Petro-Yuan Looms - How China Will Shake Up The Oil Futures Market

The "huge story",as Graticule's Adam Levinson called it, will, it appears, be a "wake up call" for the West that seems to happily be ignoring this potential bombshell that is China's looming launch of domestic oil futures trading.

Additionally, Levison warns Washington that besides serving as a hedging tool for Chinese companies, the contract will aid a broader Chinese government agenda of increasing the use of the yuan in trade settlement... and thus the acceleration of de-dollarization and the rise of the Petro-Yuan.

“I don’t think there’s any doubt we’re going to see use of the renminbi in reserves go up substantially”

China has been planning this for a number of years and given rising tensions, now seems like a good time for China to flex a little.

The Shanghai International Energy Exchange, a unit of Shanghai Futures Exchange, will be known by the acronym INE and will allow Chinese buyers to lock in oil prices and pay in local currency. Also, foreign traders will be allowed to invest -- a first for China’s commodities markets -- because the exchange is registered in Shanghai’s free trade zone. Even  Bloomberg admits there are implications for the U.S. dollar’s well-established role as the global currency of the oil market, as Sungwoo Park sums up some of the key questions...

1. When will trading begin?

According to the Shanghai-based news portal Jiemian, which cited an unidentified person from a futures company, trading is expected to start Jan. 18. Multiple rounds of testing have been carried out and all listing requirements met. The State Council, China’s cabinet, was said to have given its approval in December, one of the final regulatory hurdles. The push for oil futures gained impetus in 2017 when China surpassed the U.S. as the world’s biggest crude importer.

 

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2. Why is this important for China?

Futures trading would wrest some control over pricing from the main international benchmarks, which are based on dollars. Denominating oil contracts in yuan would promote the use of China’s currency in global trade, one of the country’s key long-term goals. And China would benefit from having a benchmark that reflects the grades of oil that are mostly consumed by local refineries and differ from those underpinning Western contracts.

3. How do oil futures work?

Futures contracts fix prices today for delivery at a later date. Consumers use them to protect against higher prices down the line; speculators use them to bet on where prices are headed. In 2017, oil futures contracts in New York and London outstripped physical trading by a factor of 23. Crude oil is among the most actively traded commodities, with two key benchmarks: West Texas Intermediate, or WTI, which trades on the New York Mercantile Exchange, and Brent crude, which trades on ICE Futures Europe in London.

4. Why didn’t China begin trading futures until now?

Lower crude prices have played a part. Chinese oil futures were proposed in 2012 following spikes above $100 a barrel, but prices in 2017 have averaged little more than $50. There’s also concern over volatility. China introduced domestic crude futures in 1993, only to stop a year later because of volatility. In recent years, it repeatedly delayed its new contract amid turmoil in equities and financial markets. Such destabilizing moves have often prompted China’ government to intervene in markets in one way or another.

5. What’s China’s track record in commodities?

Nickel was the last major commodity to be listed there in 2015; within six weeks, trading in Shanghai surpassed benchmark futures on the London Metal Exchange, or LME. In China, speculators play a far greater role, boosting trading volumes but making markets susceptible to volatility. In early 2016, the then-head of the LME said it was possible some Chinese traders did not even know what they were trading as investors piled into everything from steel reinforcement bars to iron ore. Steep price rises relented when China intervened with tighter trading rules, higher fees and shorter trading hours.

6. Will foreigners buy Chinese oil futures?

That remains to be seen. Overseas oil producers and traders would need to swallow not just China’s penchant for occasional market interventions but also its capital controls. Restrictions on moving money in and out of the country have been tightened in the past two years after a shock devaluation of the yuan in 2015 prompted a surge in money leaving the mainland. Similar hurdles have kept foreign investors as bit players in China’s giant stock and bond markets.

