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The PetroYuan Is Born: Gazprom Now Settling All Crude Sales To China In Renminbi
Two topics we’ve deemed critically important to a thorough understanding of both global finance and the shifting geopolitical landscape are the death of the petrodollar and the idea of yuan hegemony.
Last November, in “How The Petrodollar Quietly Died And No One Noticed,” we said the following about the slow motion demise of the system that has served to perpetuate decades of dollar dominance:
Two years ago, in hushed tones at first, then ever louder, the financial world began discussing that which shall never be discussed in polite company - the end of the system that according to many has framed and facilitated the US Dollar's reserve currency status: the Petrodollar, or the world in which oil export countries would recycle the dollars they received in exchange for their oil exports, by purchasing more USD-denominated assets, boosting the financial strength of the reserve currency, leading to even higher asset prices and even more USD-denominated purchases, and so forth, in a virtuous (especially if one held US-denominated assets and printed US currency) loop.
The main thrust for this shift away from the USD, if primarily in the non-mainstream media, was that with Russia and China, as well as the rest of the BRIC nations, increasingly seeking to distance themselves from the US-led, "developed world" status quo spearheaded by the IMF, global trade would increasingly take place through bilateral arrangements which bypass the (Petro)dollar entirely. And sure enough, this has certainly been taking place, as first Russia and China, together with Iran, and ever more developing nations, have transacted among each other, bypassing the USD entirely, instead engaging in bilateral trade arrangements.
Falling crude prices served to accelerate the petrodollar’s demise and in 2014, OPEC nations drained liquidity from financial markets for the first time in nearly two decades:
By Goldman’s estimates, a new oil price “equilibrium” (i.e. a sustained downturn) could result in a net petrodollar drain of $24 billion per month on the way to nearly $900 billion in total by 2018. The implications, BofAML notes, are far reaching: "...the end of the Petrodollar recycling chain is said to impact everything from Russian geopolitics, to global capital market liquidity, to safe-haven demand for Treasurys, to social tensions in developing nations, to the Fed's exit strategy.”
Shifting to the idea of yuan hegemony, China is aggressively pushing its Silk Road Fund and Asian Infrastructure Investment Bank.
The $40 billion Silk Road Fund is backed by China’s FX reserves, the Export-Import Bank of China, and China Development Bank and seeks to increase ROIC for Chinese SOEs by investing in infrastructure projects across the developing world, while the $50 billion AIIB is funded by 57 founding member countries (the US and Japan have not joined) and will serve to upend traditionally dominant multilateral institutions which have failed to respond to the rising influence and economic clout of their EM membership. China will push for the yuan to play a prominent role in the settlement of AIIB transactions and may look to establish special reserves in both the AIIB and Silk Road fund to issue yuan-denominated loans.
Back in early November, SWIFT data showed that 15 new countries had joined a list of nations settling more than 10% of their trade deals with China in yuan. "This is a good sign for [yuan] adoption rates and internationalisation. In particular, Canada's [yuan] usage for payments, which has increased greatly over this period, is very interesting since we have not seen strong adoption of the [yuan] from North America to date,” Astrid Thorsen, Swift's head of business intelligence said.
Earlier that month, China and Russia indicated that going forward, more trade between the two countries would be settled in yuan. From Reuters, last November:
Russia and China intend to increase the amount of trade settled in the yuan, President Vladimir Putin said in remarks that would be welcomed by Chinese authorities who want the currency to be used more widely around the world.
Spurred on by their often testy relations with the United States, Russia and China have long advocated reducing the role of the dollar in international trade.
Curtailing the dollar's influence fits well with China's ambitions to increase the influence of the yuan and eventually turn it into a global reserve currency. With 32 percent of its $4 trillion foreign exchange reserves invested in U.S. government debt, China wants to curb investment risks in dollar.
The quest to limit the dollar’s dominance became more urgent for Moscow this year when U.S. and European governments imposed sanctions on Russia over its support for separatist rebels in Ukraine.
"As part of our cooperation with this country (China), we intend to use national currencies in mutual transactions.The initial deals for rouble and yuan are taking place. I want to note that we are ready to expand these opportunities in (our) energy resources trade," Putin said at the time, suggesting that going forward, Russia may look to settle sales of oil in yuan.
Sure enough, Gazprom has confirmed that since the beginning of the year, all oil sales to China have been settled in renminbi. From FT:
Russia’s third-largest oil producer, is now settling all of its crude sales to China in renminbi, in the most clear sign yet that western sanctions have driven an increase in the use of the Chinese currency by Russian companies.
Russian executives have talked up the possibility of a shift from the US dollar to renminbi as the Kremlin launched a “pivot to Asia” foreign policy partly in response to the western sanctions against Moscow over its intervention in Ukraine, but until now there has been little clarity over how much trade is being settled in the Chinese currency.
Gazprom Neft, the oil arm of state gas giant Gazprom, said on Friday that since the start of 2015 it had been selling in renminbi all of its oil for export down the East Siberia Pacific Ocean pipeline to China.
Russian companies’ crude exports were largely settled in dollars until the summer of last year, when the US and Europe imposed sanctions on the Russian energy sector over the Ukraine crisis...
Gazprom Neft responded more rapidly than most, with Alexander Dyukov, chief executive, announcing in April last year that the company had secured agreement from 95 per cent of its customers to settle transactions in euros rather than dollars, should the need to do so arise.
Mr Dyukov later said the company had started selling oil for export in roubles and renminbi, but he did not specify whether the sales were significant in scale.
