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

[mamboni]

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

Kenneth Schortgen Jr.
Wed, 12 Sep 2012 22:00 CDT

http://www.jsmineset.com/wp-content/uploads/2012/09/clip_image0015.jpg (http://www.sott.net/image/image/s5/114331/full/china_oilsource.jpg)
© TIME/Facts Global Energy

On Sept. 11, Pastor Lindsey Williams, former minister to the global oil companies during the building of the Alaskan pipeline, announced the most significant event to affect the U.S. dollar since its inception as a currency. For the first time since the 1970′s, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency.

Comment: Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."

"On Thursday, Sept. 6… just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar. – Interview with Natty Bumpo on the Just Measures Radio network, Sept. 11
This announcement by China is one of the most significant sea changes in the global economic and monetary systems, but was barely reported on due to its announcement taking place during the Democratic convention last week. The ramifications of this new action are vast, and could very well be the catalyst that brings down the dollar as the global reserve currency, and change the entire landscape of how the world purchases energy.

Ironically, since Sept. 6, the U.S. dollar has fallen from 81.467 on the index to today’s price of 79.73. While analysts will focus on actions taking place in the Eurozone, and expected easing signals from the Federal Reserve on Thursday regarding the fall of the dollar, it is not coincidence that the dollar began to lose strength on the very day of China’s announcement.

http://www.examiner.com/article/dollar-no-longer-primary-oil-currency-as-china-begins-to-sell-oil-using-yuan

[mick silver]

so , now we start one more war over oil . we cant let anyone used there paper for oil .

[Ponce]

The petro dollar is now the petro nothing.......China economy is based of labor- force while our is in export-nothing.

[Sparky]

...
"On Thursday, Sept. 6… just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar.
...
And face the wrath of the country which spends more money on military than the rest of the world combined.

Most OPEC countries voluntarily trade in Petro Dollars because of the promise of military protection. Why would this change, even with China making this offer?

So, yes, it could happen eventually. But what country will be first to step up and put a target on their back? Circumstances would have to change such that it would be worth the risk for the participating countries. I agree that if that were to happen, it would be a game changer.

[mamboni]

The petro dollar is now the petro nothing.......China economy is based of labor- force while our is in export-nothing.

How's that quote go? "If you don't export it, you don't make it."

[Neuro]

The petro dollar is now the petro nothing.......China economy is based of labor- force while our is in export-nothing.
I think the USD is valued according to US imports! ;D

[mamboni]

I think the USD is valued according to US imports! ;D

No joke! The talking head maroons on the MSM actually spout the line: "The world needs America because we consume their products." Couple that with Cheney's "Deficits don't matter." I'll bet Cheney never heard of Minsky.

[JDRock]

all on schedule and according to plan......tick tick tick....

[vacuum]

I wasn't aware China sold oil.

[mick silver]

now you are

[Neuro]

I wasn't aware China sold oil.
I think they figured they can make a good profit buying cheap Iranian Oil, that no Western Countries can't buy due to sanctions, and sell it to Western Countries for a high price! It is good for everyone! Good for Iran, because they can sell their oil. It is good for China because they earn good money for little work. And it is good for Western countries because they get oil! ;D Evelyone HAPPY ;D

[gunDriller]

i wonder if the Chinese would take Scentsy merchandise in trade for oil.

i'm seeing a lot of it - selling wholesale - on Craigslist.


it's Aroma-therapy, man ! :)


plus the Chinese need a way to mask the smell, now that they have much of the world's factories.

[JDRock]

I wasn't aware China sold oil. its part of the iraq invasion, bush promised oil from the iraqi wells for china @ 2.00 bbl! its one reason there economy boomed so fast. Americans die so the nwo can play kingmaker!

[madfranks]

Why would China short circuit the dollar? Don't they have faith in the full credit of the US government? Don't they remember that Tim Geithner promised them that their dollar reserves were safe? (http://www.reuters.com/article/2009/06/01/usa-china-idUSPEK14475620090601)

[MNeagle]

its part of the iraq invasion, bush promised oil from the iraqi wells for china @ 2.00 bbl! its one reason there economy boomed so fast. Americans die so the nwo can play kingmaker!

let me guess, no expiration on the coupon either??

