Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "OH SH*T: A Global Currency Crisis Has Begun" video.
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Sorry, but that's not true. Petrodollasr are the payments in USD for oil. Oil pool producers markets other than other BRICS pay for that oil in USD. So where do OPEC+ put those USD? Straight into the Eurodollar Market, which is worth $12trn in market cap. So sorry, but you are putting the cart before the horse. BRICS+ whilst trading in gold between each other, has to use USD with everyone else. So they put that money into the Eurodollar Market, because it's returns are better than onshore banks. And it's liquidity is greater. So... Petrodollars aren't dead, they're still in the machine that is the global financial system. And, as oil production is falling in response to stagnating global trade, the BRICS countries are trying to diversify in part, but they can't move away from USD, because gold is not as liquid as USD. When Gold can be used in a McDonald's, then things might be different. But until then, USD Is still the global reserve currency that can be sent anywhere in the world in a matter of minutes. That's why you're still in a USD world, and are likely to be for a good while yet. After all, you can be sure all the BRICS+ countries are still holding dollars or US Treasuries. That's how China is paying for all the credit their throwing at their dysfunctional banking system, by selling them, probably to the Japanese. That's just how it is.
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Not really. The Bank of International Settlements has a database which tracks Credit owed to the non-financial sector, and credit owed by governments to the financial sector. Both these swamp the sums central banks deal with. And their balance sheets are central bank reserves, which is purely electronic money. The people who have the wealth is not the central banks, but the banks, non-bank financial institutions, and corporations, and their owners. Central Banks don't control money; the money markets control money. And money comes in 3 types. The smallest in value are Central Bank Reserves, which are only about 3% of the total, then there's Currency aka Cash, which is only about 3 percent of the total, the other 95% is Bank Credit, money that is created by banks, and appears in the ledgers of each bank. This is created by the issuing of loans, and is destroyed when loans are repaid. That's the biggest and most valuable form of money in the world. The Eurodollar Market is the global unregulated wholesale money market, where once banks have run out of deposits to lend out, they go to borrow cheaper capital to make more loans. This is why Debt is the most important financial asset, and why the Global financial system runs on credit. But there's a problem. Money is about trust, and when trust is broken, financial systems stop working efficiently. That's why there are more crises, because there is a perennial shortage of trusted collateral for the loans needed to keep the global financial engine running. Nobody trusts each other anymore since 2008. and so the cost of money should be going up, if governments had let the greedy banks suck up the mess which they created. Instead, governments bailed out the banks, and the cost was placed on tax peers with the promise that their money would regain its value. But, that hasn't happened because the banks are still broken, and theirs not enough collateral to finance the real economy - the one that provides jobs. Instead the banks are funding speculation like crypto, and other asset bubbles. And the illusion of telephone number house prices disguised the issues, the forever climbing stock market, and the Ponzi scheme that is crypto is go up in price, that is assets, but the price of labour is surpressed to encourage works to subsidise their lifestyles with debt. So, central banks are just MCs, not the band who is playing the music, while your life gets harder as your purchasing power goes down. Why? The people who own all the debt and all the securities, and assets are the only ones getting rich. The Central banks are the public face of each country's cabal of plutocrats. The banks are parasites, because debt and speculation chases out productive investment. Debt is sucking the life out of the economy. And if you read some financial history, you would realise that the control of money and debt has been at the centre of a struggle between rulers vs oligarchs and plutocrats throughout the history of finance. It destroyed Greece and Rome, and unless someone, somehow bites the bullet and call a mulligan, it's not going to get better. And if you're an American, both parties know that this is a problem, but the asset owners are in charge because they can fund politicians to do their bidding. So Jay Powell is a messenger boy to the public, to keep them calm, and the Fed follows the credit market, rather than lead it any where. And the Eurodollar Market is controlled by the dealer banks. And there are people who know this, and Jeff is one of them. Michael Hudson is writing a trilogy on the history of debt, and David McWilliams has just written a popular history of money, called "Money". And there are academics now who realise we're just the modern version of the late Roman empire financially. It can be fixed, but the wealthy don't want to give up their power. So, again, perhaps through tariffs, you and everyone else who isn't isn't asset wealthy, are paying the price for that.
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