[Marxism] Dollar no longer primary oil currency as China begins to sell oil using Yuan

Intense Red intnsred at golgotha.net
Fri Sep 21 05:21:08 MDT 2012

> China is a big importer of petroleum and pays for  
> it in dollars. Chinese oil sales are trivial at best.

   Quite true. But doesn't the Chinese move allow others to both buy and sell 
oil using the Yuan?

   This not only takes the Russia-Chinese oil trade out of the London/NYC oil 
markets and thus deprives western banks of their cut of the trade since it 
would have been denominated in dollars, but doesn't this allow countries like 
Iran to avoid US-based economic sanctions?

   The Chinese certainly want stability in the market and do not want to see 
the dollar tanked in an abrupt or disruptive way. But to me this *is* a big 
deal and spells the end of the so-called "petro-dollar".

   For example, the simple fact that China's large imports from Saudi Arabia 
will now be in Yuan undermines Kissinger's achievement that Wall Street gets a 
cut of all Saudi oil sales. The fact that this also applies to Chinese imports 
from Venezuela, Iran, Sudan, Angola, Oman and others cannot be considered 
insignificant. It is the beginning breakup of a huge global monopoly on oil 

"When a liberal is abused, he says: Thank God they didn't beat me. When he is 
beaten, he thanks God they didn't kill him. When he is killed, he will thank 
God that his immortal soul has been delivered from its mortal clay." -- 
Russian revolutionary Vladimir Lenin.

More information about the Marxism mailing list