Incase you fags didn't know China is buying oil with Yuan now

James Garcia
James Garcia

Incase you fags didn't know China is buying oil with Yuan now
foreignpolicy.com/2018/01/18/chinas-bid-upend-global-oil-market-petroyuan-shanghai/

why is this a big deal
Because it upends the petrodollar (USD our fucking money)
how is that a big deal
Our shekels only have value from everybody else buying oil with petrodollars china buying oil limits our ability to print money and once other countries start trading in their USD for assets we will face hyper inflation.

This is why (((they're))) trying to take the guns. We are on the road to Weimerica and they can't stop it.

Attached: 1515205994153.jpg (59 KB, 464x405)

All urls found in this thread:

foreignpolicy.com/2018/01/18/chinas-bid-upend-global-oil-market-petroyuan-shanghai/
youtube.com/watch?v=djwPqAJ_3GY
thebalance.com/how-much-u-s-debt-does-china-own-417016
multpl.com/shiller-pe/
youtube.com/watch?v=5l4OEJ38aLY&index=4&list=RD8iwOQKnQUy0
investopedia.com/articles/forex/030616/why-chinese-yuan-pegged.asp

Jace Myers
Jace Myers

BUMP THIS IS HUGE
HAPPENING
WAKA WAKA JEWS ISRAEL AMERIMUTT
GET IN

Attached: sBJG8sT.jpg (60 KB, 1294x478)

Daniel Gutierrez
Daniel Gutierrez

The petrodollar explained:
youtube.com/watch?v=djwPqAJ_3GY

Cooper Martinez
Cooper Martinez

so? They buy american debt with dollar.
Stocking up on dollar like crazy

Robert Nguyen
Robert Nguyen

btw, OP is a faggot
Like always

Colton Torres
Colton Torres

Retard get out
THIS IS HUGE
JEWS MOSSAD GOYIM AMERIMUTT NIGGER CATTLE GET IN
REEEEEEEEEEE

Liam Gray
Liam Gray

WW3

WHEN

Joshua Lewis
Joshua Lewis

all caps
jes you shills are lame
Sold more btc for dollar

Tyler Gomez
Tyler Gomez

Our shekels only have value from everybody else buying oil
Um, no.

Think for just five seconds, you stupid piece of shit. If only US money is used for oil, then you're saying every other currency in the world is worthless.

What we can conclude is that you're a dumb motherfucker.

Nathaniel Reed
Nathaniel Reed

but they are everything else is trash get redpilled.

William Rodriguez
William Rodriguez

get redpilled.
GTFO
T
F
O

Ayden Russell
Ayden Russell

Ok, let me explain this to you goyim.

the US bonds/debt has been decreasing in price for the last decades
it is now worth 0% or close to 0% (interests rates are the price of debt)
since debt is worthless and there's a lot of it, no one will want to borrow
but this means the old debt can't be repaid, since new debt can't fund investment

Result:
Economic crisis, collapse, inflation, end of the US hegemony.

The stocks are already highly overpriced when adjusting for risk, which means there's a bubble, so the next realistic happening is the stock market crash. Things will accelerate from then on, with lots of happenings (crisis, conflict, possible small scale wars).

Mason Lee
Mason Lee

America’s entire foreign policy is based around the petro-dollar. China better watch the fuck out.

Dominic Young
Dominic Young

We had this thread like four times today.

Jaxson Sanders
Jaxson Sanders

All I can say is thank god for military industrial complex. China is about to get fucking raped.

Tyler Lewis
Tyler Lewis

This user gets it

Aiden Turner
Aiden Turner

JewSA on suicide watch

Wyatt Smith
Wyatt Smith

Now if Amerimutts increase the price of debt (fed interest rates), they will have to pay a lot on the total debt they have, which is huge.
This will lead to a crisis due to all the money pouring away from the economy.

If they devalue it more, inflation and a crisis due to bubbled assets will occur.

Either way, it's a Titanic.

Attached: Sunrise--Kauai.jpg (380 KB, 1600x1200)

Eli Long
Eli Long

30
What is so hard to understand about
GET
THE
FUCK
OUT

Carson Bailey
Carson Bailey

Time to bring the children of Roth down

Attached: 1816141071683.jpg (1.74 MB, 2976x2126)

Brayden Morgan
Brayden Morgan

Muah shill memes
lets use more memes
The goy will believe me if I use his language
GTFO
RRRRRRRRRRRRRRRREEEEEEEEEEEEEEEEEE

Xavier Fisher
Xavier Fisher

RIP everything we had maybe a decade left now we're bonned forever.

Juan Rogers
Juan Rogers

Goyim learn2money

Logan Garcia
Logan Garcia

So you are saying to do some brass balled speculation on companies that do a ton of business in China (E.G. Apple Computers) and then sell out before war starts?

