Biden's Legacy of Disaster Continues - China Trying to Buck the Petro Dollar

[WestCanMan]

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How Petrodollars Affect the U.S. Dollar

https://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp

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After the collapse of the Bretton Woods gold standard in the early 1970s, the United States struck a deal with Saudi Arabia to standardize oil prices in dollar terms.1Through this deal, the petrodollar system was born, along with a shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.

The petrodollar system elevated the U.S. dollar to the world's reserve currencyand, through this status, the United States enjoys persistent trade deficits and is a global economic hegemony.2 The petrodollar system also provides U.S. financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling." However, a full explanation of the effects of petrodollars on the U.S. dollar requires a brief synopsis of the history of the petrodollar.

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Saudi Arabia Considers Ditching The Dollar For Chinese Oil Sales

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One day after we reported that the "UK is asking Saudis for more oil even as MBS invites Xi Jinping to Riyadh to strengthen ties", the WSJ is out with a blockbuster report, noting that "Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in yuan," a move that could cripple not only the petrodollar’s dominance of the global petroleum market - something which Zoltan Pozsar predicted in his last note - and mark another shift by the world’s top crude exporter toward Asia, but also a move aimed squarely at the heart of the US financial system which has taken advantage of the dollar's reserve status by printing as many dollars as needed to fund government spending for the past decade.

https://finance.yahoo.com/news/saudi-arabia-considers-ditching-dollar-170000924.html

While the US is busy celebrating the demise of the Russian stock exchange and all of the dire consequences that their sanctions are having on Russia, a more permanent blow may be struck against the US by China. 

Saudi Arabia is busy negotiating with China now and they're not answering calls from Joe Biden. Once China busts free from the petro dollar you'll never get the toothpaste back in the tube. 

This seems like a huge turning point in world history and we have one bad election to blame for it. 

 

[Faramir]

Nixing Bretton Woods lead to 50 years of constant inflation.  I'm a Von Mises fan so that makes me not a fan of central banking and paper currencies.  Nixon was one of the worst POTUS.  The USA is going to lose its place in the world, which will result in a total break down of the world order.  That will re-assert itself with China.

[WestCanMan]

On 3/16/2022 at 12:21 PM, Faramir said:

The USA is going to lose its place in the world, which will result in a total break down of the world order.  That will re-assert itself with China.

TBH, I think that China has probably already surpassed the US. 

Even if the US is still a little more powerful militarily, I don't think that they could match up with China's willingness to suffer tens of millions of casualties in order to win. 

China also values strength in their leadership, in the west we value hollow virtue signalling. 

Our dollar is a joke right now. I honestly can't believe how bad we screwed our country with covid. 

[WestCanMan]

I also love how Biden is saying that putting a bazillion more dollars into circulation isn't causing inflation. 

I can't even wrap my head around a reason why he'd think that. 

[suds]

Biden's 'continuing legacy of disaster' is right.  Playing softball with Saudi's sworn enemy Iran isn't helping matters either.  Everyone should know by now he's unfit for office.

[eyeball]

10 minutes ago, suds said:

Biden's 'continuing legacy of disaster' is right.  Playing softball with Saudi's sworn enemy Iran isn't helping matters either.  Everyone should know by now he's unfit for office.

And yet no one disputes the fitness of sworn US allies like Suadi Arabia. Not even after 15 of them attacked the US on 9/11.

Anyone care to speculate on who the US would have sought in revenge for 9/11 if it had been 15 Iranians?

Venezuela?

 

[suds]

On 3/16/2022 at 3:21 PM, Faramir said:

Nixing Bretton Woods lead to 50 years of constant inflation.  I'm a Von Mises fan so that makes me not a fan of central banking and paper currencies.  Nixon was one of the worst POTUS.  The USA is going to lose its place in the world, which will result in a total break down of the world order.  That will re-assert itself with China.

You can't blame Nixon for the Vietnam war.  The spending/inflation involved with the war decoupled the USD and gold at $35/oz.  Countries wanting  to trade in their USD reserves for gold at $35/oz created a threat to US gold reserves, and that's what killed Bretton Woods.

[suds]

12 minutes ago, eyeball said:

And yet no one disputes the fitness of sworn US allies like Suadi Arabia. Not even after 15 of them attacked the US on 9/11.

