5 ms·
I think the following article covers this problem much better: https://www.lynalden.com/fraying-petrodollar-system/ https://www.lynalden.com/fraying-petrodollar
by fuoqi 6y ago
I think the following article covers this problem much better: https://www.lynalden.com/fraying-petrodollar-system/ https://www.lynalden.com/fraying-petrodollar-system/
- vsskanth 6y agoExcellent article. Thanks for sharing.
- victor106 6y agoVery good article. From the article:- “ At the heart of all of these systems would be the fact that the dollar would no longer be the world’s only currency for energy pricing. The euro, yuan, and perhaps a few others, or a neutral reserve currency, could be used in trade agreements to buy oil, gas, and various commodities, which unlocks the prospect for more global trade and reserve holdings in those currencies.” While this makes total sense the fundamental problem with this is a consensus mechanism to control liquidity in a localized crisis. If you have one currency it’s easier for that country to make a decision rather than convince all the other countries.
- Pet_Ant 6y agoI wonder why people don’t use something “a multi-buck”. A multi-buck would be something like $1 USD + £1 + €1 + ¥1000. That would isolate you more from volatility. It’s useful for European companies if the dollar goes yup it minimizes the effect. Likewise for American companies. Guaranteed some movement but it seems like fairer than doing deals in a single currency.
- xtacy 6y agoA multi-buck is essentially an SDR / Special Drawing Rights: https://www.investopedia.com/terms/s/sdr.asp https://www.investopedia.com/terms/s/sdr.asp
- biolurker1 6y agoYou are describing Facebook diem