- Palisade Radio Published on Apr 1, 2018
Jamie discusses how the Chinese yuan gold backed system was initially conceived back in the year 2000. However, China did not hold that much gold. That has changed considerably, as they have been acquiring more and converting it into metric bars. They can now use these bars pay for energy with gold. These contracts are denominated in yuan and are directly convertible to gold. By using gold for energy, China is essentially saying that they will no longer pay in U.S. Dollars. This will lower the demand for ten-year treasuries as China will no longer need them. Many countries are likely to shift away from US Petrodollar system as a result. Chile, for example, produces 30% of the world’s copper and they are likely to start accepting gold instead.
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The dollar has appreciated considerably relative to gold over the past twenty plus years, and now gold needs to appreciate much more to function as money again. If ten percent of trades occur in gold, there will be supply problems in the west. They plan to use this as a mechanism to drain the west of their remaining reserves. The impetus for major oil producers to stop using the dollar will be greed as the U.S. is no longer the biggest buyer of oil. Asia is going to be the region with the most global growth for the conceivable future. China is rebuilding the historic silk road. Canada is in a tough situation as our large industries can’t move to Asia. They can’t easily ship oil to Asia and are stuck with the United States. Canadians need to learn how to position themselves.
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https://socioecohistory.wordpress.com/2018/04/02/jamie-carrasco-the-petrodollar-is-now-under-attack-will-die/