RE: US$ Could Collapse as Petro-Dollar Crumbles ~ Jamie Redman … (Death of the Dollar–25) with Link to Full Story
You always have some great arguments to rebut my thesis. And sometimes, you almost convince me.
Sometimes and Almost :) You surely know how to put a smile on my face buddy
As for "demand for oil," did you see that the price of oil recently dropped to negative? That's right, it dropped to about –$35. The reason was that there was NO storage space for any potential buyers, and therefore anyone who had oil to sell was stuck with it. So, in fact, there was NO demand for oil.
EXACTLY! allow me to repeat my words: "usd may still stay in power. As long as demand for oil exist"
Please let me underline words "may" and "as long" :)
Truth is, that US need demand for oil to come back. Also new sources of energy (which are aiming to replace oil) are partly a threat to current "status quo". Lack of demand for oil would be a total game changer. US would lose their entire leverage, which allowed them to organize their economy the way it's organized right now.
Also US is losing their influence in South China Sea (which has enormous amount of oil, one of the largest in the world and China wants it). If they won't be able to bully everyone around, then some countries will start trading with oil and paying using their own currencies (excluding USD on the way).
That would also become a problem.
So definetly USD will be challenged, however I would not see it CRASHING. It will be more of a LONG TERM BLEED OUT. Much more painful than rapid crash. Unfortunatelly.
Yours,
Piotr
Excellent point. It will be a "long-term bleed out," or a "slow-motion train wreck." I think we're in full agreement on that.
But eventually, a tipping point will be reached, and then the long, long, long, long decline of the dollar will culminate in a relatively rapid collapse.