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Breaking: Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales

USA has basically ruin USD system by sanctioning Russia, now many countries and (even businesses ) feel unsafe with their USD reserves, particularly the ones that think they ( or their countries) will be sanctioned by USA due to some issue in the future.
Yes, the financial implications are huge. A gold backed rouble, and perhaps an international yuan. The major players, Brazil, India etc, have not backed the US.

When the US says stand with us or them a lot of the world is saying'them'. This could be the end of the West as the dominant financial player.
 
You are looking at rebalancing measures:

1. Global trade with USA will be in USD.
2. Global trade with China will be in Yuan.

Predicted effects:

1. USD globally depreciates.
2. Yuan globally appreciates.

Americans will welcome a weaker USD in fact. They want to decouple from China and revive domestic manufacturing and improve their EXPORTS by extension.

Russia under Putin have made this possible.

From an american prespective, this should be a welcoming move into reviving old industries with new philosophies.

It is very welcome, but how many of the americans actually understand this given that their past 3 generations have only consumed and not produced in the right ratio to pick themselves up again.

I would say this will be a slow revival but ultimately good for the US industries.
 
From an american prespective, this should be a welcoming move into reviving old industries with new philosophies.

It is very welcome, but how many of the americans actually understand this given that their past 3 generations have only consumed and not produced in the right ratio to pick themselves up again.

I would say this will be a slow revival but ultimately good for the US industries.
You'd be surprised how whiny the new generation of Americans are milleneials, zoomer, whatever you call them.
Do you expect them to work in manufacturing??
 
wonder almost everyone can see it how come the White House can't?

The govt can not because they will lose grip on statusquo temporarily so their current priority will be to hold onto it.

But as economies work, the fallout will bring out the plan B as China took the opportunity of itself being poor back in the day.

You'd be surprised how whiny the new generation of Americans are milleneials, zoomer, whatever you call them.
Do you expect them to work in manufacturing??

This is exactly why there will be hardships for them in the transition and in a 2 or 3 generations. Things will change.


In the same aspect, Chinese youth of today will be what the millennials and zoomers are in the next coming decades.

Things will switch and dominance will change.

The world will progress in different polarity as it did in the last century
 
The discussion between Saudi and China have been ongoing for more than 5 years now. Saudi - US relationship has been a rumored quid pro quo deal from the 70s. If US is not willing to guarantee Saudi security interests like it promised to, then the Saudi have no reason to honor their commitment.

The Petro dollar phenomenon may be waning regardless of this move by Saudi's to accept part of the Chinese oil contracts for Yuan payment. In the coming decades, green energy technologies will slowly erode oil use - so this phenomenon always had an expiry date. Many analysts believe that even in a post oil world, the reserve currency status of USD is likely to continue because of US trade with countries and the geo political alignment of western world. Time will tell how things turn in the long run.

The only constant is change itself :cheers:
 
From an american prespective, this should be a welcoming move into reviving old industries with new philosophies.

It is very welcome, but how many of the americans actually understand this given that their past 3 generations have only consumed and not produced in the right ratio to pick themselves up again.

I would say this will be a slow revival but ultimately good for the US industries.

Yup.
We need industries in America back.
PS. I remember watching an interview of Ron Paul (father of Senator Rand Paul) some months ago. When Ron was asked why are we [Americans] giving so much money to China for manufacturing?? Ron wryly smiled and said: 'We give them paper and they give us real products back for that'.
 
Many analysts believe that even in a post oil world, the reserve currency status of USD is likely to continue because of US trade with countries and the geo political alignment of western world. Time will tell how things turn in the long run.

The only constant is change itself :cheers:

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People who make fun of dollar collapse keep in mind such things do not happen overnight but it takes time. But one thing is for sure it is heading in that direction it will be a gradual shift to non-dollar-related transactions but eventually it will happen.
A 1000 mile journey starts with the 1st step and when the caravan moves the dogs bark.
 
Truly sad moments for US lovers :lol:

You will see in time.
Nothing can challenge china's cheap labor force. That was why western companies transferred their production lines into China.

What can the west do after all?
 
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From an american prespective, this should be a welcoming move into reviving old industries with new philosophies.

It is very welcome, but how many of the americans actually understand this given that their past 3 generations have only consumed and not produced in the right ratio to pick themselves up again.

I would say this will be a slow revival but ultimately good for the US industries.

Indeed.

Glad to see a member who understands these matters. 👍

Americans have advocated for weaker USD before:



Americans were unable to control USD flows (and value by extension) but have found a solution finally. Putin gave it to them.

Weaker USD does not suggest that USA is finished. USA is 2nd largest NET EXPORTER of goods in the world:


Weaker USD can facilitate American manufacturing industrial growth and employment generation.

China has benefitted much from a controlled Yuan on the other hand. Chinese manufacturing industries remained globally competitive by extension.

With more and more transactions shifting towards Yuan, its value will appreciate over time and this dynamic will have wider implications for Chinese manufacturing industries among other effects.


China will have to re-adjust its economic system by extension. There are trade-offs in this matter.

Things are moving towards this direction:

1. Global trade with USA will be in USD.

2. Global trade with China will be in Yuan.

Predicted effects:

1. USD globally depreciates (revival of American domestic manufacturing and increase in NET EXPORTS possible).

2. Yuan globally appreciates (economic restructuring as the way forward).
 
Empireal over reach.

Indeed.

Glad to see a member who understands these matters. 👍

Americans have advocated for weaker USD before:



Americans were unable to control USD flows (and value by extension) but have found a solution finally. Putin gave it to them.

Weaker USD does not suggest that USA is finished. USA is 2nd largest NET EXPORTER of goods in the world:


Weaker USD can facilitate American manufacturing industrial growth and employment generation.

China has benefitted much from a controlled Yuan on the other hand. Chinese manufacturing industries remained globally competitive by extension.

With more and more transactions shifting towards Yuan, its value will appreciate over time and this dynamic will have wider implications for Chinese manufacturing industries among other effects.


China will have to re-adjust its economic system by extension. There are trade-offs in this matter.

Things are moving towards this direction:

1. Global trade with USA will be in USD.

2. Global trade with China will be in Yuan.

Predicted effects:

1. USD globally depreciates (revival of American domestic manufacturing and increase in NET EXPORTS possible).

2. Yuan globally appreciates (economic restructuring as the way forward).

Yes, but a side affect for the mid to long term will be high inflation, that will lead to lower living standards for the middle class in America.
 
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