Venezuela publishes oil prices in Chinese currency to shun US dollar

26 Comments on "Venezuela publishes oil prices in Chinese currency to shun US dollar"

onlooker on Sat, 16th Sep 2017 10:28 am 



IT is very noteworthy that a South American country actively disengages from the Western economic system and is aligning with the Eastern BRICS. Brazil , Ecuador and Bolivia have also been on this path. It demonstrates the weakness now in Western hegemony

rockman on Sat, 16th Sep 2017 10:53 am 



Same question asked below. This time more specific: are the US companies currently selling almost $12 BILLION worth of imports going to accept yuan instead of $’s. They might but those companies are going to change their prices in $’s to compansate for what ever the current yuan/$ exchange rate might be. IOW if a refinery is going to sell $5 million in diesel to Venazuela it’s going to adjust the price in yuan to yield $5 million…including what the might have to pay for the exchange transaction. OTOH many companies probably won’t deal with that extra step. In that case Venazuela will have to exchange their hard currency in whatever denomination they hold for US $’s and pay the bill.

So at the end of the day US companies selling almost $12 BILLION in exports to Venazuela (about $500 million more then Venazuela is selling oil etc to US companies) will ultimately get paid in US $’s. If Venazuela wants to subject itself to the volatility of the currency market that’s its choice. But it won’t change how many $’s our refineries pay for Venazuelan oil or how many $’s US companies recieve for the products they sell to Venazuela.

Cloggie on Sat, 16th Sep 2017 11:04 am 



IT is very noteworthy that a South American country actively disengages from the Western economic system and is aligning with the Eastern BRICS. Brazil , Ecuador and Bolivia have also been on this path. It demonstrates the weakness now in Western hegemony

European and American colonialism are over and not one minute too early.

Identitarian multi-polar world is next.

Oh shit, no communism a la NE-US.

How to bring this to boat, Davy, ghung and sisteract?

Davy on Sat, 16th Sep 2017 11:07 am 



Communism is dork talk. Are you being funny or stupid?

Outcast_Searcher on Sat, 16th Sep 2017 11:14 am 



Yawn. If the FX markets go away AND no one will accept US dollars in international trade, be sure and let us know.

Until then, this is all politics or arm waving. The FX markets, once well established, reliable, and liquid (over $5 trillion in daily transactions on average over time) makes this all a moot point in the modern world.

Except to those ignorant of economics, or wanting to spread FUD, of course.

joe on Sat, 16th Sep 2017 11:16 am 



Western worlds hegemony ended on 9-11-01. Not because of muslims or UBL, but because of Bush – Cheney and the Neocons who wanted a new pearl harbour……

Davy on Sat, 16th Sep 2017 11:35 am 



Right OS, just review the volumes and compare numbers. I am all for a more multipolar world where business is business. Let’s get politics out of globalism. It is already screwed up enough.

Cloggie on Sat, 16th Sep 2017 11:38 am 



More end of the West signs:

http://www.spiegel.de/politik/ausland/syrien-russland-iran-und-tuerkei-vereinbaren-beobachtermission-a-1167867.html

Russia, Turkey and Iran are negotiating the future of Syria in Astana (Kazachstan), a town I predict could replace NYC-UN as the diplomatic center of the coming multi-polar world order. America is present, but merely as “observer”, no European country. The only question they ask the US representative is how many sugar cubes he wants in his coffee.

The issue is the status of the Idlib province in NW Syria, a hot bed of hotheads of the fundamentalist persuasion, two million in total of which 1 million displaced. Assad probably doesn’t want these trouble makers back anyway. The proposal is that Russian, Turkish and Iranian peace keepers will, well, keep the peace.

The US doesn’t like that Iran is present, but there are so many things the US doesn’t like that happen anyway.

Russia and Iran are the guarantors of the Assad regime, Turkey of the somewhat defeated insurgents.

#ThanksRussia

onlooker on Sat, 16th Sep 2017 12:16 pm 



Rockman and Outcast, no doubt what has been the importance of the Western economic model. But what we are seeing is it is fraying. When China, Russia and some other countries openly conspire to establish a new eastern oriented system it is something that is not to be so easily dismissed. I am ambivalent in so much as I see Davy’s point that the world is interconnected economically. On the other hand, the opposition to the Western model is growing strength precisely because of the now noticeable weakness of Western model. An incessant debt and fiat money scheme eventually must fall from its own inherent instability. The US had something above all nobody else had and that was the most robust consumer base. Now that may not be the case. And the US is stuck in a stubborn dependence on FF, even as countries around the world wish to diversity their energy porfolio. So with KSA showing weakness in its energy position, one must assume that countries are positioning themselves for a less FF oriented world. The US obviously will remain a key player but a multipolar world seems to be where we are headed.

