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World News See other World News Articles Title: Will China Force the Saudis to Dump the Dollar? RI... The East is the greatest threat to the petrodollar — and Saudi Arabia is already eyeing oil trade in yuan Should we welcome closer ties between Saudi Arabia and China? As the Asia Times writes, "China’s slow intertwining with Saudi Arabia complements the Sino-Russo alliance. Primarily, its benefits could lead to a realistic threat to the petrodollar." While we'd prefer Saudi Arabia to disappear entirely, if it has to exist — and from a pragmatic standpoint, it probably isn't going anywhere — it would greatly benefit the world if Riyadh dumped the dollar and adopted the yuan. It's not as crazy as it sounds. Russia became one of China's leading energy partners by cutting deals in yaun. In March, Russia once again beat Saudi Arabia as China's top crude oiler exporter. Last month, Saudi Arabia's King Salman oversaw the signing of deals worth as much as $65 billion on the first day of a visit to Beijing. As Reuters reports, "Saudi Arabia has sought to boost oil sales to China, the world's second-largest oil market, after losing market share to Russia last year, by working mostly with China's top three state oil firms." What if the Saudis decide to dump the dollar and euro and go with the yuan — or even gold? This excellent analysis by Andrew Brennan at Asia Times explains why China is a major threat to the petrodollar, and how the Saudis are likely to react. An excerpt: The Russian Central Bank opened its first overseas office in Beijing as an early step in phasing in a gold-backed standard of trade. This would be done by finalizing the issuance of the first federal loan bonds denominated in Chinese yuan and to allow gold imports from Russia. The Chinese government wishes to internationalize the yuan, and conduct trade in yuan as it has been doing, and is beginning to increase trade with Russia. They’ve been taking these steps with bilateral trading, native trading systems and so on. However, when Russia and China agreed on their bilateral US$400 billion pipeline deal, China wished to, and did, pay for the pipeline with yuan treasury bonds, and then later for Russian oil in yuan. This evasion of, and unprecedented breakaway from, the reign of the US dollar monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese yuan for gold. The Russians are already taking Chinese yuan, made from the sales of their oil to China, back to the Shanghai Gold Exchange to then buy gold with yuan-denominated gold futures contracts – basically a barter system or trade. The Chinese are hoping that by starting to assimilate the yuan futures contract for oil, facilitating the payment of oil in yuan, the hedging of which will be done in Shanghai, it will allow the yuan to be perceived as a primary currency for trading oil. The world’s top importer (China) and exporter (Russia) are taking steps to convert payments into gold. This is known. So, who would be the greatest asset to lure into trading oil for yuan? The Saudis, of course. All the Chinese need is for the Saudis to sell China oil in exchange for yuan. If the House of Saud decides to pursue that exchange, the Gulf petro-monarchies will follow suit, and then Nigeria, and so on. This will fundamentally threaten the petrodollar. Now the argument is that if China does this it will put a slam on Chinese exports, but China is undergoing an intentional metamorphosis from a producer and exporter to a service and consumer economy of internal products. Look to China’s technology sector, e-commerce sector, and other domestic sectors that will provide a large market for sustainable service and growth. A second argument against this train of thought is that maybe China doesn’t want the yuan to be a world reserve currency but just have a strong currency; a gold-backed yuan currency. Having a gold trade note may not hurt Chinese exports as it transforms its economy and its future exports. Beijing may also have thought that if Saudi Arabia is persuaded to trade in yuan or gold-backed yuan, etc, South Korea and Japan may follow suit, as both have been looking to detach from the US dollar. China and Iran were the first to initiate bypassing the dollar, followed by Russia circumventing the SWIFT system and then India beginning to move away from the US dollar and starting bilateral trade deals. China and Japan made moves to trade directly, as did Japan with India, bypassing the dollar. The use of alternative payment systems like gold, yuan, rupees, rubles and other monies, fiat and not, to evade the potential of sanctions and seizures of the US dollar, or its decline, are seen as favorable. What decline? Well, we can look at the historic East-West cycle, the baby-boom demographic in the West, the growing inequality in the wealth distribution cycle, the ratio of household debt as a percentage of disposable income, and for you history buffs, the Kondratiev wave are all peaking and are descending into a deflationary wave. Wait, what? Okay, all of those mentioned cycles are economic swings of wealth. Everything is pointing towards a declining West and a rising East. But we can equally blame central bankers’ quantitative easing policies of printing to prosperity. The idea is a falsity that also has only benefited the wealthier classes, and can’t beat back cyclical pressure. A shift in world monetary systems is occurring. The Chinese economy has begun an economic restructuring and focus on domestic production and services. The Trump administration thinks weakening the US dollar will help American exports and likewise respectfully grow the US economy (or “grow” within the confines of the current monetary system). However, the overvalued dollar has subsidized the cherished “American standard of living,” and any weakening will now have detrimental effects. The US needs to also restructure its economy to one that is based on production. It can no longer continue to run a debt-serviced economy that imports all goods it doesn’t produce. It’s unsustainable, and the continuous mistake of many. The wealth of the world is shifting eastwards. The