The Billion Dollar Question: With the cheap oil prices, what happens to excess foreign dollar reserves?
dwalters Sun, 12/20/2015 - 18:43
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The petrodollar system - which supplanted the international dollar gold standard - requires that oil be purchased in US Dollars. However, with the price of oil dwindling, foreign dollar reserves need not be spent solely on Texas Tea. Certainly, it'll be burning holes in pockets. So, where will the money go?
If it begins landing back home, a Dollar won't be worth a Continental.
Meanwhile, silver seems very attractive.
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