US monopoly money has value mainly because of petro dollar.
A currency’s value reflects confidence in the economy issuing it. The dollar is backed implicitly by the size, productivity, and stability of the US economy.
No, the currency has value only in as so far as you can buy stuff you need with it.
Lets say you're Germany, US imports make up only 6.9% of total import value(Netherlands is 7.1% and China 12.5% on top) closely followed by Poland with 5.9%.
Take most countries in Europe, US imports are a rather small very modest portion.
So it doesn't make that much sense that US dollar would be particularly valuable.
After all - you really don't actually even buy that much stuff from US, thus the need for the US dollar isn't particularly large, and why would it be?
On the other hand, if you want to buy oil however, you need the dollar.
That is what makes the dollar valuable.
Now if you can buy oil from Iran, Russia or whatever in some other currencies, why would you need the stinking dollar?
I mean, you do import some US goods, but not that much really.
Why would you have confidence in an economy that regularly has insane trade deficit (1 trillion now)?
Once the petrodollar goes, thing will go tits up. And it will, because there's only 60years of oil left in the global oil reserves in the tank.
I once thought that this would be true, but wars are fought with oil burning machinery. And so countries with oil will always be able to play bully. A country with strong access to oil also has the most important resource in war. Batteries are simply less dense energy storage.
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US monopoly money has value mainly because of petro dollar.
Once that wraps up, US money will be not much more than toiletpaper.
And that is wrapping up because world has like ~60years of oil left at current consumption rates.
A currency’s value reflects confidence in the economy issuing it. The dollar is backed implicitly by the size, productivity, and stability of the US economy.
No, the currency has value only in as so far as you can buy stuff you need with it.
Lets say you're Germany, US imports make up only 6.9% of total import value(Netherlands is 7.1% and China 12.5% on top) closely followed by Poland with 5.9%.
Take most countries in Europe, US imports are a rather small very modest portion.
So it doesn't make that much sense that US dollar would be particularly valuable.
After all - you really don't actually even buy that much stuff from US, thus the need for the US dollar isn't particularly large, and why would it be?
On the other hand, if you want to buy oil however, you need the dollar. That is what makes the dollar valuable.
Now if you can buy oil from Iran, Russia or whatever in some other currencies, why would you need the stinking dollar?
I mean, you do import some US goods, but not that much really.
Why would you have confidence in an economy that regularly has insane trade deficit (1 trillion now)?
Once the petrodollar goes, thing will go tits up. And it will, because there's only 60years of oil left in the global oil reserves in the tank.
As the world moves over to electricity instead of fossil fuels, the petrodollar/yuan isn't going to matter as much anymore.
I once thought that this would be true, but wars are fought with oil burning machinery. And so countries with oil will always be able to play bully. A country with strong access to oil also has the most important resource in war. Batteries are simply less dense energy storage.
Wars are not always going to be fought with oil burning machinery. China, along with everyone else, is working real hard on that.
I think you would be surprised, but yes, there will be a lot of battery tech on the field.