patrick.net

The dollar's value is entirely contingent up people's willingness to accept it as worthwhile commodity.

If China, Russia, and India continued to trade in the dollar, but then immediately converted it to a commodity asset, it would destroy the dollar in short order.

Hyperinflation is an political event, not an economic one.

HunterTits says

No countries that rely on a lot of exports relative to their GDP wants demand for their own currency to drive up the value of their own currency. Then they couldn't export as much.

Why would they want to export so much?

Why exactly are they eager to trade goods and products from some toilet paper that the Federal Reserve can make in unlimited quantities for nothing?

People keep crowing about GDP. GDP is just a measure of how much churn there is an economy. It isn't a measure of the health of a nation.

So in a short version, how fucked are we right now with whatever inflation or other countries using their currency to trade? What does that mean for us?

Are they simply resetting entire world economy down right now?

HunterTits says

richwicks says

Why would they want to export so much?

Uh, is that a serious question?

It's an entirely serious question.

They are trading work and labor for something that can, and is, created at will for no effort and no work.

You might do work for me if I produce trinkets that you can reasonably trade for good and services, but it's just a scam - you're trading the worthless trinkets with people who don't know they are worthless trinkets.

Dollar bills today are kind of like glass beads were 200 years ago. It's just surprising to me how gullible people are.

HunterTits says

The US has the largest GDP in the world but it’s also the most self-reliant — and therefore resilient — GDP in the world.

What about our imports from China?

Patrick says

HunterTits says

The US has the largest GDP in the world but it’s also the most self-reliant — and therefore resilient — GDP in the world.

What about our imports from China?

Dollars thru china just come back around again, right?

HT if you don't mind, can you explain how will this affect us here in US? Are there any financial recommendations that are good to make? I don't completely understand this petrodollar thing, and most importantly I don't understand what it means for us.

The petrodollar is one of the pillars of dollar support. All payment for oil must be settled in dollars, thanks to Nixon's negotiations with the swing OPEC member Saudi Arabia after he abrogated the convertibility of dollars to gold in 1972. The US supplies SA with as much weapons as it wants to buy and takes care of enemies of SA (like Iran, Iraq, Libya, Syria, etc.).

Another pillar is the SWIFT system for setting international payments, which is also controlled by the US. If the US doesn't like you because you don't play along, you're banned from SWIFT (like Russia right now).

The third pillar is the US military, which enforces US hegemony, as well as (largely) guaranteeing freedom of the seas and world trade.

richwicks says

Hyperinflation is an political event, not an economic one.

This. Inflation is always and everywhere a monetary phenomenon - Friedman.

Patrick says

FINALLY - Russia is supporting the ruble.

When will China ask for Renminbi / Yuan for their stuff?

Maybe other countries will stop racing to the bottom, and just let the US and Europe win that race on their own.

cisTits says

Patrick says

What about our imports from China?

~4% of our GDP.

Imports are about 10% of GDP. Half that is with the NAFTA nations.

Imports by definition are not part of GDP. The "D" in GDP stands for domestic.

I think the ultimate value of the US dollar is that Saudi Arabia demands dollars for their oil.

That's what I think of as the "petrodollar".

cisTits says

Patrick says

All the petrodollar is is any US money banked overseas and used overseas for transactions that occur via bookkeeping methods. Not limited to.mideast or oil money anymore. In fact, the majority isn't.

It's just a continuing scam at this point in my opinion. I don't know why China and India still participate in it. Russia quit it which is probably the true conflict the US has with Russia, and we are showing ourselves to be a paper tiger. Time will tell. I think Russia is legitimately afraid of us, but at the same time, I can see how weak our military really is. Sure, we can kick the shit out of a 3rd world country (sometimes..), Russia is not a 3rd world nation.

Or as I like to describe the US Dollar, it's still the best game in town, irregardless what happens to the price of Oil, or what other Countries gripe about.
My unwanted useless Petro Dollar repository is still open, I opened it in 2007 but nobody on Patnet has never sent me their junk dollars.

Tenpoundbass says

My unwanted useless Petro Dollar repository is still open, I opened it in 2007 but nobody on Patnet has never sent me their junk dollars.

I'll trade it for gold, after all, isn't the dollar the best game in town? Give me your worthless metal for my worthless dollars.

cisTits says

richwicks says

Why would they want to export so much?

Uh, is that a serious question?

For him - yes. =))

richwicks says

Tenpoundbass says

My unwanted useless Petro Dollar repository is still open, I opened it in 2007 but nobody on Patnet has never sent me their junk dollars.

I'll trade it for gold, after all, isn't the dollar the best game in town? Give me your worthless metal for my worthless dollars.

Wait! Are you trading Ass for your Gold? How are you getting the gold you get?

I have been hearing about petrodollar demise and dollar collapse for last 15 years. ZH is full of articles such as “Zimbabwe bought oil from Sudan and paid in Mongolian tugriks which signals end of dollar hegemony”. I am still waiting for that.

BTW logical arguments will not work on the petrodollar religion adherents more than scientific arguments worked on mask religion adherents

Tenpoundbass says

Or as I like to describe the US Dollar, it's still the best game in town,

And the sad part of that is that even after devaluating about 95%, its still the best FIAT in play.

komputodo says

Tenpoundbass says

Or as I like to describe the US Dollar, it's still the best game in town,

And the sad part of that is that even after devaluating about 95%, its still the best FIAT in play.

.... and no non-fiat plays exist. Guaddafi was our last hope until Bernanke ordered him killed...

Economic Lemmings: "Fiat money is no good buy Bit Coins and Gold!"
Also Economic Lemmings: "I lost half of my money on Bit Coin! So I bought more Gold when it went over $1600 an oz. "

I'm still waiting on the "For Sale" sign that says "2 oz. of Gold" as the price. .

cisTits says

Consider this: in a world where all global trade were to simply cease, everyone’s quality of life would go down.

