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Dollar no longer primary oil currency as China begins to sell oil using Yuan

Dollar no longer primary oil currency as China begins to sell oil using Yuan thumbnail
Oil Sources for China
On Sept. 11, Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970′s, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency.

Lindsey Williams: “The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine.”

“On Thursday, Sept. 6… just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. – Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

This announcement by China is one of the most significant sea changes in the global economic and monetary systems, but was barely reported on due to its announcement taking place during the Democratic convention last week. The ramifications of this new action are vast, and could very well be the catalyst that brings down the dollar as the global reserve currency, and change the entire landscape of how the world purchases energy.

Ironically, since Sept. 6, the U.S. dollar has fallen from 81.467 on the index to today’s price of 79.73. While analysts will focus on actions taking place in the Eurozone, and expected easing signals from the Federal Reserve on Thursday regarding the fall of the dollar, it is not coincidence that the dollar began to lose strength on the very day of China’s announcement.

Since China is not a natural oil producing nation, the question most people will ask is how will the Asian economic power get enough oil to affect dollar hegemony? That question was also answered by Lindsey Williams when he pointed out a new trade agreement that was signed on Sept. 7 between China and Russia, in which the Russian Federation agreed to sell oil to China in any and all amounts they desired.

Lindsey Williams: “This has never happened in the history of crude oil. Since crude oil became the motivating force behind our (U.S.) entire economy, and everything in our lives revolves around crude oil. And since crude oil became the motivating factor behind our economy… never, ever has crude oil been sold, bought, traded, in any country in the world, without using the American dollar.”

“Crude oil is the standard currency of the world. Not the Yen, not the Pound, not the Dollar. More money is transferred around the world in crude oil than in any other product.”

“On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want… there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar.” -Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

These duo actions by the two most powerful adversaries of the U.S. economy and empire, have now joined in to make a move to attack the primary economic stronghold that keeps America as the most powerful economic superpower. Once the majority of the world begins to bypass the dollar, and purchase oil in other currencies, then the full weight of our debt and diminished manufacturing structure will come crashing down on the American people.

This new agreement between Russia and China also has serious ramifications in regards to Iran, and the rest of the Middle East. No longer will U.S. sanctions against Iran have a measurable affect, as the rogue nation can simply choose to sell its oil to China, and receive Yuan in return, and use that currency to trade for the necessary resources it needs to sustain its economy and nuclear programs.

The world changed last week, and there was nary a word spoken by Wall Street or by politicians who reveled in their own magnificence as this event took place during the party conventions. A major blow was done on Sept. 6 to the American empire, and to the power of the U.S. dollar as the world’s reserve currency. And China, along with Russia, are now aiming to become the controllers of energy, and thus, controllers of a new petro-currency.

For more on finance and economics, you can follow Ken Schortgen Jr on Twitter, and listen to the weekly economic roundup segment of the Angel Clark radio show from 6-7p.m. est on Friday evenings.

 

examiner



19 Comments on "Dollar no longer primary oil currency as China begins to sell oil using Yuan"

  1. DC on Fri, 21st Sep 2012 12:13 am 

    This is wonderful news! Lets hope the empire begins to un-ravel even faster now. No amount of ‘stimulus’ or QE can save the US if more and more countries get on board with this. Amerika will never control Russia’s oil, and Mr Putin was more than correct to keep there grubby mitts off Russia energy supplies. Now the US undermining the Euro, and the murder of Saddam Hussein and M. Ghaddifi make sense. None of them worked, except to delay the inevitable. Question is, will the US step up its efforts to destabalize Russia and China through it numerous faux-NGO’s. I see over in the main forum that Russia is kicking out the so-called USAID

    http://peakoil.com/forums/viewtopic.php?f=3&t=66764

    Could that be related as well?

  2. BillT on Fri, 21st Sep 2012 12:33 am 

    Yes,DC, this is a wonderful event and that is why it was ignored by the Empire’s MSM. The anti-dollar move can only grow from this point into a real challenge for the US. More than half of the world’s population (China, Russia, Japan, Brazil, India, etc.)now has somne form of agreement to trade in other than dollars.

