Is the US dollar backed by oil?What do you think?

[davis196]

I kinda like this guy and his Youtube content,but he is anti-bitcoin and he has some solid arguments.

https://www.youtube.com/watch?v=YChQ3KQ_1f4

https://www.youtube.com/watch?v=xNr1LWgIyiE

The first video is about the bitcoin bubble and the second video is explaining the petrodollar and the US/Saudi Arabia relationships.The petrodollar conspiracy theory sounds pretty good to me.

What do you think?

[Medichi777]

Anything can happen. I think that such theories pollute the head and do not allow to focus on something more important.

[gantez]

I do not know the area you are looking at this from. I just would not say yes that the US dollar is backed by oil but that the dollar is the measure of value in currency to the oil. And so, the dollar is a determining factor to how the oil will be priced.

[dothebeats]

Fair points given by the guy, and it has been bothering me too as to why the US is too keen on what's happening in the middle east and trying to assert dominance over the countries in there. Also, not once had Saudi Arabia been the first ones to introduce hostility to the middle-eastern governments, it was always the US going in on the front lines followed by Saudi next. Though I'd like to believe that in part, the US is backed by oil, it still is far-fetched, considering how fast banks print USD without any hesitations whatsoever on what they're doing.

[alisafidel58]

I sounds good but still need to be proven. There is a lot of conspiracy going on with the US and Saudi Arabia regarding its petroleum import/export. To think that the Dollar is backed by oil I won't believe it.

[BitBustah]

The US dollar is backed by the US military.  This is where all their power stems from.  Very few countries if any want to challenge the United States for dominance because of their immense military presence.  This is why president's refuse to cut military spending.

[Naida_BR]

His points are totally valid but I think it is more a conspiracy theory in my opinion.
USA strives for keeping oil amounts on their control but this doesn't mean that they are doing that because US dollar is backed to it. It would be foolish to do so with a commodity that you do not own.

[Beerwizzard]

It might be considered that currencies like  Saudi riyal are backed by oil (simply because Saudi Arabia is not producing anything) but not USD.
American dollar is backed by US Internal Revenue Service. They got a commitment to gather trillions of dollars annually by gathering taxes from US citizens and companies. This is how USD is backed by US economy. That's simple.

[sfr2017]

Until 1973 the US dollar  was on a gold standard, but Richard Nixon took the US off the standard in 1973. Actually abandoned the system in order to print inflated currency called “Greenbacks” without any commodity backing.

[ASHLIUSZ]

Until 1973 the US dollar  was on a gold standard, but Richard Nixon took the US off the standard in 1973. Actually abandoned the system in order to print inflated currency called “Greenbacks” without any commodity backing.

Agreed, USD is backed by gold. Even with the oil backed countries the currency validation is done through the value of gold. Even now I'm not sure, but gold seems to be the backing commodity for USD along with its internal revenue.

[sheenshane]

Until 1973 the US dollar  was on a gold standard, but Richard Nixon took the US off the standard in 1973. Actually abandoned the system in order to print inflated currency called “Greenbacks” without any commodity backing.

Agreed, USD is backed by gold. Even with the oil backed countries the currency validation is done through the value of gold. Even now I'm not sure, but gold seems to be the backing commodity for USD along with its internal revenue.

Well mate in my own, 90% of what we use every day is produced by oil as the main source of power. If you are a country with oil, it means that you have sources, powers, and money to generate and keep it producing sources, income, and revenues.

I liked what he told about the dollar, gold, and bitcoin and it is very relevant. The reason why the US dollar has a nice value globally it is because the people who invented and support it are great salesmen, end of story.

[Btchunter3333]

Maybe yes or maybe not, but possible no, because most say is backed by economy of US. In my country the USD grow a little this year and keep stay up. But as other users say i think is backed by gold and not by oil.

[avikz]

The US dollar is backed by the US military.  This is where all their power stems from.  Very few countries if any want to challenge the United States for dominance because of their immense military presence.  This is why president's refuse to cut military spending.

