The increasingly frequent Saudi comments about trading in nondollar currencies open the door for oil trade in Yuan, Euro or Yen.
Will a shift away from the dollar in the global oil trade really lead to a big relative decline in the dollar? Probably and eventually. But a number of other dominoes would need to fall first, most especially the domino we call “Eurodollars.”
In other words, as the dollar declines, the US regime will no longer be able to monetize debt and heap up immense new deficits without fear of high price inflation or falling Treasury prices. The end of the petrodollar is not a reason to panic right now, but it is the latest sign that the US regime’s power via the dollar is being reined in.The petrodollar is the result of US efforts to secure access to Middle Eastern oil while also lessening the slide of the dollar in the early 1970s.
But by 1974, the enormous flood of dollars from the US into Saudi Arabia, the top oil exporter, suggested a solution.the kingdom military aid and equipment as well. In return, the Saudis would use their dollars to purchase US Treasurys and help finance US budget deficits.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Are NCIS and NCIS: Hawai'i facing cancellation amid LA ending?Following the cancellation of NCIS: Los Angeles, find out if NCIS and NCIS: Hawai'i are safe…
Lire la suite »
I didn't quite expect Newcastle United fans facing this so soon...I was doing my GCSEs the last time and I didn't quite expect Newcastle United fans facing this so soon...
Lire la suite »
Sneak peek inside historic pub after major £247,000 revampMany of the original features have been retained, including the only push bells in a city centre pub
Lire la suite »
Collision stops traffic on major A road with 'long delays' predictedBreaking: Collision stops traffic on major A road with 'long delays' predicted
Lire la suite »
Warning as kids face major change to classrooms from tomorrow as teachers strikeSCHOOLKIDS could face “super-sized” classrooms with SIXTY pupils from tomorrow as teachers go on strike. Class sizes could double as at least 120,000 staff walk out across England and W…
Lire la suite »