Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China

Why is Russia looking after its own economical interests sending "Shockwaves" to the west? We couldn't be that gullible to believe Russia would look out after our interests, could we?

deadcalm

As I said you have your head in the sand

reply to post by TritonTaranis

 

Are you kidding me...China has no wealth? You literally have no clue what you are talking about.

Let me take you back to school.

China imported more physical gold last year than the entire world output.

It’s Official: China Consumed, Mined & Imported The Most Gold Ever In 2013

HERE

Did you read that?? China has been buying every ounce of physical gold it can get it's hands on since 2011. Now along comes this trade deal between Russia and China. Now...with demand for physical gold at an all time high...ask yourself why the price of gold hasn't went sky high??

The following artice details how China is using the US gold paper market AGAINST them....in order to import gold at rock bottom prices....absolutely brilliant move on China's part.

How China Imported A Record $70 Billion In Physical Gold Without Sending The Price Of Gold Soaring

Zero Hedge Article....HERE

I suggest you quit listening to retards and watch this...

Now why do you suppose China would want to buy so much physical gold???

I'll tell you....China and Russia are planning to crush the petro dollar....and in that scenario.....he who holds the most gold wins!!

But Reuters notes that Russia may be mere months away from signing a bilateral trade deal with China, where China would buy huge quantities of Russian oil and gas.

Zero Hedge argues:

Add bilateral trade denominated in either Rubles or Renminbi (or gold), add Iran, Iraq, India, and soon the Saudis (China’s largest foreign source of crude, whose crown prince also happened to meet president Xi Jinping last week to expand trade further) and wave goodbye to the petrodollar.

In any event, a switch to pricing petroleum in anything other than dollars exclusively – whether a single alternative currency, gold, or even a mix of currencies or commodities – would spell the end of the dollar as the world’s reserve currency.

For that reason, Sinclair – no fan of either Russia or Putin – urges American leaders to back away from an economic confrontation with Russia, arguing that the U.S. would be the loser.

Putin Has Nuclear Economic Bomb

On Russia countering Western sanctions, Sinclair says watch the “struggling dollar” and Russia accepting any currency for oil and natural gas. Sinclair explains, “It’s struggling . . . because it smells the real teeth of retaliation for sanctions being in the simple acceptance of any currency whatsoever for payment for gas to Europe. Believe me, they will settle in other currencies. . . . It makes energy cheaper. Why in the world would anyone want to pay in dollars if they can pay in their own currency? Russia could retaliate in a way that would have phenomenal impact on the U.S. dollar. . . . Russia has the upper hand. They have it in their ability to turn the U.S. economy upside down and into collapse. There is no question whatsoever. Putin doesn’t need a nuclear bomb. He has a nuclear economic bomb that he can set off at any time.”

Article...HERE

Meanwhile...in the US...this is what's happening....

Typical American arrogance...but I can ASSURE you that it will not continue for much longer.

OMG

Really?

LMAO

So China has been going on a gold buying spree since 2011, what's that like a blink of an eye in retrospect to the Wests? Give me a break will you you're falling hook line and sinker like everybody else

Wooppy doo we iz collecting collecting now

The west has been hoarding Gold for many many century's, long before China was invested in by the elites and western world for cheap labour

Please do some learnings and engage common sense, buying gold for a couple of years or even a decade is not even close to comparable to the Wests century's of hoarding and certainly not on the scale of the elites private hoardings which are not on any lists we can publicly view, I guess like China's secret of the books debt monster in a way? it's just laughable you almost didn't get a reply post, but hey hoo I feel I must school you

www.wealthdaily.com...

Your also not factoring in the vast hoardings of western elite who hold more gold than most country's on the list, one or a collection of them recently tried to buy the UK

www.theguardian.com...

Let see if you're deluded as I know you're, if china ever drop the reserve with Russia, then they get each other but not much else, they will find themselves competing alone against the west and her allies with a new currency also, one which is backed by tens possibly hundreds of times more gold... the world will be set on fire at first tho that I'm sure off, but the fact still remains, the west is holding "all the cards" and all the real wealth too

I fail to see how China Russia will fare very well being locked into trading with only each other and with a limited number of 3rd worlds. Where as before the west pumped investment in, bought all there exports in terms of resources & goods.

Christ I'll stop there because it's laughable,

Let's just see what happens in the aftermath of a collapse, most country's now actually want and need the collapse to happen the west, Russia and China are only playing into western hands, I bet the can't wait to wipe the debslate clean and start over with a one world currency excluding China & Russia

reply to post by TritonTaranis


dailyreckoning.com...

