Interesting times ahead.

I was wondering what you all see happening from this point and what sort of timeframes you think these things will play out on.

  • Greenleaf [he/him]@hexbear.netEnglish
    25·
    16 days ago

    I thought this was largely fake news that crypto sites were generating. That specifically, the US and KSA are just in the process of hammering out a new agreement. And that even if some oil contracts are in other currencies, they are still indexed to the USD.

  • SexUnderSocialism [she/her]@hexbear.netEnglish
    15·
    16 days ago

    The news about a 50-year old petrodollar agreement expiring that’s been spreading through social media is completely made up. I think it was “BRICS News” on Twitter who first posted it, and that account is known to post fake news and never links to a source.

  • ElGosso [he/him]@hexbear.netEnglish
    12·
    17 days ago

    The petrodollar hasn’t really mattered since the 70s, when the US dollar became the world’s premier banking reserve currency

    • GaveUp [she/her]@hexbear.netEnglish
      21·
      17 days ago

      Well oil trade makes up part of the demand of why USD is the reserve currency no? Ofc it used to be a much larger portion of the total demand

      • Droplet [comrade/them]@hexbear.netEnglish
        18·
        16 days ago

        The petrodollar is a weapon, that’s it.

        The US forced oil producing countries to sell their oil in USD, and when those countries that formed a cartel called OPEC tried to use those dollar earnings to industrialize themselves, the US said, no, you’re not allowed to purchase critical assets within the US shores, you’re only allowed to use them to purchase US weapons and treasury bonds (i.e. you sell oil, we give you junk papers).

        That’s it. It allows the US to control global oil (energy) trade but the oil producing countries get junk papers in return. By stop selling oil in dollars, it simply allows those countries to stop accumulating junk papers. It doesn’t stop the US to continue to control the global oil trade with all the institutions it has already set up all over the world, and especially with the US itself being one of the largest oil producing countries in the world.

        There has been so much myth about the petrodollar but the key point really boils down to: the US prints its own currency, its spending doesn’t need to be financed by the treasury bonds. When the US spends overseas, foreign central banks that earned the dollars cannot buy anything the US doesn’t allow, so they recycled those dollars back to the US as treasury bonds, which allows the US to control the amount of circulating dollars overseas (i.e. allowing it to spend even more money overseas since all the surplus dollars have been absorbed back to the US treasury). This is the secret behind the US getting “free ride” all across the world.

        Crank “anti-globalists” love this petrodollar myth because they think they can somehow de-throne the dollar with cryptocurrencies or the gold, without even understanding how the global financial system works.

  • came_apart_at_Kmart [he/him, comrade/them]@hexbear.netEnglish
    7·
    16 days ago
    • middle east conflict expands and intensifies, news of it narrows under tight restriction by legacy media
    • prices of energy, food and most consumer products steadily climb
    • interest rates are raised to “cool inflation” sparking stagflation, unacknowledged by media & further entrenching institutional distrust
    • class tensions heighten as newsreaders insist “economy is strong” while layoffs, homelessness, and untreated disease all trend upward