In other words printing all that fiat money isn't going
to Africa to buy those resources anymore. China and Russia are replacing
them and the Anglo Saxon Whites are desperately trying to stage a
return to colonialise the continent. What happens in Niger and the
stance of the USA and France comes to mind.
Too bad the Africans
have already seen the benefits of dealing with China and Russia, and
they have certainly not forgotten the earlier help that China and Russia
gave them to fight colonialism over the decades, unlike some ingrates
in Asia. Moreover, those airports, ports, reservoirs, railway lines,
roads and joint ventures of mutual benefit have opened the eyes of the
Africans and make them realise who they can bet on.
Many African
countries already took US$ loans from China, from China's trade
surpluses, for development, in return for China being given the rights
to extract and share the benefits of Africa's resources with the
Africans, with the loans repayable in Yuan. It is no longer one sided
daylight theft of Africa's resources by the Anglo Saxon White clique,
with nothing to show for all those years of colonial rule and plunder.
In
return for getting those resources almost free or on the cheap, the
Whites have resorted to enslaving them with IMF or World Bank loans,
thereby keeping them suppressed, even creating conflicts to keep them
perennially impoverished, and instigating internal unrest to prevent
them from rising out of poverty. They also funded opposition forces to
create unrest to destablise legitimate Governments, who do not follow
their dictates, and supported
Dictators who tow their line and
follow their agenda, to allow them to steal their resources, giving huge
kickbacks to benefit those Dictators of course.
Latin America is
exploring a common currency. BRICS is also exploring a common currency
for members to conduct trade within the common region, just like the EU,
outside the US$. African countries are still not that united, with
Dictators still not on board for such an arrangement, but should do the
same when the time comes. Outside of BRICS, China, Russia and Iran among
others are already doing major deals in their own currencies, and
ditching the US$. Saudi Arabia holds the key, and if it joins the BRICS
and sells oil to China in Yuan, it will be the last nail in the coffin
for the US$ hegemony. That is why the USA is desperately trying to
coerce Saudi Arabia with concessions to sabotage the move.
Anonymous
The latest nail in the coffin for the US$ stems from India's oil deal with the UAE, to be paid in Rupees. Worth about US$80 million, it is a small step for India/UAE oil trade, but a giant leap for mankind, to mirror the gloating quote following the moon landing by the USA.
ReplyDeleteMore is expected to follow, with India trying very hard to promote the use of the Rupee. India's attempt to pay for Russian oil in Rupees hit a roadblock earlier on, so this is somewhat India's response to the Russian stance. But whether India can buy oil at the same level of discount given by the Russians is uncertain. Undoubtedly this deal is not going to go down well with the USA. Other oil producers are watching with bated breath and will follow sooner or later.
Actually, touching back on the moon landing, what has it done to benefit mankind, other than boosting the ego of the USA to be ahead of the Soviet Union in the moon race. At that time the USA already found itself behind the Soviets in space tecnology, and had to come up with the moon landing to salvage its humbled pride. Moreover, many still believe that it was just a moon landing stunt fabricated in a Hollywood studio. The controversy is still being debated.
Why is the UAE's move to accept Indian rupees for oil significant? It shows that despite the hesitant stance adopted by the Saudis, UAE is already walking the talk, showing that it is brave enough to do the oil trade outside the US$. Maybe I am not that well informed, but searching for confirmation, I could not find any source to show that Saudi Arabia is already accepting Yuan payments for oil sold to China so far. If the Saudis are already doing it, why is Joe Biden still coercing MBS about accepting Yuan payments from China, even offering concessions to prevent the Saudis from carrying it out. It would have been big news if Saudi Arabia and China are already doing oil in Yuan. Can anyone help?
In the light of the above situation, what message is the UAE's move going to tell the Saudis, that despite its repeated intention pronouncing its readiness to do the oil trade in other currencies, particularly in Yuan, its implemention is still hanging in the balance. China is the Saudis biggest oil importer and the money involved will indeed be substantial. Perhaps MBS is playing both sides to extract maximum advantage and concessions from the USA.
Much is expected from the BRICS summit in South Africa a week from now. Hold on tight!
The Saudis bought billions of dollars of Chinese weapons systems. China is building the Line City costing hundreds of billions and also many billion dollar projects in Saudi Arabia.
ReplyDeleteSaudis paying in US$ or Yuan? If in Yuan, where did the Saudis find the Yuan? Buy from the open market?
When the Saudis sells oil to China in Yuan, they will have Yuan to pay China for weapons and infrastructure development. That would be a very big step forward for both China and Saudi Arabia, and a big step backward for the US$ as well.
ReplyDeleteMoreover, there was a report that some banks in Arab countries have already set up Yuan exchange facilities with Chinese banks for trade? China does not put the cart before the horse before it is ready to move forward. They put in place what needs to be put into place first before taking action.
That is why the USA is paranoid about Saudi Arabia selling oil to China in Yuan. Saudi Arabia will then have Yuan to pay for what it buys from China in Yuan, whether it is weapons, consumer products or infrastructures. The oil sales to China we are talking about is not to be sniffed at.
ReplyDeleteThe issue for the USA therefore is not only selling oil to China in Yuan by Saudi Arabia, but all other trades could also be done in Yuan. And what does that leave the US$?