Economy U.S.-Saudi Petrodollar Pact Ends after 50 Years

[Rob Battisti]

IMO we're going to move away from having a single reserve currency. Trade & holdings of USD will gradually decline & shift to regional currencies until a new economic superpower or bloc establishes itself. It's already happening in the Middle East where more & more oil is now being sold in Yuan, Rubles, and Rupees among other currencies. Same thing is starting to happen in a few other sectors where settlement is moving away from USD towards other currencies.

Problem is a lot of nations resent the way USD dominance in trade along with bullshit US foreign policies are fucking them over. As the US economic system weakens they're going to start seeking alternatives or creating alternatives of their own. We could see something like each continent or region having their own currency for local trade, then trade between regions being settled with a basket currency of some sort.

Doubt.

There is no benefit to having the yuan, rubles or rupees as reserves. That shit debases insanely fast.

Now Bitcoin on the other hand…

 

[aerius]

Doubt.

There is no benefit to having the yuan, rubles or rupees as reserves. That shit debases insanely fast.

Now Bitcoin on the other hand…

It's funny that you mention that. One of the proposals in the BRICS economic framework is a currency based on a basket of commodities and crypto. You could end up with various regional currencies based on baskets of commodities & crypto which are then used for international trade through a new settling system. There's many ways to skin the cat so to speak when it comes to finding alternatives for the USD.

 

[Rob Battisti]

It's funny that you mention that. One of the proposals in the BRICS economic framework is a currency based on a basket of commodities and crypto. You could end up with various regional currencies based on baskets of commodities & crypto which are then used for international trade through a new settling system. There's many ways to skin the cat so to speak when it comes to finding alternatives for the USD.

Bitcoin will end up in various countries as a reserve currency over the next decade. Nothing else is worth it commodity wise outside of Gold.

 

[Rob Battisti]

Just to further illustrate why this is a non-story. The US dollar constituted about 80% of global reserves in 1980.USD is about 58% now.

The yuan is like 2%.

Nothing burger.

Know why the yuan is 2%? because that shit debases like it’s going out of style.

 

[Blayt7hh]

Ignoring the reasonable response to you above to only post this lets me know that you are completely full of shit.

That dude is just constantly shitposting. Waste of space

 

[ColemanwastheGOAT]

Just to further illustrate why this is a non-story. The US dollar constituted about 80% of global reserves in 1980.USD is about 58% now.

The yuan is like 2%.

Nothing burger.

Know why the yuan is 2%? because that shit debases like it’s going out of style.

A 22% decline in anything is not a 'nothing burger.'

 

[Rob Battisti]

A 22% decline in anything is not a 'nothing burger.'

It is.

 

[ColemanwastheGOAT]

It is.

OK. Cut off 22% of your dick.

 

[fungi]

Care to make any predictions that we can all laugh off when they don't happen?

Just remember this post of yours, when you'll have to "pay thru yo ass for gas".

Soon...

 

[Rob Battisti]

OK. Cut off 22% of your dick.

And be just above average?!

 

[Rob Battisti]

IMO we're going to move away from having a single reserve currency. Trade & holdings of USD will gradually decline & shift to regional currencies until a new economic superpower or bloc establishes itself. It's already happening in the Middle East where more & more oil is now being sold in Yuan, Rubles, and Rupees among other currencies. Same thing is starting to happen in a few other sectors where settlement is moving away from USD towards other currencies.

Problem is a lot of nations resent the way USD dominance in trade along with bullshit US foreign policies are fucking them over. As the US economic system weakens they're going to start seeking alternatives or creating alternatives of their own. We could see something like each continent or region having their own currency for local trade, then trade between regions being settled with a basket currency of some sort.

We’re already not a single reserve currency system.

USD is 58% and EURO is like 20% and then a mixed bag of worthless shitfiats.

 

[Anewt]

Dollar Dominance in the International Reserve System: An Update

The US dollar continues to cede ground to nontraditional currencies in global foreign exchange reserves, but it remains the preeminent reserve currency

www.imf.org

Interesting read

 

[panamaican]

IMO we're going to move away from having a single reserve currency. Trade & holdings of USD will gradually decline & shift to regional currencies until a new economic superpower or bloc establishes itself. It's already happening in the Middle East where more & more oil is now being sold in Yuan, Rubles, and Rupees among other currencies. Same thing is starting to happen in a few other sectors where settlement is moving away from USD towards other currencies.

Problem is a lot of nations resent the way USD dominance in trade along with bullshit US foreign policies are fucking them over. As the US economic system weakens they're going to start seeking alternatives or creating alternatives of their own. We could see something like each continent or region having their own currency for local trade, then trade between regions being settled with a basket currency of some sort.

And this is where foreign policy really matters. When we treat foreign nations like shit or disrespect them, it just makes it easier for them to justify using other currencies. China and Russia are absolutely encouraging this and we shouldn't be making the arguments for them with the positions we take internationally.

 

[panamaican]

A 22% decline in anything is not a 'nothing burger.'

It is if it happens over a 40 year time window.

 

[ColemanwastheGOAT]

It is if it happens over a 40 year time window.

So then you'd agree the average temperature rising by 2 degrees in the last thirty years is no big deal?

 

[Anewt]

It is if it happens over a 40 year time window.

Here’s How Reserve Currencies Have Evolved Over 120 Years

Today, the U.S. dollar makes up 60% of held reserve currency. See how global preferences have shifted since 1900.

www.visualcapitalist.com

This wrong ?, am I looking at the wrong thing ?

 

[jx820]

The story seems to be BS, but even if not, we are the biggest oil producer in the world, and the biggest and most stable economy in the world, with the most stable currency.

So I don't think we need to lose much sleep over what currency the Saudi's sell thier oil in.

 

[GhostZ06]

woops wrong thread lmao

 

[LeonardoBjj]

And this is where foreign policy really matters. When we treat foreign nations like shit or disrespect them, it just makes it easier for them to justify using other currencies. China and Russia are absolutely encouraging this and we shouldn't be making the arguments for them with the positions we take internationally.

- How the USA got on this opoint? I remember another poster saying, the USA foreign policies started to downfall in 2001.

 

[Rob Battisti]

- How the USA got on this opoint? I remember another poster saying, the USA foreign policies started to downfall in 2001.

Interventionism post 9/11 was one of the catalysts. However, I’d bring it farther back to the 90s when corporations started their addiction to cheap Chinese labor.