China’s Moves to Destroy US Petrodollar with Introduction of Gold-Backed ‘Petro-Yuan’

petrodollarpetrodollar

The anticipated roll-out of what is being termed the Petro-Yuan is expected to be an international game-changer for investors that haven’t paid enough attention to recent de-dollarization moves by China and Russia. Analysts largely consider the move by Beijing, announced in September, as a major move against the global dominance of the U.S. dollar.

Adam Levinson, founder and chief investment officer of Graticule Asset Management Asia, said that China’s planned introduction of the Petro-Yuan is a “huge story” that will serve as a “wake up call” to investors during an interview with Bloomberg.

As one of the world’s top energy importers, China, is planning to introduce a yuan-denominated oil contract as early as this year. Analysts call the plan, announced by Beijing in September, a huge move against the dollar’s global dominance – and reserve currency status.

The Chinese government reportedly plans to allow the crude oil futures contract priced in yuan to be fully convertible into gold.

In addition to serving as a hedging tool for Chinese companies, the contract will allow for increased use of the yuan in trade settlement, Levinson said.

These contracts will thus enable the China’s trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars, according to Bloomberg.

Essentially, the new benchmark will allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan that is convertible to gold – thereby negating the hegemony of the petrodollar.

This point was elicited by Russian President Vladimir Putin 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 the respected journalist/geopolitical analyst Pepe Escobar explains: ‘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.

Chinese oil companies are likely to be strong anchor investors in Saudi Arabia’s initial public offering of its state oil company, Saudi Aramco, according to Levinson. It’s worth noting that estimates for the valuation of Armaco range in the multi-trillions of dollars.

Leading economist, Carl Weinberg, managing director at High Frequency Economics, goes even further, predicting a major paradigm shift. Weinberg told CNBC that China will likely “compel” Saudi Arabia to abandon the petrodollar, and instead, begin trading oil in yuan—a move he says is likely to precipitate the rest of the oil market following suit and abandoning the U.S. dollar as the global reserve currency.

Weinberg noted that China is poised to clearly dominate the global landscape in terms of oil demand since surpassing the U.S. as the “biggest oil importer on the planet,” adding that Saudi Arabia will “pay attention to this because even as much as one or two years from now, Chinese demand will dwarf U.S. demand.”

“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,” Weinberg said.

When Weinberg was asked what would take place if Saudi Arabia and the global oil market move oil trade out of the dollar and begin to use the yuan, he said it would create a dynamic that would result in “lesser demand for U.S. securities across the board.”

“Moving oil trade out of dollars into yuan will take right now between $600 billion and $800 billion worth of transactions out of the dollar,” Weinberg said. “[That] means a stronger demand for things in China, whether it’s securities or whether it’s goods and services. It is a growth plus for China and that’s why they want this to happen.”

Without question, the pace of global de-dollarization is accelerating, as countries are moving away from the hegemony of the petrodollar due to its use as a geopolitical weapon by the United States.

Commensurate with the rise of the U.S. use of the petrodollar as a weaponized financial instrument, numerous states that oppose the dollar holding the status of world reserve currency are actively working to minimize their dependence on dollars in bilateral transactions.

For example, China and Russia have agreed to exclude the dollar, and use the yuan and ruble for bilateral oil trading. Additionally, both states have worked to significantly increase their physical gold reserves in an effort to hedge against petrodollar hegemony.

Similar sentiments were expressed by Venezuelan President Maduro in a recent multi-hour address to a new legislative “superbody”:

“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, noting that Venezuela would look to using the yuan instead, among other currencies, instead of the U.S. dollar.

“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro also said.

Make no mistake that widespread adoption of China’s Petro-Yuan contract… as Levinson says “will be a huge story” in Q4 – that could usher in a new global reserve currency to replace the dollar – and challenge U.S. geopolitical hegemony.

Source Article from http://thefreethoughtproject.com/chinas-petro-yuan-petrodollar/

Venezuela’s Rebellion against the Petrodollar , by Manlio Dinucci

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The U.S.A. is applying increasing pressure on Venezuela, a country that, in accordance with the way the Pentagon has carved up the world, falls within the “jurisdiction” of the U.S. Southern Command (Southcom). SouthCom encompasses 31 countries and 16 territories that together form Latin America and the Caribbean. It has ground troops, naval and air forces and a marine corps, not to mention special forces and three specific task forces. The same strategy that the U.S.A. and Nato applied in a different context in Libya and Syria, could very well be adopted against Venezuela: the infiltration of special forces and mercenaries that slosh oil onto Venezuelan hearths where tensions are already inflamed, catalyzing armed conflicts. The government is then charged with massacring its own people which provides the cover for “humanitarian intervention” by a US-led coalition.

This scenario is all the more probable after Venezuelan Minister of Oil announced on 15 September 2017: “From this week, the average price of oil will be indicated in the Chinese yuan”. For the first time, the sales price of Venezuelan oil is no longer priced in the dollar.

This is Caracas’s response to the sanctions imposed by the Trump Administration on 25 August; sanctions far harsher than those imposed by the Obama Administration in 2014, for the Trump sanctions prevent Venezuela from cashing in the dollars received from selling oil to the United States – more than a million barrels per day. Until now, these dollars were used to import consumer goods such as foodstuffs and medicines.

The sanctions also prevent bonds issued by the PDVSA (the Venezuelan state oil company), from being purchased. Washington is seeking to achieve two objectives:

• to heighten in Venezuela a scarcity of basic necessities and thus provoke growing discontent among the people, which is exploited by internal opposition (bribed and fed by the U.S.A.) with the aim of demolishing Maduro’s government; and

• to send the Venezuelan state into default, that is, to bankrupt it, preventing it from paying its foreign debt instalments. In other words, to bankrupt the state with the biggest oil reserves in the world, reserves that are more than ten times the size of the US’s.

Caracas is seeking to dodge the stranglehold of the sanctions. It is no longer quoting the sales price of oil in the US dollar. From now on, this price will be quoted in the Chinese yuan. A year ago, the yuan had entered the IMF’s basket of currencies (joining the dollar, the euro, the yen and the sterling) and Peking is all set to launch future contracts for the sale and purchase of oil in yuan, convertible into gold. “If the new future were to gain a foothold, eroding even just partly the excessive power of the petrodollar, it would be a thundering blow for the American economy”, comments Il Sole 24 Ore.

What is being debated by Russia, China and other countries, is not only the excessive power of the petrodollar (the currency of reserve earned from the sale of oil), but the very hegemony of the dollar. Its value is determined not by the US’s real economic capacity but by the fact that the dollar constitutes almost two thirds of the global reserve currency and is the currency used to stabilize the price of oil, gold and goods generally. This permits the Federal Reserve, the Central Bank (which is a private bank), to print thousands of billions of dollars to fund the U.S.A’s colossal debt – around 23,000 billion dollars – through purchasing bonds and other instruments issued by the Treasury.

