The imminent introduction of oil trading in yuan is a very bold move by the Chinese, because the US will not give up the basis of its hegemony – the dollar as the world’s reserve currency – without a fight, Max Keiser, host of RT’s financial program ‘Keiser Report’ has said.
The Chinese plan to roll out a yuan-denominated oil contract before the end of this year is a very brave move, since countries who “tried to exit the oil-dollar matrix have met terrible ends,” Keiser pointed out.
“Saddam Hussein wanted to trade oil in Euros and he was killed, Muammar Gaddafi wanted to trade his energy in something other than the US dollar – he was killed,” Keiser said.
China, however, has the resolve and the resources to pull-off the de-dollarization, and besides, it’s backed by several major countries which are “resistant to America’s financial cartel,” namely Russia and Iran, Keiser said.
“Kudos to China for taking this project on and of course they are rumored to be a big buyer in the Aramco offering of their state oil facilities coming down the pike,” Keiser said, referring to the anticipated sales of shares in the Saudi Aramco state oil company.
“This makes sense, geopolitical sense, in terms you’ve got China and Russia and the Saudis looking to escape the US dollar, US dollar hegemony.”
Saudi Arabia was pushed to the de-dollarization crowd only recently by the US itself, which, last year, allowed survivors and relatives of the victims of the 9/11 attack to sue the kingdom over its alleged role in the terrorist acts, Keiser stated.
“There’s decently motivation for the Saudis. They want to float Aramco, they are deeply in debt and they are running out of cash. And they wanted to do an APO [alternative public offering] of Aramco either on London or American exchange, but they prevented from doing so from the legal actions of the 9/11 survivors, who rightly pointed at Saudis as the cause of 9/11,” Keiser noted.
Countries worldwide are tired of funding the America’s “military adventurism by being a party to the ‘Empire of Debt,’ as it’s known around the world – the US dollar,” and therefore, will likely join the de-dollarization movement, Keiser said.
The US financial sector and its military-industrial complex are unlikely to give up the dollar hegemony without a fight, though, as the dollar is both the basis and the main product of America. And the US will use its other favorite tool for it – war, Keiser believes.“Maybe they will start a war between Japan and China, and maybe they will start a war with North Korea. America will do anything to keep the US dollar as the world’s reserve currency,” Keiser said.
“They will invade the countries, like Afghanistan, they will stop at nothing. Because this is the basis of the US empire. It’s not land-based, it’s not based on material goods, it’s based on rent-seeking. It’s based on landing dollars, getting out income and when countries can’t pay they dismantle the assets and take them over. We saw it in Latin America, South America, this is how America built its empire.”
Western capitalism wasn't really about capitalism, ie., hard work and reward. It didn't build it's own economy up through hard graft like the Chinese or Russians did. The Chinese made everything themselves, they did not exploit the rest of the world to build their modern society. The same with the Russians, but the West built it's wealth on third world exploitation through its empire of puppet regimes, and any regime that tried to be independent was smashed down, like Venezuela, or South East Asia, often by blanket bombing. The US, 'the liberators'.
ReplyDeleteSmedley Butler described American capitalism well, it was imperialism, that is, a racket, backed by gunboat diplomacy.
This exploitation gave Western capitalism the appearance of actually working, but without the stealing of other countries resources and turning their populations into slaves, the West would not have been so rich, and Microsoft and Silicon Valley would not have got their leg up.
And the West makes a lot of its money out of 'War is a Racket', not by proper hard graft, but by the selling of death, and often by starting conflicts to sell the weapons. And If the US loses the petrodollar, it's sunk.
I'm only talking here about the Western elite, not the American or European people, many of whom have also been exploited, and certainly work hard.
Foreigners aren't needed to "fund" the US military, any more than "grandchildren" have to pay back debt.
ReplyDeleteThe US doesn't "need" to export to get foreign currency to fund the military, on the contrary most countries want to export to the US to supplement their domestic aggregate demand shortfalls.
It drives me crazy when people talk about de-dollarization as if ordinary Americans benefit from losing jobs to foreigners when foreigners decide to save in dollars, or the lack of volatility and excess demand in the US dollar that prevents labor market equilibrium for decades, centuries at a time. Sure, millionaires and billionaires that consume the vast, vast majority of imported goods benefit from US Dollar fetishes and wide acceptance. Ordinary Americans, not so much, congress and the federal reserve have no idea how to manage fiscal space and employment, so when the external sector exports too much into the United States, poor and middle class suffer from low wage growth and bad labor markets, which also benefits the upper income people.
Enough with the stupid articles, pure Russian propaganda, as bad journalism as the NY Times or BBC, pure sewer sludge.
So you think the US won't mind losing the peteodollar because it won't make any difference.
DeleteThat's good news, then.
DeleteKaivey, no kind of capitalism is about hard work and reward. The definition of capitalism is that the owners of the means of production profit from others' labour. Don't confuse this because you allow capitalists to pigeonhole opposition to capitalism as opposition to hard work and reward. This inverts the truth which is that capitalists are getting the reward without doing work.
ReplyDeleteThank you, Jeff. Good point, and I agree with you.
DeleteNice speech by Trump up in Ohio today...
ReplyDelete