The death of the dollar?
POSTED BY: SIGNYM
UPDATED: Sunday, August 23, 2026 15:35
VIEWED: 15891
PAGE 3 of 15
Oh joy.
Maybe the Chinese oil investors will speculate so hard that a single barrel of oil shoots to $19,000 like Bitcoin.
Do Right, Be Right. :)
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March 26: The Chinese petroyuan comes online.
Tick tock.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
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Quote:
Originally posted by SIGNYM:
March 26: The Chinese petroyuan comes online.
Tick tock.
Wow, do you still want us to believe you're American. It's obvious you can't wait for this to happen. Hey I know, hold you breath until the dollar collapses comrade.
Hey sig, can you see me laughing? No really, can you see me laughing? Tell me sig, how does this help Russia?
T
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Ir wasn't China or RUSSIA!! that weakened the American dollar, but Washington DC and The Fed. Instead of hyperventilating about everything happening "over there", maybe you should have paid more attention to what was happening "over here".
The Chinese have no interest in killing the American dollar, because they have lots and lots of them - and our Treasuries - in their bank. OTOH, maybe this coming trade war will make them abandon the dollar -and our Treasuries - faster than they would have otherwise.
How did we allow our dollar to become so worthless?
Monday, March 26.
Tick tock.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
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Quote:MORE AT https://www.zerohedge.com/news/2018-03-26/petroyuan-futures-volume-dom
PetroYuan' Futures Launch With A Bang, Volume Dominates Brent As Big Traders Step In
As we detailed previously, China’s yuan-denominated crude oil futures launched overnight in Shanghai with 62,500 contracts traded in aggregate, meaning over 62 million barrels of oil changed hands for a notional volume around 27 billion yuan (over $4 billion). As OilPrice.com's Tsvetana Paraskova notes, Glencore, Trafigura, and Freepoint Commodities were among the first to buy the new contract, Reuters reports. https://oilprice.com/Energy/Crude-Oil/China-Yuan-Futures-Launch-With-A
-Bang.html
After an initial surge in volume that outpaced overnight transactions in global benchmark Brent crude in London, trading tapered off toward the end of the session
Within minutes of the launch, the price had gone up to almost US$70.85 (447 yuan) from a starting price of US$69.94 (440.4 yuan) per barrel. The overall price jump for the short trading session came in at 3.92 percent.
Many awaited the launch eagerly, seeking to tap China’s bustling commodity markets, although doubts remain whether the Shanghai futures contract will be able to become another international oil benchmark. These doubts center on the fact that China is not a market economy, and the government is quick to interfere in the workings of the local commodity markets on any suspicion of a bubble coming.
To prevent such a bubble in oil, the authorities made sure the contract will trade within a set band of 5 percent on either side, with 10 percent on either side for the first trading day. Margin has been set at 7 percent. Storage costs for the crude are higher than the international average in hopes of discouraging speculators.
inates-brent-big-traders-step
How well this market functions, and how much it takes away from dollar-for-oil trade has yet to be seen; the initial surge in volume could be just clearing a backlog of demand.
Still, there's no doubt that this new oil contracts/ futures market, based on the yuan, WILL take away from petrodollar activity. Whether that's 5%, 10%, or more, time will tell.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
America is an oligarchy
http://www.fireflyfans.net/mthread.aspx?tid=57876
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Thanks to sanctions against Iran, the death of the dollar is accelerated.
Both Xi Jingping and Putin have spoken out against the "dollar hegemony" in the past two weeks, saying that it is dangerous for the rest of the world. Until now, they have been silently separating themselves from dependency on the dollar: If anyone has been paying attention, they would have realized that China (with Russia's help) has constructed an entirely parallel financial and banking structure, including the AIIB and BRICS banks (international development banks parallel to the IMF and World Bank), the gold futures market and petro-yuan (convertible to gold), and a non-SWIFT payment system. A number of bilateral deals have been struck which avoid the dollar.
In addition, a lot of the emerging markets (EMs) currencies are in freefall, including Argentina, Turkey, Brazil, and (most recently) Italian bonds.
Quote:https://www.bloomberg.com/news/articles/2018-05-15/not-a-single-emergi
Twenty three out of 24 emerging-market currencies tracked by Bloomberg fell, and MSCI’s broad gauge briefly slipped below its average price of the past 200 days -- an indicator seen as a harbinger for more losses.
ng-market-currency-advances-as-stocks-tumble
However, now that Chinese and Russian leadership are openly pointing out the risk involved with relying on the USD, are they ready to pull the plug?
