Three weeks after the US imposed financial sanctions on Venezuela in an effort to cripple its economy and choke the Maduro regime, which in turn prompted Caracas to announce it would no longer receive or send payments in dollars, and that those who wished to trade Venezuelan crude would have to do so in Chinese Yuan, today during an energy summit held in Moscow, Venezuela’s president Nicolas Maduro proposed to expand his own personal blockade of the US, by proposing that all oil producing countries discuss creating a currency basket for trading crude and refined products. One which is no longer reliant on the (petro)dollar.
“Developing a new mechanism of controlling the oil market is necessary,” Maduro said on Wednesday at the Russian Energy Forum, being held in Moscow this week.
Quoted by RT, Maduro also blamed trade in crude oil paper futures as having an adverse impact on the oil market, which has undermined attempts by OPEC to stabilize prices. To counteract such “speculation”, Maduro proposed an alternative currency basket, one which is based not on the world’s reserve currency but includes the yuan, ruble, and other currencies, and which will mitigate the alleged adverse impact of futures trading.
Maduro’s proposal is merely the latest not so veiled hint at dedolarizing the global financial system by bypassing the petrodollar entirely, and rearranging a new currency basket determined by the world’s biggest oil producer, and largest oil importer.
Of course, Maduro is merely piggybacking on what China may already have in the works: recall that a month ago, the Nikkei Asian Review reported that 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.
Maduro also insisted that Venezuela is dealing with its debt to Russia, currently in the billions, and that Rosneft’s deal with Venezuelan state oil producer PDVSA is “subject to negotiation.” “We fulfill all the obligations to Russia. If we get more favorable terms for restructuring the debt, this will be the result of a deal between the two governments,” said Maduro. It was unclear how Putin felt toward said proposal.
Maduro also complained that US sanctions make it difficult to negotiate the debt issue with American debt holders (something the US is well aware of). In addition to switching to a Yuan-based basket…
… Caracas has been framing a plan to deliver its crude to alternative markets should the White House impose sanctions on trading the country’s oil, Maduro said in response to a question on the possibility of PDVSA’s default. “Venezuela has plans A, B, C, and others. There are other international companies interested in buying oil and refined products. We will create the best terms for them,” he said.
It remains to be seen if a last minute agreement by Russia and China to bailout Venezuela by revoking some or all of the petrodollar’s reserve currency privileges, is in store. Needless to say, such a development would be the biggest shock to the global monetary system since Nixon killed the gold standard.
pointer on Thu, 5th Oct 2017 7:38 am
“Developing a new mechanism of controlling the oil market is necessary”
Silly me. I thought the oil market is controlled by supply and demand.
Cloggie on Thu, 5th Oct 2017 8:00 am
Eurasia is a magnet.
deadlykillerbeaz on Thu, 5th Oct 2017 8:39 am
Venezuela owes money to the Russians and the Chinamen. Oil will be expensive in rubles and Yuan.
57 rubles to a dollar, used to be 39.
50×57=2850 rubles for a barrel of Venezuelan oil.
An old Romanian bought three heads of cabbage from me one day for ten dollars.
He held up the ten dollar bill and said, “This is Chinese money, you know.”
Davy on Thu, 5th Oct 2017 8:55 am
Magnet for loser countries
Duncan Idaho on Thu, 5th Oct 2017 9:00 am
When the new heavy oil refinery, being built by the Chinese and ahead of schedule, is finished in 2018 it will probably be game over, and Venezuela’s status as a US client State of the past will forever be gone.
The Worlds largest reserves will be open for business.
eugene on Thu, 5th Oct 2017 9:01 am
The US has controlled the price of oil through manipulation of the dollar much to the detriment of many countries. If this shift away from the dollar occurs, it will have major impact on the value of the dollar which, in turn, will have major impact on our cost of living.
Cloggie on Thu, 5th Oct 2017 9:08 am
“Loser countries” with a lot of oil.
