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the petro dollar

Posted: Wed Jan 17, 2018 3:07 am
by bentech
I'm curious

so much is said about it

just what would the effect on the dollar be if the opec countries stopped the trade of their resource in the American denomination?

the petro dollar

Posted: Wed Jan 17, 2018 6:10 am
by Roots
Hyperinflation.

the petro dollar

Posted: Wed Jan 17, 2018 11:35 am
by Butcher Bob
There is a strong incentive not to switch to another denomination.
Both Saddam Hussein and Muammar Gaddafi announced their countries would begin selling oil for other currencies.
Where are they now? :whistle:

the petro dollar

Posted: Wed Jan 17, 2018 4:01 pm
by bentech
isn't Russia about to along side china stating they will only buy in the yen?

the petro dollar

Posted: Thu Jan 18, 2018 12:29 pm
by Butcher Bob
I would have to say no....I don't think either country would benefit from using Japanese currency, let alone if it would even be practically feasible.

the petro dollar

Posted: Thu Jan 18, 2018 7:26 pm
by Jesús Malverde
Trump's Iran sanctions bellicosity will drive the large Iranian export towards yuan-denominated trading. It's already begun. If the PRC wants to become a global reserve currency however, they would have to abandon their export-driven economy and build internal demand for their productive output--any attempt to couple a global reserve currency with a large trade surplus will render the trade in that denominated currency illiquid as there won't be enough in international circulation to do the clearing of trades. One downside of being the global reserve currency-issuing country is that, as a practical matter, you must run a significant trade deficit to keep necessary liquidity of trading. The Germans, who run an export driven economy, are enabled by exporting both debt and manufactured output to countries within the Euro Zone. The Euro Zone is the closest, but there is no country besides the US that ticks all the boxes.

the petro dollar

Posted: Mon Feb 26, 2018 1:22 pm
by bentech
BEIJING — Wall Street is bracing for a potential shake-up as China is set to launch its first-ever crude oil futures contract late March at the Shanghai Futures Exchange.

The move, which had been laid out in 2012 but faced delays over possible market turbulence, could represent a bold step forward in China’s rise as an economic superpower and global hegemon. The contracts will be priced in China’s currency, the renminbi or yuan, marking the birth of what many are calling the “petroyuan.”

Despite pessimism over China’s currency shift in U.S. business publications, the introduction of a petroyuan marks one of the most significant bids to date by countries seeking to dump the U.S. “petrodollar.” The move will also strengthen the ability of China — the world’s top oil importer in the biggest oil-consuming region on the globe — to determine the price of crude oil sold to its neighbors. As a result, China may soon become the strongest player in global crude markets.


https://www.mintpressnews.com/will-petr ... ch/237633/" onclick="window.open(this.href);return false;

the petro dollar

Posted: Tue Feb 27, 2018 11:33 pm
by Lrus007
ya we are in deep. could crash us, if they really tried.
Lrus007

the petro dollar

Posted: Mon Apr 16, 2018 9:29 pm
by bentech
China finally launched last month its yuan-denominated crude oil futures that have been in the works for years, after several delays.

The start of the new contract trading was successful, attracting interest from institutional and retail investors, and major commodity trading houses Glencore and Trafigura.

Yet, it’s too soon to call the less-than-a-month-old contract a total success, because it still faces a long road toward building reputation and history, analysts say. They have also identified the single biggest risk factor for western investors—the extent to which China could meddle with government regulation in the yuan crude futures, as Beijing is known for little tolerance toward wild price swings in its markets and has a history of intervening.




The fact that OPEC dedicated a special article on the Chinese yuan crude futures in its closely watched report shows that the cartel is taking seriously the possibility that at some point in the future, its Middle Eastern members may have to price the oil they sell to China versus a Chinese crude benchmark.


https://www.rt.com/business/424233-petr ... lar-death/" onclick="window.open(this.href);return false;

the petro dollar

Posted: Tue Apr 17, 2018 11:21 am
by Butcher Bob
Any significant foothold into petro-currency by another country could prove to be disastrous to the US. Even the slightest uptick in interest on national debt would put the US in an economic stranglehold that would be very difficult to escape at this point. As soon as the ultra-wealthy decide it's time to hedge their bets, the collapse will likely begin.