7. Could the yuan challenge the dollar’s dominance in oil?

Not any time soon, since paying for oil in dollars is an entrenched practice, according to some analysts. Shady Shaher, head of macro strategy at Dubai-based lender Emirates NBD PJSC, says it makes sense in the long run to look at transactions in yuan because China is a key market, but it will take years. Bloomberg Gadfly columnist David Fickling argues that China doesn’t have “nearly the influence in the oil market needed to carry out such a coup.” On the other hand, paying in yuan for oil could become part of President Xi Jinping’s "One Belt, One Road" initiative to develop ties across Eurasia, including the Middle East. Chinese participation in Saudi Aramco’s planned initial public offering could help sway Saudi opinion toward accepting yuan, which is used in only about 2 percent of global payments.

With regards that final point from Bloomberg, Pepe Escobar disagrees, recently concluding, the era of the petro-yuan is at hand...

Intractable questions referring to the US dollar as top reserve currency have been discussed at the highest levels of JP Morgan for at least five years now. There cannot be a more politically charged dossier. The NSS duly sidestepped it.

The current state of play is still all about the petrodollar system; since last year what used to be a key, “secret” informal deal between the US and the House of Saud is firmly in the public domain.

Even warriors in the Hindu Kush may now be aware of how oil and virtually all commodities must be traded in US dollars, and how these petrodollars are recycled into US Treasuries. Through this mechanism Washington has accumulated an astonishing $20 trillion in debt – and counting.

Vast populations all across MENA (Middle East-Northern Africa) also learned what happened when Iraq’s Saddam Hussein decided to sell oil in euros, or when Muammar Gaddafi planned to issue a pan-African gold dinar.

But now it’s China who’s entering the fray, following on plans set up way back in 2012. And the name of the game is oil-futures trading priced in yuan, with the yuan fully convertible into gold on the Shanghai and Hong Kong foreign exchange markets.

The Shanghai Futures Exchange and its subsidiary, the Shanghai International Energy Exchange (INE) have already run four production environment tests for crude oil futures. Operations were supposed to start at the end of 2017; but even if they start sometime in early 2018 the fundamentals are clear; this triple win (oil/yuan/gold) completely bypasses the US dollar.

The era of the petro-yuan is at hand.

Of course there are questions on how Beijing will technically manage to set up a rival mark to Brent and WTI, or whether China’s capital controls will influence it. Beijing has been quite discreet on the triple win; the petro-yuan was not even mentioned in National Development and Reform Commission documents following the 19th CCP Congress last October.

What’s certain is that the BRICS supported the petro-yuan move at their summit in Xiamen, as diplomats confirmed to Asia Times. Venezuela is also on board. It’s crucial to remember that Russia is number two and Venezuela is number seven among the world’s Top Ten oil producers. Considering the pull of China’s economy, they may soon be joined by other producers.

Yao Wei, chief China economist at Societe Generale in Paris, goes straight to the point, remarking how “this contract has the potential to greatly help China’s push for yuan internationalization.”

It ain’t over till the fat (golden) lady sings. When the beginning of the end of the petrodollar system – established by Kissinger in tandem with the House of Saud way back in 1974 – becomes a fact on the ground, all eyes will be focused on the NSS counterpunch.

Comments

yogibear Jan 3, 2018 10:56 PM Permalink

ollar is already falling. The Federal Reserve has no intentions on saving it.

Just watch as it continues it's steady fall.

In the meantime inflation continues to ramp.

JIMSJOE2 Caloot Jan 4, 2018 2:46 AM Permalink

First of all China has capital controls so profits will not be allowed to leave. So why would anyone trade this market? The fact is they will not. Second of all like all futures markets they are basically used to hedge as this is not a physical crude market. Chinese oil firms will use this market to have banks buy hedges for them using put options, (going short), in case prices fall. Speculators will use call options betting prices actually rise. No oil producing countries are lining up to buy hedges as they already use other markets to hedge especially in the Middle East and also again the fact that profits cannot be removed from China's border. This will have no effect whatsoever on the dollar.

