The Importance of Inflation in the United States

There was a huge surplus of oil dollars floating around in the world economy that just ended up going into western banks. The United States negotiated with Saudi Saudi Arabia government to say you know will trade you discounted bonds US government bonds as well as weapons if if oil is denominated in dollars. At the same time in the United States and other western countries you had really high inflation at this timereally slow growth which economists sometimes call stag flation.