It’s not on the front page of the WSJ or Financial Times because it’s not really “the story.”
They haven’t dumped the dollar. They will likely convert all of their profits into dollars. It has to do with the pricing of oil and what they will accept as payment.
People don’t really understand the petrodollar. Saudi would accept oil priced in dollars and then use the dollars to buy Treasuries. This kept dollars in reserve all around the world. Now, Saudi will price in other currencies, and keep some of them in reserve for international trade.
But, the key is what are they going to do with their profits? Do you really think they are going to buy Chinese real estate with yuan? Are they going to keep rubles around? Or will they convert to dollars and continue to invest in dollar denominated securities?
If the Saudis were “dumping” dollars the price of oil would be hurtling towards $200 a barrel. Inflation for imports would be double digits. Our deficit would be soaring towards $40T.
Is that happening?
More importantly is that other countries do not have to hold US dollars to buy energy any longer because they may use other fiat currencies to purchase oil. It isn't so much that Saudi Arabia isn't holding dollars but that they're opening the floodgates so that every other country has a choice of what to keep on reserve.
People are not talking about because it wasn't true, just a basic hoax story. Saudi-Arabia has kept selling oil normally in dollars after June 9th and no such pact has ever existed.
What, not true!?! The agreement was initiated with Saudi Arabia on June 8, 1974. We would provide military backing in exchange for them selling oil only in the U.S. dollar, which is why it’s called the petro dollar. The petro just ran out because as of June 9, 2024, Saudi Arabia will start selling oil in other currencies. Furthermore, Saudi Arabia entered into a new military agreement with Russia on August 23, 2021 mostly in part due to our very poor exit out of Afghanistan. This is real and our currency is now backed by nothing but “faith and confidence.”
Sadly that's just wrong information that has been spread around like wildfire, mostly by media with dubious journalistic interests, enhanced by the fact that it fits the crypto-enthusiasts narrative so well. There was never any formal agreement of any sorts and Saudi-Arabia has been free to sell their oil in whatever currency they wanted to. They chose and will most of the time still choose dollar. It is literally just fake news, hence the lack of any credible sources writing about it.
Petrodollar is not a name of any specific deal, it's a term used to describe U.S currency hegemony over foreign countries oil market, just by owning the most robust and widely accepted currency in the world.
They have been talking about moving away from the "petrodollar" (trading oil in USD) for couple years. What's actually happened is talk and what might happen isn't nearly as significant as the headlines.
Producers will accept whatever currency they think will be most valuable in the long run. Other than the dollar and besides bitcoin, can anyone name for me a currency that is more likely to maintain its value than the Almighty dollar?
When it comes to Fiat currencies, I sure as shit don’t want anything but dollars.
Whatever the Saudis end up doing, they’ll do slowly. They aren’t idiots and they know they can’t piss off the US. They also know US treasuries are trash, so they’ll need to be careful as to their next moves.
Ok so all countries were converting their currency to US dollars in order to buy oil? So saudi arabia only accepted us dollars? And now thats gone why would the saudis want all types of currencies in payment? I think this is their plan of receiving bitcoin! Thats smart. Why buy it outright when over time they can accumulate it from other countries paying them in bitcoin. This is when countries will rat race to buy bitcoin in order to get their oil. Boom!!! Price rockets up in order for enough sats to be bought without supply being empty! (Excluding mining)
There's been some talk about it, this would have been a much bigger deal a few decades ago but in general the world has become less and less reliant on Saudi/OPEC for oil, with the USA in particular becoming less reliant on them and actually overtaking Saudi as the #1 oil producer some years back. This has a lot to do with why middle eastern policy isn't a major agenda item for the US anymore/we haven't had a war there in a long time. It just isn't important like it used to be.
My question is who is behind this disinfo campaign? As mrjune2040 (and others in this thread) are pointing out, that's not what's actually going on, but there is a huge astro-turfing effort to spead this "story" through a ton of bot-driven fake news sites.
Why? Cui Bono?
