“There is more than one way to skin a cat” says an old proverb and there is another way to bring the U.S. to its knees, besides using hydrogen bombs or EMPs and that’s China’s “oil – for yuan – for gold” program (in effect, baiting the yuan hook offered to oil exporters, with a gold worm.). If the U.S. cannot stop China from implementing said program, then the fate of the U.S. is at hand.
This article is an edited ([ ]) and revised (…) version of the original written by Hugo Salinas Price to ensure a faster & easier read. It may be re-posted as long as it includes a hyperlink back to this revised version to avoid copyright infringement.
Once the oil exporters accept the deal, they will all be permanently caught. The price of gold will begin to rise, and rise and rise as more and more oil income is exchanged for gold…and, as gold commences its historic rise, the dollar will suffer a historic decline in acceptability, because higher gold means a lower dollar – more dollars will be needed to purchase gold.
Here I pose a question: once the oil exporters get a good deal, receiving gold for their exports to China, what will the other major exporters of commodities to China be thinking? (Think of iron ore, copper and all the other commodities that make up the recently recorded $1.817 Trillion of yearly imports by China.)
I think we can expect that other exporters to China will also want to get in on the deal – their commodities sold to China for gold – not dollars. The sooner they decide to ask for this, the more gold they will receive, initially.
All the countries that hold US dollars as Reserves will be aghast as they see the value of their Reserves collapse in terms of gold. Too late, they will hasten to acquire more gold for their Reserves, adding to the rush for gold.
The implications I see for the Chinese move are vast. We may witness the return of the gold standard, not as we had imagined, but simply as the result of a spontaneous turn to gold as a means of trade initiated by the Chinese measure…
It may be that we are on the verge of a monetary revolution in the world. One which will end the predominance of the U.S. dollar, and with it, its world empire. The dollar may swiftly become worthless in terms of gold. As a world power, the U.S. would be effectively castrated.
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