The Iranian Supreme Leader Ayatollah Ali Khamenei states that cooperation between Moscow and Tehran and the refusal of mutual payments in US dollars could isolate the USA and “repel the American sanctions”. The Supreme Leader added, “It is possible to cooperate with Russia in dealing with large-scale issues requiring commitment and determination, and to cooperate with it logistically”.
In this context, we should not forget that China, a large oil buyer, is the key player in the crackdown on petrodollars. Beijing has already presented a new oil benchmark in CHY (right now, two benchmark contracts for crude oil, WTI and Brent, are traded in USD) and will issue the first South-African future contract by the end of this year. Interestingly, it was announced that any oil exporter who will accept payment in CHY will be able to convert them into gold at the Shanghai Gold Exchange (SHGE) and hedge the currency value of gold at the Shanghai Futures Exchange (SHFE). That is why China needs physical gold and it has been recently buying it on a large scale.
Undoubtedly, all oil exporters, and especially those who have poor political relations with the USA, will profit from this segregation of the Chinese future market. Because any decrease of USD influence diminishes seriously the ability of Washington to wage an economic war on select states. The introduction of the oil future traded in CHY will enable oil exporters, for example Russia, Iran and Venezuela, to avoid sanctions on their oil trade.
Thus, a plan is being commissioned to ruin the United States of America right before our eyes. Reportedly, the dollar, which is a worldwide currency (but not industry or agriculture), constitutes the foundation of American power. It is this world currency that enables the USA to rob the whole world, making its peoples to pay for the overly ambitious desires of Washington. Some time ago, the USD was secured with the gold equivalent, which was later abolished, and now the dollar is, in fact, left without safeguards. The United States forced an agreement upon Saudi Arabia which provided for the USA’s military aid to the Kingdom and the ‘protection’ of its oil fields, though it isn’t clear against whom. In exchange, the Saudis committed themselves to executing all their oil sales in USD and to investing their profits in US debt securities. By 1975, all oil-producing OPEC members were forced, under pressure from Washington, to follow suit. Consequently, the world plunged into the quagmire of petrodollars.
It is not that the leaders of oil countries could not fail to understand that it was sheer robbery by the United States but, at the same time, they could not undertake anything all by themselves because Washington crushed all such efforts, going as far as occupying the insubordinate states. Take Iraq, for example – the USA imposed unmerciful sanctions on it, making ordinary people suffer from them. The sanctions existed since 1991, and it looked like they would exist forever. However, at the beginning of the 21st century Saddam Hussein made a decision to sell oil for fresh Eurodollars on the basis of the “Oil for Food” program. There was an immediate retaliation: under the pretence of democratising Iraq, the American military occupied the country and unleashed a civil war in it, which is still ongoing. Saddam Hussein was hanged.
Another example: Moammar el-Gadhaf, leader of Libyan Arab Jamahiriya, who was highly favoured by Europe and the USA, decided to introduce the gold dinar and to carry out all trade only in that currency. The punishment was instant: so-called popular unrest was organised from outside, and the Washington-imposed UN resolutions tied up, hand and foot, the Libyan leader who was brutally murdered soon afterwards.
However, the idea of getting rid of the USD stranglehold did not disappear, and right now, the powerful states who are free from American influence, i.e. Russia, China and Iran, set out to implement it. The future of one more country – Saudi Arabia – a leader in crude oil production is in danger. That is to say, the destiny of the United States, who have been taking all possible measures to keep Riyadh in its orbit, depends, without any exaggeration, on the stance of the Kingdom. low to the United States and contribute greatly to the decline of the American empire and its hegemonistic ambitions. . .
By Victor Mikhin
Source: New Eastern Outlook