On March 26 China will finally launch a yuan-dominated oil futures . Over the last decade there have been a number of “false-starts,” but this time the has gotten approval from China’s State Council.
Adam Levinson, managing partner and chief investment officer at hedge fund manager Graticule Asset Management Asia (GAMA), already that China launching a yuan-denominated oil futures contract will shock those investors who have not been paying attention.
But this isn’t just some slow, news day “fad” that will fizzle in a few days.
Back in 2015, the first of a number of strikes against the petrodollar was dealt by China. and towards the yuan and other Asian .
During the same year China also developed its , while the yuan was beginning to establish more dominance in the European markets.
But the U.S. petrodollar still had a fighting chance in 2015 because China’s oil imports were all over the place. Back then, Nick Cunningham of …
That problem has since gone away, signaling China’s rise to oil dominance…
The petrodollar is backed by Treasuries, so it can help fuel U.S. deficit spending. Take that away, and the U.S. is in trouble.
It looks like that time has come…
Beijing can exert some real leverage over Saudi Arabia to pay for crude in yuan. It’s suspected that this is what’s motivating Chinese officials to make a full-fledged effort to renegotiate their trade deal.
So fast-forward to now, and the final blow to the petrodollar could happen starting on . We hinted at this possibility back in …
Once the oil markets are , the yuan has an to become the dominant world currency overall. This will further weaken the dollar.
Amongst all the trouble ahead for the dollar, there are some good news too. The U.S. might have ditched the gold standard in the 1970’s, but with gold making a return to world headlines… we could see a .
A reintroduction of gold to the global economy could result in a notable rise in gold prices. It’s safe to assume exporters are more likely to over one created out of thin air any day of the week.
Soon after, we could see more and more nations jump on the bandwagon, resulting in a substantial rise in gold prices.https://www.zerohedge.com/news/2018-03-22/china-one-signature-away-dealing-dollar-death-blow