Dollar no longer primary oil currency as China begins to sell oil using Yuan

Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine." "On Thursday, Sept. 6... just a few days ago, China made the official announcement.

China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. - Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

www.examiner.com...

If this it true its big news and shows the changing economic shifts occurring in the world right now. The US does all it can to keep countries trading oil in the dollar. I guess it keeps the dollar a nomination of value.. The world is a changing..and im sure if this is true it will have a further affect on the US economy..

Now the US should force China to let its currency attain its normal value instead of forcing it to be devalued to give them the edge in trading. If they do not comply, goodbye most favored status.

reply to post by OccamsRazor04


You say that as if Petrol Dollars do not give the U. S. a huge and distinct advantage.

reply to post by Terminal1


I say that as if our dollar is allowed to flow to its true worth more or less. The Chinese severely devaluate their dollar giving them a huge competition.

There are currencies tied to the Euro, as well as Canadian dollar. Not sure what that has to do with anything I said.

This is massive, im surprised that i have not heard about this sooner, this is really being kept on the down low.

China are really starting to flex their political and military powers.

This just increased political tension on our little sphere ten fold.

Stars and Flags for sharing.

Namaste.

reply to post by WiseThinker


China has no military power. They are trying to flex political and economic power though. It will become news when their currency starts being used.

This story is a lot bigger than it seems... the U.S. has invaded and overthrown Governments because they attempted to undermine the petrodollar monopoly by using their own currency. Saddam attempted to do it with the EURO and Gaddafi attempted to do it with the Gold Dinar (more info).

But China isn't just any little Middle Eastern nation is it. China is a whole other ball game. It's not so easy to push them around and terrorize their people. China has the funding and man power to fight any war you throw at them. We must avoid war at all costs because it would destroy our planet.

If this report is real and if China is actually serious about this you can expect some huge developments in the near future. The U.S. dollar is propped up so much by it's heavy use in oil trade, that's why the U.S. Government will tear apart entire nations to stop them from threatening that monopoly.

Originally posted by ChaoticOrder
This story is a lot bigger than it seems... the U.S. has invaded and overthrown Governments because they attempted to undermine the petrodollar monopoly by using their own currency. Saddam attempted to do it with the EURO and Gaddafi attempted to do it with the Gold Dinar (more info).

But China isn't just any little Middle Eastern nation is it. China is a whole other ball game. It's not so easy to push them around and terrorize their people. China has the funding and man power to fight any war you throw at them. We must avoid war at all costs because it would destroy our planet.

If this report is real and if China is actually serious about this you can some huge developments in the near future. The U.S. dollar is propped up so much by it's heavy use in oil trade, that's why the U.S. Government will tear apart entire nations to stop them from threatening that monopoly.

When did we invade Europe and Canada. You do realize many countries around the world use the Euro as their petrodollar.

reply to post by OccamsRazor04


Educate yourself.

The most renegade of the lot could be Libya and Iraq, the two that have actually been attacked. Kenneth Schortgen Jr., writing on Examiner.com, noted, "[s]ix months before the US moved into Iraq to take down Saddam Hussein, the oil nation had made the move to accept Euros instead of dollars for oil and this became a threat to the global dominance of the dollar as the reserve currency and its dominion as the petrodollar."

According to a Russian article titled "Bombing of Lybia - Punishment for Ghaddafi for His Attempt to Refuse US Dollar," Qaddaffi made a similarly bold move: he initiated a movement to refuse the dollar and the euro and called on Arab and African nations to use a new currency instead, the gold dinar. Qaddafi suggested establishing a united African continent, with its 200 million people using this single currency. During the past year, the idea was approved by many Arab countries and most African countries. The only opponents were the Republic of South Africa and the head of the League of Arab States. The initiative was viewed negatively by the USA and the European Union, with French President Nicolas Sarkozy calling Libya a threat to the financial security of mankind; but Qaddafi was not swayed and continued his push for the creation of a united Africa.

Libya: All About Oil, or All About Banking?

