/biz/ - Business & Finance

[Anonymous No.18689085]

what is this petrodollar shit?

asking for a friend

[Anonymous No.18689121]

oil transactions are settled in usd
so every country that produces oil has a stack of usd to buy stuff with, and every country that consumes oil has a stack of usd to buy oil with
usd has a higher value from it, guys like saddam and gaddafi who tried to sell oil in other ways didn't have happy endings

[Anonymous No.18689124]

>>18689085
https://twitter.com/RaoulGMI/status/1254110879479746562

[Anonymous No.18689131]

>>18689085
Chainlink will consume it

[Anonymous No.18689541]

>>18689085
>>18689121 answered it pretty clearly, but you should consider that we're actually moving away from it as the primary reason for the USD to be the world's go-to reserve currency. The big reason is that the US is the big dick on campus militarily, and that we have such an oversized navy we ensure the security of all international shipping. Basically, if you don't want the US to throw you against the lockers and run your pockets, you'll do business in USD and you'll like it.

[Anonymous No.18690399]

>>18689541
wouldn't a purely military backed currency require sporadic displays of brutality to be effective?

[Anonymous No.18690456]

>>18690399
Depends. We can either peacefully be allowed to peacefully and quietly make our exit....or we can crash this whole things to prove a point.

[Anonymous No.18690474]

literature/blogposts/sources recommendations on the thing plox

[Anonymous No.18690475]

>>18689085
it’s a /polish dollar

[Anonymous No.18690521]

>>18690399
Don’t we already do that?

[Anonymous No.18690553]

>>18689085
reason why murika can keep brrrrrrring its way out

[Anonymous No.18690726]

>>18689121
Lot of countries are working on changing this at the moment. Europe and Asia eg will introduce some kind of currency basket index as replacement. The deal was always security for dollar adoption. This doesnt work anymore since the US public voted a man with the mind of a 5 year old to became president

[Anonymous No.18690803]

>>18690726
>This doesnt work anymore since the US public voted a man with the mind of a 5 year old to became president
>actually believing this

[Anonymous No.18690864]

>>18690803
Well it became quite obvious the longer he did his job and outside of US this is seen more and more as the consensus politicians need to deal with. However sorry to have offended your feelings.

[Anonymous No.18690877]

>>18690399
ask gaddafi

[Anonymous No.18690915]

>>18689085
It is a United States Monopoly enforced by our military.

Basically OPEC works like this.

Saudi Arabia agrees to only sell Oil to other countries if they first convert into dollars and then buy the oil in dollars. All oil is basically forced to be paid for in Dollars.

This causes Arbitrage to increase the value of Dollars while devaluing the value of other countries currencies. it is one of the mechanisms that allow you to flip burgers and pay for Iphones. Without OPEC the dollar would have very little trade value due to the Fact that we export far less then we import. A low Oil price is a death sentence for the USA because we live off extracting wealth from more efficient countries through our cartels. Low oil price means less demand for dollars ergo the fed cannot just print as much as they want and expect the value to keep going up against other countries. If the dollar loses to much value Corporations will switch to a trade based currency backed by actual goods and services. This will destroy the governments power to print money to fund itself and it will collapse.

TLDR: Oil price go down = Dollar worthless

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