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re: Saudi Arabia's petro-dollar exit: A global finance paradigm shift
Posted on 6/13/24 at 7:39 am to Jack Carter
Posted on 6/13/24 at 7:39 am to Jack Carter
quote:
Nobody said anything about an apocalypse.
The USD not being the petro dollar and the US lashing out like you said will lead to worldwide apocalypse and a devolution similar to Europe when the Western Roman Empire ended.
1
Posted on 6/13/24 at 7:44 am to trinidadtiger
That’s because both of you have virtually no economic or political basic knowledge. If you think other nations ditching the dollar is a good thing then any further discussions are pointless. It doesn’t mean that it will reduce inflation which is what you are trying to justify. Other nations using the dollar helps stabilize its perceived value because when you have no real tangible backing of a paper currency its perceived value is its only value. Meaning, other nations use the dollar therefore they believe it is a stable investment. When that ceases to exist, it’s no different than any other nation in the past that has destroyed its currency by overprinting and collecting massive debts. It doesn’t mean “fewer countries are using it so it’s more rare, therefore more valuable”. That’s a simplistic, nonsensical argument that might be slightly true if we didn’t have trillions of dollars in debt already accrued
Posted on 6/13/24 at 7:47 am to texas tortilla
China, Japan, India... they may want to pay in their money, but when they sell, they want the dollars. So China says to Saudi, we will buy this oil with yuan, Saudi says, .....whatever, I'll take it. Saudi then tries to buy something from China and China says, great ..... can we do that trade in greenback dollars with dead white men on them?
Posted on 6/13/24 at 7:50 am to Timeoday
quote:
This:
Our Military is more worried about LGBTQ+, 'Equity', Diversity and Pronouns than actually destroying someone. Nobody is going to fear that no matter who is in charge. The only thing protecting the dollar is our Military which is becoming more of a joke by the year. This is how Rome collapsed along with Illegal Immigration.
Posted on 6/13/24 at 7:51 am to KiwiHead
China has historically devalued the yuan on purpose to make their exports cheaper to buy. Now China is trying to buy in yuan...
So SA will accept yuan for oil for how long while they watch China devalue the yuan they hold? SA can't really do anything else with it other than hold it, b/c nobody else wants that shitty currency.
Or will China stop devaluing the yuan, making their exports even more disliked in an international economy where China's manufacturing is being replaced, post-Covid? While they're in a major economic down turn? Sounds like a great plan
So SA will accept yuan for oil for how long while they watch China devalue the yuan they hold? SA can't really do anything else with it other than hold it, b/c nobody else wants that shitty currency.
Or will China stop devaluing the yuan, making their exports even more disliked in an international economy where China's manufacturing is being replaced, post-Covid? While they're in a major economic down turn? Sounds like a great plan
Posted on 6/13/24 at 7:51 am to Zarkinletch416
quote:
. To you Biden groupies, the ones who hate the America of my father, the ones who hate Donald Trump almost as much as his MAGA supporters you will finally get what you’ve always wanted - the death of America.
Did those Biden groupies hate America when he printed 8 trillion during his term, which causes inflation?
Did those Trump groupies hate America when he printed 8 trillion during his term, which causes inflation?
This post was edited on 6/13/24 at 7:53 am
Posted on 6/13/24 at 7:57 am to OccamsStubble
quote:
Did those Trump groupies hate America when he printed 8 trillion during his term, which causes inflation?
Being attacked with a bio-weapon that choice was clear. Having an election stolen prevented the response. But it's coming.
Posted on 6/13/24 at 8:01 am to SlowFlowPro
China is bargain hunting with this scheme. Either MbS is inflating the oil price to the Chinese or he figures he can quickly convert to dollars almost as soon as he gets the yuan.. Either way the last thing he wants is to hold the yuan.. he's not interested in seeing his payment value reduced by 20% over night on a whim.
Posted on 6/13/24 at 8:33 am to KiwiHead
I think SA/MBS is just trying to diversify a bit, but they can burn money for short periods of time with no real impact to the bottom line.
This is clearly not a long-term strategy.
This is clearly not a long-term strategy.
Posted on 6/13/24 at 8:45 am to SlowFlowPro
Right. He's figuring he can pull even with some arbitrage on a daily basis given the value at any particular time. But make no mistake, he values dollars and the relationship with the US more than anything to do with China....mostly for reasons you outlined
Posted on 6/13/24 at 8:57 am to Shepherd88
quote:
US is the largest exporter in the world as of 2023 & 2024. Sorry.