Adam Baker
Adam Baker

Fed interest rates are short term interest rates used to incentivize lending so isn't that mechanism useful in stabilizing the price of debt issued by the gov?

Isaiah Jenkins
Isaiah Jenkins

they are actually intermarrying with a lot of chinese women lately

Josiah Diaz
Josiah Diaz

shut up you fucking kike, shitposting both sides doesnt help your outlook on the thread

not just the decade, we've been dead since we handed our industrialization to almost all of our companies to china, which was in the late 80s.

Cameron Fisher
Cameron Fisher

a memeflag coming for your rescue
triple reply
Jesus christ it is so obvious you are following a script that it is just embarrassing. A bot could do your work more efficient and cheaper
S to the e
Buying more dollar as we speak

Elijah Hill
Elijah Hill

Also, the fed rates are inversly related to inflation. Devalue the debt more = more inflation = dollar falls in price even more.

But if there's inflation, there's a bubble and a crisis waiting to happen.

STOCK MARKET CRASH IS THE NEXT BIG HAPPENING

THERE WILL BE LOTS OF NEW HAPPENINGS TO COME SOON

JEWS MOSSAD GOYIM AMERIMUTT NIGGER CATTLE GET IN
WAKA WAKA HAPPENING
REEEEEEEEEE

Jace Gonzalez
Jace Gonzalez

We are building a pipeline to ship oil to China because Obama did not want to upset the injuns about building a pipeline on Federal land.

Chase Cooper
Chase Cooper

why do you shit post this damn hard, did the shitty black dick thread, or your shitty liberal bait thread die sad lil paki.

Gavin Harris
Gavin Harris

Dude, at least Google "petrol dollar" before polluting the board with your ignorance.

Luke Stewart
Luke Stewart

Fuck off goy nigger

Jason Garcia
Jason Garcia

This is actually huge, but Sup Forums will ignore it in favour of IBS shit

Isaiah Cook
Isaiah Cook

Actually me old chum, if the Greenback lowers in value the OPPOSITE will happen with US equities -the US stock market will GO UP. Economics 101 bong. If you want recent proof of that look at Venuzula, it was the most devalued currency in 2017 and its stock market was the BEST performing.

Christopher Clark
Christopher Clark

The petrol dollar is the heart of the military industrial complex. It should be illegal for you to be this stupid.

Dominic Long
Dominic Long

it is very huge this is the end of the petro dollar, people still think we are huge but we arent, the shitty pedophillic war mongering boomer politicians killed this country, constant war made our outlook look terrible. Noone wants to invest in us anymore because we make expensive shit to anything at all.

Julian Carter
Julian Carter

ah, the great decline of the American Empire.

Brody White
Brody White

The fed can play one way or another, but it can't stop obeying the laws of monetary supply and demand in the long run.
If the fed decides to devalue the debt even more, the US bonds will get a junk status, the US will default on its debt, there will be a crisis due to a bubble forming due to inflation, or any combination of thereof.

Easton Harris
Easton Harris

the absolute state of your analysis

Alexander Long
Alexander Long

you dumb faggot

China, which owned an estimated $1.268 trillion in U.S. Treasuries, is the number-one investor among foreign governments, according to the June 2014 figures released by the U.S. Treasury. This amounts to over 21% of the U.S. debt held overseas and about 7.2% of the United States’ total debt load.

thebalance.com/how-much-u-s-debt-does-china-own-417016

why would China shoot itself in the foot as biggest investor in USA dollar ?

Jaxson Cook
Jaxson Cook

You are an idiot. Do you even know what a bubble is? Do you know what it means for the stock market to be overpriced?

If not, look at this:
multpl.com/shiller-pe/

The bubble is already worse than black Tuesday, and it keeps getting worse.

Hunter Lee
Hunter Lee

because they have brics, and the euros, along with most of the middle east shifting toward them. This isnt the 90s anymore.

Mason Wright
Mason Wright

Our shekels only have value from everybody else buying oil with petrodollars

Want to know how i know you know nothing about economics?

Oil purchases are one source of demand for dollars. There are innumerable others. Your desire for dragon dildos gives USD value.

Charles Lee
Charles Lee

I dont think this is as seismic shift as people think.

China buys heavily US treasuries, they have no interest in seeing the USD devalue since China exports to the US and relies on a relatively strong USD to buy all the plastic crap they make. Also the PetroYuan is a way for BRICS nations to trade Futures (a derivative) for speculation or hedging, on the price of oil - as opposed to buying and selling the underlying commodity Crude.

Aiden Morgan
Aiden Morgan

because they are trying to make an empire again they dont really need us because we had the powerful petro dollar, now they can trade with the new world bank they just made along with the entirety of Europe, india, and atleast all of the middle east.

