While slow moving, this is the biggest, most important story on Earth at present, in my view.
The U.S. will gradually lose influence and power as the global oil industry de-dollarizes. We are in no position to prevent the transformation that is already underway, so the question is: How will we respond?
Will we seek to harm those nations that choose to conduct international trade in currencies other than ours? Will we learn to operate in markets where dollars don’t count? Will we isolate ourselves from the global system, or double-down on regime change operations, even war?
The only thing I am certain of is that American arrogance is due for a reset. We will need to stop thinking of the rest of the world in simplistic ways — as, for example, a collection of friends and enemies.
One thought on “Why We Shouldn’t Underestimate China’s Petro-Yuan Ambitions”
Another way to deal with it is to stop corrupting our currency for political expediency.