What would have been the ramifications had OPEC starting 1974 accepted currencies aside from US dollar like Deutsche mark/Euro, Japanese yen, British pound, Swiss franc, and Chinese yuan as a mode of paying crude oil?
WI: OPEC accepts currencies other than US dollar
Well, here is a good sum-up.
https://www.bloomberg.com/news/feat...behind-saudi-arabia-s-41-year-u-s-debt-secret
The petrodollar was the solution devised to avoid the collapse of the dollar standard that seemed unavoidable in the late 1960's and early 1970's.
The question is : if Saudi Arabia had not had accepted the deal, would the US have sat and watched the dollar collapse or would it have kind of forced on Saudis a solution that would save the dollar's privileged position ?
https://www.bloomberg.com/news/feat...behind-saudi-arabia-s-41-year-u-s-debt-secret
The petrodollar was the solution devised to avoid the collapse of the dollar standard that seemed unavoidable in the late 1960's and early 1970's.
The question is : if Saudi Arabia had not had accepted the deal, would the US have sat and watched the dollar collapse or would it have kind of forced on Saudis a solution that would save the dollar's privileged position ?
reading that article, it sounds as if the deal didn't go through, it would have been really bad for the US economy... one question is if there is another economy back then that was big enough to dump all those petrodollars into...
In terms of investment a diversified investment strategy would have been most likely.
so... dumping petrodollars into several currencies, not just one? If the US dollar isn't one of those currencies, then that would be really bad news for the US economy, it seems...
Even if there's US investment its more likely to be absorbed in the stock market rather than state bonds.
FillyofDelphi
Banned
Well... I doubt OPEC would consider not accepting the USD even if its not their exclusive unit of exchange. To do so would not only royally tick off the Americans (To the point that they'll likely go out of their way to target your country for a "Revolution"), but would cut them out of the US market. That's only going to encourage the American government to develop its own oil industry, which isen't good for their bottom line.
marathag
Banned
Or dust off the plans to invade the Oil rich areas of Saudi Arabia.
As bad as the '70s era US Military was, it was worlds better than the Gulf States, and all parties knew that
But development was the main point, those same States knew they needed US expertise in doing their fields and refineries, and sticking a finger in Uncle Sams eyes would be a very short term pleasure