China Moves on New World Order: Will Buy Oil With Gold-Backed Currency—Bypassing US Petrodollar – Venezuela: What the H#ll is Coltan (Blue Gold)?
Source: The Free Thought
In a direct challenge to U.S. imperialism, China’s yuan-denominated contracts – backed by gold -will let oil exporting countries bypass using the U.S. petrodollar.
By Jay Syrmopoulos • September 4, 2017
Beijing, China – In an effort to hedge against U.S. hegemony, and what could be a global game-changer, the world’s top oil importer, China, is preparing to denominate crude oil futures contracts in Chinese yuan to be convertible into gold. The move would allow oil exporting countries to bypass benchmarks denominated in U.S. petrodollars — creating what will almost certainly be the most critical Asian oil benchmark, according to a report by Nikkei Asian Review.
Typically, crude oil is priced in relation to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.
The move by the Chinese will allow oil exporting countries such as Iran and Russia to bypass U.S. sanctions by trading in yuan instead of U.S. dollars. The move is a direct result of the U.S. proclivity to use the dollar as a weapon against countries that refuse to bend to the imperial will of the United States. To make the yuan denominated contracts more appealing, China intends to make the yuan fully convertible to gold on the Shanghai and Hong Kong exchanges.
“The rules of the global oil game may begin to change enormously,” said Luke Gromen, founder of U.S.-based macroeconomic research company FFTT.
According to a report by OilPrice.com:
Last month, the Shanghai Futures Exchange and its subsidiary Shanghai International Energy Exchange, INE, successfully completed four tests in production environment for the crude oil futures, and the exchange continues with preparatory works for the listing of crude oil futures, aiming for the launch by the end of this year.
Yuan-backed oil and gold futures mean that users can be paid in physical gold, said Alasdair Macleod, head of research at Goldmoney, a gold-based financial services company based in Toronto.
While some potential foreign traders have expressed reservations that the contract would be priced in yuan, according to analysts who spoke to Nikkei Asian Review, backing the yuan-priced futures with gold would be appealing to oil exporters — especially to those that would rather avoid U.S. dollars in trade.
“It is a mechanism which is likely to appeal to oil producers that prefer to avoid using dollars, and are not ready to accept that being paid in yuan for oil sales to China is a good idea either,” Macleod said.
Continue reading at The Free Thought.
Rothschild Taking Down the Dollar? China Launches New Oil Benchmark As Bankers Move Money East
While on the subject of oil, what is really going on in Venezuela and with its oil industry? While we read about how the “dictator of Venezuela” as he is being portrayed in the US media, President Nicolas Maduro, on how he is “wrecking the Venezuelan economy and causing hardship for the people of Venezuela” (how can one man “wreck an economy?”), Abby Martin of Empire Files in this interview discusses with the head of Venezuela’s Armed Forces and Minister of Defense, General Padrino López, what exactly is going on. While no doubt Venezuela is facing some serious problems with the collapse of its health care system and its infrastructure, the US has declared Venezuela a “national security threat.” Brace yourselves, Venezuelan people, the worst is yet to come. Regardless of what the print media in Venezuela reports to you, either from the left or the right, your country has been targeted for destabilization and “regime change.”
Empire Files: Head of Venezuela National Guard on Insurgency & US Threats
Empire Files: Abby Martin in Venezuela – Supermarkets to Black Markets
The significant underlying relentless US economic attack on Venezuela through its weapon of choice, economic sanctions, targeted Venezuela by first applying “soft power”. This always leads to unbelievable suffering of the people which in turn places pressure on governments. This is related to the discovery of a huge deposit of coltan which is a “conflict mineral” like it is in Congo and what it will become in Venezuela. The fact that Venezuela has emerged as a new source of valuable minerals especially coltan, makes Venezuela an economic target. Venezuela was with the assistance of Iran, planning on developing trade in coltan.
To prevent “conflict coltan”, the previous President of Venezuela Hugo Chávez, sent 15,000 Venezuelan military troops to curtail or stop the illicit trade of coltan from leaving Venezuela. This is why under President Obama, Venezuela was named a “national security threat”. A “national security threat” to America’s corporate-industrial demand for minerals. Venezuela has a huge deposit of coltan in ore and is considered Venezuela’s “blue gold. Large industrial users of coltan like Motorola and Nokio have put out PR notices suggesting they do not want to use coltan in manufacturing their products mined out of Congo which means Venezuela could potentially become an alternative source for coltan.
From a Global Research report linked below, “the Congo possesses an astounding $24 trillion in mineral reserves, including gold, diamonds, copper, cobalt, coltan, tin, tungsten, zinc, manganese, magnesium, uranium, niobium, gold, diamonds, and silver”. The country of Congo is a “geological freak” and continues to be plundered. In August, 2016 Venezuela signed over $5.5 billion in mining deals with companies including Canada’s Barrick Gold Corp (ABX.TO) and China’s Shandong Gold. And knowing China’s huge demand for coltan, mining probably won’t be restricted just to gold either.
A huge reserve of coltan (ore) was discovered in 2009 in western Venezuela. Compared to deposits of coltan discovered in countries like Saudi Arabia, China and Afghanistan, coltan can be fairly easy to extract out of the large discovery in Venezuela. Coltan is used in a large variety of consumer electronics, tantalum electrolytic capacitors and smart phones among many other uses. American corporate, military and security analysts are acting to prevent both the illicit and legal trade of coltan from falling into the hands of Russia and Iran which might also explain why Venezuela’s economy has been targeted by US intelligence (working through USAID) and military-corporate interests.
The first tactic of “soft power” is to find Venezuelans in the media or in large companies with close connections to the media in Venezuela who can influence the media to release “news” stories criticizing the Venezuelan government. And as Abby Martin points out in the second clip above, Venezuela contrary to US media reports, does have a free press. Just like in the US, the media in Venezuela is weaponized by powerful privately invested economic interests.
When President Maduro of Venezuela announced last year June, 2016 plans to create a mining industry to diversify Venezuela’s oil-based economy, this was the green light for American military, security and corporate interests to move on destroying Venezuela. In Hillary Clinton’s emails which were revealed, Clinton discussed US direct sabotage of Hugo Chavez’s politics.
If readers wish to know just how critical coltan is to American military corporate industrial interests, a read through Five Things You Need To Know About Coltan would be useful. So, rather than negotiate with Venezuela on the trade of coltan, the US finds it easier to destroy Venezuela then blame its government for the destruction of its own economy and infrastructure. In the meantime, enjoy your coltan-loaded smart phone in the empire.
The Congo is where a large percentage of coltan is mined by slave labor, and if anyone thinks death isn’t coming on a large scale in Venezuela which the Venezuelan military are working hard to prevent (see interview above with Abby Martin), take a look at what happened in Congo with “conflict minerals” including coltan getting 4 million people killed. Just like in Congo, the people of Venezuela are going to pay the ultimate price. And whether people like it or not, or if they disagree or disagree, the US is doing business with Venezuela.
The mobile phone is a remarkable piece of technological engineering. But take a second to look inside. There is blood in this machine. There’s blood in this device because your smart phone contains tiny electronic circuits, and they couldn’t work without the mineral coltan.
What Is COLTAN?
Coltan in Venezuela – 4th A
A good article by Brandon Turbeville countering most western media sources reporting on Venezuela:
The pathology of the rich…
“Which is it going to be? Your smart phone or the destruction and violence about to befall Venezuela?”