Dollar no longer primary oil currency as China begin selling oil using YUAN

[Ticker]

that is your economic comeback to the question I proposed...okay I will remain 'there'. Look another shiny object over there...

India starts paying for Iranian oil with local currency
India starts paying for Iranian oil with local currency — Alexander's Gas and Oil Connections

ha ha ha ....

Tinker Head ..... you have no idea about this stuff. Therefore dance like a chilly, and burn yourself at places in the morning.

 

[Yogi]

Unless China stops artificial undervaluation of its currency its hard to see Yuan replacing USD any time soon in near future

 

[Mitro]

China has passed the U.S. to become the world's biggest energy consumer, according to new data from the International Energy Agency, a milestone that reflects both China's decades-long burst of economic growth and its rapidly expanding clout as an industrial giant.

China Becomes World's Biggest Energy Consumer - WSJ.com

See the link what is happening in last 24 hr

China in closed door negotiations to purchase Mexican crude oil without using US Dollar

China Becomes World's Biggest Energy Consumer - WSJ.com

Nigeria: China Replaces United States As Nigeria's Crude Oil Importer
allAfrica.com: Nigeria: China Replaces United States As Nigeria's Crude Oil Importer

China buying oil from Iran with yuan

BBC News - China buying oil from Iran with yuan


These step is going to effect the Dollar monopoly and ultimately make the dollar collapse.

 

[Ticker]

The announcement hold no value until Oil trading nations agree to trade in the RMB..

The current position seems to be a pact between China and Russia on settling oil trade between those two nations...similar to say hypothetically India paying Iran in INRs for oil..
Does not mean that oil now has a different mode of payment...

Currently the US Dollar holds the same value as what the Bullion used to be....it is what is used to measure the wealth/reserves of a country. This is not changing for a while...

Also do note that the US has quite a stronghold on the trade of oil being that US has provided for a ton infrastructure of oil producing nations (debts they are still paying off) or have strong links and pacts with these nations that I dont believe Chinese have the capacity to override (at least not where they are now)

What I said was that it will gradually have a major impact if the the Chinese could sustain it. The Chinese would not have done this unless they were ready for it - they say that they are. They are the second biggest economy in the world and when they make such an announcement, it needs to be taken seriously.

Currently, there are two major oil exchanges in the world, one in the US and the other in the UK, where the oil is bought and sold in mostly dollars. If these exchanges may also start floating RMB for oil sale purchase, it will bring in a change. If as a next step, the Chinese float their own oil exchange and lets say the Russians also do that, an alternative arises, with serious implications. Incidently, the Iranians also have a small oil exchange but could not establish it in a manner due to probable ramifications from the US.

India buying and giving rice or wheat is BS at the world level.

 

[JayAtl]

In 60s, when the US economy was in doldrums they went to the Saudis and in exchange for provision of certain guarantees, Saudi Arabia decided to sell oil only in dollars. OPEC followed suit because of Saudi Arabia. Everybody in the world needed dollars to purchase oil and therefore the US started printing paper and much more than it had collateral of. They changed their laws to make it legal.

Every body in the world bought US currency which the US printed in large numbers. And because everybody needed dollars, gradually dollar became the world currency, which at times analysts call the dollar domination of the world. US would and is still printing paper and purchasing stuff from the world over - and at a certain stage US also stopped telling the world how much does it print. Only the US now knows how many dollars are in circulation around the world. This practically runs the US economy.

Saddam Hussain was the first one to start using Euros for buying UN sponsored food exchange programme. And certain countries then started holding a percentage of Euros as their foreign exchange reserves. China, Russia, India and many other countries had around 15-20 % of their forex reserves in Euros. And then Euro collapsed.

An alternative currency has now been floated by the Chinese. It will have a major impact on world geo-economic environment if the Chinese can sustain it.

is this the economic backbone to your theory. I wish upon it so it will be. Per your analysis India's currency then has a head start as it was accepted as a form of payment ...

According to the Federal Reserve, there was $908.6 billion in the M0 supply stream as of July 2009 [source: Federal Reserve].
The Federal Reserve says that at any given time, between one-half and two-thirds of the M0 money stock of U.S. dollars is held overseas
All told, anyone looking for all of the U.S. dollars in the world in July 2009 could expect to find around $8.3 trillion in existence

Even though the Fed can't say precisely where all the U.S. dollars are in the world, it does try to keep track of how much exists. Not every nation in the world has a well-established central bank, though.

 

[Ticker]

Unless China stops artificial undervaluation of its currency its hard to see Yuan replacing USD any time soon in near future

I agree with you, but it will be gradually dealt with.

 

[SinoChallenger]

USA is trying hard to contain China but our military power is making even neo-cons like Michael Auslin shake in their boots!

http://www.defence.pk/forums/world-...panese-territorial-waters-15.html#post3438141

 

[fallstuff]

Ii itself it is a big deal. The point is mechanism is there for someone to pay in Chinese currency.

Its still a long way before it becomes the choice of trading for oil.

