Comments by "David Himmelsbach" (@davidhimmelsbach557) on "Russian missiles strike 'safe haven' in Lviv | Breaking" video.

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  19.  @daveh322  There is no such thing as the petro-dollar. Decades ago the US made a deal with KSA to allow that kingdom to deposit their winnings/ sales proceeds in vast amounts into the US Treasury market -- WITHOUT having their assets exposed to the world. The fact that international oil sales have been long priced in International Money is still true and will remain true. The ONLY change that KSA might make is if the kingdom decides to accumulate Red China's debt instruments instead of those of America, Britain, Germany (Euro) and Japan. It is totally unnecessary to use US dollars to buy Saudia Oil. The trading desk will merely use the current value of this or that currency versus the US dollar to come up with such an exchange. Then, in an instant, the other currency is swapped -- electronically -- into US dollars and the deal is done. KSA wants its cash to be held in US dollars -- and not much else. These can always be exchanged into any other currency without paying much of a haircut. As weak as the US dollar is, it's still stronger than most of the world's fiat currencies. Further, for the volumes involved, the US dollar barely moves even with huge transactions. That's simply not the case with other currencies. Such is the real nature of markets, of financial reality. For Red China to emit yuan it must accept massive commodities imports. Oil would certainly qualify. But, on the whole, Beijing is NOT interested in issuing a reserve currency. To do so, Red China must be willing to see a strong rise in unemployment. Spit those words out. A rise in unemployment is taboo in Red China. It imperils the CCP's mandate of governance. KSA would have to accept a currency that is managed in the market by the CCP. It would have to accept Communist court judgments. The CCP could zero-out KSA's assets at a stroke -- to suit the Party. You might note that no nation is willing to accept Red Chinese debt as 'good money.' All trade with Red China has to be collaterallized by real money. That's why Red China has accumulated so much US Treasury debt. It's become pledge money to sustain Red Chinese exports -- and IMPORTS.
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