In this context, Venezuela’s decision to free the price of oil from the dollar is causing a seismic tremor that, from the South American epicentre, is making the entire imperial palace, founded on the dollar, tremor. If the example set by Venezuela were to provoke a contagion, if the dollar were no longer to be the main currency of trade and the international reserve currency, an immense quantity of dollars would flood the market, making the value of the US currency collapse.

This is the real motive pushing President Obama to declare “a national emergency against the unusual and extraordinary threat posed to national security and US foreign policy by the situation in Venezuela” in the Executive Order of 9 March 2015 [1].

This is the same motive for which President Trump announces that the “military option” against Venezuela is now on the table. The U.S. Southern Command is getting ready for this. Its emblem is the Imperial Eagle that dominates Central and South America, ready to sink its claws into whoever rebels against the Dollar’s empire.

Source Article from http://www.voltairenet.org/article197970.html

Venezuela’s Rebellion against the Petrodollar

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The U.S.A. is applying increasing pressure on Venezuela, a country that, in accordance with the way the Pentagon has carved up the world, falls within the “jurisdiction” of the U.S. Southern Command (Southcom). SouthCom encompasses 31 countries and 16 territories that together form Latin America and the Caribbean. It has ground troops, naval and air forces and a marine corps, not to mention special forces and three specific task forces. The same strategy that the U.S.A. and Nato applied in a different context in Libya and Syria, could very well be adopted against Venezuela: the infiltration of special forces and mercenaries that slosh oil onto Venezuelan hearths where tensions are already inflamed, catalyzing armed conflicts. The government is then charged with massacring its own people which provides the cover for “humanitarian intervention” by a US-led coalition.

This scenario is all the more probable after Venezuelan Minister of Oil announced on 15 September 2017: “From this week, the average price of oil will be indicated in the Chinese yuan”. For the first time, the sales price of Venezuelan oil is no longer priced in the dollar.

This is Caracas’s response to the sanctions imposed by the Trump Administration on 25 August; sanctions far harsher than those imposed by the Obama Administration in 2014, for the Trump sanctions prevent Venezuela from cashing in the dollars received from selling oil to the United States – more than a million barrels per day. Until now, these dollars were used to import consumer goods such as foodstuffs and medicines.

The sanctions also prevent bonds issued by the PDVSA (the Venezuelan state oil company), from being purchased. Washington is seeking to achieve two objectives:

• to heighten in Venezuela a scarcity of basic necessities and thus provoke growing discontent among the people, which is exploited by internal opposition (bribed and fed by the U.S.A.) with the aim of demolishing Maduro’s government; and

• to send the Venezuelan state into default, that is, to bankrupt it, preventing it from paying its foreign debt instalments. In other words, to bankrupt the state with the biggest oil reserves in the world, reserves that are more than ten times the size of the US’s.

Caracas is seeking to dodge the stranglehold of the sanctions. It is no longer quoting the sales price of oil in the US dollar. From now on, this price will be quoted in the Chinese yuan. A year ago, the yuan had entered the IMF’s basket of currencies (joining the dollar, the euro, the yen and the sterling) and Peking is all set to launch future contracts for the sale and purchase of oil in yuan, convertible into gold. “If the new future were to gain a foothold, eroding even just partly the excessive power of the petrodollar, it would be a thundering blow for the American economy”, comments Il Sole 24 Ore.

What is being debated by Russia, China and other countries, is not only the excessive power of the petrodollar (the currency of reserve earned from the sale of oil), but the very hegemony of the dollar. Its value is determined not by the US’s real economic capacity but by the fact that the dollar constitutes almost two thirds of the global reserve currency and is the currency used to stabilize the price of oil, gold and goods generally. This permits the Federal Reserve, the Central Bank (which is a private bank), to print thousands of billions of dollars to fund the U.S.A’s colossal debt – around 23,000 billion dollars – through purchasing bonds and other instruments issued by the Treasury.

In this context, Venezuela’s decision to free the price of oil from the dollar is causing a seismic tremor that, from the South American epicentre, is making the entire imperial palace, founded on the dollar, tremor. If the example set by Venezuela were to provoke a contagion, if the dollar were no longer to be the main currency of trade and the international reserve currency, an immense quantity of dollars would flood the market, making the value of the US currency collapse.

This is the real motive pushing President Obama to declare “a national emergency against the unusual and extraordinary threat posed to national security and US foreign policy by the situation in Venezuela” in the Executive Order of 9 March 2015 [1].

This is the same motive for which President Trump announces that the “military option” against Venezuela is now on the table. The U.S. Southern Command is getting ready for this. Its emblem is the Imperial Eagle that dominates Central and South America, ready to sink its claws into whoever rebels against the Dollar’s empire.

Source Article from http://www.voltairenet.org/article197970.html

The Petrodollar Doomsday Clock Just Ticked Closer To Midnight

Don’t be Duped!

[I do not believe the East will go along with the IMF running the show using the SDR.  I want to point out;… the IMF was originally a U.S. led creation whereby the U.S. had and has control via it’s veto power.  How exactly does changing from one “paper” currency to another change anything? Only that the SDR becomes an “international reference point” to be settled between Central Banks.  The dollar currently is more than 45% of what the SDR consists of, and is nothing more than another USDX index in my opinion.

Moving to the SDR will and can change the “power” of those pulling the strings; to the extent of the number of gold related SDR’S each country accumulates at the IMF.  The East fully knows the score relative to achieving a balance of power based on gold. ~ Bill Holter]

  1. More Countries Separate Themselves From U.S. Deep State IMF’s SDR, aka; PetroDollar
  2. China Unshackles From Bitcoin: Beijing To Shut Down All Crypto Exchanges By The End Of September

THE DEEP STATE MODUS OPERANDI:

  1. The Banks Must Face Justice Under Antitrust
  2. Over 400 Million Privately Owned Firearms In The United States: U.S. Active Military Population 1.34 Million

After years of preparation, in 2001 Greece was accepted into the EU Monetary Union. The main benefit was the ability to borrow at the same rate as Germany.

And borrow they did, so much so that debt service far outpaced Greece’s ability to pay all this new debt. In May 2011, the Troika (European Commission (EC), ECB and IMF) granted Greece it’s first of four “bail-outs”.

The question is who got bailed out? Who really benefited from all this new debt? The answers to these questions could be our crystal ball, because we now have over seven years tohttps://youtu.be/Sm1IDwWPqG4 see what it’s like when Technocratic Central Bankers are in full control.

  1. Banker’s European Union Transfers Fiat Worthless Paper Debt To The Many
  2. The Slides And Supportive Links Regarding The EU Monetary Union And The Road To A Greek Debt Reset

Through Peace Educate ~ Through Peace Enforce Justice ~ Through Peace Withdraw Your Funds From The Corrupt Banks ~

~ Through Peace Back Your Wealth In Gold & Silver ~

Iceland Showed The World The Power Of The U.S. 1776 Revolution.

Iceland’s Reclaimed Their Federal Government ~ Jailed The International Bankers And Forgave

EVERY ICELANDER’S Debt That Was Concocted By The NWO.

Three years after Iceland’s banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers, analysts say.