Incorrect. You are confusing "producers" with "exporters".
Posted on 6/13/24 at 9:32 am to aTmTexas Dillo
quote:
Eventually the debt bomb will in part be solved through confiscatory taxes on accumulated wealth, IRAs etc. We will be given a government stipend in our retirements. There is a lot of money in those retirement accounts.
They would have to take 100% of it to pay off the debt.
Posted on 6/13/24 at 9:48 am to Night Vision
quote:
A shift away from the US dollar is happening in real time, and investors must be ready
by Malli Karjuna
Mon, Jun 10, 2024
The US dollar’s dominance is in decline as Russia and Saudi Arabia eye the Chinese yuan for oil trades, and investors may need to begin to revise their long-term investment strategies, warns the CEO and founder of one of the world’s largest independent financial advisory and asset management companies, deVere Group.
...
“One of the most significant but under-reported outcomes of April’s three-day summit between Russia’s Vladimir Putin and China’s Xi Jinping was that Putin said Russia is now in favour of using the Chinese yuan for oil settlements," said Green. This suggests that the world’s second-largest economy and the world’s largest energy exporter are actively intending to reduce the dominance of the US dollar as the bedrock of the international financial system.
...
“Oil is one of the most important and widely traded commodities in the world, and it has traditionally been priced and traded in US dollars," said Green. "This has given the US dollar a dominant role in global financial markets as countries that want to purchase oil must first acquire US dollars in order to do so."
If oil trading were to shift away from the US dollar it would dramatically reduce the demand for US dollars, which would lead to a decrease in the value of the US currency.
"This could have a number of ripple effects throughout the global economy, including hugely increased inflation in the US and potentially destabilising effects on financial markets," said Green.
Additionally, a shift away from the US dollar in oil trading could lead to greater economic and geopolitical competition between countries. If the yuan were to become more widely used in oil trading, this could significantly increase the economic power and influence of China, challenging the dominance of the US in major global affairs.
LINK
Posted on 6/13/24 at 10:38 am to Night Vision
I ain’t no economist but I do understand what the term “flight from the dollar” means and the impact on our economy here in America. So can any of your Biden groupies (I know you’re out there) tell me the impact on my grocery bill or the price of fuel for my car? What is the “best guess” scenario on the probable outcome of this “flight from the dollar”? Don’t be shy.
This post was edited on 6/13/24 at 10:43 am
Posted on 6/13/24 at 11:17 am to lake chuck fan
Americans having sufficient resources was referencing its natural resources. You know the topic of discussion
Posted on 6/13/24 at 4:14 pm to SlowFlowPro
quote:
The USD not being the petro dollar and the US lashing out like you said will lead to worldwide apocalypse and a devolution similar to Europe when the Western Roman Empire ended.
You don't have faith in the CIA?
Posted on 6/13/24 at 10:12 pm to Rip Torner
Couldn't say it any better
Posted on 6/13/24 at 10:17 pm to Timeoday
quote:
quote:Did those Trump groupies hate America when he printed 8 trillion during his term, which causes inflation?
Being attacked with a bio-weapon that choice was clear. Having an election stolen prevented the response. But it's coming.
Option: don’t roll over and frick those who elected you.
Other Option: do
Posted on 6/13/24 at 10:29 pm to Bard
quote:
quote:
US is the largest exporter in the world as of 2023 & 2024. Sorry.
Incorrect. You are confusing "producers" with "exporters".
Yeah... we're producing a lot, exporting the excess (though this is a global market so we're really just talking numbers of barrels... ours are probably sold somewhere and replaced with cheaper barrels someone buys from Mexico).
Saudi Arabia is careful about how much oil they let be pumped out of the ground, but they use comparatively little of it, domestically, and export the majority of it.
Posted on 6/14/24 at 7:02 am to Rip Torner
quote:
If you think other nations ditching the dollar is a good thing then any further discussions are pointless. It doesn’t mean that it will reduce inflation which is what you are trying to justify. Other nations using the dollar helps stabilize its perceived value because when you have no real tangible backing of a paper currency its perceived value is its only value.
I agree. It's really simple. The more of a thing exist but isn't being used, the less value that thing retains.
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