/leftypol/ - Leftist Politically Incorrect

>>482164
The US tried to push the Oil price cap last year, i think that was what pushed the Saudis over the edge.

>Isn't that wild?
If the Dollar is a Jenga-tower the Saudi-block getting pulled out, certainly did made it wobble a bit. The hard-line Neocons in the US want to apply full spectrum sanctions to China the same way as they did with Russia. That'll be like smacking the Jenga-Tower with a bat. That'll be when it gets wild.

>What's going on?
The Dollar is turning into a game of musical chairs. Except that every-time the Neocons remove a chair, the BRICS financial transaction systems ads a new chair Arms wide open, come sit with us. The Neocons get mad that nobody is sitting on the floor, and conclude they're need to rip out more Dollar chairs.

Needs a citation friendo.
Crazy shit though. Are they complete decoupling from the petrodollar? How will the US get its oil with out the Saudis?

>>482166
>Are they complete decoupling from the petrodollar?
looks like it
>How will the US get its oil with out the Saudis?
You missunderstand the US can still buy Saudi Oil. It's just that it's no longer listed in Dollars. The US would have to exchange dollars for something else to buy the Saudi oil.

The big deal is that if oil produces list their oil in dollars that means everybody in the world seeking to buy oil has to acquire dollars to get some. That gives the US great financial leverage. If the Saudi oil isn't listed in Dollars the rest of the world no longer has to buy Dollars to get it, and the US looses some financial leverage.

Loosing that leverage means it'll get harder for the US to print money, or to sanction other economies.

>>482166
I got it from Lee Camp, but it might not be true. A New Arab article from a couple days ago seems iffy about it.

Things have been set in motion that can't be turned back now. A big question I'd like answered is whether or not Modern Monetary Theory still applies when you're no longer the world's currency hegemon.


Here's an extra sentence since the dumb spam filter thinks this post is spam.

>>482188
>Things have been set in motion that can't be turned back now.
Technically the US could do a massive political shift away from militarism towards civilian production of goods, and then the rest of the world would try to buy those goods and the Dollar exodus would reverse. The US has a lot of natural resources, a large workforce and a lot of high tech know how that makes this possible. The probability of that happening is somewhat low. The more likely outcome is that no significant political shift occurs and the currently gradual Dollar exodus will go on for a while, but as more and more feedback mechanisms kick in it'll begin to accelerate and follow the curve of an inverted logistical distribution.

>A big question I'd like answered is whether or not Modern Monetary Theory still applies when you're no longer the world's currency hegemon.
Yes and No. The value theory parts of MMT were never correct, regardless of the currency hegemony status. The political application of MMT can still work. Specifically the public sector economy can print money to hire every last employment-excluded citizen as long as those people are instructed to do productive labor (in the strict Marxist definition) and there would be no resulting increase in inflation. There are some caveats, this assumes the US chooses a geo-political path of a managed de-dollarization with a soft-landing. If they continue down the path of ramping up militarism, currency wars and trade wars it'll cause a hard landing with significant inflation pressure, that would make MMT schemes more difficult.

>>482189
Controlling inflation is as simple as a government-mandated price freeze. The US itself has done it at least twice in history. Inflation isn't controlled, or rather, is actively sought out, because it's a policy to keep workers desperate and difficult to organize.

The best way to beat inflation long-term is by controlling inflation in land prices - IE taxing the shit out of land speculation so that it becomes unprofitable and land prices drop.

>>482197
>>482208
So you want to take on big real estate hedge funds like Blackrock ? What's your "game-plan" for doing that ?