“The lesson that could be learned from Iceland’s way of handling its crisis is that it is important to shield taxpayers and government finances from bearing the cost of a financial crisis to the extent possible,” Islandsbanki analyst Jon Bjarki Bentsson told AFP.

  1. Every Icelander To Get Paid In Bank Sale: 26 Bankers Behind Bars!
  2. Iceland Sends Another Rothschild Banker To Prison For Market Manipulation.
  3. Peter Schiff Slams The Stock Market, Federal Reserve, And Bitcoin: That Is ~ Bookie’s Digits On A Spreadsheet 8/2017

“Even if our way of dealing with the crisis was not by choice but due to the inability of the government to support the banks back in 2008 due to their size relative to the economy, this has turned out relatively well for us,” Bentsson said.

Iceland’s implosion was organized and orchestrated along with The United State’s and other nation state collapses.

This on a smaller scale is known as orchestrated “inside trading” which allowed convicted felon George Soros to loot $Billions of dollars. One month earlier than October 2008 this happened.

Iceland’s special prosecutor issued an international arrest warrant for Mr Einarsson yesterday, with a description of him as 1.8m tall, 114kg in weight, bald and with blue eyes.

According to Icelandic media reports, he has told the prosecutor’s team that he is willing to return to his home country to help with their enquiries on the condition that he is not arrested on arrival.

His former co-chief executive, Hreidar Mar Sigurdsson, was arrested last week on suspicion of falsifying documents and market manipulation. He is still in police custody.

Kaupthing’s collapse in October 2008 cost the British Treasury £2.5bn and hundreds of UK savers with its Isle of Man branch are still waiting to be fully compensated. Both he and Mr Einarsson have previously denied any wrongdoing over Kaupthing’s collapse.

My political opinions lean more and more to Anarchy (philosophically understood, meaning abolition of control not whiskered men with bombs) … the most improper job of any man, even saints (who at any rate were at least unwilling to take it on), is bossing other men. Not one in a million is fit for it, and least of all those who seek the opportunity.
– J. R. R. Tolkien

The bank’s actions are under investigation by the UK Serious Fraud Office and a special inquiry team in Iceland over claims of share ramping and big loans to related parties.

Iceland’s special prosecutor is looking into more than 20 cases of potential criminal activity connected to Kaupthing and the country’s other failed banks.

A special report by Iceland’s parliament showed Kaupthing secretly owned almost half of its own shares.

Two-thirds of Kaupthing’s clients were based in London, including high-profile investors such as Robert Tchenguiz, Simon Halabi and the Candy Brothers, who all lost substantial sums in the crash.

After Kaupthing’s loan book was leaked on to the internet last August, it showed key shareholders and owners were the bank’s main borrowers. Mr Tchenguiz, who was a director of Kaupthing’s largest shareholder, had the biggest debt of €1.74bn.

Following the disclosure, Mr Sigurdsson defended the bank’s practices but made a public apology. “Mistakes were made,” he said. “I’m obliged to offer my apologies to the bank’s shareholders, lenders and employees. I should have prepared the bank better for the storm that hit it.”

The Telegraph

Emmanuel Macron with his boss, David de Rothschild of the Banque der Rothschild – who is sought by the police for embezzlement.

Since the 1900′s the vast majority of the American population has dreamed about saying “NO” to the Unconstitutional, corrupt, Rothschild

Rockefeller banking criminals, but no one has dared to do so. Why? If just half of our Nation, and the “1%”, who pay the majority of the taxes, just said NO MORE! Our Gov’t would literally change over night.

Why is it so hard, for some people to understand, that by simply NOT giving your money, to large Corporations, who then send jobs, Intellectual­­ Property, etc. offshore and promote anti-Constitutional rights… You will accomplish more, than if you used violence.

In other words…

“RESEARCH WHERE YOU ARE SENDING EVERY SINGLE PENNY!!! Is that so hard?”

The truth of the matter is… No one, except the Icelanders, have to been the only culture on the planet to carry out this successfully. Not only have they been successful, at overthrowing the corrupt Gov’t, they’ve drafted a Constitution, that will stop this from happening ever again.

That’s not the best part… The best part, is that they have arrested ALL Rothschild/Rockefeller banking puppets, responsible for Iceland’s economic Chaos and meltdown.

Last week 9 people were arrested in London and Reykjavik for their possible responsibility for Iceland’s financial collapse in 2008, a deep crisis which developed into an unprecedented public reaction that is changing the country’s direction.

It has been a revolution without weapons in Iceland, the country that hosts the world’s oldest democracy (since 930), and whose citizens have managed to effect change by going on demonstrations and banging pots and pans. Why have the rest of the Western countries not even heard about it?

Pressure from Icelandic citizens’ has managed not only to bring down a government, but also begin the drafting of a new constitution (in process) and is seeking to put in jail those bankers responsible for the financial crisis in the country.

As the saying goes, if you ask for things politely it is much easier to get them. This quiet revolutionary process has its origins in 2008 when the Icelandic government decided to nationalise the three largest banks, Landsbanki, Kaupthing and Glitnir, whose clients were mainly British, and North and South American.

After the State took over, the official currency (krona) plummeted and the stock market suspended its activity after a 76% collapse. Iceland was becoming bankrupt and to save the situation, the International Monetary Fund (IMF) injected U.S. $ 2,100 million and the Nordic countries helped with another 2,500 million.

  1. America’s $123 Trillion In Unfunded Liabilities: Forgive The Debt Now!
  2. Iceland Jails Bankers, Erases Citizens’ Debt, Recovers Strongly: No More Banks!
  3. End Of Rothschild’s Deep State Economic Caliphate: The Bluff Will Finally Be Called…
  4. Putin Declares “Total Independence” 8/2017 From Rothschild NWO Banking Cabal Which Began In 2006

In April a coalition government was elected, formed by the Social Democratic Alliance and the Left Green Movement, headed by a new Prime Minister, Jóhanna Sigurðardóttir.

Throughout 2009 the Icelandic economy continued to be in a precarious situation (at the end of the year the GDP had dropped by 7%) but, despite this, the Parliament proposed to repay the debt to Britain and the Netherlands with a payment of 3,500 million Euros, a sum to be paid every month by Icelandic families for 15 years at 5.5% interest.

The move sparked anger again in the Icelanders, who returned to the streets demanding that, at least, that decision was put to a referendum. Another big small victory for the street protests: in March 2010 that vote was held and an overwhelming 93% of the population refused to repay the debt, at least with those conditions.

This forced the creditors to rethink the deal and improve it, offering 3% interest and payment over 37 years. Not even that was enough. The current president, on seeing that Parliament approved the agreement by a narrow margin, decided last month not to approve it and to call on the Icelandic people to vote in a referendum so that they would have the last word.

Remember on September 12, 2009 +2,000,000 Americans Marched Upon Washington & MSNBC said it was only 50,000 at most? Why Was That?

The bankers are fleeing in fear Returning to the tense situation in 2010, while the Icelanders were refusing to pay a debt incurred by financial sharks without consultation, the coalition government had launched an investigation to determine legal responsibilities for the fatal economic crisis and had already arrested several bankers and top executives closely linked to high risk operations.