Noah Ward
Noah Ward

CRP predicted this

Aiden Peterson
Aiden Peterson

No im not an idiot Bong; did you even read my post or were you too busy sucker mo's cock??

US equities are at a very late cycle, we are over due a bear market from two years ago. However, we are unlikely to see a major crash only adjustments as corporate america plays a shrew game - the biggest buyer of US equities is now the corporations themselves, preventing the market from stalling.

Caleb Cook
Caleb Cook

the chinks have dollars why would they want to devalue them
If they can increase the value of their currency of course they would want to devalue something they have magnitudes less control of

Benjamin Turner
Benjamin Turner

You still have a powerful PetroDollar Burger. The underlying US crude is traded in USD. The PetroYuan are Futures contracts for speculating and hedging purposes for BRICS nations.

Jaxon Nguyen
Jaxon Nguyen

he still thinks the us market still has major powers of the world

lol dude, our market is literally on death our housing market because noones buying houses, cars noones buying shit anymore, blame commie liberal millennials, really the only thing we have stable is oil and china is about to take that away.

William King
William King

The chinks DONT want a strong Yuan -they want a weak one, since they are the worlds biggest exporting nation. Sup Forums Sup Forums the most economically illiterate place on the internet.

Leo Cox
Leo Cox

the petrodollar doesnt really mean shit anymore, and chinas shit isnt speculation if they already have prepared traders and countries. They are also gold backed we arent.

Nicholas Howard
Nicholas Howard

In the category of "too irrelevant for mainstream media" then this appear to be potentially significant.

Jose Wood
Jose Wood

no they dont retard, they want to create a giant empire now xi is trying to start it, they are literally the industralization economic hot spot of this planet. Who wouldnt want a giant trading empire your still stuck in the 90s bong, get with the new times america is fucking dead and im going to commit suicide when chang comes and shoots me with his army rifle.

Tyler Rivera
Tyler Rivera

Attached: 1521570992785.jpg (56 KB, 416x448)

Justin Collins
Justin Collins

Good, face your real enemy or die.

Parker Kelly
Parker Kelly

So, who are the oil suppliers that are willing to sell their oil for yuan? That's right.

Juan Davis
Juan Davis

The stock market is in a serious bubble by all measures. It doesn't even matter who buys what from whom.

As for the debt, it's different now because the US can not devalue its own debt anymore without defaulting. The US played the game of debt devaluation throughout the last decades to fund its deficit federal spending for the military and the government - these times are over.

My bet on next big happenings:
Stock market crash
Recession and economic crisis
A couple of small wars
US debt crisis
Gradual end of the US hegemony

These happenings are actually realistic. We are a year or two away from the first happening.

Samuel Sanders
Samuel Sanders

I forgot the classic proverb "China always wants to be the chief global exporter and will do anything to maintain that position"

Juan Williams
Juan Williams

i wouldnt even say its that far from now we are that fucked

Lucas Adams
Lucas Adams

Sure would be tragic if their ports started exploding again.

Jayden Rivera
Jayden Rivera

Indeed that’s why China is gonna get some US freedom soon

Jordan Anderson
Jordan Anderson

the petrodollar doesnt really mean shit

The world still trades the underlying commodity Crude is USD. The petrodollar is very strong. Derivative futures contracts traded by BRICS nations are just derivatives for speculation and hedging.

no they dont retard, they want to create a giant empire now xi is trying to start it, they are literally the industralization economic hot spot of this planet.

China is the world's biggest exporter and most of that is in USD. They cannot overnight or even in ten years go from being an exporting economy to a consumer economy. China's middle class is growing but they are very much classed as an 'emerging economy'. What do they teach in economics over there?

These happenings are actually realistic. We are a year or two away from the first happening.

Aside from the stock market crash you predict everything else is already happening. My point is if a nation's currency devalues it's stock market WONT crash.

Easton Howard
Easton Howard

WHAT DOES THIS MEAN??? IS THIS THE HAPPENING WE'VE BEEN WAITING FOR??!

Attached: 1456586126136.jpg (222 KB, 569x721)

Joseph Lee
Joseph Lee

look at this retard lmao
pesos are valuable!!

Eli Davis
Eli Davis

youtube.com/watch?v=5l4OEJ38aLY&index=4&list=RD8iwOQKnQUy0
There is no time to explain, grab a kitchen knife and get into a canal.

John Hall
John Hall

The real question we should be asking ourselves is, "How do we profit from this?"

When am I supposed to buy-in, jew-sama?

Attached: 346457378.jpg (27 KB, 400x400)

Alexander Robinson
Alexander Robinson

You won't be shot.
You'll remain a client state that will steadily become ethnically Chinese.

China will rule the world, they want leal subjects to inhabit it.

