Jester’s Place [JESTER] HELLO AND HAPPY TUESDAY EVERYONE... [caro] JESTER Jim Wiley says China is going to asset back their currency with oi...
Jester’s Place
[JESTER] HELLO AND HAPPY TUESDAY EVERYONE...
[caro] JESTER Jim Wiley says China is going to asset back their currency with oil, not going to use the petro dollar, where is China getting the oil?
[JESTER] caro THAT IS NOT EXACTLY CORRECT... THEY ARE BUYING OIL WITH GOLD BACKED YUAN OIL FUTURES CONTRACTS......
[JESTER] THEY ARE ALREADY TRADING WITH RUSSIA IN YUAN... SO THAT WAS THE START OF THE PETROYUAN..
[caro] Jester oh misunderstood it thanks for correcting me, and explaing that
[JESTER] BEEN TELLING YOU THE DOLLAR DECLINE WAS COMING... THIS IS WHAT IS HAPPENING.... STUDY UP.... HAHAHAH
[truth] JESTER guess we should be thinking multiple currencies ....
[JESTER] THIS HELPS EXPLAIN.... https://www.newsmax.com/finance/peterreagan/china-gold-monetary-system/2017/09/09/id/812544/
[caro] Jester Ok thanks will study up lol
[JESTER] WILLIE HAS IT FIGURED OUT HE JUST CAN'T GET IT ALL IN ONE PLACE OR MAKE IT UNDERSTANDABLE AND TIED TOGETHER...
[JESTER] HIS FACTS ARE CORRECT EXCEPT HE THINKS THEY WILL INTRODUCE THE SCHIESS DOLLAR AND THE FED WILL STAY... I SAY THE FED BECOMES THE SCHIESS DOLLAR AND THE NEW ASSET BACKED WILL BE USED FOR TRADE... SDR OR WHATEVER YOU LIKE TO ALL IT...
[JESTER] THE WAY THAT EXISTS IS THE FED NOT AT ALL FEDERAL CENTRAL BANK VERSUS THE UST... WHICH WILL HAVE THE ASSET BACKED CURRENCY IN IT..
[JESTER] SDR'S WILL LIKELY BE USED INTERNATIONALLY AND THEY WILL BE THE TRADING MONEY I BELIEVE...
[truth] JESTER wow will need help in knowing what to do. Fin advisor, you have names?
[JESTER] truth WONT REALLY AFFECT YOU UNLESS YOU GO ABROAD... SHOULD NOT CHANGE THAT MIUCH HERE EXCEPT PRICES FOR IMPORT WILL RISE... WHICH IS GOOD REASON FOR TRUMP TO GET JOBS MOVING HERE AGAIN...
[alfonse] JESTER Does that not make investments by foreign corp's more profitable
[JESTER] alfonse AS THE DOLLAR DEVALUES IT WILL STILL BUY THE SAMEI THE US... IT WILL BUY LESS OVERSEAS... SO IF YOUR BUSINESS IS DENOMINATED IN DOLLARS DON'T YOU THINK IT WOULD BE BETTER TO BE HERE IN THE STATES? THAT IS WHAT HE IS TRYING TO DO... SMART ONES WILL COME BACK WHILE THEY CAN...
[JESTER] YOU GUYS TAKE IT EASY AND WE'LL SEE YOU AGAIN ON THURSDAY...
How China Just 'Reset' the Global Monetary System With Gold
By Peter Reagan Saturday, 09 Sep 2017
China is taking the next big step towards dethroning the dollar’s place as the number one reserve currency around the world. But the strategy behind this big move could send gold soaring.
International oil trade is the crux of the issue. For decades, the world’s largest oil importers have paid for oil using the petrodollar, which supports the dollar’s value and fuels U.S. government deficit spending (primarily because the petrodollar is backed by Treasuries).
But now, China is looking to upset the current petrodollar system by introducing gold-backed “petroyuan” oil futures contracts. And since China is the largest importer of oil globally, this massive shift away from the petrodollar could be bad news for the U.S. But it could be great news for gold owners. Here’s why…
Building the Petroyuan
In June, China took the first step towards overturning the petrodollar by establishing a direct-trade relationship with Russia allowing for oil purchases to be made strictly in yuan. And just like that, the petroyuan was born.
Not long after China’s new deal with Russia, Chinese officials began negotiations for a similar agreement with Saudi Arabia. But the discussion didn’t flow as smoothly as it did with Russia.
That’s why China is taking things one step further with these new gold-backed futures contracts...
Gold Solves Petroyuan Concerns
Russia welcomed the petroyuan with open arms. But other big oil exporters haven’t been as keen to embrace it. Despite rising concerns around the U.S. dollar’s stability and viability, the yuan is still too illiquid and unestablished globally in comparison, causing many exporters to shy away from accepting it.
