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Politics : Formerly About Advanced Micro Devices
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To: RetiredNow who wrote (1036714)11/3/2017 3:40:21 PM
From: zzpat  Read Replies (1) of 1573939
 
We have to be careful what we want because what we want can sometimes cause enormous damage to the future of our country. Pulling away from oil in the Middle East sounds like a nice idea but it will devastate the US economy. The US was the largest importer of oil for many decades. Nixon created a deal with Saudi Arabia to use the US dollar as the currency of oil. Prior to that, the dollar was based on gold. It became the global currency in 1944 after WW2. That agreement created the petrodollar - the dollar based on the price of oil.

What happens when China imports more oil than the US and wants to use the yuan instead of the dollar to buy its oil? The US dollar collapses. Our currency is based on oil and without oil all those dollars held by every nation on the planet flood the market and when that happens the dollar collapses.

Is that happening right now? Yes. We're seeing China flex its muscles as it asks Saudi Arabia to use the yuan instead of the dollar. It is by far the biggest story of my lifetime.
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