The True Economic Stakes Over Venezuela: Oil, Gold, Currency, Sovereignty

It’s not enough to emphasize that the West wants regime change in Venezuela because of its oil!  That’s a given.  What’s not discussed is what the oil is wanted for.  What Maduro’s Venezuela and its allies Russia, China, Turkey & others are doing is inventing new means for pricing, trading & investing oil, along with other valuable natural resources like gold, and doing so away from the US dollar.  What that in turn could eventually do is unravel a global fiscal house of cards, tied together by the strange bedfellows of reserve currency confidence and endless mounds of debt, which would make the 2008 Financial Crisis look like merely failing to advance in a game of Dragon’s Lair circa 1983.  Yes, I like ‘80s references.

From the view of the US & its transatlantic allies, the current global monetary system, which is based on the US dollar as reserve currency and energy pricing & trading standard, cannot tolerate a shift away from dollar pricing & trading of oil without sustaining cataclysmic effects upon the US, UK, EU & Japanese economies.  The ability of the US to perennially borrow from itself to finance its deficits cannot sustain were oil somehow to be sustainably priced in nondollar terms, as the dollar’s global reserve currency status would then effectively be called into question, especially considering the obscene levels of public & private debts plaguing the western banking system.  Nations such as Venezuela, China, Russia, India, Japan, Germany, Venezuela, Turkey, Iran and others know this & are trying to plan around it, and Caracas is one testing ground.  Hence the frantic haste in Washington for removing Maduro by any means necessary.

In this 39th episode of Money & Fear, we’ll explore what the corporate won’t – the tight links between economics & geopolitics when it comes to oil, gold, currencies, the Washington Consensus, and nations seeking increasingly to duck said Consensus.  No, world affairs can’t be reduced to simple ‘good guy/bad guy’ narratives, which the mainstream press is otherwise tasked with feeding to you.  This edition will slip you another secret manila envelope in that darkened garage…

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Show Notes

Venezuela’s Crisis Threatens U.S. Control Over Oil Prices

Venezuela Oil Company PdVSA Given Until April 28 Before Crude Oil Ban

A Dethroned Petrodollar:  Could even the US Treasury be caught off guard?

The US can eliminate its trade deficit or run the world’s dominant currency—but not both

Report: U.S.-Based Plane Caught Bringing Arms into Venezuela

U.S. Treasury Set to Borrow $1 Trillion for a Second Year to Finance the Deficit

How Petrodollars Affect The U.S. Dollar

Chevron, the Last U.S. Oil Major in Venezuela, Debates : Should It Stay?

The Latest: Chevron says Venezuela operations to continue

Total pulls staff out of Venezuela after US sanctions

Treasury sanctions Venezuela state-owned oil firm in bid to transfer control to Maduro opposition

Iran, Venezuela, Russia may face pain from cratering oil prices

Why Would the Saudis Deliberately Crash the Oil Markets?

Venezuela to bump China oil exports to one million barrels a day

Venezuela Oil Joint Venture Thrives Within Months of China Deal

Chinese-Venezuelan Joint Venture Doubles Oil Production

Chinese investments most at risk from US sanctions against Venezuela

Venezuela frees Chevron executives held since April

Venezuela’s “Petro” Cryptocurrency: Money in Revolt

Petromoneda – “Petro” (cryptocurrency)

In Venezuela, Russia pockets key energy assets in exchange for cash bailouts

Venezuela’s Oil Enough for World’s 30 Year Energy Needs

Venezuela Confirms Coltan Deposits, $100 Billion in Gold Reserves

Venezuela Says China Investing $250 Million to Boost Oil Output

China oil futures launch may threaten primacy of U.S. dollar: UBS

Russia Signs $6 Billion Investment Deals With Venezuela, Maduro Says

Maduro Tweet:  Successful work day that ends with the signing of several agreement for more than 6.000 million dollars, to invest in the oil and gold extraction areas. Additionally, we ensured 600,000 tons of wheat by 2019. Alliances for the happiness of the people!

Russia Vows To Defend Its Venezuelan Oil Assets

Venezuela's New Focus on Heavy Oil

Amid The Venezuelan Crisis, A Look At Oil, Russia And Trump

The Coming US-China Proxy War In Venezuela

Russian Tu-160 Bombers Fly 10-Hour Caribbean Patrol From Venezuela Drawing Ire From U.S.

