The winner of the Iranian sanction is...China
It's not like you couldn't see this one coming.
Last week, right before Trump imposed new economic sanctions on Iran, Reuters posted this headline:
Iran oil sanctions could advance China's 'petro-yuan'
Guess what? They were right.
Trade in Chinese yuan-denominated crude oil futures has surged since President Donald Trump pulled the U.S. out of the Iran nuclear deal.
... But Trump's move to reimpose sanctions on Iran may have spurred interest in the Chinese oil futures. Last Wednesday, daily trade volumes in INE oil futures hit a record of over 240,000 lots, double what they were on Tuesday in Asia, before news of the renewed sanctions broke.
Oil market veteran John Driscoll told CNBC last week that Iranian traders have the option of trading in Chinese yuan-denominated crude oil futures on the Shanghai International Energy Exchange — circumventing any restrictions on dollar-denominated trade and U.S. banks.
China's Shanghai exchange is still a minor player on the global oil trading market, but the Iran sanctions are making it grow fast.
The share of yuan-backed crude oil contracts has soared to 12 percent of global trading since US withdrawal from the Iran nuclear deal, compared to eight percent in March.
China is the largest oil importer in the world, and is Iran's largest single oil client.
The idea of the sanctions was to make it impossible for Iran to sell it's oil, except on the black market at a big discount, but that doesn't appear to be an option any longer.
Iran was already in the process of cutting itself off from the dollar.
Last month, Tehran and Moscow inked a deal to conduct all its business in goods rather than in dollars as both seek to reduce the influence of the U.S. currency on their economies. A month earlier, Iran banned settlement of import deals in dollars and ditched the currency in favor of the euro in reporting its forex reserves.
It's another tiny cut in the long-term demise of the petrodollar.
The Iran sanctions, in addition to the Russia sanctions, are forcing Europe to consider the unthinkable - breaking away from the U.S.
Trump’s decision to pull the U.S. out of the Iran Deal has discouraged investments and has kept many European Union banks that were willing to lend to Tehran in limbo.The European Union has also lost some $100.0 billion of export revenue because of U.S.-led sanctions against Russia.
The anger at Trump’s reversal of the Iran deal could trigger an unexpected show of pride and unity from the Europeans.
They could resolve to defy Washington on both Iran and Russia. They could even start to pull away from NATO to develop a more independent defense policy.
Comments
I would think the rest of the world would be
overjoyed to get out from under our thumb. They have nothing to lose and everything to gain from the death of the petrodollar.
I'm tired of this back-slapping "Isn't humanity neat?" bullshit. We're a virus with shoes, okay? That's all we are. - Bill Hicks
Politics is the entertainment branch of industry. - Frank Zappa
Life under the evil empire is anything but good.
I, too, would think the world would be chomping at the bit to finally bring down American domination.
"Religion is what keeps the poor from murdering the rich."--Napoleon
It looked like
this was in the works with China challenging the petro-dollar. It is time to break the stranglehold of the empire. It will be painful for the US, but in the long run, it will be far better for both the citizens of the US and the world.
My sig line, courtesy of Dr. Cornel West: "I don't want to run the empire, I want to bring it down!" I have had this sig line ever since January 2012 when Dr. West spoke to us at Occupy Tallahassee.
Do I hear the sound of guillotines being constructed?
“Those who make peaceful revolution impossible will make violent revolution inevitable." ~ President John F. Kennedy
think that may be an understatement
Thanks for the cheering essay!
If I may add some bits that cheered me?
The US PTB are, at long last, being shrugged off of the shoulders of some of those they've been 'hag-riding' for so long.
Perhaps once they've been weakened and disrupted by the loss of those 'allies' they've been using, finally realizing that going along with and actively supporting these lunatic fascists gains them nothing and that they can stop helping to fund their own eventual corporate/military takeover by these (together with the rest of the entire US PTB-targeted world) and instead function as independent countries, the North American publics will be able to do so as well, and build sustainable and responsible democracies at home instead of being forced to pay to destroy attempts by other people at developing social democracy in their own countries abroad.
https://www.rt.com/business/426856-europe-to-ditch-us-dollar/
https://www.rt.com/news/426342-trump-assad-deep-state-syria/?spot_im_scr...
And it seems that what appears to have been a US PTB attempt to bully the head of the International Atomic Energy Agency (IAEA) into lying about Iran's compliance has not succeeded, with the agency standing firm, even though the target resigned, perhaps to avoid having family murdered, no idea.
But the beautifully written article lays it all out quite clearly.
https://www.rt.com/news/426525-iran-iaea-resignation-chief-deal/
Zero credibility with anyone - only, that's not just a Trump thing, he just makes it more obvious than did his predecessors.
If you lie down with psychopaths, you may never rise again. Best defense, no be there.
Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.
A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.
Is it wrong of me to be almost
Only a fool lets someone else tell him who his enemy is. Assata Shakur
I comfort myself with the thought
that even if North America goes down in the dark, (the poorest like myself going first, of course) that life and a move toward a more civilized world might still be possible elsewhere on Earth.
Also, if nobody else wants to deal with the US or any remaining allies, guess which isolated countries have to become self-sufficient and develop a functional economy where workers have money to spend on products - and guess which corporate interests and billionaires are forced to finally realize that there are limits and that they can be sued all to hell by countries they've damaged since international law might actually start being applied? Why waste all that worry; let's think positive while it's still legal.
Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.
A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.