As a reminder, nothing lasts forever…
The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.
“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank.
“The solution to this is to replace the national currency with a global currency.”
The writing is on the wall for dollar hegemony. As Russian President Vladimir Putin said almost two months ago during the BRICs summit in Xiamen,
“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”
As Pepe Escobar recently noted, ‘to overcome the excessive domination of the limited number of reserve currencies’ is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.
Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan. This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan – according to some – will be fully convertible into gold on both the Shanghai and Hong Kong exchanges.
The new triad of oil, yuan and gold is actually a win-win-win. No problem at all if energy providers prefer to be paid in physical gold instead of yuan. The key message is the US dollar being bypassed.
China’s plans for oil futures trading go back more than two decades, with the government introducing a domestic crude contract in 1993 and stopping a year later amid an overhaul of its energy industry. But in 2013, we first hinted at the birth of the petroyuan was looming…
In doing so China is effectively lobbing the first shot across the bow of the Petrodollar system, and more importantly, the key support of the USD in the international arena… setting the scene for the petroyuan.
And now, we are within two months of it becoming a reality as China prepares to roll out a yuan-denominated oil contract within the next two months…
“Approval of the trading rules by the securities regulator marks the clearance of a major hurdle toward launch of the contract,” Li Zhoulei, an analyst with Everbright Futures, said by phone.
“The latest rules raised entry threshold for investors from the draft rules, which shows the government wants to avoid volatility when it first starts trading.”
Which, according to Adam Levinson, of hedge fund manager Graticule Asset Management Asia, will be a “wake up call” for investors who haven’t paid attention to the plans.
A Yuan-denominated oil contract will be a “huge story” in the fourth quarter.
“The contract is a hedging tool for Chinese oil companies. We’re convinced Chinese oil companies will be anchor investors in the Aramco IPO.”
All of which fits with recent comments and actions from Russian and Venezuelan officials…
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.” He reportedly did not provide details of this new proposal.
Maduro hinted further that the South American country would look to using the yuan instead, among other currencies.
“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.
Additionally, Levison warns Washington that besides serving as a hedging tool for Chinese companies, the contract will aid a broader Chinese government agenda of increasing the use of the yuan in trade settlement… and thus the acceleration of de-dollarization and the rise of the Petro-Yuan.
“I don’t think there’s any doubt we’re going to see use of the renminbi in reserves go up substantially”
Levinson was even more sanguine about China’s growing credit exposure. While Chinese debt-to-GDP continues to rise, we note that Chinese sovereign credit risk has collapsed to 9 year lows…
Which as Levinson notes, “All the issues in China are occurring without fully understanding the asset side of the balance sheet.” He is not concerned about China credit issues in the near-term, defining the near term as the next two years, as “the capacity of the sovereign to deal with an issue, should it occur, is pretty significant and therefore important.”
Which appears to the market’s perspective as China is now the least risky relative to US in four years…
Finally, while he is less concerned about China’s credit, Levinson warns that the lack of volatility as stocks and bonds rally is the “scariest part” of global markets…
“If I am concerned about anything it’s where the level of implied volatility trades,” Levinson said in an interview in Singapore on Tuesday.
“It is extremely low. If there is something to be concerned about in global markets, it’s the endogenous level of where implied volatility is trading.”
Small market declines could escalate quickly, Levinson said.
“You don’t know when an event or an issue is going to present itself,” he said.
“But when it does, the nature of the volatility construct in markets today is such that if you have a modest correction it will turn into a much more severe one in a short period of time, because of the entrenched structural short-selling of volatility.”
Any increase in market turbulence could trigger dramatic selling and the biggest of those events could be a broader adoption of China’s PetroYuan contract… as Levinson says “will be a huge story” in Q4.
zerohedge
deadlykillerbeaz on Wed, 25th Oct 2017 7:28 pm
Make that 33,000,000 yuan.
MASTERMIND on Wed, 25th Oct 2017 7:50 pm
Madkat1 can I ask you a question? Why do you get pleasure off of other people’s misery?
fmr-paultard on Wed, 25th Oct 2017 8:11 pm
tell me how white meat can’t possibly be aprodisiac. i’d swim if i have to to get to american shore
http://www.dailymail.co.uk/news/article-5017711/Photos-ISIS-battle-devastated-Philippines-city.html
Boat on Wed, 25th Oct 2017 11:47 pm
China Has Shut Down Up to 40% of Its Factories in an Unprecedented Stand Against Pollution
“[B]asically, you’re seeing these inspectors go into factories for surprise inspections,” supply chain consultant Gary Huang from 80/20 Sourcing told NPR.
