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by U.S. Navy/Getty Images
Kenneth
Schortgen Jr
Finance
Examiner
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August
31, 2014
Last
week, Russia announced an game changing shift for energy in which they are now
allowing the sale of oil and natural gas to be done in both Roubles and Yuan,
bypassing the dollar and cracking the 40 year old petro-dollar system. And on
Aug. 31, Dr. Jim Willie reported during an interview with TFMetals Report that
this break away from U.S. hegemony over the purchasing of oil is not being
limited to just Russia, but that the foundational country of petro-dollar
origin, Saudi Arabia, is in talks with the Eurasian energy giant to join them
in a partnership that will also disconnect the Arab Kingdom from the dollar,
and open energy sales within the OPEC nations to be done in Roubles, Yuan, and
perhaps even the Euro.
While
speaking with Craig 'Turd' Ferguson of the TFMetal Report, Dr. Jim Willie also
pointed out that while Russia was not fully ready to use the Rouble as a
primary currency for a large portion of their oil sales, the inclusion of the
Yuan by Gazprom will allow multitudes of nations to bypass the dollar, and
allow them to purchase oil directly from Russia without having to be enslaved
to SWIFT and the financial mechanisms of the reserve currency that the U.S. has
used not only for profit, but as a financial weapon.
Jim
Willie: So what happened with Russia? They did in May the holy grail energy
deal between themselves and China, and this is a long term, 20-30 year
agreement. As well, back in May, April, and March I said watch Russia accept
Yuan as a temporary device for energy sales.
Russia
isn't fully ready to do just Rouble sales. In Europe I think they are going to
do Euro and Rouble sales, and with China they are gong to do exclusively Yuan
sales.
So
watch the Saudi's... watch OPEC... watch the deals that Russia starts to
integrate with the Person Gulf nations.
And
kiss goodbye this petro-dollar. - TFMetals Report, Aug. 31
In
validation to Jim Willie's assertion of a growing partnership being formed
between Russia and Saudi Arabia over currencies and oil sales, an interesting
event took place a little less than two weeks ago that according to the
Guerrilla Economist, had to do with the theft of confidential documents a Saudi
Royal was carrying that were tied to negotiations between Russia and the Arab
Kingdom over oil sales and the future of the petro-dollar.
The
robbers, said to number between five and eight, seized the Mercedes and its
three occupants – as well as €250,000 and what Le Parisien newspaper described
as sensitive documents.
Soon
afterwards the robbers released the hostages and abandoned the vehicle, which
was found an hour later in Saint-Mesmes, a village in the Ile-de-France region
north-east of Paris, along with one of the BMWs. Both vehicles were burnt out.
- The Guardian
The
ability for major nations such as those in Europe, the Middle East, and in Asia
to begin using the Yuan as the primary currency to purchase oil from the
world's leading energy producer is already available as more than 23 countries
have established swap lines which can facilitate the exchange of their sovereign
currencies into Yuan. And the benefit of this over use of the dollar is that
nations can disconnect themselves from the SWIFT system of transfers, and
alleviate much of the inflation that is currently being exported to their
countries by the U.S. as the Federal Reserve continues to devalue the dollar
through massive money printing programs.
The
days of the petro-dollar being the sole currency for energy and commodity
transactions is quickly coming to a close, and as such, the U.S. is not going
to go down without a fight. And the more policies that come out of Washington
which threaten the global financial system through economic sanctions and
attempted 'red lines' that have far reaching effects for trade and sovereign
economies, the faster the world will flee the old system, and more further into
Russia and China's camp which is outside the dollar, and dedicated towards a
new free trade foundation.
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