Can’t be said of real loser country Ukraine, the only “asset” the US acquired lately.
Davy on Thu, 5th Oct 2017 9:21 am
Loser country with very expensive oil once bad debt is calculated.
GregT on Thu, 5th Oct 2017 12:42 pm
Loser countries are tired of losing, and will no longer allow their oil to be sold in USDs. A win win for the former loser countries. Not so good for the former “winner”.
Davy on Thu, 5th Oct 2017 1:28 pm
good news for all.
GregT on Thu, 5th Oct 2017 1:33 pm
Only if one considers the demise of the petrodollar to be good news. I do not. The implications for North Americans will be dire.
GregT on Thu, 5th Oct 2017 1:37 pm
Think about Deagel.com. Read the disclaimer.
Davy on Thu, 5th Oct 2017 1:41 pm
“Only if one considers the demise of the petrodollar to be good news. I do not. The implications for North Americans will be dire.”
We will be fine grehg. You don’t know what you are talking about anyway. You anti-Americans harp about the petro dollar like it is that special circumstance that is going to bring down the evil empire you all obsess over constantly. Petrodollar is so 20th century. We are in the 21st century of repressed and liquidity managed economies that are interconnected. They are hard wired to a common denominator of debt and frothy debt and equity markets. All major economies depend on each other and they are all exposed to the risks of the others. There is no alternative to this situation except collapse. You can’t see that because you are a flaming anti-American Deagel dot com bum.
GregT on Thu, 5th Oct 2017 1:53 pm
The demise of the petrodollar wil adversely affect Canada as well. Government, policy makers, and business leaders, are increasingly looking Eastward. While that may help, it will not completely mitigate the effects on Canada, from the collapse of the petrodollar. This is very bad news for North Americans in general.
Davy on Thu, 5th Oct 2017 1:57 pm
“Think about Deagel.com. Read the disclaimer.”
OOOH, grehg is running from his support of Deagel dot com? Grehg it is already documented you agree with the findings. Your attitudes are towards the destruction of the American economy and government and its replacement with something much smaller and less globally engaged is completely obvious and well documented. You are a flaming rabid extremist anti-American. You may try to have this aura of respectability but on the inside you are dark and violent. You being a means justifies the end kind of guy finds Deagel dot com sweet. Why sweet, because it allows for population reductions and that reduction is with a high consumption population. Wham/bam, two birds with one stone grehger. You are also an Asiaphile and believe in the noble 3rd world subsistence farmers as the future. You want to save the planet by lowering consumption and give this saved planet to the noble 3rd world’er. Wham/bam, Deagel dot com is perfect. 280MIL dead Americans later and an increase in China’s population and (get this) economy. That is perfect for you and mad-cat1. That would be the dawning of a new age for you. You know with a means justifies the ends kind of guy then sacrificing 280MIL Americans to save the world and make life better for the noble 3rd world’er is worth it. It’s all abstract in your head anyway. Kill the empire and free the world to live. The only problem it is not that simple and that type of attitude is like how a very dangerous leader thought around 77 years ago. He had abstract visions of idealism. It was sick and wicked but a whole people fell for it. That is the kind of person you are grehger.
GregT on Thu, 5th Oct 2017 2:01 pm
Exactly what I was referring to in another post. Get rid of your cellphone, and go speak with a medical professional. This forum is fuelling your delusions, and your condition will only continue to deteriorate.
Get help.
Davy on Thu, 5th Oct 2017 2:33 pm
Grehger, look in the mirror please before you hurt someone. You described yourself perfectly. People do that with psychological projection. You are a danger to those around you and a gun nut. That is a bad combination. get help please.