But China has an ingenious way to solve this problem: Simply back the petroyuan with gold.
By introducing these new petroyuan oil futures contracts that are convertible to gold, China is effectively negating exporters’ fears of accepting the yuan as trade payment. Gold holds a significant draw for exporters over the yuan alone, and these new contracts are opening the door for the petrodollar to be overturned… permanently.
The Nikkei Asian Review reports:
Grant Williams, an adviser to Vulpes Investment Management, a Singapore-based hedge fund sponsor, said he expects most oil producers to be happy to exchange their oil reserves for gold. "It's a transfer of holding their assets in black liquid to yellow metal. It's a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air," he said.
Good News & Bad News
Depending on how your savings are invested, China’s new gold-backed petroyuan futures contracts could either be good news or bad news. Let’s get the bad news over with first…
With major oil exporters finally having a viable way to circumvent the petrodollar system, the U.S. economy could soon encounter severely troubled waters.
First of all, the dollar’s value depends massively on its use as an oil trade vehicle. When that goes away, we will likely see a strong and steady decline in the dollar’s value.
Second, the U.S. government relies heavily on the geopolitical bargaining power and benefits provided by the petrodollar system. Since the petrodollar is backed by Treasuries, the federal government depends heavily on it to fund deficit spending. Without the monetary support of the petrodollar, the U.S. government could soon find itself shouldering an even bigger debt burden than it already is (not to mention lawmakers’ current budgetary struggles and the approaching need for another debt ceiling increase).
But there are still very good news…
While the dollar and U.S. government brace for the crushing impact of China’s new game-changing oil trade instrument, there’s one asset that could benefit handsomely from this situation, and that’s physical gold.
For the first time since our nation abandoned the gold standard decades ago, physical gold is being reintroduced to the global monetary system in a major way. That alone is incredibly good news for gold owners. But that’s not all…
Think of it like this: Given the choice between trading in something backed by Treasuries (which can be created at-will from nothing by the U.S. government) or physical gold, what do you think exporters will prefer?
Not much of a question, the choice for gold-backed instruments over Treasury-backed is kind of a no-brainer…
As more and more nations pile into this new gold-backed oil trade instrument, global demand for physical gold will surge, giving gold prices a tremendous upward thrust.
All this is coming at a time when gold already has several bullish price drivers poised to drive it higher… China’s new gold-backed oil futures contracts are just icing on the cake.
https://www.newsmax.com/finance/peterreagan/china-gold-monetary-system/2017/09/09/id/812544/
[JESTER] HELLO AND HAPPY TUESDAY EVERYONE...
[caro] JESTER Jim Wiley says China is going to asset back their currency with oil, not going to use the petro dollar, where is China getting the oil?
[JESTER] caro THAT IS NOT EXACTLY CORRECT... THEY ARE BUYING OIL WITH GOLD BACKED YUAN OIL FUTURES CONTRACTS......
[JESTER] THEY ARE ALREADY TRADING WITH RUSSIA IN YUAN... SO THAT WAS THE START OF THE PETROYUAN..
[caro] Jester oh misunderstood it thanks for correcting me, and explaing that
[JESTER] BEEN TELLING YOU THE DOLLAR DECLINE WAS COMING... THIS IS WHAT IS HAPPENING.... STUDY UP.... HAHAHAH
[truth] JESTER guess we should be thinking multiple currencies ....
[JESTER] THIS HELPS EXPLAIN.... https://www.newsmax.com/finance/peterreagan/china-gold-monetary-system/2017/09/09/id/812544/
[caro] Jester Ok thanks will study up lol
[JESTER] WILLIE HAS IT FIGURED OUT HE JUST CAN'T GET IT ALL IN ONE PLACE OR MAKE IT UNDERSTANDABLE AND TIED TOGETHER...
[JESTER] HIS FACTS ARE CORRECT EXCEPT HE THINKS THEY WILL INTRODUCE THE SCHIESS DOLLAR AND THE FED WILL STAY... I SAY THE FED BECOMES THE SCHIESS DOLLAR AND THE NEW ASSET BACKED WILL BE USED FOR TRADE... SDR OR WHATEVER YOU LIKE TO ALL IT...
[JESTER] THE WAY THAT EXISTS IS THE FED NOT AT ALL FEDERAL CENTRAL BANK VERSUS THE UST... WHICH WILL HAVE THE ASSET BACKED CURRENCY IN IT..
[JESTER] SDR'S WILL LIKELY BE USED INTERNATIONALLY AND THEY WILL BE THE TRADING MONEY I BELIEVE...
[truth] JESTER wow will need help in knowing what to do. Fin advisor, you have names?
[JESTER] truth WONT REALLY AFFECT YOU UNLESS YOU GO ABROAD... SHOULD NOT CHANGE THAT MIUCH HERE EXCEPT PRICES FOR IMPORT WILL RISE... WHICH IS GOOD REASON FOR TRUMP TO GET JOBS MOVING HERE AGAIN...
