China's new plans to back oil with gold emerged out of BRICS conference under Putin's blueprint to end dollar hegemony

by Kenneth Schortgen, The Daily Economist:

Last weekend, officials from China's Shanghai International Energy Exchange dropped a bombshell that the Asian power would soon be introducing a new oil contract that would be denominated in the Yuan currency, and convertible with gold should customers demand it.  However, new information out on Sept. 5 shows that this gambit was not unilaterally decided by China alone, but came out of a blueprint forged in part by Russia's President Vladimir Putin during the recent BRICS conference.

And then, Putin delivers the clincher; “Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulation reforms and to overcome the excessive domination of the limited number of reserve currencies.” 
“To overcome the excessive domination of the limited number of reserve currencies” is the politest way of stating what the BRICS have been discussing for years now; how to bypass the US dollar, as well as the petrodollar. 
Beijing is ready to step up the game. Soon China will launch a crude oil futures contract priced in yuan and convertible into gold. 
This means that Russia – as well as Iran, the other key node of Eurasia integration – may bypass US sanctions by trading energy in their own currencies, or in yuan. Inbuilt in the move is a true Chinese win-win; the yuan will be fully convertible into gold on both the Shanghai and Hong Kong exchanges. – Asia Times

So while President Trump and the Pentagon continue to play diplomatic 'chicken' over the potential threat of North Korea, they appear to be missing completely the covert destruction of dollar hegemony in almost the same exact fashion that the U.S. used 25 years ago to bring down the former Soviet Union...

Read More @ TheDailyEconomist.com