“They’re instituting daily fines, and sometimes – in the real severe cases – criminal enforcement. People are getting put in jail.”
https://futurism.com/china-shut-down-factories-stand-against-pollution/
makati1 on Thu, 26th Oct 2017 12:19 am
“China’s rise, America’s fall”
“Why do I think this? Because China is about to launch the PetroYuan and when it does the demand for dollars and for dollar denominated debt will shrink. When it does, I question whether the world will be so sanguine about the level of debt that America carries. If that happens then the value of the dollar is in question.
At the moment no matter what level of debt America carries, other countries need dollars. Dollars to pay for oil, since oil is traded in dollars. Dollars for their financial system so their banks can settle contracts for goods and services traded in dollars.
But over the last few years China has been systematically putting in place everything it needs to launch the Yuan as not only a rival to the dollar in trading and settling oil contracts but as a rival to the dollar as the world’s reserve currency.”
http://www.golemxiv.co.uk/2017/10/chinas-rise-americas-fall/
“But what happens to demand for Dollars and dollar debt when, not if, oil starts to be traded less and less in dollars? I suggest the world’s appetite will diminish quite quickly. As it does so, the world will start to see US debt in a different light. While the opposite will happen to China. And this is what interests me and makes me think China has a plan.”
makati1 on Thu, 26th Oct 2017 12:28 am
fmr, you are aware that Marawi is 560 miles from Manila with over 100 miles of ocean between? I’m safer than you are in the US. Maybe you need to move? LOL
makati1 on Thu, 26th Oct 2017 12:32 am
“Madkat1 can I ask you a question? Why do you get pleasure off of other people’s misery?”
Who said I get pleasure? I am just stating facts and pointing out that the US is getting what it deserve for the decades it has brought misery and death to millions of innocent people around the world. Blow-back is a bitch. I’m just a spectator.
Boat on Thu, 26th Oct 2017 1:22 am
Manilla has the most dense population in the world. It’s male population is 5’3. mak, I think the fumes that mess with your head come from pollution.
Manilla pollution rank 17th
1 Accra, Ghana 103.20 188.13
2 Ghaziabad, India 97.60 177.38
3 Tetovo, Macedonia 97.46 178.30
4 Faridabad, India 97.41 176.72
5 Kathmandu, Nepal 96.57 175.53
6 Cairo, Egypt 96.18 174.83
7 Kabul, Afghanistan 95.94 174.19
8 Karachi, Pakistan 95.70 172.83
9 Ulaanbaatar, Mongolia 95.53 177.52
10 Kanpur, India 94.61 172.75
11 Dhaka, Bangladesh 94.24 169.94
12 Ho Chi Minh City, Vietnam 93.80 170.04
13 Delhi, India 92.47 168.43
14 Beijing, China 92.46 167.71
15 Yangon, Myanmar 92.43 168.47
16 Hanoi, Vietnam 91.90 165.55
17 Manila, Philippines 91.85 166.32
18 Guangzhou, China 91.68 166.86
19 Varanasi, India 90.78 163.67
20 Gurgaon, India 90.73 163.21
21 Amritsar, India 90.26 163.54
22 Meerut, India 89.89 161.84
23 Raipur, India 88.91 165.28
24 Taichung, Taiwan 88.85 161.49
25 Noida, India 88.73 161.64
26 Casablanca, Morocco 88.04 159.92
27 Mexico City, Mexico 87.88 158.45
28 Shanghai, China 87.75 159.37
Boat on Thu, 26th Oct 2017 1:30 am
Notice how most the cities are Asian. Houston didn’t even make the list even though it’s refinery row and the energy capital of the world. Why is Manilla so polluted. You shyt out the window?
makati1 on Thu, 26th Oct 2017 2:48 am
Boat, First, are you talking about Metro Manila, which includes 17 cities or the actual Manila?
https://en.wikipedia.org/wiki/Metro_Manila
Manila covers about 16.5 sq.miles. Was founded in 1258. Has about 1.8 million inhabitants.
https://en.wikipedia.org/wiki/Manila
Makati is one of those 17 cities. ~10.5 sq miles. ~600,000 residents.
https://en.wikipedia.org/wiki/Makati
Density is not as important as you may think. Others here also pound on the population numbers as if they meant something. If my condo were multiplied to cover a square mile, it could house about 1 1/2 million people. Metro Manila could house 325 million, or the population of the US at that condo ‘density’. Crowded? Nope!
I live in a condo that covers less than an acre. It has about 2,000 people living on that acre. The life-style level is like that in the US, or better. I have neighbors from all over the world. It is one of hundreds in the city and at least 50 new ones are under construction currently. So what? It is no worse then your city.
I’ve lived in US cities. I prefer Manila. For one thing, it is cheaper by at least 70%. I could not even rent a similar apartment in my US home town for less than twice the price here and it would not be nearly as nice. Pollution is bad everywhere, not just in Asia.
Explain how that is worse than where you live without using the population as a reason.
BTW: Where did you show the stats for Manila pollution? Most pollution is not visible. You have it also and likely just as much, if not more. Refs?
Cloggie on Thu, 26th Oct 2017 3:23 am
Talking about reserve currency competition, here an article from 2010 where Vladimir the Great is quietly hinting that Russia would be willing to adopt the euro:
http://www.spiegel.de/international/europe/from-lisbon-to-vladivostok-putin-envisions-a-russia-eu-free-trade-zone-a-731109.html
Russian Prime Minister Vladimir Putin would like to see a free trade agreement between the European Union and Russia. In a Thursday editorial for a German newspaper, he describes his vision of “a unified continental market with a capacity worth trillions of euros.“
That is the market ranging from the Atlantic to Wladiwostok, in the future also known as The North, not to be confused with the West, that is the land where the sun sets.
An American MSM lately stated that without the #1 reserve currency status the dollar would lose 40% PPP. That would result in the following global economic pecking order:
The North (EU + Russia) – 20.7 + 4.0 = $25T
The East (China) – $23T
The West (USA) – $18.5T – 40% = $11T
PPP GDP data from wikipedia.
Europe has a “Golden Decade” ahead, China will keep growing, the US will need to retreat from planetary pole position because it will eventually lose sole reserve currency status.
China will probably growth faster than The North, but greater Europe will probably manage to incorporate those European-Americans who do not fancy too much becoming a minority in their own lands and will volunteer to join The North (Eurosphere).
http://tinyurl.com/yaqguroa
Just saying.
dave thompson on Thu, 26th Oct 2017 4:04 am
https://youtu.be/qWD15FBk3wg
Davy on Thu, 26th Oct 2017 5:11 am
“2010 where Vladimir the Great is quietly hinting that Russia would be willing to adopt the euro:”
LOL, ask Vlad today what he thinks. That was almost 18 years ago and no longer valid.
“An American MSM lately stated that without the #1 reserve currency status the dollar would lose 40% PPP. That would result in the following global economic pecking order:”
Do you have references otherwise you are talking out your ass. You are good with renewable tech but very poor with the understanding of finance and economics. You are agenda peddling, clogged.
“Europe has a “Golden Decade”
Yea, for those who love Allah. LMFAO
“China will probably growth faster”
China will likely draw the world into a financial fiasco when it can no longer keep its bubbles inflated. China is a global economic IED.
“http://tinyurl.com/yaqguroa”
When you are putting a link you should also put down the point you are linking otherwise you are practicing an intellectually camouflage for saying your personal opinion is fact based on the link. It is a typical ruse for someone stretching the truth.
Just saying. Double LOL
Davy on Thu, 26th Oct 2017 5:22 am
Looks like the Euro golden decade might not be well funded anymore by QE. Those who are Euro/China agenda peddling fail to tell us the whole story. This is convenient for their unbalanced agenda. It is very hard to bash the US but then admit their own faults. It is kind of like divorce court comedy. The US is not alone with financial issues like the extremist anti-Americans would like us to believe.
“ECB Preview: Here’s What Draghi Will Announce Today”
http://tinyurl.com/y7r3s455
“FUTURE PATH OF QE PROGRAMME Background: Despite inflation in the Euro-area (1.5% Y/Y headline) still short of the ECB’s ‘close to but below 2%’ target, the Bank has found itself under pressure to set out a road-map on how they will curtail purchases. This is a by-product of a pick-up in Euro-area sentiment and growth expectations but more pertinently, the concerns on the governing council surrounding the Bank moving ever closer to their alleged self-imposed purchase limit of around EUR 2.5trl (set to reach EUR 2.28trl by yearend).”