Interpol, meanwhile, had issued an international arrest warrant against Sigurdur Einarsson, former president of one of the banks. This situation led scared bankers and executives to leave the country en masse.

In this context of crisis, an assembly was elected to draft a new constitution that would reflect the lessons learned and replace the current one, inspired by the Danish constitution. To do this, instead of calling experts and politicians, Iceland decided to appeal directly to the people, after all they have sovereign power over the law.

Memories Of History: When The People Get Fed Up!

More than 500 Icelanders presented themselves as candidates to ­participate in this exercise in direct democracy and write a new constitution. 25 of them, without party affiliations, including lawyers, students, journalists, farmers and trade union representatives were elected.

Among other developments, this constitution will call for the protection, like no other, of freedom of information and expression in the so-called Icelandic Modern Media Initiative, in a bill that aims to make the country a safe haven for investigative journalism and freedom of information, where sources, journalists and Internet providers that host news reporting are protected.

The people, for once, will decide the future of the country while bankers and politicians witness the transformation of a nation from the sidelines.

 El Reportero

Nazi Muffin Jacob Rothschild ~ The Poster Boy For The Banking Cabal's Nazi World Order aka

Nazi Muffin Jacob Rothschild ~ The Poster Boy For The Banking Cabal’s Nazi World Order aka; NWO

While banks and local and foreign authorities were desperately seeking economic solutions, the Icelandic people took to the streets and their persistent daily demonstrations outside parliament in Reykjavik prompted the resignation of the conservative Prime Minister Geir H. Haarde and his entire government. Citizens demanded, in addition, to convene early elections, and they succeeded.

Exorcism Of The New World Order ~ The Laudato Si.

Profits are privatized while LOSSES are socialized, communized, marxized, fascized, aka; mafiatized

Related Articles:

  1. Deep State Bankers Attempting To Escape Out The Backdoor
  2. European Union’s Massive Deception Against The Electorate!
  3. The 18 Keynesian Banksters Who Looted The U.S. Public Treasury
  4. Deep State Lobbying To Force Local Credit Unions Out Of Existence
  5. BLOWBACK -> Greece, European Union, Mussolini, Rothschild, & Pangalos!
  6. Nigel Farage Message To The Europeans; “Get Your Money Out While You Can”
  7. Greek Prime Minister Reverses Citizen’s Rights To Vote: Banker’s European Union Scam
  8. Iceland Dismantles The Corrupt, Arrests 10 Rothschild Bankers, Then Issues Interpol Arrest Warrant For Rothschild Banker Sigurdur Einarsson!

Source Article from https://politicalvelcraft.org/2017/09/15/the-petrodollar-doomsday-clock-just-ticked-closer-to-midnight/

Venezuela Just Stopped Accepting US Dollars for Oil As Countries Join Forces to Kill US Petrodollar

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Caracas, Venezuela – In what is the latest move to undermine the imperial world order maintained by the United States, which is underpinned through use of the petrodollar as the world reserve currency, the Wall Street Journal reports that Venezuelan President Maduro has officially followed through on his threat to stop accepting US Dollars as payment for crude oil exports in the wake of recent US sanctions.

Last Thursday, President Nicolas Maduro said that if the US went ahead with the sanction, Venezuela would “free” itself from the US Dollar.

According to Reuters:

“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.”

Unsurprisingly, Maduro noted that his country would look to the BRICS countries, and begin using the Chinese yuan and Russian ruble instead — along with other currencies — to bypass the US Dollar stranglehold.

“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro said.

Rather than work diplomatically with other nations, the United States often uses sanctions to force compliance. Due to the dollar being accepted as the world’s reserve currency, almost all financial transactions are denominated in dollars. This phenomenon gives the US a powerful weapon to wield against states that refuse to follow US directives, and underpins the unipolar model of global domination exercised by the US.

The Wall Street Journal reports that as a means of circumventing U.S. sanctions — Washington’s preferred weapon of choice to force compliance — Venezuela has told oil traders that it will no longer send or receive payments in dollars, according to people familiar with the new policy.

Oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.

The state oil company Petróleos de Venezuela SA, known as PdVSA, has told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner.

The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, “To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar.”

With Europe often acting as nothing more than a vassal to the United States, it’s not unthinkable that the American lapdog EU could impose sanctions on Venezuela, which would likely pave the way for the strategic Russia – China partnership to gain an even stronger foothold in the global economic battle, as it would likely precipitate the Yuan, Ruble, and gold being used to buy and sell Venezuelan oil.

Interestingly, the decision by Venezuela – the nation with the world’s largest proven oil reserves – comes just days after China and Russia unveiled an Oil/Yuan/Gold plan at the recent annual BRICS conference. This plan would strongly undermine the hegemonic control the US enjoys over the global financial system.

During the BRICS conference, Putin unveiled a geopolitical/geoeconomic bombshell as he forwarded the notion of a “fair multipolar world.” He emphasized a stance “against protectionism and new barriers in global trade” — a reference to the manner in which US operates its empire to maintain primacy.

“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.”

“To overcome the excessive domination of the limited number of reserve currencies” is simply a nice way of saying that the BRICS will create a system to bypass the US dollar, as well as the petrodollar, in an effort to undermine the unipolar paradigm embraced by the United States.

As we previously reported, China will soon launch a crude oil futures contract priced in yuan that is fully convertible into gold.

What this means is that countries who refuse to bend to the imperial will of the United States, i.e. Russia, Iran, etc., will now be able to bypass US sanctions by making energy trades in their own currencies, or in Chinese yuan – with the knowledge that they can convert the yuan into gold as added incentive/insurance/security.

The yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges. Typically, crude oil is priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT.

This new paradigm of oil, yuan, and gold is, without question, an international game changer. The key takeaway here is that the US dollar can now be bypassed without so much as a second thought.

Russia and China – via the Russian Central Bank and the People’s Bank of China – have been steadily working on ruble-yuan swaps as a means of hedging against US hegemony.

There is a strategic movement to take these actions beyond the BRICS, first allowing aspiring “BRICS Plus” members, then entire Global South to divest themselves from dependence on the US dollar.

Essentially, Russia and China are working together to usher in a new paradigm of Eurasian integration, something that goes directly against US strategic doctrine – which dictates that Russia and China, the United States’ two main geopolitical rivals, should never be allowed to dominate Eurasia.

“In 2014 Russia and China signed two mammoth 30-year contracts for Russian gas to China. The contracts specified that the exchange would be done in Renminbi [yuan] and Russian rubles, not in dollars. That was the beginning of an accelerating process of de-dollarization that is underway today,” according to strategic risk consultant F. William Engdahl.

Russia and China are now creating a new paradigm for the world economy and paving the way for a global de-dollarization, and Venezuela is just the beginning.

“A Russian-Chinese alternative to the dollar in the form of a gold-backed ruble and gold-backed Renminbi or yuan, could start a snowball exit from the US dollar, and with it, a severe decline in America’s ability to use the reserve dollar role to finance her wars with other peoples’ money,” Engdahl concludes.