And now, for the first time one of those non-USD bilateral deals does NOT include Russia or China at the other end.
Quote:
Gold for Oil: India and Iran Ditch Dollar – Report 286
https://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-r
eport/
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
As long as you insist that everything is the Republicans'/ Democrats' fault, then you fail to grasp the REAL problem with American politics.
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
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Other nations are piling on to the anti-dollar bandwagon. The problem is not just "sanctions", in which the USA uses its dollar hegemony (or it is "hegemoney"?) to punish and "isolate" those it doesn't like, it's The Fed's recent dollar-tightening policy: Without raising interest rates, The Fed is selling assets off its books, reducing the amount of "dollars" floating through the system and making the USD more valuable in relation to other currencies. So in addition to Argentina, Brazil, Venezuela (under USA sanctions) and other South and Central American nations seeing their currencies (and bonds) implode, we're also seeing Malaysia, India, and Indonesia begging for mercy.
https://www.zerohedge.com/news/2018-06-06/dollar-king-indonesia-joins-
india-begging-fed-stop-shrinking-its-balance-sheet
The last time this happened, emerging market nations begged the IMF and the Fed Chair at Jackson Hole, WY for relief from the "strong dollar" policy which was driving their currencies into the ground, and the answer was "Erm... no".
Quote:
Fed’s Jackson Hole Participants to QE-Exit Whacked Emerging Economies: Drop Dead
Posted on August 26, 2013 by Yves Smith https://www.nakedcapitalism.com/2013/08/feds-jackson-hole-participants
-to-qe-exit-whacked-emerging-economies-drop-dead.html
This is a repeated problem for emerging markets. However, THIS time, there is an alternative to the USD - the Chinese yuan. The Chinese (and Russians) have set up an entire alternate structure to the IMF/ World Bank/ BIS/ SWIFT/ gold fix/ USD system, with their BRICS Bank/ AIIB/ non-SWIFT exchange/ gold-backed petro-yuan, and other nations are beginning to avail themselves of this alternative.
In addition to sanctioned nations (Iran, Venezuela, Russia) looking for non-dollar trade, India forging rupee-based bilateral deals with Iran and 14 African Central Banks are discussing using the yuan as a reserve currency
Quote:
There is growing momentum to adopt China’s yuan as a reserve currency in Africa
https://qz.com/1291372/chinas-yuan-gets-support-from-africa-central-ba
nks-to-replace-us-dollar-reserve/
Emerging nations have gotten to the boil before, and some have had their currencies fall like dominoes, so it will be interesting to see how far off the dollar-path they're willing to tread this time.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
As long as you insist that everything is the Republicans'/ Democrats' fault, then you fail to grasp the REAL problem with American politics.
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
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Russia Explains Why It Liquidated Its US Treasurys
https://www.zerohedge.com/news/2018-07-30/russia-explains-why-it-liqui
dated-its-us-treasurys
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
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I kind of randomly posted this in another thread, http://www.fireflyfans.net/mthread.aspx?tid=62643 but it really belongs here
Quote:
But FWIW I don't believe that the USA deep state (and the elite that they serve) will be allowed to run roughshod over the globe much longer. Sooner or later ... possibly even as soon as next year ... there will be a major defection from the dollar by one of America's major partners. It's one thing for China, Russia, India, Iran, Venezuela and Turkey to dump out of the dollar system for their own bilateral dealings with each other. But I'm looking at Germany and Russia: If Trump insists on sanctioning any company that deals with the Nord Stream2, while Germany absolutely requires its completion, what do you suppose will happen? Putin and Merkel met last week, and I'll bet you dollars to donuts that Merkel and Putin were strategizing how to weasel around sanctions. I can think of a couple of ways for Germany to do this: (1) The same way that they got around sanctions before, by creating subsidiaries in Russia or other sacrificial business entities or (2) taking the much bolder step of paying for gas in Euros using a non-SWIFT system.
I have been reading various statements from Germany, France, and Russia. Merkel and Macron are none-too-pleased that their investments in Iran were yanked by USA sanctions; in particular French petroleum company Total had their Iranian projects taken over by CNPC (China National Petroleum Corporation). That's one blown deal that made the M$M, but I'm sure there were many more. Also, threatened sanctions against the Nord Stream2 have pissed off Merkel because this gas pipeline is existential for Germany. Plus the forex war against the Turkish lira, and rising USA interest rates which have once again torpedoed emerging market currencies from Argentina to Indonesia, have once again reminded ... well, everyone ... of the risk in borrowing USD.
