China's pushes to de-dollarize commodities markets, sets up new metals exchange
ฝัง
- เผยแพร่เมื่อ 3 มิ.ย. 2024
- China has opened a new global metals exchange in Guangzhou, which has begun trading lithium futures contracts.
In just the first month, trading on the Guangzhou exchange passed established exchanges in London, Chicago, and Singapore.
This is yet another effort by China to reduce exposure to trading in the US dollar. For China it is particularly urgent, and much simpler as well, to do so in the markets where China is the dominant buyer, and the top producer.
The lithium exchange will be a forerunner for other industrial metals over coming months, as China de-risks from Western banks and currency exchange regimes.
Resources and links:
China pushes to dominate trading in clean energy metals
www.ft.com/content/dcec0b54-d...
London Metal Exchange is grabbed by Chinese at £1.4bn
www.standard.co.uk/business/b...
Chinese buy London Metal Exchange in £1.4bn takeover
www.independent.co.uk/news/bu...
CME Group, Rules overview for failures of delivery in commodities contracts
www.cmegroup.com/articles/202... - วิทยาศาสตร์และเทคโนโลยี
World should be out of the dollar. Because it keeps poor countries poorer.
It is heart breaking to see the 6-7yr cycle of recession and foreign earnings wipe out bcos the smaller nations are run on exchange rate and borrowings on US$.
Absolutely correct 💯.
Especially when those countries are poor, jealous, and envious, right?
@@user-ok6re8gv1q Exactly. Very heartbreaking.
@@user-ok6re8gv1q Those cycles are intentional, and are part of what allows capital to accumulate by wiping out smaller players.
My Western mind is fascinated by how slowly this has been happening. It's not like the chess games I studied and played as a kid. China is arguably not fighting at all. Just responding rationally to US decisions in ways that lead to outcomes the US doesn't want.
It is not happening slowly but very quickly actually. It was almost unthinkable for oil trades to be done outside the USD for example, but now trades are already being done outside the USD on a regular basis.
They started trying more than a decade ago, but it didn't gain much traction. China started to push for it really hard since February 2022 and it has started to show the effects quickly lately.
China never played Chess, it plays Go
Russia plays chess
ameriKKKans play checkers
American plays Ticc-toc-toe?@@rahulramteke3210
Chinese play "weiqi". This is an ancient board game developed around 4000 years ago. The Japanese name for weiqi is "go". It is a game of strategy. It looks simpler than chess but is more complex.
Good.
About time we get out of the extortion that is the USD.
How?
@@theblackdog2399 you're looking at it.
@@gelinrefira I don't see anything, wingnut!
@@theblackdog2399 then you are more blind than a bat and as delusional as an ostrich with its head in the sand.
There is no point in talking to you.
@@theblackdog2399 You are another natio, you produce products borne out of your sweat, requires energy, expenditures and time. then you have to process it for export. All the US have to do to get your product is print dollars out of thin air. You don't see the exorbitant privelege the dollar enjoys? It is actually injustice.
Then what do those nations do with those dollars/ They invest it by buying US treasury bonds so the US is actually double-dipping in benefit.
I think everyone has underestimated the Chinese and this scares the living daylight out of them.
Shh they're a communist dictatorship and are merely copycats.
not them, only the U$andUK!
the terror of the schoolyard bully when he loses his ability to threaten.
@@monipenny408..
But don't they consider themselves to be the "WORLD," and nobody else counts .
@georgefielder7423 These days the 'World' becomes smaller every day
I appalaud the Chinese for this astute move. Why should the West dominate the trade when they are no longer the largest player in metals? Plus trust is a key issue here. In my decades of dealings with Chinese companies, there have been very few times where trades have gone awry. Chinese companies know that the market is so competitive that there are other players that are ready to step in if they fail to deliver.