“Current expectations: Overview: Expectations for the Bank’s future plans focus on two key aspects of the programme; it’s size and it’s duration with purchases currently running at EUR 60bln a month and due to expire in December of this year. For the reasons stated above, the current size is expected to be reduced from its current level with the programme to be extended in order to avoid any type of ‘taper-tantrum’.”
Cloggie on Thu, 26th Oct 2017 6:47 am
LOL, ask Vlad today what he thinks. That was almost 18 years ago and no longer valid.
Make that 8 years. Completely wrong conclusion. This is what he said earlier this week:
https://twitter.com/EnglishRussia1/status/922157937958772736/video/1
“Russia from Brest-Litowsk to Wladiwostok is a European Space.”
Russia has currently a GDP-PPP of $4T, China in contrast $23T. Vlad in the long term has no choice and he knows it.
Do you have references otherwise you are talking out your ass.
I posted the link twice but you refused to watch “my stupid links”. Your problem, go find it yourself.
Yea, for those who love Allah. LMFAO
30 million Muslims on 500 million Europeans or 6%. That’s indeed 30 million too many but too early for you to celebrate our demise. You better worry about white Americans between 0-5 year old, who are no longer in the majority. America is gone, plain and simple. Your (((overlords))) plan to finish you off completely:
https://documents1940.wordpress.com/2017/09/27/paul-krugman-white-americans-are-losing-their-country/
https://documents1940.wordpress.com/2017/10/26/the-new-america/
Interestingly, these Muslims would not have been in Europe, is Europe wouldn’t have been involuntarily member of the US-empire. Time to take a hike from that empire.
Cloggie on Thu, 26th Oct 2017 6:51 am
Looks like the Euro golden decade might not be well funded anymore by QE.
Because it doesn’t have to! They re already thinking of raising interest rates:
https://www.wsj.com/articles/forget-ecbs-taper-investors-want-to-know-when-rates-go-up-1508923803
QE is a sign of weakness and sclerosis.
“Financial expert”, you?
Davy on Thu, 26th Oct 2017 7:24 am
“Make that 8 years. Completely wrong conclusion. This is what he said earlier this week:”
Sorry, the amount of shit you puke is hard to keep up with.
“This is what he said earlier this week: https://twitter.com/EnglishRussia1/status/922157937958772736/video/1”
Clogged, put down what he said actually and word for word. This is not my duty to check your work or allow you to create work for me. You are one big unsubstantiated link referencing brat that does not show what is supporting your fantasy world. You are an agenda peddling BS pusher using lone links to back up what you say without the actual words. Maybe you are not sure what those links say but they sound good right clogged.
“Russia has currently a GDP-PPP of $4T, China in contrast $23T. Vlad in the long term has no choice and he knows it.”
Please explain what you know about PPP and give us the link with the supporting data that supports your assertion above otherwise you are talking out your ass as usual. How do you know what Vlad is thinking? What a joke.
“30 million Muslims on 500 million Europeans or 6%. That’s indeed 30 million too many but too early for you to celebrate our demise.”
OOPs, clogged forgot to mention how many are produced each year of each color code. LMFAO. Extrapolate like you always do with your Eurogoodnews BS
“https://documents1940.wordpress.com/2017/09/27/paul-krugman-white-americans-are-losing-their-country/, https://documents1940.wordpress.com/2017/10/26/the-new-america/”
What was said dumbass. Write it out in plain English or are you afraid too?
Wordpress.com Is a clogged mind creation you are peddling as objective news. CLOGGED IS A FRAUD. Go to the page and check out who it is from.
“Interestingly, these Muslims would not have been in Europe, is Europe wouldn’t have been involuntarily member of the US-empire. Time to take a hike from that empire.”
OR
Interesting these European pussies can’t run their own affairs. They need help protecting themselves and they are unable to formulate their own polices. In my book that is a pussy.
Davy on Thu, 26th Oct 2017 7:31 am
“Because it doesn’t have to! They re already thinking of raising interest rates: https://www.wsj.com/articles/forget-ecbs-taper-investors-want-to-know-when-rates-go-up-1508923803”
Clogged, go to your link and show where the ECB is talking about raising rates. This this ling is saying is investors are wondering when ECB will raise rates because they are now talking about taper. The ECB is not even sure they can stop QE except very slowly to avoid a taper tantrum. It is unclear when the day comes what they will do. The ECB has already said whatever it takes and the EU history is one bending of the rules after another. They kind of remind me of China.
“QE is a sign of weakness and sclerosis.”