According to Gazprom Neft’s first-quarter results issued last month, the East Siberian Pacific Ocean pipeline accounted for 37.2 per cent of the company’s crude oil exports of 1.6m tonnes in the three months to March 31.
With that, the "PetroYuan" has officially been born and while FT notes that "other Russian energy groups have been more reluctant to drop the dollar for settlement of oil sales," the fact that Russian producers are now openly considering a shift at the same time that officials in the US and Europe are openly discussing stepped up economic sanctions suggests renminbi settlements may become more commonplace going forward.
To understand why and to what extent this is significant in the current environment, consider the following from WSJ:
Officials of the Organization of the Petroleum Exporting Countries, which declined to cut oil production last year, reasoned that maintaining high production levels would protect market share in crucial importing nations.;
But Chinese customs data released Friday show that China’s crude imports from some big OPEC nations have plummeted, while imports from Russia surged 36% in 2014. Meanwhile, imports from Saudi Arabia fell 8% and those from Venezuela dropped 11%.
To summarize: Western economic sanctions on Russia have pushed domestic oil producers to settle crude exports to China in yuan just as Russian oil is rising as a percentage of total Chinese crude imports. Meanwhile, the collapse in crude prices led to the first net outflow of petrodollars from financial markets in 18 years, and if Goldman's projections prove correct, the net supply of petrodollars could fall by nearly $900 billion over the next three years. All of this comes as China is making a concerted push to settle loans from its newly-created infrastructure funds in renminbi.
Putting it all together, the PetroYuan represents the intersection of a dying petrodollar and an ascendant renminbi.
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We can never have enough wars.
As long as they remain Frontier Wars, and Rome remains Rome with its Bread & Circus.
/s
They're working pretty hard at stoking up a race war right at home.
They will work hard to keep the war fromNew York City or at least the financial side of NYC
'UP YOURS'...!!!
:-)
Has a carrier task force reached the 'sand castles' yet...? We haven't seen ~anything~ yet with regard to the de-dollarization process being accelerated.
At last the real reason the Ukrainians shot down the Malaysian plane comes to light.
I say put a bullet in that old rag we call the Dollar as she's only worth 1:60 of what she was 100 years ago. The old nag needs to be put out to pasture. The reset will suck meat, but the unborn will thank us.
Like that will ever happen. War bitches!!!!!
Is the Yuan still pegged to the USD?
Has the world ever had a reserve currency that is pegged to another currency?
Call me when they start to allow free floating exchange rates.
given the echo chamber we have here I'm surprised you don't have umpty quadzillion downvotes... not that any of these clowns can live with the truth of your statement...
that eco chamber is filled euth idiots like you . rest give yuan time it will rise more and more . why you yanks are so despo ?
That echo chamber is filled with idiots and trolls like tuurtle
Rest why yuan is pegged to dollar do that your fed bank can continue their zimbabawe style dollar printing . If china wants they can strangulate your press .
Means only one thing, WAR is coming...
sources?
There is a war going on in several places all the time, around the world.
well in a reality based world all the dollars that china had to have to purchase said oil from gazprom would not be needed so they would be sold on forex and drive down the value of the dollar. another possibility is china could use those dollars to purchase treasuries, but i'm not sure they are that stupid. they could use it to purchase long term dollar based assets like property.
I guess I'm just an impatient fucker (Especially when it comes to the demise of the west) but what's to stop the Chinese telling ALL the OPEC countries they will only buy their oil in RMB?
I'm sure Venezuela would go for it, Iran and probably those dirty House of Saud money loving, kiddy fuckin royals.
After all, business is business, right?
The Great Reset is getting closer and closer. When it blows, NOBODY will be unaffected, and it won´t matter where you live on this rock. There are BILLIONS of people who live on one or two dollar-a-day incomes. You can imagine what will happen when even that paltry amount vanishes into hyperinflationary nothingness. The tribute that will be paid in blood and suffering will dwarf any previous event in human history....and all because the fewest of brains are addicted to playing their own Games of Thrones. Your chances of surviving depend entirely on what preperations you have accomplished before this bitch blows...which can happen literally overnight.
Maybe, maybe not.
It's certainly not going to happen, I predict, by, say, December 31, 2015. Or b 4 hillary rodman anointed by the Jews, takes her place in history as the most gelatinous thighed, baggy -eyed, droopy- chested POTUs this country has ever seen.
And then after whatever number of years she gets to ride around on AF One, she disappears or is rendered extinct.
Maybe then a reset, but the Jews can't have that happen to her b 4 or while in office.
You are that confident that this system can stay intact unti Jan. of 2017 (which is when the next POTUS takes office)? Obama is not going to be that lucky and escape this carnage on his watch. No way Jose.
I hope not. I accept the great reset that is coming and the carnage that goes with it. But I really want that narcissistic, illegal Kenyan, sociopathic cocksucking cunt to be at the helm when she blows. I want that fucker to be shamed like Dennis Hastert and exposed for the ignorant cunt that he is. Small consolation for me
If it blows before Hitlery is crowned, she can then become the 'saviour'
Us terrorist threat in 5,4,3....
Threat?
The US is far deeper than just threats..they'll blow up an orphanage just for revenge.
Saudi monarchs must be pissed. Gonna be a lot more heads rollin soon.
What did our overlords the masters of the universe think would happen? Eventually you fuck with enough people and let your MIC run wild, people start pushing back. Stupid and arrogant does not even begin to describe US foreign policy. Shooting yourself in the foot is the new national pastime in Dumbfuckistan.
only way they could pull that off is if they are millipeads.