Anyone care to speculate on who the US would have sought in revenge for 9/11 if it had been 15 Iranians?

Venezuela?

 

Are you going to argue that Biden's not mentally unfit for office? Or are you implying that Saudi leaders are just as mentally unfit?  What is your point exactly?

[eyeball]

Just now, suds said:

Are you going to argue that Biden's not mentally unfit for office? Or are you implying that Saudi leaders are just as mentally unfit?  What is your point exactly?

That the nation Saudi Arabia is an unfit ally. One of the least fit in fact.

Put it this way - an alliance of nations is no better than its worst member. It reduces everyone to the same level.

[suds]

4 minutes ago, eyeball said:

That the nation Saudi Arabia is an unfit ally. One of the least fit in fact.

Put it this way - an alliance of nations is no better than its worst member. It reduces everyone to the same level.

It's the Saudis who are rejecting Biden's calls and not the other way around. I'm not particularly fond of either the Saudis funding of radical Islam in other countries, or Iran's attempt to get nukes and start a Mideast nuclear arms race. Great leader's responsibilities lie in doing what's best for the country they serve. Jeopardizing the USD as the world's reserve currency is a bad move in my opinion.

[eyeball]

31 minutes ago, suds said:

It's the Saudis who are rejecting Biden's calls and not the other way around.

And the US is still allied with them. Must be the US that's unfit.

[Nationalist]

On 3/19/2022 at 5:29 PM, eyeball said:

And the US is still allied with them. Must be the US that's unfit.

Right now...it is.

Under the Biden faux pas, the USD, which was sick to begin with, is hardly worth wiping your ass with now. We pretend there's stability, but its all a lie that we all tell ourselves. The fact is, Saudi can easily trade their resources for any currency they want. If they choose to use the Chinese currency, they can. That would greatly hurt the USD and probably begin the exodus from the USD on an international level.

Should that happen, there'd be a run on US debt that would quickly destroy the US economy completely. IMO, its Biden's unequivocal incompetence that's forcing the international community to question the strength of the USD.

The fool must be dispensed with.

Edited March 23, 2022 by Nationalist

[eyeball]

2 hours ago, Nationalist said:

Right now...it is.

IMO, its Biden's unequivocal incompetence that's forcing the international community to question the strength of the USD.

The fool must be dispensed with. 

You figure the international community shares your opinion that everything is Biden's fault?  You just don't get it that it's this western distraction and obsession with uber-partisanship that makes it so easy for characters like Putin to punk America.

[Nationalist]

18 hours ago, eyeball said:

You figure the international community shares your opinion that everything is Biden's fault?  You just don't get it that it's this western distraction and obsession with uber-partisanship that makes it so easy for characters like Putin to punk America.

Yes...I do. Its obvious. 

[eyeball]

5 hours ago, Nationalist said:

Yes...I do. Its obvious. 

So its actually the entire international right wing of the planet that's been punked.

Interesting given Putin is such a right winger.

[Nationalist]

And left wing. Everyone. Fucked over by their own stupidity, greed and fear.

I'd have thought you'd have sorta seen that already...sorry...

Edited March 24, 2022 by Nationalist

[ironstone]

And now..food shortages?

BREAKING: Biden says 'food shortages are gonna be real' | The Post Millennial

[eyeball]

10 hours ago, Nationalist said:

And left wing.

I don't see anyone on the left around here apologizing for Putin do you?  Xi and Kim are about as far from the left wing as it gets as evidenced by the utter lack of any progressivism whatsoever under their thumbs.

I think it's entirely true to say that the Ukraine is fighting for all of us in the war between liberalism and authoritarianism - which is to say billions of ordinary people and a small handful of assholes. 

Edited March 25, 2022 by eyeball

[eyeball]

3 hours ago, ironstone said:

And now..food shortages?

BREAKING: Biden says 'food shortages are gonna be real' | The Post Millennial

 

• Overall, we rate The Post Millennial Right Biased based on story selection that favors the right and Mixed in reporting due to publishing unsubstantiated claims and having several failed fact checks.

That said, why should anyone be surprised at the prospect of famines in an over-populated/exploited planet and human civilization that looks more and more like the Tower of Babel?

