PetroDollars

>>1793138
bamp! i'm interested in this shit too.

>>1793921
anyhow i'm calculating right now that if gold does take over the reserve currency status it will be worth 10 times the current price in eur and probably a 100 times the current in usd as usd will get fucked hard.

these are of course for one possible outcome from many.

Ok, just so I'm sure, it's the concept that the US dollar has been backed by oil ever since OPEC agreed to only trade oil in US dollars, correct?

And because Trump is planning on decreasing our dependence on foreign oil through fracking and other things, OPEC may see no point in continuing the agreement causing the American dollar to plummet, therefore it would not be unwise to invest in precious metals ASAP?

>>1793968
it's more about how the world reserve currency became the usd because of the petrodollars deal which propped up oil prices and the gains were invested in the us treasury bonds by the agreement. and thus propping up the dollar too.

this can all unravel if the yuan takes the usds place worse yuan would only be an intermediary and it would be traded for gold on the shanghai exchange. so countries like saudi arabia can sell oil for gold with a few round-trips and can sell off the us treasury bonds and dollar reserves.

if.. i understand it correctly. worse it's already begun in 2013.

I read the Saudis have floated the idea of pricing the oil they sell in Yuan.

So who knows. Technically ALL commodities are priced in USD so you could argue the dollar is also backed by pork bellies and fishmeal.

>>1794030
they not only floated it if what i read is correct they are fucking doing it.

>>1793991
>if the yuan takes the usds place

Why would this happen?

>>1794033
remember when saudis fucked the price control agreement on opec meet?
this piece of puzzle changes the meaning drastically.

>>1794039
because nor the sellers of oil nor the buyers of oil want to keep huge reserves of usd for business. it was only great for the usa.

>>1794041
ahh

here is the link from the other thread some anon posted and i read it and immediately changed my mind about selling my gold. in fact i will increase my metals to 10% of my net worth next week.

http://www.zerohedge.com/news/2017-02-09/grant-williams-death-petrodollar-and-what-comes-after

>>1794048
Thanks a ton, anon

>>1793968

increasing oil price will hurt economies. no economic growth means commodities will get slammed, which includes gold. It might hold its price.

>>1794782
>increasing oil price
but it will be the opposite anon. no limit on production by opec is the exact opposite.

>>1794048
i got the cash tomorrow we buy. gf wants to buy some too. i think she just likes the shiny.

File: Petrodollar.png (79KB, 281x164px) Image search: [Google]

79KB, 281x164px

>>1793138

The Chinese have been offloading foreign reserves out of necessity, to keep their own currency from crashing due to capital flight and declining foreign investment. Though I bet there are a few PBOC types who fantasize about it being the first step towards the yuan becoming the global reserve currency.

Also, I think the link between the demise of Bretton Woods and the Petrodollar is more nuanced than simply being a handing of the torch.
The Seven Sisters oil cartel controlled around 90% of oil production from WWII to 1970, and their business model involved keeping the prices they paid for crude low and stable.
From a 1983 Atlantic article:
>Until 1971, the cartel's consortiums gave the countries a set percentage—50 percent in most cases—of an arbitrary price, called the "posted price," that the oil companies paid for each barrel. If an independent oil company attempted to buy oil, it would have to pay a much higher, "third-party" price. It was, of course, in the interest of the oil cartel to keep its posted price as low as possible, and make its profits selling refined oil. In 1970, for example, the posted price was $1.80, as it had been, with minor fluctuations, for twenty years; consumers in Western Europe paid the equivalent of $11 to $13 a barrel for refined oil.
The U.S. suddenly running low on domestic reserves around 1968 and joining the international oil market gave a lot more power to Middle East producers, and anti-Western pan-Arab sentiment was simultaneously peaking. The effects of the end of BW were the last straw, and OPEC members decisively raised prices. The petrodollar came about as a scheme for oil producers to efficiently offload their microwaved billions.
As noted, the petrodollar contributed to dollar centrism and the capital surplus in the U.S. post-1982.

I'm also bullish on gold right now, but I doubt it will be enough to bail out Russia. And I don't see the end of the petrodollar meaning the return of the gold standard.