Bloomberg acknowledges that the US war on Iran is backfiring, undermining the petrodollar system that gives the US empire so much power.
https://x.com/BenjaminNorton/status/2041313140462473495
Bloomberg acknowledges that the US war on Iran is backfiring, undermining the petrodollar system that gives the US empire so much power.
Gulf regimes are exporting significantly less oil, and they're not reinvesting those petrodollars in US assets.
Meanwhile, many foreign central banks have been selling US Treasury securities (US government debt) to prevent their currencies from depreciating, leading to US bond yields rising markedly -- not falling, as they typically did in past crises, when investors engaged in a "flight to safety". The US financial sector is losing its perception of having "safe haven" status.
This means that both key aspects of the petrodollar system are breaking: there are fewer oil exports in dollars (Iran wants oil to be traded in Chinese yuan), and there are fewer petrodollars recycled into US financial assets.
posted by Satish Sharma at
07:38
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