Aaron Rivera
Aaron Rivera

The Chinese and Russians have created their own central banks. INVEST NOW

Lincoln Bell
Lincoln Bell

limits our ability to print money

ABOUT
FUCKING
TIME

Attached: wormwood-cleanses-turpitude.jpg (129 KB, 580x740)

Jackson Phillips
Jackson Phillips

ok dude keep believing that, sweaty stock and hedge fund investor, oh yeah what happened in 08 a stock market collapse, and dude print money was the only thing that saved us. If we didnt print money we would have died but we did die just not publicly known probably.

Alexander Taylor
Alexander Taylor

No. Not even close. At present Yuan backed Oil futures are just exotic derivatives for traders or a way for BRICS countries to manage risk, by hedging.

If the US was to actually default on it's debt then hat would be the real happening. This would cause a complete pull back of investment out of the US and it would lose it's safe haven status.

Josiah Lopez
Josiah Lopez

dumbf's tariffs
china will "negotiate" / god emperor 3.14-D anti-gravity checkers .meme
meanwhile, chinks collapse mutt economy

K E K
E__E
K E K

Attached: laying-plans-III-6.jpg (357 KB, 1280x498)

Josiah Thomas
Josiah Thomas

Losing a few shekels to take down their biggest rival? This is exactly the soft power play China would make they're sneaky and they work hard. That $ would ruin us but it's just a bit more work for the Chinese and they've been working hard for years. They think generationally unlike us high time preference Western barbariniggers.

Samuel Ward
Samuel Ward

dumbf's tariffs
mutt economy

communism w-w-w-works right fellow liburl you sure showed them

Jace Rivera
Jace Rivera

There are no dragon dildoes or other commerce without oil to move the goods brainlet. Oil makes your food and gets it to your door. Everything is oil based.

Isaiah Torres
Isaiah Torres

china ends up killing the federal reserve jew
How is this a bad thing long term?

Attached: 321321532125544.jpg (80 KB, 990x990)

Ethan Scott
Ethan Scott

Canada and Iran? Turkey already showed they're willing to buy literal ISIS oil and the EU will look the other way. What are we going to do bomb countries for trading with China?

Ryder Hall
Ryder Hall

Get Forex, short the dollar.
But it's way too early.

Carter Peterson
Carter Peterson

because me you and the other 300 million will have to suffer the wreckage.

Cameron Thompson
Cameron Thompson

GUYS I LEFT THE WINDOW OPEN AND THE BLINDS ARE VIOLENTLY BEING PUSHED AROUND ITS HAPPENING SUCK MY DICK RUSSIA IS USING THE EMPs TO NUKE MY TIMMIES HELP

Daniel Torres
Daniel Torres

You are all talking like if China has no debt either. They are also heavily in debt

Landon Gomez
Landon Gomez

short the dollar

Against what? Werent you just saying US equities will CRASH? Why would you short the USD if the US stock market crashes? That makes no sense, you would go long on the USD.

Besides the currency market is pure speculation for average joe retail spot punters like Sup Forums neets. The only people who know are the banks, because they are holding the 'stores of currencies'.

Hunter Baker
Hunter Baker

It's a good time for you to go spending in Burgerland bong you'll be rich over that looking at the strength of sterling again.

Mason Ross
Mason Ross

anything no Gordon Gekko deep-throating = muh Stalinism

Attached: pol-brains-trust.jpg (47 KB, 600x484)

Blake Brooks
Blake Brooks

Attached: david-foster-wallace.gif (828 KB, 320x179)

Asher Morales
Asher Morales

Chinese are not communist you massive retard, the only thing communist about them is the name.

Tyler Gomez
Tyler Gomez

Trump will make his move soon. China + America are getting rid of fiat bois

Connor Gonzalez
Connor Gonzalez

We are on the road to Weimerica and they can't stop it.
They're probably going to try. There's a reason Trump is pushing for military spending and domestic steel/aluminum production.

Attached: 1521376636192.jpg (55 KB, 627x477)

Angel Green
Angel Green

Because they get no good deal for the fucking trillion dollars? And its not to late to drop the current deals without going down the spiral.

Nolan Watson
Nolan Watson

Short the dollar against any stable currency when the debt and bond crisis comes.
A series of financial events will lead to the point where significant inflation will start, and a crisis similar to what happened to post-war Germany: inflation coupled with recession and crisis.

It will obviously not be as bad as it was for the Germans, but it was bad for the Soviets who had experienced the same fate the US is going through now: a loss of influence, devaluation of currency, and a loss of political relevance.

Gavin Russell
Gavin Russell

blame commie liberal millennials
Fucking commie boomers sold out American industry, and then collapsed the housing market. Millenials put themselves into debt to try and escape the boomer sanctioned poverty and it didn't work for most of them. Nobody is innocent; Blaming solely millennials for ~40 years of terrible policy is fucking stupid and I hope you're tortured and raped by niggers before you die.