Not only are Chinese futures exchanges in Shanghai and Guangzhou capable of non-dollar settlement, but the ICE Murban Futures in Abu Dhabi also offer this option. One of the major differences from the West is that sellers must possess the goods in the warehouse before they can engage in trading. This policy helps prevent price distortion caused by high-frequency trading from financial institutions, which even pushed the prices of WTI and Brent Crude into negative during the COVID pandemic. When the exchange is situated in the largest commodities-consuming country, the pricing benchmarks are closer to reality.
There is a need to derisk from the U,S.$. Every country needs to do this if they want to save themselves in the long term. Apply for BRICS membership.
it''s been long overdue.
The USA has overplayed its hand. US based equities and RE are highly overvalued. Those without gold and BTC will see much of their wealth disappear as the trade war intensifies.
They are also very risky because they can freeze and confiscate them.
@@sinic1978 With e-commerce/porous border control I don't see them enforcing a successful ban on physical goods such as gold, collectors' items and so on.. Crypto, and paper will all be easy though.
@@pr0newbiecheck history... In 1970s, Richard Nixon dropped the gold standard and started confiscating everyone's gold. You must turn it in or go to jail. Same in Germany after ww2
@@pr0newbie that depends on the risk one is willing to take...Especially since you can only do it once.
You loons endlessly cry. Yet America continues getting richer and richer and stronger and stronger.
Faster, pls. I'm in a small third world country. I cannot afford d usd. Its killing me.
Just stop using all western apps because it helps them to make money
The best option is to use alternative apps from China or Russia 😂
Same here
💯 absolutely.
Jealous and envious much?
@@theblackdog2399 These is what's wrong with your ilk, you take advantage and is even arrogant and proud about it. And still you wonder why they are dedollarizing?
USA needs less brute trickery, less weaponary and more humble hardwork in win-win deals.
Asking the Mafia to do honest business😂😂😂😂
Well said
You are a pleasure to watch and your content is consistently worth listening to so thankyou very much.
Well didn’t the US wanted to decouple from China? US economic sanction also means not facilitating the transaction. This is essentially achieving the same - US-China decoupling, not transacting. Be careful what you ask for America.
Slowly then Suddenly
war takes many forms. this is part of the war.
Gradually at first, then all at once.
Lithium and all commodities should be traded in China where they are consumed.
It's not unreasonable to have a market where the goods are produced. That's how Chicago got started, for grain and meat produced in the midwest.
It is common sense, isn't it? When Country A trades with Country B why should they use the currency of Country C and gives Country C a cut of the proceed?
the week before, I remembered there were about 12k suscriber, it's gaining traction. great work.
The country that can build high quality emergency hospitals in ten days can certainly produce a robust warehouse network. That is not even a consideration.
right move
You are a man with standards, thank you for your service, great work
a barrel of crude oil's price is not based on the cost it pump out of the ground. it is determined by oil traders in Commodity Exchange (COMEX) in Chicago and other exchange elsewhere. it is the same for other commodities.
Russia, China, and the Global South is determined to change that.
Note that many large buyers have term contracts that bypass the spot market for a certain volume at a fixed price, gaining price stability for guaranteed revenue and profit. China has long term energy contracts with Russia which guaranteed revenue and profit that pay for pipelines like Power of Siberia. Or China can lend the upfront capital to build the oilwell in exchange for a guaranteed minimum production level to be delivered in lieu of cash payment on a loan. And I'm sure there are many more things like this which support ports, mines, farms, refineries, and so forth. In this way, China can develop the Global South to secure resources.
world can produce goods and services more effectively and efficiently without U$D...
de-dollarization is a must to achieve that.
Same thing will happed to Gold Exchange
Expect to see the same in iron and gold!
a barrel of crude oil's price is not based on the cost it pump out of the ground. it is determined by oil traders in Commodity Exchange (COMEX) in Chicago and other exchange elsewhere. it is the same for other commodities.
Russia, China, and the Global South is determined to change that.
