From Joshua Pundit: This Story Could Affect You More Than Anything You’ll Read Today

Hat Tip Joshua Pundit:

The most important and far reaching story out there today is naturally the one you’re not hearing about. And it has the potential to affect you personally a great deal more than 90% of what’s in the headlines.

Russian President Vladimir Putin has scored a major win. He has finally succeeded in making a large deal with China to supply the Chinese with natural gas and oil – in a non-dollar contract.

As part of the agreement, the Bank of China (BOC) just signed a non-dollar agreement with VTB, one of Russia’s largest commercial bank to allow VTB and BOC to pay each in their domestic currency, removing the need for energy trading to be conducted in US dollars and a big step towards undermining the dollar’s status as the world’s reserve currency, something that’s been true since the post WWII Bretton-Woods Agreement.

Putin’s deal with China was held up for a long time simply because of price haggling.Gazprom, Russia.s nationally owned energy company is anticipating that its average export price on gas this year will be around $10.62 per million Btu. The Chinese will be getting it at a substantial discount, around $10 per million Btu. Since the gas China now imports from Myanmar and Central Asia costs the Chinese about $10.15 per million Btu,the deal makes sense for them. In fact, it makes so much sense for them that they’re willing to invest an estimated $25 billion to finance infrastructure costs to take in the estimated 38 billion cubic meters per year the Chinese have contracted to import from Russia, 20% of Russia’s total output.The pipelines involved are scheduled to be completed by 2018.

And they’ll be dealing in rubles and renminbi, not dollars…which makes the deal sanctions-proof, gives Russia a badly needed dose of hard currency, and allows Putin to thumb his nose at any EU threats of finding other sources of energy as a result of the Situation in Ukraine. And it accomplishes something Putin has been working to accomplish for years, bypassing the U.S. dollar as the medium for energy trades.

How does this effect you? Let’s look at what that last sentence really means.
Continue reading here.