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

reply to post by purplemer


According to Tariq Ramadan, the Chair of "Contemporary Islamic Studies" at Oxford, in the last eight years, China has increased its economic penetration of the Mid-East seven-fold.

That is amazingly fast expansion. We will see how this unfolds.

Back during the 2008 Davos Economic Forum in Switzerland, Soros was urging the other member nations to drop the US Dollar as Reserve Currency.

Luckily for us, they did not take his advice. Or we'd be paying $14 for a gallon of gas. The value of the USD would have dropped like the proverbial lead brick.

Yeah, the US is the mightiest military force in the world, so good that it allowed 19 supposed hijackers to cause 3000 deaths! Excellent work by the military there eh?

I'm sure if the US were to ever come under a real attack their military would struggle because they are invading too many countries, and have too many resources tied up. America cannot even afford their own army, it's created with money borrowed from China!

As for the dollar, this is good news, hopefully America will lose their grip and will stop trying to rule the world. America owe so much money, and if they had not borrowed so much money then they would be nobodies, and they are just where they are because they have borrowed the money to create a false status in the world. Take back all the trillions the US owes and they are nothing.

reply to post by purplemer


Any nation who would choose to do so would be stupid. If it does happen, and I mean in a widespread way, the Yuan would likely start moving toward it's true value - or really, oil prices would expose the Yuan for what it really is, and the domino effect would collapse not of China's economy, but their export dominance in the process. The US should encourage this, as well as making a trillion dollars in low-interest loans available to start up manufacturing businesses in the U.S. Set the next century up real nice, real quick.

Originally posted by DeeKlassified
Yeah, the US is the mightiest military force in the world, so good that it allowed 19 supposed hijackers to cause 3000 deaths! Excellent work by the military there eh?

I'm sure if the US were to ever come under a real attack their military would struggle because they are invading too many countries, and have too many resources tied up. America cannot even afford their own army, it's created with money borrowed from China!

As for the dollar, this is good news, hopefully America will lose their grip and will stop trying to rule the world. America owe so much money, and if they had not borrowed so much money then they would be nobodies, and they are just where they are because they have borrowed the money to create a false status in the world. Take back all the trillions the US owes and they are nothing.

I don't know what the propoganda regarding US debt is about, but clearly it's working. You, amd far too many others have fallen for it. Hook, line, amd sinker, when the facts are readily available for anyone who has an internet connection available to them.

First off, China only owns about $1.1T of U.S. Debt, the U.S. Total debt is about equal to 1 year's GDP (in other words, we're at about 100% debt to GDP ratio. Far better off than we were in the 1940's, and far better than many nations, not much worse than most others, the U.S. Also has assets in excess of $200 trillion. If you truly believe what you posted about the US only having what it has because of government deficits, then you need to learn the basics of economics and accounting, because you are extremely far off from the facts. This isn't a matter of opinion, you are simply misinformed, and have not educated yourself on the topic.

As for military might equating to whether or not a clandestine terrorist attack can happen, the two simply don't equate. Honestly, if Russia and China decided to combine forces to invade the U.S., my only concern is that it would go nuclear. Outside of that, I don't think I would even need to be concerned that a single bomb or troop could land within 500 miles of Chicago.

Originally posted by AgentX09

Originally posted by boeserwolf
As with the downfall of any empire, the USA will become more and more irrelevant on the world stage. This is just the beginning.

How does the country with the greatest military machine in history EVER become"irrelevant"?

One word

Romans

look them up you might see how over inflated military rule can collapse and if any power/country follows the same model it will happen to them also over time.

This fills me with a sense of foreboding, moreso than any news of late.

When we here in the west think of TPTB we often forget that those are western powers.
There are two great powers in the world right now. The old money bankers who control
our western countries and our western politics and of course the old money powers
of the east.

The two factions have cooperated out of necessity for the last century, sharing the pie of
wealth. I fear what will become of the world once these two powers go head to head
for dominance. Rest assured we will be used like pawns to fight this struggle. Led by the
nose thru media to believe we are fighting the good fight, when actually, we will be fighting
the battle for a few wealthy men who desire ultimate control of the planet.

This is bad news.... could be the worst news ever

reply to post by purplemer


I just want to add that this thread title is a complete and total falsehood. It seems some of the replies have been made by people who only read the title, and didn't read on to find it is absolutely, unequivocally not true at all.

Originally posted by benrl
Most likely the US response to this would be economic, as you say China is not a target they can intimidate with Military might.

They could however respond with Tariffs and increased taxes on goods coming from china (something that should of been happening the whole time) China and the US economy has become too interdependent on one another.

China is trying to insert its will on the world stage, of course the previous powers would oppose it in some way.

How many jobs would China's growing middle class lose if suddenly it was cheaper to make things like the Iphone in another country due to the US finally cracking down on imports?

This is probably the opening shots in economic warfare.

you hit the nail right square on the head. i have been saying that we need to put import taxes on all goods made in china for years. not just chinese owned companies, but any U.S. owned company goods made and returned here for sale. the global economy thing is just a big scam for the tptb to consolidate their power. one of the ways they can do that is to control the money. the euro was the first move. and then the talk of the amero was the next. but it seems that that has petered out. i'm just waiting to see what they try next.

and i think your right about the first shots of the economic war being fired. i don't think that it will be much longer before it escalates and we will be seeing a increase in import taxes.

but i think that in the end we will have to face china and russia both in a, i hate to say it but it is what it's gonna be a WW III.

Oh good. The derailment of this thread stops at page 2, I look forward now to reading some informative and educated responses.

