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If semiconductors are “the new oil,” what does that mean for the petrodollar?
- LatteLazy 4y agoThe "Petro dollar" is a thing because the US sells products petroleum producing states want to buy (and does so in USD). Those are defence kits and investments (financial services). So the US can just sell the same products to semiconductor producing countries. Taiwan seem like a good candidate to buy weapons for a start...
- anm89 4y agoWow, they are really torturing that metaphor.
- selfmodruntime 4y agoAs long as oil is needed to manufacture the plastics needed for assembly and the circuitry boards in which semiconductors ultimately live, I'd wager that the petrodollar is incredibly safe.
- nine_zeros 4y agoAs long as semiconductors still need to be shipped using oil, semiconductors will be lower in the pecking order of commodities that need "security".
- entropicgravity 4y agoElectric motors and batteries are the technologies that will put paid to the petrodollar. Semiconductors are just the garnish on top.
- mikewarot 4y agoBatteries don't have the storage density as liquid hydrocarbon fuels, and never will. They also can't serve as feedstocks for fertilizers, plastics, or other chemistry. Eventually, we'll use renewable power to create liquid fuels from air and water, recycling the carbon.