     Now it has been all over the net that China is going to allow profits on the exchange to be convertible to gold. Folks this is fake news. Not only has the officials on the exchange denied this but if you go to the Shanghai Int. Energy Exchange and read the terms and conditions to trade they are simply no provisions to convert yuan to gold. To get more foreigners to participate as they need more speculators to take the other side of the trade, the exchange will allow foreign currencies to be used as margin requirements.

     Unfortunately this is what a large part of the alt media has become promoting their own narrative. Most of this is being put out by those who market metals to consumers using fear porn like the dollar and Dow will collapse so hurry up and buy metals. For a number of years not they have been promoting a dollar and Dow collapse, but a Comex default and bankruptcy, credit freezes, supply chain disruptions, all markets are manipulated and of course "any day" metals are going to the moon. All nonsense.

     When prices fall they always claim it is the "cartel" suppressing prices to instill dollar confidence. The problems with this are many. For one since 2011 large amounts of capital have been flowing out of Europe as it has been collapsing and has been moving into dollars and US equities which we have been seeing. Starting in August of 2016 there was so much capital flowing out of Europe being converted from euros to dollars that by the end of that year there were dollar shortages in foreign markets. So you have to ask yourself why would some "cartel" suppress gold to instill dollar confidence when it had already been rising? The fact is no one would.

     If you follow markets and the global macroeconomics events outside US borders the FED has in fact went into panic mode and has been attempting to weaken the dollar and to slow down the capital flight out of Europe from flowing into dollars and dollar based assets. They first has a BOA analyst claim gold was ready to take off. Then thy marched out the head of the CME claiming gold should be at $5000. They they had Goldman claim gold is a currency and your best hedge with its head claiming all markets are overvalued. Then Rickards has been popping up everywhere claiming the dollar is doomed, we are going to war and gold is going to $10,000 to $40,000. Never mind that fact even at the $10,000 gas would be at $12 and everything shipped would skyrocket including food, medicine and the essentials making these unaffordable to most. This would collapse the economy and the US, state and local governments as tax revenues fall off a cliff. Then they of course planted the fake news in the NIkkei Review claiming China was to allow profits in the yuan with the crude futures contract to be convertible to gold. All nonsense! Folks are we seeing a pattern here yet? This is all about weakening the dollar.

     The FED knows that Europe is collapsing and in 2018 capital flight will accelerate out and move again into dollars and dollar based assets creating again dollar strength and move US equities higher. This will hurt US exporters especially commodity exporters and wall street banks who have lent trillions in dollar denominated loans to foreign entities and these are extremely difficult to service with a strong dollar.

     Armstrong Economics computer models track both domestic and international capital flows. They have also a model called the ECM, (Economic Confidence Models), and in the last weekend in November of this year turned down. The next downturn in 2018.89 which is when the shit hits the fan in Europe.

     Buckle up folks as we are getting ready for a ride of a lifetime!

    

In reply to by Caloot

Caloot JIMSJOE2 Jan 4, 2018 4:14 AM Permalink

Couple thoughts...

Seems to me the only thing holding back the effects of monetary inflation , in the form of price inflation, is the payment by the fed to banks to hold their xcess reserves.  A cash shortage in Europe  is irrelevant when there are upwards of 2 trillion sitting in fed reserves.  There is no way for the fed to remove the liquidity without bankrupting the treasury, and if the interest requirements were to increase... 12 billion or so in payments this  year... and the fed loses control, the money will flow into the credit system.     If that's the case, the dollar will plummet.     

Who said hammering the gold price was the fed?   There are many potential actors...

Another thought... I just can't agree that their is no manipulation.   Take the last drop from above 1300 to 1250...  People who arent manipulating intend for maximum profit,not dumping billions of dollars in gold at once driving the price lower.   Price climbs steady then at some weird time in the morning, boom.  Down it goes.   Explain that price movement, and it's repetition.

