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There is an interesting article I read today reflecting opinions by Max Keiser [1]. He hosts the financial show called the Keiser Report on RT News.
According to him the Yuan backed gold currencies used for oil derivative contracts might not be so easy to trade. Due to resistance from the USA since it’s a threat to the petrol dollar oil trade.
Now this is the interesting part that many readers need to contemplate. Iraq and Libya wanted to trade crude oil in different currencies besides the dollar. In fact Mohammed Gaddafi wanted to have a gold backed African currency called the Gold Dinar in order to pay for crude oil used by African nations [2].
Will there be a future war between USA and China over the Petrol Dollar dominance? The possibility is already occurring with disputes over the territory in South China Sea and USA Naval vessels challenging the freedom of navigation.
However China is a significant military power compared to former Iraq and Libya hence for now we might just see other forms of resistance to the yuan backed gold oil trading. I suspect this might come in the form of trade wars between USA and China.
The aim will be to weaken the yuan currency and more show of force by the USA Navy in the South China Sea until some provocation occurs.
Interesting development to follow.
References:
[1] https://www.rt.com/business/407789-us-petro-dollar-yuan/
[2] https://sputniknews.com/politics/201603171036485001-gaddafi-gold-story/
[3] http://www.thedailyeconomist.com/2017/09/china-ready-to-crush-petrodollar-and.html