08/11/2017 (Fri) 16:28:40
>>1356CHINA ON WHITE HORSE
The Chinese are always opportunistic. They invest in trade and structural placements, in the hope of winning commercial partners and friends. They do not wage war to win their way. The Chinese are observing the ARAMCO deal and its massive snag. They might hand to the Saudis an over-valued offer on a gilded platter. China has stayed away from any direct involvement in the Yemen War. However, they might be the supplier of some missiles used in Yemen by the native defenders, delivered by the Iran Military. China might over-pay for a stake in the ARAMCO company for two reasons. First, they want a toe-hold in the kingdom, in order to win other trade deals with a degree of exclusivity. They would become a favorite foreign son in the process, especially if other Western financial houses refuse to invest in the bloated over-valued petro-chemical firm. Second, the Chinese would then be in a position to demand that oil sales to China be paid in Yuan currency, in RMB terms. The ARAMCO investment, large or small, would serve as leverage to fracture the Petro-Dollar at its home base, within Saudi Arabia. The shock waves would be heard around the financial world.COPY CAT DAMAGE AS WILFIRE
Once the Chinese win the privilege to buy Saudi oil in RMB terms, the other Gulf Arab oil producers will match the offer of selling oil to the Chinese in their own currency, and NOT in the USDollar. The Petro-Dollar defacto standard is about to suffer multiple coffin nails. The rival Gulf Arabs will not wish to lose market share to the Saudis. They will permit the Chinese payment terms in RMB, a no-brainer. On the other side, Southeast Asian oil customers will wish to buy crude oil from the Gulf region generally in currency other than the USDollar. They are fast dumping their USTreasury Bonds, a trend that has endured for almost two years. The Gulf Arabs will grant the Asians the right to pay for crude oil in whatever currency they wish, being very accommodative. The result will be deeply damaging. The Gulf Region will sell crude oil in non-USD terms on a widespread basis and significant scale. To be sure, the Saudis and other Arab rivals will be pressured by the USGovt not to agree to the RMB oil deal. But Washington has lost most of its prestige and most of its power. The NeoCons in charge are diverted in their attention with the slightest temptation toward useless nonsense. The USCongress is a chamber of corrupted members and babbling fools, the majority of whom are bribed into puppet status.