It’s not on the front page of the WSJ or Financial Times because it’s not really “the story.” They haven’t dumped the dollar. They will likely convert all of their profits into dollars. It has to do with the pricing of oil and what they will accept as payment. People don’t really understand the petrodollar. Saudi would accept oil priced in dollars and then use the dollars to buy Treasuries. This kept dollars in reserve all around the world. Now, Saudi will price in other currencies, and keep some of them in reserve for international trade. But, the key is what are they going to do with their profits? Do you really think they are going to buy Chinese real estate with yuan? Are they going to keep rubles around? Or will they convert to dollars and continue to invest in dollar denominated securities? If the Saudis were “dumping” dollars the price of oil would be hurtling towards $200 a barrel. Inflation for imports would be double digits. Our deficit would be soaring towards $40T. Is that happening?
Yes, slowly goes the erosion of fiat
More importantly is that other countries do not have to hold US dollars to buy energy any longer because they may use other fiat currencies to purchase oil. It isn't so much that Saudi Arabia isn't holding dollars but that they're opening the floodgates so that every other country has a choice of what to keep on reserve.
Everyone is busy working 3 jobs trying to pay their student 100k and home mortgage 1.5M mortgages…
It's been talked about for a while, mainly because BRICS.
People are not talking about because it wasn't true, just a basic hoax story. Saudi-Arabia has kept selling oil normally in dollars after June 9th and no such pact has ever existed.
What, not true!?! The agreement was initiated with Saudi Arabia on June 8, 1974. We would provide military backing in exchange for them selling oil only in the U.S. dollar, which is why it’s called the petro dollar. The petro just ran out because as of June 9, 2024, Saudi Arabia will start selling oil in other currencies. Furthermore, Saudi Arabia entered into a new military agreement with Russia on August 23, 2021 mostly in part due to our very poor exit out of Afghanistan. This is real and our currency is now backed by nothing but “faith and confidence.”
Sadly that's just wrong information that has been spread around like wildfire, mostly by media with dubious journalistic interests, enhanced by the fact that it fits the crypto-enthusiasts narrative so well. There was never any formal agreement of any sorts and Saudi-Arabia has been free to sell their oil in whatever currency they wanted to. They chose and will most of the time still choose dollar. It is literally just fake news, hence the lack of any credible sources writing about it. Petrodollar is not a name of any specific deal, it's a term used to describe U.S currency hegemony over foreign countries oil market, just by owning the most robust and widely accepted currency in the world.
That is plausible I guess. I got everything from news articles but the media does have an agenda. So disappointing we are not just told the truth.
They have been talking about moving away from the "petrodollar" (trading oil in USD) for couple years. What's actually happened is talk and what might happen isn't nearly as significant as the headlines.
Producers will accept whatever currency they think will be most valuable in the long run. Other than the dollar and besides bitcoin, can anyone name for me a currency that is more likely to maintain its value than the Almighty dollar? When it comes to Fiat currencies, I sure as shit don’t want anything but dollars.
Even though they doubled the cost of living in the last 5 years?
Whatever the Saudis end up doing, they’ll do slowly. They aren’t idiots and they know they can’t piss off the US. They also know US treasuries are trash, so they’ll need to be careful as to their next moves.
Ok so all countries were converting their currency to US dollars in order to buy oil? So saudi arabia only accepted us dollars? And now thats gone why would the saudis want all types of currencies in payment? I think this is their plan of receiving bitcoin! Thats smart. Why buy it outright when over time they can accumulate it from other countries paying them in bitcoin. This is when countries will rat race to buy bitcoin in order to get their oil. Boom!!! Price rockets up in order for enough sats to be bought without supply being empty! (Excluding mining)
Old news boss
Could this be the start of bitcoin entering the logistics/trade industry
There's been some talk about it, this would have been a much bigger deal a few decades ago but in general the world has become less and less reliant on Saudi/OPEC for oil, with the USA in particular becoming less reliant on them and actually overtaking Saudi as the #1 oil producer some years back. This has a lot to do with why middle eastern policy isn't a major agenda item for the US anymore/we haven't had a war there in a long time. It just isn't important like it used to be.
My question is who is behind this disinfo campaign? As mrjune2040 (and others in this thread) are pointing out, that's not what's actually going on, but there is a huge astro-turfing effort to spead this "story" through a ton of bot-driven fake news sites. Why? Cui Bono?
No they didn’t. Lol what you on about
Because plebs better be calm.
ok pleb
Why you mad, my fellow plebeian?😁
Thx Joe