China sees new world order with oil benchmark backed by gold
asia.nikkei.com
China sees new world order with oil benchmark backed by gold
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Re: China sees new world order with oil benchmark backed by gold
#2Meanwhile Wall Street is building its own block chain.
Should be an interesting transition off Brenton Woods.
Re: China sees new world order with oil benchmark backed by gold
#3Won't cryptocurrency allow them to circumvent the dollar ?
Re: China sees new world order with oil benchmark backed by gold
#4Meanwhile Wall Street is building its own block chain. Should be an interesting transition off Brenton Woods.
Bretton Woods was over in 1971...
Re: China sees new world order with oil benchmark backed by gold
#5Note, the whole purpose is to game sanctions the US has on Russian trade and other hostile regimes. But how profitable will this be?
"...Russia's 2013 nominal GDP was $2.1 trillion, and Italy's was $2.07 trillion, according to the World Bank. ... Italy's 2013 GDP per capita (per person) was $34,619, and Russia's was $14,612.Jul 27, 2014..."
http://www.politifact.com/truth-o-meter/statements/2014/jul/...
Sounds like China is backing the wrong horse[s]
Re: China sees new world order with oil benchmark backed by gold
#6"China's move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong."
It is not clear if the gold conversion can be into physical gold and shipped out of China. I would tend to doubt it, but would be a big deal if true.
Re: China sees new world order with oil benchmark backed by gold
#7The American Empire had a nice run. Continuously rising inequality at home and anti-hegemonic strategies (like this one) abroad signal that the end is nigh. What remains to be seen is how ugly things get during the transition.
Re: China sees new world order with oil benchmark backed by gold
#8"China's move will allow exporters such as Russia and Iran to circumvent U.S. sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong." It is not clear if the gold conversion can be into physical gold and shipped out of China. I would tend to doubt it, but would be a big deal if true.
Nationally they have > 1,800 tonnes[0] of the stuff as of 2017 – fifth in the world behind the US, Germany, Italy, France. Is that enough? Probably it would be simpler to do the transaction electronically in yuan but I would understand if people wanted something a bit more tangible. So the question is then, are there precedents to this flavo(u)r of trading setup/arrangement?
[0] https://www.statista.com/statistics/267998/countries-with-th...
Re: China sees new world order with oil benchmark backed by gold
#9The American Empire had a nice run. Continuously rising inequality at home and anti-hegemonic strategies (like this one) abroad signal that the end is nigh. What remains to be seen is how ugly things get during the transition.
Meanwhile, back in reality, the US median income is among thh highest on earth, US disposable income is among the highest on earth, US economic productivity is among the highest on earth, US technology advancement is among the best on earth, US unemployment is low, US wages have been typically climbing twice as fast as in the EU, American companies dominate the planet (outside of China), and in the last ten years that Europe has been mostly treading water economically the US added an economy the size of Germany.
Re: China sees new world order with oil benchmark backed by gold
#10The American Empire had a nice run. Continuously rising inequality at home and anti-hegemonic strategies (like this one) abroad signal that the end is nigh. What remains to be seen is how ugly things get during the transition.
As soon as I posted the above comment I started getting down votes so let me go into detail to hopefully stave off any negativity in what I think is a very important topic. Sorry, I know its not the done thing to talk about down-voting here :)
(1) Note that this article is _explicitly_ about changing the dollar-backed oil trading arrangements we have had up until now and even has the phrase “new world order” in the title.
(2) Another article[0] on the front page at the moment discusses the economic implications of the current rising inequality with “How do those who have less than nothing keep giving to the rich? Simple: they go deeper into debt, deeper into negative wealth. But how can that be sustained over a long time? Debts don’t need to be paid off, but they do need to be serviced.” The answer is historically speaking is with revolution.
Put (1) and (2) together and you do have a bit of a situation you must admit, no? Is it the phrase 'American Empire' that is being objected to? Fair enough, that's a bit of rhetoric on my part but American Imperialism[1] has got its own (rather long) Wikipedia page.
Disagree all you want but tell me why you disagree rather than thumbing that down button :)
[0] https://ergodicityeconomics.com/2017/08/14/wealth-redistribu...
[1] https://en.wikipedia.org/wiki/American_imperialism
edit: explaining the motivation for posting a follow-up