Discussion in 'China' started by LETHALFORCE, Apr 1, 2018.
dollar is backed by American aircraft carriers.
Petroyuan? Lol saudis are americas bitches, china and russia do not have same prowess as the US so saudis cant rely on them for protection. Saddam, Gaddaffi too opposed petrodollar now where are they?
The point is do you want to deal with a world reserve currency from a country with transparent and independent Federal Reserve, or do you want to deal with a reserve currency from a country where there is absolutely no transparency, and where the federal monetary policy and exchange rates are all controlled by the government, companies account books are routinely cooked, and economic statistics are fabricated.
A lot of people on this forum dont realize that literally every single policy in China about anything of significance is made by a committee of 7 key individuals of the CCP standing Politburo, and rubber-stamped without any debate by the CCP rank & file. That's China for you. It is the biggest dictatorship in the world right now. Not even Russia compares to it.
Who is going to be crazy enough to want currency from a system like that to be the world's reserve currency ??
Maybe a better question is: As a country, are you going to hold billions of dollars of forex reserves in Chinese currency when you dont even how how they are going to determine the exchange rates for the yuan.
The whole point of the iraq war was to maintain the petrodollar when Saddam started selling oil in Euros. Gaddafi was also starting to sell oil in his own gold backed currency. Had this trend continued in the middle east, it would have caused a complete crash in the value of the dollar. LOL, democracy and freedom my ass. I'm not usually an America hater, and as far as East Asia and Afghanistan are concerned I support their presence. But they have been nothing but a nuisance to the world in the middle east.
That being said, I dont want a petroyuan either. Only paki inbreds think the Chinese are any better than the Americans.
The background is US will be soon as biggest oil/gas exporter and China already been the biggest importer.
China uses OBOR to secure its energy physically, and petroyuan finally.
If there are certain nation like Russia and Iran already have huge trade with China, Yuan/RMB as trading currency will reduce the cost for both side.
SinoPetro is also signing 45 billion deal to invest US's Alaska oil field, this is what needed for Trump administration, also US government won't challenge this kind of regional deal between two or three nations.
Domestically, the first Yuan oil futures was launched last week:
China's First Ever Yuan Oil Futures Begin ... - bloomberg.com
China has used trade and debt as weapons to further their nationalistic goals.
For large countries like USA they use a combination. For small countries like Pakistan
They throw them into a debt trap that they will never come out of.
The Petrodollar Isn’t Dead Yet
By promoting Petro-Yuan, China will invite enmity with U.S. deep state. Let's wait for next moves from US deep state against petro-yuan.
But also consider this. China holds billions of dollars of U.S. treasury bonds. China has been arm twisting U.S. by threatening to sell these bonds and give jolt to the US. That is the reason Trump is selecting his words carefully when opposing Chinese on any matter. China is testing the US patience. Let's see when the US patience gives up.
As regards petro-yuan or petro-dollars, any sane nation will choose petro-dollars. Imagine world nations with huge reserves of Yuan. They are at mercy of China that will stage manage currency exchange rates by cooking up the books. If China wants can destroy the economies of nations holding Yuan anytime. They will continue to be slaves of China.
Hate to break it up to you, but I was the research associate at an equity research firm, and my job was to daily look into Forex markets as well as commodities.
The model that we've studies which were built by some of the best companies like JP Morgan suggest that Yuan parity with dollar will be achieved by the end of either 2018 or first quarter of 2019. This suggest that Chinese futures will make a major push for petro-yuan by the end of 2019 or early 2020.
The only thing to witness is, the reaction of the U.S military machine that still runs on oil.
For that to happen china first needs to build same military prowess as the americans have, chinese have a poorly trained and a highly politicized military and on the top of that they have knockoffs versions of the russian weapons for weapons, only a fool would trust such a country for their security. During 1971 war it were americans who came for the aid of pakis and not the chinese. And with the trade war going on between the US and the chinese, US is set to win it and when chinas economy collapses its milotary machine will also collapse.
Firstly, Chinese never asked any country to trade EXCLUSIVELY in Yuan. They asked the trading partners to consider yuan as paying option;
Secondly, until today, US still has largest gold reserve in the world. Furthermore, US dollar is backed by a far more powerful treasury --- US military forces.
This is great for humanity. Only way the west can get ahead is through a technological breakthrough that only it can provide to the rest of humanity. 100 years ago it was petroleum (prospecting, drilling, refining, transporting of).
Maybe we'll finally have fusion power and electric vehicles.
indians should appreciate Chinese effort to challenge western hegemony despite rivalry between China and india. to be a pragmatist, indians would understand that another oil transaction option besides petrol-dollar is gonna benefit india as it's becoming a major oil importer.
(Some) Indian posters are either fear-mongering or gulliable, to say the least.
These Indians're easily swayed from one extreme to another. Not long ago the same Indians were in the spree of Doom and Gloom of China's Economy All of a sudden they sound disheartened by a phantom of "petro_yuan" now.
Are u talking about the same China? Or any idea of "consistency" all these years?
Here u go --> U.S. could become world's biggest oil producer in 2018
How soaring US oil exports to China are transforming the global oil game
Are you smoking crack ? Yuan parity with the US Dollar, 1 for 1 ?
Do you know what that means - right now 1 USD = 6.25 Yuan, so that means the Yuan appreciates by 600% or the US Dollar depreciates to 1/6 its value. That's crazy........that means an iPhone costing $800 bucks now will cost $4800 by 2019.
Even if you are talking about parity in other terms - sure China will try to buy oil with their currency.
But that does not mean that anyone is going to keep huge forex reserves in Yuan, because if the Chinese Finance Czar wakes up one day and decides to devalue the Yuan to make exports cheaper - then anyone holding Chinese Yuan is screwed.
Oh I do appreciate. Soviet Union sucked as a qualitative and quantitative rival to the west, but technology advanced greatly due to the cold war. A bi-polar world is great for technological advancements.
The turk province of China will be worst hit if Chinese play such games.
Every country China does trade with is told to trade in YUAN exclusively. China is creating their own markets to challenge US. Do not act innocent when US retaliates and it will
There are hundreds of other similar headlines
China Moves to Neuter King Dollar in International Trade
Agreed. It suits India's interests if there are multiple powers in the world rather than a sole hegemon. And the more China challenges America, the more America will have to compromise with India to get it on its side. I just wish Russia would get its economy in order and achieve its true potential of being a high end manufacturing and services hub, rather than being a glorified oil dealer. And Japan too should start asserting itself more and seriously start building up its military (especially its navy) both numerically and technologically. This type of a world order would give India a whole set of options in foreign policy.
Though as far as oil transactions are concerned, I dont imagine India using yuan to buy oil, in any scenario.
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