I’d argue that the petrodollar was just a natural transition as the US started outsourcing more industry abroad. Every modern economy needs oil and you could only by it using dollars. That’s been at the core of driving global demand for the currency sine the 70s.
And completely agree that while near term is going to be chaotic and unpredictable, the general trend here is clear because that’s what the new selection pressures are pushing global economy towards.
I do think that it’s fairly likely that BRICS goes through with the idea of a Bancor equivalent at some point. I mostly see the yuan being seen as a convenient stop gap.
I’d argue that the petrodollar was just a natural transition as the US started outsourcing more industry abroad. Every modern economy needs oil and you could only by it using dollars. That’s been at the core of driving global demand for the currency sine the 70s.
And completely agree that while near term is going to be chaotic and unpredictable, the general trend here is clear because that’s what the new selection pressures are pushing global economy towards.
I do think that it’s fairly likely that BRICS goes through with the idea of a Bancor equivalent at some point. I mostly see the yuan being seen as a convenient stop gap.