petrodollar is the last vestige of that “American standard of living” middle America cherishes, and if the gold trade bonds fly and yuan changes hands as the oil flows, the US is going to get a shock when Saudi Arabia likes the look of red paper as much as green, or worse yet, yellow metal, a lot of which is moving east. WE'RE ON PATREON! Join the community of monthly pledgers for any amount! An easy way to automate the dropping of neutron truth bombs on the sad msm Poster Comment: louis robert • Ultimately irresistible, a shift of power and of wealth to the East has been ongoing for decades now. That shift includes a noticeable and equally irresistible new world order for all in the making, and fast falling into place. That very much accounts for the hysteria, the panic, and the militaristic insanity that have been noticed increasing in the Empire's political quarters, these past few years, all the way to Russia's and to China's very borders. "America first" means America is not first anymore. "America über alles" means it cannot possibly be über alles anymore; above all, it simply cannot afford to. The silly game of imperial, hegemonic make-believe is now over. The Empire has simply gone too far in destroying countries and killing millions of innocent people throughout the world. Busy building a new world, humanity is no longer impressed by such feats, even in the West and within said Empire. President Putin at the UN: "Do you realise what you have done?" Trump's shows of force cannot and therefore will not change any of that. "All options being on the table", as our "Mad Dogs" like to say, self-destruction is nonetheless not a viable, sustainable option for the last, fast declining Empire. Talleyrand to Napoleon, a reminder: "It is a marvel, Sire, everything you can accomplish with bayonets. Alas, not even you can sit on them." -- To be quite explicit, not even the so-called "indispensable" Empire can sit and rest on its countless weapons, including atomic ones. It can only self-destruct in attempting it. As we can all see more clearly with each passing day, THAT predicament is rightly called, "imperial game over"! +2 Tatarewicz /louis robert • "America first" was just a naive commitment by Trump to look after domestic affairs. Technologically, entrepreneurly, academically and militarily US is recognized as tops without having to make such claims; brightest students in the world seek its universities and research institutes. US military incursions into Afghanistan, Iraq, Syria, hassling Russia and Iran are all part of an "obligation" under a connived Shylockian contract Zionist/neocon Jews imposed on America whereby the Israeli lobby along with Jew-controlled media makes sure only Israel-supporting Democrats and Republicans are elected to Congress which is the board of directors of America. Inc and to which the president and administration are accountable. President Trump may proclaim America First but his top priority has to be Israel's security. Yoast • "The wealth of the world is shifting eastwards" and so does the global elite. The House of Saud is the US elite's best friend. They are not Assad or Ghadaffi. When they dump the petrodollar it is with the global elite's permission and all the rats abandon the sinking ship that is the USA. They may even provoke a nuclear exchange to clear the map. Tatarewicz Yoast • Well, the largest banks in Russia after that of the State are US elites Goldman Sacks and JP Morgan. Seem exempt from sanctions. CyricRenner mark • That is a little bit misleading. Its not just a question of either state or private ownership. In Russia's case it seems to be quasi-state owned. More importantly is the question if the state's central bank goes through the International bank of settlements. Russia does. The other claim is that Rothschild owns 99.9% of all the central banks in the world. How can this claim be documented ? Try finding out who owns a central bank is no easy task. Also, with the enormous wealth Rothschild has, try finding their name on anything. They have done a fantastic job of concealing it. Red Tick Alert/ CyricRenner • Start from here and do some work and find out your answer - https://realcurrencies.word... Many factual sites have now been labelled a threat so the information is still there, but difficult to get. http://fourwinds10.com/site... Kjell Hasthi/ Nexusfast123 • I belong to them who would like all cities have there own currency - that may be a paper. Not difficult to make, and no gold is needed. The value will be what you can buy for it locally Avatar Nexusfast123/ Kjell Hasthi • There are many communities like that around the world. Many communities in France don't use the Euro. They use a local 'coupon' as although barter is good it is not always easy to do. Ignored by the MSM. They can squeeze the balloon but people in communities will find alternatives to the centralised idiocy. https://www.rt.com/business... +2 John Brown • If the Saudis dare to defy their racist, supremacist, Jewish, masters and abandon the private, federal reserve, Zionist, Jewish dollar, Israel will have all its slave vassals NATO and the USA attack Saudi immediately and probably send in more then 200k ISIS fighters etc and overthrow the Saudi government in less then a month. Tatarewicz/ John Brown • Saudis are even more Jewish than Israel's Khazars. Started out as a band of treacherous Iraqi Jews. That's why as "Arabs"they get along with Israel. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Tatarewicz (#0)
Saudi Arabia doesn't dare stop trading the petrodollar because they know USA would bomb and invade them and set up a puppet government that takes orders from the USA.
=========================== china AND russia together will U.S. Constitution - Article IV, Section 4: NO BORDERS + NO LAWS = NO COUNTRY
They are already our puppet government and yeah, any of those sheiks get any ideas and they'll be meeting their 72 virgins in person. ______________________________________ Suspect all media / resist bad propaganda/Learn NLP everyday everyway ;) If you don't control your mind someone else will.
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