TLAXCALA تلاكسكالا Τλαξκάλα Тлакскала la red internacional de traductores por la diversidad lingüística le réseau international des traducteurs pour la diversité linguistique the international network of translators for linguistic diversity الشبكة العالمية للمترجمين من اجل التنويع اللغوي das internationale Übersetzernetzwerk für sprachliche Vielfalt a rede internacional de tradutores pela diversidade linguística la rete internazionale di traduttori per la diversità linguistica la xarxa internacional dels traductors per a la diversitat lingüística översättarnas internationella nätverk för språklig mångfald شبکه بین المللی مترجمین خواهان حفظ تنوع گویش το διεθνής δίκτυο των μεταφραστών για τη γλωσσική ποικιλία международная сеть переводчиков языкового разнообразия Aẓeḍḍa n yemsuqqlen i lmend n uṭṭuqqet n yilsawen dilsel çeşitlilik için uluslararası çevirmen ağı la internacia reto de tradukistoj por la lingva diverso

 19/10/2017 Tlaxcala, the international network of translators for linguistic diversity Tlaxcala's Manifesto  
English  
 UNIVERSAL ISSUES 
UNIVERSAL ISSUES / Venezuela’s rebels against the Petrodollar
Date of publication at Tlaxcala: 21/09/2017
Original: Il Venezuela si ribella al petrodollaro
Translations available: Português  Türkçe  Français 

Venezuela’s rebels against the Petrodollar

Manlio Dinucci Μάνλιο Ντινούτσι مانليو دينوتشي

Translated by  Anoosha Boralessa

 

Venezuelan Minister of Oil announced on 15 September 2017: “From this week, the average price of oil will be indicated in the Chinese yuan”. For the first time, the sales price of Venezuelan oil is no longer priced in the dollar.

This is Caracas’s response to the sanctions imposed by the Trump Administration on 25 August; sanctions far harsher than those imposed by the Obama Administration in 2014, for the Trump sanctions prevent Venezuela from cashing in the dollars received from selling oil to the United States - more than a million barrels per day. Until now, these dollars were used to import consumer goods such as foodstuffs and medicines.

The sanctions also prevent bonds issued by the PDVSA (the Venezuelan state oil company), from being purchased. Washington is seeking to achieve two objectives:
• to heighten in Venezuela a scarcity of basic necessities and thus provoke growing discontent among the people, which is exploited by internal opposition (bribed and fed by the U.S.A.) with the aim of demolishing Maduro’s government; and
• to send the Venezuelan state into default, that is, to bankrupt it, preventing it from paying its foreign debt instalments. In other words, to bankrupt the state with the biggest oil reserves in the world, reserves that are more than ten times the size of the US’s.

Caracas is seeking to dodge the stranglehold of the sanctions. It is no longer quoting the sales price of oil in the US dollar. From now on, this price will be quoted in the Chinese yuan. A year ago, the yuan had entered the IMF’s basket of currencies (joining the dollar, the euro, the yen and the sterling) and Peking is all set to launch future contracts for the sale and purchase of oil in yuan, convertible into gold. “If the new future were to gain a foothold, eroding even just partly the excessive power of the petrodollar, it would be a thundering blow for the American economy”, comments Il Sole 24 Ore.

Billboard from 2015

What is being debated by Russia, China and other countries, is not only the excessive power of the petrodollar (the currency of reserve earned from the sale of oil), but the very hegemony of the dollar. Its value is determined not by the US’s real economic capacity but by the fact that the dollar constitutes almost two thirds of the global reserve currency and is the currency used to stabilize the price of oil, gold and goods generally. This permits the Federal Reserve, the Central Bank (which is a private bank), to print thousands of billions of dollars to fund the U.S.A’s colossal debt – around 23,000 billion dollars – through purchasing bonds and other instruments issued by the Treasury.

In this context, Venezuela’s decision to free the price of oil from the dollar is causing a seismic tremor that, from the South American epicentre, is making the entire imperial palace, founded on the dollar, tremor. If the example set by Venezuela were to provoke a contagion, if the dollar were no longer to be the main currency of trade and the international reserve currency, an immense quantity of dollars would flood the market, making the value of the US currency collapse.

This is the real motive pushing President Obama to declare “a national emergency against the unusual and extraordinary threat posed to national security and US foreign policy by the situation in Venezuela” in the Executive Order of 9 March 2015 [1].

This is the same motive for which President Trump announces that the “military option” against Venezuela is now on the table. The U.S. Southern Command is getting ready for this. Its emblem is the Imperial Eagle that dominates Central and South America, ready to sink its claws into whoever rebels against the Dollar’s empire.

Translator's Note

[1] “Declaration of a National Emergency with Respect to Venezuela”, “Executive Order – Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation in Venezuela”, by Barack Obama, “White House Fact Sheet: Venezuela Executive Order”, Voltaire Network, 9 March 2015.





Courtesy of Voltaire Network
Source: https://ilmanifesto.it/il-venezuela-si-ribella-al-petrodollaro/
Publication date of original article: 19/09/2017
URL of this page : http://www.tlaxcala-int.org/article.asp?reference=21589

 

Tags: Petroyuan vs PetrodollarVenezuela-ChinaDecline US Empire
 

 
Print this page
Print this page
Send this page
Send this page


 All Tlaxcala pages are protected under Copyleft.