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Rise of the Petro Yuan

General discussions of the systemic, societal and civilisational effects of depletion.

Rise of the Petro Yuan

Unread postby misterno » Sun 28 Apr 2013, 13:18:23

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Re: Rise of the Petro Yuan

Unread postby ROCKMAN » Sun 28 Apr 2013, 15:57:13

M - Your thread ties well with my story about China moving very hard into the refining end of the trade. From ... etrodollar

“The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. The petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia's most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy?”

The new plant will be built in the EU backyard. Over the next 10 years it will refine $1.2 TRILLION (current price) in Saudi oil and sell about $1.4 $TRILLION in product… very likely to the EU. And that’s just one of many refineries that China is developing around the world. And even though I used $’s there will be no need for a single US buck to be used, And, for that matter, not a single Chinese yuan either. The EU consumers can pay in euros which China and Saudi can use to buy EU products…or use to buy from any other country since they all accept euros.

And unlike the Chinese strategy of controlling oil in the ground none of this oil going through the new refinery belongs to China…it belongs to the Saudis. These new plants will also be able to produce higher value products than the older plants especially in the US. Thus China can pay more for the crude they don’t control than most other refineries around the world. They may be just as glad to sell to US consumers who can pay the market price. But, if supplies grow short, they can chose to ship those products to China even if other global consumers can offer a higher price. During such times a govt mandate trumps the free market.
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Will The Dollar Survive The Rise Of The Yuan And The End Of

Unread postby AdamB » Fri 12 Jan 2018, 09:57:24

This might seem a frivolous question, while the dollar still retains its might, and is universally accepted in preference to other, less stable fiat currencies. However, it is becoming clear, at least to independent monetary observers, that in 2018 the dollar’s primacy will be challenged by the yuan as the pricing medium for energy and other key industrial commodities. After all, the dollar’s role as the legacy trade medium is no longer appropriate, given that China’s trade is now driving the global economy, not America’s. At the very least, if the dollar’s future role diminishes, then there will be surplus dollars, which unless they are withdrawn from circulation entirely, will result in a lower dollar on the foreign exchanges. While it is possible for the Fed to contract the quantity of base money (indeed this is the implication of its desire

Will The Dollar Survive The Rise Of The Yuan And The End Of The Petrodollar?
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