It requires storage capacity. Acres of oil tanks are the block chain. Oil buyers full up they rush a bit to the dollar, dollar goes up. This is deflationary. The economy has already slowed, in the recent past. he slow down likely the unexpected covid jump. The deflation affects are on state and local collectors of sales tax. We are led straight into tax battle. Another half point hit on sales taxes and property taxes begins to stiung especially after their fulfillment of a bailout.
I have a hard time about this petrodollar can survive a long tax battle. And petrodollar is really competing against covid dollar. Oil is betting covid is in the past, and suddenly it is ex ante, once again. The slow down unexpected, covid caused us all add a quarter. It won't last, but the tax battle will remain. Infrastructure week will end.
Trade deficit way up, bu four points I hear, so now we are awash in petrodollars and oil.
A sudden exit from the petrodollar is scary, but not nearly as bad as a sudden exit from gold. Ultimately we produce oil. But not over any smooth manifold that predicts tax movements. The oil business is a separate partition.
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