 

[manojb]

USA is trying hard to contain China but our military power is making even neo-cons like Michael Auslin shake in their boots!

http://www.defence.pk/forums/world-...panese-territorial-waters-15.html#post3438141

Wheres dollar, yuan, oil? Why r u you advertising your post?

 

[Ticker]

is this the economic backbone to your theory. I wish upon it so it will be. Per your analysis India's currency then has a head start as it was accepted as a form of payment ...

According to the Federal Reserve, there was $908.6 billion in the M0 supply stream as of July 2009 [source: Federal Reserve].
The Federal Reserve says that at any given time, between one-half and two-thirds of the M0 money stock of U.S. dollars is held overseas
All told, anyone looking for all of the U.S. dollars in the world in July 2009 could expect to find around $8.3 trillion in existence

Even though the Fed can't say precisely where all the U.S. dollars are in the world, it does try to keep track of how much exists. Not every nation in the world has a well-established central bank, though.

The Feds only tell you what they want to tell and if they want to tell you.

The geo-economic functionality is different than what you are highlighting here. And this is not what I am saying. Renowned world economists have talked about such an aspect on many different occasions. Read Batra's books, read the Black Swan and you may understand this schmuck.

Your response says that you have no knowledge about this.

 

[KingMamba]

USA is trying hard to contain China but our military power is making even neo-cons like Michael Auslin shake in their boots!

http://www.defence.pk/forums/world-...panese-territorial-waters-15.html#post3438141

Yeah OK, I got love for China but US would flatten your whole military within a couple of months if the war would be fought only through conventional means and I mean this with no disrespect. Your military is strong but US military is the strongest for good reason. In any said war the US would be more worried about the collapse of their economy than suffering military humiliation at the hands of the Chinese.

 

[Ticker]

Yeah OK, I got love for China but US would flatten your whole military within a couple of months if the war would be fought only through conventional means and I mean this with no disrespect. Your military is strong but US military is the strongest for good reason. In any said war the US would be more worried about the collapse of their economy than suffering military humiliation at the hands of the Chinese.

And you think China would let you flatten their army conventionally and nuclear brinkmanship would not come into play. At US - China level, and even at the level of all nuclear powers, such a specter is not within the realm of possibility.

 

[SinoChallenger]

Yeah OK, I got love for China but US would flatten your whole military within a couple of months if the war would be fought only through conventional means and I mean this with no disrespect. Your military is strong but US military is the strongest for good reason. In any said war the US would be more worried about the collapse of their economy than suffering military humiliation at the hands of the Chinese.

Still feeling inferior from 1950?

Where was the mighty USA military when we spanked Philippines earlier this year?
Where is the mighty USA military now as China is violating Japan's territorial waters every day?

 

[JayAtl]

ha ha ha ....

Tinker Head ..... you have no idea about this stuff. Therefore dance like a chilly, and burn yourself at places in the morning.

I hope you are not working on the headwinds of economic foretelling in your country.

let's see your theory

1. At last count, the yuan had only a 0.3 percent worldwide share of global foreign currency transactions, vs. 85 percent of dollars = China domination forth coming

2. The yuan isn’t freely convertible, and few foreign investors have unadulterated access to mainland financial markets= for you a Confidence for investors ( not)

3. China's overwhelmingly state-controlled banking system, means Chinese authorities enormous power over the flow of capital = confidence that politico can change at a whim = a good thing for you/ confidence ( NOT!)

Now my theory:

No real way to buy yuan,their financial stats are suspect, everybody knows they are manipulating the currency, china is slated to have a lot of internal strife because of its growth and you are reading/seeing this practically every week. only 12% of global reserves are expected to be held by yuan, by the most optimistic forecasting, by 2035. I have more reasons but I dont want to give information overload

Now I maybe a schmuck to you- but I'm certainly not a follower of pixie dust economics

 

[Ticker]

Still feeling inferior from 1950?

Where was the mighty USA military when we spanked Philippines earlier this year?
Where is the mighty USA military now as China is violating Japan's territorial waters every day?

Sir,

Militarily, US is a very strong nation. The above notwithstanding, US is the most powerful military nation in the world at this time.

I hope you are not working on the headwinds of economic foretelling in your country.

let's see your theory

1. At last count, the yuan had only a 0.3 percent worldwide share of global foreign currency transactions, vs. 85 percent of dollars = China domination forth coming

2. The yuan isn’t freely convertible, and few foreign investors have unadulterated access to mainland financial markets= for you a Confidence for investors ( not)

3. China's overwhelmingly state-controlled banking system, means Chinese authorities enormous power over the flow of capital capital = confidence that politico can change at whim = a good thing for you/ confidence ( NOT!)

Now my theory:

Not real way to buy yuan,their financial stats are suspect, everybody knows they manipulating the currency, china is slated to have a lot of internal strife because of its growth and you are reading/seeing practically every week.

I am talking geo-economy $hit head.

pata nahin kidhar kidhar se aa jatay hein ye log.