Oddbean

I've been concerned that foreign countries are moving away from the USD (I don't blame them. I would if I was them.) The US has been able to print money without massive inflation because the countries of the world hold USD in reserve for purchasing internationally (especially oil). Until the money moves, it doesn't decrease the purchasing power. Slowly nations, ie. BRICS, are moving to bilateral agreements and stopping using USD for trade. They will be needing less and less dollars for purchases and will therefore stop holding dollars. As the USD comes home and we have a huge amount of dollars chasing limited goods, inflation is going to sky rocket. We could even get inflation approaching Argentinia, Zimbabwe, and Weimar Republic levels. Losing the petrodolllar agreement with Saudi Arabia could be the straw that breaks the camel's back. I hope not, but things are definitely heading in the wrong direction. #grownostr #petrodollar #economy #inflation nostr:nevent1qyt8wumn8ghj7etyv4hzumn0wd68ytnvv9hxgtcppemhxue69uhkummn9ekx7mp0qywhwumn8ghj7mn0wd68ytnzd96xxmmfdejhytnnda3kjctv9uq3kamnwvaz7tmwdaehgu3wdaexzmn8v4cxjmrv9ejx2a30qyghwumn8ghj7mn0wd68ytnhd9hx2tcprpmhxue69uhhyetvv9ujucm4wfex2mn59en8j6f0qy2hwumn8ghj7un9d3shjtnyv9kh2uewd9hj7qghwaehxw309aex2mrp0yhxummnw3ezucnpdejz7qghwaehxw309aex2mrp0yh8qunfd4skctnwv46z7qgewaehxw309aex2mrp0yh8xmn0wf6zuum0vd5kzmp0qqs099yvg2dr3kplnkqf5rhkcna2j9zmjrdmkwscrxvp05h8attya5ch3sz3d

It looks like the details I had read are not entirely right. I believe this article describes the true situation. The trend is the same, but the move away from the dollar is less sudden and less formalized than described above. https://mises.org/mises-wire/saudi-arabia-drifts-away-washington-and-dollar

It's true there is no official petrodollar agreement. Just macroeconomic and geopolitical trends. SA worked with the US for protection and arms, but we are not as strong as we used to be and so the benefits are shifting. SA and OPEC don't need the dollar as much as they used to. BRICS is putting pressure on NATO to change the balance of trade in a gradual way. In my view it's not in their interest for the US to spiral out of control, but that doesn't mean it won't happen regardless.

I reached the same conclusion. There's no telling when it will happen, but we have already crossed the event horizon. Meanwhile the fed has not managed to reach the 2% CPI goal and can't tighten any further. They already triggered a bank collapse the same size (financially speaking) as 2008 and plugged the hole. They may have to reduce rates to keep the government solvent. (Inerest on the debt alone is nearing 1T annual) If that happens the bond market and the dollar will be dangerously weak. Glad I'm commenting on this from the life raft. #bitcoin

I've been noticing the same thing. Probably also incredibly bullish for bitcoin and stabilizing for the dollar. It's unbelievable to watch cryptocurrencies prop up the US economy, but if it makes for a more peaceful transition I am all for it.