Why did the US tie its currency to a shitty limited resource?

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It's not limited.

>t. abiotic oil theory

scarcity based SLAVERY economy
control a finite resource the world depends upon
control the world by economic & military proxy
rub wieners

>>128897765
>potential

you don't even know where it might appear next

>>128898017
but you don't control it, you just depend on it

>>128897598
what? do you not understand economics? what is it supposed to be tied to? Gold?

It's not limited, that's why they need to bombard anyone who rise a half doubt about the petrodollar or create an alternative financial framework

>>128898338
secret society mafias control the planet not "countries" per se

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>>128898379
forgot my pic. this is a slide thread btw

>>128898379
> do you not understand economics?

great meme. do enlighten me

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>>128898640
nice dodge. answer my question. what is it supposed to be tied to? Gold? what? mr smart guy

>>128897598
>Why did the US tie its currency to a shitty limited resource?

They should have tied it to BBC instead.

>>128898556
Sliding what? Is there a happening going on I don't know about because the catalog looks like a depressing pile of stale shit

>>128898870
>Is there a happening going on I don't know about

Yes, Comey just confirmed that Trump asked him to drop the Flynn investigation.

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>>128898870
because of people like you... i am making this a redpill thread

>>128898859
>KEXK
bruh

>>128898780
still waiting for you to "explain" economics

>>128898977
Yesterday's news

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>why did the US tie it's currency to the most important resource in the world

Because the constant trade of something the world uses daily allows them to create infinity dollars to do anything

>>128899007
We all have dreams and aspirations.
>>128899113
>Yesterday's news
Interesting, because his opening statement confirming this has only just been leaked.

>>128899188
> most important resource

not really. it's replaceable unlike say metalls

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>>128899043
dude no wonder you don't know shit, you want me to explain what economics is to you but you are again dodging my question. you made this thread and asked the question "why did the US tie its currency to a shitty limited resource?" so, again my question is to you for the third time, what is it supposed to be tied to? cryptocurrency? gold? because unless you are talking about bitcoin and cryptocurrencies, everything else being limited, you are talking nonsense and this is a shill thread

>>128898640
Gold is a commodity which has consistently been seen as valuable throughout the millenia. Under the gold standard, paper money derives its legitimacy from being tied to an actual commodity and governments must buy or sell gold to change the money supply. That is, the demand and supply for gold constrain the central banks policies.

With pure paper money, the currency's legitimacy is only your trust in the government's ability to make it a legitimate payment mean; central banks have total discretion over the money supply.

>>128897598
Are you stupid? Things that are unlimited have zero monetary value you fucking retard

>>128899294
16 hrs ago is when the articles came out. do keep up

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>>128897598
>Why did the US tie its currency to a shitty limited resource?
If only. Fuck this fiat jewpaper.

>>128897598
It's not. The US just dominated the trade of oil so a large amount is traded in the value of a USD, even if no actual USD are exchanged.

>>128899388
Maybe one day when the use of all that oil is replaced they will tie their currency to the replacement. Meanwhile in the real world your whole lifestyle depends upon it

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pretty sure he is talking about the petrodollar

>>128899597

No, it has only just been confirmed. Touch my penis.

>>128899516
so what happens when your allies run out which is projected to be very soon? there's the Arctic but you'd probably have to go to nuclear war over it

>>128899610
see here
>>128899816

>>128899848
>confirmed
the info itself has been out since yesterday. only autistic r/the_dumbfucks didn't believe it

>>128899512
The cons of the gold standard is that central banks have less flexibility to "stimulated" the economy in times of downturn, that governments are exposed to commodity risk (although gold has consistently been a 'safe haven' asset in times of crises, so the risk is probably limited, gold will probably always have at least some value) and that there is a cost to store and transport gold.

The cons of pure fiat paper money is that central banks can do whatever they want and you have to trust the government.

This is why libertarians (anti central banks / government) are generally for the gold standard while the current mainstream (post-Keynesian more or less) is generally pro pure fiat paper money.

>>128899894
Oil in terms of reserves are vastly larger than recoverable oil. As technology and methods improve more oil becomes economical to extract. As the price rises more oil becomes economical to extract.

At the far end extreme we can directly synthesize a 1:1 replacement for liquid fuels, which are about 80% of the demand for oil.
https://www.youtube.com/watch?v=G8zOHZINyG8

Our currency is tied to our role as world hegemon. I don't know wtf you're talking about. If our money was actually backed by oil, that would be a good thing, because then the bankers couldn't just print it out of whole cloth.

>>128900220
The con of the gold standard is that as an economy grows the amount of gold that needs to be hoarded also grows, the price of gold rises and more effort is spend on the useless mining of gold.

As the economy expands your value of gold would change if production couldn't keep pace. Which means the value of the dollar would change. An ideal currency would hold it's value without inflation or deflation.