Another... Accumulation of physical by Asian central banks.  How much... Don't know.  Top secret info.. Why?.

If your correct about Europe, how will the ecb respond...?   How will the US respond?      They will print.  what would happen to yuan , and really Chinese money spenders if during a western inflation, the yuan WAS anchored to gold.   Simultaneous inflation by central banks is why no one currency breaks.    I'd wager that break from the race to devalue Would break the dollar.

And..   So what about exports... That's just fed propoganda gobbly gook.   The purchasing power of the population would rise exponentially, and there would be no need to export to broke westerners paying in fiat paper. Instead a pool of 1.2 billion people, not currently engaged in the Chinese economy, would become domestic consumers.

Seems like there are a number of reasons for some form of gold backing regardless of this being fake news.

In reply to by JIMSJOE2

Yen Cross Jan 3, 2018 11:11 PM Permalink

    The U.S. markets are too restrictive.   Bring back CFD's. 

   How are lower leverage and financial investment restrictions bad for the $usd if everyone else is taking advantage of the antiquated CFTC requirements?

  Give the retail guys a fair playing field. WE NEVER got bailed out!!!  Fuk wads

pitz Jan 3, 2018 11:14 PM Permalink

Petrodollar theory is just conspiracy theory crap.  Commodities are routinely traded in all sorts of currencies.  The currency of the transaction doesn't matter and is irrelevant.  

MK ULTRA Alpha peddling-fiction Jan 4, 2018 12:22 AM Permalink

Mr. "anti-American" Finland controlled by the CIA with microwaves, the US would be far better off without being the world reserve currency. The US CB has a difficult time providing a stable currency. The flow of hot money in and out of the US markets is one reason, trillions flowing in and out everyday.

Up and down valuations wipe out many firms and cause loss of employment. It means the US has a more difficult time exporting goods and services because the Fed, the US CB can not control the value of the dollar. The Fed's actions take 18 months to impact a change in value, it is not like people think, someone in the Fed is pushing buttons and magic happens. Every move the ECB European Central Bank takes must be monitored, it used to be a game of Russian Roullette, that's a game in which the chamber of a pistol is spun, place it to the head pull the trigger, survive, pass pistol to next player, you should try it sometime.  This is the game the US CB would play with the ECB. This was always a subject in US business journals ie BusinessWeek.

Those days are over because the Chinese CB makes it infinitely harder to provide dollar stability for the US economy. It's impossible. So it will be good if US dollars are not floating all over the world causing currency stability disruptions. Many competitive US firms, competitive in the global economy lose and lose and lose because of fluctuations in the value of the dollar.

The Chinese CB has it easy, the Chinese export with it's mercantile economic model to the US, we pay in US dollars, then China buys oil, raw materials and grain with our dollar. Chinese currency is not a freely traded floating currency, but the US dollar is. When Chinese currency is floated, it will become an internationally recognized IOU, payment for Chinese products will be in Chinese currency, not the valuable US dollar, China will not be able to print to keep a massive state sector running, a debt ridden banking system humming, the Chinese will face REAL GLOBAL COMPETITION. In other words, the Chinese economy is PROTECTED FROM GLOBAL COMPETITION. And the only reason China's economy is protected is because of the US dollar world reserve currency.

In reply to by peddling-fiction

MK ULTRA Alpha Consuelo Jan 4, 2018 2:02 AM Permalink

LOL another ignorant bitter whining anti-America, you're lower IQ is apparent, I stopped reading your post and now you're OFFENDED by me stating the obvious.

Typical anti-American dishes it out but when given back resorts to drive by sound bite low IQ comments with zero intellect and depth.

