I sat down for an interview with Radio Sputnik Moscow this morning where we discussed China’s new oil futures contract and the beginnings of the petroyuan trade. I touch on the coming financial and political crisis that will hasten the conversion of a portion of the world’s trade to the Yuan at the expense of the dollar.
And at some point giving up the petrodollar is the key to how the U.S. can give up its reserve currency status, if that is, as Martin Armstrong pointed out this morning, what we want to do in the long run.
Also, in many ways I agree with this article by Mike Shedlock on the near-term effects of the Petroyuan. His point is that the U.S. is getting out from underneath the burden of the reserve currency, which, economically speaking, is a very good thing.
But, both Shedlock and Armstrong continue to…
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