Attached: 1512227273858.jpg (30 KB, 720x360)

Robert Torres
Robert Torres

No one is buying American debt except the Fed

Kek

Asher Ortiz
Asher Ortiz

If any of you Burgers get scared of the Chinks just buy only American and dont worry about those yellow slant eyed rice munchers, all of their stuff is plastic shit and a poor imitation of American / German / Jap engineering.

Good night and God bless Sup Forums and all Burgers

Andrew Baker
Andrew Baker

Its not so bad believe me as a survivor. At least you will learn lots of new skills.

Jeremiah Thompson
Jeremiah Thompson

They tried this before and it failed, what makes this time different?

Jeremiah Watson
Jeremiah Watson

This, start farming and canning people. Life goes on for those who adapt, and many of us will probably be happier in the long run anyway.

Attached: 1506913237192.jpg (121 KB, 768x1024)

Liam Sullivan
Liam Sullivan

They are still buying government bonds which is pretty much buying up US debt, since it always pays out. The current global economy post ww2 is a massive Jewish scam.

Nathaniel Perez
Nathaniel Perez

First Google and Facebook ban cryptocurrency ads and banks try to block people buying bitcoin. Trying to eliminate the economic escape hatch. Next, take the guns so there is literally no confrontation when the state goes bankrupt. Without these two pieces - banning cryptocurrency and banning guns - we are rats in a cage.

Logan Lewis
Logan Lewis

bumop

Isaac Flores
Isaac Flores

That is so much fucking bullshit, chinks produce most of the worlds shit that gets on your store shelves at a good quality and cheaply. Amerilards had a cheap life for decades just because of that. You projecting your chinkophobia here doesn’t change the fact that the US doesn’t produce anything anymore nor consume as much as needed post 2008.

Tyler Rogers
Tyler Rogers

Sorry signed off saw your reply.

Going long GBP/USD looks great now, slight retracement recently but right time to buy in. I see no reason why it cant go to 1.4250 next few days. That's over 100 pips at £10 a pip approximately for retail spot, plus 100 to 1 leverage, it's not a bad bet.

The US NFP next month will be another litmus test especially since the FED hike. If you fancied a punt I'd go long now and pull out if its look choppy just before April's NFP.

Ryan Baker
Ryan Baker

crashing this plane.
Fellow burger think about it..through the ashes a Phoenix is born. Think about Germany in the 20’s. Think about what was able to rise from it?
user...the fire rises

Landon Martin
Landon Martin

Our shekels only have value from everybody else buying oil with petrodollars
t. doesnt know how the dollar works

Oil is only one thing that makes the USD so powerful. Oil could be traded 100% in Yuan tomorrow and the USD would still dominate. What is the backing of the Yuan? How is China going to get other nations to use the Yuan over the USD? The Euro tried to compete with the USD and failed, China will be no different. This is just more China hysteria from the economic intellectual circles. I'm not saying we should ignore China or let them slide on their slyness, I'm just saying this is being overplayed.

Benjamin Adams
Benjamin Adams

US doesn’t produce anything anymore nor consume as much as needed post 2008.

US GDP is up $2.2 trillion since 2008 and it's bigger than the EU combined

Attached: usGDP.jpg (70 KB, 714x610)

Ryder Gutierrez
Ryder Gutierrez

also pic related

Attached: nwppkir.jpg (114 KB, 1168x407)

Juan Stewart
Juan Stewart

OK, we just attack the Chinese food supply using bio weapons. Then force them to forgive our debts for food.

Josiah Russell
Josiah Russell

Dragon dildos
I'm not the only one

Michael Edwards
Michael Edwards

Your dollars only have value because of oil trade since Nixon gringo. That's why your government is destroying the middle east. We all know this, as soon as a viable alternative to them comes, countries will rapidly flock to it since no one likes to be an economical satellite

Leo Edwards
Leo Edwards

hurr durr and backed by gold

Attached: central-bank-balance-sheet.jpg (31 KB, 500x531)

Jack Allen
Jack Allen

and other countries start trading in their USD
American education.
Also, do you know what punctuation is?

John Hill
John Hill

I literally just said Oil isn't the only thing that makes the dollar strong you retard.

Logan Green
Logan Green

Maybe we could do like WWII Germany and pay off debt by creating our own new currency?

Alexander Sanchez
Alexander Sanchez

Which is not true. Most of your questions are dumb and saying that the euro failed is simply a bad comparison and not completely true. European nations do trade between themselves and with africa in euros. Also you had economical power over europe since ww2. China on the other hand OWNS a huge juicy part of YOUR DEBT.
Deal with it mutt your era is coming to an end, both from within and without

Kevin Price
Kevin Price

so this is how democracy dies, with an oh shit i'm out of shekles.

