Demise of the Petro-dollar?

[Tom Palven]

Max Keiser comments, unfortunately with his wife, Stacy Herbert:
https://www.youtube.com/embed/JC7QEqxZCIs

[Tom Palven]

Originally Posted by Tom Palven

Max Keiser comments, unfortunately without his wife, Stacy Herbert:
https://www.youtube.com/embed/JC7QEqxZCIs

More on this subject from Russia Today:
https://www.rt.com/business/412546-c...andard-dollar/

Whether this pans out remains to be seen.

[Michael]

I've been hearing variations on this story for about 35 years now.

I can't believe people really take this stuff seriously. Sure the US is losing or in fact has already lost its status as the sole currency of international oil purchasing.

So fucking what?

Seriously, the scale and the numbers on a worldwide cale are so massive that such a change really doesn't change much of anything. If anything at all, having international oil purchases transacted in a variety of currencies (USD, Euros or Chinese Yuan) is probably beneficial for the world economy.

There is no impending crash of the US economy due to this slow and ongoing evolutionary change occurring in world oil markets.

[Tom Palven]

Originally Posted by Michael

I've been hearing variations on this story for about 35 years now.

I can't believe people really take this stuff seriously. Sure the US is losing or in fact has already lost its status as the sole currency of international oil purchasing.

So fucking what?

Seriously, the scale and the numbers on a worldwide cale are so massive that such a change really doesn't change much of anything. If anything at all, having international oil purchases transacted in a variety of currencies (USD, Euros or Chinese Yuan) is probably beneficial for the world economy.

There is no impending crash of the US economy due to this slow and ongoing evolutionary change occurring in world oil markets.

This is generally the kind of scenario I've been reading about if the US dollar loses world reserve currency status, although some scenarios are less gloomy:
https://www.quora.com/Will-the-U-S-d...serve-currency

[Michael]

Originally Posted by Tom Palven

This is generally the kind of scenario I've been reading about if the US dollar loses world reserve currency status, although some scenarios are less gloomy:
https://www.quora.com/Will-the-U-S-d...serve-currency

Yes and that's the EXACT same thing they've been saying for 35 years now. They've also been predicting that double-digit inflation will be the result for the same 35 years as well.

US currency has already lost its monopoly on petro-purchases 15-20 years ago. Where is the rising inflation and rampant devaluation of the USD? US Federal Reserve has been running close to 0% prime rate for 16 years now with almost no inflation.

I'll take the actual facts on the ground over pie-in-the-sky speculation every time.

[Tom Palven]

Originally Posted by Michael

Yes and that's the EXACT same thing they've been saying for 35 years now. They've also been predicting that double-digit inflation will be the result for the same 35 years as well.

US currency has already lost its monopoly on petro-purchases 15-20 years ago. Where is the rising inflation and rampant devaluation of the USD? US Federal Reserve has been running close to 0% prime rate for 16 years now with almost no inflation.

I'll take the actual facts on the ground over pie-in-the-sky speculation every time.

You are right. My apologies. I'll try to avoid predictions.

I hate predictions, myself. Predictions are not news. Events that actually happen are news.

[Michael]

Originally Posted by Tom Palven

You are right. My apologies. I'll try to avoid predictions.

I hate predictions, myself. Predictions are not news. Events that actually happen are news.

No need to apologize.

If there was an actual or visible trend of some rising inflation pressure on the USD, then these predictions could be valid, but there is none.

Btw, most predictions are far more indicative of that person WANTS to happen rather than an accurate analysis of what is likely to happen. Lots of people really seem to hate the USA and therefore there is always lots of predictions about the decline/crash of the USA or USD.

[Michael]

I might also add that I think the reason that there is no inflation given 0% prime rate for 16 years running is indicative of a flooded supply of capital.

That is to say, capital is the most bountiful commodity in the world right now. It is cheap, cheap, cheap! Capital is basically cheaper now than it has ever been in the whole history of the world. That really says something given that our eco-political system and laws are predicated on the idea that capital is extremely rare and needs to be protected to help it survive and grow. Present evidence suggests that capital is in a massively flooded supply situation.

And the US government has just signed into law the biggest gift to big capital ever. If the world supply of capital is flooded now, over the next ten years it is going to increase by an order of magnitude in the USA alone. In other words, US tax cuts for corporations and billionaires is probably the stupidest policy that could be enacted right now.

[Tom Palven]

New Russia to China oil pipeline strengthens BRICS ties:
https://www.rt.com/business/414846-r...uble-capacity/

[Tom Palven]

On a potential petro-yuan:
https://www.rt.com/business/422838-p...ollar-gaddafi/