Remember, the last “official” announcement detailing China’s gold holdings was in 2009 – ringing in a total of 1,054 tonnes. Compared to their previous official holding, announced six years prior, the new total represented a dramatic 75% increase in Chinese gold holdings.

Much time has passed since the latest official announcement – and China’s gold holdings have surely risen higher. Indeed, a year ago, when we touched base on this topic, we ascertained that China was likely holding 3,300 tonnes of gold – that’s about three times the current “official” holdings.

Flash forward to today and the strategic Middle Kingdom is surely holding even more gold. Just take a look at their import patterns over the last 12 months…

China is the worlds leading gold producer as well as the worlds leading gold importer as of 2014.

Starting at the time of China’s last official announcement, we’d need to add another 2,873 tonnes to China’s “official” holdings, just to account for imports and domestic production alone. That would put China’s current “known” holdings at 3,927 – well above Germany as the second largest gold holding nation in the world.

What if China has been much more quiet about how much gold they are importing than what they are reporting?

When you start adding up the stealthy, hard-to-track sources of gold – black market gold from Africa and South America (and maybe Iran) exports, global gold mining from semi-national Chinese firms or buyouts, and the idea that China is urging their own citizens to hoard gold – you’ll notice that China’s gold hoard is closer to 7,000 tonnes, or more!

7,000 tonnes is close to what the US claims it has in gold reserves, but nobody knows for sure since they won't let anybody audit, or even look at any of it since 1953.

I wonder why they don't want an audit on US gold? There has'nt been one done in over 60 years after all, about time right? Who knows if Ft. Knox is not full of gold plated tungsten?

Funny thing too, right after that the government started selling off its gold from about 20,000 tonnes to 8,000 tonnes then they said that they just suddenly stopped selling it.

But hey, its not like they have a good reason to lie about it or anything, right? It's not like they have been intentionally dumping gold on the world markets to manipulate prices right? (just google it, lots of good info for you there.)

Just ask the germans, who keep asking for a proper audit on their gold for several years now. Such a lack of transparency opens the door for abuse, do you really trust the US capitalist, politicians and banksters so much? I don't think that Ft. Knox is completely devoid of gold, but seriously, its certainly possible if not probable that US gold reserves are lower than what they report it as.

What does gold have to do with anything? If Putin insists that China pay for gas in gold, China will buy its gas elsewhere. In any event, no-one seems to think China is going to cut a gas deal with Russia but Putin. Here is what Xinhua, China's official news agency has to say about Putin's 'deal': nothing.

If you guys wNt to believe that then fine but china collecting gold for the past decade isn't quite the 800 years the west has been hoarding for

en.wikipedia.org...

China may well be the worlds largest gold mining country but the US and Australia both collectively mine more gold and they both come under the WEST

The two country's within the west that mine more... We're talking about a new western backed currency to rival China's right?

Please correct me if I'm wrong

That would also be added to the additional holdings of western countries?


Ok sure they could crash the dollar and build a new currency but that would crash the global economy and another will have to replace it

Debt would be wipe of since it would be considered an act of war and the west as they're as of now would build a new currency with hundred times the gold backed by Russian and Chinese

As I said dreamers utter dreamers, I'd be willing to bet that the west is also. Egging for china and Russia to make this move

reply to post by TritonTaranis

How China Imported A Record $70 Billion In Physical Gold Without Sending The Price Of Gold Soaring

A little over a month ago, we reported that following a year of record-shattering imports, China finally surpassed India as the world's largest importer of physical gold. This was hardly a surprise to anyone who has been following our coverage of the ravenous demand for gold out of China, starting in September 2011, and tracing it all the way to the present.

www.zerohedge.com...

There you go Dave......happy to help.....fresh off the press this morning......loads of pretty charts and graphs for you to digest too.

Rainbows
Jane

PS....this happened last night too....

EU Agreed Banking Union Yesterday - Global Bail-Ins Cometh ...

A political solution needs to be found as governments continue to opt for economic sanctions of various degrees, it could degenerate into a full blown trade and economic war. Were this to occur the benefits of free trade and globalization that we have seen in recent history would be at risk - creating real challenges for the global economy.

The premiums that risk assets such as stock markets command could quickly be lost as

EU Agrees Banking Union - Bail-Ins Cometh ...
In the early hours of yesterday morning European Union politicians struck a deal on legislation to create a single agency to handle failing banks and bail-ins in the Eurozone after another all night negotiating marathon ahead of a summit of EU leaders starting in Brussels today.
German Finance Minister Wolfgang Schaeuble was drawn into the talks around 0530 GMT as the negotiations dragged on into the night. The politicians emerged around 0715 GMT with the deal, which now will need formal approval by the European Parliament and by national governments.

www.zerohedge.com...

reply to post by angelchemuel


China imports gold for the same reason as India: growing consumer demand. They also import all of the world's contraband ivory.

