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If This Is True - What Will The U.S. Do?

Discussion in 'World Economy' started by maxflinn, Sep 5, 2017.

  1. maxflinn

    maxflinn Legend Political Irish Donator

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    I can't see them accepting it, though I sincerely hope they can't do anything about it as they've abused their power for far too long, placing sanctions on other countries for nothing:

    Game Changer: China to Buy Oil With Gold-Backed Yuan

    ''The world’s top oil importer, China, is preparing to launch a crude oil futures contract denominated in Chinese yuan and convertible into gold, potentially creating the most important Asian oil benchmark and allowing oil exporters to bypass U.S.-dollar denominated benchmarks by trading in yuan, Nikkei Asian Review reports.

    The crude oil futures will be the first commodity contract in China open to foreign investment funds, trading houses, and oil firms. The circumvention of U.S. dollar trade could allow oil exporters such as Russia and Iran, for example, to bypass U.S. sanctions by trading in yuan, according to Nikkei Asian Review. To make the yuan-denominated contract more attractive, China plans the yuan to be fully convertible in gold on the Shanghai and Hong Kong exchanges.

    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.

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

    China’s pricing of assets in yuan – coupled with the Hong Kong Stock Exchange’s plan to sell physical gold contracts priced in the currency – will create a system where countries can sidestep the US banking system, Tinker said in an Aug 30 note.

    “Having accepted payment for oil or gas in yuan, the seller, be it Russia or Saudi Arabia or anyone else for that matter, does not have to worry about having excess yuan, they can simply trade it back into gold,” Tinker said.
    “We are moving to a multi-polar world.”
     
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  2. Kershaw

    Kershaw Legend Political Irish

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    They banned crypto currencies yesterday. Bitcoin went down 25%.
     
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  3. OP
    maxflinn

    maxflinn Legend Political Irish Donator

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    Really? I must look into this. Only the other day a friend was talking about investing in Bitcoin...
     
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  4. The Potato Mystic

    The Potato Mystic Legend Political Irish

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    I think the better question is what Deep State is doing now. And the answer to that is to take a look at the chaos in Myanmar. Myanmar is not only a border country to China with a terrorist problem but its a vital transit point for China's Pan Eurasian Silk Road.

    And I'm sure rotten advice is flowing into Trump's ear on Korea by people who's overarching aim is to injure China.
     
    Last edited: Sep 5, 2017
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  5. Youngdan

    Youngdan Moderator Staff Member Moderator Political Irish Donator

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    Time to get out then.
     
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