[mamboni]

its part of the iraq invasion, bush promised oil from the iraqi wells for china @ 2.00 bbl! its one reason there economy boomed so fast. Americans die so the nwo can play kingmaker!

JD:

If you could post a reliable source for this I would appreicate it. I would forward this to everyone I know because it would sure piss them off rotally, even the braindead sheeple me thinks.

[JDRock]

JD:

If you could post a reliable source for this I would appreicate it. I would forward this to everyone I know because it would sure piss them off rotally, even the braindead sheeple me thinks. ill try 2 find an internet source. mine was from gi's who were pissed at all the chinese oil workers who showed up and were feverishly pumping the oil out as fast as they could while they had to guard them FROM the iraqis!

[JDRock]

http://www.upi.com/Business_News/Energy-Resources/2010/05/19/Chinese-get-another-big-Iraqi-oil-deal/UPI-55561274281941/ i couldnt find the 200 thing but hows this for starters.."CONSOLIDATED ITS GRIP"!! ahh it says $ 3.00 a bbl!! wow.

[Neuro]

http://www.upi.com/Business_News/Energy-Resources/2010/05/19/Chinese-get-another-big-Iraqi-oil-deal/UPI-55561274281941/ i couldnt find the 200 thing but hows this for starters.."CONSOLIDATED ITS GRIP"!! ahh it says $ 3.00 a bbl!! wow.
As far as I remember it, the Chinese were given these wells, at a time when the US needed them to not abandon the Dollar. This was not really written in the mainstream reports, but we figured out either here or more probably at GIM, that this was pay-off for them propping up the dollar when it was becoming very weak... Certainly it is possible that these fields had production costs at around $2 per barrel, like your buddy stated!

[JDRock]

As far as I remember it, the Chinese were given these wells, at a time when the US needed them to not abandon the Dollar. This was not really written in the mainstream reports, but we figured out either here or more probably at GIM, that this was pay-off for them propping up the dollar when it was becoming very weak... Certainly it is possible that these fields had production costs at around $2 per barrel, like your buddy stated!
they didnt have to explore, drill , ship the rigging and set it up, all they had to do was just suck the wells dry and pump it into tankers of chinese registry...... yellow bastids....

[Neuro]

they didnt have to explore, drill , ship the rigging and set it up, all they had to do was just suck the wells dry and pump it into tankers of chinese registry...... yellow bastids....
Don't blame them for it, blame the bastards that gave it to them!

[JDRock]

Don't blame them for it, blame the bastards that gave it to them!
i meant the ones in the white house...yellow belly kinky haired chicken stealing cockroaches!

[mick silver]

thanks jd i have also heard this from guys i know that was there also .

[General of Darkness]

Are the slant eyed jews selling refined oil, i.e. gasoline? Because they don't export oil.

[mick silver]

this was a few years back but i cant say who but a few guys i know guarded guys looking for stuff in the ground an hills in Afghanistan

[Sparky]

Are the slant eyed jews selling refined oil, i.e. gasoline? Because they don't export oil.

They're simply offering to serve as the transaction broker between any two parties, the same as what the U.S. does now with the Petro Dollar. If the UK buys oil from Canada, it's brokered in U.S. dollars.

This really provides some insight as to why we are positioning ourselves for war with Iran. If they go for it, the war is on.

[Hypertiger]

Because bretton woods finally collapsed in 2008.

Fro m1944-2008...the US consumer was able to supply the world with the required amount of US dollars to sustain teh global trade system...but in 2008...the US consumer reached their maximum potential to be the demand of the world.

prior to and leeding up to 2008...US consumers were supplying the investment banks with massive amounts of surplus US dollars.

What was done with all those US dollars?

Well one thing that was done was to buy Euros....and the banks placed bets tha tthe euro would rise in value against the uS dollar and the nthe Euros were used to buy Spanish bonds and the banks placed bets that the bonds would be bid up and that yields would drop.

and in spain the banks all invested (bet) into real estate that was booming due to the collapse in spanish yields.

The same thing was done to Iceland and Greece....and the rest of the world.

but in 2008...the US consumer after the roaring 6 decades reached their maximum potential to supply the demand of the world for inflation.

and now the world is collapsing...

