PetroYuan

Of all symbols of USA superpower, the dollar is probably the most pervasive and entrenched. Used in almost all global trade, the dollar gives the US extraterritorial jurisdiction and influence that it otherwise would not have. It also allows them to run trillion dollar deficits without heating up interest rates. The Chinese are not blind to that and intend to do something about it.
Sometimes in March this yr,while Trump was obsessed with winning trade wars easily,photo ops with Kim Jong and tweeting while taking a nice solid number,the Chinese launched the equivalent of Pearl harbour attack,only this time the US hasn’t realized they are under attack. Enter the petroyuan,oil contracts traded in Yuan.
Before you dismiss them as also runs ,consider the following; China is the largest importer of oil accounting for about 10% of all oil traded,that volume alone is enough to give them a fighting chance. Then it gets better,the wider Asian region is open to a new price index that is more reflective of market conditions in the region as opposed to the current situation where it is based on Brent crude whose production is shrinking BTW.
Add that to the fact that Iran and Russia are keen to break dollar hegemony on oil trade. India keen to avoid coming Iran sanctions is also looking at the options the yuan offers. Here is the clincher,Saudis, afraid of losing market share in China is considering Yuan priced contracts. From here the market is just growing from strength to strength, first contract was physically delivered last month.
https://oilprice.com/Energy/Crude-Oil/China-Completes-First-Physical-Delivery-For-Crude-Futures.amp.html
https://mobile.reuters.com/article/amp/idUSKCN1LF2RE
At the very least, we will get our third major index,WTI,Brent and now Shanghai.
https://wolfstreet.com/2018/08/21/petro-yuan-update-chinese-oil-futures-a-high-risk-endeavor/
Oh,and BTW ,ferk Patco.

Why not just post #ferk @patco

Faka Merikaaaa! :smiley:

Are you suggesting we start hoarding yuan and ditch dollar.

Following closely as well. In the last month, I’ve enjoyed watching usa and S.Arabia tip toeing the butcher at the Saudi embassy. The embarrassing crisis both don’t want, need and is not going away. Each party can’t survive apart, are pretending to show shock and give condemnation.

Petroyuan is just the start. Next will be yuan as mainstay forex trade currency away from usa controlled financial system owned by the deep state. China is playing the long game, 100 years ahead while trump who is leading this trade war is looking at a window on 1 month depending on polling figures.

we are already starting to do so,Yuan’s are expected to be added to our forex reserves.

Things changed once the Yuan was added to the IMF’s special drawing rights…thus joining the major economic powers.

Its now a reserve currency, it had been delayed so much until the west just caved in. China is now literary Asia and you can imagine how many states they have there.

China is always involved in currency manipulation to keep their exports cheap. They use many strategies for manipulating their currency or devaluing their currency against the dollar. Or shoring it up if it dips too much.

One of their key strategies is to buy up American debt using their dollar reserves so that they keep their dollar reserves out of their economy and thus maintain a weaker Yuan. This petro business I believe is meant to strengthen the dipping Yuan as it has been hammered by the tariffs. So they are holding back their reserve dollars until the tariff business is resolved. Thereby starving the market of dollars. It’s all a balancing act meant to make sure their valuable exports remain unharmed.

And this isn’t too bad it means China is being competitive and opening up her tightly controlled markets by extending her currency. But the problem with China is, you can’t trust them too much. Once they get what they want they often manipulate and devalue their currency and you are left holding worthless paper. Which is why people prefer the more stable dollar. It does not exchange at 100 bob today and then devalue to 20 bob the next week.

The stability of a super currency is key. You CANNOT manipulate it willy nilly.

Otherwise you will destroy whole economies. The dollar is tried and tested because Americans do try to behave.

China is not interested in dominating currencies, they just want to make more money from where they can launch their final communist endevour in 2050 ergo domination of the earth…

But that was Deng Xiaoping’s vision. Realistically, China just wants to become another U.S. but with with their own version of the American dream. Xi Jinping calls it the 2050 Chinese Dream.

Every great Chinese leader has a thought on socialism. Xi Jinping’s thought is to achieve his version of the American dream or what he calls a SOCIALIST DEMOCRACY…

http://www.atimes.com/article/xis-road-map-chinese-dream/amp/

https://www.straitstimes.com/asia/east-asia/xi-jinpings-2050-vision-a-china-that-stands-tall-in-the-world

https://en.m.wikipedia.org/wiki/Chinese_Dream

Chairman Mao would have purged Xi Jinping like he purged his father for harboring such scandalous thoughts. Xi Jinping’s father was open minded and moderate and not a full on socialist and for that he paid a heavy price. He was purged/jailed for many years for habouring capitalist thoughts.

His son Jinping is similarly 50/50 especially after living in the U.S. briefly in 1985. Though he doesn’t hesitate in matters executions.

