Pictured above: Give me a pink Mao any day, over a green Benjamin.
Downloadable SoundCloud podcast (also at the bottom of this page), as well as being syndicated on iTunes and Stitcher Radio (links below),[dropcap] A [/dropcap]mazing. On March 26th, only seven weeks ago, Baba Beijing (China’s leadership) launched its much anticipated petroyuan futures oil contract, which pointedly refuses to use the US dollar as a benchmark currency (http://chinarising.puntopress.com/2018/04/08/petro-yuan-is-the-newest-weapon-for-the-china-russia-iran-anti-usd-alliance-china-rising-radio-sinoland-180408/).
There was a huge question mark about how the global hydrocarbon trading system would take to the first serious competitor to the dollar dominated Brent and West Texas Intermediate contracts, which have been the industry standard going back decades.
I suspect even Baba Beijing can’t believe what has transpired over the last 50 days. China’s petroyuan has charged out of the gate and already has 12% of the world’s futures contracts. In only 50 days. Over one-tenth of the world market and growing fast (https://www.rt.com/business/426637-china-petroyuan-oil-trade-iran/). Let that timeline and the magnitude of the petroyuan’s rapid acceptance sink in for a moment. Historically and practically speaking, it’s beyond breathtaking.
Now, US President Donald Trump kept his campaign promise and pulled out of the big multilateral nuclear treaty with Iran, called the JCPOA (http://chinarising.puntopress.com/2017/09/24/baba-beijing-and-big-bear-smack-down-uncle-sam-in-iran-and-venezuela-china-rising-radio-sinoland-170924/). China already buys 25% of Iran’s exports. If Uncle Sam can bribe, extort, blackmail and assassinate its “allies” into stopping buying Iranian oil and gas, Iran has a huge incentive to start selling all its futures using the RMB denominated petroyuan. All purchases would be transacted by Iranian and Chinese banks, circumventing empire’s illegal sanctions. By not using the Western controlled Bank for International Settlements (http://chinarising.puntopress.com/2017/08/17/baba-beijing-is-going-to-start-using-blockchain-technology-for-official-business-china-rising-radio-sinoland-170817/), big bully super cop Uncle Sam could not even keep track of the flow of money being used between Iran and China.
This would be a massive blow to Eurangloland’s financial tyranny over China, the world’s biggest hydrocarbon importer, and Iran, an anti-imperial heavyweight OPEC producer. If Russia started selling its future contracts in Shanghai, and not in New York, London and Singapore, it would turn the global oil biz inside out and upside down in a hurry.
There’s another sign that the petroyuan is here to stay. In record time, the media is already dropping the hyphen in the originally announced petro-yuan. That means it has already become normalized and institutionalized in humanity’s consciousness. Words are powerful things. You can take the petroyuan to the bank, boys and girls. It’s gonna kick ass – imperial Western ass, that is.
Postscript: interesting article that shows all the absurdities and unintended consequences of the West’s illegal sanctions against its enemies (https://www.nytimes.com/2018/05/17/business/energy-environment/venezuela-oil-sanctions-iran-china-russia.html). Eurangloland has no vision, just a sledgehammer to pummel the world.
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