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.
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...
Robert Taylor
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.
Brayden Diaz
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
Henry Lee
NOTHING EVER HAPPENS IT WILL NEBER HAPPLEBIN
Josiah Jones
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
Cooper Torres
But properly. A house is good. Developmental land is even better. But cheap land at the peripheries of growing suburbs.
Brayden Cook
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
Adam Reyes
>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.
