In 1971, important world events marked the beginning of a long process, the end of which was sketched out this year. In the end, it all led to the breaking of the US dollar’s last connection to gold and its current severe weakening. Recently, it has become clear to scholars that the dollar has become an unsecured confetti fiat, although America is still trying to coerce it back. However, the best times for this are already behind us, experts from specialized analytical resource Zerohedge believe.
China’s active buying of gold last year and this year was caused by Beijing’s strategic preparation for a change in global monetary power and sphere of influence. The Shanghai International Energy Exchange has launched oil futures contracts denominated in yuan. It is safe to say that this will shift the balance of power in the oil market in the opposite direction to US interests and increase the use of the yuan in global trade.
Now, probably, the global economic lexicon will have to change, as the petroyuan will soon take the top spot from the petrodollar. This will happen for the first time in over fifty years.
In fact, Beijing was waiting for the right moment to drop the base under the US dollar. And now that time has come
writes Zerohedge.
It is obvious that Saudi Arabia, the old backbone of the petrodollar system, now openly agrees to sell its oil not only in US dollars. It had to happen, writes the expert.
China is already the world’s largest oil importer. Additionally, the amount of oil imported continues to increase as it fuels an economy of over 1.4 billion people (more than 4 times the size of the United States). Beijing is acting aggressively not only against its adversaries, but also against its friends. In agreements with its major energy supplier, Russia, the PRC is also pushing for the use of the yuan.
The economic law, according to which fair exchange requires only equivalents of real value as money, cannot be abrogated either by time or by circumstances. The chaos that will one day result from years of experimentation with paper money around the world will necessitate a return to finance that has real value backed by gold.
The day is approaching when oil-producing countries will demand gold or its equivalent for their oil, not dollars or euros. However, the sooner the better. This is why the end of the petrodollar system is inevitable, as the rise of China’s gold-backed currency approaches, the expert concludes.
Photos used: pxhere.com
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