Pride goeth before a fall.
Those whom the gods would destroy, they first make mad.
But but but we have President Peace Prize! He is going to heal the earth and reset western/moose phlem relations and bolster the pride of porch monkeys and house niggers everywhere. He is a staunch defender of homos and pedophiles alike! He is going to make America a place his wookie wife can finally be proud of! All hail Peace Prize! All hail Peace Prize!
I am a total dumbass when it comes to events surrounding global finance (so I usually just read and learn and keep my comments to myself), but the continued ascendence of the petroyuan and Vlad's push to embrace his eastern neighbors has me wondering.
Could this "secret" trade deal getting rammed through CONgress as we speak be a last desparate move by the western puppet masters to keep hold of the status quo? I dont think any of the CONgress critters are smart enough to understand the importance of what is happening. And I sure dont think the community organizer has a fucking clue. But the puppet masters may see the dollar's demise and are doing whatever they can to protect their turf and maintain control of their serfs?
Even with the usual criminals pulling the strings, I can think of no other reason for the sudden urgency and secrecy needed to pass some unCONstitutional, and immoral "trade" deal with fastrack powers given to the community organizer and Valerie J.
Would love to hear thoughts from others who have far more insight into global finance and power players?
Maybe the crash is closer than we think. These fuckers might be getting really desparate.
"Maybe the crash is closer than we think."
Certainly, what we are seeing is the prelude of a major macro economic shift in the global economy.
As for the trade deal, it is exactly what you think. It is not a way to maintain the current economy and hegemony, but a way for TPTB to PREPARE for the next major economic shift. These laws are being drafted for control after the shit hits the fan..not to prevent it.
Maybe the TPP calls for a new currency?
The goal of Obamatrade has many components. But a big (unstated one) is to deny the BRICS countries, esp. Russia and China, access to markets.
It's only free trade if you're Emperor Peace Prize's slave. For the rest of the world, "It sucks to be you"
These are how wars get started but American Exceptionalism and all that.
Yep, remeber, Bath House was rebuffed a year or so back by China regarding finances/trade.
The TPP has been under negotiation a while, but maybe it is being sped up.
Other than screwing serfs over, I am sure the BRIICS will find a work-around.
Probably a lot less dollar use in Argentina too. I was just in Buenos Aires and the world's largest bank (Chinese) has ICBC branches all over the place.
Oh look a new fiat! Backed by guns.
Another valueless coin is not the answer Im looking for. Give me a coin with a real measurable value. Fuck the money changers!
USD prices may be rising at an increasing pace at a <China import>-Mart near you!
If the US has any leverage at all, it is threatening to mint something along the lines of 100,000 1 Billion USD coins out of any essentially worthless, common metal (old soda cans comes to mind) and close out the US public debt holdings. ROFL!
An armada will just piss them off.
I recall Bill Clinton scared to impose restrictions on Chinese toys and shoes for fear of inflation at the time.Now the US relies on China for so much , that inflation would be the last of their problems.
Now we need Union Pay cards to have wider circulation in Europe where American Express is in retreat
To the G7,
from Russia with love
Vlad
Figured out who the other non-G7 attendees ("Guest Invitees") were in the G7 meeting in Bavaria (https://en.wikipedia.org/wiki/41st_G7_summit)
Ethiopia, Iraq, Liberia, Nigeria, Senegal, Tunisia, UN.
The guy/gal who some identified as the late Chuck Berry, was in fact Ellen Johnson Sirleaf from Liberia -- now allegedly Ebola-free, but not Obola-free.
Given that this represents a large African contingent, it is clear that the US has imminent plans to add another Global(ist) Trade Treaty to its current Trio (TPP, TiSA, TTIP). Mark may words.
"I just passed GO, and I get $200. Now I'll buy Zanzibar Avenue for $300, and put up some houses. It's fun to be King of the board-game jungle. Ah, that ain't workin', that's the way you do it, money for nothin' and checks for free"
Chuck is still alive
I agree on an African Free Trade pact b/c China is all over Eastern and Western Africa. Obamatrade is meant to deny BRICS access to non-member markets
Soon the Chinese will outnumber the Africans.
Will China allow a negative trade balance?
Can someone compare the value of all Chinese oil imports to the value of what China exports?
If you import 100 in oil and export 1,000 in other shit how does that ever balance out?
Will China demand to pay for oil in Yuan - but expect anyone buying shit from them to pay in dollars?
I am having trouble with the math.
China and US are the mutual benefectors of their parasite and host relationship.
Suck on that Kissinger you Jewish Fucktard! HA
Taking a page out of Dear Henry's book; Putin learns fast!
What GWB and Clinton created in China thanks to Outsouring mantra and preferred status via NWO/WTO construct now comes back to "byte their oligarchy butts !"
Don't forget Herbert Walker Bush. After he was head of the CIA and before he was VP he was Nixon's China guy.
Nice to see somebody remembers about that. I recall he had to disclose as a Chinese lobbyist and then divest some assets when Ronnie took him on as Veep.
Oh, it's not going to bite their butts. The oligarchs are globalists and spread their risk. They will gain individually from whatever happens between China and Russia. Even if the US is left a wasteland.
Taken from a previous clever ZH Poster: "I for one welcome our new Chinese’s Overlords"
Submit button is too damn sensitive.
Trust the force. :-)
No U.S. dollars for oil trade between Russia, China??? DAS RAYCISS! Goyim throughout the world should be using Federal Reserve Notes for EVERY transaction. Don't y'all comrade bitchez watch CNBC?