Is it a good idea to ape the west… only time will tell.

Now Russia on the other hand… who the fuck knows what Putin wants.

SOCIALIST DEMOCRACY defined:

http://www.xinhuanet.com/english/2017-10/18/c_136688445.htm

What Uhuru wants for Kenya?

Big 4…???

The party system. You quash the opposition into one ruling party. Mpigane kwa chama moja kanu style. Democracy within the party and NOT multiparty.

Xi Jinping like Moi and Jomo argues that it prevents conflicts and builds cohesion. And of course Status Quo maintains power within the ranks. Kwanza sasa mki inject mambo ya two centers of power … and then build the party up from the ground like the CPC hizo viti hakuna kuondoka. Utamu ulioje huo? Wazee wa chama ndio wanasema.

You are 5 yrs late to the party,China stopped devaluing its currency in 2013. That’s why Trump has not declared it a currency manipulator despite promising to do so on the first day. You do know that the federal reserve bank did quantitative easing for six yrs. That is essentially printing money to pay off debt hence devaluing it. China on the other hand is more interested in keeping its currency stable,otherwise its value would have dropped. And China stopped buying dollars ages ago. Read up on more recent sources will you?
The logic is simple,China imports 200b worth of oil,it would like to pay for it in its own currency.

Hehe. Nimekufanya usome leo. Ufanye research. Now read up some more on how China protects it’s exports.

This is an article from yesterday’s CNBC. China has already started devaluing the Yuan:

https://www.cnbc.com/2018/10/24/dollar-yuan-china-currency-will-weaken-in-next-6-months-says-goldman.html

NOT FROM FIVE YEARS AGO, YESTERDAY!!

And believe you me, you are not smarter than a Goldman Sachs analyst. When they say China is devaluing in the next 6 months, they really are. But of course najua utaanza debate zako hapa which is okay.

And which trader would peg LONG TERM trading of oil futures on such a highly controlled currency like the Yuan? You must be very courageous or have insider info. on the Chinese economy.
The traders are wary:

Traders Really Dig China Oil Futures But Aren't Ready to Commit - Bloomberg

And the reality is this: STRONG YUAN = Expensive Chinese Exports = Less profits for China.

They believe so because they don’t believe in the quality of their export products… which are in essence often substandard. If they believed in quality they wouldn’t fear competition even in pricing.

No matter how bad the German economy is doing or even with dieselgate for instance, you can’t argue with a VW executive on pricing. Juu wanajua hio product yao ni nini hio wanakupatia. THEY STAND BY THEIR PRODUCT! Na ni lazima ulipe.

China can’t live without their 7% growth. China is addicted to growth built on export. They are currently hoarding their massive reserve dollars (gotten from export trade) and thus strengthening the Yuan to protect the Chinese economy from the tariffs.
But CNBC says now they are starting to devalue the stronger Yuan again because they believe the tariffs are easing up.

But if the tariffs continue just watch them, they will panic and start dumping American debt.

What Trump is doing is compressing their balls.

You cannot continue to steal American technology e.g. make an Oppo or Xiaomi or Infinix similar to the American phone then sell it at a quarter or an eighth of an I-phone price…

You must be competitive. Not destroying markets.

And the Chinese entry into the oil futures is a good thing. They are protecting oil trade with Iran but it’s good to to have another big player in the oil futures.

But is Oil as profitable as the exports they are used to? And are they ready to control the politics of oil?
Dealing with Opec.

South Sudan for instance wakikuambia you will get the oil but give us guns and don’t ask questions, wataitikia? Can they protect Iran’s interests?

Oil is more than just money.

@patco ,did you read any of the links you shared? did you understand the info therein? There is a difference between depreciation and devaluation. One implies movement based on market forces while the other is deliberate interference by extra market forces.
Here is a direct quote from the CNBC article you shared.
“China has been criticized for letting its currency fall, but strategists say the country actually has worked to prop the currency up since it got close to that key level of 7. The leadership in Beijing has tried to stem capital outflows, which typically accelerate when its currency weakens.”
Read it again then look at your statement.
What apple tech was stolen to make Oppo and Xiaomi?

And which market forces are these that could cause the Yuan to depreciate? Is the Chinese economy back pedaling?

Can you be serious bwana. The article is very straight foward and in simple English.

The Goldman Sachs guy Timothy Moe is quoted as saying:

“It’s probably unlikely to happen before the end of the year because … 7 seems to be the short-term line in the sand … The U.S. is looking at that figure — and probably a bit above — as evidence that might support allegations of currency manipulation,” Moe told CNBC’s “Squawk Box.”

Kizungu isikulemee please.Na ukishindwa uliza. Devaluing from 6.94 to 7.1

As far as phones are concerned, si mnajua vile mnakuwaga stubborn watu wa team China when technology is mentioned?