Make no mistake that the BRICS are not only working to integrate Eurasia, but to geo-economically integrate the entire Global South under a new multipolar framework that treats states as equals, regardless of their power stature globally.

The Neolibcons in Washington – bent on eventual regime change in Russia and China – are in for an extremely rude awakening. Although the BRICS have their own structural economic problems, they have created a long-term plan that will change the face of geopolitics/geo-economics and degrade the imperialist will of those that wish to dictate and order the world as they see fit.

The DC War Party’s petrodollar imperialism, which funds the US war machine and allows for a constant war footing, is quickly running out of allies to maintain its global hegemony.

Source Article from http://thefreethoughtproject.com/venezuela-us-dollars-end-petrodollar/

More Countries Separate Themselves From U.S. Deep State IMF’s SDR, aka; PetroDollar

The war on Cash:

The money in your savings account isn’t piled up inside your bank’s vault, which isn’t true. Your savings don’t really exist. It’s all digits in an electronic account ledger. People transact with these digital currency units, whenever a bank transfer is made, or a credit card is used.

  1. The Dollar Is Coming Home To Die: Dumped By The World

  1. Read James Rickards Letter to President Trump About the SDR & The Death of the Dollar

The concept actually dates back to the Middle Ages when Italian bankers realized that they could conduct their transactions without physical money. Rather than risk transporting gold coins across the countryside, medieval bankers merely annotated their ledgers with debit and credit entries. They didn’t have computers, but it was the same concept – they kept track of transactions and balances on account ledgers, instead of with physical money.

This means that the ‘money’ in your savings account isn’t really yours. You don’t actually have any savings. What you really have is a claim on your bank’s savings. Your account is just an entry in the liability column of their digital ledger. When you make a deposit, you’re trading your money for a banker’s promise to repay you. And there are countless regulations giving them the authority to break that promise. This is not a free system. And any rational person should consider keeping at least an emergency fund outside of this system.

That’s exactly the reason behind the war on cash by the Central Planners. To show how far they have come in this direction over the last few years:

  • Italy made cash transactions over €1,000 illegal;
  • Switzerland proposed banning cash payments in excess of 100,000 francs;
  • Russia banned cash transactions over $10,000;
  • Spain banned cash transactions over €2,500;
  • Mexico made cash payments of more than 200,000 pesos illegal;
  • Uruguay banned cash transactions over $5,000; and
  • France made cash transactions over €1,000 illegal, down from the previous limit of €3,000.

They want to eliminate hand-to-hand currency so that governments can document, control, and tax everything and everyone.

Deep State Nixon announces the end of the U.S. gold standard. Rothschild now wants to control the world currency with a renamed Dollar as SDR. In effect absconding the gold backed U.S. currency into a fully Deep State Controlled Currency called SDR or “USD Part Deux”. CLICK HERE TO ENLARGE

SDR the global currency:

In the late 1960s, the IMF took this idea to the next level when they created their own digital currency for the exclusive use of governments and central banks. They’re called Special Drawing Rights (SDR). And even though the IMF’s balance sheet totals nearly 300 billion SDR – around $211 billion, not a single SDR exists in physical form.

The IMF is a club of bankers from all over the world who regulate the entire international monetary system.

So, 100% of the SDR money supply is digital. Just like Bitcoin, it exists in computer databases, making it the digital equivalent of a 500-year old accounting system.

All Central Banks decide how much of their currencies to create out of thin air, but the SDR in particular is an even greater scam; the entire reason it was created was because the IMF didn’t have enough real savings.

So they ‘solved’ the problem by creating a new digital currency that allowed them to easily raise money out of thin air.

  1. The Foreign Federal Reserve Has Only Two Paths Forward
  2. The Zionist Elite Have Lost The Consent Of The Governed: Meet The Lecters!

But another scam is going on; the SDR is “supported” by the US Dollar, the Euro, the Pound, and the Yen, but all these currencies participate in the race to the bottom, and will finish with ZERO, which makes the SDR an outright fiasco! Economists criticize the World Bank and IMF

Xi Jinping & Vladimir Putin

[China’s 10% involvement is to expose the fact that the U.S. IMF Deep State has no gold in Fort Knox]

  1. China To Contribute 10% SDR Stipend To Washington D.C. Based IMF On October 1st. 2016
  2. China’s New Gold-Backed Oil Benchmark to Deal Blow to U.S. Dollar
  3. China’s AIIB To Radically Change The World: China Challenges Deep State’s IMF
  4. U.S. Dollar Just Died In China & Russia: Russia’s Sberbank Begins Physical Gold Trading On Shanghai Exchange

To be correct, today the world uses seven different reserve currencies that are held by central banks as a reserve. Attached chart shows all of the currencies that qualify for “reserve” status, and the percentages in which governments around the world hold them.

The U.S. dollar is, by far, the dominant reserve currency.

When most central banks hold money in a currency other than their own, they hold the biggest portion of that foreign money in U.S. dollars, a staggering 62%. On average they hold about 23%, in Euros, and about 4% each in Japanese Yen and British pounds.

The Swiss Franc, in fact too, is a reserve currency, but countries hold a paltry $17 Billion in Francs, not even enough to make up 1% of the total.

President Putin Of The Russian Federation

  1. Putin Declares “Total Independence” From Rothschild NWO Banking Cabal Which Began In 2006

What are the identifiable factions in the negotiations towards a world government?

– The French, Germans and other European allies are pushing to make the IMF the most powerful instrument of their New World Order by inviting the Chinese to join them at the SDR table and thus replace the US dollar with something they control [a re-masked USD].

The problem with this is that the IMF has a horrific track record of raping, looting and impoverishing countries in order to benefit large corporations. Nobody wants an IMF world government except the RKM [Rothschild Khazarian Mafia] That owns and controls the IMF.

  1. Iraq Being Suicided By Rothschild’s IMF & J.P. Morgan
  2. Bolivia Removes Deep State IMF & World Bank From Country
  3. The IMF & Rothschild’s Federal Reserve In The USA About To Merge
  4. Hungary Kills The Rothschild IMF Banks: Ordered To Vacate Country
  5. Hungarian Prime Minister Viktor Orbán Removed Rothschild & IMF In 2011-2013
  6. IMF Sends Message “Raise The Debt Ceiling” ~ Charlie Manson Sends Patricia Krenwinkel
  7. Rothschild’s IMF (international monopoly fun money) Chief ~ Strauss-Kahn Charged With Attempted Rape!
  8. Finland, Poland, Germany, & Venezuela Repatriate Their Gold: Bracing For End Of Deep State IMF & World Bank
  9. “Panama Papers” Cartel’s Dream Scheme: United State’s IMF No Longer Relevant ~ United State’s CIA No Longer Relevant.

So to save the existing monetary system, is just replacing the US dollar as the reserve currency by the IMF SDR currency, and from thereon the dangers increase.

To ‘solve’ the massive world debt it would be very likely and possible to inflate the world debt away via a massive issuance of SDRs after China has joined the club.

Likewise what happened with the change from national currencies into the European currency the Euro, this time again the issuance of SDRs as world currency will be a massive dilution of former currencies, which only serve the powers that be, the Khazarians that won’t allow the implementation of a new gold standard, which is reducing away their power.

