Friday, September 15, 2017

US threatens to cut China off from using US China quits dollar for Yuan

US Dollar and Yuan

A lot, if not most, of the geopolitical activity we see in the news these days is covert tit for tat regarding the revolution that is going on in the currency exchange markets around the world.  This revolution is the replacing of the US dollar by the other super powers (China and Russia) with other currencies--in particular the Yuan and the Ruble.

Most of the time, and particularly in the Legacy Main$tream Media, this issue is either ignored, minimized and/or lied about.  This morning RT has a report about the US dollar's impending collapse that is refreshingly candid.  I am reprinting the article below and will have more thoughts in comments to follow:

"Petrodollar end looming as China & allies dump it in oil trading - Jim Rogers
Published time: 15 Sep, 2017 15:27

Beijing has announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The step might lead to the emergence of a new Asia-based crude oil benchmark to compete with Brent or West Texas Intermediate futures.

RT talked to investing guru and financial commentator Jim Rogers to understand how much of a game changer this could be for an industry dominated by the dollar.
“This is just another step in that direction. Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business. China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that,” said the Jim Rogers.

As China is the world’s biggest crude buyer, the new contract may allow exporters to avoid US sanctions by trading oil in yuan. Such countries as Russia, Iran, Pakistan, Vietnam, China and many other Asian countries are interested in that, according to the expert.
The futures contract will allow participants to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.
“The world has been moving that way. Iran will accept renminbi (yuan) from China now. The world is moving that way. China and Russia have currently swaps in rubles and renminbis. It is happening. But it is happening slowly. It takes a lot of time,” Rogers said.

The investor stressed the shift is not going to happen swiftly.
“In this case, there are so many people that actively want it, I would suspect that in less than ten years you will see a major shift into the trading of oil to Asia,” he said.
“When US dollar replaced the pound sterling, there was no one really going around trying to do it quickly. But now you have major economies: Russia, China, Iran and others – very much want this to happen. So, it will happen faster,” Rogers added.

So, this is the struggle that is at the heart of every single geopolitical event that we're watching...including the false flag bombing in London, England this is all part of intimidation and economic terrorism....better not go ahead with Brexit [weakening of Western Economic dominance] or there will be MORE instability like this!

If all you ever read was the Legacy Main$tream media, you would never know about this financial struggle "to the death" that's going on.  In order to maintain the illusion of impenetrable power, the Rothchild bankers are even pretending that....wait for it....THEY'RE going to CUT THE CHINESE OFF FROM THE DOLLAR! instead of the other way around.  Here is a report, also from RT which proffers just this threat...which is diametrically opposite of the truth.  Again, I have posted the report in its entirety and will have final thoughts in comments to follow:

"US threatens to ‘cut China off’ from dollar if it does not uphold sanctions against N. Korea
Published time: 12 Sep, 2017 21:45

The US could impose economic sanctions on China if it does not implement the new sanctions regime against North Korea, the US Treasury Secretary has warned. Steven Mnuchin said the restrictions could involve cutting off Beijing’s access to the US financial system.
“North Korea economic warfare works,” Mnuchin said Tuesday at the Delivering Alpha Conference in New York City. “We sent a message that anybody who wanted to trade with North Korea – we would consider them not trading with us.

The Treasury Secretary echoed the words of the US envoy to the UN, Nikki Haley, by calling the fresh round of sanctions against Pyongyang “historic.” Mnuchin added “if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the US and international dollar system.”

Washington has, so far, been reluctant to impose economic sanctions on China over concerns of possible retaliatory measures from Beijing and the potentially catastrophic consequences for the global economy. Washington runs a $350 billion annual trade deficit with Beijing. China also holds $1 trillion in US debt, which amounts to 28 percent of US Treasury bills, notes and bonds held by a foreign government.

US lawmakers, however, seemed to be more inclined to exert pressure on Beijing and other countries striking deals with Pyongyang as they demand a “supercharged” response to North Korea’s nuclear tests, including imposing sanctions on companies from China and any other country doing business in North Korea. “I believe the response from the United States and our allies should be supercharged,” said Ed Royce, chairman of the House of Representatives Foreign Affairs Committee during a hearing Tuesday.

“We need to use every ounce of leverage... to put maximum pressure on this rogue regime,” he said, adding that “time is running out.” Royce also called on Washington to target major Chinese banks, including the Agricultural Bank of China and the China Merchants Bank for dealing with Pyongyang.

