So now the US is looking to wind the Chinese up

Little John · Post by **Little John** » 11 Aug 2014, 21:23

http://rt.com/usa/179512-asean-kerry-wang-tensions/

http://rt.com/usa/179560-darwin-force-p ... agreement/

It is now looking ever more certain that all of the bollocks going down in the world in the last few months is about the BRICS deal to dump the petrodollar. The Yanks are basically lashing out at the main BRICS players. Which means they are either very confident or getting desperate. I think the latter, which makes them particularly dangerous

Snail · Post by **Snail** » 11 Aug 2014, 21:38

I wonder if they want the brics to dump the petrodollar. To provide the excuse/explanation for getting rid of it themselves.

UndercoverElephant · Post by **UndercoverElephant** » 11 Aug 2014, 22:48

Snail wrote:I wonder if they want the brics to dump the petrodollar. To provide the excuse/explanation for getting rid of it themselves.

Why would they want to get rid of it?

Post by **kenneal - lagger** » 12 Aug 2014, 04:38

The US couldn't afford to get rid of it. They owe the world trillions and would have to run a balanced budget without the petrodollar. Not a good prospect for them.

The US has already gone to war to stop Saddam Hussein dropping the petrodollar so a war against the BRICS or one of them could well be on the cards. Brasil would be the most likely as they have some oil and don't have a particularly big or well equipped army. They could do this relatively easily as a lesson to the others and if that failed, God help the rest of us.

Little John · Post by **Little John** » 12 Aug 2014, 07:34

kenneal - lagger wrote:The US couldn't afford to get rid of it. They owe the world trillions and would have to run a balanced budget without the petrodollar. Not a good prospect for them.

The US has already gone to war to stop Saddam Hussein dropping the petrodollar so a war against the BRICS or one of them could well be on the cards. Brasil would be the most likely as they have some oil and don't have a particularly big or well equipped army. They could do this relatively easily as a lesson to the others and if that failed, God help the rest of us.

Yes, I've also been thinking that Brazil is the one to watch as it is on the USA's doorstep and will be the easiest to crush.

Little John · Post by **Little John** » 12 Aug 2014, 07:40

UndercoverElephant wrote:
Snail wrote:I wonder if they want the brics to dump the petrodollar. To provide the excuse/explanation for getting rid of it themselves.
Why would they want to get rid of it?

Agreed, they wouldn't. The dollar as the world's reserve currency is what allows the Yanks to print without facing the consequences is so the only thing stopping their economy from completely collapsing.

Snail · Post by **Snail** » 12 Aug 2014, 11:17

yeah, but isn't the death of the petrodollar inevitable anyway for variety of powerswitch reasons.

USA can deal with saddam&gadaffi. maybe even brasil. But not russia, nor china. And china's already indicated their intention for a new currency reserve. As has imf.

How beneficial is it now anyway. China's huge, and has large dollar reserves it can use as a potential weapon. it's encouraged america's economy to develop in a certain way. The result is huge, unpayable, debt. I've read it's even enabled China's growth. Western economies are all fecked anyhoo. corporations are worried.

It's also destabilising.

Was thinking out load. Maybe encourage china et al to dump petrodollar. This would hurt usa economy, but not fatally. Usa could respond with currency reset. And blame China&russia for having to do it. This would get rid of debt, reduce costs, and increase competiveness. Or allow a new reserve currency, with influence from usa while its still top-dog.

Medium to long-term, it might be better for usa&business.

Little John · Post by **Little John** » 13 Aug 2014, 17:25

Well, surprise, surprise.

The left wing presidential candidate Eduardo Campos, the leader of the left-of-center Brazilian Socialist Party (which are, by definition, anti-USA imperialist) who was set to challenge President Dilma Rousseff in a presidential poll set for next year, has just been killed in a plane "accident". We seem to be having a lot of plane "accidents" at the moment don't we.

http://rt.com/news/180112-brazil-helico ... sh-houses/

Brazil is one of the BRICS who signed up to the deal to dump the petrodollar.

What's the odds that vtsnowedin, our resident US shill, will miraculously turn up in the next few minutes of this post to spin this away.

vtsnowedin · Post by **vtsnowedin** » 13 Aug 2014, 18:08

Snail wrote:
How beneficial is it now anyway. China's huge, and has large dollar reserves it can use as a potential weapon.

Why would China want to do anything that would diminish the value of those dollar reserves?

UndercoverElephant · Post by **UndercoverElephant** » 13 Aug 2014, 19:32

vtsnowedin wrote:
Snail wrote:
How beneficial is it now anyway. China's huge, and has large dollar reserves it can use as a potential weapon.
Why would China want to do anything that would diminish the value of those dollar reserves?

If it was bothered about the value of those dollar reserves in the long term, why is it dumping them as fast as it can without crashing the value of the dollar. China wants out of dollars and dollar-denominated investments. Don't kid yourself otherwise just because they aren't dumb enough to dump all of them at the same time.

vtsnowedin · Post by **vtsnowedin** » 13 Aug 2014, 19:49

UndercoverElephant wrote:
If it was bothered about the value of those dollar reserves in the long term, why is it dumping them as fast as it can without crashing the value of the dollar. China wants out of dollars and dollar-denominated investments. Don't kid yourself otherwise just because they aren't dumb enough to dump all of them at the same time.

Good point but a good part of their cashing in of US bonds appears to come from their need for cash. They are making other investments in oil and other resources from Africa to Russia that should pay much better then US T bills at 2.5%.
I doubt if China would deliberately scuttle the American economy as they need our market to sell exports to.

frayne · Post by **frayne** » 14 Aug 2014, 05:22

Precisely, though China is the largest creditor now in US but reality bite; China needs US market for their goods to sell.

Little John · Post by **Little John** » 14 Aug 2014, 07:24

frayne wrote:Precisely, though China is the largest creditor now in US but reality bite; China needs US market for their goods to sell.

The whole point about the BRICS forming trade and monetary partnerships is to make themselves less reliant on the USA market.

vtsnowedin · Post by **vtsnowedin** » 14 Aug 2014, 10:47

Going to dump the US petro dollar are we? So next winter the UK can pay for it's Mideast oil in ? What will it be? Renminbi? Rupees? or Rubles? or Reals? Surely you don't think it will be Sterling or bit coins.

snow hope · Post by **snow hope** » 14 Aug 2014, 10:58

Probably US Dollars, but why not Sterling?