Oh and guess what they discovered? They found a bunch of oil and gas in North Korea

And for some reason, NK still imports all it's oil and natural gas, while producing none.

if you have zero proof to back it up.

The only proof I have is his statement that the dollar will collapse soon. Are you saying I should not have believed that he really feels that way?

since he is so certain, he should short the dollar, making him insanely rich when the dollar collapses. Something tells me he will still be here next year complaining about being broke.

Thanks slim. stay on that treadmill buddy.

It's one thing to wear the tinfoil hat, which you insist on doing. But you seem to be smoking the chemtrails with the tinfoil as well.

This certainly explains your logic process.

Yea, it's perpetually 1973, forever. Nothing ever changes. Ever.

If it was true once, then it must always be true. Nixon is still president.

Yes. This is due to supply and demand. It's not a conspiracy.

“Supply” and “demand” curves notwithstanding...

You mean a used car has a different demand curve than a new car? Holy cow! More smelling salts please!

Most modern currencies are indeed fiat

All currencies are fiat. Name one that isn't.

But Bitcoin is a decentralized crpytocurrency

backed by what?

And then there's the gold-backed petroyuan

That's how I know you are eating dream cookies and have completely lost touch with reality.

What't the exchange rate on the petroyuan? How many dollars is one petroyuan worth?

know why you cant answer this? because the petro yuan is a futures contract, not a currency.

You are grasping at straws kid.

Nope. I just enjoy making fools of you guys.

And no, decentralized currencies backed by a commodity are not "fiat"

Which currency are you talking about? What commodity backs it? How many countries use it? Is that a secret?

Most grocery stores operate on a profit margin of one to three percent.

WTF does that have to do with demand for dollars? You really have run off the rails. The profit margin of grocery stores or car lots have no relevance, except to further prove that you don't understand how the ForEx markets work.

Demand is demand. supply is supply. neither of those are profit margin.

If 1% of demand for X (dollars, oil, gold, soybeans,) comes from China, and China stops demanding X, then demand will go down by 1%. The price will likewise go down by 1%. That's how supply and demand works. It's obvious you have never graphed a supply curve or a demand curve.

It's almost as if you are unable to refute a single thing I said.

Petrodollar tin foil hat clowns are simple targets. It's kinda fun to destroy people's silly fantasies.

You think only shills have access to facts and logic, huh?

What is it about facts that you hate so much?

That's common knowledge. But Saudi Arabia's $117 billion holdings of US debt is not the largest by far.

China, Japan, and the UK hold more than 10 times that. https://ticdata.treasury.gov/Publish/mfh.txt

Your article says that the Saudi's dollars represent only 20% of their total reserves.

None of that will make less than 1% more than 1%. Something you seem keen on forgetting. I wont let you forget.

2) access to global oil reserves

99% of companies don't purchase oil.

OPEC writes invoices in dollars.

Venezuela and Iran do not sell oil in dollars. Also, more than half of oil exports come from non-OPEC countries. https://en.wikipedia.org/wiki/List_of_countries_by_oil_production

But America is trading on its word
That's because the dollar is nothing more than an IOU

You mean US currency is fiat money, like every single other currency on the planet? More smelling salts please!

At that point Saudi Arabia might just say goodbye to the petrodollar

It wont matter a single bit. I have covered that. Over 99% of dollar demand is for non-oil products.

When oil based dollar demand dropped by 75% (due to oil prices dropping by 75%), nothing happened.

Just because you want it to matter doesn't change the reality that it doesn't matter. It may have mattered in 1973, but it doesn't anymore.

Business and corporations can foot the bill for other commodities because they're the ones actually buying the resources first hand for said X product. Not the people.

When is the last time you bought a barrel of oil?

When was the last time you ever heard someone on the street complain about the copper prices being too high?

Have you ever bought AV cables? They're outrageous, and everybody complains.

Or silicon prices being outrageous?

You ever bought a processor, or a new phone? Pretty fucking pricey, and everybody bitches.

Gosh, I wish steel was cheaper for my everyday use.

Evidently you have never bought a new car. They are extremely expensive, and everybody complains.

You can say these are secondary, but so is gasoline. People don't buy oil, they buy gasoline.

The price of oil going up is inevitable.

Then why the hell does it go down on a daily basis? If you understood economics, then it's just not the supply that determines the price, it's also the demand.

Do you think the price of oil could fall 80%, 90%, or 99%, and still prop up the value of the dollar?

