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Jim WIllie: Saudi's are on the verge of joining Russia in non-dollar oil sales

Oil Tanker
Oil TankerPhoto by U.S. Navy/Getty Images

Last week, Russia announced an game changing shift for energy in which they are now allowing the sale of oil and natural gas to be done in both Roubles and Yuan, bypassing the dollar and cracking the 40 year old petro-dollar system. And on Aug. 31, Dr. Jim Willie reported during an interview with TFMetals Report that this break away from U.S. hegemony over the purchasing of oil is not being limited to just Russia, but that the foundational country of petro-dollar origin, Saudi Arabia, is in talks with the Eurasian energy giant to join them in a partnership that will also disconnect the Arab Kingdom from the dollar, and open energy sales within the OPEC nations to be done in Roubles, Yuan, and perhaps even the Euro.

While speaking with Craig 'Turd' Ferguson of the TFMetal Report, Dr. Jim Willie also pointed out that while Russia was not fully ready to use the Rouble as a primary currency for a large portion of their oil sales, the inclusion of the Yuan by Gazprom will allow multitudes of nations to bypass the dollar, and allow them to purchase oil directly from Russia without having to be enslaved to SWIFT and the financial mechanisms of the reserve currency that the U.S. has used not only for profit, but as a financial weapon.

Jim Willie: So what happened with Russia? They did in May the holy grail energy deal between themselves and China, and this is a long term, 20-30 year agreement. As well, back in May, April, and March I said watch Russia accept Yuan as a temporary device for energy sales.

Russia isn't fully ready to do just Rouble sales. In Europe I think they are going to do Euro and Rouble sales, and with China they are gong to do exclusively Yuan sales.

So watch the Saudi's... watch OPEC... watch the deals that Russia starts to integrate with the Person Gulf nations.

And kiss goodbye this petro-dollar. - TFMetals Report, Aug. 31

In validation to Jim Willie's assertion of a growing partnership being formed between Russia and Saudi Arabia over currencies and oil sales, an interesting event took place a little less than two weeks ago that according to the Guerrilla Economist, had to do with the theft of confidential documents a Saudi Royal was carrying that were tied to negotiations between Russia and the Arab Kingdom over oil sales and the future of the petro-dollar.

The robbers, said to number between five and eight, seized the Mercedes and its three occupants – as well as €250,000 and what Le Parisien newspaper described as sensitive documents.

Soon afterwards the robbers released the hostages and abandoned the vehicle, which was found an hour later in Saint-Mesmes, a village in the Ile-de-France region north-east of Paris, along with one of the BMWs. Both vehicles were burnt out. - The Guardian

The ability for major nations such as those in Europe, the Middle East, and in Asia to begin using the Yuan as the primary currency to purchase oil from the world's leading energy producer is already available as more than 23 countries have established swap lines which can facilitate the exchange of their sovereign currencies into Yuan. And the benefit of this over use of the dollar is that nations can disconnect themselves from the SWIFT system of transfers, and alleviate much of the inflation that is currently being exported to their countries by the U.S. as the Federal Reserve continues to devalue the dollar through massive money printing programs.

The days of the petro-dollar being the sole currency for energy and commodity transactions is quickly coming to a close, and as such, the U.S. is not going to go down without a fight. And the more policies that come out of Washington which threaten the global financial system through economic sanctions and attempted 'red lines' that have far reaching effects for trade and sovereign economies, the faster the world will flee the old system, and more further into Russia and China's camp which is outside the dollar, and dedicated towards a new free trade foundation.