scale. How and Why are the Saudi Royals “Buying Time”? Listen and find out. Also is there a connection to other publicly covered events in other deserts? By the Way , Is there a PhD thesis that Jim could , should , would destroy if he took his Golden Jackass Flamethrower to it ? Never bet against Willie The Jackass , He’ll beat you by at least a Hat Trick.

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December 3, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , | Leave a comment

The Dollar Is Finished, The Central Bankers Are Moving Us To A New System: Brandon Smith

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

Jim Willie: Give Thanks and Pass the Jackass

www.goldenjackass.com

Click on image to play interview MP3 file!

  • Jim Willie: Give Thanks and Pass the Jackass
    by Turd Ferguson, https://www.tfmetalsreport.com/
    In a holiday tradition here at TFMR, our old pal Jim Willie returns today to discuss a wide range of issues with questions posed by listeners in our A2A webinar format.

    Following an initial, 30-minute discussion of the significance of the recent events in Saudi Arabia, The Jackass spends nearly an hour fielding questions directly from the audience. Among the topics covered:

    * the growing economic conflict between the US and “the Eurasian Alliance”
    * the Swiss banks and shortages of allocated gold
    * reports of US intervention to allow ISIS terrorists to escape Raqqa
    * that “The Big Reset” has already begun, you likely just haven’t noticed
    * the Saudi Aramco IPO and what it signifies
    * Jim’s preferred asset allocation mix
    * and, in true Jackass free-form style, a whole lot more in between

    This baby checks in at 85 minutes. At an average speed of 70 mph, that means you can cover nearly 100 miles of drive time while listening on your way to your in-laws! For everyone else, maybe break it up into segments so that you don’t miss anything.

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November 25, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

US ‘Empire of Debt’ Will go to War to Stop Emergence of Petro-Yuan – Max Keiser

November 22, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , | Leave a comment

Saudi Arabia Wants to Kill the Petrodollar – Economist

  • Saudi Arabia Wants to Kill the Petrodollar – Economist
    by https://www.rt.com/
    The United States and Saudi Arabia are so interdependent that a rift would mean disaster for the petrodollar system and the greenback’s reserve currency status, warns economist Brandon Smith. He is sure Riyadh is planning to ditch the dollar.

    “I believe the next phase of the global economic reset will begin in part with the breaking of petrodollar dominance. An important element of my analysis on the strategic shift away from the petrodollar has been the symbiosis between the US and Saudi Arabia. Saudi Arabia has been the single most important key to the dollar remaining as the petrocurrency from the very beginning,” 
    Smith wrote in an article for his website Alt-market.com.


    The site claims its goal is to “facilitate barter networking and the exchange of knowledge and ideas for thriving in a faltering monetary environment.”

    According to the economist, Saudi Arabia’s Crown Prince Mohammed Bin Salman has been seeking ways of cutting dependence on the US dollar. Smith says the country’s Vision 2030 program may be not about reducing oil’s share in the economy, but killing the petrodollar.

    “Prince Mohammed’s revolutionary “Vision for 2030” developed as he entered power was touted as a means to end Saudi reliance on oil revenues to support economic stability. However, I believe this plan is NOT about ending reliance on oil, but ending reliance on the US dollar. In fact, the plan indicates a move away from the dollar as the world’s petrocurrency and a de-pegging of the riyal from the dollar,”
     he wrote.


    A 1974 agreement between US President Richard Nixon and Saudi King Faisal meant Riyadh has been accepting dollars for all its oil exports.

    “Prince Mohammed has also established much deeper ties to Russia and China, creating bilateral agreements which may end up removing the dollar as the mechanism for oil trade between the nations,”
     Smith added.

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November 19, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , | Comments Off on Saudi Arabia Wants to Kill the Petrodollar – Economist

Timing the Collapse: Ron Paul Says Watch the Petrodollar

  • Timing the Collapse: Ron Paul Says Watch the Petrodollar
    by Nick Giambruno, Senior Editor, http://www.internationalman.com/
    “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. The sooner the better.” (emphasis mine)
    ~ Ron Paul

    What Ron Paul is referring to here is the petrodollar system. It’s one of the main pillars that’s been holding up the US dollar’s status as the world’s premier reserve currency since the breakdown of Bretton Woods.

    Paul is essentially saying that, if we want to better understand the answer to the elusive question of “When will the fiat US dollar collapse?“, we have to watch the petrodollar system and the factors affecting it.

    At the recent Casey Research Summit, I had the chance to speak extensively with Dr. Paul on this subject, and he told me that he stands by his assessment. I believe this is critically important, because once the dollar loses this coveted status, the window of opportunity to take preventative action will definitively shut for Americans.

    At that moment, I believe the US government will become sufficiently desperate and implement the destructive measures that governments throughout the world and throughout history have all taken (overt capital controls, wealth confiscations, people controls, price and wage controls, pension nationalizations, etc.)

    But it’s not just the financial implications that need to be considered. The destruction of the dollar is going to wipe out the wealth of a lot people, and that will cause political and social consequences that will likely be worse than the financial consequences. The three points to understand here are:

    read more.

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November 19, 2017 Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , , , , | Comments Off on Timing the Collapse: Ron Paul Says Watch the Petrodollar