Ati sasa mnataka kusema Kwain Chan Caine was seating in his shop in Beijing one day and had a Eureka moment… “I’ve got it! I will invent a new device and call it Infinix!”

After discovering Infinix with his smart brain, Kwain Chan Caine soon discovered Android to go with the Infinix and lived many years in Confucian glory. Confucius say, “China bery smart!”

Kwain Chan Cain also invented car that looks bery much like Range rover but not similar at all!

Kwain Chan Cain also invented a Guisci bag which is bery similar to Gucci but not the same! Kwain Chan Cain also invented the very original Panasaonic flat screen Television. It was a great glory to China.

Kwain Chan Cain was a great inventor. Confucius say, “China great innovator!”

Capital outflows lead to currency devaluation, those are the market forces,the Chinese stock markets have attracted a lot of foreign investors,most want to cash out before the trade war begins, you should know that.
I also expected more solid proof of theft,guess I expected wrong.
There is something called convergent evolution, it will enable you understand why things of a similar function end up resembling one another.

Idiot. the capital outflows are a RESULT of the devaluation not a CAUSE. Elewa kiingereza funda.

The capital outflows accelerate especially AFTER the weakening of the Yuan. They are not the cause but a result of devaluation.

Yaani mtu ujinga ni kama ya kuzaliwa nayo. You have never heard of a Chinese clones in your whole life…

Wizi ndio unaita convergent evolution. Hehehe. Stealing is now convergent evolution.

“I have convergent evolutioned your smart phone, BIATCH!!”

[SIZE=7]Huawei’s flagship phone is a shameless iPhone X copy[/SIZE]
https://www.phonearena.com/showimage.php?m=Users.Users&f=image&id=62 by Victor Hristov / 03 May 2018, 08:31

https://i-cdn.phonearena.com//images/article/104612-two_lead/Huaweis-flagship-phone-is-a-shameless-iPhone-X-copy.jpg
You have probably seen more than one product coming from China that you can associate with another, more popular product by a Western company and hence, we have the cliche about “cheap Chinese knock-offs”.

With Chinese phone tech companies on the rise in the past few years, however, some have argued that some Chinese phone makers are are now finally aspiring to build their own identity and change this perception. We ourselves were impressed with the hardware design of phones like the Huawei Mate 10 Pro and the Xiaomi Mi Mix series that look both stylish and original.

Unfortunately, that is not quite the case with Huawei’s latest and arguably most important phone: the new Huawei P20 Pro.

Rather than continue in the footsteps of the original Mate 10 Pro design, Huawei has made a 180-turn with the P20 Pro and the new phone looks surprisingly similar to one other certain phone.

It’s just obvious: the notch, with its similar shape and form, the overall design styling with the glass-metal look, the vertical camera arrangement positioned on the left handside on the back of the phone, the curved metal sides that are now shiny as well, the drilled holes for the microphones, and then even little things like the icons (of course, Huawei’s music icon has to look eerily similar to the one on the iPhone and there was of course no other way to make Huawei’s health icon than an identical red heart on a white background…). We can go on and on: the identical dialer icon, the clock icon, the weather app icon, but then also inside the weather app, the copycat design of the app that is just a rip-off of the one on the iPhone X and even has the same animations, the settings icon!, the same folder view, the rounded rectangles for notifications, the rip-off wallet icon… it’s everything!

[SIZE=5]Notch, design style… Huawei even copied whole apps[/SIZE]

https://i-cdn.phonearena.com//images/articles/321802-thumb/P1320628-Custom.jpg
https://i-cdn.phonearena.com//images/articles/321801-thumb/P1320626-Custom.jpg

https://i-cdn.phonearena.com//images/articles/321789-thumb/P1320631-Custom.jpg

https://i-cdn.phonearena.com//images/articles/321800-thumb/P1320620-Custom.jpg
https://i-cdn.phonearena.com//images/articles/321799-thumb/P1320615-Custom.jpg

We get it: it’s okay to be inspired by great ideas. It’s okay to interpret them in your own way and follow when someone else worth following leads the way, but such blatant copying shows nothing but an incredible lack of original thought and great impudence. It’s excessive, preposterous.

So yes, while the Huawei P20 and especially the P20 Pro are the best phones that Huawei has made to date, they are actually in many ways a shameful rip-off and it’s impossible to unsee that.

And that really is a shame because the Huawei P20 Pro has an exciting camera - probably the best smartphone camera for night photos out there - and it has a solid battery life, a nice display and a good overall experience. It’s a shame because the P20 Pro does not need to copy the iPhone to be successful. Yet it does. And if you are okay with that, you will likely enjoy using the phone, but there will always be that voice in the back of your head that will remind you about Huawei’s little sins.