The "What is Money?" Show cover image

The Secrets of Global Finance Explained with Luke Gromen (WIM445)

The "What is Money?" Show

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Impact of Oil Decline on Global Finance

Exploring the interconnectedness of oil production, financial systems, and global trade, the chapter discusses the potential consequences of a decline in oil production on Saudi Arabia's export capabilities, oil prices, and the global economy. It highlights the cascading effects of declining purchasing power of bonds traded for oil, prompting a rush to divest bonds for assets retaining value relative to oil. The conversation delves into strategies like allocating foreign exchange reserves into gold and considering a potential scenario of hyperinflation of US treasuries against oil on a global scale.

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