Could this be the end of the petrodollar scam and with it, the American empire?
Very interesting development. For those of you who don’t know, the USA runs the world’s largest scam, the petrodollar. Much of the world’s oil is denominated in USD. That creates an artificial demand for USD, which gives USA a limitless credit card - as long as people keep the system going. Any alternative to the petrodollar is crushed with the American military. Of course, they will sell you bogus reasons like “freedom, democracy, human rights”
China is different. China cannot be pushed around by the American military, at least, not without intolerable cost.
Could this be the end of the petrodollar scam?
China sees new world order with oil benchmark backed by gold
Yuan-denominated contract will let exporters circumvent U.S. dollar
China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.
The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.
China’s move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.
“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT.
If Saudi Arabia accepts yuan settlement for oil, Gave said, “this would go down like a lead balloon in Washington, where the U.S. Treasury would see this as a threat to the dollar’s hegemony… and it is unlikely the U.S. would continue to approve modern weapon sales to Saudi and the embedded protection of the House of Saud [the kingdom’s ruling family] that comes with them.”
China sees new world order with oil benchmark backed by gold- Nikkei Asian Review