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> I, a foreign entity, have sold something to an american and now have 10 dollars and zero treasuries. Or you sold something to a non-American entity in a doll
by carbonguy 8mo ago
> I, a foreign entity, have sold something to an american and now have 10 dollars and zero treasuries.
Or you sold something to a non-American entity in a dollar-based market, eg. oil. The dollars do come from America to begin with, but once they get "out there" they work as a medium of exchange for whoever wants to use them for that purpose.
- direwolf20 8mo agoWhich is why the US historically bombed any country that sold oil for other currencies, but now china is negotiating the petroyuan and it's working.
- mayhemducks 8mo agoInteresting - The petroyuan was not on my radar at all. https://ipr.blogs.ie.edu/2025/06/27/geopolitics-of-oil-how-china-is-challenging-the-petrodollar-through-the-pedro-yuan/ https://ipr.blogs.ie.edu/2025/06/27/geopolitics-of-oil-how-c...: This article explores case studies such as Russia, Iran, and Venezuela, illustrating how the petroyuan has been implemented to bypass sanctions and reduce dependence on US financial systems.
- direwolf20 8mo agoIt's ironic, isn't it? After going to war so many times to protect the petrodollar, the US deleted the petrodollar itself.
- timtas 8mo agoThe petroyuan faces a big problem, which is lack of trust in the CCP to preserve its value. As mentioned, there’s also mounting dissatisfaction and distrust in the petrodollar, but the devil you know…