It could. I'm not a big believer in the petrodollar. But if people percieve that it exists, and it loses status as the main currency for oil, that will hurt its subjective value.
My theory is that the petrodollar was invent, with a mixture of myth and actually pursued policy, to justify the dollar still having value after it went off the gold standard. Acedemically they needed an explaination. And strategically those who thought the dollar's only utility was the ability to exchange it back for gold needed a solution to their fears.
But there are a ton of fiat currencies on the planet, all of them being valued. Why? Because the base value of a currency, before it gains extra value from exchange utility, is what it can do that nothing else can. What you can't do with any other currency is pay taxes in the country you owe taxes in.
The petro-dollar is an easier pill to swallow than admitting that currency is really just a slave token used to pay taxes. And then we happen to use it for other things since everyone values not going to jail it happens to be a token that's is universally accepted as valuable.
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It could. I'm not a big believer in the petrodollar. But if people percieve that it exists, and it loses status as the main currency for oil, that will hurt its subjective value.
My theory is that the petrodollar was invent, with a mixture of myth and actually pursued policy, to justify the dollar still having value after it went off the gold standard. Acedemically they needed an explaination. And strategically those who thought the dollar's only utility was the ability to exchange it back for gold needed a solution to their fears.
But there are a ton of fiat currencies on the planet, all of them being valued. Why? Because the base value of a currency, before it gains extra value from exchange utility, is what it can do that nothing else can. What you can't do with any other currency is pay taxes in the country you owe taxes in.
The petro-dollar is an easier pill to swallow than admitting that currency is really just a slave token used to pay taxes. And then we happen to use it for other things since everyone values not going to jail it happens to be a token that's is universally accepted as valuable.
Many politicians want to replace the USD with a digital currency called the Digital Dollar and give everyone a Digital ID.