Quote:
Originally Posted by pornlaw
Thats not the answer. The only reason why we havent is because the dollar is now tied to the value of oil instead of precious metals. For currency to have value it needs to be tied to something of value. And oil is by far more valuable than any renewable energy source.
Having renewable energy does nothing to protect the dollar. If the US doesnt consume oil they lose the petrodollar and China steps in anyway. The dollar will plummet and so will the US economy.
Demand needs to remain strong. With lower prices look what is happening to Venezuela, Russia and Nigeria. With lower oil prices we also have deflation that is starting to effect debt payments.
There's a lot more here to read about why low oil prices could be very bad for everyone...
Ten Reasons Why A Sustained Drop In Oil Prices Could Be Catastrophic | OilPrice.com
US national security and economic interests are closely tied to oil... if you dont believe me you dont have to look any further than the war in Iraq and how Bush & Co lied to get in there... |
You are absolutely correct on this.
But good luck trying to convince anyone. I have been trying for over 10 years.
But it's funny, every nation that has suggested switching currency for oil trading forcefully, we have been at war with (except china but they have only been suggestive).
Most nations want the 'stability' of the dollar/oil equation.
But you have these issues with 3rd wold oil producing nations that have pillaged the profits. They are looking out for their interest.
And you have this fact that Obama redacted the oil export ban that is starting to have a effect on international markets, putting more pressure on everyone else.
India just started to receive US oil exports in the past week.
(Ha... let me see Trump erase that one.. he is taking credit for better trade defecate and this is where it came from).
The market is going to adjust but it may take a few rocky years baring any more wars.