Davy on Sat, 16th Sep 2017 12:29 pm 



Onlooker, it is significant and beneficial to all. It is too early to tell how significant because these arrangements take years to develop. IMA, why do these things always have to be polarized? People can’t talk about these things except in binary games of brinkmanship. It is far more important these new arrangements make the very important global financial system more resilient. Our global financial system is dangerously extended with debt with every major power. If we can lower risk concentrations that is a good thing for when the next crisis comes. There will be another crisis becuase business cycles.

Boat on Sat, 16th Sep 2017 12:47 pm 



If you want to talk NWO China has taken the lead talking free trade and pursuing renewables while the US elected cheeto who talks the opposite. Who knows the mind of a cheeto because it seems to randomly change to the surprise of his supporters.

Boat on Sat, 16th Sep 2017 1:00 pm 



I haven’t heard about money exchanges being installed at Citgo gas stations. Citgo doesn’t even advertise they’re owned by their motherland. Wonder why.

bobinget on Sat, 16th Sep 2017 1:16 pm 



We all know. Venezuelan crude for US, soon a memory. Some may be under the impression it is an easily reversible Congressional sanction.
We’ll simply draw from our SPR until Venezuela repents.
Sanctions work Both Ways. If the US refuses to do business, IOW’s HELP!. What good are petrodollars? Russia and China are the ones sending in grains and goods, not USA.

A bit worrisome. Both Iraq and Saudi Arabia may join Venezuela and Iran abandoning petrodollars.
(after all we’ve done for Iraq, for shame)
AS for KSA, their pension for killing Muslims ties them to the USD funded ‘defense’ industry.

Yup, who whomever we sell weapons, guarantees USD loyalty.

Something to ponder. Turkey just got deal on some slightly used SS 3 air ‘defense’ weapons use only once shooting down a Dutch airliner.

bobinget on Sat, 16th Sep 2017 1:28 pm 



Boat, CITGO will buy all the heavy oil needed for its three refineries from Canada. I’m guessing
XOM owned Imperial oil. Putin and XOM go way back. If Congress would relent and cancel out sanctions on Black Sea drilling partnership w/Exxon
I’m sure Putin would begin to sell Venezuelan oil again.

Guessin who would get that contract, I couldn’t.
So, I picked four, SU, CNQ, IMO and CVE.
Best bargain CVE, best dividend, CNQ, best supply, SU. Best chance, Imperial.

Davy on Sat, 16th Sep 2017 2:40 pm 



bob, you do realize crude can be purchased across the globe not only in Venezuela?

tahoe1780 on Sat, 16th Sep 2017 3:34 pm 



I wonder if a Chinese-built refinery in Venezuela is in the works? http://www.ogj.com/articles/2017/06/venezuela-china-advance-plans-for-chinese-refinery.html

http://www.reuters.com/article/us-china-caribbean-refinery/china-suitor-tightens-grip-on-curacao-oil-project-idUSKBN1420MZ

Boat on Sat, 16th Sep 2017 4:58 pm 



Venezuela is lowering its shipments to US Citgo from 230,000 bpd to 120,000 per day. Citgo has 3 refineries with a capacity of 750,000 bpd.

https://www.reuters.com/article/us-venezuela-usa-citgo-pete/exclusive-venezuela-cuts-oil-supply-to-citgo-as-russias-rosneft-gets-more-idUSKBN1AJ1JI

makati1 on Sat, 16th Sep 2017 5:18 pm 



The USD is in the ICU on a life-support machine (the printing press) and cannot survive for much longer. World trade is going to shift dramatically when the SHTF. The East is better prepared for that day than the West by a country mile.

The US brought it on themselves by clubbing countries with threats to cut them off from the money exchange system. The latest being China. Maybe they actually think the rest of the world is stupid and will kiss American ass forever?

Americans have lived way above their means and resources for at least the last 70 years. The world sees that more and more as the internet educates rice farmers in Asia, cattle farmers in Africa and the Arabs in the ME. The Empire has been blatant about it since 2000. With 4% consuming 25+% of the world’s resources it will not be long before that changes.

Capitalism is dead and beginning to smell. The next collapse will bury it. What it will be replaced with may resemble the Middle Ages of Europe with the serfs working for the lords, on land owned by the same lords. Substitute you and I for the serfs and corporations for the lords and you have the picture. But first, the West, and especially the US, has to be brought down. Patience. It is already well into the collapse.

