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And what are all the oil barons doing with their USD? If I buy US dollars so I can go buy oil, and then the oil producers go and exchange those dollars in to o
by nly 6y ago
And what are all the oil barons doing with their USD?
If I buy US dollars so I can go buy oil, and then the oil producers go and exchange those dollars in to other currencies, then the whole process is neutral for the greenback.
- selectodude 6y agoThey buy US treasuries and/or foreign exports. USD is helpful because 1. most of the world will accept USD directly or 2. conversion into another currency is extremely cheap and simple, even at large values, due to the unwavering worldwide demand for USD.
- fmajid 6y agoNixon cut a deal with King Faisal of Saudi Arabia in the 70s (after the oil embargo). The US would protect the Al-Saud kleptocracy, and in exchange the Saudis would invest their money in America.
- blaser-waffle 6y agoApropos of Saudi, one of the big BTC spikes was correlated to be when MBS took over and started cracking down on rivals and dissidents. Whole lotta folks turned to BTC to get cash out of the country and then GTFO. Similar trends with Xi's anti-corruption campaign in China.