Cloggie on Thu, 5th Oct 2017 2:46 pm
Another “looser country” hedging its bets:
http://peakoil.com/publicpolicy/king-salman-visits-russia-something-is-brewing
Davy on Thu, 5th Oct 2017 2:54 pm
awesome, many of us Americans are for a multipolar world
Davy on Thu, 5th Oct 2017 3:00 pm
“7 Independence Movements That Could Destroy The EU”
http://tinyurl.com/y8h5746w
“Catalonia continues to press on with its independence movement, much to the dismay of Spain and the European Union. Catalonia is not the only region in the EU demanding more autonomy or independence. Here are seven regions in the European Union that may seek separation, and cause more fragmentation in an already weakened Europe.”
1. Scotland, Britain
2. Flanders, Belgium
3. Basques, Spain
4. New Caledonia, France
5. Corsica, France
6. Faroe Islands, Denmark
7. Lombardy and Veneto, Italy
Davy on Thu, 5th Oct 2017 3:00 pm
“Defying Spanish Defense Ministry’s Civil War Threat, Catalans To Hold Debate Monday”
http://tinyurl.com/y6v6vh5f
“Spanish (and European) stocks surged this afternoon as headlines crossed that Catalan separatists were hoping to ‘stall’ proceedings in hope of negotiating with Madrid. That hopeful headline appears to have been crushed now as Bloomberg reports the Catalan regional parliament intends to meet as planned Monday, defying a suspension by Spain’s Constitutional Court. As Bloomberg reports, Jordi Sanchez, who heads the Catalan National Assembly, said that lawmakers may need to gather in an alternative venue, but that the debate on an illegal referendum on independence from Spain will take place. Sanchez collaborates closely with Regional President Carles Puigdemont and the speaker in the Catalan legislature, Carme Forcadell. He helped organize the vote on Oct. 1. “There will be some formula for the Catalan Parliament to convene and hold its meeting as planned,” Sanchez said in an interview in Barcelona. “There will be a plenary session.”
“Why is this so ominous? Simple, Article 8 of the Spanish Constitution states that Spain’s Armed Forces have the “mission of guaranteeing the sovereignty and independence of Spain, of defending her territorial integrity and constitutional order”. In other words – if the Catalans push for secession, thus breaking the ‘territorial integrity’ of the sovereign state, then Spain can send in the military to ‘fix’ the problem.”
Apneaman on Thu, 5th Oct 2017 3:41 pm
clog, this one is special, just for you.
https://www.youtube.com/watch?v=uyK6io7VQnU
GregT on Thu, 5th Oct 2017 3:55 pm
You’ve deteriorated so badly over the last 4 years, that you can’t even tell the difference between your delusions and reality anymore. Sad.
Davy on Thu, 5th Oct 2017 5:16 pm
One thing that has remained the same with you grehger is your pompous attitude. You also still act like a dork. Lately you are going off into a la la world with you boyfriend mad-cat1. The two of you are the dork duo. This is fun grehger. You come to play everyday and get slapped silly and you keep coming back for more. That is becuase you obsessively stalk Americans and then prick them but with me you get pricked back. You have that too big to hide BC pride from the butthole of the continent to bad I make you look silly.
makati1 on Thu, 5th Oct 2017 5:25 pm
The demise of the petrodollar will be the end of America as Americans have known it. No more printing press dollars to spend plundering other countries. No more consuming 25% of the world’s resources. A 3rd world lifestyle for all but the very wealthy. Poverty like has not been seen since the Great Depression. A civil war or even a revolution is possible. We shall see.
If the Saudis start selling oil for gold, it is game over for the US. Keep in mind that the customer is always right in sales and China is the largest customer of oil today.
“If you want my business, you will accept yuan in payment”. The day is coming. Are you prepared?
GregT on Thu, 5th Oct 2017 5:56 pm
Your paranoid delusions are contining to get far more involved and complex. There is a fine line here that you do not want to cross. Your choice.
Davy on Thu, 5th Oct 2017 6:01 pm
Mad-cat1, you have any details on the mechanics of how this is going to happen or was the above your emotional feelings?
