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Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance

Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance thumbnail

Pictured above, the currency symbols for the old Spanish peseta and the Chinese yuan. Maybe Baba Beijing can synthesize the two of them into a cooling looking petro-yuan logo.

After 25 years of dreams, planning, rumors and testing, the Chinese petro-yuan is now official. Right now, almost all global oil trade is conducted in US dollars, using two benchmark varieties of crude, West Texas Intermediate and North Sea Brent, as the industry standards. It is no accident that these two benchmarks are based on imperial crude, American and British, and the irony of this is surely not lost on Baba Beijing (China’s leadership).

China is not selling oil, so the petro-yuan is a futures purchase contract denominated in renminbi for the country to import the stuff. As the world’s biggest importer of hydrocarbons, Baba Beijing has long felt that pricing all its millions of tons of imports should be in its national currency. Why should China pay for Russian natural gas or Venezuelan crude in Western empire’s currency of global financial control, Uncle Sam’s greenback?

Opinions outside China range from being non-plussed, to claiming it is the most important news in modern financial history, but you would have to search far and wide in Eurangloland (NATO, EU, Israel, Australia and New Zealand) and its heavily censored and suppressed media, to see for yourself. Outside the obligatory statement of fact in financial outlets like the Wall Street Journal, Financial Times, Reuters and Bloomberg, silence from the West’s mainstream media is deafening, as this screenshot below shows, when searching the topic. Only one mainstream article showed up on page #1 of the web search and that was CNBC from 2017. Even just looking for “petro-yuan” gives identical results. It’s a Western media black hole.

The West’s censorship and suppression of news that reports the truth about China, Russia and Iran is lethally effective. Hitler called it the Big Lie. Eurangloland learned from a master.

Both end points on the above range of ideas are probably exaggerated. But, the fact that any global oil seller can now buy non-US dollar oil contracts is momentous, for sure. In 1971, Richard Nixon took the US dollar off the gold standard and got OPEC to restrict global hydrocarbon sales to greenbacks. Thus, overnight, the world’s reserve currency was pure fiat money, which is still being kept propped up by the need for the world economy to buy dollars, in order to purchase the most strategic commodity on earth. Here are two ranges of opinion on Nixon’s decision (from this to this).

Many people don’t want to acknowledge that their decision to switch from the US dollar to the euro, by Iraq’s Saddam Hussein and Libya’s Muammar Gaddafi, had a lot to do with their countries being invaded, plundered, destroyed, and then they being killed in a highly humiliating and public fashion. In both cases, once they made the switch, it was just months before they were sacked.

Other, more powerful oil producers have already ditched the greenback, but Western empire only knows how to prey on weaker states, like Grenada, Panama, Serbia, Africa and the like. Iran has already stopped using the US dollar, as has Russia with China, which helps explain the West’s vociferous, self-defeating illegal sanctions and embargos on them.

Both Iran and Russia make Uncle Sam brown the backside of his red-white-and-blue bloomers, as well as for the Zionist state of Israel. I don’t even have to mention Eurangloland’s white knuckle fear of China. The China-Russia-Iran anti-dollar alliance versus the West is causing the latter’s elites to suffer from extreme geopolitical dysentery. Vulnerable, and it has to be said gullible Iraq and Libya, yes – but this towering trio not so much, as they are two of the world’s biggest petro-exporters next door to the biggest importer, and all are armed to the teeth with high-tech military hardware. When you look at the map below, it graphically shows how ridiculous it is for these three players to do business in dollars. New York and Washington are so far, far away.

Whatcha gonna do about it, Eurangloland? There’s not a damn this you can do, short of destroying humanity and the world. Sadly, there are many psychopaths in Washington, Brussels, London and Paris who would prefer that, than accept imperial collapse.

As usual, you have to go outside the Great Western Firewall and its propaganda Big Lie, to see the real world. For those who want to delve deeper, RT has done an informative series of articles and the South China Morning Post (SCMP) has done a couple of good ones.

