-
Tom Kirkman posted an update 6 years ago
Hey Western Mainstream Media… stop hyperventillating about ZOMG RUSSIA RUSSIA RUSSIA and pay attention to something significant, like the Chinese shot across the bow to the PetroDollar monopoly.
The U.S. Dollar / PetroDollar is *not* backed by gold. That may have to change eventually. Because the PetroYuan *will* be backed by physical gold.
Checkmate move approaching, time to wake up.
=================================” …A new era for the dollar is in prospect and the price of the dollar measured in real money, gold, seems set to decline.
… The introduction of the oil-for-yuan futures contract gives these nations the opportunity to match a sale of oil for yuan with a matching purchase of gold for yuan on two exchanges, Hong Kong and Dubai. …”
https://www.goldmoney.com/research/goldmoney-insights/the-yuan-oil-future-and-gold
The yuan-oil future and goldRegular 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.
Tom, while you initially mentioned this would be a slow process, it feels like things are progressing much quicker over the past week. I completely understand that the transition will be slow, but the momentum behind the Petro/Yuan seems to be gaining, and with the fact it will be backed by gold, should provide additional stability.
Ritta, this is just the opening volley. Wait for the U.S. to pull its head out of the sand and figure out what just happened. Eventually, the U.S. will respond. Presumably with lots of bluster.
Also waiting to see how Saudi Arabia chooses to respond.
This chess game is just beginning, lots of moves still to be made.
For reference, look how China has mostly approptlriated 90% of the South China Sea, without firing a shot. It has taken years of incremental steps by China to effectively claim the 9 dash area of the South China Sea, despite multiple pverlapping claims by other countries in the region. I lived in Miri, Sarawak, Malaysia for a few years, and the South China Sea was 100 meters from my yard. Malaysia’s sovereign claim to the 200 mile evonomic exclusive zone has been mostly eliminated by China, with zero resistance from Mslaysia.
So bear in mind the repetitious, incremental, inch by inch tactics of the Chinese government to gradually gain international acceptance of the PetroYuan.
Next up, I’m waiting for the eventual blowback from the U.S. which claim that China has “no right” to price oil in Yuan. Or some similar response.
This will likely be a marathon.
Also, Xi is now pretty much the Chinese Emperor for life, and doesn’t have to worry about elections or a successor. He can take his sweet time taking the PetroYuan to the fruition of international acceptance.
As always, just my opinion, please feel free to disagree.