He also said China was apparently reluctant to follow through on the sanctions adopted by the UN Security Council (UNSC) against the North. “It’s been a long, long time of waiting for China to comply with the sanctions that we pass and, frankly, with the sanctions that the United Nations passed,” he said.

The committee chair went on to say the US could give Chinese banks and companies “a choice between doing business with North Korea or the United States.” He added that the US should also “go after banks and companies in other countries that do business with North Korea the same way.”
Committee members also expressed unease over the fact that the sanctions imposed on North Korea have so far been ineffective in preventing Pyongyang from developing its nuclear and missile programs.

“We’ve been played by the Kims for years,” Republican Representative Ted Poe said, referring to North Korean leader Kim Jong-un and his predecessors, as reported by Reuters.
President Donald Trump also downplayed the role of the newly adopted sanctions later Tuesday. ”We think it’s just another very small step, not a big deal. I don’t know if it has any impact,” he told reporters at the start of a meeting with Malaysian Prime Minister Najib Razak.
Trump also said he already discussed the issue with his State Secretary of State Rex Tillerson. He ominously added that “those sanctions are nothing compared to what ultimately will have to happen” without specifying what he meant by that.

The UNSC unanimously approved a new resolution on sanctions against Pyongyang on September 11. Following a series of behind-the-scenes negotiations Sunday, diplomats agreed not to ban oil exports into North Korea. Instead, the ninth set of restrictive sanctions against Pyongyang authorized an annual cap of 2 million barrels of refined petroleum products to North Korea.
It also banned the North’s textile exports – the second-biggest export for the country, which totals $752 million – according to data from the Korea Trade-Investment Promotion Agency. Chinese and Russian negotiators managed to persuade the US delegation not to impose a travel ban or asset freeze on North Korea’s leader Kim Jong-un. On Tuesday, the North Korean ambassador to Moscow said sanctions will not make his country change its policies. Pyongyang’s nuclear program helps it to deter the “hostile policy of the US,” Kim Yong-jae added.

Folks, there's another word for what is going on here.  It's called "blackmail".  As I've said many times on this blog...the perps are "one (or two) trick ponies".  They don't have a lot of strategies to foment their evil on this planet and I can name most of them here:

Theft, including Identity Theft

There you have it.  But their favourite ploy beyond a doubt is Blackmail.  That is why they deal in drugs, porn and sexual deviation...for their compromise and blackmail opportunities.  It's all about control.  So, in this case they're blackmailing China and Russia that if they don't knuckle under and give up plans of wresting financial independence from the Rothchild Ziofascist Banksters, the perps will cut China and Russia off from the US Dollar BEFORE these countries have all their eggs in a basket and/or failing that, they will start WWIII and impose their previously successful [WWI and WWII]  strategy of "Order out of Chaos".  North Korea is just a patsy.  It was surreptitiously supplied with nuclear materials by the Clintons and the West--with the specific goal of arming it with nuclear weapons so that there could be a [nuclear] war on China's border.  The entire modern history of the Korean peninsula, including the Korean War after WWII has been directed at dividing and conquering Korea with the goal of hemming in China.

The pundit in the first report above says it will take a long time for China to dump the dollar.  I disagree.  I believe it will happen very quickly and the financial repercussions will be enormous...and unpredictable.


Northerntruthseeker said...

Honestly, Crow.. The Petro-Dollar scam should have died decades ago, and it is the fault of the pompous and egotistical US government that actually thought that the US dollar would remain as the main monetary unit for all mankind in trade... Luckily most nations now can see the deception and the fraud of the US dollar and realize it is worthless...

This move will only accelerate over time as more nations no longer show fear of US "retaliation" for not using their crud... And I can guarantee that once the movement begins, there will be a massive cascading effect as nations by the dozens move away from US dollar control...

If I was the Chinese government in Beijing right now, I would be laughing my ass off at the ridiculous notion that the US is going to "retaliate" ....

I am of course worried about what will happen to Canada with the collapse of the US dollar hegemony... But Canada is still resource wealthy and the shock will be hard and hurtful at the beginning, but within months I can guarantee other nations will want to get back to trading, but by then WITHOUT the hands of the US government around their throats...

greencrow said...

All that you predict will most likely occur....without the (how did the PNAC neocons phrase it now?) "intervention of some cataclysmic Pearl Harbour-like event".


Ed(itor) said...

The currency wars, if not peaceably resolved, must inevitably become shooting wars.

BuelahMan said...

I've written about this subject for years. It seems that we are on the eternal precipice of the dying dollar. They have been working on breaking the dollar for years:

We can only thwart it for so long.