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| Joined: | Mon Nov 21st, 2005 |
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“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.
Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold.
This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges.
The new triad of oil, yuan and gold is actually a win-win-win. No problem at all if energy providers prefer to be paid in physical gold instead of yuan. The key message is the US dollar being bypassed.
https://www.nationalpriorities.org/campaigns/us-federal-debt-who/
https://media.nationalpriorities.org/uploads/international_investors_as_of_december_2014_large.png
If China needs oil, and oil is sold for Federal Reserve Notes (petrodollars), then China must have the dollars to spend on oil. If not, then not, and then what does China do with all those borrowed dollars?
http://www.zerohedge.com/news/2014-04-03/chinese-are-buying-large-chunks-land-across-america-and-zillow-now-enabling-it
So what happens when we get to the point when the Chinese government and/or Chinese citizens own 10 percent of all the real estate in the entire country?