Iran Sanctions Will Help China’s Petro-Yuan

The USA is cutting off some funding to Pakistan:

Iran Sanctions Will Help China’s Petro-Yuan

January 9, 2018

In a few days, U.S. President Trump may try to re-impose sanctions on Iran, a dramatic step that could heighten tensions between the two countries. Some analysts believe the move could contribute to a much broader global economic power shift from the U.S. to China.

The connection between the issues may not be obvious at first glance, but by seeking to isolate Iran from the international market, Iran could look elsewhere.

Because the global oil trade is conducted in greenbacks, the U.S Treasury was able to restrict Iran’s ability to access the global financial system in the past. That made it extremely difficult for Iran to sell its oil prior to the thaw in relations in 2015, which kept millions of barrels of daily oil production on the sidelines.

This time around, however, the U.S. will likely go it alone. The Trump administration won’t have the backing of the international community in its campaign to resurrect sanctions against Iran, which will make isolation much more difficult. A few months ago, Goldman Sachs predicted that unilateral sanctions from the U.S. could affect a few hundred thousand barrels per day from Iran, but without help from the rest of the world, the effort would not curtail nearly the same amount of oil as the last time around.

Moreover, some analysts argue that the Washington crackdown could merely push Iran to begin selling oil under contracts denominated in yuan rather than dollars.

“Potential consequent reactivation of sanctions may cause Iran to export oil using the Chinese Yuan denominated contract, which launches on 18 January,” Bjarne Schieldrop, Chief Commodities Analyst at SEB, said in a statement.

“This may spark a move away from the present long-established U.S. Dollar (USD) denominated oil trading regime.”

For a while, China has worked to launch a yuan-denominated oil futures contract—a move that would symbolize, as well as contribute to, the ascendance of the Chinese economy as a rival to long-held U.S. hegemony. https://www.zerohedge.com/news/2018-01-08/iran-sanctions-will-help-chinas-petro-yuan

Last week, after US President Trump announced a reduction in money to Pakistan, Pakistan announced its intention to trade in Chinese yuan (see Pakistan to trade in yuan while launch of petro-yuan draws nearer).

Currently, the USA benefits from most international trade as most of the time nations use US dollars for trade. Every time a nation stops doing that, or reduces doing that, it has a negative effect on the economy of the USA.

As I have written before, there is a price to US sanctions and they do affect the dollar.

China has been trying to come up with systems, including with gold backing, to avoid the US dollar (watch US Dollar being challenged by Gold-Petro-Yuan). The USA seems to be inadvertently pushing countries towards China.

It has long been my view (my written view since the last decade) that gold would be involved in backing a replacement to the US dollar.

US President Trump’s tough talk in various areas (like trade and banking sanctions) are encouraging nations like China, Russia, Pakistan, Iran, and Venezuela to take steps to protect themselves from aspects of his threats.

Although the gold-petro-yuan will NOT be the final replacement to the US dollar as the world’s primary reserve currency, the “petroyuan” is a step that will weaken US dollar dominance.

Dethroning the US dollar will cause massive economic problems for the USA. Much more than almost anyone believes. The standard of living in the USA has been raised/subsidized for years because of the status of the US dollar. That status is weakening. This will ultimately severely hurt the USA.

We are getting closer to the great tribulation (Matthew 24:21; see also When Will the Great Tribulation Begin?) and final time of the Gentiles (Luke 21:24) that Jesus spoke of.

Some items of possibly related interest may include:

US Dollar being challenged by Gold-Petro-Yuan The US dollar has been the world’s primary reserve currency for decades. Is this about to change? What is going on with the Chinese yuan and oil and gold? What do the BRICS nations want? What did Venezuela do? Do the Europeans want to dislodge the US dollar as the world’s primary reserve currency? Does US debt play any role? Does the Bible tell us what will happen to the USA and its dollar? What happens if the USA loses its status? Will gold outlast the US dollar? Dr. Thiel addresses those issues and more in this video.
Gentile Cryptocurrency Proposal Two Russian leaders have called for a BRICS-wide and/or EAEU-wide cryptocurrency. This is hoped to be used to replace the US dollar for international trade. BRICS stands for Brazil, Russia, India, China, and South Africa. The BRICS nations represent 3.6 billion people. The EAEU includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Will Gentiles rise up? Are there any prophetic ramifications of what these nations are looking to do? This is a video.
Iran in Prophecy Is Iran in Bible prophecy? If so, what does the Bible teach? What names, other than Persia, may be used to describe Iran? There is also a related YouTube video titled Iran In Prophecy.
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: