Five ‘Dry Runs’ Successfully Completed As China Prepares To Launch Its Gold Convertible Petro-Yuan
SilverDoctors.com
February 15, 2018
New reports are coming in on the extensiveness of the testing for the oil-for-yuan contract. Here’s the details…
March 26th is the tentative date. We’ve got our calendars marked, but first, an attempt to clarify some confusion people have about the petro-yuan.
Why?
Because discussing the petro-yuan, and the convertibility of yuan into gold, either in Shanghai or on the LBMA where gold is priced in Yuan, is about as polemic in the gold & silver community as Bitcoin. Perhaps even more so than Bitcoin.
As you will see below, it’s not even us saying the oil-for-yuan contract is convertible to gold, but a well respected news agency.
Regardless, to help clarify some of the confusion, here’s two points I argued pertaining to what everybody seems to be missing about the whole oil-for-yuan/oil-for-gold contract:
The first point is a counter to this statement which everybody accepts as doctrine: Anybody can buy gold with dollar at any time – no gold-backed oil contract needed.
Let’s think about “anybody can buy gold with dollars now” for a moment.
Dollars come from the United States. The benchmark global gold price in dollars comes from the United States.
It makes sense that if a company/country is selling a crap-ton of barrels of oil for dollars, said company/country would be most efficient in purchasing their physical gold on the COMEX with those dollars.
It’s not like a company or country can walk into some local coin shop with $350,000,000 in U.S. dollars and scoop up a 259,259 Chinese Gold Pandas.
They need the COMEX.
Here’s the problem: If the U.S. futures market price of paper gold is nothing more than a debt based fiat currency price for something that never actually gets delivered, but rather, gets cash settled with more debt based fiat currency, then the company/country that just sold their oil for dollars is not really able to just take those dollars and buy gold as the “matter-of-fact” statement claims.
Secondary note to the first point:
We see what happens to world leaders when they announce or begin to sell their oil for something other than dollars.
Anybody who is not familiar with this, the answer is death of said leader and destruction/plundering of the country by the war machine.
The Rest…HERE