Finally you are seeing how messed up Europe is along with the US. Damn you told on yourself.
“Financial expert”, you?”
No, and I admit it but I can blow an uneducated blowhard like you out of the water. That does not take being an expert.
Davy on Thu, 26th Oct 2017 7:45 am
More of the same from a worn out central bank and a lackluster economy. Puke on that clogged mind.
“ECB Announces Dovish €30 Billion QE Taper Through September 2018 “Or Beyond”; Euro Tumbles”
http://tinyurl.com/y8k7eflq
“While the ECB kept all of its three key rates unchanged as expected, and also kept the pace of QE at €60 billion until the end of the year, confirming the numerous trial balloons overthe past month, the ECB announced that it would cut the rate of QE in half, to €30 billion “from January 2018 until the end of September 2018” adding that this would extend “beyond, if necessary” and “until inflation path has sustainably adjusted.” While the open-ended nature of the announcement was expected by some, the market has taken it as a dovish development, as well as the announcement that the ECB will reinvest the principal payments from maturing securities purchased under the APP “for an extended period of time after the end of its net asset purchases, and in any case for as long as necessary. Incidentally, according to preliminary calculations, at a tapered €30 billion rate of QE, the ECB would have until Q2 2019 before it hits the Bund scarcity bottleneck. Furthermore, the ECB’s the soothing promise that “this will contribute both to favourable liquidity conditions and to an appropriate monetary policy stance” has led to dovish plunge in both Eurozone yields and the EURUSD, which tumbled on the announcement which the markets clearly perceived as risk-friendly.”
Revi on Thu, 26th Oct 2017 8:14 am
We are going to see slowly creeping interest rates, and the petrodollar is going to go down slowly. I hope it holds up for the rest of my existence, but we’ll see. If we can get 20 more years out of it, I’m good. That takes me to 78, which is the average lifespan of a male around here.
Seriously, this could be a real problem for us. Of course if the dollar finally slips from reserve currency status it would lose its value and we could pay back the debt with a 20 trillion dollar coin or two!
fmr-paultard on Thu, 26th Oct 2017 8:15 am
A Marine sergeant returns home after completing her third tour in Afghanistan. Unable to sleep, wracked by paranoia and anxiety, she carries unseen wounds. It is only a matter of time before she can no longer bottle up her trauma, and a boisterous welcome home party provokes her into an explosive outburst. Her husband is at a loss, and the VA seems to be an impossible option. When she has nowhere to turn, she runs deep into the woods.
Release date: September 29, 2017 (USA)
deadlykillerbeaz on Thu, 26th Oct 2017 8:40 am
The Astros won game 2 last night, so America is a great place to be! Dodger Stadium was filled to the brim. Those poor Lost Angeles rich people had to watch in horror two back to back home runs! It was terrible, devastating!
Who cares about the yuan? Can’t buy World Series tickets with them, so what good are they?
joe on Thu, 26th Oct 2017 8:42 am
Euro truth. Poland right wing, Austria right wing, Greece bankrupt, Spain tearing apart, Italy tearing apart and bankrupt, Germany becoming right wing,
France cheese eating surrender monkeys, Holland Africanised muslim country,the rest are in various stages of denial. Its gonna be some shit pie to eat when Germany has to come up with and extra few hundred billion a year without the uk contribution. Tax requires tax hikes all across Europe cause the budget is funded by sales taxes, ha ha ha ha ha.
Cloggie on Thu, 26th Oct 2017 8:44 am
Interesting these European pussies can’t run their own affairs. They need help protecting themselves and they are unable to formulate their own polices. In my book that is a pussy.
We have 30 million invaders on 700 million.
The US, once 90% white, is now 6x% white and minority white in the [0-5] bracket, which means that white America is over.
According to Dave’s own definition the US must be ultra-pussies. And when everything goes wrong in the US, as it will, pussy-Dave will run off to Italy for protection in the Mother-civilization. How pussy is that?
Look Davy, I understand your fuming anger about the coming collapse of the empire, I feel sorry for you, but that is the way it is.
