Anybody much more educated on economics than myself, could kindly chime in on the possible outcomes of the Petro Yuan becoming active on March 26?
Link to Article 1 - Click Here
Excerpt: "In a move that could portend massive shifts in the global oil game, the Shanghai International Energy Exchange will soon unveil an oil-futures contract denominated in Chinese yuan rather than U.S. dollars (product symbol: SC). Experts warn that the growing clout of Chinese currency in international financial markets could erode the primacy of the U.S. dollar, a long-term economic trend that should greatly trouble Washington."
Link to Article 2 - Click Here
Excerpt: "The US dollar enjoys a special privilege in the world due to its dominance in the global oil trade.
The agreement that created this dominance was predicated on the United States being the largest oil importer in the world, which is no longer the case.
China is rolling out a new gold-backed yuan oil contract next month as part of its attempt to replace the US dollar's dominance of that commodity trade.
Given the US's rise as a potential energy exporter and other factors, China may succeed in this goal.
If the dollar loses its privileged status, it will likely lead to inflation and rising interest rates in the USA along with difficulty maintaining the current standard of living."
I'm not going to pretend to have any specialized, deep knowledge in this matter - however I do find it concerning and compelling.
More specifically - I am hopeful that if we strategies together, we @ RoK could find a way to profit from this.
Link to Article 1 - Click Here
Excerpt: "In a move that could portend massive shifts in the global oil game, the Shanghai International Energy Exchange will soon unveil an oil-futures contract denominated in Chinese yuan rather than U.S. dollars (product symbol: SC). Experts warn that the growing clout of Chinese currency in international financial markets could erode the primacy of the U.S. dollar, a long-term economic trend that should greatly trouble Washington."
Link to Article 2 - Click Here
Excerpt: "The US dollar enjoys a special privilege in the world due to its dominance in the global oil trade.
The agreement that created this dominance was predicated on the United States being the largest oil importer in the world, which is no longer the case.
China is rolling out a new gold-backed yuan oil contract next month as part of its attempt to replace the US dollar's dominance of that commodity trade.
Given the US's rise as a potential energy exporter and other factors, China may succeed in this goal.
If the dollar loses its privileged status, it will likely lead to inflation and rising interest rates in the USA along with difficulty maintaining the current standard of living."
I'm not going to pretend to have any specialized, deep knowledge in this matter - however I do find it concerning and compelling.
More specifically - I am hopeful that if we strategies together, we @ RoK could find a way to profit from this.