Fiat currency ain't shit.
Hi fellas, first time caller, long time listener, busting my cherry.
Jeez, so many questions.
I guess my first one, based on reading comments over the past 6, 8 months is - where can I sign up to be a paid troll? I'm a fuckin' whore. Pro-Putin, anti-Putin, Zionist, working from home... I'll do anything if th eprice is right.
My second question is - given the article, and the move away from dollar-meiated transactions for not only oil, but Thai lady boys, and the like, does China start selling treasuries at a faster rate now, and if so, what is the US response [if any]?
As to your first question follow the link -
https://www.nsa.gov
Secondly China began selling USTs in earnest years ago. They had cut their portfolio in half as of late. They will likely keep selling forcing the Fed to be the sole buyer of them.
So presuming this means more printing, to buy more IOUs from Uncle Daddy - where, the likes of Paul Krugman asked the other day, is the inflation?
Or is the inflation you'd classically expect from printing currency simply *in* the stock, bond, housing bubbles?
I'm not smart enough to understand Krugman other than to notice he seems to have about 5 articles he just tweaks and re-issues, like some kind of shitty greatest hits. But anyway he's asked "where's the inflation" to his critics, etc. so much I realized I had no idea.. but it's gotta be somewhere around here...
Its not in my paycheck.
No inflation yet because all the printed money has gone into banks' reserves (which were negative in 2008 and are still low in comparison to all those derivatives they keep making). The money hasn't gone to main street so inflation has not been "evident" until recently (except for food, rent, and other 'nonessentials'.)
I was thinking something like that... couple slices and a 20 oz soda are a lot more than they were a few years back... non-carbohydrate, healthy food is even worse.
Seems like one way to not have inflation is simply not to measure it.
It seems obvious physical gold/silver is a good hedge - but anything else? I also wonder if inflation remains creeping death or if we could wake up one morning to ten dollar gallons of milk or somesuch.
The "Utility" of the FED's Basket of Goods remains to be proven to me. But I am not an Expert yet. Social Security cost of living increases are kept low by using this Official Inflation Rate and that is the only benefit I know of. TIPS Treasuries are also kept down to low increases.
Name your most expensive Bills, you can find the inflation yourself. Bubble is another word for Inflation, so add US Stock Market on top.
- Federal Budget Grossly Inflating (looks like Fiscal Stimulus it is so Obvious)
- US Stock market, and Private Executive Pay & Compensation, and somehow this also translates to higher pay for Federal Employees, Public Executives since 9-11
- Health Care & Drugs & Dentistry
- US Education & Day Care (But I have this one, so can't say)
- Housing & Housing Rent, Home Insurance, Property Tax, Banking Fees, Utilities, Utilities Insurance (sewer,etc), Garbage
- Eating Out, Entertainment, Mixed Drinks, Call Drinks, Specialty beer, movies, concerts, sports tickets, parking, Cable, internet, Phone
David Cay Johnston wrote a book called "The Fine Print" telling how you pay more but don't realize the savings are not there as advertised in bills where they itemize things and add fake FCC Tax.
- How about Inflation in the Interest Rate you pay on Credit? LIRP or ZIRP is what your bank creates credit for, but likely you will huge Interest Payments.
a small farm land
I think you mean US Treasuries in TIC Data.
Looks like I was mixed up. This looks like both short and Long Term Treasuries.
Here is the Current TIC Data, look at both Hong Kong and China. I don't see them selling although there is movement.
http://www.treasury.gov/ticdata/Publish/mfh.txt
China just increased in March, $1,261 Billion
Hong Kong $180 Billion (New High)
If you like taking it up the ass,I suggest going to Market Watch,there's a lot of butt-fuckers there..
I don't see China selling Long Term Treasuries.
http://www.treasury.gov/ticdata/Publish/mfh.txt
You can check these older links for other kinds of securities:
http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (foreign Liabilities are Property in this case)
Last Data is from January 2015.
Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $354 B
Bermuda 2002 = $14 B, then 2013 = $94 B, Today ??
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $70 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1239 B
France 2002 = $11 B, then 2013 = $42.4 B, Today $75 B
Germany 2002 = $38 B, then 2013 = $54 B, Today $69 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $172 B
India 2002 = $5.2 B, then 2013 = $56.6 B, Today $91 B
Ireland 2002 = $6 B, then 2013 = $91 B, Today $137 B
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1238 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $176 B
Mexico 2002 = $16.7 B, then 2013 = $52.7 B, Today $85 B
Norway 2002 = $5 B, then 2013 = $74 B, Today $73 B
Philippines 2002 = $3 B, then 2013 = $36 B, Today $40 B
Poland 2002 = $7 B, then 2013 = $31 B, Today $29 B
Russia 2002 = $3 B, then 2013 = $138 B, Today $82 B
Singapore 2002 = 19.4 B, then 2013 = $82 B, Today $109 B
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $205 B
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $170 B
Turkey 2002 = $2 B, then 2013 = $18 B, Today $82 B
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $207 B
Federal Debt Held by Foreign & International Investors as Percent of Gross Domestic Product, 2014:Q4: 34.75940 Percent of GDP,
http://research.stlouisfed.org/fred2/series/HBFIGDQ188S
Belgium rocks ! Third after China and Japan. Who would have thought... /s
Where's our bestest buddy in the whole world? How come Israel isn't help bail out Uncle Sugar?
