Tag Archives: currency reset

China Begins To Reset The World’s Reserve Currency System

It’s a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air.  – Grant Williams

A report released by the Nikkei Asian Review indicates that China is prepared to release a yuan-denominated oil futures contract that is convertible (backed by) physical gold.  The contract will enable China’s largest oil suppliers to settle  oil sales in yuan, rather than in dollars, and then convert the yuan into gold on exchanges in Hong Kong and Shanghai.

This is a significant step in removing the global reserve currency status of the dollar and resetting the the global economic and geopolitical “landscape.”  Over the past several years, China has quietly established yuan-based currency exchange facilities, which has set up the ability to implement this new non-dollar trade settlement financial instrument. According to the Brookings Institute, 34 Central Banks around the world have signed bilateral local currency swap agreements with the PBoC as of of the end of September 2016, including the major oil-producing countries.  With this new contract, China’s largest oil suppliers will now be able to transact directly with China, and other oil importing countries, using yuan which are directly convertible into gold to settle the trade.

As Alasdair Macleod asserts, “It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either.”

Since 1973, OPEC oil has been quoted and traded using to U.S. dollars, otherwise known as “petrodollars.”  The “recycling” of petrodollars into U.S. Treasuries has been the life-blood of the U.S. economic and political system.  In addition to reducing a major source of funding for the the U.S. Government’s enormous deficit spending, the introduction of a gold-backed yuan oil futures contract is an important step toward removing the dollar as the world’s reserve currency. More significantly it reintroduces gold into the global monetary system.

While the new gold-backed “petroyuan” will allow oil producers to sell oil for gold rather than Treasuries. Furthermore, it reduces the ability of the U.S. Government to impose its will on the rest of the world.  It’s a strategic step toward not only ridding the world of its dependence on dollars, but also of reducing the ability of the U.S. to exert global economic and financially tyranny.   I would also argue that it’s one of the primary reasons behind the inability of the western Central Banks to drive the price of gold lower recently.

SoT – Eric Dubin: The New World Order, Economic Collapse and Jade Helm 15

The United States is in the business of conducting war and China and Russia are in the business of conducting business.  – Rory Hall, The Daily Coin

It doesn’t take a genius to figure out that the United States and the west are on the fast-track to collapse.  But where do Russia and China fit into this picture?  A lot of analysts assert that the New World Order will involve the western elitists working in cooperation with Russian and Chinese elitists and the collapse of the west has been planned all along.

I don’t think the facts speak to that thesis.  The desires of the political elites, and the neocons in particular, are pretty explicit:  these people are not interested in cooperation with Russia…  – Eric Dubin, The News Doctors

There’s merits to both side of the debate.  But if Russia and China are “joined at the hip” and the people in control of the Government in those two countries are not in bed with the United States/west, how will the relationship between Russia and China play out as economic dominance shifts from the west to the east?

A lot of alternative media analysts are expecting the U.S. economic/financial system to go off the cliff this year.  Is the housing market really “on the road to recovery” as the financial media, Wall Street and DC would have us believe?

Rory and I hosted Eric Dubin, with brief a cameo by SGT Report, to discuss and debate the New World Order, the prospects for a big collapse this year in the United States and Jade Helm 15.  Eric has done a lot of research on the factors that are about to affect the gold market and he lays out his timeframe for when he thinks an upward explosion in the price of gold will occur.

I think these kind of things will reduce the purchasing power of the dollar and put a bid in the market under gold. I think part of that cycle will start being priced into the [gold] market this summer…we will see a bid put under the gold market and it might have already started this week…in the final analysis I think we’ll have reset of the price of gold  – Eric Dubin

This is a long podcast, we recommend listening in stages.  But we think you’ll find the discussion contains a lot of new, provocative and thought-provoking material: