Bitcoin Forum

The oil reservers around the world is full.
There is all ready too much oil.

The USA dollar demand was coz of oil.
USA dollar have problem now!!
USA dollar was backed by oil Trading!
Now When oil is down in order to keep USA dollar as Reseve currency they need to Back up USA dollar with other things.

You could ask why US dollar is used to measure financial worth in oil trade. I think it all starts from the fact that US dollar have been used for investment a longtime ago. It is not the fault of the USA that there currency is put at the level of international trade.


Other things like what?

The Petrodollar system makes the nations that want to buy oil in the Middle East use the US dollar. Currently, the world's oil tanks are full, the demand for oil supplied outside the Middle East such as Russia and other countries has caused the USD lack of liquidity and the risk of a slump is very high. It also strengthens other currencies against the dollar.

Along with that is the economic recession of the United States that is seriously in the pandemic. Sectors in the economic structure are affected by the taxation of Chinese goods.
The above reasons put the dollar at great risk of collapse.

That's Why They make deal with europe.


So USA Will build joint chain with eur Currency.

https://ec.europa.eu/commission/presscorner/detail/en/statement_20_1512

Dollar demand caused by overall usd usage around the world and also caused by latest usd printing - people still pay for things, thus value of money is still there.
Of course it is temporary, but my point is - its not all about oil

Eliminating taxes also means they will have more liquidity in a big market like the EU, right?
Perhaps this is a wise US strategy. The US dollar will have more places to consume but will they be more popular as Europe is looking to create a stable cryptocurrency in the region. Dollar manipulation is likely to be unattainable.

If you pay attention, any product from the US must be purchased in dollars. Oil is an example of dollar liquidity. It is the setting up of the Petrodollar that has caused the liquidity and value of the dollar to continuously increase since the oil fields in the Middle East were exploited in the 1970s and 1980s. America gets richer and the dollar is stronger than any other currency.
A loss of dollar liquidity in the oil sector can cause a dollar value collapse.
Right now Russia and America are having an oil war. Currently, the damage belongs to oil companies. Most of those companies are from America.

Its not oil War its to hide Liquitity problem!
Simple as that!!

That's Why the USA have made deal with europe to secure USA dollar for 5 years from now.