    Most Americans do not have a clue as to how their dollar works in the world to keep their lifestyles flying. I think they will soon get a crash course in reality. Yes, I am an American and my income is also in dollars … but I too am working to get out from under that burden as fast as possible.

  3. Rick on Fri, 21st Sep 2012 1:39 am 

    No surprise here. BillT and DC are correct. Sad though. We the empire like to murder, or setup puppets, then kill them to keep the oil flowing.

    There is no good end to this. You can already see things falling apart. And as we continue to burn more fossil fuel, I personally think mother nature will kill all of us, faster then Wall Street, or the big oil assholes. Which are the cause of climate change, and too many freaking people aka stupid humans.

    Finally, as someone who is in great shape, who rides a bicycle, who can ride over 300 miles in one day, I’m so sick of the following:

    Obese Americans
    Obese Americans who drive SUVs
    Obese Americans who have no money and vote for repugs, and have tats

    I’m just sick of stupid obese Americans

    This is what the elite want.

  4. Cloud9 on Fri, 21st Sep 2012 1:59 am 

    Easy to welcome the coming chaos while the lights are still on.

  5. DMyers on Fri, 21st Sep 2012 3:02 am 

    Cloud9 makes a good point. We want closure but can’t imagine the mechanism through which it would occur. That is, you might get what you wished for, but it carry’s some baggage that you didn’t wish for.

  6. Ken Nohe on Fri, 21st Sep 2012 5:18 am 

    Completely agree with Cloud9.

    Yes the US over benefited from the supremacy of the USD but we (in developed countries) also benefited from the post war stability that the system provided.

    If we break it apart, and I have little doubt we will under stress, trade will decline and we will all suffer. It may be a necessity to build something new but it is likely that none of us alive today will see the end result; just the chaos in-between. Is this really something to wish for?

  7. Arthur on Fri, 21st Sep 2012 7:37 am 

    Is there any other source than pastor Williams? Was he not the one who claimed that the US has unlimited oil supplies?

    http://www.lindseywilliams.net/

    There is no reason why European msm would not want to report on such a major move. Would like to see confirmation first.

  8. Jimmy on Fri, 21st Sep 2012 8:13 am 

    Should this report be true, then the most prudent thing for anyone who may shortly encounter a very sharp increase in their cost of living, is to grow your own food.

    Think about it, most civilisations in history have existed without fossil fuels. Our biggest problem is overconsumption and waste. If we reduced consumption to buddhist monk levels, and grew food, we would be ok.

    Solution? Oyster mushrooms grown on waste coffee grounds. you will get 10% yield, which is survival food, health food and medicine rolled into one.

  9. Arthur on Fri, 21st Sep 2012 8:38 am 

    Two years ago Chinese msm already announced that something like this was in the works:

    http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm

  10. Beery on Fri, 21st Sep 2012 10:53 am 

    I’m with Cloud9 also. Those who think we’re going to enjoy the downslope have another think coming.

    And Rick, you’ve ridden 300 miles in one day? I find that kinda hard to believe. That’s 15 hours all-out riding. In my 20s, during a 10,000 mile cycling tour, I cycled 100 miles on occasional days, and every time I did it, it wiped me out. Physically fit is one thing, but 300 miles in one day is looney tunes.

  11. Arthur on Fri, 21st Sep 2012 11:27 am 

    Cloud9 is right of course. While there is a certain satisfaction for us peakers in playing the clever Nostradamus, knowing it all much better than these ignoramuses out there, seated in a warm study, with a cup of coffee next to the keyboard and a bank account still in the plus, once fate strikes this satisfaction will be melting faster than the polar ice cap.

  12. BillT on Fri, 21st Sep 2012 11:51 am 

    Perhaps we who still sit in comfort and hope for the end, DO understand and still hope for the end of the current system. Why? Because it might just leave a livable world for our descendants. If the current system continues for much longer, that will no longer apply and, as a species, we may be killed off by Mother Nature, who’s laws are NOT negotiable.

    And why should Europe MSM mention something that will crash the Euro also? Do you think that they are that independent of the dollar? Not so! Europe will also crash when the dollar goes. As will many other currencies, but not as much.

    I have read about this in many other articles over the last year regarding trade payment in other than dollars. There is at least 8 countries currently trading or setting up trade in their own currencies with other countries, Russia and China being the major ones.