/s
The Chinese potentially dumping UST is overrated imo. Chinese have some very real and uncomfortable domestic issues that are taking priority. Their domestic collateral is overvalued and balance sheets are blowing up everywhere. The UST is actually one of their safer bets if you consider the long term history of USTs.
Chinese may force the Fed's hand with a move like the "Petroyuan". They get to float their own currency wider and they almost dictate the Fed to take action in defending the USD.
Russia supposedly accepting Yuan for their oil and hoping they can figure out how to spend it again is another concern. Chinese oligarchs are converting RMB and hoarding real estate, USD and gold. Truth is, nobody really wants to hold RMB en masse because of impending doom.
Safest paper is still USD at least for another decade.
whatever helps yiu feel strong and Xceptional
I don't know about paid trolling, but there are alot of work from home jobs listed here. You may be able to make $5000 a week doing some mysterious work, I'm assuming it involves fellatio and rim jobs, but it's not clear from their advertisements.
China will likely dump the treasuries and crater the US economy when they have recouped their value in property/assets in the US (like real estate/gold vault in NYC). The PetroYuan is here, so the timer has started.
Putin has a FIFA and Yellen has my FAFSA which she better release soon otherwise they will never know about Jane Austin on Q99X2.
Translation; We've decided to cut out the 10% "vig" the joos have been skimming off the top of every financial transaction for the last 25 years..
FED rate hikes coming fast and furious in 3, 2, 1 ...
no other "tools" left in that toolbox Mr. Yellen!
Like China's wanting to use the IMF and SDR as a means to expand their currency float via Yuan Bonds (per Jim Willie), it appears now that China is using Russia as a proxy to expand the RMB on a second front.
Dovie'andi se tovya sagain (It's time to toss the dice)
Got Karatbars?
Remember, many other countries are now using the petro-yuan, soon to be the Golden Yuan??
Barry Soetero said Russia was isolated at the G-7
This news doesn't sound so isolated to me!
http://www.zerohedge.com/news/2014-09-01/everyone-saying-russia-isolated...
What a f**King stupid thing to say. Could you imagine if Bush or Reagan would have said that - not that we have real elections or real leaders in Amerika.
That guy is a crackhead. He doesn't understand shit.
The world is isolating Russia - proof
https://twitter.com/ianbremmer/status/607671649891164161/photo/1
"we are just going to kill the dollar" https://www.youtube.com/watch?v=ILKolTI1s50
I know this isn't true b/c Putin is a committed Altanticist. But if they won't have him, "hang on tightly, let go lightly". Taking out the petrodollar is a consolation to the foregone sanctions renewal looming
A resumption of sanctions helps him tremendously in consolidating his power base against the non-Putin Oligarchs and Russian Liberals who want to Yeltsinize their energy and other resources for pennies on the dollar to various non-shellfish eaters.
What I hope but probably won't happen: Russia nationalizes their Rothschild Central Bank.
No worries, Obama put his Nobel Peace prize into a barbaric relic and his favorite charity.
I was in Stockholm yesterday. Saw the Nobel Museum. Same people visiting churches were there, praising their gods...
American oligarchs are doomed. We, at least, have our poverty to bail us out. We're used to it.
Hopefully American civilians have enough .223/.308, boiled rope and lamp posts plus DIY guilottines.
What exactly please, is boiled rope?
A mind focuser.
If it's War the US wants then the US should prepare for War.
Doesn't matter if it is currency war, economic war, financial war, boycotts, sanctions, seized Bank Accounts, Petro Dollar, Strategic Navy & Air Ports overseas, Resupply & Refitting for Navy Ships overseas, National Stock Piles, Strategic Reserves, or Hardening our Electrical Grid against EMP Attack/Coronal Mass Ejection from the Sun. The Banking System and Government are subject to 1) Cyber Attacks 2) Direct Infrastructure Attacks 3) Electric Grid Attacks.
- "Recent attacks on transformer substations and other critical parts of the electric grid have underscored one of America’s most serious vulnerabilities: If the power goes off and stays off, our nation and the vast majority of its population will cease to exist."
Since there has never been a test of rebooting the US Electric Grid no one knows how difficult it would be to Restart. Last blast from the Sun destroyed all telephone lines to Europe, 1859, and world wide telegraph systems.
Sheathing the Power Grid may only cost $2 Billion, but the cost if hit might destroy all commerce, all communications, all eduction, all food & Water distribution, and all transportation & Emergency Response Vehicle communications.
https://www.congress.gov/bill/113th-congress/senate-bill/2158 -
https://www.govtrack.us/congress/bills/111/hr5026 -
War?
The average coddled HS graduate can't tell the difference between losing on the battlfield and letting loose a barrage...
We'd lose or as many young fellows would now say, "we'd loose."
Shit will hit the fan when....
China is Saudi Arabia's no#1 client.
This story is big news, but wait until Saudi Arabia announces that China will pay for oil in Renminbi.
That's when the shit will hit the fan folks!!! It's coming.....
this is the "oh, fuck!" moment before you hit the tree. more than 50% of the world economy trading in petroyuan means the homeless problem in the usa just went vertical.
Are the Zionists incompetent and being effectively challenged or have they decided for the destruction of the US and the creation of something else?
The mint should run out of eagles again soon.
let's see. when there is less demand for something it becomes cheaper in price to attract buyers. at what interest rate does the dollar become attractive to buyers? a cheapening dollar at 10%, 15% 25%? that is the disaster scenario but the slope begins at just a coupla % from zero.
Same scam fiat, different label.
Settlements should get easier as the price of OIL declines...
http://www.globaldeflationnews.com/oil-light-sweet-crudeelliott-wave-upd...