But on an relative basis, America would be even more ahead economically.

That is true, as you stated we do not have an export driven economy.

We are somewhat self sufficient as far as agriculture, healthcare, energy, higher education, and technology development.

However we do rely on some imports for our supply chain as look at how many products from China, Taiwan, etc are needed for manufacturing in the USA such as automobiles.

For example, how many parts from China go into Whirlpool's refrigerators that are manufactured / assembled in the USA ?

Look at how Japan was cut off before start of World War 2 in regards to oil, which it had to extensively import.

.

We only rely on China because the geniuses purposely exported our industrial capacity to them.

cisTits says

richwicks says

Why would they want to export so much?

Uh, is that a serious question?

@cisTits?

Yes, it is. Why haven't you answered it?

What, precisely, does Russia need from anybody else? None of you chuckleheads can answer that. There's this BULLSHIT from the retards in our government that thinks "money" is something Russia needs. For what?

RWSGFY says

For him - yes. =))

@RWSGFY - answer the question.

You're one of the dumbest, snidest people I've ever run across on the Internet, and I've been on it before web browsers were invented.

Instead of appling derision, which is nothing more than a stupid ad-hominem attack, explain just what Russia needs "money" for? What are they, the Russians, using money to trade for?

Can you guys answer this? Show you have the capacity to be less stupid and fucking retarded than our own fucking dumb shit totally moronic Neocons. They are either the stupidest mother fuckers to EVER gain power in the United States, or they are a 5th column in the United States whose purpose is to destroy this country. Show that you are smarter than they are.

What precisely does Russia need from anybody else?

cisTits says

richwicks says

It's an entirely serious question.

No. It isn't.

Just an expression of ignorance.

Here it is in a simple, "See Spot Run" format. Exporting Nations for Dummies, basically:

https://youtu.be/l0CQsifJrMc?t=199

Noo, @cisTits - answer the question. Don't point to a fucking haystack and say the needle is in there.

What does Russia need US or European currency for? To trade for what?

You are acting as if this has an stupefyingly easy answer, yet you can't answer it. All of you people are like "PFFT! You don't KNOW that answer?!? HARDE HAR HAR!!! You dumb!"

I do know the answer, I'm demonstrating to other people you don't. Russia doesn't need ANYTHING from the United States or Europe, Nothing at all. There's some luxury goods they don't mind having, but they need NOTHING from the US or Europe.

Europe on the other hand DOES need VITAL resources from Russia - energy. This is not a luxury for them, this is absolutely necessary to keep functioning.

US Bank Trouble Heralds The End Of Dollar Reserve System

Bank crisis not a credit quality problem but stems instead from now-impossible task of financing America’s ever-expanding foreign debt...

Read it here:
https://www.zerohedge.com/geopolitical/us-bank-trouble-heralds-end-dollar-reserve-system

richwicks says

What precisely does Russia need from anybody else?

True, as Russia could probably sustain itself depending on the demands of its average standard of living.

Does it need to import vital medical supplies like antibiotics ?

How much of its public transportation's operation and maintenance are dependent on foreign goods and services (i.e., technical representatives from other countries assist with complex repairs, parts from China to replace worn brake parts, etc.).

A standard of living that is more complex increases likelihood for more imports in a global economy.
.

ad says

Does it need to import vital medical supplies like antibiotics ?

Possibly, but India produces this. Given our fucking pharmaceutical system, they would probably be healthier without buying any of our poisons.

ad says

How much of its public transportation's operation and maintenance are dependent on foreign goods and services (i.e., technical representatives from other countries assist with complex repairs, parts from China to replace worn brake parts, etc.).

All that, will be replaced. Russia has been trying to do trade of goods and services with Europe for 30 years, the US keeps interfering with them, finally Russia is at the "fuck you moment". They will no longer pursue any trade with Europe or the United States. Their manufacturing is shit, I know that, I think that's finally about to change. Reliance on ANYTHING from Europe or the US is bad for them, they have 5 years to get their asses straight on manufacturing or so before they run out of parts, but they are doing well with China and they export significant amounts of energy to China.

ad says

A standard of living that is more complex increases likelihood for more imports in a global economy.

I don't see why. Has trade with China increased the standard of living in the United States? We've been doing it for 30 years. Has this helped the United States?

If Russia (and it's a big IF) can get rid of their systemic corruption and incentivize creation and and business development within their own country, they will have a good future ahead. The West is just too fucking corrupt to bother with.

richwicks says

I don't see why. Has trade with China increased the standard of living in the United States? We've been doing it for 30 years. Has this helped the United States?

First thought is cheap computers like the $200 Chromebook (Acer, 15 inch screen) I am using now. Cheap computers can be a powerful tool that offers many productivity advantages. Look also at how valuable free services like Google Drive and Open Office.

Cheap cameras like from Wyze can be used to keep an eye on elderly and young children in a home. Look at medical pendants or necklaces that can be worn and can detect a fall.

I can see there are a lot of western robber barons like Soros who get protection by wrapping themselves with the globalist and Woke flags. I think there is still an active arrest warrant in Thailand for Soros.

My degrees are mechanical engineering and industrial engineering (IE). I use an IE mindset to look at how to merge free or cheap, readily available (commercial off the shelf) products to make life easier.

But I can see Russia easily being able to sustain itself by just relying on India, China and Africa. Russia is an innovative country with hardy people; they can figure things out a lot on their own. I would say some of the USA is like that, especially Rednecks (i.e. my people) and homesteaders in Idaho, Montana, Alaska, etc.

.