[alfonse] JESTER Does that not make investments by foreign corp's more profitable
[JESTER] alfonse AS THE DOLLAR DEVALUES IT WILL STILL BUY THE SAMEI THE US... IT WILL BUY LESS OVERSEAS... SO IF YOUR BUSINESS IS DENOMINATED IN DOLLARS DON'T YOU THINK IT WOULD BE BETTER TO BE HERE IN THE STATES? THAT IS WHAT HE IS TRYING TO DO... SMART ONES WILL COME BACK WHILE THEY CAN...
[JESTER] YOU GUYS TAKE IT EASY AND WE'LL SEE YOU AGAIN ON THURSDAY...
How China Just 'Reset' the Global Monetary System With Gold
By Peter Reagan Saturday, 09 Sep 2017
China is taking the next big step towards dethroning the dollar’s place as the number one reserve currency around the world. But the strategy behind this big move could send gold soaring.
International oil trade is the crux of the issue. For decades, the world’s largest oil importers have paid for oil using the petrodollar, which supports the dollar’s value and fuels U.S. government deficit spending (primarily because the petrodollar is backed by Treasuries).
But now, China is looking to upset the current petrodollar system by introducing gold-backed “petroyuan” oil futures contracts. And since China is the largest importer of oil globally, this massive shift away from the petrodollar could be bad news for the U.S. But it could be great news for gold owners. Here’s why…
Building the Petroyuan
In June, China took the first step towards overturning the petrodollar by establishing a direct-trade relationship with Russia allowing for oil purchases to be made strictly in yuan. And just like that, the petroyuan was born.
Not long after China’s new deal with Russia, Chinese officials began negotiations for a similar agreement with Saudi Arabia. But the discussion didn’t flow as smoothly as it did with Russia.
That’s why China is taking things one step further with these new gold-backed futures contracts...
Gold Solves Petroyuan Concerns
Russia welcomed the petroyuan with open arms. But other big oil exporters haven’t been as keen to embrace it. Despite rising concerns around the U.S. dollar’s stability and viability, the yuan is still too illiquid and unestablished globally in comparison, causing many exporters to shy away from accepting it.
But China has an ingenious way to solve this problem: Simply back the petroyuan with gold.
By introducing these new petroyuan oil futures contracts that are convertible to gold, China is effectively negating exporters’ fears of accepting the yuan as trade payment. Gold holds a significant draw for exporters over the yuan alone, and these new contracts are opening the door for the petrodollar to be overturned… permanently.
The Nikkei Asian Review reports:
Grant Williams, an adviser to Vulpes Investment Management, a Singapore-based hedge fund sponsor, said he expects most oil producers to be happy to exchange their oil reserves for gold. "It's a transfer of holding their assets in black liquid to yellow metal. It's a strategic move swapping oil for gold, rather than for U.S. Treasuries, which can be printed out of thin air," he said.
Good News & Bad News
Depending on how your savings are invested, China’s new gold-backed petroyuan futures contracts could either be good news or bad news. Let’s get the bad news over with first…
With major oil exporters finally having a viable way to circumvent the petrodollar system, the U.S. economy could soon encounter severely troubled waters.
First of all, the dollar’s value depends massively on its use as an oil trade vehicle. When that goes away, we will likely see a strong and steady decline in the dollar’s value.
Second, the U.S. government relies heavily on the geopolitical bargaining power and benefits provided by the petrodollar system. Since the petrodollar is backed by Treasuries, the federal government depends heavily on it to fund deficit spending. Without the monetary support of the petrodollar, the U.S. government could soon find itself shouldering an even bigger debt burden than it already is (not to mention lawmakers’ current budgetary struggles and the approaching need for another debt ceiling increase).
But there are still very good news…
While the dollar and U.S. government brace for the crushing impact of China’s new game-changing oil trade instrument, there’s one asset that could benefit handsomely from this situation, and that’s physical gold.
For the first time since our nation abandoned the gold standard decades ago, physical gold is being reintroduced to the global monetary system in a major way. That alone is incredibly good news for gold owners. But that’s not all…
Think of it like this: Given the choice between trading in something backed by Treasuries (which can be created at-will from nothing by the U.S. government) or physical gold, what do you think exporters will prefer?
Not much of a question, the choice for gold-backed instruments over Treasury-backed is kind of a no-brainer…
As more and more nations pile into this new gold-backed oil trade instrument, global demand for physical gold will surge, giving gold prices a tremendous upward thrust.
All this is coming at a time when gold already has several bullish price drivers poised to drive it higher… China’s new gold-backed oil futures contracts are just icing on the cake.
https://www.newsmax.com/finance/peterreagan/china-gold-monetary-system/2017/09/09/id/812544/
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