Thursday, March 30, 2023

De - Dollarisation: China, Brazil Make Deal To Ditch US Dollar For Bilateral Trades

 The Move To Ditch The US Dollar Is Gathering Momentum

China and Brazil this week concluded a deal to conduct trade between their nations in their own in their own currencies, ditching the established reserve currency for global trade, US dollar as an intermediary, the Brazilian announced said on Wednesday. This is Beijing’s latest strike against the almighty greenback in its currency war aimed at shifting the balance of geopolitical and economic power from west to east.

The deal will empower China, the top rival to US economic hegemony, and South America's biggest economy, Brazil, to conduct their massive trade in Brazilian commodities and Chinese manufactured goods, and the associated financial transactions directly, exchanging yuan for reais and vice versa instead of going through the dollar, a system which allowed US businesses and goverment agencies to skim off the cream from each transacyion for themselves.

It is this systematic abuse of the financial power gained from being issuer of the reserve currency that has kept the US economy on top throughout the past 30 years of failing US foreign and industrial policy.

“The expectation is that this will reduce costs... promote even greater bilateral trade and facilitate investment,” the Brazilian Trade and Investment Promotion Agency (ApexBrasil) said in a statement.

It is not the first bilateral agreement to abandon the US$ as the de facto world currency this week.

China settled its first LNG trade in yuan; but gold remains the bigger winner in the global de-dollarization.


 

The U.S. dollar's role as the world's reserve currency was further tested as more nations chose to settle commodity trades with national currencies or the Chinese renminbi.

On Tuesday, the Shanghai Petroleum and Natural Gas Exchange announced that it completed its first yuan-settled trade for liquid natural gas between China's National Offshore Oil Corporation and France's TotalEnergies.

According to press releases from the financial markets, confirmed by Reuters, 65,000 tonnes of LNG imported from the United Arab Emirates (UAE) changed hands. This latest  trade deal comes as China tries to establish the renminbi as an international non - dollar currency.

The trade also came after President Xi Jinping traveled to Saudi Arabia in early December to strengthen economic ties with the Middle East and encourage the region to use the renminbi to settle its oil and gas trades, a visit that has resulted in detente between the formerly hostile regional powers, Saudi Arabia and Iran, the latter being a long term ally of China.

.At the same time, the renminbi has been Russia's defacto reserve currency for the past year since it invaded Ukraine, which prompted Western Nations led by the U.S. to impose harsh economic sanctions, cutting the nation off from Western financial markets.As a result of this collaboration with China, now also supported by India, the west's economic sanctions have economically harmed America's NATO allies far harder that they have Russia, which had no problem finding customers in South est Asia and Aftica eager to buy it oil and minerals without having to pay exorbitant commissions to Ameican middle - men.

23 Countries Now Abandoning US Dollar

A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency.

23 countries (60% of the world's GDP) are setting up swap lines which bypass the dollar and SWIFT, which is the dollar-based worldwide financial transaction system.

These countries include Russia, China, India, and even Germany, France, and the United Kingdom.

Once the new system is in place, the dollar won't be needed in these countries and a new reserve currency will come into being. All those dollars in foreign accounts will come home, which will annihilate the dollar dominated monetary system.

Also, China just announced that it will stop purchasing US Treasury bonds (holding dollars in reserve). This will force The Federal Reserve to print even more dollars than the $85 billion per month it's currently printing. NB: References to printing money in the financial press refer to the practice of borrowing money by selling bonds for hard currency. The seller must pay interest to the bondholder and also redeem the bond at face value after a fixed term (usually 2,5 or 10 years.) Bond trading is a complicated business and this is not the place for a more detailed explanation.)


RELATED:

[ Currency Wars ] ... [ Money & Finance ] ... [ dollar fears ] ... [ debt crisis ] ... [ Debt: a dollar ponzi scheme ]

U S Regional Bank First Republic Crashes As America's Banking 'Crisis In Confidence' Becomes Contagious
Shares in America's First Republic Bank's crashed when the New York stock market opened for trading this morning. The crash was triggered by a statement issued on Sunday night that sought to ease investor worries about the bank's liquidity situation in the wake of the failure of Silicon Valley Bank. Shares in the San Francisco based regional bank are down 60% on last week's close.

Negative Interest Rates - Final Nail In The Coffin Of Neoliberalism? Negative interest rates, in plain terms a situation in which we pay bankers for holding our money, are the latest ruse of politicians and economists to make uis start spending our investments and savings, thus kickstarting the global economy thy have screwed up.

Pupils Shut Out Of School Because They Refuse To Wear Gender Neutral Uniforms
Overshadowed somewhat by the idiocies in Parliament this week as Remain supporting, democratically elected MPs try to overturn the democratically expressed wish of the people and keep the UK in The Fourth Reich politely known as the European Union, the idiocy of politically correct, far left authoritarianism in education goes on...

The Elite’s Scheme to Eliminate Cash And Impose Negative Interest Rates
Politicians love inflation, it provides an easy way out of the financial mess they create, Bankers too love inflation because while they lend fiat money, the loans they issue are secured against real assets such as people’s homes and valuables. However both need “the punters they fleece to have faith in the value of the currency they hold or the numbers stored in computers that increasingly represent our wealth ...

Elites Losing The War On Cash? Sweden U-Turns On 'Cashless Society' Agenda
Sweden was leading the the War On Cash, the ruling elite had pushed the idea that a cashless society would protect citizens from crime and be more convenient. There was no mention that in a cashless society we would completely surrender control of our money to banks, and our privacy in financial matters to government security agencies...