Saudi Arabia, the largest oil producer with the largest known oil reserves, is the leader of OPEC. It is the only member of the OPEC cartel that does not have an allotted production quota. It is the "swing producer," i.e., it can increase or decrease oil production to bring oil draught or glut in the world market. This enables it more or less to determine prices.

Oil can be bought from OPEC only if you have dollars. Non-oil producing countries, such as most underdeveloped countries and Japan, first have to sell their goods to earn dollars with which they can purchase oil. If they cannot earn enough dollars, then they have to borrow dollars from the WB/IMF, which have to be paid back, with interest, in dollars. This creates a great demand for dollars outside the U.S. In contrast, the U.S. only has to print dollar bills in exchange for goods. Even for its own oil imports, the U.S. can print dollar bills without exporting or selling its goods. For instance, in 2003 the current U.S. account deficit and external debt has been running at more than $500 billion. Put in simple terms, the U.S. will receive $500 billion more in goods and services from other countries than it will provide them. The imported goods are paid by printing dollar bills, i.e., "fiat" dollars.

The Invasion of Iraq: Dollar vs Euro

reply to post by ChaoticOrder


I am trying to educate myself. My question remains when did we invade Europe and Canada? Maybe I was on vacation that week and missed the news. If we didn't, then your hypothesis looses a lot of weight as many countries do NOT use the dollar and use the Euro, or Canadian Dollar.

reply to post by ChaoticOrder


Oh, and I will gladly educate you a bit further as you seem to have nothing for me. China has spent a great deal of effort devaluating their currency. If they replaced the dollar their currency would skyrocket. What happens to a country who lives on cheap exports when their currency skyrockets?

reply to post by OccamsRazor04

If we didn't, then your hypothesis looses a lot of weight as many countries do NOT use the dollar and use the Euro, or Canadian Dollar.

Some may use other currencies, but it isn't a lot and their total trade volumes are probably not very significant. Why do you think the title of the article says "dollar no longer primary oil currency". The point is that the dollar is by far the primary petrocurrency. And if you read the second excerpt I posted it explains how a great deal of the worlds oil trade is confined to dollars. Large oil producers, especially in the Middle Eastern region, are forced to sell their oil on U.S. dollars. And we take a look at the top countries listed by oil production rates we see that China is 5th on that list, so they clearly warrant attention.


EDIT TO ADD:

And here's the part you should really pay attention to ok:

Oil can be bought from OPEC only if you have dollars. Non-oil producing countries, such as most underdeveloped countries and Japan, first have to sell their goods to earn dollars with which they can purchase oil. If they cannot earn enough dollars, then they have to borrow dollars from the WB/IMF, which have to be paid back, with interest, in dollars. This creates a great demand for dollars outside the U.S. In contrast, the U.S. only has to print dollar bills in exchange for goods. Even for its own oil imports, the U.S. can print dollar bills without exporting or selling its goods.

Now keep in mind what the article says:

and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar

Originally posted by ChaoticOrder
Why do you think the title of the article says "dollar no longer primary oil currency".

Because they wanted it to be sensational? It still is the primary currency. As I stated multiple times there are already other currencies, and right now China does not WANT to be the primary currency it would destroy their economy.

reply to post by OccamsRazor04

Originally posted by OccamsRazor04

Originally posted by ChaoticOrder
Why do you think the title of the article says "dollar no longer primary oil currency".

Because they wanted it to be sensational? It still is the primary currency.

My point was actually about it being called a "primary oil currency".. but you're correct, strictly speaking it is still the primary currency because the majority of oil trade is conducted in U.S. dollars. But that isn't exactly the point. The point is that China has a huge oil economy and them trading oil with their own currency puts a huge dent in that primary status. The implications also go beyond just the Chinese economy, read the edit I made to my last post.

right now China does not WANT to be the primary currency it would destroy their economy.

Obviously they aren't attempting to gain the primary status. But as you can't seem to grasp that is not exactly the point here. You are attempting to marginalize the issue by making absurd arguments like "well it's not like they now own the primary petrocurrency". No one is making such stupid claims, the point here is that their actions are serious.

But in all honestly I have no idea why I am arguing with you. Your opinion was rendered irrelevant the moment you said "China has no military power". You just really can't see the true force or implications of anything can you. My post was not a "hypothesis", it is a fact... this will have very big and real implications, it's not a small unimportant scrap of news.

