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

[stompix]

It can be done, the price would be about 10,000 per ounce.   The same negative is/was levelled at Bitcoin, the point being the price rises to the utility it provides and also monetary velocity, etc.
Thats not my estimate, read this guys book/explanations on why this is a likely outcome :

https://twitter.com/JamesGRickards/status/1109131952068706304

Yeah, but gold is a finite number and the US economy will not stay on this level forever nor will the world economy.
And two things will happen:

- being so expensive it will lose some of its application and people will turn to other precious metals rising that metal value
- if gold prices reach a too high level we might see Alchemy becoming real in the form of nuclear transmutation.

None can happen with BTC

And don't forget that there is still the possibility that an asteroid like the one in Jules Verne's story might crash down to earth. 

Nope, unfortunately for gold bugs, a gold-backed economy will never happen again.

[TheCoinGrabber]

More liked it is back by the US military - which also happen to be keeping the oil producing regimes in the Middle East secure. It sure helps though that they managed to force those monarchs to only sell oil in dollars. Anyone trying to do otherwise is dealt with (for example Gaddafi).

[BestSSS]

It's just another blogger who has an opinion that's all. For someone bitcoin bubble, and someone earned a fortune on it and became a millionaire.
About the dollar in General it is unclear why he believes that it is supported by oil. All my life, a stable course was supported by its own gold and foreign exchange reserves and the economy, and now is that something has changed?

[akram143]

Yes, oil is the most important economic think for every country in this world without this nothing will move on so it definitely affect some changes if the price increases or decreases in every country in this world so nothing onchange is not a fact.

[Ranly123]

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?

Fiat currncy is backed by both gold and oil deposits, so it is not impossible that petrodollar exists. This is what I think about why USA has attacked Osama Binladin because he doesn't want to share their oil deposits to them. And because of that he has faulted by US government about terrorism.

[iv4n]

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?

Fiat currncy is backed by both gold and oil deposits, so it is not impossible that petrodollar exists. This is what I think about why USA has attacked Osama Binladin because he doesn't want to share their oil deposits to them. And because of that he has faulted by US government about terrorism.

Fiat is not backed by oil or gold, it backed up by bonds, another form of paper. Don`t live in illusions, educate yourself. US gold standard ended in 1971. Oil is priced in dollars, its like that cause several big oil producers have currencies pegged to US dollars. You can read more about it on internet, you have many public informations about that, so educate yourself.
In near future we will see some changes on that field, as I`m reading China and Russia along with some other countries are working to break that down, we will see what will happen, it`s to early to say anything about what will happen on global stage.

[LUCKMCFLY]

They are opinions of different ways of seeing the economy, although I think it is not backed by oil or some precious metal, because the simple fact of having gone through a world-wide crash, is a sign that is not supported, although its recovery was rapid, But in the stock market, when such low movements occur, they do not let the economy fall.

Gold represents a lot of strength and support in any economy, in fact most economists always recommend buying gold shares, the economist Jose Toro Hardi in his book of economics, recommends diversifying money into shares gold, real estate,cash only to protect themselves of possible falls of the currency, since it can be generated printing of cash, which, would generate some percentage of inflation.

[STT]

people will turn to other precious metals rising that metal value
- if gold prices reach a too high level we might see Alchemy becoming real in the form of nuclear transmutation.

None can happen with BTC

And don't forget that there is still the possibility that an asteroid like the one in Jules Verne's story might crash down to earth.  Grin

Nope, unfortunately for gold bugs, a gold-backed economy will never happen again.

Well a gold based world money standard already happened.    To some extent this is still there but only as a small reserve do central banks keep gold.    China used to have no gold but are raising it every year for over a decade now and Russia also has opted to keep a gold standard


Asteroid -- gold melts at a low temperate relatively.    Any gold incoming would be dispersed widely, most of the world is water and its already true that the oceans contain giant reserves of gold however its very hard to get at and collect.

Nuclear - sure its possible, I wont discount genius but today its not a reasonable way

Alternate metals - totally will happen, silver copper and many precious metals are there.   Every capitalist system has competition for pricing and utility.   However I trust that time and elemental reasons continue to make gold the most likely successor to the debt situation we have now.

I'm not a gold bug, gold has no yield and good business will always be worth more, grow more and be more profitable but the world needs to have a way to store value.   Ironically gold is useful for not being used in industry as much as oil or alternate standards to back a nations money

[whirlcoin]

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?

the chances of the price of US dollars will definitely effect when the price of oil will increase or decrease so it can be definitely considered economic situation for oil prices.

[juragane]

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.

to be able to maintain the stability of the price of the American dollar always using their military. by destroying anyone who dares to oppose the dollar. Cryptocurrency is here to be able to become an alternative currency to replace the dollar because some countries do not want to be pressured by America. so try to use alternative currencies.

[azalea69]

We can see if the oil price rises then the dollar can also rise, this is also influenced by the value of other currencies. This is the case and I think the oil country always has a strategy to be able to influence markets in the world, and the possibility of crypto will be an easy way to pay on global markets.
But this conspiracy made many elements begin to seek better profits.

[stompix]

We can see if the oil price rises then the dollar can also rise, this is also influenced by the value of other currencies.

Can, but it doesn't follow that pattern too often:






You can see that during the period with oil prices over 100$ the $ was actually weaker compared to the euro by 20%.