You can pretend that oil prices have never fallen dramatically as a way to avoid the question, but oil prices have fallen dramatically. You can pretend that demand is unimportant,but that wont make demand unimportant.

Do you think the price of oil could fall 80%, 90%, or 99%, and still prop up the value of the dollar?

You don't actually know that 1% value means more

Nope. 1% still means 1%. That's how math works. Your personal experiences and feelings don't count in math or economics. There is nowhere on the supply/demand curve for feelings. Oil traders and currency traders don't poll you asking about your feelings before they make a trade. Know why they don't? Because your feelings are irrelevant to their calculations.

That time Saddam wanted to trade oil in Euros instead.

Yea, the US (a permanent member of the security council) actually voted to allow Iraq to do exactly that. http://www.cnn.com/2000/WORLD/meast/10/30/iraq.un.euro.reut/

Did the dollar collapse? Nope.

The USA doesn't need oil to be sold in dollars.

The USA imposed sanctions that makes it almost impossible for Iran to sell oil for dollars. https://www.cnbc.com/2018/12/31/reuters-america-exclusive-india-exempts-rupee-payments-for-iran-oil-from-hefty-taxes--govt-order.html

The USA imposed sanctions on Venezuela that makes it almost impossible for them to sell oil for dollars.

Do any of these actions seem like the USA needs countries to sell oil for dollars?

Hello?

is that it is a commodity that is directly tied into the ENTIRE infrastructure of the whole nation.

So is copper. So is silicon. So is steel. So is software. More dollars are spent buying software than oil.

Because it is already given that it is not directly tied off to a 1:1 ratio as some tangible valued object.

Wtf does that even mean? Are you trying to claim oil is intangible? Are you trying to claim oil is worth more than it is? The price is the only metric used to determine value in economics. Economics does not use emotions. Just because you feel like oil is more valuable than the price, does not make it so. Economics uses numbers, not feelings. your feelings don't count here.

is that it is a commodity that is directly tied into the ENTIRE infrastructure of the whole nation.

So numbers don't matter, and all that matters is the importance of oil? that's like claiming that a $1 transaction for 1 "important" barrel of oil could prop up the dollar's value. See how silly that is?

Numbers are what's used in economics to predict prices via supply and demand calculations. The dollar is a commodity, subject to supply and demand just like every thing else.

You are claiming that over 99% of dollar demand is unimportant, because less than 1% is used to buy oil. That's like claiming that demand for dollars could drop by 99%, and the dollar would still have the same value, because some dollars are used to buy oil!

Did you read about what happened around the gold to oil switch?

If the dollar is backed by oil, then why didn't the dollar fall in value by 75%, when the price of oil dropped by 75%? Why do you refuse to answer that?

Do you think the price of oil could fall 80%, 90%, or 99%, and still prop up the value of the dollar? Go on, it wont hurt you to answer that, I promise.

If you don't run away at this point, and you honestly answer the questions asked, then you will arrive at some strange and illogical conclusions, for which I am prepared to call you out on.

It's your choice.

Why do you think the dollar did not collapse when oil prices dropped by 75%?

Why do you refuse to answer this?

You honestly believe your 1% horn-tooting has nothing to do with more than paper and pen economics?

So if you don't bother to use math, then 1% can be more than 1%?

Actual economists use math. It's essential to do economics properly. Real world economic phenomenon, such as supply and demand of US dollars affecting the value of a dollar, is based on real numbers. No imaginary numbers are used in economics.

Now that the rats want to jump ship without being accused of being disloyal whilst they grab the next new thing (Yuan), they’re now pretending as if it never existed.

No, I am not. I am not denying that Kissinger went to meet with the Saudis to strengthen trade relations. This almost certainly helped mitigate the shocks of US departure from the gold standard. Maybe in 1973 oil sales made up 2% or even 5% global dollar trade (oil was insanely pricey during this period.)

But why do you insist that 1% is more than 1% today? Why do your refuse to even acknowledge that? I think we both know.

Feel free to scroll to the end...

The word Euro nor dollar are mentioned in that document. Wanting something to be relevant does not make it relevant. That's like linking to my facebook page and saying I won, because my niece went to Disneyland.

None of this changes the fact the oil sales make up less than 1% of dollar trade. You can want it to matter if all oil is sold in yuan, yen, euros, seashells or wampum. But that won't make it matter. Wanting something to be more significant than it is has never made anything more significant.

1% = 1%. Wanting 1% to be more than 1% will never make it so.

This is the same reason the dollar did not collapse when oil prices dropped by 75%. More than 99% of all dollar trade is NOT used for oil.