I mean at least the poor saps in Babel could blame their downfall on a sociopathic deity, but us?

There's no excuse for the  willful determination of people to speak with such mealy mouths and listen with even mealier ears in the avoidance of facts or an accurate human narrative that we can all depend on.

[WestCanMan]

On 3/24/2022 at 8:32 PM, eyeball said:

 

• Overall, we rate The Post Millennial Right Biased based on story selection that favors the right and Mixed in reporting due to publishing unsubstantiated claims and having several failed fact checks.

That said, why should anyone be surprised at the prospect of famines in an over-populated/exploited planet and human civilization that looks more and more like the Tower of Babel?

I mean at least the poor saps in Babel could blame their downfall on a sociopathic deity, but us?

There's no excuse for the  willful determination of people to speak with such mealy mouths and listen with even mealier ears in the avoidance of facts or an accurate human narrative that we can all depend on.

1) This has nothing to do with Post Millenial Right Bias lol. It has to do with Biden's own words.

2) Yeah, the population of the world exploded between 2020 and 2022, right eyeball? ?

[WestCanMan]

On 3/24/2022 at 4:43 PM, ironstone said:

And now..food shortages?

BREAKING: Biden says 'food shortages are gonna be real' | The Post Millennial

They're always late to admitting everything. 

There was no inflation, there was no supply chain crisis, the supply chain crisis wasn't because of all the people sitting at home getting gov't cash, then inflation was just tiny, now inflation is just 6-7%, etc. 

Everyone that I talk to says that their business expenses are up by at least 20%.

Gas is up by 33% here. It was $1.45-1.55 not that long ago, now it's $1.95-$2.15. Meat is up huge, produce is up by a stupid amount, and it's gonna go even higher now that Russian wheat and fertilizer are off-limits.

This is what happens when you have a feckless POTUS and an idiot PM. 

[eyeball]

1 hour ago, WestCanMan said:

1) This has nothing to do with Post Millenial Right Bias lol. It has to do with Biden's own words.

That's right. Posting it in a thread that's dedicated to holding Biden responsible for everything that's turned to shit is biased. 

 

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2) Yeah, the population of the world exploded between 2020 and 2022, right eyeball? ?

No, but the things that exacerbate food shortages that lead to famine certainly did.

Also all Biden' fault I'm assuming. 

[WestCanMan]

25 minutes ago, eyeball said:

That's right. Posting it in a thread that's dedicated to holding Biden responsible for everything that's turned to shit is biased. 

 

No, but the things that exacerbate food shortages that lead to famine certainly did.

Also all Biden' fault I'm assuming. 

Face it, I can predict things in advance that you can't even understand with the benefit of hindsight. 

[Nationalist]

On 3/24/2022 at 11:17 PM, eyeball said:

I don't see anyone on the left around here apologizing for Putin do you?  Xi and Kim are about as far from the left wing as it gets as evidenced by the utter lack of any progressivism whatsoever under their thumbs.

I think it's entirely true to say that the Ukraine is fighting for all of us in the war between liberalism and authoritarianism - which is to say billions of ordinary people and a small handful of assholes. 

Xi is the leader of a COMMUNIST regime. So is Kim. Putin...I'm not really sure what he is politically.

"Progressivism" is a disease of the Western nations. Europe and North America. The rest of the world think we're insane with this "progressive" horse kaka.

You grossly over simplify what's going on in Ukraine. Fact is, Zelinsky is about as much of an authoritarian as is Putin. Don't believe me? Tell me...how many opposition parties are there in Ukraine?

[WestCanMan]

3 hours ago, Nationalist said:

Xi is the leader of a COMMUNIST regime. So is Kim. Putin...I'm not really sure what he is politically.

"Progressivism" is a disease of the Western nations. Europe and North America. The rest of the world think we're insane with this "progressive" horse kaka.

You grossly over simplify what's going on in Ukraine. Fact is, Zelinsky is about as much of an authoritarian as is Putin. Don't believe me? Tell me...how many opposition parties are there in Ukraine?

Americans were even busted for meddling in the presidential election to help get Zelenski elected. 

Here's Victoria Nuland, Deputy Sec of State for Ukraine, talking to another US Gov't flunkie about getting Klitschko to back out of the election so that the US could get their guy (Zelenski) in there.