3 ms·

China wants oil. Wants to pay in Chinese Yuan. Venezuela has oil. Wants to sell them in Chinese Yuan, because America bad. America ensures the world's waters

China wants oil. Wants to pay in Chinese Yuan. Venezuela has oil. Wants to sell them in Chinese Yuan, because America bad. America ensures the world's waters stay safe for commerce as long as all countries continue to do business in dollars. When they don't, America is forced to remind them. China in the meantime continues to diversify away from oil and doesn't mind taking risks that could cut supply. Venezuela's leadership has, for reasons well understood, fewer options. America's number one export, as is every global empire's number one export is its currency. It's a gift and a curse. Saddam's days were numbered when he began selling oil in Euros. Gaddafi's days were numbered when he tried to sell oil in "gold dinars".

JumpCrisscross 10mo ago
> as all countries continue to do business in dollars This is nonsense. We would still be going after Venezuela even if they did business in physical dollars the way Iran did for years.
- givemeethekeys 10mo ago
  Rarely are the reasons singular, but I do think that stopping trade (and not just oil trade) in USD is the biggest reason.
  - JumpCrisscross 10mo ago
    > I do think that stopping trade in USD is the biggest reason This hasn't been a thing since the 1970s. Oil is priced and settled in multiple currencies today, including out of New York and London. America is a net oil exporter. And global oil trading volumes are insignificant compared with other dollar uses. There are a lot of stupid reasons we're going to war with Venezuela. None of them have to do with dollar hegemony.
    - lossolo 10mo ago
      Thats not true. ~85%+ of global oil trade is in USD. https://www.ecb.europa.eu/pub/pdf/ire/focus/ecb.irebox201906_03~3e5a7878dd.en.pdf https://www.ecb.europa.eu/pub/pdf/ire/focus/ecb.irebox201906...
      - JumpCrisscross 10mo ago
        > Thats not true. ~85%+ of global oil trade is in USD What part isn't true? I never said most oil isn't traded in dollars. Just that it's priced and traded in currencies other than dollars on commodities desks in the United States. In 2019, over 60% of all global trade was dollar denominated [1]. (58% today.) That's $27tn of dollar-denominated export invoices. Globally, oil exports are $1.3tn [2]. The petrodollar hypothesis held in the 1970s. It was becoming irrelevant with the 1980s' trade liberalisation. By 2019 [3] it had become totally irrelevant, both as a rational motivation and as a non-conspiratorial geopolitical talking point. [1] https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/ https://www.atlanticcouncil.org/programs/geoeconomics-center... [2] https://www.worldstopexports.com/worlds-top-oil-exports-country/#:~:text=Oil%20rig,increase%20compared https://www.worldstopexports.com/worlds-top-oil-exports-coun... [3] https://oilprice.com/Energy/Crude-Oil/The-US-Just-Became-A-Net-Oil-Exporter-For-The-First-Time-Ever.html#:~:text=The%20United,began%20in https://oilprice.com/Energy/Crude-Oil/The-US-Just-Became-A-N...

JumpCrisscross 10mo ago

> as all countries continue to do business in dollars This is nonsense. We would still be going after Venezuela even if they did business in physical dollars the way Iran did for years.

givemeethekeys 10mo ago
Rarely are the reasons singular, but I do think that stopping trade (and not just oil trade) in USD is the biggest reason.
- JumpCrisscross 10mo ago
  > I do think that stopping trade in USD is the biggest reason This hasn't been a thing since the 1970s. Oil is priced and settled in multiple currencies today, including out of New York and London. America is a net oil exporter. And global oil trading volumes are insignificant compared with other dollar uses. There are a lot of stupid reasons we're going to war with Venezuela. None of them have to do with dollar hegemony.
  - lossolo 10mo ago
    Thats not true. ~85%+ of global oil trade is in USD. https://www.ecb.europa.eu/pub/pdf/ire/focus/ecb.irebox201906_03~3e5a7878dd.en.pdf https://www.ecb.europa.eu/pub/pdf/ire/focus/ecb.irebox201906...
    - JumpCrisscross 10mo ago
      > Thats not true. ~85%+ of global oil trade is in USD What part isn't true? I never said most oil isn't traded in dollars. Just that it's priced and traded in currencies other than dollars on commodities desks in the United States. In 2019, over 60% of all global trade was dollar denominated [1]. (58% today.) That's $27tn of dollar-denominated export invoices. Globally, oil exports are $1.3tn [2]. The petrodollar hypothesis held in the 1970s. It was becoming irrelevant with the 1980s' trade liberalisation. By 2019 [3] it had become totally irrelevant, both as a rational motivation and as a non-conspiratorial geopolitical talking point. [1] https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/ https://www.atlanticcouncil.org/programs/geoeconomics-center... [2] https://www.worldstopexports.com/worlds-top-oil-exports-country/#:~:text=Oil%20rig,increase%20compared https://www.worldstopexports.com/worlds-top-oil-exports-coun... [3] https://oilprice.com/Energy/Crude-Oil/The-US-Just-Became-A-Net-Oil-Exporter-For-The-First-Time-Ever.html#:~:text=The%20United,began%20in https://oilprice.com/Energy/Crude-Oil/The-US-Just-Became-A-N...