Why is it so important the oil trade be done in US dollars...

Why is it so important the oil trade be done in US dollars? How does the petrodollar figure into the strength of the US dollar?

Other urls found in this thread:

investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp
uk.reuters.com/article/businessproind-us-libya-gaddafi-oil-idUKTRE50K61F20090121
twitter.com/NSFWRedditGif

BEcause america is number one. Its that simple, nigger.

can't post nudity on this board m8

it creates demand for the dollar

Google it

Post more hot gooks.

stable currencies are preferred over unstable currencies

example: mexico "revalued" the peso in 1993
if you had 1,000 pesos in your pocket on december 31 1992, on january 1 1993 you now had 100 pesos.

nobody wants to trade a volatile commodity in a volatile currency.

the US Dollar is the most stable currency on earth, and has been so for the last century.

moving to asia lads

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

tldr : It create a fake demand for US dolar forein country have to acquire US currency at a premium in order to complete transactions between them that have nothing to do with Ameritards but the fact that they probably have been bombed into submission by them at some point.

> canadian assblasted because nobody trades in maple syrup

In fact it is "done" in multiple currencies, this is a 10 year old myth.

>Investopedia

Euros are convinced that it's a conspiracy to keep the USA in power. They unironically believe that if the oil is traded in another currency the USA will collapse.

See:
enjoy those price spikes mate :^)

Even when stripped completely naked, the Asian woman possesses an air of grace and dignity that is just not there in the typical western slut.

You could take three (((white women))) in the exact same post and they would look like the trashy whores they are. But these stunning oriental goddesses have a pure beauty that cannot be described. Grace is the closest word for it. You can sense her commitment to honor and tradition even when she is in the nude.

Truly, (((white women))) cannot compare

everytime a dollar changes hands it's power increases.

Didn't even read the OP to be honest, mate. I just have yellow fever.

The dollar is pretty universally accepted, and there are enough dollars out in circulation to support the massive amounts of money involved. Could probably use the yuan now, but it's pegged to the dollar so you gain nothing.

enjoy those "women"

watch me, pussy

Would munch on that hairy bush desu.

MAGA

I don't think the girls in OP are ladyboys tbqh. Call it a hunch.

>dark labia

Gonna vomit

look up "currency of settlement". Among other terms in foreign trade, the contracts have to specify a settlement currency acceptable to both parties. (You wouldn't want your US exports paid for with Russian rubels [sp?] right?) So it has to be a currency available everywhere and accepted everywhere. This makes a few currencies 'top dog' for trade.

A tube that long would cause asphyxiation.
fucking fake shit tier fetishists piss me off.

You're probably a skinny pathetic betafag anyway.
That's basically guaranteed if you're a limey though.

>when you are so weak even the t*rks btfo you

But the yuan is pegged to gold. If you're just going to talk out of your ass you should literally and unironically just kill yourself immediately, faggot

Please explain.

Supply and demand works for the currency market as well OP.

The longer the tube the harder it is to suck in the air. At a certain length your lungs just aren't strong enough.

Kissinger made the deal so that we could get rid of the gold backing while still having a currency that was stable / not worthless. Gold backing became a problem because foreign holders started trading in their US dollars for gold at a time when we needed the funds for the Vietnam war, so Nixon killed it, and Kissinger's deal with the Saudis is what effectively replaced it. We don't literally back our dollars with oil, but since everyone in the developed world needs endless amounts of oil to stay functional for the foreseeable future it effectively makes oil the standard for our otherwise fiat / standardless currency.

I might be wrong, but didn't the dollar replace gold as reserve currency, and isn't your central bank printing them likes there is no tomorrow.
You're probably right about euros being even worse.

Woah woah why are you so upset? I just like asian girls is all.

Is this one of those "I bet you couldn't handle a real woman like me" things you see from yank hambeasts on tumblr?

those are attractive women, indeed

God, it's like a festering wound between her legs. Why are real vaginas so disgusting?