Two wrenches in Washington's oil sanctions against Venezuela: China and Russia

Oil output bounces back at Venezuela-China crude joint venture

Shanghai shakes up global oil trading: New futures contract rapidly rises to become third global benchmark

Chinese Gold and Silver Exchange Society

Shanghai Gold Exchange

China Moves To Dominate Gold Market With Physical Exchange

Petroyuan – the shape of things to come

The billion-yuan question facing China’s crude futures exchange

Belt and Road Initiative

Saudi Arabia to build US$10 billion oil refinery at China-funded Gwadar Port in Pakistan

Why Russia, China are fighting US push against Venezuela's Maduro

Venezuela gold holdings in Bank of England soar on Deutsche deal: sources

Op-Ed: UK Central Bank Holds Venezuela’s Gold Hostage – Bitcoin Users Unaffected

Cryptocurrency, Economy Experts Support Maduro in Clash With Bank of England

The Oil “Price” Is A Key Political Tool

Venezuela Will Need a Bigger Chart for Its BTC Trading Volume

Maduro Sold 40% of Venezuela's Gold Last Year Amid Cash Crunch

Trump Orders Sanctions on Venezuela Gold to Pressure Maduro

Venezuela to refine tons of gold in Turkey

Are We Nearing Another Credit Crisis?

Mystery of the Venezuelan gold: Bank of England is independent of UK govt – but not of foreign govt

Washington Intends to Fight Maduro With Venezuela's Own Monies -- A View From Russia

British analyst: Venezuelan patriotism, Russian support will be crucial to defending Venezuela from US aggression

China Joins Russia In Backing Venezuela Against U.S. Moves, Warns of ‘Serious Consequences’ to Donald Trump’s Plan

London may be key to ‘hot’ euro-yuan rival to the US dollar

Asia needs yen and yuan energy trading - Amid rising US protectionism, Asian currencies must take their places alongside dollar

Dollar-Selloff Intensifies as China Launches Petro Yuan On March 27, 2018

What will happen to the US dollar if China starts buying oil in yuan?

China is reportedly taking the first steps to pay for oil in yuan: Sources

Politics & Policy - What Latin America Should Tell China About Venezuela - Bankrolling the region’s biggest humanitarian disaster won’t win Beijing many friends

China’s petro-yuan ‘thundering into action’ as Iran ditches US dollar in oil trade

Global Trading Giants Dip Toes in China Oil Futures on Debut Day

China Ends 25-Year Wait as Yuan Oil Futures to Start Trading

Petroyuan: China Gives Dollar Jitters as it Introduces Yuan Oil Futures

How China Is About to Shake Up the Oil Futures Market

Trump Admin Hands Venezuela's US-Housed Bank Accounts Over To Guaido

Venezuela is not only about Oil, but about Russia and Gold…

Papers

Risque pays du Venezuela : Commerce international - Société Générale

China: The Emergence of the Petroyuan and the Challenge to US Dollar Hegemony by John A. Mathews and Mark Selden

Gold: A Zero-Risk Monetary Asset by Nick Barisheff

Oil On Gold:  Exploring a Hard Asset, Multipolar Alternative to the Petrodollar Standard by Pye Ian

Books

The Hidden Hand of American Hegemony:

Petrodollar Recycling and International Markets by David E. Spiro

The Gold Cartel:  Government Intervention on Gold, the Mega Bubble in Paper, and What This Means for Your Future by Dimitri Speck

The Art of War by Sun Tzu (Translated by Lionel Giles)

Videos

Venezuela redirects oil exports away from US

*For additional footnotes and links refer to the Newsbud article link above

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Comments

  1. Thank you for your analysis of why US policy towards Venezuela has become much more aggressive recently.

    What do you think about Russian Lukol recently stopping its oil swaps with Venezuela because Lukol did not want to suffer from US sanctions? Does this indicate Russian entities might be limited in how much they can help Venezuela?

    • Thank you. I sense the Lukoil/Litasco move is in actuality a defensive one, albeit potentially couched to project compliance with US sanctions.
      Keep in mind that Russia is hardly abiding by unilateral US sanctions imposed practically anywhere else, and more importantly, Moscow has had plenty of US sanctions thrown at itself for years now.

      Speaking of the latter, fresh newer sanctions were just proposed by Washington against Moscow. Note the language in the below:

      http://tass.com/politics/1045137

      “The legislators suggest restrictions on transactions with Russian sovereign bonds and also sanctions against energy projects by Russian state companies abroad and certain banks.”

      That said, larger Russian oil concern Gazprom Neft doesn’t see the need to pull out of Venezuela.

  2. John Phillips says:

    An excellent analysis of what’s happening in Venezuela as it relates to the dollar!
    Best Regards
    John

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