The Petrodollar and it's Potential Collapse

Say goodbye to the purchasing power of the USD. I don't think many people understand the implications of this. Why do you think we are in a perpetual war over there in the sandbox?
uscurrency.gov/life-cycle/data/circulation

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>lots of oil producing countries agreed
ALL
> get the significance of that.
creates artificial support for USD exchange rates
creates artificial demand for US bonds
allows US to influence world energy costs and select winners and losers
>If these countries stop using USD
these are uncharted waters but:
fall in exchange rate. price of imported goods skyrockets. Elites have outsourced everything from china crap, oil, and even orange juice. US normie living standard collapses
US bond market collapse cutting off future borrowing
US is already in historic debt levels. will not be able to pay interest
US defaults.
US gibs system collapses
Economy implodes

FUN_TIMES

Are you ready? Here we go...
>Germany wants to buy oil
>Saudi wants to sell oil
>Germany must buy dollars
>Saudi only accept dollars
I am the Fed. I have dollars
>Can I buy some dollars please
Yes, that'll be €1.50 per dollar
Now imagine if nobody was forced to buy trillions of dollars. What do you think would happen to that currency?
This is what Gaddafi was setting up with the Euro for Europe and and currencies with Africa buying oil from Libya. It's so serious they murdered a head of state to prevent it. America is bust in the morning with petrodollar.

this was a good read, thank you

Checked and witnessed.
If you can understand the petrol dollar, you can understand much of what has been happening on the world stage for the last 60 years.
seekingalpha.com/article/4408001-petrodollar-and-opecs-reassertion-over-oil-markets

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if the chinese and russian financed environmentalists movements throughout the west didn't convince people shale is bad you'd be peachy, at this rate you'll have to face a second cold war with China.

so, on a personal note, i have ~100k that i have painstakingly saved in hopes of buying a house
it's sitting in my savings account
how imminent is this collapse? do i cash out immediately and buy gold? or at least hedge strongly with it, like buy 30k in gold, or something?
fuck man, this shit sucks
i wish i at least had a house for the collapse

Don't buy anything, you are going to be left holding the bag
Leave the country, find somewhere that isn't in the US or EU and GTFO.

Are you trying to buy a house outright? Why not buy some land. Land is a better investment than gold. You could get a cheap RV and a few acres for that money right now. What's stopping you?

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I would buy anything physical. Literally anything you can actually touch with your own hands. Don't buy gold bonds or anything where you get a piece of paper. You buy gold, you want it in your hand.
If you think the petrodollar is scary read up on how the Fed has sold all of it's gold multiple times over and issued a bit of paper.
Buy a house. Buy gold. Buy silver. Fuck it! Buy a load of lumber. Anything physical.

All these.

Very simply; the US basically forced everyone back around the oil crisis in the 70s or whenever to use the dollar when trading oil. Millions of barrels of oil are traded the world over every day. And they’re all using the dollar to buy and sell. So if everyone’s using your currency to buy and sell probably the most essential commodity, how will that impact your currency? That’s right; it will stabilise its purchasing power in both your local and international markets. Maybe it’ll get dented by high inflation back home? No problem because Germany, say, just bought 50 million barrels at a fixed $ price - so your little domestic dent gets ironed straight out and your dollar is still worth buying in international markets. Not just oil but all kinds of commodities.

Now imagine if nobody trades on your dollar. They don’t use it to buy oil, or wheat, or gold, or anything else. Let’s say they move to the Yuan, or (as Russia and China are now proposing) a brand new monetary system and currency to trade oil, etc. in the developing world (and remember: this is a world that doesn’t give a fuck about “green new deals”, or “alternative fuels”, or “environmentally friendly solutions”). Now what do you think will happen to your dollar if the next time you get a hit domestically - but nobody is buying or trading it internationally? That’s right. Now you just have a basically useless domestic currency that isn’t being propped up by outside demand. So: run on the dollar, dumping reserves, which crashes your economy, and oh whoops everyone’s jumping out windows on Wall Street again.

Pic related: Russia and China have, indeed, this last weekend formally agreed to work on a new international currency and monetary system for international trade.

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money supply × velocity of money = price level × real GDP

Hyperinflation

If you increase money and leave velocity alone you get Inflation, if you increase the money and reduce velocity....welcome to the third world the democrats imported against your will...

this
and this. checked/witnessed

Dollar and USA collapse coming at WARP SPEED all because Biden couldn't let their dirty laundry out of Ukraine but it'll still come out.

We're going to metal backed monetary system by EOY at the latest.

if no one needs the dollar to buy things like oil and oil relate products they will mass dump

this is basicallly a nightmare scenario for us because the dollar will then correct to its true value, which is not much

due to how global the world is most big corps will just bounce from this shithole now that it no longer runs the economy of the world to wherever else

NOTHING EVER HAPPENS IT WILL NEBER HAPPLEBIN

i must live here because my friends and family are here, it is not an option to run
i am 30 and i need a home, a place to settle, to defend. to grow food, to grow a family.
i have been desperately looking for a place to buy in my area for many months now, but it has been winter, and there has been little available. only last week did some start popping up.
the timing is just awful. i either hold my USD in hopes of buying a house, or i convert it to tangibles (e.g., gold) and then don't have the USD to buy the house
i don't have enough to buy anything outright, and i would need a place with internet in order to work my job (i must assume that i will continue that sort of employment, at least for some time)
i just feel trapped
i wish i could just buy my house yesterday

But properly. A house is good. Developmental land is even better. But cheap land at the peripheries of growing suburbs.