How does that work though? Are we talking an open tube too or does it have to be connected to somebody's anus for this to be true? I vaguely remember breathing through a garden hose when I was a kid, although I could be making this up.

that makes sense, so basically it's not really important that oil trade "be" done in dollars, it just is for the reasons you said

Dudes just a fucking dolt. A tube of that length and diameter youre just rebreathing your own air and would suffocate. Nothing about lung strength here.

WHY EVEN POST WEABOO WHY NOT AN HERO?

ugly bitch.

is she pre or post op?

because after bretton woods collapsed everyone was holding on to tons of amounts of US dollars and it was easier to trade commodities with a huge supply of currency everyone was already holding on to.

pathetic

The way I see it the US has been the de-facto reserve currency since WWII. Primarily because we control the global trade network (both as the largest consumers and by having the only global navy). The only competitor for our reserve status was the Euro but you guys fucked up with the debt crisis and you don't have any sort of military either.

You need to dig deeper, son.

I'll take that as a yes then.

this.
Lungs only have about 12lbs of negative pressure.

why would I even bother with economics if I have a big military

Smart anons, but you're missing one point: petrodollar recycling.
When gulf states sell oil they get petrodollars. They use those petrodollars to buy USGOV bonds in special auctions. In this way their bond holdings are massive.

More than creating dollar demand, this effectively takes dollars out of circulation. As gulf states pump dollars into bonds the government is basically able to fund itself for free.

When gulf states love the government they buy shit tons of bonds. When they don't they sell. Essentially a large part of the modern money system is owned by the gulf states.

I like your taste in women

I don't know about you fellas but I'd megumi their kudo

...

But you know what happens when you don't use the petrodollar.

>We came, he saw, he died :)

Help us

Fuck off newfag, This is a GREEN board not BLUE.

>He thinks the video is real and not Turkish propaganda.

Turks are so pathetic.

MODS MODS MODS

LOOK INTO MY EYESS AND YOU WILL FIND

because else youd have to become accountable for your debt

Less important for Libya.
More important: Gaddafi nationalizing oilfields owned by dem party elites.

It tends to lock out the russians.

I'm sure trump will take rubels when elected.

lol bruh at least slants aren't fat.

BLUE BOARD

you might be right
> tl;dr gadafi looking into nationalizing oil fields because of low oil price
uk.reuters.com/article/businessproind-us-libya-gaddafi-oil-idUKTRE50K61F20090121

...

gross

I want to creampie the middle one's asshole

This is the heart of the issue. The dollar gets to be the world's reserve currency AND cheap debt. It's a great scheme if we were going to pay down our national debt as interest rates would be nothing.

>
quads nice

Of course I'm right.
The same people that owned the oil in Libya pulled off a secret Teapot Dome back in 1997.

And what would happen if lets say one government wanted to make transactions in gold instead of petrodollars?

fuck you and everyone who looks like you

Not much as long as it's not a GCC member.
Iran sells oil in Euros. Russia and China are doing something similar.

dont see any exhaust or one way valves. The lungs only have so much capacity.
That long of a tube, he breathes out carbon monoxide, and it never leaves the tube, he then breathes in the old air causing him to suffocate.

No,
the guy is sitting on an oil field on his own,
we are many more, so fuck,him, we just steal his oil field

>An oilfield of his own
Libya has lots of oilfields in various parts of the country.

Hardly. When I first looked at them, I pegged them as prissy sluts.

The demand for oil keeps up the demand for dollars. That pretty much let us keep printing money like a banana republic. When everyone says "nah, fuck that, we're trading in something different, take your dollars back America", our currency will collapse, like post war Germany or Zimbabwe

which is why they are the "Axis of Evil" ooooo spooky

>tfw my gf could look like this if she'd lose weight. Feelsbadman.jpg

beautiful. maor of this set my dude

Agreed, Investopedia is bullshit and just flat-out wrong 99% of the time. It's like getting your dictionary definitions from UrbanDictionary, it's just a bad idea and no professionals in the industry support it.

>Euros are convinced that it's a conspiracy to keep the USA in power. They unironically believe that if the oil is traded in another currency the USA will collapse.
They're not completely wrong, the petrodollar is one of the things that increases the strength of the US dollar. It's not the only thing, but it's a factor.

>loses 93% of value
>stable

Dollar is least instable maybe