Wars To Protect The PetroDollar
Iran The Next Target. Will U.S. Attack North Korea As Well?
Conspiracy theorists have it the primary reason why U.S. invaded Iraq (and took out Saddam) is because he started selling oil in euros rather than dollars in 2000. The other reason being Israel has always wanted to exterminate all potential Arab challengers in the region.
Similarly, Libyan leader Muammar al-Gaddafi, who was murdered by Western-backed rebels in 2011, planned to create a gold-backed African currency called the Gold Dinar to compete with the dollar and euro. And he too is seen as another potential threat to Israel. His demise is therefore totally anticipated.
U.S. Will Attack Iran
Apparently, Iran too has been on the hit list at the same time. However, Iran is no Iraq or Libya, this Persian theocracy is no pussy but a nuclear power. Israel has to ensure Iran doesn’t have a chance to lob a nuke bomb toward Jerusalem before launching any attack. Obviously the self-proclaimed Jewish state isn’t that confident in the past. And Benjamin Netanyahu has been inciting wars against Iran at every available opportunity ever since. The pressure on U.S. whose Congress is known to be dictated by the Jewish state has intensified of late, as Netanyahu is now under tremendous pressure to step down over massive corruption charges, time is running out for him.
As it is now, Trump is expected to give Iran a though time by cancelling the Iran nuclear deal in May 2018. Unless Iran eats the humble pie, which is unlikely as Israel wouldn’t let that happens … expect massive unrest or even revolution in Iran very soon.
The PetroYuan Threat
At the same time, there is another pressing challenge coming from China – the Middle Kingdom is launching a new oil currency to challenge the PetroDollar called PetroYuan, expected to be launched as early as March 26, 2018, creating another reason why the U.S. must have Iran subjugated to make up the loss (to PetroYuan).
While military attack on China is next to impossible for the time being, taking on Iran is a different matter altogether. It looks time is ripe for U.S. to attack Iran because not only President Trump is a known puppet of financial cartel (PetroDollar) who also runs the military complex (they have been to a real war for half a decade now), Israel is also very desperate. ANd as such, the Iran war is basically a done deal.
The only question left is would the U.S. attack North Korea as a stern warning to China or would it bring China into the conflict in an attempt to save the U.S. dollar?
Will U.S. Attack North Korea?
One quote that always crosses my mind regarding the decline of the U.S. dollar and the state of geopolitics associated with it, is by Gerald Celente, founder of the Trends Research Institute who said that “When all else fails, they take you to war.”
As the U.S. dollar continues to lose its status as the world’s premiere reserve currency, the reality of a world war seems inevitable, especially when major countries such as China, Russia and Iran are making strategic moves to bypass the U.S. dollar in favor of other currencies such as China’s ‘Petro-Yuan’. China has made the decision to price oil in their own currency the “Yuan” by a new gold-backed futures contract which will change the dynamics of the world’s economy. China is preparing to launch the petro-Yuan later this year that will eventually threaten the U.S. dollar as the world’s reserve currency.
Can the U.S. do the same to China? I highly doubt it since China has a formidable military that can defend itself against any U.S. attack. China is certainly not Iraq nor Libya. So will there be a war against China in the long term? With the U.S. steadily collapsing at a slow pace, Washington would do anything to survive. The U.S. dollar supports the Military-Industrial Complex and its destructive and very expensive adventures around the world.
Max Keiser of The Keiser Report was interviewed on RT News and explained why the world is seeking to move away from the U.S. dollar:
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”
Whether you agree or not, a currency war has begun and we are all going to be paying close attention in the coming months and years ahead to see how far Washington will go to maintain the supremacy of the U.S. dollar. So as China is getting ready to launch the petro-Yuan, is the U.S. willing to launch a war against North Korea?
China’s Ambitious Petroyuan
In 2018 the dollar’s primacy will be challenged by the yuan as the pricing medium for energy and other key industrial commodities. After all, the dollar’s role as the legacy trade medium is no longer appropriate, given that China’s trade is now driving the global economy, not America’s.
At the very least, if the dollar’s future role diminishes, then there will be surplus dollars, which unless they are withdrawn from circulation entirely, will result in a lower dollar on the foreign exchanges. While it is possible for the Fed to contract the quantity of base money (indeed this is the implication of its desire to reduce its balance sheet anyway), it would also have to discourage and even reverse the expansion of bank credit, which would be judged by central bankers to be economic suicide. For that to occur, the U.S. Government itself would also have to move firmly and rapidly towards eliminating its budget deficit. But that is being deliberately increased by the Trump administration instead.