Eli Gray
Eli Gray

Good. This is because China has become a capitalist state and now we need to actually compete again. Challenge accepted. Good to have an actual rival these days. Its been 20 years dammit! Last real competitor was Japan. That's a helluva good run on top. Lets see what we can learn from China. Take notes user!

Andrew Cooper
Andrew Cooper

The euro tried to get into the oil market which is what the yuan is doing, so no you're wrong. China owning US debt doesnt have much to do with oil trading.

Austin Thomas
Austin Thomas

In the weimar republic at least they introduced the rye mark which was backed by rye corn to put an end to hyperinflation

Carter Howard
Carter Howard

Third world war inbound my dudes.

Attached: 1519088666277.jpg (31 KB, 720x960)

Andrew Russell
Andrew Russell

Bullshit ww3 happens this year

Jeremiah Reed
Jeremiah Reed

Please educate me if I wrong, but we make the most food in the world, because of our extremely fertile heartlands. China ( and the world) needs our food more than we need cheaper plastic toys and shitty harbor freight tools.

In other words, the USA knows how to make toys and tools, really well too, so really we'd be better off being forced to buy american. Instead of buying a shitty screwdriver twice you only buy 1 american one. Its just a matter of how fast we could start up domestic production lines of , oh well, everything at walmart.

Also, we have 10,000 nuclear weapons and the strongest military force of all time.

Alexander Smith
Alexander Smith

Stock market crash in winter of 2019/spring of 2020. Predicted by the same guy who’s gotten every other stock market recession correct. He says this is gonna be the big one.
If we plan to have a war it will be end of 2019 to distract public from economic distaster.
Screen shot for posterity.

Attached: 406CA308-EF6D-40EE-913E-4AF84C89A2E8.jpg (98 KB, 1236x820)

Kayden Long
Kayden Long

This is a nothingburger. The yuan is unofficially pegged to the USD. You can get the same effect by denominating oil transactions in 15 cent pieces.

Robert Gray
Robert Gray

The yuan is unofficially pegged to the USD
source please or short explaination

Levi Rivera
Levi Rivera

1.268 trill is chump change for all the tech and industry the greedy old boomers sent the chinamen.

. USA is the world's foremost industrial power. China is a DPRK tier gook shithole

. USA is a festering, obese insane asylum living on credit. China is the world's foremost industrial power

Does it make sense now?

Sebastian Hall
Sebastian Hall

If only US money is used for oil, then you're saying every other currency in the world is worthless.

correct

Angel Allen
Angel Allen

investopedia.com/articles/forex/030616/why-chinese-yuan-pegged.asp

Oliver Butler
Oliver Butler

This was posted in some other thread but i'll post it here again for anyone that missed it:

How a fiat currency dies
Sat 8:09 pm UTC, 6 Jan 2018
posted by Tapestry
How quickly will the dollar collapse?

This might seem a frivolous question, while the dollar still retains its might, and is universally accepted in preference to other, less stable fiat currencies. However, it is becoming clear, at least to independent monetary observers, that 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 US 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.

Lucas Stewart
Lucas Stewart

Explaining the consequences of these monetary dynamics was the purpose of an essay written by Ludwig von Mises almost a century ago.[i] At that time, the German hyperinflation was entering its final phase ahead of the mark’s eventual collapse in November 1923. Von Mises had already helped to stabilise the Austrian crown, whose own collapse was stabilised at about the time he wrote his essay, so he wrote with both practical knowledge and authority.

The dollar, of course, is nowhere near the circumstances faced by the German mark at that time. However, the conditions that led to the mark’s collapse are beginning to resonate with a familiarity that should serve as an early warning. The situation, was of course, different. Germany had lost the First World War and financed herself by printing money. In fact, she started down that route before the war, seizing upon the new Chartalist doctrine that money should rightfully be issued by the state, in preference to the established knowledge that money’s validity was determined by markets. Without abandoning gold for her own state-issued currency, Germany would never have managed to build and finance her war machine, which she did by printing currency. The ultimate collapse of the mark was not mainly due to the Allies’ reparations set at the treaty of Versailles, as commonly thought today, because the inflation had started long before.

Cameron Rivera
Cameron Rivera

The dollar has enjoyed a considerably longer life as an unbacked state-issued currency than the mark did, but do not think the monetary factors have been much different. The Bretton Woods agreement, designed to make the dollar appear “as good as gold”, was cover for the US Government to fund Korea, Vietnam and other foreign ventures by monetary inflation, which it did without restraint. That deceit ended in 1971, and today the ratio of an ounce of gold to the dollar has moved to about 1:1310 from the post-war rate of 1:35, giving a loss of the dollar’s purchasing power, measured in the money of the market, of 97.3%.