Because the supply of US dollars has been cut...China and other countries have had to resort to side trade deals outside of the Bretton woods global trade system.

The war on teh axis of evil? that is just the list of countries that are being cut off from teh supply of US dollars as the USA collapses...

Of course you all have been brainwashed to think something different is going on.

Without the US consumer...the EU caves and so does China...and that is what is happening.

The EU and China are net oil importers...

China imports 5 million barrels a day.

The EU imports 8.6 million barrels a day.

North America imports 7 million barrels a day.

But has the largest reserves of oil and coal on Earth.

The global rig count has 64% of drilling operations taking place in North America.

Without the demand from North America...The EU and China's ability to derive the required income to sustain their economies ceases.

as the USA collapses...the rest of the world will collapse.

China is not a rising power....they are a slave that is being cut off from their food source and is now beginning to starve.

The ghost cities in china were built with food stamp money...the source of the US dollars china used to build the Ghost cities exists in the USA.

massive US government and private defict spending has powered the inflation of the world.

sorry...and now that it's ending...all the economic models of all the external economic zones are imploding.

because they are all based on capitalizing upon the 1944 bretton woods global trade system...that is now collapsing.

[mamboni]

All of our cherished delusions are being shattered?

[mamboni]

Jeez, the legs are being knocked out from under the dollar each and every day it seems. We are screwed in the coming days:
3717

[General of Darkness]

Jeez, the legs are being knocked out from under the dollar each and every day it seems. We are screwed in the coming days:
3717


Oh shit, that's basically an act of war. I keep asking people. ARE YOUR PREPS IN ORDER?

[mamboni]

Oh shit, that's basically an act of war. I keep asking people. ARE YOUR PREPS IN ORDER?

Ha, Taiwan is supposedly a strategic ally under America's nuclear umbrella. To think we were willing to go to war with China over Taiwan. This most recent event is a sad testimony to the US's crumbling empire and inexorable decline.

[Neuro]

Oh shit, that's basically an act of war. I keep asking people. ARE YOUR PREPS IN ORDER?
I bought a couple more cans of diesel. I just had an epiphany today, that war is starting really soon, next few days even. And my family will go to Sweden then from Turkey, but I came to realize that it is very likely that we won't get flights out. Now we have enough Diesel to go by car to Germany at least. Should even in worst case scenario, be able to find Diesel on a few places along the way, but having around a 1000 miles worth of fuel would feel good at least...

[mamboni]

I bought a couple more cans of diesel. I just had an epiphany today, that war is starting really soon, next few days even. And my family will go to Sweden then from Turkey, but I came to realize that it is very likely that we won't get flights out. Now we have enough Diesel to go by car to Germany at least. Should even in worst case scenario, be able to find Diesel on a few places along the way, but having around a 1000 miles worth of fuel would feel good at least...

I hope for all of our sakes that you're wrong, though I fear that your gut is correct. God's speed!

[Neuro]

I hope for all of our sakes that you're wrong, though I fear that your gut is correct. God's speed!
Yes, I hope I am wrong too. But better to plan for the worst! This is among the strongest 'Pre-monitions' I've had since September 2008, when it was close the entire financial system collapsed, that time I was wrong though...
God's speed!

[chad]

filled up all 8 of my 5 gallon cans today.

[joboo]

So how does Walmart fit in to all this? Undercover terrrrrorist organization now working in cahoots with China?

[mamboni]

So how does Walmart fit in to all this? Undercover terrrrrorist organization now working in cahoots with China?

Dollar Index looks like it's about to fall off a cliff. In years to come, Americans will be so poor that Walmarts will be the Niemann Marcus of chain stores, the place you go to get the "good shit." With a name like Guppy, he's got to be good:


Daryl Guppy: Dollar Index Headed for Rapid Collapse




$ $ $









http://2.bp.blogspot.com/-6_79VATS15c/UFiviQjeJYI/AAAAAAAAAwQ/SlU8LNuT0So/s200/DarylGuppy.gif (http://2.bp.blogspot.com/-6_79VATS15c/UFiviQjeJYI/AAAAAAAAAwQ/SlU8LNuT0So/s1600/DarylGuppy.gif)
Daryl Guppy




Dollar Index Headed for Rapid Collapse: Chart

Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies.

Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.

The lower the U.S. dollar the greater the intensity of currency wars. The break below the key uptrend line on the Dollar Index chart was an early warning of the third round of quantitative easing (QE3). The most important question now is to use the chart to examine the potential downside limits of a QE3 weakened U.S. dollar.

The U.S. Dollar Index is a basket of currencies. They are the Euro, yen, British Pound, Canadian dollar, Swiss Franc and Swedish Krona. The Dollar Index is used as a measure of the strength or weakness of the U.S. dollar.

http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s400/USDollarIndex091712.jpg (http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s1600/USDollarIndex091712.jpg)
(http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s1600/USDollarIndex091712.jpg)
(http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s1600/USDollarIndex091712.jpg)
(http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s1600/USDollarIndex091712.jpg)
(http://1.bp.blogspot.com/-b6QvO4ngoLc/UFiuaCwyJbI/AAAAAAAAAwE/fkxhTw1cN38/s1600/USDollarIndex091712.jpg)

There are three significant features on the weekly Dollar Index chart. The first feature is the uptrend line that started in September 2011.



One year later, in September 2012, the Dollar Index fell below this uptrend line. The weekly close below this uptrend line was the first signal of a major change in the trend direction. It came before the announcement of QE3, last week. Traders had good warning to move to the correct side of the new market trend by closing long side trades.



The second significant feature is the support level near 79. This provided both support and resistance in 2011 and 2012. Temporary consolidation behavior may develop at this level. There is a low probability this level will provide strong support after the announcement of QE3 so traders will use the consolidation as an opportunity to build short side positions.



The third significant feature is historical support near 74.5. This is the upper edge of a consolidation band between 73.5 and 74.5. This is the downside target for the Dollar Index following a fall below 79. This target can be reached very rapidly over three to four weeks. A rapid collapse of the U.S. dollar puts immediate pressure on other dollar-linked currencies.



There is a very low probability the U.S. dollar will resume its uptrend. The move below the value of the uptrend line and a fall below 79 confirm that a new downtrend has developed. The weakness in the U.S. Dollar will hurt export dependent economies and companies.



(CNBC 9-17-12)

http://matrixmarkets.blogspot.ca/2012/09/daryl-guppy-dollar-index-headed-for.html

[k-os]

This is the biggest indicator of DOOOOOM that I have read in a week. I've always thought that China making big moves would signal something really bad to come shortly thereafter.

[Santa]

In years to come, Americans will be so poor that Walmarts will be the Niemann Marcus of chain stores, the place you go to get the "good shit.

Fortunately for me, I still only go to Walmart for my vaccination needs and a few frozen microwave food items.

[woodman]

Fortunately for me, I still only go to Walmart for my vaccination needs and a few frozen microwave food items.

Vaccination needs? Forgot the sarcasm emoticon?

[steyr_m]

Oh shit, that's basically an act of war. I keep asking people. ARE YOUR PREPS IN ORDER?

Not going to happen anytime soon. The MSM propaganda machine still needs to build up support for WW3.

[JDRock]

...meanwhile in the USA, emperor Nero admires his reflection in the mirror, while the barbarian hoards assemble on the border.....we are SOOO Fvked..

[mamboni]

Another nail in the dollar-as-reserve-currency coffin:


China in closed door negotiations to purchase Mexican crude oil without using US dollar

Von Helman | 21.09.2012 02:00 | Indymedia (http://gold-silver.us/en/topics/indymedia/) | Other Press (http://gold-silver.us/en/topics/otherpress/) | World (http://gold-silver.us/en/regions/world/)

Mexican crude oil to be sold to China without using the US dollar as its trading currency



Sources inside the Mexican government refuse to confirm that the Mexico government has been in secret negotiations with China over possible crude oil sales to China without using the US dollar.

China officials claim meetings held with the Mexican government and Petróleos Mexicanos (or Pemex) are for investment and economic growth inside Mexico. Crude oil purchases fall under this heading however officials on both sides in the past have stopped short of publicly discussing crude oil or any talks related to any special agreements relating to crude oil purchases.

Sources inside Mexico claim this week that China has in fact brokered a secret deal with Pemex to purchase crude oil using currency means other than the US Dollar. The details of this agreement are still unknown at this time but China is expected to make a public announcement within the next few days.