@@willengel-vs8ht Indeed, although China also has longer term contracts that bypass the spot market for a certain volume at a fixed price, gaining price stability for guaranteed revenue and profit.
Both Blinken and Yellen're promoting de-dollarizton worldwide. China's helping.
West lost their credit and can’t be trusted anymore
It took them a few hundreds years to build up the credit, and Genocide Joe managed to squeeze it one year, amazing.
5:03 "...If you want us to buy your Lithium, you are gonna sell it in Guangzhou. . . and not in SIngapore"
Singapore has to find other alternatives in every sector soon or else...bye bye.
It's a small price to pay for the privilege to suck up to the hegemon.
Singapore is going to be in a tough spot as more financial services move to HK and China. I expect the Bund in Shanghai to be the next Wall St in a few decades.
This is such important information not available on other channels. Thank you.
Ahh No, Von dof Lying just said she will save Europe 😂
how
...doof 🇩🇪 😃☝️
I read it von adolf lying😅
She can't save herself. How to save EU???
It's ok for her to joke once in a while.
China should do it fast. As countries using the dollar keeps getting poorer and poorer.
One by one the minerals and commodities required by China will be traded in the designated Guanzhou Exchange.
The next will be Copper, another heavily traded and used industrial metal.
Thanks Kevin
Hope China does the same to previous metal exchanges especially gold and silver
Last struggle of the empire
The dying empire can only send it's trolls to troll on this and other channels.
Kevin do you have any info on the M-bridge payment systems?
This plus I want to learn about cybersecurity in China
Greetings, interesting information, thank you.
Physical exchange will eliminate manipulation by naked short . All cash settlement must be banned or any sellers who fail to deliver must pay 10x the 'buying cost' to buyers.
Lithium contracts could become the new commodity backed form of currency. Not just for Lithium, but used as a form of highly liquid currency to settle all kinds of business transactions. For example instead of gold held in a sealed 3rd party escrow account as a means to force the agreed business transaction or else be compensated, use lithium contracts backed by lithium held in Hong Kong warehouses. The seller would pledge his lithium contract as escrow, thereby guaranteeing the buyer breach of contract compensation that the seller has no ability to block.
The problem is that the currency becomes worthless when the mine runs out, as it eventually must. OTOH, China's Yuan is effectively backed by China's industrial sector. That is, one can always convert Yuan holdings into shiploads / trainloads of consumer goods. Similarly, the Russian Ruble or always convert to oil or gas. The US dollar lacks similar convertibility, by design.
@@ZweiZwolfactually if mines stop producing lithium then warehouse of Lithium will become more valuable, not worthless. Also I expect the Hong Kong exchange to eventually include other commodities including cobalt, refined rare earth, corn, soybeans and more. Businesses may prefer using a “currency” in the form of a contract for delivery of a commodity like gold instead of RMB which may be devalued for national economic interests or for RMB which is difficult to move out of China. Someday, anyone wanting to buy refined rare earth from China may be required to establish an account with the Hong Kong commodity exchange. This is a stepping stone towards making the HK commodity exchange market the dominant way of doing business. I won’t be surprised if someday it is set up with electronic currency units equal to fractions of a kilogram of rare earth. Weibo transactions accepted around the world which are actually ownership of specific serial numbered bars of gold stored in Hong Kong Exchange market warehouses. Ancient Sumerian used ingots of tin stored in warehouses as escrow for trade deals (backed by the King) before invention of currency. The Hong Kong commodities exchange market could become a de facto substitute for the Federal Reserve & U.S. treasury dollars. In general, if given a choice, people would trust ownership of actual specific gold sitting in a warehouse more than the Federal Reserve “Promissory Note”.
Poor countries who r resource rich in lithium & all else - we just overthrew the govt in Peru after the democratically elected ppl focused President stated he would renegotiate better deals w the mines & LNG - our ambassador to Peru is a CIA operative w a long history of coups/regime change operations cuz of course she was immediately negotiating terms that serve our interests (not us the taxpayers who fund these crimes but the cartels & oligarchs)
Yeah.but once people see this. She is done.