There's an Argentinian anti-America, he spews his crap all the time and everything wrong in the world is caused by the CIA, paranoid delusional is the diagnosis. He rants about the homosexuals in the US, but when I say Argentina has a large homosexual population too, he foams at the mouth like a mad dog stating there is no immorality and no homosexuals in Argentina. LOL, the capitol of Argentina is trying to be the center of all homosexual activity on the planet. Argentina hands out visas to any homosexuals planning same sex marriage, what happened, massive numbers of homosexuals are flocking to Buenos Aires to get married and then to become citizens of Argentina. So if you're a homosexual, it's easier to get into Argentina for citizenship purposes than a straight person. Opposite of what the anti-American history professor states.

Then Argentina government isn't corrupt he says, but the US is and the CIA is controlling everything, just like Peddling Fiction CNN states the CIA controls his mind with microwaves, even though he has absolutely no value to the CIA or America, he says he's in Finland and the CIA still got him there. LOL back to anti-American ID AURORA BOREALIS Argentinian, his country is one of the most corrupt and I've read private US citizens property has been stolen in the provinces etc. not true he says but many expats say Argentina is corrupt, much more so than the USA.

I can go on, but the anti-American foreigners will twist reality, lie and give the most delusional reasons to justify their claim of being an anti-American.

The CIA is an incompetent US agency, which fails at just about everything, we know it, but to hear the anti-American foreigner tell it, the CIA is like supermen with special powers over them. LOL

In reply to by Consuelo

JIMSJOE2 peddling-fiction Jan 4, 2018 3:14 AM Permalink

The petrodollar has become meaningless in the Middle East and why Congress threw the Saudis under the bus. The whole purpose was to flood the international system with dollars and treasuries and this has been firmly accomplished decades ago. Most people do not understand that countries do not like to hold large amounts of foreign currencies as they pay no interest and are forced to buy treasuries as this is the second most liquid market on the planet behind currencies. China is at least 10 years from having a large and liquid enough bond market to compete and Europe has no federalized bonds backed by all member countries which leaves treasuries are the only game in town.

      There will be no major country going to a gold backed currency and the reasons are many. For one the physical gold market is simply to small. The US has alone has over $52 trillion in liquidity in and outside its borders and the gold claimed at today's prices is only in the billions. Compare billions to trillions makes gold meaningless.

      In addition under this system a country must always buy gold to back the new liquidity an economy needs to grow and to restock what went out the gold window. At today's prices no country can afford this. The US was forced off the system when gold was only at $35 and the price was fixed. A much higher price for gold actually collapses this type of system as this makes gold more unaffordable.

      This is fantasy land nonsense!

In reply to by peddling-fiction

MK ULTRA Alpha JIMSJOE2 Jan 4, 2018 3:30 AM Permalink

"For one the physical gold market is simply to small. The US has alone has over $52 trillion in liquidity in and outside its borders and the gold claimed at today's prices is only in the billions. Compare billions to trillions makes gold meaningless" This is what I was trying to explain, China would be drained of gold over night with a gold backed currency. The entire Chinese game plan is to create a viable system of trade for Russian oil, that is it.

China is years away from being able to float their currency, right now, they peg to the dollar.

Many of the posters don't care if their comments are delusional, because it is a part of their anti-American psychosis. They twist reality, lie and offended when the obvious is used to counter their insanity. We have posters who claim the CIA is controlling their minds with microwaves, not knowing microwaves will fry their minds.

In reply to by JIMSJOE2

PGR88 Jan 3, 2018 11:22 PM Permalink

China still has a controlled capital account and a communist government that rules by fiat. The US Dollar and US Government aren't great either at protecting your money, but China and the CCP are far worse. Hold Yuan at your own risk.

MK ULTRA Alpha PGR88 Jan 4, 2018 12:08 AM Permalink

The US has a lot of problems, but the Chinese can't be trusted. Xi recently had to start an anti-corruption campaign. Executions were the order of the day, now currency flow out of China is being controlled to the point, the only way to get money out is, Bitcoin or one of the others, and exporting a product and keeping the proceeds from the sale offshore. And I know of Asians who have done this.