War On Cash. If You Want To Buy A Car Or Appliance From A Friend For Cash, You Will Not Be Able To.


A geopolitical move by the globalist control freaks that began as a seemingly innocuous hypothetical discussion several years ago now appears to have become a deep state / corporate policy backed by a propaganda campaign involving some of the most powerful commercial and government agencies in the industrialized world. Throughout this omnibus web page we have called it the War on Cash.

War On Cash. If You Want To Buy A Car Or Appliance From A Friend For Cash, You Will Not Be Able To.


A geopolitical move by the globalist control freaks that began as a seemingly innocuous hypothetical discussion several years ago now appears to have become a deep state / corporate policy backed by a propaganda campaign involving some of the most powerful commercial and government agencies in the industrialized world. Throughout this omnibus web page we have called it the War on Cash.

Lord Rothschild: The New World Order Is At Risk
In the RIT Capital Partners 2014 annual report, the head of Rothschild family banking empire warned that the geopolitical situation is most dangerous since WWII. A year later, Baron Jacob Rothschild repeated his warning about the outcome of "the greatest experiment in monetary policy in history". Little did he know that, they would keep rising, but related to that, he also made another warning which the market has so far ignored:

Government Whistleblower admits Labour Opened Borders to Eastern Europe to ‘Lower Wage Growth’
It should be no surprise then that it was under a Labour government led by Tony Blair, our borders agencgy was ordered to open the door to uncontrolled mass immigration from eastern Europe. The move came folowing a series of secret meetings between Blair and then Bank of England governor Mervyn King in which King “pressed the case” that mass immigration would “lower wage growth” by creating a pool of cheap workers, a former senior diplomat has claimed.

Could Italy’s Banking Crisis Drag Down Mario Draghi?
The latest banking crisis in Italy risks focusing scrutiny on the leadership of both the Bank of Italy and Italy’s financial markets regulator Consob. The decision to give the central bank’s current Chairman Ignazio Visco a fresh six-year mandate despite his having presided over one of the worst banking crises in living memory ...

The Demise Of Dollar Hegemony: Russia Breaks Wall Streets's Oil-Price Monopoly In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and 'paper' oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.

The Demise Of Dollar Hegemony: Russia Breaks Wall Streets's Oil-Price Monopoly
Significant moves in the global chess game have just rendered the huffing and puffing of warmonger Obama meaningless and will break Wall Street's monopoly in controlling oil markets. The move is part of Vladimir Putin's long-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, in effect ...

Naked Bankers Go For Gold
... That gold sale in 2013 was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery (quite a lot of it belonged to the german government) In effect the naked shorting of gold could only work because really the right hand was selling to the left hand.

Another Oil Exporting State Surrenders: Last Nail In Petrodollar's Coffin
While record mainland deficits covered by the petroleum sector is nothing new in Norwegian budget history, the 2016 budget did raise some eyebrows. The net inflow to the Norwegian Treasury from North Sea oil will be lower than the required amount to cover the deficit. This has never happened before and is testimony of the sea change occurring in the world of petrodollar recycling.

India Takes A Leading Role In De-Dollarization
Reuters reported last Wednesday that “India’s Oil Deals With Russia Dent Decades-Old Dollar Dominance”, which highlighted the growing tendency of those and many other using nations using national or or third-party currencies to settle cross border trades thus sidelining the US$ which has dominated international trade since the 1970s.

De-Dollarization Du Jour: Russia's Largest Bank Issues Yuan-Denominated Guarantees


Leading the charge to multipolarity and de-dollarization are Russia, resugent despite economic sanctions and the rising superpower in waiting, China. The downgrading of the dollar is clearly demonstrated in the launch of the BRICS bank and the establishment of the AIIB.

Cashless Society: The Spy In Your Wallet

Back In 1971 Libertarians Were Predicting Debit Cards Would Become A Spy Tool For Authoritarian Governments. In 2013 The Wall Street Journal reported that the Naional Security Agency (NSA) was monitoring the card transactions of American citizens. Following that, two Senators, Wyden and Udall – who both sit on the Senate Intelligence Committee and thus have access to classified information about the government’s digital snooping intelligenece gathering programs wrote ...,/p>

NATO Rhetoric About Russian Threat is 'Absurd'
The reasons being given for the latest NATO military buildup in Eastern Europe, the idea that the Russian 'Russian threat' to Eastern Europe grows every day is "simply absurd," according to former US diplomat and Senate policy advisor Jim Jatras. Effectively, Jatras says, the buildup is an attempt by the US to keep Germany and France on board with Washington's world domination agenda and ...

The Demise Of Dollar Hegemony: Russia Breaks Wall Streets's Oil-Price Monopoly
Significant moves in the global chess game have just rendered the huffing and puffing of warmonger Obama meaningless and will break Wall Street's monopoly in controlling oil markets. The move is part of Vladimir Putin's long-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, in effect ...

WMD in Mayfair
Recalling yesterday's Machiavelli Blog which commented on events surrounding the unfortunate death of the alleged former Russian agent Alexander Litvinenko, it seems the murder investigation has now found evidence of many caches (well OK, traces) of radio active toxins in various fashionable establishments in London's West End frequented by former Russian intelligence agents.

China launches global yuan payment system
China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar's dominance.

EXPLORE:
[Daily Stirrer] ... [ Our Page on on Substack ]... [Boggart Aboad] ... [ Ian Thorpe at Quora ] ... [ Greenteeth Home ] ... [ Greenteeth on Minds.com ] ... [ Here Come The Russians ] ... [ Latest Posts ] ... [ Blog Bulletin ]