RT:

https://www.rt.com/business/422314-petro-yuan-futures-dollar-death/
https://www.rt.com/business/422448-china-oil-futures-outstrips-brent/
https://www.rt.com/business/422472-russia-china-petro-yuan/
https://www.rt.com/business/422776-trade-war-petro-yuan/
https://www.rt.com/business/422838-petro-yuan-dollar-gaddafi/
https://www.rt.com/business/423461-petro-yuan-us-dollar-oil/

SCMP:

http://www.scmp.com/business/global-economy/article/2139646/chinas-yuan-denominated-oil-futures-what-took-you-so-long
http://www.scmp.com/comment/insight-opinion/article/2139781/yuan-denominated-oil-futures-mark-significant-move

The Saker blog



25 Comments on "Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance"

  1. twocats on Tue, 10th Apr 2018 9:00 am 

    good article about the propaganda of US news media not discussing it. whether the time line is imminent or not – for sure US military and foreign policy officials are very very worried. and with the state department and foreign policy positions decimated by Trump and Tillerson – diplomatic pressure options will be limited.

  2. twocats on Tue, 10th Apr 2018 11:00 am 

    just when US stock markets are going into Defibrillation (just look at a five year of S&P), just when trade/tariff battles are starting, Syria really starting to heat up, Trump investigations really heating up (Cohen raid), Global debt hit 237 Trillion end of 2017 (though debt to GDP is going down… for now). It would be very hard to imagine more things going on – but we haven’t had a natural disaster in a month or two – and with climate chaos in full beast-mode – we are due there as well.

    looks like the Central Bank & Shale Part Good Ship Lollipop Jubilee is coming to an end.

  3. fmr-paultard on Tue, 10th Apr 2018 11:17 am 

    blah blah, anohter article for the sole purpose of attracting tards to attack usa.
    and eurotard to attack america

    the problem is our supertards are currently busy. it’s not that we want dictaorship for america. we want others to be dictators so they weaken themselves and we take siberia

    only learn from real supertards. don’t just listen to any tard from intarweb

    https://www.youtube.com/watch?v=1HWo9eYL1Rk

  4. GregT on Tue, 10th Apr 2018 11:25 am 

    “Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance”

    Not an anti-USD alliance. All three countries have asked for international cooperation in the UN, towards a new multipolar world order.

    Washington DC (ZOG) is not interested. It’s all or nothing with these people. Expect more of the same violence, bloodshed, and war. Only bigger, and more widespread.

  5. Outcast_Searcher on Tue, 10th Apr 2018 11:27 am 

    Yawn. When the global FX markets, trading over $5 TRILLION in currency daily go away and entities can’t conveniently hedge currencies however they want, THAT would be a story.

    Until then, much hyperventilating about basically NOTHING.

    But doomers gotta have the doom theory of the week to sell, of course.

  6. Outcast_Searcher on Tue, 10th Apr 2018 11:31 am 

    If this is an “anti USD weapon”, it seems to be a complete failure. The USD has basically flatlined the past three months, re DXY charts.

    Apparently people with money (traders and investors) know something the doomer conspiracy theorists don’t.

  7. BobInget on Tue, 10th Apr 2018 11:41 am 

    In every issue of propaganda lies some truth.
    ( when is the last time you noticed ANYTHING
    of value made in Russia for sale?)
    India, Vietnam, Europe, Africa, Canada, Mexico Japan, of course US and China. Never Russia.
    Not a car, aircraft, not a cheap computer, not lumber, nada, nada. Only weapons, vodka and oil come out of Russia.
    Who has a larger GDP: California or Russia? – Quora
    https://www.quora.com/Who-has-a-larger-GDP-California-or-Russia
    California’s gross state product (GSP) is about $2.496 trillion. Russia’s GDP is $1.267 trillion. There are only five states in the world with a higher GDP than Californian one. These are: The US itself – kind of natural ); China; Japan; Germany; UK. California’s GDP is equivalent with the French GDP – the sixth economy of the …

    Mind you, the title of this piece was structured like ‘click bait’.
    “Petro-Yuan Is The Newest Weapon For The China-Russia-Iran Anti-USD Alliance”.

    “RT” not on Your Side big fella.

  8. fmr-paultard on Tue, 10th Apr 2018 11:51 am 

    bob, i heard you’re a libtard, me too but what’s changed? is it because i introduced you to the way of thinking of our supertards? yes i like your last post. if our supertards have access to siberia we’ll make new stuff that we can sell and make life easier for EVERYbody

  9. Davy on Tue, 10th Apr 2018 12:01 pm 

    “Until then, much hyperventilating about basically NOTHING.”