Chinese CB prints to maintain four bubbles on top of each other, every time one bubble begins to collapse, the Chinese CB must print to keep it up. The Chinese banking system is riddled with non-performing debt and the state owned sector is fed with capital just to maintain employment. No record of the flow of capital and no accountability of capital productivity in the state sector.

And Pepe Escobar who I always thought was a drug dealer, now I know he is just a two bit anti-American always looking for some reason to destroy the US. Any analysis by him is suspect and loaded with slanted bias conclusions for the purpose of supporting his anti-American OBSESSION.

The Chinese invest not knowing anything about the investment is an understatement, it is gambling, worse than any other equity, bond or commodity market in the world. .

And last and most important, this is what anti-Americans can't stand, if anything happens to the US China trade, China will be the loser, not the US. China must feed 1.4 billion people. 18% of Chinese exports are to the US, a loss of 18% exports will not be made up like the anti-American whine it will. It will cause a total and undeniable collapse of the Chinese economy. It would force the sell off of US debt which will NOT hurt the US, it's just one trillion in US treasuries. And they hate this one too, China needs America more than America needs China. The end of the US China trade means starvation and civil war because there will be no Chinese Dream and no way to feed all of their people, the Chinese have been promised a better life if they just keep suffering, that is Xi's message. It's so crooked, Chinese dissent over the government is greater than even the anti-American Americans and anti-American foreigners combined, it was so bad, the CCP Chinese Communist Party had a massive building campaign to provide better housing, after the cities were built, in order to live in one of the new cities, one had to prove loyalty to the communist party, so each city has a rank and to get in, you must have a rank too. So huge new cities are sparsely populated. How would you like to be told to keep you suffering at the grind, that we're building cities for you, only to find out you're restricted because of your low rank.

The Chinese and the Chinese banking system can NOT be trusted, they do not publish accurate data on anything and China's mercantile economy is a shell game because it is powered on the flow of free easy money unaccountable money. Zombie companies are all over the place ready to fold, from the state owned sector to the private sector. And since Xi is cracking down on westerners and western investors and companies, China will soon be impossible to operate.

The game plan is war and China is preparing, we're in the early phase of war through economics.

In reply to by PGR88

MK ULTRA Alpha trulz4lulz Jan 4, 2018 4:32 AM Permalink

LOL now an anti-American foreigner is stating I must be paid to write the obvious by " The Joint Threat Research Intelligence Group (JTRIG) is a unit of the Government Communications Headquarters (GCHQ), the British intelligence agency." Thanks but no thanks, no one is paying me to write. I'm programmed by the CIA to do this. I'm one of the children of the CIA, and I have a CIA modified brain.

But I did work with UK Special Air Services SAS once, maybe that counts? They were exception soldiers, remarkable would be a better description. 

In reply to by trulz4lulz

Savvy Jan 3, 2018 11:22 PM Permalink

So the end game is finally to be staged, the one that started on 9/11. All the minor players (significant exporters but non-CB) have been given something else to think about and will not be participants. So who gets to be Ferdinand? And who will they choose to assassinate the Arch-Duke in order to attack Iran? NK is irrelevant, a useful bogeyman. Russia only needs to be denied a market for resources she doesn't need to be attacked. Net crude importer China will be hobbled in every way without energy.

But then Russia has a huge market in China and have just doubled exports. China has some $2 trillion in US notes. Perhaps why it took so long to get the petro -yuan started, they were getting rid of US$.

It'll be sad for the EU when NATO cuts off access to Russian LNG via Ukraine and hands the supply lines to Qatar and KSA.

MK ULTRA Alpha Savvy Jan 4, 2018 12:40 AM Permalink

China holds less than a trillion US treasuries, there has been fear porn stories of Chinese selling some of this off and they did, but a trillion dollar sell off, would be handled by the Fed in Open Market Operations. Considering trillions flow in and out of NYC daily, the Fed will have no problem soaking it up.