>>128900670
no, it's the other way around. "hegemon role" by itself is meaningless, see the UK pre and post WW2

>>128900861
Because it's not like fiat currency has problems with inflation, in addition to about seven million other issues.

>>128900422
At which point does nuclear power finally crawl out of the hole the oil companies managed to bury it in

>>128900670
Being superpower means you can dictate the world trades oil in us dollars only. Oil is the most important resource. So now countries around the world hold us dollars in safes much as they once held gold

>>128901174
It can have issues with inflation but that's not a requirement. A responsible government could create new currency only at a rate of holding value.

With gold you have no option other than increasingly expensive mining, or a constantly deflating currency.

>>128901059
How is it meaningless to have the military projective capabilities necessary to ensure the world cows to your will?

>>128901218
>At which point does nuclear power finally crawl out of the hole the oil companies managed to bury it in
When China finishes work on their LFTR and starts factory produced mass production.

>>128899043
fucking retard, to what is tied the $? thin air?

>>128901519
The ability to command labor and goods from the US economy.

>>128901412
see the UK pre and post WW2 m8
standing military is increasingly useless too because you can't really invade any major powers (that all have nukes)

>>128897598
>a shitty limited resource?

the resource isn't limited

https://www.youtube.com/watch?v=mmdehw7SaS0

>>128897598
Because of Frozen Elsa vs Spider-Man and Joker Fidget Spinner Tricks Battle Accident Lego Batman Prank

>>128901365
>responsible govt
yes, because giving humans ultimate power over society and the economy doesn't inevitably result in them trying to concentrate that power.
You're unbelievably naiive.

>>128901519
spics, not even once

>>128901643
???????? this is what currencies are for.

>>128901365
>second bit
Which is why you should have multiple competing currencies.

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>>128902103
I'm Austrian, so have some respect and answer the fucking question.

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>>128902088
>>128902177
oh, man, both got doubles
Kek knows what's up
(also wtf is with 4chan calling your post spam if you type "d.u.b.s")??

>>128897598
Debt? Pretty sure it's unlimited, Anon.

>>128899894
Bro we were supposed to have run out of oil in 2005.... Never happened.

>>128898379
>do you not understand economics?

Hoh boy, lolbertarian spam coming in hot.

Other schools of thought other than Austrian do exist? You do know that, yes?

Keynes was right btw.

>>128900861
Yes, this is part of what I said about the costs of using a physical commodity, I mentioned storage and transportation, should also have mentioned extraction.

(Although we could do like some niggers did by choosing a commodity which is not very scarce or difficult to extract - they used shells - but scarcity and difficulty of extraction is part of why gold is seen as valuable)

Moderate inflation is actually okay as long as it's not out of control since it doesn't lead to value-destroying preferences (as high inflation or deflation do).

>>128897765
>its not limited
if its unlimited its not worth anything.

dollar gets strong => people use the dollar => oil countries sell in dollars to people who use it => people need more dollars to buy oil => dollar gets strong

>>128897598
Answered in "The Money Masters" by William Still on YouTube

>>128902521
Keynesian policies have failed everywhere and every time. By his own metric of empirical economics he is a failure.

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>>128897598
Waiting for the porno "'Let it blow''

let it blow let it blow
Can't hold it back anymore
Let it blow let it blow

>>128897598
I think there is something I misunderstand there. You're referring to the petrodollar? I thought it meant that the USD is used to trade oil, not that the USD is backed by oil, right?

>>128897598
I supose that money should be tied to a limited resource by its own nature.
To tie money's value to an infinite thing (as the ordinal numbers) is to destroy its value as change tool and would transform the currency in a vague name only.
Currency has no value by itself, its always related with its change possibilities. that's why even the Best Korea accept US dollars.

>>128902663
I get it, but it's not the same thing as an oil standard. With an oil standard, US oil reserves and USD have a correlation of 1. With the petrodollar, oil prices and USD might have a positive correlation (0 < x < 1), but it's not always true as there are a lot of other factors.

>>128898379
The US Dollar is tied to the US military.
The greatest blunder of the last century was china letting us borrow so much.

>>128903758
>The US Dollar is tied to the US military.
It's always the case even with the gold standard. I mean, if we kick your ass and you have gold we will take it as "reparations".

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>>128902521
see pic related

>>128898338
everyone depends on it to run a nation and an economy.

Until recently oil could only be bought and sold in USD. This mad the USD the world rserve currency and created a false value and reliability in the USD which allowed the US to print a fuckload of dollars and send them out into the world to buy all the stuff it wanted (mostly from China). In this way the US has exported its inflation because printing all the money you want will devalue it. So now there are more USD outside of America than inside and recently countries started buying and selling oil in their own currencies because its not likke the US is going to bomb China or Russia. Also since the bailouts every indiviual in these countries know the money system is a big lie, so USD aren't reliable or valued anymore and soon they will start flooding back to the US (like when Germany and other countries demanded their Gold back) and hyperinflation will hit the US like a train load of shit in a jet engine of a fan.