Asteroid -- gold melts at a low temperate relatively.    Any gold incoming would be dispersed widely, most of the world is water and its already true that the oceans contain giant reserves of gold however its very hard to get at and collect.

I wouldn't call a thousand degrees Celsius a low temperature, it's well above other metals like lead copper zinc or aluminum.
Besides gold is heavy, an insane density that would make fragmentation and spreading across huge distances not likely.

Nuclear - sure its possible, I won't discount genius but today its not a reasonable way

It's not happening because of the costs, drive the price x20 times and you will see it's closer to reality than thought.

I'm not a gold bug, gold has no yield and good business will always be worth more, grow more and be more profitable but the world needs to have a way to store value.   Ironically gold is useful for not being used in industry as much as oil or alternate standards to back a nations money

That's because you can use gold in different things and you can recycle them and get back the gold.
From jewelry to computers parts, you can reclaim the gold, with oil...once you burn it ..it's gone  

[Paashaas]

The $$ is backed by big guns.

[jseverson]

-snip-

Many conspiracy theorists believe Gadaffi was killed because he only wanted to accept gold for Libya's oil.  That would have completely undermined the United States dollar and exposed it as worthless numbers in a computer screen that can be created at will.

Or you know, it could also be because he was a brutal, divisive dictator. That conspiracy theory is grounded on the assumption that the concept of petrodollar is still significant to the strength of the USD, and I simply don't believe that it still is.

Worthless numbers in a computer screen that can be created at will could also be used to describe just about every other fiat currency there is, so why stop at USD? Why isn't other fiat being exposed when they don't have oil or anything backing them?

[Oasisman]

More liked it is back by the US military - which also happen to be keeping the oil producing regimes in the Middle East secure. It sure helps though that they managed to force those monarchs to only sell oil in dollars. Anyone trying to do otherwise is dealt with (for example Gaddafi).

Although I believed that US dollar isnt backed with any commodity, not even the precious metals on earth or oil beneath us, but this comment really is the real thing if its true that US is backed with something like oil lol, I mean without these US military based in all portions of the middle east, oil might be distributed anywhere else, not the US as their priority. Not an expert in this field but this is just my two cents

[stompix]

More liked it is back by the US military - which also happen to be keeping the oil producing regimes in the Middle East secure. It sure helps though that they managed to force those monarchs to only sell oil in dollars. Anyone trying to do otherwise is dealt with (for example Gaddafi).

Although I believed that US dollar isnt backed with any commodity, not even the precious metals on earth or oil beneath us, but this comment really is the real thing if its true that US is backed with something like oil lol, I mean without these US military based in all portions of the middle east, oil might be distributed anywhere else, not the US as their priority.

Not an expert in this field but this is just my two cents

Probably Zimbabwe cents 

People, stop with the conspiracy theories and look at facts!!!

The US is not the main importer of oil from the Middle East, even a few years ago so not considering the continuous increase in shale oil, China, Japan and India imported more oil from the middle east than the US.

https://www.rigzone.com/news/oil_gas/a/146765/crude_oil_export_trends_in_the_middle_east//?all=HG2
https://www.quora.com/Which-countries-import-the-most-oil-from-Middle-Eastern-countries

Neither the US nor the EU are dependent on oil and gas from the middle east.
Secondary, Rosfnet and CNPC are exploring more oil than US companies in the area.

So, just stop with this oil nonsense.
The dollar is backed not by the 1.7 trillion global oil economy but by the 20 trillion economy of the US.

To make things clear, the value of all the oil produced in a year is around 1.7 trillion, the US imports stuff worth 3.1 trillion, nearly double. This is why the $ is so valued because everyone wants a share of that huge market, and the only way you're going to be paid is $.

[andika2018]

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.

I don't believe it either, it's more backed by it's military and massive GDP, we have a colossal economy that have strengths in all sectors.

I am agree if US Dollar backed by USA military not by oil or gold. When Iraq trying using gold as currency for every oil trade, US make fake announcement about mass weapon and its happen to Libya too. US company right now holding most oil contract in Iraq and Libya

[virasog]

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.

I don't believe it either, it's more backed by it's military and massive GDP, we have a colossal economy that have strengths in all sectors.

I am agree if US Dollar backed by USA military not by oil or gold. When Iraq trying using gold as currency for every oil trade, US make fake announcement about mass weapon and its happen to Libya too. US company right now holding most oil contract in Iraq and Libya

USA does not produce the oil.  They have collected a lot of oil through their polices. US dollar is surely not backed by oil, i think no currency is backed by the oil. US Dollar should be backed by the Gold but i have some doubt that if it is 100% backed by gold or not.

[Greed Dev]

I think the oil trading problem between the United States and Saudi Arabia is normal and that conspiracy theory really doesn't convince me. The value of dollars has been formed for a long time because the US country is a very developed country and they have talented people to control the inflation at the best level.

[Kevin77]

Oil is a big currency in this economic warfare period we are in. Of course, there are still wars going on all around the world with regular guns and what not but the biggest weapon in countries hands are the economical advantage over some resources, if USA doesn't have access to enough Oil their dollar will lose a lot of value. How can they get more oil ?

Military action and when they do that they need a lot of power behind them to go all the way to the other side of the world and take peoples oil from them and than bring it back to country, you can't do that with a small military you need worlds biggest for that. In order to keep making your military biggest of all military you need to keep spending money on it and in order to keep spending on it you need more money from oil to balance it out, so its an endless circle for them.