MASTERMIND on Sat, 16th Sep 2017 6:18 pm 



UAE: Saudi Arabia was going to launch military attack on Qatar

Saudi Arabia was preparing for a military attack on its neighbour Qatar, leaked emails dated May 2017 appear to show.

https://www.middleeastmonitor.com/20170916-uae-saudi-arabia-was-going-to-launch-military-attack-on-qatar/

Davy on Sun, 17th Sep 2017 7:44 am 



Normally I don’t agree with Pepe’s extremist agenda but he has summed up very well a possible solution to the NK situation. This is of course if the US would disengage from Korea. It is a big step for the US because it represents a significant pivot out of Asia and a further integration of Asia around China and Russia. Considering what is at risk and how dangerous a war there would be to the entire global arrangement this is the only course of action. South Korea must have the will to make a break from the US/South Korean military alliance that has been in effect for decades and which is now dangerously exposed the region to a global economy ending war.

The Russia-China Plan For North Korea: Stability & Connectivity
http://tinyurl.com/y7saz7qf

“Largely unreported by Western corporate media, what happened in Vladivostok is really ground-breaking. Moscow and Seoul agreed on a trilateral trade platform, crucially involving Pyongyang, to ultimately invest in connectivity between the whole Korean peninsula and the Russian Far East. South Korean Prime Minister Moon Jae-in proposed to Moscow to build no less than “nine bridges” of cooperation: “Nine bridges mean the bridges of gas, railways, the Northern Sea Route, shipbuilding, the creation of working groups, agriculture and other types of cooperation.” Crucially, Moon added that the trilateral cooperation would aim at joint projects in the Russian Far East. He knows that “the development of that area will promote the prosperity of our two countries and will also help change North Korea and create the basis for the implementation of the trilateral agreements.”

“Geo-economics complements geo-politics. Moscow has also approached Tokyo with the idea of building a bridge between the nations. That would physically link Japan to Eurasia – and the vast trade and investment carousel offered by the New Silk Roads, aka, the Belt and Road Initiative (BRI) and the Eurasia Economic Union (EAEU). It would also complement the daring plan to link a Trans-Korean Railway to the Trans-Siberian one. Seoul wants a rail network that will physically connect it with the vast Eurasian land bridge, which makes perfect business sense for the fifth largest export economy in the world. Handicapped by North Korea’s isolation, South Korea is in effect cut off from Eurasia by land. The answer is the Trans-Korean Railway. Moscow is very much for it, with Putin noting how “we could deliver Russian pipeline gas to Korea and integrate the power lines and railway systems of Russia, the Republic of Korea and North Korea. The implementation of these initiatives will be not only economically beneficial, but will also help build up trust and stability on the Korean Peninsula.”

“Moscow’s strategy, like Beijing’s, is connectivity: the only way to integrate Pyongyang is to keep it involved in economic cooperation via the Trans-Korean-Trans-Siberian connection, pipelines and the development of North Korean ports. The DPRK’s delegation in Vladivostok seemed to agree. But not yet. According to North Korea’s Minister for External Economic Affairs, Kim Yong Jae: “We are not opposed to the trilateral cooperation [with Russia and South Korea], but this is not an appropriate situation for this to be implemented.” That implies that for the DPRK the priority is the 5+1 negotiation table. Still, the crucial point is that both Seoul and Pyongyang went to Vladivostok, and talked to Moscow. Arguably the key question – the armistice that did not end the Korean War – has to be broached by Putin and the Koreans, without the Americans. While the sanctions game ebb and flows, the larger strategy of “RC” is clear – a drive aimed at Eurasian connectivity. The question is how to convince the DPRK to play along.”

Davy on Sun, 17th Sep 2017 7:50 am 



Another reason to defuse the NK crisis:

“North Korea’s Nuclear Tests Could Trigger “Supervolcano” Eruption”
http://tinyurl.com/y739ltmk

“According to Disclose.tv, the magma and sulfur booms during a supervolcano eruption could kill millions of people in the surrounding area, and potentially endangering all of humanity. The volcano, which is sacred to North Korea, is located right on its border with China. China’s closure is in effect for a 70-mile-radius around the detonation site. A blast from a super volcano could be catastrophic, with ash traveling thousands of miles, potentially causing hundreds of thousands of deaths”

