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crystal_revenge 2 hours ago

That all relies on the assumption of petro-dollar, something that could have been taken for granted during the last 50 years but could easily change within weeks now.

kortilla an hour ago | parent [-]

No it doesn’t, the petro-dollar isn’t a real thing. Forcing USD denomination for a transaction doesn’t help USD because there is a buyer of USD and an equally sized seller of USD.

temp8830 36 minutes ago | parent | next [-]

However, there does seem to be an outsized effort applied to defending this not-real thing. A leader who defies the petrodollar has a good chance of getting killed or kidnapped. In a way, the same principle makes any god real: he doesn't have to exist, as long as people who will beat up non-believers do.

pocksuppet 14 minutes ago | parent | prev [-]

Total USD reserve involved in that transaction is not zero. They have to already hold dollars to do the transaction at all, which means a benefit has already been provided to the US. The transaction doesn't change the US's position, but enabling the transaction to occur does.

JumpCrisscross 3 minutes ago | parent [-]

Petrodollar hypothesis is debunked. The total volume of petrodollar trade approximates minutes in stock markets. This simply isn’t a real factor anymore; a lot of people think it is because there are writings from the 70s that are compelling.

pocksuppet 2 minutes ago | parent [-]

As you said, trade volume doesn't drive valuation, it's reserve size.