Birth Of The Petroyuan
China, the second largest economy, and largest oil importer is expected to launch its yuan-denominated crude oil futures contract, also known as the petroyuan, on the Shanghai International Energy Exchange (INE) after the State Council approved the mechanism.
Futures contracts are legal agreements to buy or sell a particular commodity for a predetermined price at a specified future date. According to an official at the INE, the financial mechanism will be launched on March 26.
Currently, almost all international oil trade is dependent on U.S. dollars. The yuan-denominated futures contract is an attempt to shift oil trade out of petrodollars, giving China more clout on crude pricing and opening the possibility of the Chinese currency to play a more prominent role in global trade.
Eroding Petrodollar Vs. Rising Petroyuan
In the late 20th century, US petrodollar dominated the world economy. In the 21st century, we are witnessing the rise of the Chinese petroyuan.
According to SWIFT, US dollar still accounts for 39% of international payments, as opposed to the euro (33%), the English pound (7%), Japanese yen (3%) and Chinese yuan (28%). But times are changing. In October 2017, China established a payment versus payment (PVP) system for transactions involving Chinese yuan and Russian ruble. The China Foreign Exchange Trade System (CFETS) hopes to launch similar systems with other currencies based on China’s huge multi-decade, multi-trillion One Belt One Road (OBOR) initiatives.
Petrodollar And Possibility Of North Korea War
At the end of World War II, the international economic system was in shambles, so a plan was devised to create a new economic system. By July 1944, more than 730 delegates arrived at the United Nations Monetary and Financial Conference in Bretton Woods, New Hamphire and signed on to the historic Bretton Woods agreements which was a plan to set up a system of rules, regulations that eventually led to the creation of the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF). The IMF’s main purpose was to prevent any temporary imbalances of payments. The framework of the Bretton Woods agreements was to control the value of money between various countries. Each country had to have an established monetary policy that kept the exchange rate of its own currency within a fixed value in terms of gold. By 1971, the U.S. terminated the convertibility of the U.S. dollar to gold (at the time, the fixed rate of gold was at $35 an ounce) ending the Bretton Woods system allowing the U.S. dollar to become a fiat currency which has allowed central banks (especially the Federal Reserve bank) to “print money out of thin air.”
Washington is on a collision course for another war with North Korea with U.S. President Donald Trump leading the charge. With the power of the U.S. dollar on life support, the U.S. empire of debt continues to use the threat of war and in some cases, wage actual wars around the world namely Iran, Syria and Venezuela which have been on Washington’s hit list for some time. Iran and Russia are already slowly transitioning away from the U.S. dollar to avoid any future economic sanctions imposed by Washington. Venezuela is also ready and willing to make its move against the U.S. dollar. Reuters did report on the decision made by the Maduro government to implement a new system of international payments for its oil exports. The report headlined with ‘Venezuela’s Maduro says will shun U.S. dollar in favor of yuan, others’ quoted what Maduro had said during a session of the National Constituent Assembly at Palacio Federal Legislativo in Caracas, Venezuela:
Venezuela shares China’s interest in challenging United States control over the global financial system.
Venezuela shares China interest in challenging United States control over the global financial system, mainly due to the strict U.S. economic and financial sanctions that have gravely affected the Venezuelan people and their quality of life.
Venezuela’s President Nicolas Maduro announced the creation of a cryptocurrency backed by the country’s oil, gas, gold, and diamond reserves dubbed the Petro on Dec. 3, 2017, to counter the economic blockade, giving Venezuela new ways of accessing the international market.
According to Venezuela’s Ministry of Foreign Trade, so far a group of Brazilian investors has expressed interest in purchasing US $300 million worth of Petros and countries like Poland, Denmark, Honduras, Norway, and Vietnam are willing to receive the cryptocurrency as payment for exported goods to Venezuela.
In a bid to strengthen the new digital currency, last week Maduro said he will propose an oil-backed joint cryptocurrency to the Organization of the Petroleum Exporting Countries (OPEC).
Another recent article published by CNBC ‘China will ‘compel’ Saudi Arabia to trade oil in Yuan — and that’s going to affect the US dollar’ interviewed Carl Weinberg a chief economist and a managing director at High Frequency Economics about how the US dollar will lose its global dominance in the near future once Saudi Arabia will be forced to use the petro-Yuan since China is the world’s top importer of oil:
Carl Weinberg, chief economist and managing director, said Beijing stands to become the most dominant global player in oil demand since China usurped the U.S. as the “biggest oil importer on the planet.”
Saudi Arabia has “to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf U.S. demand,” Weinberg said. “I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them”