AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
1min snip
The Secrets of Global Finance Explained with Luke Gromen (WIM445)
The "What is Money?" Show
Utilizing Gold to Maintain Purchasing Power in International Trade
By using gold as a buffer in international trade, countries can leverage it to maintain their purchasing power, especially when dealing with energy producers. This strategy involves trading in euros to secure oil from Arab producers and then utilizing the euro surplus for buying goods like luxury cars and watches. Eventually, as the euro value decreases due to extensive printing, the value of gold in euro terms increases, ensuring the purchasing power for acquiring goods like airplanes and luxury vehicles is preserved. This approach creates a favorable trade cycle and incentivizes oil producers to accept the euro as payment, ultimately aiding in managing energy crises and sustaining purchasing power in international trade.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode