{"id":65148,"date":"2023-03-10T17:18:36","date_gmt":"2023-03-10T22:18:36","guid":{"rendered":"https:\/\/olduvai.ca\/?p=65148"},"modified":"2023-03-10T17:18:36","modified_gmt":"2023-03-10T22:18:36","slug":"the-war-for-the-dollar-is-over-part-ii-the-fly-or-the-windshield","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=65148","title":{"rendered":"The War for the Dollar is Over Part II: The Fly or the Windshield?"},"content":{"rendered":"
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The War for the Dollar is Over Part II: The Fly or the Windshield?<\/a><\/h3>\n<\/header>\n
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Live images flashing by
\nLike windshields towards a fly
\nFrozen in that fatal climb
\nBut the wheels of time, just pass you by
\n-RUSH, \u201cBetween the Wheels\u201d<\/p>\n<\/blockquote>\n

In part I of this series<\/a>\u00a0I told you the war over the US dollar was over because the bane of domestic monetary policy, Eurodollar futures, lost the battle with SOFR, the new standard for pricing dollars.<\/p>\n

The ignominious end of the Eurodollar system is a study in the evolution of markets, as a new system replaces an old one. Old systems don\u2019t die overnight. We don\u2019t flip a switch and wake up in a new reality, unless we are protagonists in a Philip K. Dick novel.<\/p>\n

More than a decade ago I looked at the responses to President Obama cutting Iran out of the SWIFT system as the beginning of the end of the petrodollar system. The goal was to take Iran out of the global oil markets by shutting Iran out from the dominant dollar payment system.<\/p>\n

Out of necessity Iran opened up trade with its major export partners, most notably India, in something other than dollars. India and Iran started up a \u2018goods for oil\u2019 trade, or as Bloomberg called it at the time,\u00a0\u201cJunk for Oil.\u201d<\/a><\/p>\n

The stick of sanctions created a new market for pricing Iranian oil and a way around the monopoly of US dollar oil trading. India, struggling with massive current account deficits because of their high energy import bill, welcomed the trade as a way to lessen the pressure on the rupee.<\/p>\n

Iran needed goods. They worked out some barter trade and the first shallow cuts into the petrodollar system were made.<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The War for the Dollar is Over Part II: The Fly or the Windshield? Live images flashing by Like windshields towards a fly Frozen in that fatal climb But the wheels of time, just pass you by -RUSH, \u201cBetween the Wheels\u201d In part I of this series\u00a0I told you the war over the US dollar […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[9750,21273,16963,839],"class_list":["post-65148","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-eurodollar","tag-gold-goats-and-guns","tag-tom-luongo","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65148"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65148\/revisions"}],"predecessor-version":[{"id":65149,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65148\/revisions\/65149"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}