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Is There an Actual Threat to the Petrodollar System?
https://realmoney.thestreet.com/ ^ | Mar 16, 2022 | By MALEEHA BENGALI

Posted on 03/20/2022 11:35:47 AM PDT by RomanSoldier19

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To: TTFX

So how does that work? All countries hold hands, sing kum bay ya, and then agree that an oz of gold is now worth $10,000,000?


41 posted on 03/20/2022 2:16:14 PM PDT by BiglyCommentary
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To: Rlsau1

“it really only takes a further weakening of America’s military might to spur some large economies to move to a different system.”

Why would that have anything to do with it? IT DOESN’T.


42 posted on 03/20/2022 2:21:09 PM PDT by BiglyCommentary
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To: BiglyCommentary

Oh...go around and re read some of your conversations with people. You always end up like this. I am the only one to push back at you.

Really, you are a bully and not even a very good one. For once in your FR life, stop and think about what someone is telling you.

What you are doing is not working. For you, or anyone else on this forum. Getting into five or six arguments a day is not healthy.


43 posted on 03/20/2022 2:21:22 PM PDT by Vermont Lt
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To: Vermont Lt

Good god get help. Yesterday you kept going into these demented kook rants and I thought you must be drunk. And now you are doing it again. Is it some other drugs?


44 posted on 03/20/2022 2:26:26 PM PDT by BiglyCommentary
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To: BiglyCommentary

Ad hominens. Nice touch.

Go argue with your friends. It would be a soliloquy.


45 posted on 03/20/2022 2:28:45 PM PDT by Vermont Lt
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To: BiglyCommentary

Other than the fact that the US had about 60+% of the world’s gold at the end of WW2, one of the understandings from Breton Woods was in exchange for the dollar being the world’s reserve currency, the US military would act as some sort of protector of international trade. At least, that’s my understanding. Some nations are inclined toward mischief if not for a strong deterrent.


46 posted on 03/20/2022 2:31:18 PM PDT by Rlsau1
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To: Rlsau1

I’ve actually been in the room at the Mount Washington Hotel in Bretton Woods, NH where the accord was signed. There’s a plague on the wall. For serious currency types, that’s like hallowed ground. That US military guarantee was in the context of the world in 1944. Today it is really meaningless.


47 posted on 03/20/2022 2:35:51 PM PDT by BiglyCommentary
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To: Rlsau1

Notice the drive by hit that 41 was in resonse to.

There are about 200 countries in the world. The G20 (top 20) hold the bulk of the gold reserves in the world. So if magically there was some agreement that all countries would back their currencies in gold, 180 of them would be odd men out and their currencies would plummet in value to next to nothing, because they didnt have gold reserves to back them.

Little details like that are never thought out. It all magical fairy dust people reax on some blog.


48 posted on 03/20/2022 3:09:15 PM PDT by BiglyCommentary
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To: algore

Love seeing references to the Portuguese empire. For those years of dominance, Portugal reigned supreme and its ruler was called the “Grocery king” (grocery for “wholesale”).

Too bad for the earthquake...


49 posted on 03/20/2022 3:11:52 PM PDT by nicollo
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To: enumerated

Not sure thar there is enough Yaun out there to be used as a reserve currency. They will have to print more thus reducing its value.


50 posted on 03/20/2022 3:39:48 PM PDT by Captain Compassion (I'm just sayin')
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To: BiglyCommentary

“That’s a joke. There’s not enough gold on planet earth to give any real backing. Dont take my word, do your own homework. Research total gold in existence, do the math to get the current value of that gold. Then it will be obvious that that is a small spit in the ocean compared to the world’s country’s GDP’S, economic and trading activity.”

If the current value of gold is too low for it to be a standard, one solution would be to revalue it.


51 posted on 03/20/2022 4:21:32 PM PDT by Brooklyn Attitude (I went to bed on November 3rd 2020 and woke up in 1984.)
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To: Captain Compassion

The yuan is a reserve cuurency. There are 5: US dollar, Japanese yen, British Pound, Euro, Chinese yuan.

I think you meant “the world’s reserve cuurency”.


52 posted on 03/20/2022 4:34:40 PM PDT by BiglyCommentary
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To: Brooklyn Attitude

Right, see #48 for that fairy dust solution.


53 posted on 03/20/2022 4:35:50 PM PDT by BiglyCommentary
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To: algore
Yes, and it is inevitable.

No, it is not inevitable. What an easy claim to make without any supporting evidence and with no negative consequences to a mere assertion.

The US is still, far and away, the strongest country with the strongest economy on Earth (despite our current situation) and its currency has no match as of yet. Certainly not the Yuan.

54 posted on 03/20/2022 6:22:54 PM PDT by BfloGuy ( Even the opponents of Socialism are dominated by socialist ideas.)
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To: BfloGuy

Yes it is inevitable.

On a long enough timescale every currency backed only by faith in the issuing government fails.

Governments are not forever.

Reserve currencies are not forever.

However clueless people will be around as long as there are people.


55 posted on 03/20/2022 7:06:01 PM PDT by algore
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To: BiglyCommentary

You are showing your simpleton mentality. I cannot believe you said “there is not enough gold”. That literally has noting to do with a gold backed currency...nothing. The concept is that a fixed amount is assigned a value with a currency. You seem to be thinking if Yosemite Sam cannot flip a gold coin to the bartender, “there is not enough gold”.

The existing gold is more than enough.

Don’t be an “embecile”. LOL


56 posted on 03/20/2022 8:44:08 PM PDT by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up..)
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To: DesertRhino

Now who is being a financial retard here. So the amount of gold does not matter. OF COURSE. How idiotic to suggest that.


57 posted on 03/20/2022 11:36:33 PM PDT by BiglyCommentary
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To: DesertRhino

I’m still dying laughing how you think people would be all happy that 1/10 of a percent of gold GUARANTEES the value of each currency unit they would hold. Do you buy a $100 max payout policy for homeowners insurance, or an auto policy of $10 on your car?


58 posted on 03/20/2022 11:51:35 PM PDT by BiglyCommentary
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