Davy on Thu, 5th Oct 2017 6:04 pm
Ooh, grehger, has put the line in the sand. Whatcha gonna do cowboy? LMFAO. Go bite yourself chump!
rockman on Thu, 5th Oct 2017 6:19 pm
OK, lots of interesting views. But I didn’t noticed anyone directly addressing a point I’ve brought up before. Venezuela currently buys about $11 BILLION per year in goods and services from US companies. So exactly what denomination does it plan to use to make these purchases? And the more critical question: what denomination will US companies require? Will a company selling corn to Venezuela accept payment in rubles or yuan? IOW will Venezuela have to exchange whatever currency they have for US dollars to make those purchases because it no longer accepts US dollars for its oil?
Also guess what else Venezuela is importing from the US: OIL. Yes, from 2016:
“Venezuela has more oil than any other country on the planet. But it just bought a bunch of American crude. A ship carrying half a million barrels of oil that was pumped in the U.S. docked at a terminal owned by Venezuela last week.”
Why from the US?. Because it cost less the shipping it from Libya, which it has done it the past. Which also emphasises the stupidity of all those statements that condensate/light oil has little value. It is critical to Venezuela heavy oil production and Alberta oil sands producers as well as Canadian and US refineries.
Also there’s something folks should understand how financial transactions conducted between Latin American countries, while not using US denominated transactions, are still tied at the hip to the US dollar:
“Although not intended as a trade barrier to U.S. exporters, currency exchange requirements can place U.S. exporters at a disadvantage, especially to regional competitors that benefit from the Unitary Unit of Regional Compensation (or SUCRE), a virtual currency used among members of the trade bloc Bolivarian Alliance for the Americas (ALBA) and the transaction preferences of the ALADI Trade Treaty (Latin America Integration Association). The SUCRE is virtual currency pegged to the U.S. dollar and allows businesses in ALBA countries to process offsetting commercial transactions, without a physical transmission of a payment, through Banco del ALBA, a Caracas-based bank founded by member countries.”
So again the same question as asked before: exactly how is the US hurt by a Russian company getting paid in yuan for NG it sells to a Chinese company? Or, conversely, how exactly does the US benefit for China to pay for that NG in US dollars? US dollars which China has a sh*t load of. And if China doesn’t spend all the US dollars it receives and they stay out of circulation indefinitely how is that a bad thing?
Folks constantly rant of the “end of the petrodollar” is bad news for the US but never detail why. So, give it a shot.
makati1 on Thu, 5th Oct 2017 6:19 pm
Davy, it is already happening. The list of countries already buying oil in other currencies is growing. All you have to do is watch the trend to know the end result.
makati1 on Thu, 5th Oct 2017 6:21 pm
Rockman, perhaps they will no longer buy from the US? I am sure other countries would be happy to step in and replace American goods with their own. China comes to mind, as does Russia. The US is NOT indispensable.
Davy on Thu, 5th Oct 2017 7:22 pm
great comment Rock
GregT on Thu, 5th Oct 2017 8:03 pm
The petrodollar is the main reason for the USD maintaining reserve currency status. As the demand for dollars drop, the purchasing power of those same said dollars will drop, which in turn would cause a further decrease in demand. While this would be a good thing for US exporters, it is not good for importers, and also not good for those who hold USDs in their portfolios. The U.S. also has a trade deficit of close to half a trillion dollars annually.
Anonymouse1 on Thu, 5th Oct 2017 8:15 pm
Once again, narrativeman proves he does not understand in the slightest, the role the uS petro-dollar has in maintaining the empire’s global hegemony. Or maybe he does, but would rather pretend he does not. His ‘great’ comment of course, is filled with many of his usual trademark rhetorical sleights-of-hand. Narravtiveman is not in the least interested in learning why other countries would want to stop using uS toilet paper as the medium of exchange. That information is available should he care to look.
In any event, the decline of the uS dollar will not be a single event, rather it will be a slow, gradual thing, which builds momentum over time. Of course, the uS will use whatever means it can, usually involving violence, threatened or actual, to delay, halt, or even reverse the trend where it can(See Iraq). This should not be unexpected.