True, this is not on the hyperinflationary scale of the mark – yet. Since the Nixon shock in 1971, the Americans have been adept at perpetuating the myth of King Dollar, insisting gold now has no monetary role at all. By cutting a deal with the Saudis in 1974, Nixon and Kissinger ensured that all energy, and in consequence all other commodities, would continue to be priced in dollars. Global demand for dollars was assured, and the banking system of correspondent nostro accounts meant that all the world’s trade was settled in New York through the mighty American banks. And having printed dollars to ensure higher energy prices would be paid, they would then be recycled as loan capital to America and her friends. The world had been bought, and anyone not prepared to accept US monetary and military domination would pay the price.

Bentley Campbell
Bentley Campbell

That was until now. The dollar’s hegemony is being directly challenged by China, which is not shy about promoting her own currency as her preferred settlement medium. Later this month an oil futures contract priced in yuan is expected to start trading in Shanghai.[ii] Only last week, the Governor of China’s central bank met the Saudi finance minister, presumably to agree, amongst other topics, the date when Saudi Arabia will start to accept yuan for oil sales to China. The proximity of these two developments certainly suggest they are closely related, and that the end of the Nixon/Saudi deal of 1974, which created the petrodollar, is in sight.

Do not underestimate the importance of this development, because it marks the beginning of a new monetary era, which will be increasingly understood to be post-dollar. The commencement of the new yuan for oil futures contract may seem a small crack in the dollar’s edifice, but it is almost certainly the beginning of its shattering.

America’s response to China’s monetary manoeuvring has always been that of a nation on the back foot. For the last year, the yuan has been rising against the dollar, following President Trump’s inauguration. Instead of responding to China’s hegemonic threat by increasing America’s role in foreign trade, President Trump has threatened all and sundry with trade restrictions and punitive tariffs. It is a policy which could not be more designed to undermine America’s global economic status, and with it the role of the dollar.

Ethan Morris
Ethan Morris

In monetary terms, this leads us to a further important parallel with Germany nearly a century ago, and that is the contraction of the territory and population over which the mark was legal tender then, and the acceptance of the dollar today. The loss of Germany’s colonies in Asia and Africa, Alsace-Lorraine to France, and large parts of Prussia to Poland, reduced the population that used the mark without a compensating reduction of the quantity of marks in circulation. Until very recently, most of the world was America’s monetary colony, and in that context, she is losing Asia, the Middle East and some countries in Africa as well. The territory that offers fealty to the dollar is definitely contracting, just as it did for the German mark after 1918, and as it did for the Austro-Hungarians, whose Austrian crown suffered a similar fate.

The relative slowness of the dollar’s decline so far should not fool us. The factors that led to the collapse of the German mark in 1923 are with us in our fiat currencies today. As von Mises put it,

“If the practice persists of covering government deficits with the issue of notes, then the day will come without fail, sooner or later, when the monetary systems of those nations pursuing this course will break down completely.”[iii]

Updated for today’s monetary system, this is precisely how the American government finances itself. Instead of printing notes, it is the expansion of bank credit, issued by banks licenced by the government with this purpose in mind, that ends up being subscribed for government bonds. The same methods are employed by all advanced nations, giving us a worrying global dimension to the ultimate failure of fiat currencies, whose only backing is confidence in the issuers.

Cooper Hernandez
Cooper Hernandez

Now that America is being forced back from the post-war, post-Nixon-shock strategy of making the dollar indispensable for global trade, the underlying monetary inflation of decades will almost certainly begin to be reflected in the foreign and commodity exchanges. There is little to stand in the way of the global fiat monetary system, led by the dollar, to begin a breakdown in its purchasing power, as prophesied by von Mises nearly a century ago. Whether other currencies follow the dollar down the rabbit hole of diminishing purchasing power will to a large extent depend on the management of the currencies concerned

How a fiat currency dies

The last thing anyone owning units of a state-issued currency will admit to is that they may be valueless. Only long after it has become clear to an educated impartial monetary observer that this is the case, will they abandon the currency and get rid of it for anything while someone else will still take it in exchange for goods. In the case of the German hyperinflation, it was probably only in the last six months or so that the general public finally abandoned the mark, despite its legal status as money.

Von Mises reported that throughout the monetary collapse, until only the final months, there persists a general belief that the collapse in the currency would soon end, there always being a shortage of it. The change in this attitude was marked by the moment people no longer just bought what they needed ahead of actually needing it. Instead, they began to buy anything, just to get rid of the currency. This final phase is what von Mises called the crack-up boom, though some far-sighted individuals had already acted well ahead of the crowd. Both these phases are still ahead for the American citizen. However, we can now anticipate how the first is likely to start, and that will be through dollars in foreign hands being replaced for trade purposes with the yuan, and then sold into the foreign exchanges.

