On the surface, I agree with you, but I did compress my comment far too much.
The US Dollar is not a good representation of Energy, it is a Fiat currency … it is a concept created, out of thin air, to price the denomination of Oil. Basically, the creation of the USD is hardly connected to Oil.
The Petro-Dollar as it is today is primarily based on international settlement of Oil — ‘you must use USD to buy/sell Oil, otherwise we will bring our military might onto you Nation.’
Gold was a good representation in that it actually took work to mine Gold, etc. However, the nature of Gold makes it a poor medium of settlement across long distances, especially in todays modern world.
We will have to see how things go with this entire conflict.
Energy is the new currency.
New? We’ve been on the petro dollar since the early 70’s, remember when we went totally off gold?
On the surface, I agree with you, but I did compress my comment far too much.
The US Dollar is not a good representation of Energy, it is a Fiat currency … it is a concept created, out of thin air, to price the denomination of Oil. Basically, the creation of the USD is hardly connected to Oil.
The Petro-Dollar as it is today is primarily based on international settlement of Oil — ‘you must use USD to buy/sell Oil, otherwise we will bring our military might onto you Nation.’
Gold was a good representation in that it actually took work to mine Gold, etc. However, the nature of Gold makes it a poor medium of settlement across long distances, especially in todays modern world.
We will have to see how things go with this entire conflict.
You are very correct sir!