CHINA MOVES ON NEW WORLD ORDER: WILL BUY OIL WITH GOLD-BACKED CURRENCY—BYPASSING US PETRODOLLAR | WHAT REALLY HAPPENED


CHINA MOVES ON NEW WORLD ORDER: WILL BUY OIL WITH GOLD-BACKED CURRENCY—BYPASSING US PETRODOLLAR

In an effort to hedge against U.S. hegemony, and what could be a global game-changer, the world’s top oil importer, China, is preparing to denominate crude oil futures contracts in Chinese yuan to be convertible into gold. The move would allow oil exporting countries to bypass benchmarks denominated in U.S. petrodollars — creating what will almost certainly be the most critical Asian oil benchmark, according to a report by Nikkei Asian Review.

Typically, crude oil is priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

The move by the Chinese will allow oil exporting countries such as Iran and Russia to bypass U.S. sanctions by trading in yuan instead of U.S. dollars. The move is a direct result of the U.S. proclivity to use the dollar as a weapon against countries that refuse to bend to the imperial will of the United States. To make the yuan denominated contracts more appealing, China intends to make the yuan fully convertible to gold on the Shanghai and Hong Kong exchanges.

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

According to a report by OilPrice.com:

Last month, the Shanghai Futures Exchange and its subsidiary Shanghai International Energy Exchange, INE, successfully completed four tests in production environment for the crude oil futures, and the exchange continues with preparatory works for the listing of crude oil futures, aiming for the launch by the end of this year.

Webmaster's Commentary: 

When fully functional in 2018, this move by China will wind up as a sucker punch to the gut to the US economy.

So watch for more demonisation of China in the coming months, including more trade sanctions, as a prelude to a potential outright US-driven war against it.

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