Tyler is going to give himself tendonitis, patting himself on the back like that; but Jim Willie has been all over this for years.
All the cash we sent them from North America has begun to flow back. It will inflate the prices on real estate, goods and services like we have never imagined and believe will never happen. We are all so very naive!!!!!!!! We loved the deals when they were flowing to us. How much is in the Pacific Rim in US dollars????? It will be washing up on our shores very soon.
I know from experience that my wife would firmly disagree with you.
Yeah imagine foreigners buying up $400 Billion in Real Estate in the US. That is a lot of Inflation in New York, Atlanta, Miami, Dallas, San Fransico, Seattle, Portland or wherever.
Balance on Current Account (Discontinued Series)
2013: -400.254 Billions of Dollars (data up to Jan 2013)
Annual, Not Seasonally Adjusted, BOPBCAA,
Current Account Balance: Total Trade of Goods for the United States©
2013: -703,911,000,000 National currency, Sum Over Component Sub-periods (+ see more) Annual, Not Seasonally Adjusted, BPBLTD01USA636S, Updated: 2014-04-03
Any Chinese buyer willing to pay going market rate +30% for my really nice triplex? Huh...? C'mon, don't be shy...
Reflublicaans started the constant state of warfare / endless quagmires under Bushy-the-Kid, 2001. Barry's just continuing the saga....
U.S. shale is dying the death, thankx to Shoddy Arubia. It blesses Russia's oil/gas export position on the global stage.
Putin warned that economic and other measures against Russia would be a boomerang that would clobber the U.S. and its "mistresses", and now we're seeing the truth of that.
I'm thinking it should be worse than the data, but we did see Global GDP go down recently to negative (due to strength of US Dollar and slow down). Plus US GDP seems to be slowing down. But would think Trade imbalance would be higher than the numbers we see. Wish it was nonseasonally Adjusted.
Millions of Dollars, Monthly, Seasonally Adjusted, BOPGSTB,
Name,...... 2015-04, 2015-03, 2014-04,
Total Balance,-40,879, -50,566, -44,271,
Goods, -60,652, -69,977, -64,321,
Services, 19,773, 19,411, 20,051,
No way. Just the opposite. The shale guys are lean and mean. The can shut a well down or bring it online in a day, And they can do it by the 1000's. It is Shoddy Arabia that is fucked. They have to keep pumping those monster wells in good times and in bad or they won't be able to feed those lasy ass sand niggers and next thing you know, they will all be rioting in the streets.
You are correct. Do people realize the abysmal education level of your typical Saudi? Or middle easterners in general? Do they not realize that the middle eastern culture ensures these people are incompetent and unproductive compared to your typical Westerner or northern Asian? If all foreign personnel left SA and was replaced by Saudis you would see a gradual decline in production and in 5-8 years it would be around 10% of current production levels. Middle Easterners, Africans, etc generally are 'clever', they are very good at taking something for nothing from someone. But producing something or inventing something? Laughable. I'm going to enjoy the implosion and collapse of SA and the entire M.E. that was built on sand i.e. oil.
...Boom!
I don't get it, shouldn't the trade be settled in Rubles?
Ruble and Russia have been targeted by the Western Bankers.
Ruble took a big hit after US Sanctions, Economic Warfare against Russia.
Edit:
Plus China has been on fire with all new infrastructure, spending and building continues, the finance all over the world, the have businesses/investments all over the world, the have resources & Smart workers.
Chinese finances are as fucked a anyone else's and they are only smart enough to steal US intellectual property.
Yrs idiot like you know anything . Douche.
Doesn't matter. The gold standard is coming back. All mediums of exchanges between trading partners will be redeemable for gold, and at long last the world shall have a fair, reliable and safe system to settle trade payments between the nations of the planet.
http://www.silverdoctors.com/jim-willie-us-dollar-will-not-survive-2015/
Note:
"China is planning to launch a 100 billion Yuan fund led by the Shanghai Gold Exchange, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal.”
http://www.silverdoctors.com/jim-willie-china-moving-to-executioner-of-k...
So, China will provide gold to be purchased by CBs of other nations, and thus everyone will have enough gold in order for gold standard to return -- in full this time around. Remember, in previous gold standard, only US had enough gold to back its currency, so no true gold standard could have been properly established... could have existed. This time world is going to get a fair, honest and trustworthy sytem.
