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Halls of Shrewd'm / US Policy❤
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Author: Dope1   😊 😞
Number: of 48493 
Subject: The petrodollar is no more
Date: 06/13/2024 5:58 PM
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No. of Recommendations: 4
The 50 year old agreement between the US and Saudi Arabia, which stipulated that SA sets the price of its oil in US dollars, is no more:

https://www.nasdaq.com/articles/us-saudi-petrodoll...

The 50-year-old petrodollar agreement between the U.S. and Saudi Arabia was just allowed to expire. The term “petrodollar” refers to the U.S. dollar’s role as the currency used for crude oil transactions on the world market. This arrangement has its roots in the 1970s when the United States and Saudi Arabia struck a deal shortly after the U.S. went off the gold standard that would go on to have far-reaching consequences for the global economy.

What were those consequences?

*The US dollar became the world's reserve currency
*US bonds became very attractive

...and many more. One of the fringe bennies was us having the ability to deficit spend without any consequences and US inflation could be exported.

Buckle up.
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Author: onepoorguy 🐝  😊 😞
Number: of 48493 
Subject: Re: The petrodollar is no more
Date: 06/13/2024 6:27 PM
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The dollar becoming the world's reserve currency dates back to WWII. Our economy was the only one that wasn't smashed by the war. So when people started to pick up the pieces, the dollar was the most stable (and best) currency available at that time. Plus the Marshall Plan infusing lots of dollars to rebuild nations. We were also the first (and only, at that time) "superpower". Etc.

The dollar was the natural choice in the 40s and 50s. And it's continued to this day, probably in part because we still have a huge economy, and also for legacy reasons after almost 80 years.
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Author: Dope1   😊 😞
Number: of 48493 
Subject: Re: The petrodollar is no more
Date: 06/13/2024 6:34 PM
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There will be a new deal, where the Saudis will likely make a deal with the Chinese and the Russians to either use the RMB or a basket of currencies, none of them being the dollar.
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Author: EchotaSheeple   😊 😞
Number: of 48493 
Subject: Re: The petrodollar is no more
Date: 06/13/2024 8:11 PM
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Liberals have long hated American Superiority.

They are 1/6 times 10
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Author: onepoorguy 🐝  😊 😞
Number: of 48493 
Subject: Re: The petrodollar is no more
Date: 06/13/2024 9:00 PM
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Maybe. I'm not an expert, but that would seem to be a bad idea. The Yuan and Ruble are not really solid currencies from flakey governments. I would think if they wanted to abandon the dollar, they would go with Euros. Again, I don't worry about this sort of thing, so I am no expert.
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