Poor Davy, the Soviet palls of the US no longer exist and have become the rather successful opponent of the US. Fair Weather empire US won’t last another decade. Don’t take it from me but from patriotic Americans:
https://www.youtube.com/watch?v=3GG1rFA_QEk
https://www.youtube.com/watch?v=LVskhzJR6NU
Davy is not a patriot like Buchanan but an imperialist, who doesn’t want to be called that way, but he is. Davy has no loyalties other than Washington. If Washington decides to import another 10 millions third worlders, Davy doesn’t care. He wants a world empire, but won’t get it.ROFL
joe on Thu, 26th Oct 2017 8:48 am
Dollar weakeness would be great for
US workers. If people could afford to buy Americans high quality output. The system as it is wants Americans to buy Chinas output so you need weak yuan and strong dollar. But a weak dollar allows Americans to sell competitively and also to buy domestically as well cause higher wages would balance imported inflation, but for you need to redistribute wealth, right now President Big Mouth wants to steal from the poor and give to tell rich. Tax cuts are useless for American workers if the dollar is strong.
Cloggie on Thu, 26th Oct 2017 9:07 am
Euro truth. Poland right wing, Austria right wing, Greece bankrupt, Spain tearing apart, Italy tearing apart and bankrupt, Germany becoming right wing,
France cheese eating surrender monkeys, Holland Africanised muslim country,the rest are in various stages of denial.
Eastern Europe has closed its borders with fences and is indeed right-wing and that includes Eastern Germany and Austria. Italy and Spain are virtually white, Greek economy (only 2% EU GDP) has bottomed out and Holland is far from being a “Africanised muslim country”: 17 million, 900k Muslims and 600k non-whites or 1.5 million non-whites or less than 10%. Holland is stillw whither than America ever has been, where Caliphate London is the only formerly white capital in Europe with a Muslim majority and mayor. Good luck with that! Anglo-Zionism is killing itself through mass immigration and has no nationalist parties to protect itself (billionaire Trump is a singularity)
Its gonna be some shit pie to eat when Germany has to come up with and extra few hundred billion a year without the uk contribution. Tax requires tax hikes all across Europe cause the budget is funded by sales taxes, ha ha ha ha ha.
You’re an idiot, the UK only paid 8 billion net in the EU for the privilege of having access to the common market:
[part 1]
Cloggie on Thu, 26th Oct 2017 9:07 am
https://fullfact.org/europe/our-eu-membership-fee-55-million/
Britain was only #9 in the contributors ranking:
https://www.cbs.nl/en-gb/news/2016/50/netherlands-largest-net-contributor-eu-this-century
The UK economy is not that impressive you know, they don’t even have a home-grown car industry anymore, unlike D, F, I, CZ and SE.
And now what joe, how do you think you are going to achieve Brexit without paying 60-100 billion euro? Don’t worry, we take Gibraltar and Scotland for that money.
[part 2]
Cloggie on Thu, 26th Oct 2017 9:08 am
Oops, UK preparing to sell a part of their fleet:
https://www.rt.com/uk/407818-royal-navy-defence-cuts/
“UK officially the worst-performing advanced economy in the world in post-Brexit nosedive”
http://www.theolivepress.es/spain-news/2017/06/01/uk-officially-worst-performing-advanced-economy-world-post-brexit-nosedive/
Only idiots would volunteer to leave the white world and white markets. Russians in contrast would love to join and someday they will.
[part 3]
rockman on Thu, 26th Oct 2017 9:27 am
Cloggie – “…oil goes to China, yuan to Iran or Russia or Venezuela…The trick is make their trading partners to want the yuan as well. Trading partner could want the yuan as China has a lot of products on offer.” Mucho thanks. That much I assumed: the Chinese pay Iran yuan for oil it buys from them and the returns those yuan for goods Iran buys from China.
But back to the critical question IMO: how does Iran calculate how many yuan a Chinese company pays for its oil? A) Does it decide regardless of what it’s selling oil for in US dollars? Or B) does it use the current yuan/$ exchange rate to determine the price in yuan? If it’s A then exactly how is it determined? And if it’s B then essentially China is paying for the Iranian oil in US petrodollars even if none are are directly transfered to Iran.
So congrats to Cloggie for gutting up and at least providing. And anyone of you chicken sh*t mother f*ckers that have avoided addressing the real issue please feel free to answer. LOL. Or just continue you debates against each other on matters that have no direct bearing on this meme.
BTW: “China has gold and the US isn’t even talking about how much they have anymore, so China wins on amount of vaulted gold to back the petroyuan.”
First, a definition for those not aware:
“Foreign-exchange reserves (also called forex reserves or FX reserves) is money or other assets held by a central bank or other monetary authority so that it can pay if need be its liabilities, such as the currency issued by the central bank, as well as the various bank reserves deposited with the central bank by the government and other financial institutions. Reserves are held in one or more reserve currency, mostly the United States dollar and to a lesser extent the Japanese yen.”
