There is no such entity as the "petrodollar." It's a mythological beast, a myth. And nothing is forcing the US dollar to be the reserve currency of the world. Or as Forbes succinctly explains:
"Those who believe that oil being traded in U.S. dollars gives the U.S. economy a unique advantage in the global economy have it exactly the wrong…
There is no such entity as the "petrodollar." It's a mythological beast, a myth. And nothing is forcing the US dollar to be the reserve currency of the world. Or as Forbes succinctly explains:
"Those who believe that oil being traded in U.S. dollars gives the U.S. economy a unique advantage in the global economy have it exactly the wrong way around. The U.S. economy is the central economy in the global system because it is the most open, innovative, and productive economy in the world, and because of this, the U.S. dollar is the most convenient, liquid and reliable medium of exchange."
Like everything else on planet earth, however, the dollar's status as the world's reserve currency almost certainly has a historical expiration date. But I wouldn't start hoarding rubles and yuan just yet.
The petrodollar is just another way to drive demand for dollars. A US taxpayer has to have dollars to pay taxes, so that creates demand for dollars. An oil importer had to have dollars to buy oil, so that creates demand for dollars.
"Anyone can make their own currency. The trick is to get anyone else to accept it."
Yeah it's not like everybody independently came to the conclusion that USD was the way to go.
Now everybody who's stuck holding dollars to buy stuff they need got fleeced when the government printed the value of those dollars away. You'll note that doesn't only apply to foreign governments, but also you and me.
I doubt he's paid, just a typical member of the Ukrainian diaspora, grestgrandpa emigrated to Canada after joining the SS. And not a particularly well-informed one, either.
The US dollar is used because it is the most secure. The minute that it is not used will mean that some other currency has a stronger guarantee to maintain its value. If you dont believe me, trade in your savings for rubles..........Exactly
There is no such entity as the "petrodollar." It's a mythological beast, a myth. And nothing is forcing the US dollar to be the reserve currency of the world. Or as Forbes succinctly explains:
"Those who believe that oil being traded in U.S. dollars gives the U.S. economy a unique advantage in the global economy have it exactly the wrong way around. The U.S. economy is the central economy in the global system because it is the most open, innovative, and productive economy in the world, and because of this, the U.S. dollar is the most convenient, liquid and reliable medium of exchange."
Like everything else on planet earth, however, the dollar's status as the world's reserve currency almost certainly has a historical expiration date. But I wouldn't start hoarding rubles and yuan just yet.
LOL Ok auntie.
Citing Forbes? LOL Avoid the Cool-Aid Auntie. It's been spiked
She must’ve forgotten the new account password.
The petrodollar is just another way to drive demand for dollars. A US taxpayer has to have dollars to pay taxes, so that creates demand for dollars. An oil importer had to have dollars to buy oil, so that creates demand for dollars.
"Anyone can make their own currency. The trick is to get anyone else to accept it."
Yeah it's not like everybody independently came to the conclusion that USD was the way to go.
Now everybody who's stuck holding dollars to buy stuff they need got fleeced when the government printed the value of those dollars away. You'll note that doesn't only apply to foreign governments, but also you and me.
The paid troll you’re responding to is literally repeating talking points that have been promulgated everywhere including fucking Investopedia.
You’re talking to a paid troll who posts under multiple handles.
Still as stupid and the day is long. Good to know.
I doubt he's paid, just a typical member of the Ukrainian diaspora, grestgrandpa emigrated to Canada after joining the SS. And not a particularly well-informed one, either.
Sounds a though you're quite familiar with Ukrainian diaspora in Canada. Enlighten us further.
Whistle past that graveyard
The US dollar is used because it is the most secure. The minute that it is not used will mean that some other currency has a stronger guarantee to maintain its value. If you dont believe me, trade in your savings for rubles..........Exactly