General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsChina will 'compel' Saudi Arabia to trade oil in yuan and that's going to affect the US dollar
Carl Weinberg, chief economist and managing director at High Frequency Economics, said Beijing stands to become the most dominant global player in oil demand since China usurped the U.S. as the "biggest oil importer on the planet."
Saudi Arabia has "to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf U.S. demand," Weinberg said.
"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it as the Chinese will compel them to do then the rest of the oil market will move along with them."
https://www.cnbc.com/2017/10/11/china-will-compel-saudi-arabia-to-trade-oil-in-yuan--and-thats-going-to-affect-the-us-dollar.html
Heck of a job, Trumpie.
eShirl
(18,466 posts)DemocratSinceBirth
(99,705 posts)If the dollar is weak it will cost us more to service our debt because it's worth less. A weak dollar is inflationary because you need more of them to buy the same goods .
AJT
(5,240 posts)roamer65
(36,739 posts)Kaleva
(36,146 posts)If we owe $100 but it drops in value by half, then we essentially owe just $50. On the other hand, if we owe $100 and the dollar doubles in value, we essentially will be paying back $200.00.
I believe this how how Fredrick the Great got Prussia out of financial difficulties. He devalued the money but increased the taxes.
pangaia
(24,324 posts)6-12 month t-bills and 2-3 year bonds?
Iliyah
(25,111 posts)plus idiot GOPs.
smirkymonkey
(63,221 posts)yuiyoshida
(41,762 posts)all Negotiations be in Mandarin.
TexasBushwhacker
(20,044 posts)China manipulates the value of the yuan. It may not be as attractive to Saudi Arabia as some may think.
ret5hd
(20,433 posts)Fact check: Does China manipulate its currency?
http://www.pbs.org/newshour/rundown/fact-check-china-manipulate-currency/
elehhhhna
(32,076 posts)This is not going to happen
Irish_Dem
(45,636 posts)Not much we can do about this fact.
Leaders who refuse to govern and instead create chaos. We don't take care of our citizens like other modern countries do.
The lack of a secure voting system made us ripe for Putin to subvert our democracy. Trump is a laughing stock, and quite dangerous. And when we get a genius politician like Obama, who is good to his core, the GOP clowns overturn everything he did.
We don't deserve to be in first place anymore.
Nevernose
(13,081 posts)And probably intermediate term.
It would be the beginning of the end of US hegemony and neo-imperialism. Say what you want about the Chinese some of its probably even true but they havent been shooting at everybody they could on six continents for the last hundred years or so, nor have they totally fucked up virtually every country theyve ever touched politically & economically.
So, for the rest of the world, maybe not so terrible. There are other peoples interests than mine to think of, or ours.
All that having been said: an awful lot of the Chinese economy and individual Chinese wealth is tied to the American dollar. Switching to the yuan might not appeal to the Chinese 1%.
Of course, theres an opposite to THAT, too. Xi & company have really been promoting the Marxist line lately, trying to remind people of where they came from. If the next elected leader is more Marxist (not likeliy, IMO, but if the many mainstream Party members voted with the mainland Kuomintang, who are the total opposite of the Taiwanese version, I could see it happening) then a switch to the yuan is good for everybody and damn the Imperialist Running Dogs.
DemocratSinceBirth
(99,705 posts)vrguy
(235 posts)Theories say Iraq was on the verge of selling oil on Euros hence the war...
Xolodno
(6,333 posts)...brings some economic control to the US. We limit our dollars and the value spikes simply because nations need them to buy oil. Or increase supply a bit and it devalues when nations need to sell the currency...making American exports more attractive. With just the slightest manipulation, the country "profits". Can also manipulate foreign policy, need oil? Well you need dollars and we don't think your currency is worth as much....unless you...
Richer nations keep dollars in excess for their reserves, poorer nations are a bit screwed. Plus, the dollar is used as a universal currency, which means we also have more influence on the international banking system.
Losing the status of an "international currency" means we have less influence on international financial transactions and using it to our "advantage". Russia already bypasses the US Dollar and Iran has been trading in Euro's for awhile now...only a matter of time in my opinion, they request the same of Saudi Arabia. China demanding trade in Yuan is just the next domino to fall.
That's what these "merika" first idiots don't understand....we are putting the US first via the international stage. Taking the US off of it means we have less influence and more nations will be less willing to do trade pacts that can often give us an edge. For example, taking us out of UNESCO now means we have absolutely "no say" in its operation....while other nations, such as China, India, Russia & Brazil have more influence and will commit to treaties, operations, etc. that are more in opposition to US interests.
We're basically fucking ourselves without the grease.
DemocratSinceBirth
(99,705 posts)Only a Deplorable would think having the dollar lose the status of "international currency" is a good thing.
Xolodno
(6,333 posts)...but Keynes advocated Bancor as an international currency. To avoid what the US currency became and to avoid currency battles, the eventual result once a nations "international" currency goes to hell, etc.
The problem with deplorable's, they think we can be assholes to the world and still maintain our status and stature. They really have no fucking clue. They act like the world is still rebuilding from WW2 or some other issue. Had someone quip to me how Europe is failing and bankrupt due to its socialist policies...and I'm thinking "since when?". Realized I wasn't going to convince someone who thinks the moon landing was faked but at the same time thinks technology has advanced so far that the government has enough ability to control the weather via chem trails and so on. So I didn't bother.
But, I was wondering where he got that lame brained wild idea. Then it occurred to me, the problem of Greece and rumors of other nations possibly being a bit close to the wire. So despite, the EU and hell Scandinavian countries...the most socialist of all, being in good hands except for a couple of bad actors who still leaned towards less taxation...he thought the whole thing was shot. Cognitive bias and general distrust...I can't fix that.
roamer65
(36,739 posts)Our standard of living will be wiped out in a matter of days or weeks.
WinkyDink
(51,311 posts)The OP verb should be "might."
DemocratSinceBirth
(99,705 posts)I see posters here manipulate headline. I sometimes do it but I prefer to let a person's work product stand as is
JCMach1
(27,544 posts)Oil will be permanently cheaper than water.
Response to DemocratSinceBirth (Original post)
JonLP24 This message was self-deleted by its author.
coolsandy
(479 posts)coolsandy
(479 posts)Obama tried to warn us. When we gave it up we ceded to China.