The end of the US China trade means 300 million Chinese dead from starvation, civil war and external wars to distract the masses to save the Chinese Communist Party from being destroyed, a vent for anger over economic failure is the planned Taiwan invasion. But one million dead Chinese soldiers in Taiwan Strait cracks the foundation of the CCP.

In reply to by Savvy

BobEore Jan 3, 2018 11:31 PM Permalink

petro-yuan.... yawn

gold buying by .....[yur fave "anti-central banker" central bank goes here] at record pace!............. yabba yabba

us $ collapse now!  //// snooze button pls.

 

fake news agitprop perps put outta business - permanently! Yowser!

now that's a story!

 

 

 

 

pestulonpi Jan 4, 2018 12:00 AM Permalink

David Fickling argues that China doesn’t have “nearly the influence in the oil market needed to carry out such a coup.”

No, but if Russia is organizing a competitor to OPEC via agreements to handle crude from Venezuela, Mexico and yes even SA (especially in light of ARAMCO/Sovereign budget issues), then the RU-CN combo has plenty of influence.

MK ULTRA Alpha androkles Jan 4, 2018 12:52 AM Permalink

LOL, that's 65 years, Pepe Escobar will be dead by then, wasted his entire life wound so tight about America and his obsession with destroying America, it caused him to waste his entire life on a meaningless pursuit and he will die knowing he failed. LOL can't make this up.

For Pepe Escobar, What do Americans do for fun? THEY RULE THE WORLD!!!

In reply to by androkles

MK ULTRA Alpha OverTheHedge Jan 4, 2018 3:13 AM Permalink

Good one, but the US is a large and great country with a population of over 325 million adding undocumented immigrates around 340 million. In a country this size, there are people with a size larger than anyone on the planet. It is a new life form. However, the US has so many people, the talent so great, we send people to the Olympics who win.

Too many anti-American Americans and anti-American foreigners on this board are offended too easy, their bubble popped to easy, this suggest many here have serious mental issues beyond their anti-Americanism. It's called Snow Flake syndrome.

In reply to by OverTheHedge

veritas semper… Jan 4, 2018 2:16 AM Permalink

Well,I guess that if it's not such a big deal and the petro yuan backed by GOLD is not a real danger for the mighty American economy(as the patriotic pro America Americans say,as opposed to the Anti American Americans and Anti American Non Americans....phew,my head is spinning now),America has nothing to worry about. Why does it try so hard to prevent all this,then? Why does it threaten each country that drops the petro-f*cking-dollar? Why does it arranges for color revolutions to stop this? Why does it uses sanctions for all these defiant countries?

Why does not  let it be and enjoy the view from its high ground,looking down on the Russians and Chinese and Iranians who can not possible be a real competition for the exceptional and number 1 nation!

The $ is so powerful,its economy so great,it is obvious that  these poor countries can not possibly be a threat to its economy and its number 1 status in the world.

Isn't it? Isn't it?

Let's wait and see how great it really is .It's not going to be too long now

MK ULTRA Alpha veritas semper… Jan 4, 2018 4:17 AM Permalink

Many of the scenarios you describe are treaty obligations. A treaty is a lawful act we must follow because it's a law made by congress.

Iraq, Syria and Iran wars are because of Israel, the Greater Israel plan, we were manipulated by Jewish politics in the USA, to spill blood in the Middle East for Israel. It's called Balkanization.

Unfortunately, and I will apologize to you, we had serious criminal elements running the country, these criminals invaded Iraq for money using Israel as the moral cover for their mafia group. The Mafia group is the Bush family, hard core criminals to the core. So the Russian Jews in America worked with criminals to invade Iraq, the criminals believed they would secure the Iraqi oil and secure Israel.