I somewhat agree to this view! Because of the enormous military prowess, US has the guts to intervene in any international problem. For the world, USD is actually backed up by  Debt and global trade! Nearly 65% of the global trade is transacted in USD. However, there are lot more. I found a very nice explanation of how USD is backed up in Quora and I encourage you to read this,

https://www.quora.com/If-the-U-S-dollar-isnt-backed-by-gold-anymore-what-is-it-backed-by-Where-is-the-true-value

Even this writer has emphasized about the military prowess of US. Not a mare coincidence I believe!

[stompix]

The first video is about the bitcoin bubble and the second video is explaining the petrodollar and the US/Saudi Arabia relationships.The petrodollar conspiracy theory sounds pretty good to me.

The entire oil industry (including Russia, China, Iran) is said to be somewhere around 1.7 trillion.
The US GDP is around 20 trillion and only its military budget is 1/3 of the value of the entire world oil production.
Apple sold products worth 250 billion in 2017, close to the value of the entire oil production of the US.

The whole petrodollar thing is so overestimated.

[mrdeposit]

I kinda like this guy and his Youtube content,but he is anti-bitcoin and he has some solid arguments.

https://www.youtube.com/watch?v=YChQ3KQ_1f4

https://www.youtube.com/watch?v=xNr1LWgIyiE

The first video is about the bitcoin bubble and the second video is explaining the petrodollar and the US/Saudi Arabia relationships.The petrodollar conspiracy theory sounds pretty good to me.

What do you think?

After the gold standard that claimed 1 ounce of gold equals to the 35$, the situation has changed in favour of the USA. Oil countries always trade with major currencies but they are not able to put the USD in offside. The petrodollar is not a case anymore and having the ability to beat inflation with more printing the US dollar will beat all the alternatives even without oil produce.

[Crypdon]

The USD is backed by a mass printing machine which keeps churning out more dollars everytime they fall behind with their debt repayments. Bitcoin is a free economy so lets sere who has full control in later weeks.

[magneto]

It doesn't matter what reserves or what powers a country has.

At the end of the day, the fiat currency that is issued by the US is backed by absolutely nothing. You could say that the value may derive from oil or whatnot, but at the end of the day, there is absolutely no legal promise that the bearers of these notes are able to redeem it for a form of commodity. China holds a lot of gold, but their currency's value certainly doesn't follow the price of gold, nor is it backed by gold.

Besides, if the central bank/government wanted, they could essentially dilute the value of existing currency by producing new ones/lowering the interest rate. That's not a commodity backed currency to me.

[STT]

Until 1973 the US dollar  was on a gold standard, but Richard Nixon took the US off the standard in 1973. Actually abandoned the system in order to print inflated currency called “Greenbacks” without any commodity backing.

Part of the Nixon shock at the same time was the attempt to reach out to China to establish trade and that has been a massive part of the story.   China was literally starving itself to death despite being the size of an empire they were tied up in stupid communist practise.     Its probably more arguable that Dollar has become greatly supported by cheaper China production and labour then the oil aspect alone.

The big deal now going forward is that China has a falling working population, this equates to a rapidly rising cost of labour.   Thats ok, they start from a low base and can develop the economy however it does make it likely that competetion between USA and China occurs as they both must be the most efficient to justify trade.

The deal with Oil recently would be USA has greatly upped its production, however any figures you take must deduct USA consumption also and that is too great to call USA oil backed.  Its a global reserve currency

[pixie85]

The USD is backed by a mass printing machine which keeps churning out more dollars everytime they fall behind with their debt repayments. Bitcoin is a free economy so lets sere who has full control in later weeks.

It's also backed by large industry that makes many expensive things that end up all around the world. The reactors that blew up in Fukushima were made by a US company GE. They weren't faulty I'm just using this as an example. You may not know but you could be getting power from a US made reactor or water turbine right now and using a phone a car or a computer designed in the US.

[kaya11]

I don't think so, if US dollar is backed by Saudi Arabian oil then why it's current money value isn't the same as Saudi Real? U.S. dollars are backed by the “full faith and credit” of the U.S. Government, that is what I strongly believe for now.