So to review (even though we can't read the chart on Perto-dollar Mercantilism)
Liquidity problems, complications, and Money stock and Velocity:
- M1, M2, MZM Money Stocks have been Increasing perhaps to make up for problems with Liquidity due to proliferation of Securities spread far and wide (Depth & Breadth)
- Securities complicate Liquidity
- War and Military Spending are Destructive, War as things or people are destroyed or injured, Military Spending often is outside of the Economy (Economic Leakage)
- Trade Imbalance is Economic Leakage, reduces Liquidity
- Capital Flight, Building Off-Shore Businesses & Production, Outsourcing Off-Shore, Wealth Moving Offshore, are all Economic Leakage, Reduce Liquidity at least short Term
- Payments from Families to Relatives Off-Shore, Returning to Retire off-shore, is also Leakage
- Wealthy Hoarding Cash is Stagnant Capital, higher in a Recession
- Mal-Investment, maybe be Stagnant Capital, Reduces Liquidity
- Manufacturing Decline also reduced Velocity and plays a part in Liquidity
- So Petro Yuan is just another Reduction of Liquidity & Velocity
http://research.stlouisfed.org/fred2/series/M1 (Check the steep Slope)
http://research.stlouisfed.org/fred2/series/M2
http://research.stlouisfed.org/fred2/series/MZM
http://research.stlouisfed.org/fred2/series/M1V (Top was 2007 Q4 at 10.7, now down to 6.3)
http://research.stlouisfed.org/fred2/series/M2V (Top was 1997 Q3 at 2.2, now down to 1.5)
http://research.stlouisfed.org/fred2/series/MZMV (Top was 1981 Q1 at 3.5, now down to 1.4)
http://research.stlouisfed.org/fred2/series/Mult (Top was January 1987 at 3.1, now down to .7)
Late Edit: Article states "OPEC nations drained liquidity from financial markets for the first time in nearly two decades:"
Even a single surface explosion of a 5-7-ton ammunition would initiate a powerful eruption of Yellowstone supervulcano. As a result, the US would cease to exist, although the consequences would be catastrophic for the rest of the world as well. Russia would suffer the least – because of the distance from the site of the explosion, the size of the territory and its location. Also, the damage to the countries located on the opposite to the US sides of the earth would also be limited. Nevertheless, let us stress that the explosion would be a disaster for the entire civilization. But that is the reason for the existence of such a weapon. The very possibility of its use should put an end to any thought of aggression against Russia. An alternative version of a megahit would be to initiate gigantic tsunamis. The idea belongs to Andrei Sakharov. Its essence is to detonate several bombs at defined points along the Atlantic and Pacific transform faults (approximately 3-4 for each) at the depth of 1.5-2 kilometers. This will, according to the calculations of Sakharov and other scientists, produce a waive that will reach 400-500 or more meters near the US shores. Crushing on the shores, the waive would wash away everything at the distance of more than 500 kilometers. If the explosions are made deeper closer to the bottom of the ocean where the earth crust near the plate joints is the thinnest, the crust could be destroyed, and the magma coming in contact with the ocean water would amplify manifold the intensity of the explosion. In such case, the height of the tsunami would exceed 1.5 kilometers, and the destruction zone would extend more than 1500 meters from the shore. This would be a very “clean” weapon – the nuclear winter would not come, since gigantic dust clouds would not form, and water vapors would pour over the land close to the point of their formation, i.e. on the US territory, as horrific radioactive rain showers. Such a hit would undoubtedly start tectonic activity in the entire region, including, very possibly, eruption of the Yellowstone supervolcano. The reverse waive would wash away Europe. In other words, the entire block NATO would be gone. The cataclysm would be horrendous.
Read this until you can recite it, Murican simpletons! You will learn a lot.
"and the destruction zone would extend more than 1500 meters from the shore."
I suggest a bicycle
Long water wings.
Well, that would solve the overpopulation problem, and we can keep producing crops here out west, I suppose as long as Yellowstone stays neutral, being about 750 miles NE of it.
Mother Nature has a way of dealing with things which are out of balance. I wouldn't worry too much about that. What I wanted was to educate Murican morons as I had seen some them here thinking, and even timidly embracing the idea, that they can win a war against the most powerful nuclear nation on the planet. So hear loud and clear you Murican morons -- you will all die in such a war: there will be no life as you know it left on North Murican continent. All I wanted was to demonstate you idiots about how little it takes to end most of life on North Murican continent, so your delirious fantazies about continuing your parasitism on the rest of the world wouldn't overexcite you, god forbid. Your brain synapses start to break and then shut down you know. I am doing you a favor. With that, let me bid you a farewell and wish you a good night. Here in Balkans we have to work to sustain ourselves, we cannot print paper or digitally conjure numbers to pay for our needs. Unfortunately we are not Western parasites so we have to work. Sleep well if you can. I know I will.
Ah, approching demise of that disgusting, immoral liberal Western filth always cheer me up. Soothing remedy.
You take pride in using plate tectonic destroying explosions to kill shitloads of people. Ok. Great. You think government assholes who skull fuck their people is limited to 'Murica? You have a strange mode of thinking...methinks. Best plan is just to sit the fuck back and let the house of cards shit the bed. It's a matter of time and not that much. I think your nuclear explosion to set off super volcanoes and tectonic death waves plan is retarded.
I think you are pretty simple creature. Have I not stated the purpose of my post? It was only for educational purposes for Murican morons who secretly encourage the thoughts of a nuclear war in some vain and pointless hope... attempt of retaining their parasitic grip via the fiat dollar system. Yes, the best is to wait for Ponzi scheme to collapse on itself. It has not much time to live anyway. But your oligarch rulers are itching for a fight, Muricano. Surely you must have noticed elevated levels of propaganda, lies and deceptions over the last year or so, together with all the attempt at starting a war - although a proxy one, one which would not see your Western lands suffer because of it (or maybe they would; one can never be too sure in these... interesting times), hm?
You are a retarded commie and have no idea of how the real world let alone physics works.
Get out of your pajamas and go look for a job so you can move out of your parents basement.
Try making some sense first, Murican retard! You are not even able to throw a meaningful insult, you stupid Murican scum!
Another, yet another nail in the western Zionistic coffin us buggers call life.
Rest be assured, when this shit show collapses you wont have time to turn round, never mind wipe your arse, as the populace turns into manical zombies. Dont fret mind, when it all kicks off, the closet women who wrecked the best part of the place I call home is all mine. You lot, do what you have to, but before they consign me to the hole in the ground, I swear I will skin Tony fucking child molesting cunt, wants to be a woman 'Miranda', D-Listed, treason doing away with cunt, kiddy fiddling twat alive Bliar.
