Pedrotollar

Can someone explain me petrodollar scheme and is it the real reason why are Saudi's blockading Qatar.

From what I've heard the actual reason for Syrian war was the fact that Assad tried to tie his currency to euro, not dollar. Is this true?

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wtf u bumped 2 times sage

Have a bump from me, croatbro.

Its pretty much keeping the dollar relevant and america in control.

You see the more a currency is in rotation the more valuable it becomes.

hence if you want to destroy america you simply stop using the dollar in trade. They go faster broke then the soviet union.

With the USA overspending its bugged by billions and the debt they amassed its the death sentence.

Gadaffi got rid of the petrodollar. It's basically the agreement that OPEC won't trade oil in anything but the USD and was established in the 1970s after the gold crash. In return, OPEC (ie the Saudis who run the show mostly) get US muscle in the ME.

Its quite simple my dear user. The "Petrodollar" system refers to a couple of basic facts, that, extrapolated forms much of our foreign policy.

You see, oil can only be traded in US Dollars. Whenever two countries want to trade oil between themselves, for instance Arabia shipping into Egypt, they have to convert their currencies into US Dollars.

This helps contribute to the stability of the Dollar on the world market. And given we have fiat money whose value is determined by wishes and fairy dust, this means our money in practice is based on the faith people have in Uncle Sam, which is propped up by our forcing everyone to sell black gold in it, at gunpoint.

I don't understand the full system, but I believe the takeaway is that if we didn't trade oil in dollars, the entire world financial system may crash under its own decadent weight.

After the collapse of the Bretton Woods gold standard in the early 1970s, the U.S. struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born, along with a paradigm 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 currency and through this status, the U.S. is able to enjoy persistent trade deficits, and become a global economic hegemony. The petrodollar system also provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling." However, before the effects of the petrodollars on the U.S. dollar can be examined, a brief history lesson is in order. (For more, see: Global Trade And The Currency Market and US-Saudi Relations: A Complex Scenario.)

here more

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

gold never crased

Or the US could start backing its currency by manufacturing and metalls again, especially seeing how fossil fuels won't last long.

A petrodollar is defined as a US dollar that is received by an oil producing country in exchange for selling oil. The term petrodollar may also refer to a political agreement, the agreement that oil-producing countries may only sell oil in exchange for american dollars. This political agreement was first negotiated by the United States with Saudi Arabia during the Nixon administration, and later spread through other oil-producing countries of the Middle-East. There is substantial claims that many of the United State's foreign policies (and wars) are dictated to protect the immense wealth brought by the petrodollar agreement.

no only your system will crash, every other monitory stem will prevail as its not tied to the dollar.

America will loose and Saudis will loose big time.

Power influence and control over other nations.

fresh from Shlomo himself

Basically this

Every country needs a to have a bunch of $$$ in reserve to trade oil, so they have to buy $$$ from the USA

> blockading Qatar
Since nobody has addressed this yet:
Some have speculated that it is due to Qatar's recent decision to start harvesting a shared natural gas deposit (the biggest in the world?) shared with and spanning the border with Iran.

Saddam attempted oil for food.

he planned to, but never got the chance.

Thanks for the replies peeps, most of them are pretty informative

>Chinks and murrikans nuke each other
>Mudshits take over France and the UK, too stupid to figure out nukes

I, for one, welcome our new russian overlords.

>Pedrotollar
>rothchilds bow to this one toller named pedro

I thought you wrote "pedodollar" at first

Or, better yet, (((borrow))) at interest.
>pedodollar
Having some inkling of what the Saudi princes get up to in private, you're not wrong.

What would happen to oil-dependant non-Arab countries like Mexico, Russia, Venezuela if the petrodollar collapses?

>Oil/energy only sold in dollars
>All countries need energy
>All countries need dollars to buy energy
>Near-infinite demand for dollars
>Controller of dollar can do whatever the fuck they want
>Does

Well, you would have to find someone else to buy up 50% of your exports since we'd have no money.

There are a ton of youtube videos you can look up to explain the petrodollar. All oil is traded in dollars. US controls the dollar through the federal reserve.

It's basically the consequence of the dollar being fiat currency, and the supplier of said currency is filled with debt up to the ass.
So in order to keep the dollar relevant you have to back it's value in a commodity (like when you had real money backed by gold) in this case, oil.
>inb4 le fiat currency works goy
It clearly doesn't, you can't print your way out of debt and print confidence in your currency.

aka you go to china or the EU, but most likely to the china as they are the big winner if the dollar collapses.

aka post WW1 Germany.

IT'S NOT MONEY OR OIL!

IT NEVER WAS!

WE'RE BROKE!

ONLY JEWS AND HALLIBURTON MADE MONEY!

Using the terms "currency" and "rotation" in the same sentiment is incorrect. This conflates currency with money.

The petrodollar is a fiat currency. Subsequently, it's value is completely detached from the concept of rotation. Fiat currency values are controlled by other means and powers.

For example, the Federal Reserve in America is a strange bastard child of government and private interests. They create the value of the petrodollar - a currency - in conjunction with Middle-East stakeholders, like Saudi Arabia.

My man!
Sorry, did not mean to assume your gender.

Petrodollars are real.

The petrodollar conspiracy is mostly a meme.

The "petrodollar" is a real thing for countries like Saudi Arabia and Russia where energy exports make up the majority of their GDP, and thus are directly tied to the strength of their currency.
The United States doesn't fall into that category due to the extremely diverse nature of our economy which insulates us from the effects of energy prices.

Oh shit! Got us some economist (wannabes?) in the hizouse!

It all has to do with our fiat money. Fiat money isn't intrinsically bad, but if only one entity has control, then this entity can steal from anyone invested in the currency.

Fractional reserve banking, money printing, and interest rate fixing are all ways that you can basically steal pennies of value from everybody at the same time.

When you invest in the dollar, you don't get interest: you PAY interest passively. The dollar is a terrible investment. In a free market, every single person would ditch the dollar for a currency that holds value better, like bitcoin.

The reason we don't ditch the dollar is because there are actual laws saying that you MUST bank in dollars or pay a fine. It used to be there were tons of competing private reserve notes and if a bank cheated its customers, their customers could just take their banking elsewhere. But we have a federally enforced currency monopoly and this is impossible domestically.

At the international scale, however, we can't simply legislate that other countries use our crappy dollars, so normally a currency monopoly would be impossible. Other countries might stick to the gold standard or totally halt printing. Suddenly these other countries would stop trading with us because our money keeps inflating. Suddenly their economies would overtake ours completely.

The way we force the hand of other countries is by co-owning petrodollar monopoly. Everyone needs oil and they HAVE to use dollars if they want oil. America's oil monopoly allows us to "steal" from other countries without consequence.

But when we inevitably lose our oil monopoly, everyone will try to sell their dollars and nobody will be buying dollars. We will basically have to rely 100% on domestic industry. This is why Trump is so protectionist, even when he knows it's a bad idea otherwise. He's trying to make our economy as self sufficient as possible so we can survive the inevitable crash.