Libya, was Clinton proving to the Israel lobby she would kill for them so they would make her president, she released cell phone footage of her saying, we came, we saw, he died. It was all for Israel, it was decided at a Bilderberg meeting, Sarkosis of France was extreme pro-Israel, so the Bilderberg group used NATO to bomb Libya and incited tribes against the government.

Syria war was Qatar, Saudi, Israel, Turkey and the US conspiring and funding to over throw Assad to block the Iranian gas pipeline to Europe and use a Qatar pipeline from Qatar. This was easy to see from the state department actions. The state department was loaded with Jews during this time, it was the Clinton state department and she loaded it with Zionist Russian Jews. The man handling the shut down of the Iranian pipeline, and the Russian European pipeline through Ukraine etc. was a Jew who gave comments to the press etc which were lies and it was easy to see for those who keep up with everything.

We participated in the genocide of over 500,000 Syrian Christians out of a population of 2 million Syrian Christians. A high percentage of Assad's army are Syrian Christians fighting ISIS. Around 800,000 people have been killed in Syria.

Obama/Clinton called their strategy "smart war". it wasn't smart and it has disrupted the entire world.

Ukraine is a complex story and again, a particular kind of Jew was behind it, there are over 124 kinds of Jews in Israel. The kind of Jew which pushed through political means and infiltration of the US government were the Russian Jews. They came to the US after the break up of the Soviet Union. 20% of the Israeli population is Russian Jews, the other large number of Russian Jews is in NYC, these are hard core Orthodox Jews. These Russian Jews are highly skilled at war, espionage, and mind warfare because these were the mind controllers, soldiers, and spies of the Soviet Union. You should consider these Russian Jews opposed to many generations of American Jews to be fifth column. A good example is, the Russian Jews Victoria Nuland and her husband Kagan, Kagan was a manipulator after 9/11 for the Iraq invasion, and Nuland was on the inside with Hillary Clinton at state. It's a long story, but essential Mossad director Dagan, a Russian Jew planned and implemented the 9/11 event to push the US into war with Iraq. Even Bill Clinton, who can't talk about this or he too would have an accident stated in a visit to Israel, the main reason there can be no peace in the Middle East is because of the Russian Jews in Israel. Again, 20% of the population is made up of Russian Jews.

So much of what's happening would have never happened in our past, we would have never been this brazen. Perhaps, this will sway you from being an anti-American. I started fighting this battle to wake everyone up and I worked hard starting around 2003 and went into nuclear over drive in 2005. I've written extensively on the net for years and did many other things to get where we are today. More Americans know the truth than ever before in this nation. I'm CIA.

In reply to by veritas semper…

Diabo MK ULTRA Alpha Jan 4, 2018 11:40 AM Permalink

By the way everyone outside Ziomerica is anti American including a lot of Americans who are awake.
The crap spewing out of you keyboard is entertaining.
As for Russian Jews in Israel, they are Jews but they are not real Russians just like the Jews who were behind the Bolshevik revolution.Before,during and after WW2 Prominent Jews were shouting for Jews to leave Europe and buy land in Palestine, they knew of the plan to create the state of Israel through WW2 with the help of the Jew, Hitler and his Jewish officers.
I'm just waiting for you to tell us, the Orsini and Medici families are also Russian, its all the pesky Russians fault.
The fact is, the Jewish,American,Russian people, all of us basically are being used, manipulated and controlled by this corrupt,genocidal,pedo Cabal.
America isn't Great, its a cesspool run by corrupt genocidal pedo criminals with brain dead fast food  Americans who think Belgium is in Australia and these criminals use the Reserve status, economic power,bribes and blackmail to bully and ruin people/countries around the world who don't follow their agenda.The only thing Great about Ziomerica is the size of its waist.
I could go on about the crap in your posts but the sewers would overflow and the stink would be unbearable.

Quoting an American tourist  in Edinburgh Scotland,  Why did they build the castle next to the railway station, you couldn't make this sh.t up.

In reply to by MK ULTRA Alpha