Well argued against ignorance ChaoticOrder

reply to post by ChaoticOrder
Yes we in the US made the deal with the
saudi's in the 70's to only sell in US dollars and we would protect them from all enemies, even the one's from inside!
It was a deal that made the US dollar very strong but now they are starting to sell to other monies, which will kill the dollar and then all hell will break loose! You will have to pay 20 US for a loaf of bread and so on. As bad as things are now if the dollar loses it reserve rights then it will be hell for Americans to buy anything, we would be in really terrible shape!

Originally posted by AgentX09

Originally posted by boeserwolf
As with the downfall of any empire, the USA will become more and more irrelevant on the world stage. This is just the beginning.

How does the country with the greatest military machine in history EVER become"irrelevant"?

The same way rome did.

reply to post by purplemer


Good and important information in the OP.

And scary that this could be derailed into a war mongering thread.

The fact that Ron Paul did not even get nominated proves that the majority of the US people has no appreciation for what history could teach them. Ignorance may be bliss, but not a lasting one. Who does not learn voluntarily will be taught by life.

It is a horrible mistake to believe that war is an answer to ones own failure to compete by production.
US people should claim their rights to individual freedom back (from their own government!) and focus on their strengths like creativity, free thinking and dedication. THIS is the answer to other countries raising and becoming a competition.

And to the scared little minds holding on to their nukes: It is a vicious lie that has been shoved down your throats that not everybody on this planet could have a good life at the same time. Resources are ample and all people are valuable. Learn about other nations, their cultures, their problems. Marry a Chinese girl (or an Indian, a Russian, or a Brazilian). And start to understand. It is not the Chinese people who are causing problems for your personal life. It is the fact that you have permitted unethical and paranoid people to control your country and corporations. Stop THEM instead of nuking other countries.

ahaha.... so now wot happens??

Does the USA make some BS story to invade China?? Like it did with Saddam and Ghadaffi. They tried to sell their oils using the Euro and gold and look at wot happened to them.

The USA government make me sick with their contrived BS stories, just so they can monopolize on the rest of the world.

This whole thread based on its title is bogus. China does not sell oil it imports it because of lack of domestic supply. Plus the world cannot trust a currency that is backed by a government that does not have the consent to govern by its own people. The United States is the oldest continuous operating government in the world and is consistent aka you can depend on. El fin.

reply to post by Quark


No its not bogus. Read the link. China does not have oil but Russia has offered to sell oil to China without using the dollar..

reply to post by panicman66

Does the USA make some BS story to invade China?? Like it did with Saddam and Ghadaffi

I do not think the US has the power to invade China. It struggles against men on camels hiding in caves.. China has the worlds largest population and is an emerging superpower. I think if the US and China had a war there would be no winners and both sides are aware of that...

reply to post by benrl

They could however respond with Tariffs and increased taxes on goods coming from china (something that should of been happening the whole time) China and the US economy has become too interdependent on one another.

I do not understand what your trying to achieve here. The consumer ends up for the increases in cost. If you take goods coming from China then the cost will go up and the end user pays more.. Please explain how this is going to help anyone...

Originally posted by purplemer
reply to post by benrl

 

They could however respond with Tariffs and increased taxes on goods coming from china (something that should of been happening the whole time) China and the US economy has become too interdependent on one another.

I do not understand what your trying to achieve here. The consumer ends up for the increases in cost. If you take goods coming from China then the cost will go up and the end user pays more.. Please explain how this is going to help anyone...

well i can't say for benrl, but my line of thinking is that if cheap, shabbily made chinese goods prices go up, people will start looking for and purchasing U.S. made goods and U.S. mfgs will start to return.
already many mfgs are coming back to the U.S..

reply to post by dogstar23


China and Russia have no reason to try to invade the USA. They can just crush it from a far by wrecking its economy and they really do not have to do much on that aspect since teh USA is doing a bang up job of it on its own. All china and russia have to do is wait till the USA punches itself out.

The USA will fall from within.

Today, most of the oil is sold in dollars. And, all countries need oil. So, most countries need to get dollars. This is a thing that benefits USA a lot. Because while this situation persists, the dollar will continue to rise almost no matter what. There is much speculation about exactly what USA has done to keep this status quo. The value of the dollar reflects the fact that everybody needs oil, not that everybody needs American goods.

To buy goods would be the other reason to buy dollars. I need to get a bit technical to explain this. Lets say company A makes a contract with a Chinese company to buy some goods. They will mostly make this contract in dollars in todays world. The payment and the delivery of goods happens in the same time. But, between the order and the delivery there is a long time. In this period of time, the dollar-value can fall or rise a great deal. This gives USA a competitive advantage. So, why won't China just start to sell in their currency today? Because it makes a lot of sense to have the oil-price pegged to the transaction. The world-economy is so dependent on oil that most other variables will follow or influence the oil-price in some manner.

The alternative is something that is being brokered by BRIC now. Russia and Brazil has oil, China and India has manufacturing. So, those countries can benefit a huge deal by eliminating the need for dollars. Some countries will manufacture stuff, and other countries will give back oil. That means that these countries need to stockpile each others currencies. Some of this stockpile will be pure currency. But, a lot of it will also be other stuff. Some of that currency will be government bonds that will allow the countries to borrow money at favorable terms instead of being a victim of international loan-sharks. Other parts of the currency needed for trade will be tied into property and stocks, boosting their economy. It makes a lot of economical sense for these countries to do this deal.

But, that emerging economies will do much of the inter-trade without dollars, is something USA will loose much money on. It might be that they won't idly sit by. But, ti might also be that this process is too big to stop. It might also be that this backfires for all parties involved and creates special drawings rights. If that happens, a lot of currency transactions will be more efficient. The countries who have positioned themselves correctly in the old system will have a harder time if that happens. We live in interesting times indeed.