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The Truth About What Is Happening to the Petrodollar
https://thelibertydaily.com/ ^ | 6/19/2024 | By Michael Snyder

Posted on 06/19/2024 10:59:58 AM PDT by bitt

This month, rumors about the petrodollar have spread like wildfire all over the Internet. Some of what is being said is true, and some of what is being said is false. When other sources were reporting on “the death of the petrodollar”, I was asked why I was not writing about it. Well, the truth is that I was not writing about it because the petrodollar is not dead. It is certainly in trouble, but it is not dead. Today, most oil continues to be sold in U.S. dollars, and most global trade continues to be conducted in U.S. dollars. But that could change as other countries lose faith in our currency. In particular, we will want to carefully watch what the BRICS nations choose to do. 45 percent of the world’s inhabitants live in the BRICS nations, and they have been implementing strategies that are designed to promote their own currencies and reduce dependence on the U.S. dollar. As U.S. relations with leading BRICS nations continue to deteriorate, I would expect that trend to accelerate.

So I am not optimistic about the future of the petrodollar at all.

But what some other sources reported about the petrodollar earlier this month was simply not accurate.

Let me start at the beginning. According to Investopedia, petrodollars are “simply U.S. dollars accepted as payment by an oil exporter”…

Petrodollars are oil export revenues denominated in U.S. dollars. Petrodollars are not a distinct currency; they are simply U.S. dollars accepted as payment by an oil exporter.

Global crude oil exports averaged approximately 88.4 million barrels per day in 2020. That pace would generate annual global petrodollar supply of more than $3.2 trillion a year, assuming an average price of $100 per barrel.

Petrodollars are the primary source of revenue and wealth for many members of the Organization of Petroleum Exporting Countries (OPEC) as well as non-OPEC oil and gas exporters including Russia, Qatar, and Norway.

MORE..


TOPICS: Business/Economy; Editorial; Foreign Affairs; Government
KEYWORDS: brics; commerce; currency; dollar; petrodollar; trade
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To: Freest Republican

Being 200 trillion deep in debt is soundness? Ok... cool.
The way this works is that something better comes AFTER the obvious default and collapse. Over half the world is already working morning noon and night to dump the dollar and our bankers because it’s too dangerous.

It’ll be a a gold backed trade currency composed of BRICS members. Settlements will be made in national currencies within that framework.

There is no advantage to them using dollars anymore. The full faith and credit of the USA means nothing when we are the biggest debtors in all of human history and have collapsed morally as a people. There isn’t a lot of demand for the Denarius these days.


21 posted on 06/19/2024 12:33:19 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI. )
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To: Bob Ireland

I meant to add that this present ‘game’ will continue through the election. If Donald Trump is elected, they will let the system collapse around his ears. ➡ Herbert Hoover 👈


22 posted on 06/19/2024 12:35:10 PM PDT by Bob Ireland (The Democrap Party is the enemy of freedom.They use all the seductions and deceits of the Bolshevics)
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To: Freest Republican

“No plausible alternative even exists despite $200,000,000,000,000 of debt.”

Think of it as a house on a lot. No alternative house is on the near horizon. But when your house is on fire and flames are shooting out of the roof, you start thinking about it.
And when the lot is a smoldering ruin, the alternative quickly gets put together.

The alternative will come to life after the collapse. Probably some kind of basket of commodities, metals, and national currencies of members. If a member currency starts abusing the printing press, they get ejected.

That’s my prediction.


23 posted on 06/19/2024 12:37:10 PM PDT by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI. )
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To: Freest Republican
Regarding Japan, the main reason for their stagnation is due to demographics. And they refused to open their country up to immigration because they wanted to remain Japanese.

So it won't be like that.

24 posted on 06/19/2024 12:47:06 PM PDT by MinorityRepublican
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To: Freest Republican

It means they outproduce the whole of NATO in munitions and shells, by a wide margin.


25 posted on 06/19/2024 1:03:51 PM PDT by Reverend Wright ( Everything touched by progressives, dies !)
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To: MinorityRepublican

Social Security isn’t the problem, it’s Medicare and Medicaid. SS outlays are fractionally over what it takes in, Medicare takes in, IIRC, less than 20% of its outlays.


