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Originally Posted by VRPdommy
You are absolutely correct on this.
But good luck trying to convince anyone. I have been trying for over 10 years.
But it's funny, every nation that has suggested switching currency for oil trading forcefully, we have been at war with (except china but they have only been suggestive).
Most nations want the 'stability' of the dollar/oil equation.
But you have these issues with 3rd wold oil producing nations that have pillaged the profits. They are looking out for their interest.
And you have this fact that Obama redacted the oil export ban that is starting to have a effect on international markets, putting more pressure on everyone else.
India just started to receive US oil exports in the past week.
(Ha... let me see Trump erase that one.. he is taking credit for better trade defecate and this is where it came from).
The market is going to adjust but it may take a few rocky years baring any more wars.
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Thank you. People also fail to see how the petrodollar allowed Obama and the last Democratic Congress to institute Qualitative Easing to "turn the economy around."
All of that new money that was printed and pumped back into the federal economy made the numbers look good but it really never reached the actual voters - which is why Trump got elected. The "one percenters" were given a nice gift by Obama though. If the dollar wasnt tied to oil, we would be in a situation right now of hyper-inflation and the stock market, bitcoin and real estate would be tanking.
This is why Trump is trying to decertify the Iran deal. Iran is the mortal enemy of the Saudis. We need to stay on the good side of the Saudis and we do not need Iran to become a threat to the flow of oil in the Middle East. Once Saddam and Iraq became one, they were removed. Once Kadahfi indicated he wanted to move off the dollar to gold to buy his oil, he was removed.
I dont see the US coming off the petrodollar anytime soon and I really dont see them relinquishing it to the PetroYuan. All that will lead to is war. And China will never take over the #1 world power spot until that happens. And China at this point cannot take on the US in a war. They might have the largest land forces but they dont have the same air force or navy and could be quickly defeated. They have 1 aircraft carrier while we have 19.
There are approximately 55 years of oil left in the ground so none of this is likely to change in the next 5 decades.