reply on: Why did ALL countries abandon gold & silver money to use fiat currency? \ stacker news ~econ

281 sats \ 5 replies \ @TomK 16 Jan \ parent \ on: Why did ALL countries abandon gold & silver money to use fiat currency? econ

The Petrodollar was the big geopolitical thing that feed the Eurodollar market's growth, indeed. All the rest that happened on FX markets had been controlled by the military and was nothing more than a reflection of the most important source of energy: oil.

48 sats \ 4 replies \ @cryptofolyo 16 Jan

The big question is

Why OPEC needs to control the supply and demand of oil ?

280 sats \ 0 replies \ @TomK 16 Jan

To set the price and rent-seek and have geopolitical leverage.

48 sats \ 2 replies \ @cryptofolyo 16 Jan

Control Scarcity and ensure that it is a proper duplicate for Gold/ Silver which was the base of money till 1971 ?

When Nixon said no more gold for dollar immediately dollar fell down from 35 to 700 ( todays 2700 inflation adjusted )

Then switched to crude oil backing instead of gold ???

just my doubts.

27 sats \ 0 replies \ @TomK 16 Jan

That's a wide field. But Your thoughts clearly point into a proper direction

21 sats \ 0 replies \ @Undisciplined 17 Jan

It's a different form of backing, because there's no peg of a particular amount of oil per dollar. Dollar demand is just artificially inflated by the monopoly it had for use in oil markets.