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Xitter is full of people saying the petrodollar is dead because Saudi Arabia didn’t renew an agreement with the US to exclusively sell oil in Dollars 🤦‍♂️

Clearly I am a dollar bear as evidenced below, but come on people!

There’s no fucking petrodollar contract with a 50 year term that just randomly expired last week because Biden forgot to negotiate an extension. That is not and never was, how modern geopolitics works.

There’s military and trade alliances, leeway for diplomats and top officials, heavy blackmail, brown paper bags (actually suitcases) full of cash and gold, blind eyes turned and all sorts of shit going on in the background.

This ☝️ is why BRICS *is* happening; manoeuvring and politicking. Not because of a piece of paper signed by dead people some 5 decades ago - but because of the actions of leaders alive today, dealing with reality as it is rather than how the textbooks record it.

If it was as simple as an expiring contract propping up the Dollar; the US would have invaded Saudi Arabia the day after expiry. nostr:note1526hch0dhc6xaaf0cf04k8gxwm2mty9m2zvgdzn6uj20hls7rqesauwjsd

hh 1y ago

You know being a bitcoiner is being short the USD, so I'm with you on that.

But that in my opinion doesn't mean the USD will be replaced by anything the "BRICS" can come up with.

If the USD is absolute trash, imagine the hypermanipulated RMB, the useless Russian Ruble, etc. There is no alternative to the USD as a fiat currency for trade and for reserve. None. They all go to zero, but the USD will be the last one of the lot.

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StackSats.IO 1y ago

I don’t think anything BRICS comes up will replace the USD - I expect it will compete with it, fucking up the liquidity balance of the jenga skyscraper that is international finance.

It doesn’t even have to compete “well”, it doesn’t have to be used in every contract, it just needs a big enough network to fuck up the hegemony and that won’t take much when you consider how on a knifes edge the current system is.

Reserve asset strategy has already changed - hard assets and commodities. Countries don’t want US paper any more.