Many are focusing upon the fact that Saudi Arabia is writing contracts outside the USD. This is causing a lot of posts with "the end of the petrodollar" narrative.
In this video I discuss a fundamental flaw in this theory: the petrodollar wasnt real. If we look at the numbers, we can see how that is a small portion of the USD based trading. When we compare it to the repo market, we are looking at a 1000x in size against the oil industry portion that could be affected.
▶️ 3Speak
I haven't even heard of the petrodollar before. But this was very informative and helped me get more info about how the oil industry works.
You have missed fantasy land by many of the USD haters.
They believe in nonsense. Simply look at the numbers.
I feel ashamed a little, been a big fan of the us dollar crash and all have been waiting for the recession of the Us economy without much facts and understanding of data. The USD is indeed dominating the Fx market, I'm well aware as a student of such market, even in my native country I haven't seen a single soul aside online who trades in Pounds or Euros.
And the other assets to the united state dollar truly brings a large amount of value to the currency, there by making it king. I do understand now what you meant in saying the dollar will for because of it strength.
Just scenery I'm thinking of;
After an alternative is found; probably a cryptocurrency, and the value of the USD starts dropping and other countries starts gaining from the drop and starts paying off their debt that will be pushing USD again especially when the alternative doesn't cover all the assets of the dollar, the dollar will still be king among traditional currencies.
A question;
Watching the video till the end, somewhat aches my heart, knowing that I'm in a developing country, with a strong sense of abandoning their currency to get dollars to live above the inflation, currently earning in USD is more of a leverage than taking a loan due to the high inflation. I'm an 18 year old and I'm wondering what the future of my country will look like as the dollar keeps rising and how I can manage the situation personally and nationally, so I can start building a strong foundation?, I will really like to get a reply .
Excellent comment.
I looked it up. On the FOREX markets, there is roughly $7.5 trillion traded daily, with $6.3 trillion of it in USD. These are based upon the 2022 numbers. So yeah, there is a reason why you never saw people trade for pound or euro. Neither of these currencies is international. For the most part, they are regional.
As for your question, my suggestion is to not fight it. Get USD denominated assets. The USD is not going anywhere, at least not as a measurement. That means things will be measured in dollars even if there are none involved. An example, is HBD on Hive. That is an asset that is redeemable for $1 worth of Hive but there is no USD involved in the transaction.
With things such as stablecoins you can get USD exposure without having dollars. Load up on USD and your purchasing power will remain if the USD appreciates compared to your currency.
Thanks a lot for the reply, I will begin my journey of investing in stable coins by first becoming a true owner on this platform as your articles have stated, love to see more articles.
That will be a good start. It gets you some holdings in USD which is a hedge in case of devaluation of your native currency against the dollar.
It is a way to protect yourself in a manner that does not involve the banking system.
That, to me, is the first step.