Graph showing the US balance of trade since the introduction of the petrodollar system in 1974.
These trade deficits are not sustainable long term without major downward pressure on the dollar. This combined with QE has inflated asset prices to unsustainable levels.
Here is a great way to see the in-balance of the PetroDollar:
As a quick breakdown, the PetroDollar is a US dollar that is paid to any oil-exporting country for their oil.
In the early 1970s to 1980 we had a OIL Crisis which caused a massive spike in inflation.
Because of this, almost all international transactions are now priced in dollars.
When a country exports oil they receive dollars, not their own currency!
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@originate Developer & Market Analyst
That's honestly pretty frightening. 😝
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Agree!
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paper and more paper, the best solution... Ha... thanks odin im 19 years old and i actually know cryptos. its difficult to live looking at everbody having a blind faith on the politics money (dirty and useless money). And lets see how much time its left until the dollar system breaks down in his totality..
by the way, nice topics in your posts!
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Amazing -- you're very smart at 19 to be involved in Crypto, its a great time to start, it's going to be a big next few years. My best advice is buy and hodl :-) Thanks for your comment!
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