The narrativemans apparent faux-puzzlement over the whole matter, will have little impact on the direction or shape of this trend going forward of course.
Davy on Thu, 5th Oct 2017 8:26 pm
Listen to the Canadians trash the dollar tonight. This is so much fun. You guys get so bent out of shape the dollar is not gone yet. Rock made a great point and this is not the first concerning the real deal with the dollar and oil.
GregT on Thu, 5th Oct 2017 8:54 pm
The CAD would also take a bit hit if the USD were to lose reserve currency status. Which it will.
Never let reality get in the way of paranoid delusions. As if those evil Canadians have any say in the collapse of the petrodollar. There are far more powerful players who have made that their goal.
GregT on Thu, 5th Oct 2017 8:59 pm
IMA, Canada is a mere pimple on the US’s ass.
Cloggie on Thu, 5th Oct 2017 9:24 pm
@Rockman – “Will a company selling corn to Venezuela accept payment in rubles or yuan?”
Why not? Russia now exports more grain than the US:
https://www.bloomberg.com/news/articles/2016-10-06/russia-upends-world-wheat-market-with-record-harvest-exports
What currencies are accepted on world markets? Those currencies you can het rid off against valuable goods.
Shortly after Breton Woods the US had 40% GDP and trade surplusses, with Eurasia in ruins. That was easy for the US. Now the EU is the largest economy with high end products to sell, China equally has products to sell on the low end, but the US has huge trade deficits. The attractiveness to acquire dollars has greatly diminished.
That grain and oil that the US sells to Venezuela can be replaced by Russia. 11 billion is not much. There is absolutely no reason why countries like Venezuela should not trade in euro, yuan or even ruble.
Cloggie on Thu, 5th Oct 2017 9:34 pm
““7 Independence Movements That Could Destroy The EU”
http://tinyurl.com/y8h5746w
“Catalonia continues to press on with its independence movement, much to the dismay of Spain and the European Union. Catalonia is not the only region in the EU demanding more autonomy or independence. Here are seven regions in the European Union that may seek separation, and cause more fragmentation in an already weakened Europe.”
1. Scotland, Britain
2. Flanders, Belgium
3. Basques, Spain
4. New Caledonia, France
5. Corsica, France
6. Faroe Islands, Denmark
7. Lombardy and Veneto, Italy”
How would the drive for independence “destroy the EU”? It doesn’t. The countries involved would be “dismembered”… a little bit.. Items 3-6 are insignificant anyway. But I am not aware that any of these 7 actually wants to leave the EU. In fact the Scots are pressing for a new secession referendum because they want to stay in the EU.lol EU destruction? Hell no, UK destruction!
Cloggie on Thu, 5th Oct 2017 9:46 pm
“if the Catalans push for secession, thus breaking the ‘territorial integrity’ of the sovereign state, then Spain can send in the military to ‘fix’ the problem.””
Yesterday on the news signs that the Catalans are backing down and “open for mediation”.. They have absolutely no support whatsoever. Madrid is determined to crush the movement. If Barcelona wants to become a pile of rubble like Grozny, go ahead.
Barcelona, a bunch of white leftist globalists, who refuse to pay for Spanish deplorables.
Additionally, these idiots begin to realize that national pride FC Barcelona would end up in a soccer competition with only one club: FC Barcelona.lol
Cloggie on Thu, 5th Oct 2017 9:55 pm
“The only problem it is not that simple and that type of attitude is like how a very dangerous leader thought around 77 years ago. He had abstract visions of idealism. It was sick and wicked but a whole people fell for it. That is the kind of person you are grehger.”
Davy tries to sell the only export products his third world country has on offer: gay porn and Godwins.
Regarding these “abstract visions”, they were not so abstract at all. Hè just wanted his stupid 97% German town of Danzig back, which landed him in a world war, set up by US jews.
