Re:China sees new world order with oil benchmark backed by gold
by kartickv on Sunday September 03, 2017 @08:07AM
(#15161019)
I don't understand why US-embargoed countries can't simply get paid in gold. Transporting a billion dollars worth of gold costs nothing compared to transporting a billion dollars worth of oil. And no third country can intervene in transaction between two governments, which is exactly what the two governments should want.
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Re:China sees new world order with oil benchmark backed by gold
by nradov on Sunday September 03, 2017 @10:36AM
(#15161613)
The embargoed countries are mostly poor and don't have much gold reserves. And the US might be able to seize or destroy gold shipments in transit. Moving physical gold is far more risky than a wire transfer.
Re:China sees new world order with oil benchmark backed by gold
by kartickv on Sunday September 03, 2017 @09:48PM
(#15165109)
But China is rich and has tons of gold reserves to pay Iran with.
Moving gold is risky for individuals, but manageable for governments, certainly big powerful ones like China or India. The question is not whether it's more risky than a wire transfer but whether, when a wire transfer isn't possible, gold is workable.
I don't think the US would try to sieze shipments being made by another country, say by shooting down a Chinese or Indian air force plane. That will have major consequences, and be treated an act of war.