Bingo !
This channel is the greatest breath of fresh air, of real facts in 40 years, actually since Walter Cronkite died, when ever that was.!!!!
Brilliant
One step at the time ⌚ woooow ❤😂🎉😅😊
ABC coming up next is so wonderful to see. Please don't stop the "coming up next". 🎉🎉🎉
US does not want to decouple from China. They merely do not want to compete HEAD to HEAD. They want it to go back to the previous relationship where China does the low margin OEM manufacturing and services, and the big Western corporates retain their big consumer profit margin. China is not meant to go direct to consumer.
This is Gamestop all over again.
Elaborate.
People know when they hear truth, this is truth.!!!
why does warehousing have to be outside China--could anyone clarify the point?
Ok, how do I invest in this? Any ISIN refrerences?
Os BRICS estão trabalhado, desenvolvendo uma cesta de moedas ou um sistema digital para transacões financeiras sem o uso do dolar.
you have petrol dollar, now you have lithium RMB.
lithium currently important, but i think not for long. much cheaper, much safer, less destructive alternatives are on the market.
but prc will also have an exchange where these alternatives trade, ready as they are desired.
prc can take long views.
Failure to deliver should cause the closing of trading account, blacklisted and heavily penalised. Forced cash settlement is not the solution for failure to deliver. There must be a mechanism to ensure full delivery or else the exchange becomes a pretentious manipulated market under a master digital control. This can be rarely seen but can occur with big boys fighting each other.
In the background I can hear reading of scriptures.
China should try to move all business from LME to Hong Kong or Shanghai. UK is not a place for China.
Owning the London Metals Exchange... woah. De-dollarizing, China still owns some $800 billion in Treasury Bonds, which is down from $1.2 or $1.1 trillion dollars. It'll be something else when China owns absolutley no American Treasuries.
Until Beijing tells the Hong Kong government to drop the US/HK peg one must assume that the CCP is wisely not putting all their eggs in one basket.
Jamie Dimon, the CEO of J.P. Morgan Chase bank, (whom Trump asked to be Treasury Secretary in 2017 but declined) recently expressed his belief that US politicians should engage with the people affected by their policies, rather than making decisions unilaterally. He pointed to the US Inflation Reduction Act, which was implemented without consulting European politicians and major ally companies, causing an uproar. Dimon also highlighted the US's refusal to join the TPTT pact, viewing it as a US failure to stay engaged in Pacific affairs. Productivity is best when everyone is consulted and collaborating on issues, including both friends and foes. He sees China as a formidable competitor, not an enemy, and argues that the US should take responsibility for misallocating resources and failing to invest adequately in itself. Despite the forging of China and Russia, Dimon still believes that the US and its allies have the upper hand. In short, he supports an open dialogue, similar to French President Macron's approach with China, as he believes it produces the best outcomes for all involved.
Cannot agree that the 'US & its allies have the upper hand'. That ship has sailed with BRICs coming online at speed!!
❤❤😳😨❗️
How come i keep hearing some Biblical verse at the end every time
Is this guy a preacher or a pastor?
He is a business preacher. The Almighty Businessman. Pray to Him for business prosperity 🎉🎉🎉
"Delivery failure" Ha Ha! US has been failing to deliver constantly, with no consequences -- Afghanistan, Palestine, Ukraine, S. China Sea, ..., anywhere else?
ending of us$ extortion is coming soon.
✌️✌️✌️😃😃😃👍👍👍
Hello KEVIN, Thanks SO Much for all your video contents.
They are very 3*I = ( Intriguing + Interesting + Informative ).
2) I wonder if U are aware that the End of most your videos,
there are funny noises on your OuTRO video.
Is that your trademark ??