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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 th
by 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 agoSure, 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.