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So an obvious question is, what happens as the oil behind petrodollars loses value as renewable energy takes over? This transition is already happening. The d
by rapjr9 5y ago
So an obvious question is, what happens as the oil behind petrodollars loses value as renewable energy takes over? This transition is already happening. The difficulty for countries of repaying debt in dollars and the war in Ukraine has exposed how petrodollars take away economic autonomy which is yet another incentive to move away from petrodollars. One consequence is that the USA will gradually (or quickly) lose the ability to sanction other countries. Another is that Saudi Arabia and other petro-states (Russia, Mexico, Venezuela) will lose power and income. Countries that used to borrow in dollars will borrow in some other currency or at least a wider range of currencies (which may or may not increase their stability). What are the other likely changes? How might this all eventually rearrange and sort itself out?