Name ONE OTC Swap contract or regulated futures contract trading anywhere in the world WITH SEGMENT LEADING VOLUME that isn’t denominated in US Dollars. The Brent ICE contract, the Singapore distillates contracts, the DME Oman contract... Crickets...
You can’t. There’s a reason for that and it’s not your facile reason. In 2019, the idea of a petrodollar is a fantasy. Middle Eastern Countries and Nordic oil producers have created Sovereign Wealth Funds. And Russia is a bonafide Kleptocracy whose power elite washes everything for Dollars and Euro.
Look at the traded volumes for the Chinese Exchange Yuan-denominated Oil contract - it’s abysmal. The CCP has a huge thirty year old apparatus devoted to pegging the Yuan low against the dollar. China wants the Yuan to be a world class reserve currency - but at the same time they unilaterally devalue their currency and refuse to allow it to float and be traded openly on world markets.
What’s left for a world reserve currency? US Dollar and the Euro. And Britain and the Eastern European Countries are making the Euro look a bit shaky. The Euro is essentially a shaky diluted Deutsche Mark. The ECB can’t exist without the Bundesbank - and the Bundesbank would love to be rid of their Eastern and Mediterranean kin.
LOL. You don't seem to understand what I was saying. Russia, Venezuela, Iran, China, India etc are free to conduct bilateral trade in oil and other goods & services in a currency other than the USD. It's a matter of their bilateral agreement, their sovereign right and choice. What's so difficult to grasp???
For example, Iran has exported oil to India & China in exchange for gold, rupee, RMB, and even goods (including industrial, consumer, agricultural products). China is the world's largest oil importer. If China decides to minimize the use of USD, all it needs is a bilateral agreement with its suppliers. If Russia, Iran, Venezuela etc are willing to go along, then they have a deal. The Establishment may try force the puppets in the US government to invade or bomb Russia, China, Iran & Venezuela etc under false pretexts like the case of Iraq & Libya. But until it succeeds in doing so, the Petrodollar status will continue to weaken.
Your entire post is a non sequitur. By the way, the biggest Kleptocracy in the world is the US Establishment/government. Russia, India, China etc are distant also-runs in that department. You have obviously been swallowing pure, unadulterated propaganda from the mainstream media for way too long.
I don't get that.
I thought the USD was strong because so many people want in on US commerce, and have to do their business in USD, because by that metric are forced to exchange their currency to the USD. I thought the USD was strong because our economy is strong.
What is this "gunpoint" stuff? That sounds like conspiracy theorists?
If another nation doesn't want to use it, then they have the choice to not use it.
You thought wrong.
You contradict yourself completely in two successive posts. You’d have us believe that the US forces other Sovereign Countries to deal in Dollars at the threat of military force - and then you describe bilateral trade without Dollars. And in 2019 there is no petrodollar cabal.
“The power of USD comes from having (or forcing at gun point) many other countries to use it.”
Nobody was ‘forcing at gunpoint’ your buddies the Russian kleptocrats from acquiring hundreds of billions of US dollars in cash from Danske Bank. Seems like they prefer them.
Absolutely No Contradiction There.
Try to figure this one out on your own.
(Note: this reply is to a later post below, not above - a little experiment out of curiosity.)