26 posted on 06/19/2024 1:17:43 PM PDT by Axenolith (Here... Hold my beer and check this out...)
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To: MinorityRepublican

I understand that the reasons are not the same but the outcome is going to be similar.

Inflation, spending freezes and tax hikes=stagnation.


27 posted on 06/19/2024 1:55:29 PM PDT by Freest Republican (There is no tyranny that cannot be justified by imbeciles)
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To: DesertRhino

If it is not sound, tell the bond traders.

Beyond forex, the bond markets are the second sharpest traders on the planet.

Half the world better start working harder, the dollar is up YoY at this very moment.

$200,000,000,000,000 in debt and the best offered is a gold backed currency by the BRICS beyond being an extension of Col Qadaffy’s plan is about as threatening as a swarm of gnats.

The winner of the dog show is still a dog.


28 posted on 06/19/2024 2:04:39 PM PDT by Freest Republican (There is no tyranny that cannot be justified by imbeciles)
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To: bitt

dollar collapsing ping


29 posted on 06/19/2024 2:16:40 PM PDT by SisterK (it's controlled demolition)
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To: DesertRhino

I didn’t see this before the last reply.

I think of it exactly as it happens to be-

50yrs of impending doom since Nixon left the gold standard.

Yet here we are with insane debt and little to no relative change in global status has taken place.

How is it that going to work after the collapse?

If this country collapses the entire world is instantly thrown into the worst economic times imaginable. When the margin calls hit and mass liquidations take place the other dogs in the show are going to look relatively worse than they do now.


30 posted on 06/19/2024 2:20:55 PM PDT by Freest Republican (There is no tyranny that cannot be justified by imbeciles)
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To: Reverend Wright

You can do better than this material.

I’ll even give you something.

They announced that that they are going to steal Russian assets and give the money to Ukraine and despite fake news headlines the ruble rallied.

Why? Because it was already priced in and they’re running out of moves.


31 posted on 06/19/2024 2:24:19 PM PDT by Freest Republican (There is no tyranny that cannot be justified by imbeciles)
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To: DesertRhino

PS I enjoy and appreciate the back and forth.

I can be rude and obnoxious at times.

I’m grateful for the latitude and hope we can all learn some things together.


32 posted on 06/19/2024 2:33:47 PM PDT by Freest Republican (There is no tyranny that cannot be justified by imbeciles)
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To: Freest Republican

“...the ruble rallied.

Why? Because it was already priced in and they’re running out of moves. “


Financial assets, financial market prices... blah, blah, blah,...

I’m interested in physical production in the real economy.


33 posted on 06/19/2024 2:36:16 PM PDT by Reverend Wright ( Everything touched by progressives, dies !)
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To: Axenolith

“Medicare takes in, IIRC, less than 20% of its outlays.”

In 2021, Medicare expenditures were $829 billion. Medicare revenue from the payroll tax and from premiums paid by beneficiaries together comprised about 49% of total Medicare revenue, which was $888 billion. The rest came mainly from general revenues.

https://www.kff.org/medicare/issue-brief/what-to-know-about-medicare-spending-and-financing/


34 posted on 06/19/2024 3:39:22 PM PDT by riverdawg
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To: bitt

We’ll know it’s bad when Exxon starts taking yuan.


35 posted on 06/19/2024 4:50:11 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable animals.)
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To: Freest Republican

It means you’re a n00b troll, only joining FR after the latest conflict in the Ukraine.


36 posted on 06/19/2024 5:49:47 PM PDT by grey_whiskers ( The opinions are solely those of the author and are subject to change without notice.)
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To: bitt

Petro dollars are soon top be renamed Orangeman Bad dollars. Its all propaganda, designed to produce sentiment against the USA.

This propaganda you will realize when the “drill baby drill” policy is renewed, and ANWAR comes on line.We have more oil than Saudi does, laying in the ground.

Who cares about BRIC ? We will put America first, let them chase their petro Dollars, we will have Trump MAGA dollars.

Ask yourself why the lefty a$$hats who are ruining the country want America to be subservient to Saudi oil.

MAGA baby!


37 posted on 06/20/2024 2:08:01 AM PDT by Candor7 (Ask not for whom the Trump Trolls,He trolls for thee!),<img src="" width=500</img><a href="">tag</a>)
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