Its mathematically certain. In fact its already happened, theres just so many brainwashed dickheads milling about that aren't reacting, so the central banks continue to expand the lie until it can't be ignored anymore.

>>128901365
>Responsible
>Government
Pick one.

And, yes, inflation is built in to our monetary system. If the money supply does not keep on expanding, the interest that has accumulated on all of the debt that has been taken on will not be serviced. That's one of the potential triggers for a loss of faith in the currency. There is approximately $13.5 trillion in M2 money in the US and the last proxy I saw for total debt, public and private, was around $60 trillion. That $60 trillion is still accruing interest, and that interest will mostly be paid from the M2 supply. We've got a pretty big fucking problem.

>>128897598
>limited resource

Lithium ion batteries are limited as well. What do you think it takes to manufacture them? Do you think they can just keep being recharged forever?

>>128903427
Petrodollar is literally just the fact that the gulf arabs force people to buy dollars to buy their oil. It's just one facet of the Dollar's supremacy in the world. It gives the US the ability to print money without inflation

>>128905066
Isn't it being challenged though? I heard that some countries now allow to trade it in EUR, RUB or CNY?

>>128905298
wont change until there's a currency as attractive to investors as the dollar. Euro is too unstable, RMB has the gov tinkering with it 24/7, Dollar is the only reliable currency atm

>>128897598
but war is an unlimited resource

>>128905764
There's a point where the tech used for it isn't. The bubble pops

>>128904264
the unfortunate thing is so many countries still have their currency pegged to USD even as they try to shut down the petrodollar system, so sudden massive inflation wouldn't just hurt the USA, it would hurt practically everybody.

I'm also concerned that once the petrodollar is gone, someone else will just move into the foreign reserve currency game and the cycle will just repeat itself

>>128898017
>control the world by economic & military proxy
And dont forget it.

>>128905687
but is it stable because its all those people wont leave or because its actually stable? I feel like the dollar is only as good as it is because it was the first to get as stable as it is, not that its not stable just that with the world economy closing the third world gap more and more, Is a global currency the only option? and if it is how big will that affect the banking sector? would jobs be lost or would they all just shift to farming them bitcoins/ managing the new currency?

>>128906141
Yeah - its true. The collapse of the dollar will cause all other currencies to fail in line from the "richest" to the poorest. African nations will barely notice and it will have the least effect there.

They're going to replace the USD with the SDR special drawing rights and that will be the new world reserve currency, and the new world order currency

>>128898379
>what is it supposed to be tied to? Gold?
Yes, actually.

>>128906598
it's stable because trying to leave is already very difficult, and the longer the system continues like it is, it will become even harder. people are trying to take steps to leave (and I really do hope eventually the world economy is able to transition into something more productive), but everyone really has to work in concert

>>128907004
interesting, i'll have to read about those

>>128897765
This isn't that great. You'd likely get the Hydrogen from this via electrolysis (powered by fossil fuels). You'd generate no energy.

>>128907122
Renewable energy is the obvious long term future.(right?) if so, we need to figure out the right way to transition into that without tyranny emerging. it seems like huge corporations have a monopoly on the future and that scares me.(not a communist just dont want a free non-energy dependant society to go the way of fascism) i think a new currency is a big part of preventing that

>>128907571
This. It's only useful if you absolutely need methane for something, and are using other forms of energy for your production of H2.

The Sabatier reaction is currently used on the ISS as part of their air recycling system, but they're using it for the H20, and they dump the CH4 into space.

>>128897598
You're an idiot if you don't even understand something this basic.

The value of the paper based "money" we all have is derived from the amount of "goods" or services you can exchange it for. For most countries, that's equivalent to the amount of goods and services your country can provide, i.e. fairly limited. You can't just print shit tons of money to get rich or you will end up with hyper inflation. (see Zimbabwe)

But if you tie your currency to an resource that is in demand by fucking everybody, then it becomes infinitely more valuable, since anyone can use that currency to buy this super resource. This then allows you to print vast sums of this paper currency, use it to pay for goods and services from your own or other countries. And the resulting inflation isn't burdened by only your country, but everyone who uses this currency to buy this super resource.

And that, is the power of the petrodollar. It's how America shipped its inflation to the rest of the world. And if you dare challenge the petrodollar, rest assured those super expensive US aircraft craft carriers that you helped to fund by buying oil will come for you.

>>128897598
Lawrence of Arabia. Duh!

>>128897598
>Why did the US tie its currency to a shitty limited resource?
Because it would have crashed otherwise.