Moreover citizens are not allowed to own SDRs. Consequently their purchasing power shrinks while they don’t know whom to blame. Elected officials don’t run the IMF, and the majority of the population doesn’t even know it plays a role in creation of inflation. They even can pretend that they have to save the world, as recently happened with the bailout for Greece.

Bitcoin ~ same fiat digital bookie scheme as SDRs

Alternative [alleged] none controlled currencies:

  1. Money that is not controlled by central banksters or the IMF is ‘perhaps’ Bitcoin.
  2. Which certainly is one option.
  3. Presumed no one controls it, which is a novel concept in an era when even better option is the gold backed bitcoin.
  4. Or equal, or better gold and silver both have incredible merit since others cannot make them up out of thin air.
  5. Or for the time being even holding physical cash is a much better alternative than keeping everything inside a highly centralised banking system
  6. Keeping The Faith: Bitcoin’s Top Three LIES
  7. Bitcoin: Most Americans Cannot Even Afford 1
  8. Peter Schiff Slams The Stock Market, Federal Reserve, And Bitcoin: That Is ~ Bookie’s Digits On A Spreadsheet
  9. Bitcoin With Click Of A Mouse You Could Be Without: Contrary To The Hype, Bitcoin Is Centrally Controlled
  10. Bitcoin aka ‘Digital Bit On A Spread Sheet’: Crashes On Massive Volume As China Plans To Shut Local Exchanges
  11. Comparing Gold’s Price To Bitcoin Is Patently Ridiculous: Spreadsheet Bit-digit Would Need To Be Backed By $450,000.00 Each

The central banksters, in particular the FED that issues the reserve currency, have the motive to keep the gold price from rising, as they see gold as their competitor.

That the gold market is manipulated is not a conspiracy theory anymore, it is well documented that markets are in fact manipulated and done so in the directions central banksters wish.  This is now FACT by admission of various central bankers, and various admissions of guilt from financial firms who were doing the dirty work!

cftc

Commodity Futures Trading Commission Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 202-418-5000

  1. U.S. Counterfeit Monetary System Of The CFTC & Comex
  2. Deep State Manipulation Of The Silver & Gold Market Is Collapsing
  • The paper to gold ratio is close to 300 and is nothing more than a reflection of how desperate the banks are becoming to keep a lid on the price gold/silver.
  • The paper to underlying deliverable physical commodity ratio is many multiples beyond the ratio the CFTC (Commodity Futures Trading Commission) and CME (Chicago Mercantile Exchange) allow in any other commodity market.
  • It completely destroys the purpose of futures markets.
  • Gold futures were introduced in 1974; one year after the U.S. devalued the dollar vs. the yen and Paul Volker the Fed chairman at the time admitted 20 years later that the Fed made a mistake not preventing the price of gold from moving higher when the dollar was devalued.
  • In 1973 the price of gold couldn’t be manipulated, as gold futures didn’t exist.

The TRUTH about today’s heralded economic improvement. Here are four economic indicators that aren’t good for economic growth, and ending the recession.

1) Global economy is slowing:

The Baltic Dry Index (BDI) measures the price of shipping materials such as iron, coal, and grains. It accounts for 23 different shipping routes and four ship sizes. It’s one of the most closely watched indicators for the global economy. Last week, the BDI closed for the first time in 20-years below 500, at 498. It was the first time the index has closed below 500 in its twenty-year history. Since May 2008, when it reached its all-time high, it’s been falling 96% from that point ever since. It has fallen 59% since August alone.

Mærsk is the world’s largest shipping company. It moves about 15% of all manufactured goods shipped worldwide. If Mærsk is struggling, it’s because global trade is slowing, it reported a 15% drop in sales during the third quarter. That was the fourth quarter in a row that sales dropped from the previous year.

Its CEO, Nils Smedegaard Andersen, said he’s cutting jobs because the global economy is slowing faster than people think.

Iceland Islandsibanki ~ Bank Was Sold and proceeds given to Islanders.

  1. Every Icelander To Get Paid In Bank Sale: 26 Bankers Behind Bars!

“We believe that global growth is slowing down…Trade is currently significantly weaker than it normally would be under the growth forecasts we see.”

Last month, the International Monetary Fund cut its global GDP forecast from 3.3% to 3.1%. The organization also lowered its growth forecast for 2016 from 3.8% to 3.6%. According to Andersen, these new projections are still too optimistic.

The EU economy tanked, exports, the lifeblood of the EU economy, cratered. Manufacturing collapsed. Unemployment spiked. The tax revenues of EU nations that needed to make good on their debts were gravely threatened. – Worse: Germany, the economic power of the EU, was bombarded with a hailstorm of terrible news. – Deutsche Bank – Germany’s largest bank – reported multi-billion-dollar losses, and dismissed thousands of workers, and closed nearly a dozen offices around the world. – Volkswagen, Germany’s largest employer was caught up in on its own a fraudulent emission scandal, likely to cause tens of billions of dollars in losses. Unsurprisingly the powerful German economy, the ONLY economy capable of saving the EU, faltered and then slipped. Amazingly, ALL of this happened in the space of just a few weeks, starting as previously analyzed in the first week of October.

As over 90% of auto sales is financed, now the biggest subprime auto lenders are reporting that the credit quality of their “portfolios” is rapidly declining. They are on the rope for about one trillion euros. At the same time, lending to super-low-quality or “deep subprime” borrowers continues to grow. In other words, just like was seen at the beginning of the housing crisis in 2007, lenders continue to give money to “customers” with worse and worse credit rating, even while more and more of their existing borrowers have already stopped paying.

Playful Girls in Blue Lagoon.
Svartsengi Geothermal Plant,
Near Grindavik,
Iceland

  1. Everything Is Awesome Right Before The Entire Economy Collapses: No Problem For Iceland As They Jailed The Bankers & Nullified The Debt.

2) The coming derivative and bond bust will be the biggest crash in history:

Standard and Poor warned that Asia’s largest commodity trader Noble will be downgraded to junk status. Noble can be better thought of as Asia’s Glencore or Trafigura commodity derivatives on course of implosion. This looming downgrade of Noble Group is just the start of that process. Rumors are floating around that Deutsche Bank is linked to the derivatives at these companies, so it’s worthwhile watching these too. – With copper inching down to $2.00/lbs., last month Moody’s said that a fall below $2.20/lbs. copper was their threshold to downgrade Glencore’s credit rating!

Maloney blames a lot of today’s volatility on the Federal Reserve. He says:

“We’re going into the Bernanke bust. The 2008 global financial crisis was of Alan Greenspan’s making. Ben Bernanke just reacted to it. This time, it will be stocks, real estate and bonds. So, this is going to be the biggest crash in history. This bond market bubble is something that has been constantly inflated for the past 35 years. When it pops, it’s going to be devastating. A bond bubble bursting is deflationary.”

Where does that leave gold and silver? Maloney says,

“In the last great deflation, which was well studied, the Great Depression, gold rose 70%… If you owned gold, you ended up with two and a half times more purchasing power… One of the few assets that actually did well in the last great deflation was gold.” Watch video here.