Now the tricky thing the World Gold Council has calculating how much gold any country has backing its currency. “The gold listed for each of the countries in the table may not be physically stored in the country listed, as central banks generally have not allowed independent audits of their reserves. Gold leasing by central banks could place into doubt the reported gold holdings in the table below. On 17 July 2015, China announced that it increased its gold reserves by about 57 percent from 1,054 to 1,658 metric tons, while disclosing its official gold reserves for the first time in six years.”
So according to the WGC the US has 75% of the gold needed to back its forex shares. China…2.4%.
https://en.m.wikipedia.org/wiki/Gold_reserve
Cloggie on Thu, 26th Oct 2017 9:47 am
how does Iran calculate how many yuan a Chinese company pays for its oil?
2015 article where Forbes is basically asking your question:
https://www.forbes.com/sites/panosmourdoukoutas/2015/12/28/how-many-yuan-for-a-barrel-of-middle-eastern-oil/#76164ac87104
The article gives no definite answer, but brings up the role of the IMF as a replacement mechanism for simply paying in yuan for the current dollar-yuan exchange rate.
I would say that the mighty free market mechanism will find a yuan price soon.
Meanwhile, at least Venezuela has no problem establishing a yuan-price for its oil:
http://www.businessinsider.com/venezuela-publishes-oil-prices-in-yuan-2017-9?international=true&r=US&IR=T
Interesting to watch is if China is, well, buying it.
My gut feeling tells me that Chinese and Venezuelan negotiators will sit around the table and work out a price, with every possible exchange rate taken into consideration. But I can also imagine that China will not negotiate too though initially in order to get their yuan-oil-price scheme taking off and simply break the dollar habit globally.
We will most of all see yuan and dollar competing here, leaving the option open for oil producing countries to play yuan and dollar out against each other.
Many suspected that one important motive for the attacks against Iraq and Libya was that the both had threatened to circumvent the dollar. I do not think the US will do the same with China. This could also imply that the “petro-Euro” will get a second chance.
fmr-paultard on Thu, 26th Oct 2017 9:52 am
told you supertard has the answers. i’m only here to hold the speakerphone and yell ZH is enemy fake news!
Davy on Thu, 26th Oct 2017 10:06 am
Clogged, you do realize Venezuela may default tomorrow. Great choice of countries to use as an example. Lol
BTW, more clogfraud linking wihout the words to reference his assertion. Clog is a fraud.
Cloggie on Thu, 26th Oct 2017 10:27 am
Clogmeister, you do realize Venezuela may default tomorrow. Great choice of countries to use as an example.
I do, so this would be a splendid moment for both China and Venezuela to get some major oil-transactions-in-yuan going. Would be surprised if they wouldn’t. After all a few billion dollar, uh I mean a few billion yuan times 7 are peanuts for China. I mean the Chinese can now buy a country for pennies on the dollar… em yuan.
Remains to be seen if Monroe (not the one with the white dress) would like this development, I doubt it.
https://en.wikipedia.org/wiki/Monroe_Doctrine
If I remember well Venezuela needs 800 million soon, peanuts
Cloggie on Thu, 26th Oct 2017 10:43 am
https://www.cnbc.com/2017/10/11/china-will-compel-saudi-arabia-to-trade-oil-in-yuan–and-thats-going-to-affect-the-us-dollar.html
“I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” Carl Weinberg, chief economist and managing director at High Frequency Economics, told CNBC
11 oct 2017
Davy on Thu, 26th Oct 2017 10:57 am
Clog, you are hilarious. I am not even going respond because that would give you legitimacy. Venezuela is a black hole and you are oblivious.
Davy on Thu, 26th Oct 2017 11:01 am
CNBC is selling something, clogged. You not being American and clueless with financial issues would not know about CNBC. Further you are quoting a Jew. LMFAO.
Cloggie on Thu, 26th Oct 2017 11:18 am
“Clog, you are hilarious. I am not even going respond because that would give you legitimacy”
Em, I guess I have to thank you as you “legitimize me” by responding after all. Again many thanks!
“CNBC is selling something, clogged. You not being American and clueless with financial issues would not know about CNBC. Further you are quoting a Jew.”
Are you saying that the US media (and Jews) routinely lie?
That is good to know!