“A new article in scientific journal Nature’s Scientific Reports states that “an underground nuclear explosion test near an active volcano constitutes a direct threat.” Scientists wrote that it could “disturb the magma chamber of a volcano, thus accelerating the volcanic activity,” scientists argue. “This is an interesting mystery at this point,” Göran Ekström, a seismologist at Columbia University in New York City, told Nature. The US Geological Survey estimated the second burst of seismic energy, only eight and a half minutes after the detonation, had a magnitude of 4.1; the detonation itself registered at 6.3. While satellite images do show signs of structural collapse, the movement of rock more closely resembles a landslide.”

rockman on Sun, 17th Sep 2017 7:57 am 



OK, let’s try another approach: explain the difference between a US petrodollar and a US dollar? So will the Chinese stop accepting the $650 BILLION US dollars it receives for its exports to the US? Will Venazuela not accept US dollars from US refineries? Will Canadian oil producers accept yuan from Citco for the oil it needs to buy since Vz can’t deliver enough? Will foreign buyers of US refuse to pay our farmers in US dollars and let their people starve?

There seems to be some mixing of reality between some oil exporter posting their prices in some denomination other the US dollars and not accepting payment in US dollars exchanged for that currency. And seperately the world trading in US dollars. Last time I saw the stat about 75% of US paper money was held by foreigners: I doubt they would care to see those holdings weaken.

Davy on Sun, 17th Sep 2017 9:00 am 



Rock, the anti-Americans have not thought that far through. They still are at the emotional level of destroying the US in fire and brimstone. In this case economically and this destruction initiates their region’s golden age. That narrative is too exciting and rewarding to allow reality to enter the equation. Reality is the baggage that waters down their smell of blood lust.

rockman on Sun, 17th Sep 2017 4:56 pm 



Davy – There are some aspects of our society I wouldn’t mind seeing destroyed too. LOL. And if they see something happening that damages the US and it pleases them then so be it. But I keep asking the same question no one has yet to answer: SPECIFICALLY what damage would be done to the US by an oil exporter posting it’s asking price in some denomination other then US $’s. Going on and on about how that would “destroy” the US economy is a huge waste of space here.

So again: what would be the TANGIBLE difference in Oil Exporter X posting it price in, let’s say, Euros and not US dollars? Personally I couldn’t care less if doing so inflicts some damage on our country: it’s not personal…just business. LOL

Davy on Sun, 17th Sep 2017 6:31 pm 



Lots of noise lately about trade wars and that is very dangerous talk with the world at the place it is in. The reason this talk is even tenser is the NK situation is right smack in the middle. This means emotions will be high with real life consequences. This will impact us all in a very bad way. Even if the US gets hurts the most all will participate in the end of globalism as we know it and with that all your wish list of wants like for example a renewable world.

“Jim Rogers Warns “If Trump Starts A Trade War With China, It Will End US Hegemony”
http://tinyurl.com/ycvhcqdx

“If they put sanctions on China in a big way, it brings the whole world economy down. And in the end, it hurts America more than it hurts China because it just forces China and Russia and other countries closer together. Russia and China and other countries are already trying to come up with a new financial system. If America puts sanctions on them, they would have to do it that much faster and in the end America will lose its monopoly on the financial system, which will hurt America more than anybody.”

“Central Banks Are Petrified” Chris Martenson On The Hyperinflationary Threat Of “China Dumping The Dollar”
http://tinyurl.com/ybtrc25p

“We are talking about a steady erosion of the dollar as a reserve currency. I think that is most likely. The only thing that could make that really go fast is some kind of war. The United States and China, we got to keep our eye on this because Trump has been threatening a trade war with China. China responded and said if you do that, we may dump the dollar. . . . So, there is all this trade and financial back and forth and maybe even actual war at some point…China has the ability to really impact the dollar in a big way on the world stage. We better hope it does not come to that because a slow erosion we can adjust to; a quick erosion is going to really roil the markets and maybe blow a few of them up.”

makati1 on Sun, 17th Sep 2017 6:55 pm 



Rockman, when (not if) the USD goes down, USD holders will lose their asses. So what? Think 1929 on steroids. Smart countries are already dumping USTs and USDs in exchange for gold or other real resources. Reset the system.

Yes, Walmart will be reduced to a Mom and Pop store when it cannot buy from China … or would it? The switch would likely be gradual, giving the big money holders time to trade USDs for the new currency, (SDRs?) or adjust prices to reflect the new, almost worthless, dollar. That $1,000 big screen TV might then cost $10,000. Is that a bad thing? I don’t think so if it cuts consumption.

It’s going yo happen no matter what you or I think. The process is well past the turn around. Only time will tell how soon and what the consequences will be.