4 ms·
You do know the US is now the world's #1 oil producer (and food producer).
by medium_burrito 6y ago
You do know the US is now the world's #1 oil producer (and food producer).
- agsamek 6y agoPetro-dollar is not about US dependences on oil producers. It is the other way. It is about forcing all countries to using dollars to buy oil. This allows the US to sell dollars and charge for this in various ways. On the other hand it requires the US to keep military control of oil logistics. The advatege for allied oil producers it that they can trade oil more easily. You know - transferring billions of dollars over international sea in the form of oil requires a lot of support from military just to make it happen.
- spiralx 6y agoThe "petrodollar" is just an urban myth verging on a conspiracy theory when talking about Iraq, the fact that oil is priced in dollars (and it isn't always) doesn't mean countries need to have dollars to buy oil, it's just a convenient and stable unit of account. You can use Euros to buy oil priced in dollars in the same way you can use Bitcoin to buy drugs priced in dollars.