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A Currency War Will Escalate as China’s ‘Petro-Yuan’ Is Set to Challenge One quote that always crosses my mind regarding the decline of the U.S. dollar and the state of geopolitics associated with it, is by Gerald Celente, founder of the Trends Research Institute who said that “When all else fails, they take you to war.” As the U.S. dollar continues to lose its status as the world’s premiere reserve currency, the reality of a world war seems inevitable, especially when major countries such as China, Russia and Iran are making strategic moves to bypass the U.S. dollar in favor of other currencies such as China’s ‘Petro-Yuan’. China has made the decision to price oil in their own currency the “Yuan” by a new gold-backed futures contract which will change the dynamics of the world’s economy. China is preparing to launch the petro-Yuan later this year that will eventually threaten the U.S. dollar as the world’s reserve currency. At the end of World War II, the international economic system was in shambles, so a plan was devised to create a new economic system. By July 1944, more than 730 delegates arrived at the United Nations Monetary and Financial Conference in Bretton Woods, New Hamphire and signed on to the historic Bretton Woods agreements which was a plan to set up a system of rules, regulations that eventually led to the creation of the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF). The IMF’s main purpose was to prevent any temporary imbalances of payments. The framework of the Bretton Woods agreements was to control the value of money between various countries. Each country had to have an established monetary policy that kept the exchange rate of its own currency within a fixed value in terms of gold. By 1971, the U.S. terminated the convertibility of the U.S. dollar to gold (at the time, the fixed rate of gold was at $35 an ounce) ending the Bretton Woods system allowing the U.S. dollar to become a fiat currency which has allowed central banks (especially the Federal Reserve bank) to “print money out of thin air.” China’s move will have consequences. For starters, it will certainly undermine Washington’s ability to impose economic sanctions on any nation at will and at the same time, will slowly diminish the purchasing power for U.S. consumers as imports become more expensive. China (the largest holder of U.S. debt) is the largest importer of oil, while Russia, one of the largest exporters of oil in the world have agreed to use the petro-Yuan to bypass the petro-dollar. The petro-Yuan threatens the U.S. dollar’s hegemony around the globe as several nations have recently demonstrated as they all share an interest in joining the transition from the U.S. dollar to the Yuan for oil transactions including Washington’s arch enemies Iran, Venezuela and even Indonesia (currently not on Washington’s hit list). The mainstream-media has been reporting on the latest developments concerning China’s plan to bypass the dollar and introduce the petro-Yuan to the international community in an article by CNBC titled ‘China has grand ambitions to dethrone the dollar. It may make a powerful move this year’:
Washington is on a collision course for another war with North Korea with U.S. President Donald Trump leading the charge. With the power of the U.S. dollar on life support, the U.S. empire of debt continues to use the threat of war and in some cases, wage actual wars around the world namely Iran, Syria and Venezuela which have been on Washington’s hit list for some time. Iran and Russia are already slowly transitioning away from the U.S. dollar to avoid any future economic sanctions imposed by Washington. Venezuela is also ready and willing to make its move against the U.S. dollar. Reuters did report on the decision made by the Maduro government to implement a new system of international payments for its oil exports. The report headlined with ‘Venezuela’s Maduro says will shun U.S. dollar in favor of yuan, others’ quoted what Maduro had said during a session of the National Constituent Assembly at Palacio Federal Legislativo in Caracas, Venezuela:
Another recent article published by CNBC ‘China will ‘compel’ Saudi Arabia to trade oil in Yuan — and that’s going to affect the US dollar’ interviewed Carl Weinberg a chief economist and a managing director at High Frequency Economics about how the US dollar will lose its global dominance in the near future once Saudi Arabia will be forced to use the petro-Yuan since China is the world’s top importer of oil:
The U.S. dollar is slowly losing its’ status as the world’s reserve currency, so is a war with China a possibility? Would the U.S. attack North Korea as a stern warning to China or would it bring China into the conflict in an attempt to save the U.S. dollar? Saddam Hussein wanted to trade in Euro’s instead of the U.S. dollar for Iraq’s oil exports and Libya’s Muammar Gaddafi wanted the Gold Dinar to dethrone the U.S. dollar in the continent of Africa. The decisions made by both Iraq and Libya had consequences that led to their destruction by U.S. and NATO forces. Can the U.S. do the same to China? I highly doubt it since China has a formidable military that can defend itself against any U.S. attack. China is certainly not Iraq nor Libya. So will there be a war against China in the long term? With the U.S. steadily collapsing at a slow pace, Washington would do anything to survive. The U.S. dollar supports the Military-Industrial Complex and its destructive and very expensive adventures around the world. The launch of the petro-Yuan will accelerate the process in what we can call De-Dollarization. However, there are some people in the mainstream-media that are not convinced that the petro-Yuan will overthrow the U.S. dollar anytime soon, for instance, David Fickling from Bloomberg News recently wrote ‘The Petroyuans time hasn’t come’ said:
James Rickards, the author of ‘Currency Wars: The Making of the Next Global Crisis’ will most likely disagree with Fickling’s analysis:
The U.S. dollar is failing because of Washington’s economic and foreign policies and its collusion with the Wall Street banking cartels, multi-national corporations and the Military-Industrial Complex. Max Keiser of The Keiser Report was interviewed on RT News and explained why the world is seeking to move away from the U.S. dollar:
Whether you agree or not, a currency war has begun and we are all going to be paying close attention in the coming months and years ahead to see how far Washington will go to maintain the supremacy of the U.S. dollar. So as China is getting ready to launch the petro-Yuan, is the U.S. willing to launch a war against North Korea? This article was originally published by Silent Crow News. The original source of this article is Global Research
Copyright © Timothy Alexander Guzman, Global Research, 2017
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