There will be moments of the collapse we can sit back on and rev-elate that we were there, and this one will be one of them, B.Liar isnt on his own, fuck knows how much his security detail costs, and fuck knows what they will do when it goes pear shaped eh? Stand by his side in this day and age? Ask Bush, hes on the same hit list, bar different land.
Utter cunts.
:-)
Like or dislike Jim Willie, this guy's been pretty damn accurate.
It is weird to live in this matrix where you can predict every event, but still lose holding gold. It is hard to bet against a government sponsored ponzi scheme. I am still in the camp that paper goes to zero, like it did on the HKMEX a couple years ago, while physical stops being such a historical deal.
When you can print money without any downside and buy paper gold to the downside without ever, you can keep the game going a long time.
I would never let a declared enemy handle my savings. Maybe Russia and China have finally woken up.
So, if Russia "settles" their accounts in yuan, what's Russia going to DO with all of that accumulated currency after a year or two?
Great if they are buying goods from China, but what of the rest of the world? Who else will accept payment in yuan?
I will.
I won't.
WHAT IF...
Ebay , Alibaba, Amazon...
start settlling in yuan with source of goods as China.
Think
THAT is the right question.
But I don't know. Maybe a lot of countries, for example Nicaragua and Chile and other countries that do a lot of trade with China.
Then number one threat to US hegemony is not Russia, not ISIS, not Syria....China is the greatest danger and Obama had better wake up to this fact fast. The Chinese are ruthless and they will not give you a second chance to correct your mistake. Go look at what they are doing in the S. China Sea, they are grabbing territory and fortifying it to have the ability to completely choke off all commerce going thru the region, including shipping for Japan & S. Korea, major US allies who are now in danger.
Oh come on now, let's not exagerate.
They only want Taiwan and a few other countries.
Calm down.
Taiwan is part of China, Muricano. It is a Chinese island with Chinese people on it. They don't like lying, thieving, degenerate liberal Western scum like yourself, you know. But who does, right?
Taiwan is to China as Miami is to the USA. :-)
Good one dsty
Sidiji you are very right. And it's not just land. Over the past two years I've lost investments in Vatukoula gold mines and Gold One, both victims (or rather I was a victim) of ruthless buy in, accumulate and take off the market China scams, and yes, I'll call them scams. The mines are there, healthy, and doing better than any...and people that got shoved aside along the way well, it teaches them a lesson to even try to compete with their Chinese masters. Most do not understand the concept of Chinese ethics and in reality give them an inch and if they can they'll take a mile. Thais are pretty much the same way. It's ok to sell you a diamond and know its glass though not ok to sell that to someone in your family.
Out of family, it makes no difference, they are ruthless as a aggregate people and frankly China is our greatest danger. Wake up America.
Oh, have you now? Your Western oligarch rulers are wrecking an entire gold and silver mining business up by artificially suppressing their prices, and somehow China is to blame for your Western crimes, sins and violations. Don't insult anyone's intelligence, Muricano.
China can see the writing on the wall and all they see is the US going around the world fucking things up and taking control. Before long they will be coming after China.
I think the Russians and Chinese and other countries are mostly turning away from the west ( Cause they want business not war? )and trying to insulate themselves.
China is building her own islands in South China Sea, Muricano! She isn't stealing from others unlike you Westerners! And she has the right to build whatever she wants! It doesn't concern you. Not your business, scum! And noone is in any danger. China has stated many times she will not stop trading ships entering territorial waters of those newly built islands. Fabricating stories and spreading lies, are you Muricano? That is what you Westerners are good at after all, are you not? Thiefs and liars.
Fuck you commie
Hehe... You stupid Western trash! But it is still a somewhat better insult than your empty, hollow and stupid Muricano style attempt above this one -- I give you that much. At least it contains some meaning, regardless of how childish your insult is. Good for you, Murican scum! ehehehe
the biggest energy user
the biggest exporter
the biggest consumer market
the biggest financial market
and tbe biggest con?
Glad I stocked up on Yuans in Brussels last week.
You know, they're pegged to the Dollar.
It will take only ONE DAY to peg it to Gold.
Think
I trade for 'em every chance I get.
I hope you have a short/long play against the Ruble - you are playing both Putin's and Chinas political moves
Well, you are dumb Murican moron. Of course you have no idea what you are talking about; you are only some mindless scum after all! ehehehe
China does not have any where near enough gold to peg the Yuan(renminbi) to gold.
In order to do that the yuan would have to be worth tenths of cents or gold worth tens of thousands of dollars.
That peg to gold thing is a US hating dream thing and not going to happen.
You Murican scum have no gold whatsoever, retardus! China has plenty of gold, over 15.000 tons at least; and Silk Road project will be done having gold mining operations in mind -- so there will be plenty of gold available afterwards. There is plenty of gold and silver available for that purpose in the world, Murican parasite. But you Western trash on the other hand have none, Murican scum! No gold for Murican scum, which means you Western trash finally won't be setting rules anymore, Muricano scum! World has had enough of your Western parasitism, transgressions and thievery, Murican parasite! So good riddance, scum! ehehehehe
I diversified by opening a yuan/rmb denominated savings account w/ Bank of China on Madison Avenue in NYNY.
I deposit in USD, then convert to Yuan/rmb, and wait for the bloodbath when they remove the peg..
The account is FDIC insured. The Yuan/rmd gained, USD lost, almost 10% in arbitrage since I opened the account in 2009.