Sunday, September 17, 2017

Venezuela Just Stopped Accepting US Dollars for Oil As Countries Join Forces to Kill US Petrodollar

The DC War Party’s petrodollar imperialism, which funds the US war machine and allows for a constant war footing, is quickly running out of allies to maintain its global hegemony 


In what is the latest move to undermine the imperial world order maintained by the United States, which is underpinned through use of the petrodollar as the world reserve currency, the Wall Street Journal reports that Venezuelan President Maduro has officially followed through on his threat to stop accepting US Dollars as payment for crude oil exports in the wake of recent US sanctions.

Last Thursday, President Nicolas Maduro said that if the US went ahead with the sanction, Venezuela would “free” itself from the US Dollar.
According to Reuters:

“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro said in a multi-hour address to a new legislative “superbody.”

Unsurprisingly, Maduro noted that his country would look to the BRICS countries, and begin using the Chinese yuan and Russian ruble instead — along with other currencies — to bypass the US Dollar stranglehold.

“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro said.

Rather than work diplomatically with other nations, the United States often uses sanctions to force compliance. Due to the dollar being accepted as the world’s reserve currency, almost all financial transactions are denominated in dollars. This phenomenon gives the US a powerful weapon to wield against states that refuse to follow US directives, and underpins the unipolar model of global domination exercised by the US.

Caibflame

Venezuela Just Stopped Accepting US Dollars for Oil









5 comments:

André said...

When you know that the Venezuelan bolívar is pegged to US dollar (1 USD = 10 VEF) you understand that this news is just nonsensical joke.

It's just more evidence that even crazy left-wingers like Maduro (and their favourite journalists) don't have a clue about how the financial system works.

The monetarist theory is no conspiracy created by the neoliberal. It's plain ignorance created by most human beings.

Tom Hickey said...

And the yuan is pegged to the dollar to. So much for ditching the dollar.

Kaivey said...

There is no escaping the US hegemony.

André said...

Kaivey, Venezuela could float their currency. That would reduce their dependency on the US Dollar.

But most of their exports go to the US. And most imports come from the US. This kind of economic dependency is not easy to change...

Tom Hickey said...

The US colonized Latin America long ago and aims to keep it that way.

The US occupied Europe and Japan after WWII and aims to keep it that way.

This is the basis for the American Empire that the US now seeks to extend globally under the rubric "freedom and democracy."