I'm done trying to explain global capital markets to the idiots on this board who deny the petrodollar system exists. but for all the financial fags that understand the implications of this……WE ARE SO FUCKED!
are you actually curious to know or are you a fucking retard who believes they understand shit they clearly don't and just attack anyone who presents information contrary to their pre-established beliefs?
another fucking idiot who can't comprehend the scale of this threat.
apologies. I'm just really jaded by the retards on this board. since you are generally curuois let me do my best.
The petro-dollar system in a nut shell:
When Nixon took the US off the gold standard something had to replace it that would retain global demand for the Dollar. The US and Saudi Arabia came to an agreement. The Saudis would gain use of the US military (this is the primary reason we keep fucking around in the middle east) and in exchange, the Saudi's promised to only accept $ for all oil sold by Opec.
what this arrangement does is force all nations around the world to have to obtain $ if they want to buy oil(which they all have to do). This creates a global demand for $ that would otherwise not exist if nations could acquire energy in their own currencies.
Recently, The Saudis have begun talks to sell a stake in their national oil company to Chinese investors. part of the deal would require the Saudis to start accepting Chinese Yuan in additional to $ when selling OPEC oil.
https://oilprice.com/Energy/Energy-General/The-Wider-Ramifications-Of-A-China-Aramco-Deal.html
With an alternative to $/oil now available, global demand for $ will collapse. Without that global demand for $, demand for US debt offerings will also collapse. This will directly impact the United States ability to continue running massive annual deficits and float our ~$29T in short term debt.
Once the US governments ability to leverage international demand for the currency ends, there are only two options for how the national debt can be handled: Default on the debt obligations, or devalue the currency to reduce the real value of the debt.
The decline you are seeing in that DXY chart I posted indicates the government has chosen the second option. They have chosen to destroy the dollar. All american's standard of living is going to decrease drastically as the value of our currency/income/savings/wealth gets destroyed along with the value of the dollar.
TL;DR. This is China's death blow. this is economic warfare. This is how they can destroy america without firing a shot. and they have just started the process. The Saudi's are reading the tea leaves and recognizing China is the rising power, the nation they want to be aligned with in the future. Not the US