🇺🇸🇨🇳 The main function of the petrodollar might be to keep China under U.S. control. Luke Gromen breaks down what Russia, Venezuela, and Iran share in common: they all sell oil to China in yuan, and that threatens everything. "If you can reconvert all oil back to dollars, it's... not about backing the dollar. It's about forcing China to have to only buy oil and gas in dollars. And then that puts them back in a vassal economic state of the United States." The strategy makes sense on paper. Whether it works in practice is another question entirely. Luke Gromenshow more

@LukeGromen PetroYuan (a term I invented in 2013) vs the Pedodollar .

I do think the USD aspect is a part of it, but not the focus. I think the bigger focus is simply making China dependent upon the US for Energy. No Energy = No Industry All the Productive Capacity in the World does you nothing if you cannot power it. Net settling in gold is here and happening. The old System is dead.

China can't buy anything from the US using dollar. What's the point of keeping the dollar any longer? On the contrary, People all over the world could buy almost anything from China using Yuan, so they would like to accapt yuan from China to buy their stuff. Petral dollar is dead

Why does Mario Nawfal always look like he just hotboxed a Sam’s Club-sized barrel of premium weed in a walk-in humidor, red eyes glowing like brake lights, while staring at a New York-sized pizza like it’s the love of his life and he’s one second from cannonballing into it mozzarella-first?

The U.S. has always been hostile and standing on the throats of all other countries to protect it's petrodollar hegemony but now it's purposely creating chaos/war globally, bombing Nord Stream, burning down refineries, attacking countries and killing their leaders to steal oil.

Calling the world's largest manufacturer a 'vassal state' while the US relies on China for 80% of its critical mineral supply chain is peak delusion. This 'strategy' is just a fancy way of admitting the US has no productive leverage left, so it has to weaponize the global financial system to stay relevant. If the only way to keep the Dollar on top is by starting a war in the Middle East to break the Petroyuan, the system has already failed. You don't 'control' an equal; you just delay the inevitable.

It’s not just petrodollar but rather entire Iranian economy has to be controlled through US Federal Reserve similar to the rest of Middle eastern countries. USA will decide how much money will Iran get from the sale of oil not just if it is traded in $ or RMB.

cc @SantiagoAuFund @amlivemon @TonyNashNerd @BaldingsWorld

Rediculous As though our lies and militarism and sanctions are perfume and Our bluster makes the petro dollar a crude but sweet smelling bath oil. Read that last fantasy aloud: China our vassal. There’s the idiocy in a simple declaration.

@LukeGromen completely agree with you here, and you say the same thing @SantiagoAuFund says all the time; There is a plan. You might not like the plan, the plan may not work as intended, or at all. But there is a plan.

Mind blown 🤯 The petrodollar wasn't just about oil it was the ultimate leash on China. Now Russia, Iran & Venezuela are helping Beijing slip it off with yuan deals and gold stockpiles. This is geopolitical chess at its highest level. If the dollar loses its oil throne, the game changes for everyone. Who else sees this as the biggest silent shift happening right now? 👀

The petrodollar isn't the real cause of this war. Before this war, Iran used multiple currencies for oil settlements. However, after the outbreak of the war, Iran was forced to settle its oil transactions in RMB. The war initiated by Trump forced Iran to abandon the US dollar!!

@LukeGromen CSYOSOYK

“petrodollar keeps China under control” is a big stretch 😭 yuan oil trade is growing, sure, but dollar dominance isn’t disappearing overnight — it’s still the core of global oil pricing, even with these workarounds showing up

You are the only media taking about this angle

The global economy is still measured in dollars,both in terms of reserves and international trade…but its decline is evident. The emerging powers,which have shaped the multipolar economy, will also strive for a multipolar financial system. And it is inevitable that they succeed.

🚀

well even saudi is trading with China in yuan...

the petrodollar isn’t just about supporting the dollar, it’s about forcing countries (especially China) to operate inside a dollar-based system

@LukeGromen What about Brasil?

UST are just the tip of the iceberg in CHN owned US assets. Lots of proxy bought stocks, property and infrastructure as well.

Your analysis is very insightful. Having reviewed many of your posts, I find your understanding of geopolitics and international relations to be profound, which aligns perfectly with our Blue Star Institute's views. I hope to discuss the details of our paid articles with you.

The “the price is quoted in” is a dumb argument. The fx market exists.

China will ultimately circumvent any capital controls sought by Washington. That ship, IMO, already sailed. What we are witnessing is damage control for the inevitable contraction of US influence...

It can be exchanged for anything, even the Lao kip, given its oil-dependent economy and authoritarian rule. Even the most foolish person would prefer to live in a fully developed ecosystem like the dollar. Of course, don't let anyone know, like Cuba or North Korea.

So now it’s a currency war?

Every sanctioned oil exporter ends up selling to China in yuan. How long until that's most of them?

Interesting thesis, but dollar dominance still holds—shift is slow, not breaking

Russia, Iran and Venezuela selling oil in yuan changes everything – dollar dominance is under serious threat. Wild shift ahead. 🇺🇸🇨🇳💰

The primary risk we face today is an overwhelming sense of unnecessary paranoia, which is currently the root cause of most of our problems.

Hey babe 💝💝