Petroyuan: The End of the US Dollar or a Globalist Con Job?

China began with their trading partner, Russia, by swapping goods in oil and refined petroleum transactions by agreeing that they would trade Russian rubles for gold and vice versa for the Chinese renminbi yuan.  This was the forethought into a launch of what could be a monetary unit that will be used by a multitude of powerful nations to, in essence, by-pass the US petrodollar.

The pretext for this is to eventually replace the US Dollar as the premier reserve currency.  This is important to many Western Civilization-hating nations like Iran and North Korea, where United Nation sanctions are killing their economies.  In Iran, despite the fact that Barack Hussein Obama gave them a huge economic and military boost by giving them the keys to nuclear armaments, continues to suffer financially in global markets because the new administration in the White House is not so trusting of the Islamic regime that has proven that it is no friend to freedom, democratic thought, or human rights.

As such, China and Russia are hoping to allow such countries the leisure of being able to by-pass these sanctions through a devotion to the new petroyuan system which will be their replacement for the US petrodollar as its reserve currency.  With the news that this launch will take place in a mere two months from now, the call has gone up from many financial quarters that this will be the death knell of the US Dollar and that we might as well hang it up now as there will be no more dominance of the Dollar in any market following this launch.

The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank.

“The solution to this is to replace the national currency with a global currency.”

The writing is on the wall for dollar hegemony. As Russian President Vladimir Putin said almost two months ago during the BRICs summit in Xiamen,

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.”

As Pepe Escobar recently noted, ‘to overcome the excessive domination of the limited number of reserve currencies’ is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar.

Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan. This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan – according to some – will be fully convertible into gold on both the Shanghai and Hong Kong exchanges.

The new triad of oil, yuan and gold is actually a win-win-win. No problem at all if energy providers prefer to be paid in physical gold instead of yuan. The key message is the US dollar being bypassed.

China’s plans for oil futures trading go back more than two decades, with the government introducing a domestic crude contract in 1993 and stopping a year later amid an overhaul of its energy industry. But in 2013, we first hinted at the birth of the petroyuan was looming…

In doing so China is effectively lobbing the first shot across the bow of the Petrodollar system, and more importantly, the key support of the USD in the international arena… setting the scene for the petroyuan.

And now, we are within two months of it becoming a reality as China prepares to roll out a yuan-denominated oil contract within the next two months…

Turn to the next page for the flipside of this equation, where it’s not so clear cut as to what the end game is and how it will be effected.  Read about the real reason for this panic!

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