  1. To Hell With The Rothschild Financial Collapse: Nullify The Debt Like Iceland And Bring Them To Justice!

3) Interest rates a fraud:

When history looks back on this current period, than is seen that one of the biggest official frauds is the Fed’s empty threat of raising interest rates, and the world will understand how and why it was used to help keep a lid on precious metals.

Interest rates, should be set by actual demand for capital. This demand ought to create interest rates that encourage thrift, economy, and savings. These interest rates would act as a brake on reckless speculation, forcing entrepreneurs and large businesses to consider what new projects are worthwhile.

When the suffering of careful saving does not create capital, and when entrepreneurs pay essentially no cost to gamble, mal-investments are created that distorts the markets, and only can be resolved through a crack up boom.

Sound policies might spur economic activity, but lower interest rates don’t necessarily create bona fide economic growth or actual wealth. By messing around with the most important price in all of capitalism – the price of capital itself, Central Banksters deliberately short-circuited the flow of information between consumers and producers and between borrowers and savers. Changing the price system does changing the behaviour, because it is changing the information about incentives that people receive. And that rarely works out in the long run. And remember, central banks only tell what people want to hear.

“Increasing the money supply is inflation. A hyperbolic increase in the money supply is BY DEFINITION “hyperinflation”. The Federal Reserve has already hyper inflated the US Dollar; It’s a past tense. Nothing can prevent it, it’s already been done.” – says Jeff Nielson.

Don’t Believe Banksters’ Lies – Own Physical Gold And Silver. People have used gold as money for thousands of years. It has protected wealth through every kind of financial crisis imaginable. It can do the same thing again when the next crisis hits. This is why every savor should own physical gold. It’s the first step to safeguard your wealth.

4) The Fed Has Already HYPER INFLATED The Dollar

Jeff Nielson discusses absurd jobs report and the hard-core reality about the US debt ceiling, the Dollar and hyperinflation:

The Final Wakeup Call

The publication belongs to the Economist Group. It is 50% owned by the English branch of the Rothschild family and by the Agnelli family through its holding company Exor.

  1. 12 Critical Events To Happen Over The 40 Day Period Of August 21st To September 30th

Related News:

  1. The 1% Deep State’s Modus: Transferring Fiat International Bank Debt To The 99%
  2. End Of Rothschild’s Deep State Economic Caliphate: The Bluff Will Finally Be Called…
  3. Chart Is Telling Us That The $USD Is Going To Be Collapsing In The Coming Months.
  4. Social Engineering From The Constitution To Pathological Psychosis: “The Protocols Of Banker’s Zion”

Source Article from https://politicalvelcraft.org/2017/09/12/more-countries-separate-themselves-from-u-s-deep-state-imfs-sdr-aka-petrodollar/

Anti-Russia Sanctions Will Destroy US Petrodollar & the Economy—Get Ready for $10 Gas

petrodollarpetrodollar

Washington, D.C. – The United States is on the precipice of pushing the Sino-Russo alliance closer than ever with the Senate’s almost unanimous approval of the Countering America’s Adversaries Through Sanctions Act. If President Trump signs the dangerous bill, it will essentially guarantee the fall of the U.S. petrodollar as the global reserve currency.

Hailed by the usual warmongers in the Senate, including resident cold warrior John McCain, the new legislation calls for a ratcheting up of tensions with Moscow under the guise of alleged election interference.

Although there has never been any evidence provided to the public in regards to election meddling, the U.S. lamestream propagandist media, in concert with the deep state, have run a consistent campaign meant to demonize and connect Trump/Russia.

The reality is that Trump ran on a platform of détente with the Russian, converse to Hillary Clinton’s “get tough with Russia” rhetoric during the 2016 presidential campaign, thus trying to create back channels (a common move in diplomacy), to negotiate with Russia outside of the purview of the always listening U.S. spying apparatus.

The new sanctions are meant to directly target the main strength of the Russian economy, the energy sector, in an effort to compel U.S. client states in Europe to abandon mutually beneficial long-term energy deals with Russia.

This dynamic will unquestionably bring Russia and Beijing closer together, as the Russians will hedge against the loss of energy deals with American vassals in Europe by solidifying long-term energy, economic and security cooperation with the Chinese.

Essentially, if Trump signs the bill, the writing is on the wall: Russia and China must form a strategic alliance to withstand the methodical movements of the U.S. empire meant to destabilize their respective governments – with a strategic goal of preventing Eurasian integration.

As the global winds of change blow, look for Germany and Turkey to play a key role in deciding whether Eurasian integration is stifled by the United States. As Max Keiser so presciently notes, “The so-called Washington consensus is disintegrating.”

“The post-WWII order of the US dollar hegemony run out of Washington DC, the so-called Washington consensus – is disintegrating, it is falling apart. The US doesn’t seem to want to take on reality – they want to live in the past, and they want to believe they are the policeman of the world, and they are going to impose sanctions,” Kaiser said.

“Germany is not going to go along with American sanctions quite obviously. They are just pushing Germany into the arms of Russia. Then you’ve got an enormous axis of power to Germany, Russia, and China, and they are going to get out of the US dollar. So then gasoline in America suddenly goes to $10, 11, 12 a gallon. How is that going to help the American economy if the US dollar loses its position as a reserve currency?” Kaiser continued.

Another important factor to consider when analyzing these latest moves by the United States is that China has no obligation to honor the U.S. sanctions, and in fact, is more likely to increase cooperation with the Russians as a result – especially in terms of the energy sector.

According to a report by the Global Times:

“The bill passed by the US House of Representatives, which targets Russian energy companies, banks, and individuals, is likely to reduce Russia’s share in the global energy market, especially in the US and EU. Beijing has no obligation to support US sanctions on Russia. Actually, China is likely to continue to tap the potential of cooperation with Russia in the area of energy…

“The energy sector is a strategic pillar of the Russian economy, which may take a new blow from the US sanctions. However, an economic breakdown in close proximity is not in line with the interests of China. If there is economic chaos in Russia, China may need to consider a financial bailout for Russia to help the country address its problems caused by the US sanctions. Economic chaos caused by the US sanctions is only a “worst-case scenario” with a very low probability. The political and economic realities of a multi-polar world have reduced US power over international affairs. The most likely outcome is that Russia will remain a superpower whose overall influence may wane but is never genuinely challenged.”

And perhaps most telling of all is the fact that attempting to cut Russia’s energy sector off from the allied west will likely only “expand the currency swap between the ruble and the yuan.”

The recent formation of a BRICS gold marketplace, which could be used to bypass the U.S. Petrodollar in bilateral trade, continues to take shape as Russia’s largest bank, state-owned Sberbank, announced in mid-July that its Swiss subsidiary had begun trading in gold on the Shanghai Gold Exchange.

Russian officials have repeatedly signaled that they plan to conduct transactions with China using gold as a means of marginalizing the power of the dollar in bilateral trade between the geopolitically powerful nations. This latest movement is quite simply the manifestation of a larger geopolitical game afoot between great powers – with the currently pending sanctions almost certain to increase the pace of this transition away from the U.S. petrodollar.