I feel like maybe you're ignoring the facts

Regardless of how much china has been importing gold in recent years is but a fraction of the worlds total mined gold, China has only just become worlds biggest minor of gold, less than half a decade ago China was behind South Africa, US, Aus, etc etc

So we're talking a tiny tiny time frame, and clearly goes without saying a tiny fraction of the worlds gold

Much of the worlds gold still resides in the west to which are listed in one of my previous posts, the west has been hoarding and mining gold for thousands of years on a grand scale

If we melted down all the worlds gold into one solid block china has a very tiny portion of it and the west own the rest, and out produces both Russia and China

So your point is?

There's no doubt in the current set up china and Russia could implode the global economy, sure

But as I keep stressing time and time and time again

The west will creat a new currency backed by hundreds of times more gold which excludes Russia and China


If you seriously can't see that the "only" fear here is the US losing its reserve currency and intern it's world superpower status, this is highly likely and highly hopeful

But if you think the West won't build a new economy then you're absolutely deluded, under no circumstances would the west take a Chinese & Russian currency backed with way less gold

OK

DJW001
reply to post by angelchemuel

 

China imports gold for the same reason as India: growing consumer demand. They also import all of the world's contraband ivory.

Of course a good portion of China's gold imports are consumer demand, but don't you think some of it is China's central bank increasing it's gold reserves? After all, when China overtakes the US economically, which is a mathematical certainty, do you think they will want to keep on using the US dollar in international trade or use their own currency or some new international currency? And do you think they would rather hold a trillion or so in US debt or gold? Which one has a better chance of going to zero?

Every paper currency ever has become worthless, gold never has.

reply to post by PlanetXisHERE

After all, when China overtakes the US economically, which is a mathematical certainty,

Please show your math.

PlanetXisHERE

DJW001
reply to post by angelchemuel

 

China imports gold for the same reason as India: growing consumer demand. They also import all of the world's contraband ivory.

Of course a good portion of China's gold imports are consumer demand, but don't you think some of it is China's central bank increasing it's gold reserves? After all, when China overtakes the US economically, which is a mathematical certainty, do you think they will want to keep on using the US dollar in international trade or use their own currency or some new international currency? And do you think they would rather hold a trillion or so in US debt or gold? Which one has a better chance of going to zero?

Every paper currency ever has become worthless, gold never has.

Certainly not for consumer demands

And the banks are loaning double the Chinese GDP per year

Can you say Bubble?

China is out off control on a far greater scale than the US ever was

And you expect different results ?

OK

reply to post by TritonTaranis

I feel like maybe you're ignoring the facts

As are you.

The west will creat a new currency backed by hundreds of times more gold which excludes Russia and China

How do you know the west has all this gold? You don't. Nobody does.

How do you know that China has only a tiny fraction? You you seem to conveniently ignore both the articles I linked and angelchumel so its obvious you're telling yourself that its impossible because you're really afraid you're wrong.

Hey, whatever makes you feel better.

reply to post by TritonTaranis

But if you think the West won't build a new economy then you're absolutely deluded, under no circumstances would the west take a Chinese & Russian currency backed with way less gold

At last we are reading the same book
Nobody, nowhere, as far as I can see, has said that the west would take on the rubel or yuan as the trading currency.

So can we all calm down a bit now please and just report and pass comments on events connected to my OP as they unfold...thank you everybody.


Rainbows
Jane

angelchemuel

reply to post by TritonTaranis

 

But if you think the West won't build a new economy then you're absolutely deluded, under no circumstances would the west take a Chinese & Russian currency backed with way less gold

At last we are reading the same book

Nobody, nowhere, as far as I can see, has said that the west would take on the rubel or yuan as the trading currency.

So can we all calm down a bit now please and just report and pass comments on events connected to my OP as they unfold...thank you everybody.


Rainbows
Jane

So you're agreeing on the outcome

That china and Russia could and would crash the global markets in order to stick two fingers up at the US but won't fair very well in doing so?

Thank god, perhaps you do understand

IMO the west needs to ditch the dollar as world currency and implement a joint western currency back by all

Perfect time to do it and have an excuse to rely less on Russia and write off debt to the Chinese so please go ahead and crash the markets

reply to post by TritonTaranis

So you're agreeing on the outcome I am not agreeing on any outcome at this moment in time. Anything can happen. We have to wait and see what the next step is and by who.