So collapse next week, huh? Next year? Next decade?

i will be on my boat.

I am really sorry you don't like reality kid. Get me a skinny vanilla latte, please.

violating the embargo by using the Euro.

How is using the euro violating the embargo if the US voted to allow them to do so?

Smoking the chemtrails will damage the brain kid.

Thanks for playing.

So it was that the war against Iraq was a war against Saddam violating the embargo by using the Euro.

Wow. The US, a permanent member of the UN security council, actually voted to allow Iraq to use Euros. http://www.cnn.com/2000/WORLD/meast/10/30/iraq.un.euro.reut/

I really do apologize for ruining your conspiracy fantasy with facts.

You really don’t know your history, do you?

Nothing in there "spelled" out that Saudi Arabia would exclusively sell oil in dollars as you claimed.

And yes, Russia’s currency is PEGGED to the dollar as the standard for trading oil commodities.

And this is how I know you have zero idea what you are talking about. Maybe you think this Reuters article is lying, huh? Are they in on the conspiracy to prove you wrong? https://www.reuters.com/article/us-russia-cenbank-rouble/russian-central-bank-abandons-rouble-trading-band-floats-rouble-idUSKCN0IU1CF20141110

C'mon back to the real world. Trust me it's no so bad.

Stop smoking the chemtrails!

in US treaties with the Saudis and OPEC.

Let me guess, the treaties are a secret, huh? And Iran and Venezuela (OPEC Members) are keeping this treaty a secret too, right?

1. What's the name of this mysterious treaty?

2. What are the contents? Surely there must be a record of this "treaty", right? What? No record?

3. Why would the rest of the world abide by a treaty signed by the US and OPEC?

4. You really think Russia sells 75% of their oil in US dollars to comply with this secret treaty?

See ya kid.

exclusivity in the oil trade markets.

It's hardly exclusive. Oil is regularly traded in Yuan, Yen, Euros, Canadian Dollars, Swiss Francs. https://en.wikipedia.org/wiki/Petrocurrency

https://www.presstv.com/Detail/2018/12/06/582162/EU-euro-dollar-SPV-Iran-oil

This has been going on for decades. The dollar never experienced abnormal inflation during this time.

The oil-dollar is tried to our entire infrastructure and advancement.

So the other 99.5% of dollar demand (non-oil) is meaningless?

Oil is regularly sold for Euros, Yuan, Yen, Canadian dollars, Swiss francs etc. That has not caused the dollar to collapse.

If every barrel of oil was sold in Yuan, Euros, seashells or wampum, then at most the dollar's value would fall by 0.5%. Because that's how much of dollar demand is oil. The demand for dollars would fall by 0.5%.

The 0.5% is not a constant. It will skyrocket or be completely worthless depending on politics.

Like you said, there will be less and less oil sold in the future. How would LESS oil being bought with dollars increase dollar demand? When LESS oil gets bought, that number will fall to LESS than 0.5%.

Th only way that 0.5% could skyrocket to 1% would be if oil production doubled. Do you really think oil production could double, triple, or quadruple?

The 95.5% could also drop to just about nothing in that situation.

What situation are you talking about? What situation would cause 99.5% of dollar trade to evaporate?

Currently right now, no. Fifty years from now, yes.

Why would 0.5% of dollar demand matter in 50 years?

You really think the 0.5% of dollar demand is what propping up the dollar's value? The other 99.5% doesn't matter?

The petrodollar myth is a conspiracy theory for distracting the tinfoil hat crowd.

These irrefutable facts have caused seething rage in many people with an emotional attachment to this conspiracy theory.

The conspiracy theory says the US dollar's value is propped up because Saudi Arabia and other countries sell their oil for US dollars.

The USA needs Iran to sell oil for dollars so bad that the USA made it illegal for Iran to sell oil for dollars.

the USA needs Venezuela to sell oil for dollars so bad that the USA made it illegal for Venezuela to sell oil for dollars.

How has the dollar performed without these dollar/oil sales? It's up 10% over the last year. - https://www.tradingview.com/symbols/TVC-DXY/

How, you ask?

Because oil sales make up less than 1% of global dollar trade. LESS THAN 1%

Total oil exports globally? - $1.7 Trillion/YEAR https://www.visualcapitalist.com/size-oil-market/

Total dollar trade globally? $4.6 Trillion/DAY https://www.businessinsider.com/heres-how-much-currency-is-traded-every-day-2016-9?IR=T

Remember when the dollar collapsed because the price of oil fell by 75%?

Yea, me neither.