On Thu, May 30, 2019 at 7:30 AM Udhay Shankar N <[email protected]> wrote: > > A follow up to the follow up (message left unedited below for context) > > https://www.wsj.com/articles/the-dollar-powers-american-dominance-rivals-are-building-workarounds-11559155440
The US Dollar is backed by the might of the scariest military in the world. It may not be the gold standard, but in fact it is even better. Unlike the gold standard, it cannot be easily faked. The rest of the world only has the word of any government that the said amount of gold exists. These are not open to destructive inspections, and it is long suspected that most gold reserves have some amount of fake bars. http://news.bbc.co.uk/2/hi/africa/7294665.stm https://www.businessinsider.com/tungsten-filled-gold-bars-found-in-new-york-2012-9?IR=T https://www.cnbc.com/id/43391588 https://www.kitco.com/news/2017-08-24/Germany-Gets-Its-Gold-Back-From-The-Fed-And-It-s-A-Big-Deal.html The US can ignore international laws (and it does ignore them almost daily) only so long as international trade depends on the Dollar, and ignoring laws is pretty crucial to the way the US has done business for decades now. Given this I don't see the handover of trade power happening without entertaining the temptation to lob a few nukes. Rather than the PetroDollar, a more accurate appellation is the NukeDollar.