That china and Russia could and would crash the global markets in order to stick two fingers up at the US but won't fair very well in doing so?
They could, yes. However I am not going to agree that they are sticking the proverbial at the west. All I can see at the moment is that they, Russia and China are securing their own trading, as are many other countries in the world turning their backs on the petrodollar and have been for some time. We don't know yet whether this would be a bad or good thing for either side.

Thank god, perhaps you do understand

Thank god you have finally made sense....I knew you'd get there in the end

IMO the west needs to ditch the dollar as world currency and implement a joint western currency back by all

Hmmmm.....

Perfect time to do it and have an excuse to rely less on Russia and write off debt to the Chinese so please go ahead and crash the markets

Rainbows
Jane

Once again, all this speculation is based on pure fantasy. The only source for this alleged deal between China and Russia is a speech by Vladimir Putin. The Chinese press has been notably quiet about China's future relations with Moscow. Ominously quiet.

reply to post by DJW001


Please see my post in reply to Triton Teranis above yours. Thank you.
It is indeed speculation until the Chinese say anything...but it's certainly not based in fantasy. Other countries are breaking away from using the Petrodollar as has been cited by several different posters all through this thread.

Rainbows
Jane

angelchemuel
reply to post by DJW001

 

Please see my post in reply to Triton Teranis above yours. Thank you.
It is indeed speculation until the Chinese say anything...but it's certainly not based in fantasy. Other countries are breaking away from using the Petrodollar as has been cited by several different posters all through this thread.

Rainbows
Jane

Yes, and I repeat, the move away from the petrodollar is bad for Russia. Why pay Russia in a stable currency when they are willing to accept worthless rubles for political reasons?

reply to post by DJW001


Your first sentence...that is just your view which Russia and other countries obviously don't agree with.
As to your second sentence....Can you explain please, I have my blond wig on today

Rainbows
Jane

The real issue with regard to each countries economic fragility is not the size or shape of its market, but the size and restricted power to spend denoted by its debt to GDP ratio. Whether you are an individual person or a country, if you are spending more than you are earning, you place yourself in debt. In the short term, this is not in itself a bad situation, as short-term squeezes upon one's earning power are often balanced out by non-squeezed periods. During those periods when your earning power is greatest, it becomes prudent to place aside 'savings' for those periods when your earning power is reduced. For an individual person, this may mean periods of work absence due to unemployment, sickness or injury, but when it comes to countries it is a different matter altogether.

The most prudent dictum to follow is 'live within your means determined by your income at all times'. Forget credit, you always pay more for it, and it ties you down, all for the sake of nothing more than convenience. If you follow the dictum of always living within your means determined by your income, you will never need credit except for when buying a house and the gaining of a mortgage. For all other things, simply save up and buy them outright. The choice is yours.

America has the largest debt of any country, $14.5 trillion at last count which is expected to rise to $23 trillion in the coming years. However, America's debt amount accounts for around 87% of its GDP, and will rise to around 94% to 95% of GDP. So, unlike Japan, whose debt is 214% of its GDP, America still has a little room for maneuver, and this is because of the petrodollar, but it is also where the greatest danger to America's economy lies, and also the best target for its enemies.

If other countries start using other currencies to make their payments and ignore the petrodollar, America's debt to GDP ratio will rise massively and exponentially, sending America's economy into an hyperinflation scenario it could not control . It is irrelevant how much physical gold reserve America has (just over 8000 tonnes = $320 billion), it would not help all that much. The country as a whole would suffer immense damage, some areas more than others, and even though the country would recover eventually, the damage sustained would be significant and long lasting, and would have weakened America considerably.

It is at the edge of this type of abyss America stands. Russia's and China's debt to GDP stand around 12% and 32% respectively, so their economies can not only take a hit, but easily withstand any knock-on effect damage while the American economy spirals into implosion. Other Western economies will not fare as well either, the UK especially is very vulnerable to whatever happens to the American economy as its debt to GDP stands at around 90% and only 300 plus tonnes of physical gold reserve.

In the video Jane kindly provided on page 3 of this thread, Jim Sinclair referenced Russia as having a nuclear economic bomb. His euphemism is quite accurate, because like a nuclear bomb, it reduces the ability of outside aid coming to your rescue, because it also attacks the outside aid as well as its intended target. Any damage to the American economy also damages the economies of its allies, effectively impeding aid to come from anywhere. This is the potential America is faced with, and Obama is therfore playing with the lives and livelihoods of his fellow Americans as he continues to poke an as yet patient Russian Bear. How long this may continue...who knows?

Of course, it goes without saying that the fragility of Western economies is due to the way they are all interconnected to the same system of business.