China plays the long game and they have seemingly played masterfully. The question is, “Will this be Checkmate for the petro dollar?”
China is readying their Yuan (currency) crude oil benchmark and it will be backed by gold — as de-dollarization accelerates.
Zerohedge reports via the Nikkei Asian Review, “The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan.”
Simply put, it enables the circumvention of U.S. dollar trade for oil exporters.
“It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either,” said Alasdair Macleod, head of research at Goldmoney.
“To make the yuan-denominated contract more attractive, China plans the yuan to be fully convertible in gold on the Shanghai and Hong Kong exchanges.”
If this actually comes to fruition, this will be a major blow to U.S. dollar hegemony and potentially the end of the Fed as we know it. No more ammo except the real thing. And that means bullets and bombs.
This could be a mortal blow to the dollar.
“Most Americans have NO idea about Currency Hegemony. If this succeeds, you can kiss off US $ hegemony and everything that flows from that status.”
Note: China created an alternative to SWIFT a few years ago. CIPS. Chinese Interbank Payment System.
Note: China has been accumulating gold hand over fist for the past 8 years.
A recent ZH comment reads:
The U.S. is involved in war in maybe 8 small countries, and it’s unlikely they will take on China, Russia, Iran and Brics. And this time they will not have the “safe haven” tag to sell UST bonds to finance the aggression or the modern military/weaponry required and are at full stretch everywhere.
N. Korea is happening because it’s the last country left which can be feasibly threatened – and war with NK would critically damage the global economy.
The debt ceiling will be under scrutiny more than ever, interest rates may have to rise, and Congress is crippled.
An inflating dollar is inevitable now, further souring trust and speeding decline in the reserve currency.
It is the beginning of the End Of The Fed.
Looks like the big checkmate to me…
If the dollar domination dissolves, we’re all in deep do-do. No one will escape the effects, including preppers (although being prepared will ease the pain).
History has shown that any nation that begins to move away from the pegged petro-dollar for oil is wiped out in one way or another.
Will the ‘powers-that-be’ start war with China? Would it be convenient to use NK as a pretext?
“So all that “huffing & puffing” from the midget in North Korea was really just a distraction while China/Russia snuck their monetary weapon to unseat the petro-dollar through the back door?.”
How might this affect you and me?
If it’s successful, Americans will end up paying LOTS MORE for anything and everything. And this will crush what’s left of this phony baloney economy.
no petro dollar = world war
no petro dollar = civil war
How might this affect the price of gold?
Gold priced in deflated dollars will be astronomically high.
There is LOTS going on right now that could badly affect you and I. Keep prepping. You might look at it from the perspective of what would happen “if” things begin to cost lots more. What will that do to your budget, your own situation. Then look at it from how it would affect those around you. The rest of Americans (and others). How would that hardship translate to turmoil, resource availability, and how would that end up affecting you…
Things never remain the same for long. So plan on it.
source of info for this report:
De-Dollarization Accelerates: China Readies Yuan-Priced Crude Oil Benchmark Backed By Gold