Biolabs in Ukraine breaches biological weapon convention, punishment is life in prison for all who signed off on its conception...expect absolutely no one to be arrested

>If these countries stop using USD for these purposes, what's the great harm?
They have been giving us real goods for printed dollars for decades, and have stockpiled huge amounts of dollars so they can buy oil. When the petrodollar is over, they are incentivized to get rid of those dollars, meaning they dump them for anything of value that they can take out of the US.

IE the petrodollar is designed in such a way that it can only end with hyperinflation.

Exactly. The dollar will crash and wipe out.

damn, this shit is scary
fuck
is there any way this DOESNT happen?

Countries arent going to drop a stable currency for Xi's constantly manipulated funny money. The USD didnt become the petroleum currency because we "said so". It became the oil currency because it is one of the most stable currencies on the planet.

Its bad. People are gloating here at the dollars collapse and sure maybe long term that will help the world but us the average people will be fcuked so hard. I'm trying to diversify but its just so much stress

its inevitable unfortunately, the tremors already begin with the current inflation, its just a small taste

No
Lol, lmao

If you are truly concerned, land would be your best option. Even if you buy an acre in the middle of nowhere Kentucky, at least you own it and it's yours. You can escape there and learn about raising chickens and chopping wood if shit goes downhill. If nothing happens, you have a piece of property to sell.

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Keep smoking chinese weed, user. I am positive your geopolitical delusions will work out.

>I get that lots of oil producing countries agreed to buy/sell their oil using USD,
It's not just oil, it's commodities and metals that are traded in dollars.
The wold will need less dollars, if the world is forced to buy in rubles, rupies or yuan from BRICS. This surplus of dollars ends up as inflation, and the question is if this inflation will be big enough to get everybody to dump dollars for the less inflating BRICS currencies.

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>What am I missing?
Supply and demand applies to money just as much as it does any other commodity.
Oil being settled in dollars means there is always a large demand for dollars.
This also means that whoever controls the printing press for dollars can simply print some and buy shit internationally because other countries need them.
It means that America's inflation gets exported to the world. America can print a shit load of money and build the biggest military on the planet.
For free.
All the inflation that would have been created gets exported to dollar using / holding countries.
The end of the Petrodollar means permanently high inflation and high interest rates, recessions and government cuts. Lots of cuts. Maybe even defaults on bonds like Brazil or Argentina.

1. After the world wars, USA was in the best shape. She hadn't been bombed and had the biggest industrial base in the world. American made and did things.
2. Countries began doing a lot of trade with the most competitive country with the most manufacturing, energy, and agricultural output.
3. This led to the dollar becoming desired by all of America's trade partners, so it became the reserve currency of the world, which nations stockpiled for trading purposes.
4. America now has a dilemma. They can literally print money and get real goods and labor for it, because the rest of the world demands dollars. However, this will necessitate a trade deficit.
4. Other countries get wise to the fact that the USA is printing more dollars than it has gold. Free money lets you buy something for nothing, so the motive is obvious.
5. Every country starts redeeming its dollars for gold. In this way, the over-issued currency will cause gold to leave the country. To prevent this, President Nixon removes the convertibility of gold and dollars. Dollars now have no difference to communist monopoly money, because no past labor is required before issuing more of the currency. The banker taps a few buttons and debits your account for the loan, and then you spend years working to 'pay back' the Chuck E. Cheese tokens.
6. To distract from all this, a big oil shortage is concocted. Nobody talks about gold on the television, because they are rationing gasoline. Nixon is able to present the solution: the USA and her military will protect the interests of oil-exporting countries, as long as they conduct their business in dollars. This keeps a constant demand for dollars in the world, and the US can just print whenever she needs more money. People demand dollars to buy oil, and countries that want to sell oil for gold or euros find themselves killed.
7. Finally, the petrodollar starts dying. The US military isn't as feared as it once was and America is exhausted. Too many dollars.

Buy gold, wait for the economy to really fucking crash and land/housing along with it then buy a property on the cheap.

All you need to do right now is try and protect the value of your "savings".

Nigga petrodollar became a thing BECAUSE Dollar collapsed in the Breton Woods system

Seriously man I hate the us government but it’s actions and the moves made by its many enemies are just going to cause extra pain for the plebs out here

>The USD didnt become the petroleum currency because we "said so
What was Bretton-Woods

I'm afraid not. It's going to happen sooner rather than later. In an odd way I feel Bitcoin has sped up the process. Whoa there! No, I'm not talking about buying daddy musk shitcoins. I'm thinking more the technology has made it feasible to create a system of trade that cuts out any of the worlds currencies so maximizing profits for the producer and cutting fees for the buyer. And no, they won't use a shitcoin. They'll create their own mere mortals like us will never have access to.

>US defaults.
US creates a new currency, and life moves on with a poorer society.

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this is honestly what i'm starting to think is the right move
the whole issue is time
fuck, this sucks
i wish i had been born like, 6 months earlier