Apneaman on Thu, 26th Oct 2017 12:50 pm
Russia-China Tandem Changes the World
“The West’s persistent demonization of Russia over the past decade has pushed Moscow into a de facto alliance with China, changing the geopolitical landscape in ways that U.S. pundits still won’t admit, writes Gilbert Doctorow.”
https://consortiumnews.com/2017/10/23/russia-china-tandem-changes-the-world/
deadlykillerbeaz on Thu, 26th Oct 2017 2:02 pm
Seeking alpha says it ain’t so, a gold backed petroyuan is all smoke.
https://seekingalpha.com/article/4113561-gold-backed-oil-yuan-futures-contract-myth
Boat on Thu, 26th Oct 2017 2:21 pm
I am happy Russia and China are getting closer. China needs the energy and Russia needs money. Since the US has been at odds over various issues with both countries for decades I dought the US has much to do with their alliance. Russia and China have had clashes in the past. Border deals have been brokered and trade is increasing. The signs of trust are growing but all powerful countries have a long memory.
Apneaman on Thu, 26th Oct 2017 2:23 pm
“I dought the US has much to do with their alliance.”
Bahahahahahahahahahahahahahahahaha
Davy on Thu, 26th Oct 2017 3:44 pm
Great article KillerB!
makati1 on Thu, 26th Oct 2017 5:31 pm
Ap, Boat has no clue.
Davy on Thu, 26th Oct 2017 5:45 pm
did you read killer B’s referenced article mad katter? If not do you want summarize the points?
makati1 on Thu, 26th Oct 2017 5:48 pm
More news from the land of taxes:
“Trump’s Chief Economic Adviser Floats Raising Gas Taxes To Pay For Infrastructure”
http://www.zerohedge.com/news/2017-10-26/trump%E2%80%99s-chief-economic-adviser-floats-raising-gas-taxes-pay-infrastructure
Cash strapped governments on all levels are going to be increasing taxes and fees to bleed the serfs.
makati1 on Thu, 26th Oct 2017 5:57 pm
Davy, seeking alpha is not a reliable info source.
Headquarters – Ra’anana, Israel
“The company reports it has distribution partnerships with MSN Money, CNBC, Yahoo! Finance, MarketWatch, NASDAQ and TheStreet,…”
https://en.wikipedia.org/wiki/Seeking_Alpha
Apneaman on Thu, 26th Oct 2017 5:57 pm
Connect the dots
China bans foreign waste – but what will happen to the world’s recycling?
The move by the world’s largest recyclable materials importer will leave other nations searching for alternative waste-management solutions
http://www.independent.co.uk/environment/china-foreign-waste-ban-recycling-a8011801.html
China’s recyclers eye looming electric vehicle battery mountain
“SHANGHAI (Reuters) – After years of dismantling discarded televisions and laptops, a Shanghai recycling plant is readying itself for a new wave of waste: piles of exhausted batteries from the surge of electric vehicles hitting China’s streets. ”
“The plant has secured licenses and is undergoing upgrades to handle a fast-growing mountain of battery waste, said Li Yingzhe, a manager at the facility, run by the state-owned Shanghai Jinqiao Group.
“We believe there will be so much growth in the number of electric vehicles in the future,” he said.”
https://www.reuters.com/article/us-china-batteries-recycling-insight/chinas-recyclers-eye-looming-electric-vehicle-battery-mountain-idUSKBN1CR0Y8
Apneaman on Thu, 26th Oct 2017 6:07 pm
Davy, is Seeking Alpha your new super star go to source?
Or is it just the author
“Koos Jansen
Deep Value, research analyst, newsletter provider, gold
BullionStar”
Ooooo deep value, sounds impressive.
What kinda fucking retarded name is Koos, anyway?
As long as it makes you feel better because it’s another rock to throw at Mak in your boring tiring lame mud slinging. There has been plenty of it on this site and it goes like this
2013-Davy VS someone
2014-Davy VS someone
2015-Davy VS someone
2016-Davy VS someone
2017-Davy VS someone
Anyone want to bet me that next year won’t be
2018-Davy VS someone
I thought not.
Davy on Thu, 26th Oct 2017 6:13 pm
Ape, did you read the article or do I need to summarize it for you? You are a school dropout so I am not sure you know what is in the article.
makati1 on Thu, 26th Oct 2017 6:19 pm
“Russia Triples Gold Reserves in Preparation for Full-Scale Economic War with the United States”
http://thefreethoughtproject.com/russia-triples-gold-reserves-economic-war/
The US has no gold.