But that is ok Davy. All these lies are going to be revealed and thrown in the dustbin, together with the US empire, before 2025.
GregT on Thu, 5th Oct 2017 10:36 pm
“Ooh, grehger, has put the line in the sand. Whatcha gonna do cowboy? LMFAO. Go bite yourself chump!”
The only person who has any control over your own sanity is yourself. If you feel the desire to lose it, then by all means, knock yourself out. I won’t be visiting.
Davy on Fri, 6th Oct 2017 1:05 am
“Why not? Russia now exports more grain than the US:
https://www.bloomberg.com/news/articles/2016-10-06/russia-upends-world-wheat-market-with-record-harvest-exports”
clogged, you do realize wheat is not all grains don’t you? Damn, I thought you were smarter. Russia is not the biggest grain exporter, sorry, do better googling and thinking before you comment emotionally.
Davy on Fri, 6th Oct 2017 1:11 am
cloggie, I am sorry you are a closet Nazi but being a Nazi is out of fashion these days so you look pretty stupid and blasé. Hitler is your hero but most people find him to be one of many 20th century wicked villains. You are a sicko racist extremist anti-American. Damn this site is full of wackos.
makati1 on Fri, 6th Oct 2017 1:16 am
“Damn this site is full of wackos.” No Davy, you are the only one. Others here sometimes disagree but do not get emotional when they are confronted with divergent views and ideas. YOU are the problem not the cure.
Davy on Fri, 6th Oct 2017 1:23 am
“There is a fine line here that you do not want to cross. Your choice.”
Wacko sicko anti-American you might explain your line in the sand bullshit. Did I get under you BC pride again. LOL
Davy on Fri, 6th Oct 2017 1:29 am
That would not be you mad-cat1 or widdle grehgor. I am on grehgor’s most stalked list and your most commented on list. I consider that a victory. I used to be on your ignore list. You can’t ignore me anymore. You and widdle grehgor are just chumps that fail miserably. If you noticed, and I know you haven’t because you are self-absorbed, I mainly attack you two. I love when you too claim hypocritically that I am attacking you when you dumbasses have to gang bang your attacks. You pussies have to do two on one. That is because you wimps can’t face me alone.
makati1 on Fri, 6th Oct 2017 1:57 am
Davy, you are just killing yourself. None of us are touched by your childish actions. They don’t touch us in any way. You cannot accept that.
I guess you are used to being able to hit those you disagree with but thousands of miles make that impossible. Thus your last sentence calling us whimps. you have no idea. None at all.
BTW: are you a wife beater or maybe you hit your kids, if you have any, when they want to be independent of your bullshit?
Davy on Fri, 6th Oct 2017 2:09 am
“BTW: are you a wife beater or maybe you hit your kids, if you have any, when they want to be independent of your bullshit?”
Is that why you got a divorce and left your big family? I was wondering when you were going to bring up why you have such poor relations with your family. I mean what kind of piece of shit would talk like you do about Americans and have a big family. What kind of worthless family guy would leave his family so far away and boast how you will never go back to the US. I guess you have no interest in seeing your family anymore. Yea, it just came out what you are. Unconsciously we now know the truth about mad-cat1
Cloggie on Fri, 6th Oct 2017 2:35 am
“clogged, you do realize wheat is not all grains don’t you? Damn, I thought you were smarter. Russia is not the biggest grain exporter, sorry, do better googling and thinking before you comment emotionally.”
The why-don’t-you-love-us fool from Missouri tries to be a smart ass by inserting sophisms to distract attention away from the fact that Russia has overtaken the US in wheat production and export, the most important grain in the world:
https://www.bloomberg.com/news/articles/2016-10-06/russia-upends-world-wheat-market-with-record-harvest-exports
“Russia Becomes a Grain Superpower as Wheat Exports Explode”
Why don’t you go lecture Bloomboig about the difference between wheat and grain.lol