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In most of the analyses I've read, the petrodollar has been of huge benefit to the US - effectively propping it up in the face of massive QE efforts and (in the

by jddj 7y ago

In most of the analyses I've read, the petrodollar has been of huge benefit to the US - effectively propping it up in the face of massive QE efforts and (in theory) allowing much more to be printed to service debts than would otherwise be sustainable. I mean, there must be some reason that trading or threatening to trade oil in Euros is practically asking for some kind of forced regime change.

treis 7y ago
>In most of the analyses I've read, the petrodollar has been of huge benefit to the US - effectively propping it up in the face of massive QE efforts and (in theory) allowing much more to be printed to service debts than would otherwise be sustainable. It's not as simplistic as good or bad for the country. If have a good job and you want to buy a lot of imports then it's good. If you want to be a factory worker it's bad because what you make is more expensive for other companies to buy.
- jddj 7y ago
  Sure, a weak currency is better for basic exports. It's widely accepted that Germany prefers a weaker euro to a stronger mark. We can look at the US's behaviour, though, to determine whether they think it's valuable to them or not. It's had every year since the petrodollar was established post WW2 to push the world towards using the Euro and instead has fiercely defended it.
  - treis 7y ago
    > they think it's valuable to them "They" in this case are the elected politicians that are in the "good jobs that buy imports" category and/or dependent on that category for political support.
lostapathy 7y ago
It’s not that simple. Being the reserve currency also puts weird pressures on the US economy when other economies have issues. The total effect of which is probably not well understood.
igravious 7y ago
“ COMMISSION RECOMMENDATION of 5.12.2018 on the international role of the euro in the field of energy ” https://ec.europa.eu/info/sites/info/files/c-2018-8111-recommendation_en.pdf https://ec.europa.eu/info/sites/info/files/c-2018-8111-recom... Does that mean the EU is going to be forcibly regime changed?

by jddj 7y ago

treis 7y ago

>In most of the analyses I've read, the petrodollar has been of huge benefit to the US - effectively propping it up in the face of massive QE efforts and (in theory) allowing much more to be printed to service debts than would otherwise be sustainable. It's not as simplistic as good or bad for the country. If have a good job and you want to buy a lot of imports then it's good. If you want to be a factory worker it's bad because what you make is more expensive for other companies to buy.

jddj 7y ago
Sure, a weak currency is better for basic exports. It's widely accepted that Germany prefers a weaker euro to a stronger mark. We can look at the US's behaviour, though, to determine whether they think it's valuable to them or not. It's had every year since the petrodollar was established post WW2 to push the world towards using the Euro and instead has fiercely defended it.
- treis 7y ago
  > they think it's valuable to them "They" in this case are the elected politicians that are in the "good jobs that buy imports" category and/or dependent on that category for political support.

lostapathy 7y ago

It’s not that simple. Being the reserve currency also puts weird pressures on the US economy when other economies have issues. The total effect of which is probably not well understood.

igravious 7y ago

“ COMMISSION RECOMMENDATION of 5.12.2018 on the international role of the euro in the field of energy ” https://ec.europa.eu/info/sites/info/files/c-2018-8111-recommendation_en.pdf https://ec.europa.eu/info/sites/info/files/c-2018-8111-recom... Does that mean the EU is going to be forcibly regime changed?