/biz/ - Business & Finance

>>29441174
>i am however arguing that the dollars value is based on its international relations
because you don't know anything. The value of the usd is based on the extortion of oil producers and is only possible because energy is economically inelastic.

https://en.wikipedia.org/wiki/History_of_the_United_States_dollar
https://en.wikipedia.org/wiki/Six-Day_War
https://en.wikipedia.org/wiki/Yom_Kippur_War
https://en.wikipedia.org/wiki/Israel%E2%80%93United_States_relations#1963_standoff_between_Israel_and_United_States
https://en.wikipedia.org/wiki/1970s_energy_crisis
https://en.wikipedia.org/wiki/OPEC
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Camp_David
https://en.wikipedia.org/wiki/Nixon_shock
https://en.wikipedia.org/wiki/Project_for_the_New_American_Century

>>18871628
>its the reserve currency of the whole world
>just because

why don't you learn something sweetie
https://en.wikipedia.org/wiki/History_of_the_United_States_dollar
https://en.wikipedia.org/wiki/1970s_energy_crisis
https://en.wikipedia.org/wiki/OPEC
https://en.wikipedia.org/wiki/Six-Day_War
https://en.wikipedia.org/wiki/Yom_Kippur_War
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Camp_David
https://en.wikipedia.org/wiki/Nixon_shock
https://en.wikipedia.org/wiki/Iran%E2%80%93Iraq%E2%80%93Syria_pipeline
https://en.wikipedia.org/wiki/Project_for_the_New_American_Century

>>18702596
no we are this situation because of foreign tyrants, imperialists, socilaists and communists

the federal reserve was created to issue bonds to fund ww1 and ww2
because there was no real victor and no spoils the dollar had to be redefined as otherwise they would not be able to pay and the cold war required to continuation of the fed
then once again the dollar had to redefined in 71 and demand for it forced by extortion of oil producing nations
now china is challenging the current dollar (which they also have no choice as their economy is a bubble) https://asiatimes.com/2019/12/yuan-globalization-remains-a-long-way-off/
https://youtu.be/GcFiJwpvmq0

It's Cain and abel

the only question is the USA completely corrupt
https://youtu.be/OyBNmecVtdU
https://youtu.be/F-AZV3qnwkA
https://youtu.be/os63_osqIzo
https://youtu.be/KOooHlaA0pE

or has it all been necessary evil
https://youtu.be/mYAHPPXmcts

>>18587353
up until 1971 the usd was reddemable in gold, countries started to make a run on the bank so to speak on the usd when it became clear the us had used all its gold reserves to win the cold war. Nixon ended the redeemability of the usd in gold to prevent the total collapse of the usd. This however meant contracts priced in usd where now meaningless in terms of value because the value of the usd was not defined by anything so people started pricing oil in gold.

in the late 60s the arabs began to use their control on the supply of oil to fuck with the us in retaliation to Israels expansion. This embargo and the crazy price action of the usds value not being defined by anything caused the oil shock energy crisis of the 1970s. The eventual solution to this situation was the creation of the petro dollar in which opec denominates oil in the price of usd and only accepts usd meaning the usd is effectively backed by oil forcing demand by the same mechanism that caused the whole situation it being an inelastic good.
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Henry_Kissinger#The_Arab-Israeli_dispute
https://en.wikipedia.org/wiki/Camp_David_Accords

https://en.wikipedia.org/wiki/Six-Day_War
https://en.wikipedia.org/wiki/Yom_Kippur_War
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Camp_David
https://en.wikipedia.org/wiki/Nixon_shock
https://en.wikipedia.org/wiki/Iran%E2%80%93Iraq%E2%80%93Syria_pipeline

>>18388370
brainlet

>>18385565
the usd dollar is the only fiat back by something; OPEC oil

this backing is dependent on the us military.
China launching yuan oil futures redeemable in gold is the biggest attack on the USA since the 1970s oil embargos

the supply of the usd has been defined by nothing since 1971.

Everything is priced in

>>17797258
the quick rundown
other countries stored their gold in ww2 for safety
prior to 1971 people believed the usd had gold reserves to make 1 usd worth 1/35th an ounce of gold.
Other countries started to catch wind the US did not have this and started redeeming their usd for gold (like an international bank run)
turns out the US only had 5% of the gold they claimed and so nixon suspended the redeemability of the usd for gold https://youtu.be/iRzr1QU6K1o
Oil was previously negotiated in usd and now that the usd was defined by nothing oil prices went mad in the seventies on top of the fact middle eastern nations who had the majority of the supply were leveraging this with embargo's to attack israel who had been trying to expand.
Oil shocks were armageddon tier happenings where there literally wasn't any oil in some places the government was issuing tokens for rationing of oil and all kinds of shit
eventually the us negotiates Opec to only sell oil in usd this effectively made the usd backed by oil in that if you wanted to buy oil you first had to buy usd
everytime some middle eastern nation starts talking about selling oil in something other than usd the us goes to war to stop them

https://en.wikipedia.org/wiki/Six-Day_War
https://en.wikipedia.org/wiki/Yom_Kippur_War
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Camp_David
https://en.wikipedia.org/wiki/Nixon_shock
https://en.wikipedia.org/wiki/Iran%E2%80%93Iraq%E2%80%93Syria_pipeline

https://en.wikipedia.org/wiki/Six-Day_War
https://en.wikipedia.org/wiki/Yom_Kippur_War
https://en.wikipedia.org/wiki/1973_oil_crisis
https://en.wikipedia.org/wiki/Camp_David
https://en.wikipedia.org/wiki/Nixon_shock
https://en.wikipedia.org/wiki/Iran%E2%80%93Iraq%E2%80%93Syria_pipeline