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Why The Petro-Dollar Is A Myth, And The Petro-Yuan Mere Fantasy

submitted by mikenigger to whatever 2.2 yearsMar 16, 2022 00:25:16 ago (+5/-6)     (12ft.io)

https://12ft.io/proxy?q=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fdouglasbulloch%2F2018%2F04%2F26%2Fthe-petro-dollar-is-a-myth-the-petro-yuan-mere-fantasy%2F%3Fsh%3D1c35eb896a14

this is for the brainlets

key points:

Those who believe that oil being traded in U.S. dollars gives the U.S. economy a unique advantage in the global economy have it exactly the wrong way around. The U.S. economy is the central economy in the global system because it is the most open, innovative, and productive economy in the world, and because of this, the U.S. dollar is the most convenient, liquid and reliable medium of exchange. One can imagine another currency challenging it at some point in the future, but only on the basis of the openness of its underlying economy, and the depth of the capital markets denominated in it. And if the euro can't do it yet, why does anyone imagine the yuan is up to the job?

Furthermore, the U.S. dollar's position as the global reserve currency has been underwritten by Chinese economic policy. China has deliberately built up a huge pile of U.S. dollar-denominated reserves which, contrary to much press coverage and occasional threats of a big selloff from China, confirms rather than undermines the dollar's status.


8 comments block

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[ - ] noonefromnowhere 0 points 2.2 yearsMar 21, 2022 20:03:35 ago (+0/-0)

"Most open, innovative, and productive economy in the world."

A string of buzzwords that is meaningless. China has all the factories, the US just consumes. It kept the economy afloat by exporting dollars, which have just lost their main reason for being valuable, as Saudi Arabia has agreed to trade oil in yuan. China can now put the final nail in the coffin for the dollar by dumping their reserves.

[ - ] mikenigger [op] 0 points 2.2 yearsMar 21, 2022 21:01:51 ago (+0/-0)

A string of buzzwords that is meaningless.

The US GDP begs to differ.

[ - ] noonefromnowhere 0 points 2.2 yearsMar 21, 2022 21:09:34 ago (+0/-0)

US GDP is based on consumption. All the factories are overseas. The economy has been hollowed out over the past 40 years and now the foundation is crumbling.

[ - ] mikenigger [op] 0 points 2.2 yearsMar 21, 2022 22:06:38 ago (+0/-0)

You're proving my point. If a US company switches factories China won't be producing anything worth shit. The value is produced in the US, not China.

[ - ] noonefromnowhere 0 points 2.2 yearsMar 21, 2022 23:47:17 ago (+0/-0)

It's not the companies that matter, it's the factories. At some point reality has to enter the equation and the reality is china has all the production while the US just has a rapidly depreciating currency, no longer backed by saudi oil.

[ - ] yesiknow 3 points 2.2 yearsMar 16, 2022 02:32:50 ago (+3/-0)

The goal of every globalist and their organizations like the United Nations was always to turn White nations into impoverished communist shitholes of slavery. It was the USSR who was supposed to be the central government of inadequacy until they collapsed from central government. They just anointed China in it's place.

They're incompetent to a shocking degree, but people are passive to an even more shocking degree so it doesn't matter which way the dollar go or if America exists next year. They either revolt, and kill the globalists or they don't. If they don't target the organizations there's no revolt. If they wait too long to save themselves, there's nothing to save.

[ - ] PostWallHelena 1 point 2.2 yearsMar 16, 2022 01:54:22 ago (+1/-0)

I just think this is a naive take.

[ - ] beece 0 points 2.2 yearsMar 16, 2022 07:53:26 ago (+0/-0)*

Forbes is Chinese now, I discount anything they publish, just like the (((NYT))) and (((CNN))). No joke, the comments on this thread will be read, but not the article, unless the comments suggest it is worthwhile. I'm upvoating OP since you cleared the paywall mikenigger. Thanks for that.

Anyone else remember when the chinese were NOT going to weaponize those south seas islands. Then they did. They're lying fucks.