Putin has been saying that it's time to get off the dollar. German Foreign Minister Heiko Maas has said the same. https://www.theatlantic.com/international/archive/2018/08/germany-us-h
eiko-maas/568129/ And now according to Bloomberg via Zerohedge
Quote:
EU Looking to Sidestep U.S. Sanctions With Payments System Plan
Germany and France said they’re working on financing solutions to sidestep U.S. sanctions against countries such as Iran, including a possible role for central banks.
The discussions, which also involve the U.K., are a signal that European powers are trying to get serious about demonstrating a greater level of independence from the U.S. as President Donald Trump pursues his “America First” agenda.
“With Germany, we are determined to work on an independent European or Franco-German financing tool which would allow us to avoid being the collateral victims of U.S. extra-territorial sanctions,” French Finance Minister Bruno Le Maire said Monday during a meeting with press association AJEF. “I want Europe to be a sovereign continent not a vassal, and that means having totally independent financing instruments that do not today exist.”
Trump reimposed the sanctions after pulling the U.S. out of the Iran nuclear accord in May, despite opposition from NATO allies and China and Russia. European companies including Daimler AG and Total SA have halted activity or backtracked on investment plans to avoid U.S. punishment but France and Germany and their European Union partners want business with the Islamic Republic to continue.
https://www.bloomberg.com/news/articles/2018-08-27/eu-looking-to-sides
tep-u-s-sanctions-with-payments-system-plan
If this plan helps Germany avoid NordStream2 sanctions, well ... so much the better. For them.
Yanno, either Trump is really stupid or he's looking to torpedo the USA currency as the petrodollar/ world reserve currency. I think that's a good thing because ti would allow the USA to manage it's own currency for national benefit, rather than the benefit of
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Nooooo... seriously??
Quote:In dollars, using western banks
US Threatens SWIFT With Sanctions If Iran Isn't Cut Off
Treasury Secretary Steven Mnuchin threatened the global financial messaging service SWIFT on Friday that it could be penalized if it doesn’t cut off financial services to entities and individuals doing business with Iran. The warning came just days ahead of the US re-imposition of all US sanctions on Iran that had been lifted under the 2015 nuclear deal, which will take effect at midnight tonight and cover Iran's shipping, financial and energy sectors.
Speaking to reporters, Mnuchin was quoted by Reuters as saying that "SWIFT is no different than any other entity," adding "We have advised SWIFT that it must disconnect any Iranian financial institutions that we designate as soon as technologically feasible to avoid sanctions exposure."
The Trump administration has been pressuring allies to cut Iranian oil imports to “zero” next month although on Friday the US agreed to grant exemptions to 8 countries that import Iran oil; the countries include Japan, India, and South Korea according to Bloomberg. China, the leading importers of Iranian oil remains in discussions with the US on terms but is among the eight, as is Turkey which will likely receive an exemption, the country's energy minister said on Friday. The full list of countries receiving waivers will be released on Monday.
By cutting Iran off from SWIFT, Iran would lose its ability to be paid for its exports and to pay for imports
Quote:MORE AT https://www.zerohedge.com/news/2018-11-04/us-threatens-swift-sanctions
Washington has been pressuring SWIFT to cut Iran from the financial system as it did in 2012 before the nuclear deal. Six years ago the EU imposed sanctions on Iranian banks, forcing SWIFT, which is subject to EU laws, to cut financial transactions with at least 30 of Iran’s financial institutions, including the central bank.
Iranian banks were reconnected to the network in 2016 after the Iran nuclear deal came into force, allowing much needed foreign cash to flow into Tehran’s coffers.
While SWIFT (The Society for Worldwide Interbank Financial Telecommunication), which is a financial network that provides cross-border transfers for members across the world, is based in Belgium, its board includes executives from US banks with US federal law allowing the administration to act against banks and regulators across the globe. It supports most interbank messages, connecting over 11,000 financial institutions in more than 200 countries and territories.
-if-iran-isnt-cut
Well, there's an alternative already set up, and it's not the EU's, it's Russia's.
-----------
Pity would be no more,
If we did not MAKE men poor - William Blake
"The messy American environment, where most people don't agree, is perfect for people like me. I CAN DO AS I PLEASE." - SECOND
America is an oligarchy http://www.fireflyfans.net/mthread.aspx?tid=57876
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