The UAE has warned Washington that prolonged dollar shortages caused by the Iran conflict could force Emirati oil sales into Chinese yuan, threatening the petrodollar system and US dollar dominance for the first time since the 1970s.
Not op but maybe they’re talking about how a reduction on the value of the dollar makes US exports more viable, and offshoring less valuable as the companies won’t save as much on wages. So potentially good for US workers, bad for US consumers.
Don’t see how. If the US loses the exorbitant privilege the interest rates and inflation will go through the roof at the same time, and the government will not be able to keep up with the unlimited spending, so social services will go down the drain. The American middle and lower classes are going to take the brunt of it, and it’s not going to be pretty.
I’m not quite sure how, but believe it is do to ignorance not argument - is the logic that the petrodollar going away will reduce the value of USD…? Not sure how this helps the bottom 80% and legitimately curious.
My understanding is that reduction in value is usually alongside a reduction in purchasing power, which seems like a net negative regardless of your asset class.
Considering how inflation has erroded the purchasing power of USD in the United States, I cannot imagine further reduction would be helpful to people living paycheck to paycheck, especially when you consider minimum wage is still stuck at $07.25/hour, which is ridiculously low.
Theoretically, this would actually help the bottom 80% of Americans whose livelihoods are not coupled with asset ownership.
Could you expand on this?
Not op but maybe they’re talking about how a reduction on the value of the dollar makes US exports more viable, and offshoring less valuable as the companies won’t save as much on wages. So potentially good for US workers, bad for US consumers.
Don’t see how. If the US loses the exorbitant privilege the interest rates and inflation will go through the roof at the same time, and the government will not be able to keep up with the unlimited spending, so social services will go down the drain. The American middle and lower classes are going to take the brunt of it, and it’s not going to be pretty.
I’m not quite sure how, but believe it is do to ignorance not argument - is the logic that the petrodollar going away will reduce the value of USD…? Not sure how this helps the bottom 80% and legitimately curious.
My understanding is that reduction in value is usually alongside a reduction in purchasing power, which seems like a net negative regardless of your asset class.
Considering how inflation has erroded the purchasing power of USD in the United States, I cannot imagine further reduction would be helpful to people living paycheck to paycheck, especially when you consider minimum wage is still stuck at $07.25/hour, which is ridiculously low.