    Agreed, lots of “hype” because so many are emotionally attached to ending the dollar and promoting an anti-American agenda. This is an important milestone but like all such macro changes to the global system it is a longer term force and a force that is part of and influenced by many other factors. One big issue is the US is importing much less oil and China more. I would think that puts China in an awkward position few elaborate on. You can always tell those who are not very bright with finance and economics when they start harping this petroyuan thingy. If they are bright they are selling something.

  10. MASTERMIND on Tue, 10th Apr 2018 12:02 pm 

    Retail defaults soar to record high in 2018

    http://money.cnn.com/2018/04/10/investing/retail-defaults-sears-moodys/index.html

  11. fmr-paultard on Tue, 10th Apr 2018 12:06 pm 

    ^mm^ you don’t learn from supertards. your idea dealing with SENTAPBs is “dialogue”…this is the same thing as saying “relligion of peace” and bend backward.

    This is no fault of your own. It’s the education of second grade college/university in michigan with a degree in chemistry and a terminal tard degree.

    it’s a cognity dissonant to “talk” and grab luke 22:36.

  12. GregT on Tue, 10th Apr 2018 12:06 pm 

    “Apparently people with money (traders and investors) know something the doomer conspiracy theorists don’t.”

    A couple of things at least;

    The old adage ‘money in the bank’, has lost all of it’s shine. Today, it would more appropriately mean to watch one’s savings evaporate into thin air.

    Cash is king when markets are at all time highs, and for all intents and purposes, massively overvalued and in bubble territory.

    It’s all a confidence game now. In the land of the blind, the one-eyed man is King.

  13. fmr-paultard on Tue, 10th Apr 2018 12:14 pm 

    the whole “rest of the world” is “we” need to defend oursleves against aggression, mainly usa. answer without fail is dictatorhsip.
    comrade putin, comrad xi, assad, iran, iraq, syria.

    but then we heard eurotard and tards say but america going down.

    wait, i thought i’m told those countries feel vulnerable and have to resort to dictatorship to fend for themselve.s

    this is not logical.

    as a former paultard, this is called a “protection racket”. or if you prefer it’s problem reaction solution.

    oh, in the ME the excuse is to control islam.

  14. JH Wyoming on Tue, 10th Apr 2018 12:50 pm 

    Good summary twocats of the major evolving disastrous situations worldwide. Seems like all these problems keep escalating. One has to wonder how much pressure can build until something really out of control descends our collective experience into palpable hardship.

  15. MASTERMIND on Tue, 10th Apr 2018 1:17 pm 

    The Peak Oil Dump

    https://www.reddit.com/r/peakoil/comments/8b9pyd/the_peak_oil_dump/

  16. MASTERMIND on Tue, 10th Apr 2018 1:36 pm 

    PBS:Civilizations premieres Tues, April 17 at 8/7c

    https://imgur.com/a/rC7fn
    http://www.pbs.org/civilizations/home/

  17. Cloggie on Tue, 10th Apr 2018 2:50 pm 

    “Retail defaults soar to record high in 2018”

    Nothing to do with “depression” but everything with business transactions occuring online.

  18. Cloggie on Tue, 10th Apr 2018 3:05 pm 

    “California’s gross state product (GSP) is about $2.496 trillion. Russia’s GDP is $1.267 trillion.“

    GDP PPP ( the one that counts) is $4.1T (Germany $4.3T)

    https://en.wikipedia.org/wiki/Russia

    Nice try Bob.

    “Not a car, aircraft, not a cheap computer, not lumber, nada, nada. Only weapons, vodka and oil come out of Russia.”

    https://en.wikipedia.org/wiki/Russia#Economy

    “Oil, natural gas, metals, and timber account for more than 80% of Russian exports abroad.”

  19. makati1 on Tue, 10th Apr 2018 6:33 pm 

    “As usual, you have to go outside the Great Western Firewall and its propaganda Big Lie, to see the real world.”

    So true. Many here are blind to reality. In deep denial. Too much propaganda. Not enough intelligence/common sense.

    What does “percentage” of anything have to do with when the USD finally becomes toilet paper? The next market casino crash will end any existing faith in the USD. Meanwhile there will already be an alternate system in place, controlled by China and Russia. My bet is on their system surviving and becoming dominant. When? Soon. How long can the market casino continue to be propped up by an already squealing and smoking Us printing press?

  20. MASTERMIND on Tue, 10th Apr 2018 7:14 pm 

    Clogg

    Online sales have been around 20 years and only make up 9.1 percent of all retail sales. sorry this is a sign of depression. You are just a stupid ignorant neckbeard!

