Transnational Thursday is a thread for people to discuss international news, foreign policy or international relations history. Feel free as well to drop in with coverage of countries you’re interested in, talk about ongoing dynamics like the wars in Israel or Ukraine, or even just whatever you’re reading.
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Notes -
I considered putting this in the Culture War thread but decided it fit better here. US Saudi "petrodollar" pact ends after 50 years.
One of the reasons, if not the main reason, the US Dollar is the world's reserve currency is that OPEC agreed to index the value of oil in US Treasury bonds. That agreement is a big part of how the US has managed to ring up only modest national debt despite sizeable budget deficits, and has a been significant factor in maintaining "Pax-Americana". It seems to me that the State Department and the Senate both allowed the agreement to expire with little (if any) effort put into negotiating an extension or consideration for the implications.
To my lay-person's eyes this looks like it should be a big deal but it also seems to have been completely ignored by all the big name news sources outside NASDAQ and the WSJ. Are media moguls trying to bury the story or am i just being paranoid?
FYI, there does not seem to be an actual "pact" or "agreement" for 50 years of petrodollar. (If you look at your link, it's not an article by the actual "nasdaq" but by some affiliate "tipranks")
China for example has been buying oil denominated in RMB since last year, this "petrodollar going away" isn't a singular event that happens.
US will still be the most used currency in world trade by some margin, though its share of the total will gradually decrease... probably.
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