The Demise of the Petrodollar

[Just Jim]

The Demise of the Petrodollar - Casey Research

"To explain this situation properly, we have to start in 1973. That's when President Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil and to invest any excess profits in US Treasury bonds, notes, and bills."

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[Grunwald]

Unfortunately some of the information in the article that the link points to is not accurate.
It points to 1973 as the point where the dollar started to gain value thanks to the oil for USD rule, and that is not true. The only argument that I will buy is that might have started to further weakened the British Pound, as it was still a very desirable currency back in the 1970s, but there came a time when it was no longer mentioned (I am referring to its desirability outside of the US).
The article does make some interesting points with certain nations looking to move away from the USD for international trade.
I have even heard that was the real sin that Ka-Duffy committed - he wanted to get paid in gold for Libya's oil.
Frankly I am not surprised that Iran, Russia and Venezuela would be pushing to quit selling their oil for the USD. I am actually surprised that they simply do not require payment in another form. I certainly would if I were running one of those countries. Just imagine the US using Iranian currency in our trade with Mexico. It would never happen, and we would all be screaming bloody murder if it did.

 

[Burt Gummer]

I am actually surprised that they simply do not require payment in another form.

Iraq and Libya tried that and we bombed the crap out of them.

I am sure many countries would love to dump the dollar, but don't want our us cratering their landscape, assassinating their leaders, and permanently staging our occupations.

If/when the dollar is removed as the reserve currency it will be toast. China/Russia together may be able to accomplish that task.

The strongest, healthiest Creditor-Nation on Earth (China) vs the country with the worst balance sheet and the highest debt - the USA. If it were not for fear of our military being used as a financial billy club, yes, these nations would be jumping ship tomorrow on the dollar. I guess we should thank the military for us not walking about with food baskets on our heads by now.