  21. MASTERMIND on Tue, 10th Apr 2018 7:23 pm 

    Clogg

    A Nation of Broke People Are Killing Retail More Than Amazon: Top Expert
    https://www.thestreet.com/story/14277483/1/a-nation-of-broke-people-are-killing-retail-more-than-amazon-peter-schiff-says.html

  22. Davy on Wed, 11th Apr 2018 6:10 am 

    If they don’t have dollars give them yuan! LOL, and here I thought the dollar was no longer needed in that part of the world. This is what the board anti-Americans like billy 3rd world say.

    “Iranians Panic – “Can’t Find Dollars” After Government Enforces Currency Controls”
    https://tinyurl.com/y8qslte5

    “Yesterday saw the Iranian Rial crash to a record low 60,000 per USDollar on the unregulated markets, according to Tasnim News agency, having lost more than a third of its value in the last six months.”

    “But all along Ferdowsi Street, exchangers were turning hundreds of people away or had signs up saying: “We have no dollars to sell”, while rate boards showed blank spaces for US and European currencies.”

    “Many businesses were forced to halt work amid the uncertainty created over prices and the availability of imported materials.”

  23. Davy on Wed, 11th Apr 2018 7:04 am 

    Where is the belt road thingy when you need it?

    “Turkey Roasted As Erdogan Anxiety Sends Lira, Bonds To Record-er Lows”
    https://tinyurl.com/yaw7dcj6

    “Two days ago we noted the rapid acceleration of the demise of Turkey’s currency and bond markets, as Erdogan promised “to rescue investors from high rates” prompting (hyper)inflation concerns and central bank independence anxiety among investors. Since then it has got worse, much worse…The Turkish lira extended a slide to fresh record lows as wagers mount the central bank may hesitate to defend the currency with higher interest rates.”

    “The Turkish lira is losing ground at pace, down over 11% this year, 42% in 2 years, 127% in 5 years. The move is mirrored by the Russian Ruble, which is nearing the weakest levels reached during the oil slump, when brent crude traded as low as 27$/bbl (it is 70$ now). US sanctions on Russian oligarchs and recent tensions in Syria are behind the recent 10% move. For Turkey, the narrative blames it on political uncertainty under Erdogan (challenge to constitutional rights, over 40 thousands people arrested, 800 companies confiscated in last few months, the highest unemployment in 7 years at 13%), geopolitical instability in the region, fears of trade wars escalation, etc. Now, such large devaluations would matter to any country. But particularly to a country like Turkey, that has: 53% of total external debt on GDP, for over $400bn (where Reinhart and Rogoff put the at 30%-35% the critical threshold for debt intolerance) Foreign banks exposed for over $330bn, of which $170bn is in hard currency. $100bn of exposure for EU banks Current account deficit of 5.5% of GDP”

    “The latest acceleration in the Russian Ruble (10% off in two days) can provoke broader deleveraging on EM exposure, hitting on an already fragile context for the Turkish lira, and possibly proving to be the proverbial straw that breaks the camel’s back. As the ruble suffers despite a strong oil price, the Turkish lira will instead feel a double hit: Turkey is a net importer of oil and therefore exposed to more damage to the economy and a worsening current account deficit in the process. What happens next in Turkey can matter to global markets, as they scramble to find a direction. Turkey is yet another catalyst in a long list of rivals (butterfly effects link) threatening to pop bubbles in bonds and equities globally (twin bubbles).”

  24. Davy on Wed, 11th Apr 2018 7:08 am 

    “Markets Turmoil After Trump Tweets Threat To Russia”
    https://tinyurl.com/y8ynsksn

    “30Y treasury yields have tumbled back below 3.00% and US equity futures are down over 1% in the pre-market as overnight warnings of airstrikes have escalated into full-blown threats from President Trump. The Ruble is now down over 11% in the last 3 days…US equity futures are dumping…Catching down to Treasury yields once again…As the 30Y Yield tumbles below 3.00%…And the Ruble continues its freefall…Tumbling to its lowest since Nov 2016…Russia’s Peskov says that Russian market volatility is partly emotional, partly speculative and jawbones that the Russian economy has sufficient durability. And as geopolitical chaos strikes, gold is bid back above $1350…And oil prices are surging…”

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