Imagine the scenario. It’s 2025 and the volume of home-produced oil is so great that the US is near energy independent as far as crude imports are concerned.
With that energy independence, the amount of dollars flowing out of the US and over to net energy producers (and traditional dollar reserve hoarders) such as Saudi Arabia, Russia and Mexico has come crashing down.
So how would such a dollar-flow contraction affect the global economical and political balance?
According to Citi’s credit team, it would likely affect things a lot.…The Financial Times — FT Alphaville
On the hypothetical eventuality of no more petrodollars
Izabella Kaminska
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