Camden Hernandez
Camden Hernandez

Once the process starts, triggered perhaps by the petrodollar’s loss of its trade settlement monopoly, it is not beyond the bounds of possibility for the dollar to initially lose between a third and a half of its purchasing power against a basket of commodities, and a similar amount against the yuan, which is likely to be managed by the Chinese to retain its purchasing power. It will be in the interests of the Chinese authorities to promote the yuan as a sounder currency than the dollar to further encourage foreign traders to abandon the dollar. From China’s point of view, a stronger yuan would also help ensure price stability in her domestic markets, at a time when countries choosing to remain on a dollar-linked monetary policy will be struggling with rising price inflation.

There then emerges a secondary problem for the dollar. A fiat currency depends in large measure for its value on the credibility of the issuer. A weakening dollar, and the bear market in bonds that accompanies it, will undermine the US Government’s finances, in turn further eroding the government’s financial credibility. This will be happening after an extended period of the US Government being able to finance its deficits at artificially low interest rates, and is therefore unprepared for this radical change in circumstances.

Gavin Edwards
Gavin Edwards

As the dollar’s purchasing power comes under attack, lenders, whether they be those with surplus funds, or their banks acting as their agents, will increasingly take into account the declining purchasing power of the dollar in setting a loan rate. In other words, time-preference will again begin to dominate forward rates, and not central bank interest rate policy. This will be reflected in a significantly steeper yield curve in the bond market, forcing borrowers into very short-term financing or using other, more stable monetary media to obtain capital for longer-term projects. This, again, plays into the yuan becoming the preferred currency, possibly with a rapidity that will be unexpected.

The US Government is obviously ill-equipped for this drastic change in its circumstances. The correct response is to eliminate its budget deficit entirely, and refuse to bail out failing banks and businesses. Bankruptcies will be required to send surplus dollars to money heaven and therefore stabilise the dollar’s purchasing power. A change in the Fed’s attitude towards its banks and currency is, however, as unlikely as that of the Reichsbank subsequent to the Versailles Treaty.

Therefore, it follows that capital markets in dollars will inevitably be severely disrupted, and market participants will seek alternatives. Remember that the dollar’s strength has been based on its function in trade settlement and its subsequent deployment as the international monetary capital of choice. Both these functions can be expected to go into reverse as the trade settlement function is undermined.

Nathaniel Green
Nathaniel Green

Whether China will be tempted to employ the same methods in future to support the yuan as the Americans have during the last forty-three years for the dollar, remains to be seen. It may not be a trick that can be repeated. There is a great danger that a significant fall in the dollar will lead to global economic stagnation, coupled with escalating price inflation, affecting many of China’s trading partners. China will want to insulate herself from these dangers without adding to them by going for full-blown hegemony.

We are beginning, perhaps, to see this reflected in rising prices for gold and silver. China has effectively cornered the market for physical gold, the only sound money of the market that over millennia has survived all attempts by governments to replace it. Her central planners appear to have long been aware of the West’s Achilles’ heel in its monetary affairs, and have merely been playing along to China’s own advantage. As the dollar weakens in the coming years, her wisdom in securing for herself and her citizens the one form of money that’s no one else’s liability will ensure her survival in increasingly turbulent times.

Now that’s strategic thinking.

Jaxon Campbell
Jaxon Campbell

All part of the master plan.

Attached: 1522174392238.jpg (1.92 MB, 2424x3314)

Kayden Edwards
Kayden Edwards

It's why China is called a currency manipulator. The peg is maintained around ¥1 = 15 ¢

Evan Reyes
Evan Reyes

investopedia.com/articles/forex/030616/why-chinese-yuan-pegged.asp
ty

Liam Morgan
Liam Morgan

ours will have more "american carnage" to quote the dotard. i am sure you will have a laugh when you see the live leaks of 200kg panicked lardasses shooting each other with russian supplied ammo.

Henry Scott
Henry Scott

I don't see the problem?

You have to remember that the Chinese yuan is backed by the Communist Chinese government but not every Chinaman is a Communist. In fact I would say that less than 1% of Chinese Communists are actually Communists the rest just pay lip service to the term.

If America or anybody for that matter applies enough pressure in the right ways the Communist China party falls apart like the house of cards it is.

Cameron White
Cameron White

That is all well and good, but how do we fix it?

Lucas Perry
Lucas Perry

the chinks will sink their own government that brought hundreds of millions of people out of poverty if we put enough pressure on it
surely siege mentality won't exist

Attached: China-vs-Gordon-Chang.jpg (8 KB, 313x161)

Disable AdBlock to view this page

Disable AdBlock to view this page

Confirm your age

This website may contain content of an adult nature. If you are under the age of 18, if such content offends you or if it is illegal to view such content in your community, please EXIT.

Enter Exit

About Privacy

We use cookies to personalize content and ads, to provide social media features and to analyze our traffic. We also share information about your use of our site with our advertising and analytics partners.

Accept Exit