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So Saudi’s didn’t renew 50 yr agreement to trade oil in US Dollars - a BIG DEAL?
Posted on 6/13/24 at 7:20 am
Posted on 6/13/24 at 7:20 am
PETRODOLLAR NO MAS
Apparently so according to this article.
Until this morning I had not heard anything about this. Happened 2 days ago.
YAHOO
Apparently so according to this article.
Until this morning I had not heard anything about this. Happened 2 days ago.
YAHOO
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8
Posted on 6/13/24 at 7:22 am to Covingtontiger77
I saw some fringe reporting early yesterday, then it seemed to gain traction throughout the day and there were some threads here last night. If it's really a threat to the dollar, be prepared to see some propaganda about the Saudis funding terror or whatever.
Posted on 6/13/24 at 7:23 am to Covingtontiger77
A very big deal.
Oil being denominated in U.S. dollars alone has significance beyond the categories of oil and finance. By mandating that oil be sold in U.S. dollars (DXY), the agreement elevated the dollar’s status as the world’s reserve currency. This, in turn, has profoundly impacted the U.S. economy. The global demand for dollars to purchase oil has helped to keep the currency strong, making imports relatively cheap for American consumers. Additionally, the influx of foreign capital into U.S. Treasury bonds has supported low interest rates and a robust bond market.
Oil being denominated in U.S. dollars alone has significance beyond the categories of oil and finance. By mandating that oil be sold in U.S. dollars (DXY), the agreement elevated the dollar’s status as the world’s reserve currency. This, in turn, has profoundly impacted the U.S. economy. The global demand for dollars to purchase oil has helped to keep the currency strong, making imports relatively cheap for American consumers. Additionally, the influx of foreign capital into U.S. Treasury bonds has supported low interest rates and a robust bond market.
Posted on 6/13/24 at 7:28 am to Bunk Moreland
quote:
I saw some fringe reporting early yesterday, then it seemed to gain traction throughout the day and there were some threads here last night. If it's really a threat to the dollar, be prepared to see some propaganda about the Saudis funding terror or whatever.
Is Russia going to promise a defense of SA...even when Iran attacks?
Posted on 6/13/24 at 7:29 am to Covingtontiger77
quote:
Apparently so according to this article.
You didn't read the article
Posted on 6/13/24 at 7:30 am to SlowFlowPro
That would be wild as it seems like we have at least had a rock-solid U.S./Israel/Saudi alliance there. I bet the Kingdom has all the oil booby trapped.
Posted on 6/13/24 at 7:36 am to Covingtontiger77
The petro dollar is the thing that allows America to continue printing money we don't have. As that begins to crumble and we see BRICS continue to gain momentum, it will become a big deal. Presently, our interest problem is shared by all who use the dollar, as the dollar use decreases we will see inflation rise. How much and a how quickly??? Idk.
Posted on 6/13/24 at 7:37 am to Bunk Moreland
quote:
That would be wild as it seems like we have at least had a rock-solid U.S./Israel/Saudi alliance there.
BRICS (as is being discussed in one of the other fear porn threads) has, in addition to very shaky economies/currencies, literal enemies
China:India
SA:Iran (proxy of Russia)
SA is trying to diversify its industry/portfolio, so trading with China in yuan is whatever. China is a special case (for now) and we will see how long SA can deal with the manipulation. China has engineered the yuan for Chinese exports and now they're trying to use it as a major currency for imports. This is another what could go wrong? scenario.
Posted on 6/13/24 at 7:50 am to Covingtontiger77
Definitely not a good thing for sure. About the only good thing to come out of this - them whining bitchy Democrat female legislators crying and bitching. And just like that we’re all staking out our location near the trash pickup. You wanted Joe Biden, well now you will realize the full impact of your decision. My poor grandchildren. The greatest country in history destroyed by a pervert crook and his debauched morally bankrupt followers.
This post was edited on 6/13/24 at 8:28 am
Posted on 6/13/24 at 7:56 am to Zarkinletch416
Good for the rest of the world, bad for us. One country should not be dictating policy to the rest of the world. Competition is good.
Posted on 6/13/24 at 7:57 am to Aubie Spr96
quote:
Competition is good.
There is competition
It's just everyone has failed to come close to competing with the US/USD
Posted on 6/13/24 at 8:26 am to SlowFlowPro
quote:
There is competition
Wrong. The United States has run a protection racket for the last 75 years. Anyone that tried to push back got bombed, invaded, or both. That's not a good model.
Posted on 6/13/24 at 8:27 am to Aubie Spr96
quote:
The United States has run a protection racket for the last 75 years.
The USD is favored because we have an economy that nobody else can compete with as well as a military to ensure international trade.
Anyone else could have tried to compete. Europe tried on the economic front, and failed, for example. There was a time when people thought the Euro would replace the USD. There was a competition over a few decades and the USD won, bigly.
quote:
Anyone that tried to push back got bombed, invaded, or both.
When did we invade Western Europe over their insolence in creating the Euro?
This post was edited on 6/13/24 at 8:28 am
Posted on 6/13/24 at 8:39 am to lake chuck fan
The Saudis are not buying anything with yuan. It gets quickly converted to dollars before Xi can direct the BoC to devalue ( manipulate) it. Xi plays to much in the manipulation game and you'll see MbS demand dollars.
The Chinese like to be paid with dollars
The Saudis like to buy with dollars
The Chinese don't necessarily want their yuan back
No one really wants anything to do with rubles
Dollar may fluctuate....2% up or down on a yearly basis sometimes slightly more, but nowhere near the fluctuations seen in the yuan or ruble
Oh look the sky is falling.
Son, that's just some bird shite from the the seagulls
The Chinese like to be paid with dollars
The Saudis like to buy with dollars
The Chinese don't necessarily want their yuan back
No one really wants anything to do with rubles
Dollar may fluctuate....2% up or down on a yearly basis sometimes slightly more, but nowhere near the fluctuations seen in the yuan or ruble
Oh look the sky is falling.
Son, that's just some bird shite from the the seagulls
Posted on 6/13/24 at 8:41 am to SlowFlowPro
We destroyed Germany's cheap source of energy.
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Posted on 6/13/24 at 8:49 am to Bunk Moreland
New pipeline went online bringing in North Sea gas along with the LNG from the States
Posted on 6/13/24 at 8:51 am to SlowFlowPro
quote:
Is Russia going to promise a defense of SA...even when Iran attacks?
It may boil down to BRICS. The Saudis stated earlier this year they were considering joining BRICS. If so, I could at least see Russia and China basically telling either nation (or both) "cut it the frick out or we'll make you cut it out" when they act up (which would more likely be Iran).
The real danger here is if Saudi's move is taken as a signal by the rest of OPEC to drop the petrodollar.
Posted on 6/13/24 at 8:59 am to Covingtontiger77
Yes it is a big deal. A very big deal. The US dollar being the basis of most international trade is a big deal.
When you think about what this says about our standing in the world it’s a huge deal.
When you think about what this says about our standing in the world it’s a huge deal.
Posted on 6/13/24 at 9:27 am to Bard
China does not have the naval assets at this time to guarantee the oil. US does. Russia sure as shite does not.
Posted on 6/13/24 at 9:28 am to Covingtontiger77
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