'De-Dollarization' is happening, but it doesn't have the effect you might think.

The trend of global "de-dollarization" is happening, but ironically it's boosting the dollar, not hurting it.

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Mike Norman Twitter

[patriciaaustin]

Thank you for sharing this. I always learn so much

[acsjr]

Mike thanks for taking my suggestion to talk about the USD.

[Fred-lump]

I don't understand how you can keep saying the US is a net exporter of oil. The EIA says the US consumes about 20 mbd, and we produce about 11.5 mbd. How does this equate to a net exporter? Mike, I always appreciate your sharing of knowledge and wisdom here, I've learned a LOT from you.

[Nhoj]

"The crisis now unfolding, however, is entirely different to the 1970s in one crucial respect… The 1970s crisis was largely artificial. When all is said and done, the oil shock was nothing more than the emerging OPEC cartel asserting its newfound leverage following the peak of continental US oil production. There was no shortage of oil any more than the three-day-week had been caused by coal shortages. What they did, perhaps, give us a glimpse of was what might happen in the event that our economies depleted our fossil fuel reserves before we had found a more versatile and energy-dense alternative. . . . That system has been on the life-support of quantitative easing and near zero interest rates ever since. Indeed, so perilous a state has the system been in since 2008, it was essential that the people who claim to be our leaders avoid doing anything so foolish as to lockdown the economy or launch an undeclared economic war on one of the world’s biggest commodity exporters . . .
And this is why the crisis we are beginning to experience will make the 1970s look like a golden age of peace and tranquility. . . . The sad reality though, is that our leaders – at least within the western empire – have bought into a vision of the future which cannot work without some new and yet-to-be-discovered high-density energy source (which rules out all of the so-called green technologies whose main purpose is to concentrate relatively weak and diffuse energy sources). . . . Even as we struggle to reimagine the 1970s in an attempt to understand the current situation, the only people on Earth today who can even begin to imagine the economic and social horrors that await western populations are the survivors of the 1980s famine in Ethiopia, the hyperinflation in 1990s Zimbabwe, or, ironically, the Russians who survived the collapse of the Soviet Union."

[annabellelee]

Of course it's boosting the dollar until countries get rid of the majority of their dollars. Countries are not buying US debt and countries are spending the dollars to get rid of them. The US is in a hell of a lot of trouble and it will get worse when all those dollars come home.

[josephlee]

damn...that's a helluva analysis on de-dollarization and "energy independence." thank you

[harperonline]

I knew oil was priced in dollars but this was one of those 'Oh, yeah' moments when you said this. The dollars will flow back into the US when they buy the oil from you and that will increase the amount of dollars in the US circulating? If this went back to the government it would be destroyed as the government doesn't need the dollars. Is this just to the private energy companies in the US that get the dollars? Great insight as always, Mike. Everyday is a school day and a day where you don't know more than you did yesterday is a wasted opportunity.

[encepurdy]

Glad I moved my 401 back into cash last Wednesday

[superarsenal]

The link to your website redirects me to the google play store.

[KevinWayne]

Personally I think calling "net exporter" with energy independence is just another Trump-publican old "shill" game 😉

[getodaca]

yes it absolutely has. Just not as fast as people think. the US has 30 trill in debt snd they can never pay it back.the only question is when will the that liberal s-hole tank? 5 years? 10 years? anyway the US now losing the unipolar power position in the world after losing big time in ukraine and that will be the first step for the crash of the US. so probably another 5-20 years.