  13. Arthur on Fri, 21st Sep 2012 12:33 pm 

    The way things are going now, it will be the American population who will experience the largest setback of all. And that is because of the policies of Washington and the ruling neoco(he)ns and their ludicrous aim of setting up a world empire (another “American Century”). This is mobilizing the entire world against the US, to start with China, Russia and Iran plus the rest of the muslim world. And don’t count too much on Europe either as it is the explicit goal of the EU to pursue a multipolar world with the EU as an independent pole itself. And this number of enemies is too large a chunk which the US can not swallow.

    The rest of the world sees the US as the enemy to beat and are looking for ways to hurt the US short of starting a war. And the point to attack is the dollar. The entire world now is wakening up to the fact that reserve currency dollar has an enormous advantage over the rest of the world in that it allows the US to insert ‘by stealth’ ever more dollars into the world financial system in exchange for real values, like oil. There is no real reason why the American population should be earning, what is it, 40k$ per capita and for example the Ukrainians something like 5k$. The real reason is not merit or IQ but has far more to do with the beneficial circumstances in 1945, when the US could create global financial institutions to it’s own advantage, with number one advantage the dollar as reserve currency of the western world, which even could rise to global currency status after the demise of the former US ally USSR. In the current situation the dollar is a free lunch for the American public, so if I were an American I would not be too jubilant about the impending crash of the dollar, unless of course if you are Canadian, Dutch or a Philipines expat.

    BTW, the euro is *not* going to crash, but is going to be the laughing third of the US-SCO rivalry. Europe is, correctly, not seen as a threat to either Russia or China. The latter two prefer the rise of the euro in international trade as long as it comes at the cost of the dollar. Euro’s are just as useful as the dollar as Europe is able to deliver high quality goods and services for these euro’s and still is more disciplined regarding money printing, thanks to the Germans, than the US. Neither Greece nor Spain will leave the euro, even if they are going to default, which is very well possible, certainly for Greece. At this very moment the Greeks are reorganizing at grass root level, setting up (nationalist) structures, enabling the poorest to survive through nationalist cohesive groups. They do not need the state as they are busy creating a new (nationalist) state that is going to replace the NWO satraps in Athens. If you want to know how life is going to be in, say Montana, after the dollar crash, study Greece.

  14. Hugh Culliton on Fri, 21st Sep 2012 1:59 pm 

    I’m glad I doubled my garden’s produce this last summer. It seems we’ll be relying on it more heavily for our daily calories in the near future. It sucks to be living at the end of empire. As a historian, I now understand how the British felt in the late 1940s. Unfortunatly this time, I’ll have to start learning another language.

  15. SOS on Fri, 21st Sep 2012 3:37 pm 

    LOL. Arent our schools terrible. Look at some of the responses! LOL You need logic to come to proper conslucsions when interpreting data. You need critical thinking skills to understand cause and effect. I see a serious lack of these skills here and realize those skills have been replaced with emotional, programmed responses.

  16. shortonoil on Fri, 21st Sep 2012 3:58 pm 

    If anybody thinks that China and Russia are going to be a problem for the US they should take a look at the water cut of Russian fields.

    http://www.lukoil.com/materials/doc/DataBook/DBP/2011/part_03.pdf

  17. csatadi on Fri, 21st Sep 2012 5:02 pm 

    Chinese are not so stupid to ruin US economy. They need places where they can sell their products.

  18. montanaconserv on Fri, 21st Sep 2012 5:17 pm 

    One thing to note..if you think that crashing the dollar will only affect the USA, you are sorely mistaken. This will be a global wide crash.. and when no one can afford to buy oil, it doesn’t matter who is selling it.

  19. DC on Fri, 21st Sep 2012 10:37 pm 

    China isnt ‘trying’ to ruin amerika’s ‘economy’. The amerikans are doing a fine job all on there own. No one is ‘helping’ them. True, its not in Chinas interest to see the US economy crater, but they cant really prevent it from happening either. That being the case, the best thing to do, is prepare for it, since its going to happen one way or the other. sooner or later.
    To keep accepting the increasingly worthless US dollar is not a good move, in the medium or long term.