Furthermore, if Trump doesn’t veto the legislation, you can be assured that any possibility of rapprochement with Russia is history. On top of that, Russian president Vladimir Putin said Sunday 755 U.S. diplomats will be expelled from Russia by Sept. 1.

The Russian publication Kommersant is also reporting that if the sanctions are approved by Trump, retaliation will include:

  • The seizure of all diplomatic mansions
  • Banning of ALL US IT companies
  • Banning of all US agricultural products
  • Ending the exportation of titanium to Boeing (30% of their titanium comes from Russia)

Essentially, the U.S. is forcing the Russians and Chinese into a closer strategic alliance, and the latter’s only means of hedging against increasingly reckless U.S. actions, meant to undermine Eurasian integration and destabilize Russia in hopes of eventual regime change, is to vastly increase the economic, energy and security cooperation between their two states.

Likely seeing the writing on the wall, it can virtually assure that countries such as Germany and Turkey, two key hubs of Eurasian integration, will eventually turn towards the multipolar future of an integrated Europe and Asia – and away from the hegemonic dictates of the American Empire in the name of self-interest.

Please share this important article to help others understand the critical nature of the dangerous game being played by the ruling-elite oligarchy!

Source Article from http://thefreethoughtproject.com/russia-sanctions-will-end-us-petrodollar-dominance-strengthen-powerful-russosino-strategic-alliance/

Russia & China Declare All Out War on US Petrodollar — Prepare for Exclusive Trade in Gold

petrodollarpetrodollar

The formation of a BRICS gold marketplace, which could bypass the U.S. Petrodollar in bilateral trade, continues to take shape as Russia’s largest bank, state-owned Sberbank, announced this week that its Swiss subsidiary had begun trading in gold on the Shanghai Gold Exchange.

Russian officials have repeatedly signaled that they plan to conduct transactions with China using gold as a means of marginalizing the power of the dollar in bilateral trade between the geopolitically powerful nations. This latest movement is quite simply the manifestation of a larger geopolitical game afoot between great powers.

According to a report published by Reuters:

Sberbank was granted international membership of the Shanghai exchange in September last year and in July completed a pilot transaction with 200 kg of gold kilobars sold to local financial institutions, the bank said.

Sberbank plans to expand its presence on the Chinese precious metals market and anticipates total delivery of 5-6 tonnes of gold to China in the remaining months of 2017.

Gold bars will be delivered directly to the official importers in China as well as through the exchange, Sberbank said.

Russia’s second-largest bank VTB is also a member of the Shanghai Gold Exchange.

To be clear, there is a revolutionary transformation of the entire global monetary system currently underway, being driven by an almost perfect storm. The implications of this transformation are extremely profound for U.S. policy in the Middle East, which for nearly the past half century has been underpinned by its strategic relationship with Saudi Arabia.

THE RISE & FALL OF THE PETRODOLLAR

The dollar was established as the global reserve currency in 1944 with the Bretton Woods agreement, commonly referred to as the gold standard. The U.S. leveraged itself into this power position by holding the largest reserve of gold in the world. The dollar was pegged at $35 an ounce — and freely exchangeable into gold.

By the 1960s, a surplus of U.S. dollars caused by foreign aid, military spending, and foreign investment threatened this system, as the U.S. did not have enough gold to cover the volume of dollars in worldwide circulation at the rate of $35 per ounce; as a result, the dollar was overvalued.

America temporarily embraced a new paradigm in 1971, as the dollar became a pure fiat currency (decoupled from any physical store of value), until the petrodollar agreement was concluded by President Nixon in 1973.

The quid pro quo was that Saudi Arabia would denominate all oil trades in U.S. dollars, and in return, the U.S. would agree to sell Saudi Arabia military hardware and guarantee the defense of the Kingdom.

A report by the Centre for Research on Globalalization clarifies the implications of these most recent moves by the Russians and the Chinese in an ongoing drive to replace the US petrodollar as the global reserve currency:

Fast forward to March 2017; the Russian Central Bank opened its first overseas office in Beijing as an early step in phasing in a gold-backed standard of trade. This would be done by finalizing the issuance of the first federal loan bonds denominated in Chinese yuan and to allow gold imports from Russia.

The Chinese government wishes to internationalize the yuan, and conduct trade in yuan as it has been doing, and is beginning to increase trade with Russia. They’ve been taking these steps with bilateral trading, native trading systems and so on. However, when Russia and China agreed on their bilateral US$400 billion pipeline deal, China wished to, and did, pay for the pipeline with yuan treasury bonds, and then later for Russian oil in yuan.

This evasion of, and unprecedented breakaway from, the reign of the US dollar monetary system is taking many forms, but one of the most threatening is the Russians trading Chinese yuan for gold. The Russians are already taking Chinese yuan, made from the sales of their oil to China, back to the Shanghai Gold Exchange to then buy gold with yuan-denominated gold futures contracts – basically a barter system or trade.

The Chinese are hoping that by starting to assimilate the yuan futures contract for oil, facilitating the payment of oil in yuan, the hedging of which will be done in Shanghai, it will allow the yuan to be perceived as a primary currency for trading oil. The world’s top importer (China) and exporter (Russia) are taking steps to convert payments into gold. This is known. So, who would be the greatest asset to lure into trading oil for yuan? The Saudis, of course.

All the Chinese need is for the Saudis to sell China oil in exchange for yuan. If the House of Saud decides to pursue that exchange, the Gulf petro-monarchies will follow suit, and then Nigeria, and so on. This will fundamentally threaten the petrodollar.

According to a report by the Russian government media, significant progress has been made in promoting bilateral trade in yuan, between the two nations, as the first step towards an even more aambitiousplan—using gold to make transactions:

One measure under consideration is the joint organization of trade in gold. In recent years, China and Russia have been the world’s most active buyers of the precious metal.

On a visit to China last year, deputy head of the Russian Central Bank Sergey Shvetsov said that the two countries want to facilitate more transactions in gold between the two countries.

In April, Sberbank expressed interest in financing the direct import of gold to India—also a BRICS member. Make no mistake that a BRICS gold marketplace could be used to bypass the dollar in bilateral trade, and undermine the hegemonic control enjoyed by the US petrodollar as the global reserve currency.

“In 2014 Russia and China signed two mammoth 30-year contracts for Russian gas to China. The contracts specified that the exchange would be done in Renminbi [yuan] and Russian rubles, not in dollars. That was the beginning of an accelerating process of de-dollarization that is underway today,” according to strategic risk consultant F. William Engdahl.

Russia and China are now creating a new paradigm for the world economy and paving the way for a global de-dollarization.

“A Russian-Chinese alternative to the dollar in the form of a gold-backed ruble and gold-backed Renminbi or yuan, could start a snowball exit from the US dollar, and with it, a severe decline in America’s ability to use the reserve dollar role to finance her wars with other peoples’ money,” Engdahl concludes.

Source Article from http://thefreethoughtproject.com/russia-china-petrodollar-gold/