That financial crisis that was on the horizon is now coming into closer view. A lot has been happening very quickly lately, but the the fall of the U.S. dollar has been like watching a train wreck in slow motion. I can see that the bridge ahead is washed out and the train isn't even trying to slow down. I'm headed for the last car, maybe that won't sustain as much damage in the crash.

Originally posted by ChaoticOrder
reply to post by OccamsRazor04

 

Originally posted by OccamsRazor04

Originally posted by ChaoticOrder
Why do you think the title of the article says "dollar no longer primary oil currency".

Because they wanted it to be sensational? It still is the primary currency.

My point was actually about it being called a "primary oil currency".. but you're correct, strictly speaking it is still the primary currency because the majority of oil trade is conducted in U.S. dollars. But that isn't exactly the point. The point is that China has a huge oil economy and them trading oil with their own currency puts a huge dent that primary status. The implications also go beyond just the Chinese economy, read the edit I made to my last post.

right now China does not WANT to be the primary currency it would destroy their economy.

Obviously they aren't attempting to gain the primary status. But as you can't seem to grasp that is not exactly the point here. You are attempting to marginalize the issue by making absurd arguments like "well it's not like they now own the primary petrodollar". No one is making such stupid claims, the point here is that their actions are serious.

But in all honestly I have no idea why I am arguing with you. Your opinion was rendered irrelevant the moment you said "China has no military power". You just really can't see the true force or implications of anything can you. My post was not a "hypothesis", it is a fact... this will have very big and real implications, it's not a small unimportant scrap of news.

edit on 14/9/2012 by ChaoticOrder because: (no reason given)

What kind of military power do you think China has? It would be like a full grown adult with body armor and weapons taking on a naked 5 year old. Tell me, what force projection does China have? You have bought into some sort of hype that doesn't match reality, that is your problem. I will say it again, China's military power is laughable.

reply to post by OccamsRazor04


Really I have no idea why we are even getting into this, it's completely off topic and really just immature to be debating who has bigger balls than who.

But just let me point out a few things. China has the largest population on Earth. China also has the largest number of active military personnel of any country on Earth and their military expenditures are 2nd behind the U.S. Even a huge bird hunting spider can be taken down by a million baby ants my friend.

So I think it's time to face reality here.

Originally posted by ChaoticOrder
reply to post by OccamsRazor04

 

Really I have no idea why we are even getting into this, it's completely off topic and really just immature to be debating who has bigger balls than who.

But just let me point out a few things. China has the largest population on Earth. China also has the largest number of active military personnel of any country on Earth and their military expenditures are 2nd behind the U.S. Even a huge bird hunting spider can be taken down by a million baby ants my friend.

So I think it's time to face reality here.

edit on 14/9/2012 by ChaoticOrder because: (no reason given)

Of course you gave the predictable answer. To use your anology a trillion ants are harmless to a flying bird. As I said, force projection. China has ZERO ability to project it's forces. They can have a billion man army and they would still have no military power. They can not reach us, we can reach them. It is on topic because it shows you buy into what people say and are unable to think critically to see the truth. At least tell me you don't think China owns America through our debt.

Ok... I just got time to read the full article and there's another aspect to the story which we seem to be ignoring. The trade deal between Russia and China:

Since China is not a natural oil producing nation, the question most people will ask is how will the Asian economic power get enough oil to affect dollar hegemony? That question was also answered by Lindsey Williams when he pointed out a new trade agreement that was signed on Sept. 7 between China and Russia, in which the Russian Federation agreed to sell oil to China in any and all amounts they desired.
---
"On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want... there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar." - Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11

Now we're talking serious business here. This is humungous. Russia is the largest oil producing country on Earth. This has opened the floodgates for a whole world of alternative-currency oil trade. Wow folks... I'm stunned. The media will not make a peep about this I bet.

reply to post by OccamsRazor04


So what exactly are you saying? The U.S. can beat them by using nukes? Don't they have nukes too? What makes you think U.S. technology is so superior?