Over the past ten years with new trade agreements China has invested billions of dollars inside Mexico. China has helped the Mexican government create jobs and has financially supported investments in the privatization of ports and infrastructure throughout Mexico. Mexico continues to privatize large sectors of its economy and China is line to benefit from additional investments inside Mexico.


Since the 2009 global economic crisis Mexico's central bank has been quietly purchasing large quantities of gold. Mexico Central bank buys 100 tonnes of gold

http://www.ft.com/cms/s/0/cbc02e10-7637-11e0-b4f7-00144feabdc0.html#axzz27287HHy0

Then again in May 2012 Mexico Central Bank boost gold holdings yet again and some of this gold purchased by Mexico’s Central bank has come from China.

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=152096&sn=Detail


These large gold purchases by the Mexican Central bank and the successful restriction of the US dollar from use inside Mexico (as already reported) along with a closer relationship with China and speculation of secret petroleum deals that do not include using the US dollar are sure to raise new concerns in global markets as this story continues to unfold. These strategic moves on the part of Mexico’s Government and Mexico’s Central bank are said to be protective measures to shield Mexico from what it sees as the imminent and unavoidable devaluation of the US dollar. (In layman’s terms the collapse of the US Dollar)

Global finical markets are very concerned with trading oil in other currencies other than the US Dollar as doing so is actually helping to rapidly destabilize the US dollar even further. Russia and China announced this week that they have also entered into an agreement between the two countries to trade crude oil using their own currencies and not the US dollar.

Many experts have warned such actions of replacing the US dollar as the trade currency for crude oil in any country will cause the US immediate, sever, and devastating consequences that could lead to the US Dollar losing its value almost overnight. Factoring in that Mexico is one of the largest exporters of crude oil to the USA this news is especially troubling for the US Dollar.

The US government has voiced these same concerns but with the continued and uncontrollable escalating US debt the United Sates is no longer in a position to prevent other countries from taking these preemptive measures to protect themselves against the devaluation of the US Dollar which is excepted to occur with this next round of quantitative easing (also referred to as QE3) which coincidentally was also announced was underway as of this week.

As more countries around the world openly admit they are losing confidence in the US dollar there is no doubt that the US dollar is in grave peril of imminent and total collapse. In a news conference last week before federal policy makers the Federal Reserve Chairman Ben Bernanke said; “I don't think our tools are strong enough to offset the effects of a major fiscal shock, so we'd have to think about what to do in that contingency"

[vacuum]

Another nail in the dollar-as-reserve-currency coffin:

All of this news is really exciting. But then you realize, as a citizen of the US, we're going to be really screwed.

[Uncle Salty]

All of our cherished delusions are being shattered?

I hate when that happens!

[mamboni]

All of this news is really exciting. But then you realize, as a citizen of the US, we're going to be really screwed.

You are not screwed if you prepare accordingly: own physical gold and silver as the bulk of your liquid wealth.

[vacuum]

You are not screwed if you prepare accordingly: own physical gold and silver as the bulk of your liquid wealth.

I'm doing that, unfortunately I've only been in the workforce for about 4 years.

[Neuro]

I'm doing that, unfortunately I've only been in the workforce for about 4 years.
You are way ahead of most who have been in the work force for 40 years.

[mamboni]

I hate when that happens!

Yeah! But you know what's even worse? Being called a hairless monkey!!!! I'll never look at a banana in quite the same way.

[steyr_m]

I thank God I live in Canada -- not trying to rub it in guys [I'm 1/2 American]; but holy crap the US is swirling down the porcelain.

[mick silver]

back up for more news

[steyr_m]

I'm doing that, unfortunately I've only been in the workforce for about 4 years.

Any amount is better than none. Instead of going out for dinner, or going to the bar, I'll buy a 1oz silver bar instead. I still go out and live, but I do sacrifice a bit to add to the stack.

Being in the workforce for 4 years will be better than some people who have faith in stocks, savings accounts, and "traditional" ways to hold their money if they've been working for 40 years.

[milehi]

Yesterday was the first payday I didn't pickup PM's in a long time. Bought thousands and thousands of rounds instead.