How would the US react to the collapse of the Petro-dollar system?

The petrodollar system entails that oil can be bought or sold only in dollars.
As a result, most countries need (a) to acquire dollars through trade with the US and (b) to keep reserves of dollars in order to meet their oil demand. The net effect is to create global demand for dollars which is anchored in global demand for oil.

Global demand for dollars creates upward pressure on their value which protects (to some significant extent) against losses in purchasing power associated with inflation. This allows the US to pursue policies which might otherwise erode the value of the dollar and accrue large debts without foreign creditors losing confidence in the value of the repayments.

Countries which have attempted to leave the petrodollar system by trading oil in other currencies (Iraq and Libya) have shortly afterward been targeted by the US in military interventions. Some commentators have posited a connection, arguing that the real goals of US foreign policy are to protect the petrodollar system rather than to locate WMDs or fight terrorism. Whether or not this view can be substantiated, it is probably true to say that the collapse of the petrodollar system would be very damaging to the US economy.

Inflation would increase substantially, increasing the cost of business and the cost of living. Foreign countries may no longer be willing to accept dollars in exchange for their exports to the US. This would adversely affect import-based industries. Additionally, foreign creditors may lose confidence – impairing the ability of the US to roll over or its national debt. This could lead to a default, an inability of the government to meet social security obligations and possible civil unrest. In order to offset these effects the US may try, as has been said already, to become more self-sufficient and less dependent on foreign imports. This could be achieved through reversing the balance of trade; shifting from an import-based consumer economy to an export-based manufacturing economy. However, kickstarting a manufacturing base within the US may be difficult as this requires investment and with dollars losing purchasing power, there would be little capital available to invest.

Just my two cents (no pun intended)

Why Louisiana Stays Poor

With all Louisiana’s wealth in natural resources and industry, WHY DO WE STAY SO POOR?

Comments

Wow, as an outsider (not from Louisiana) I’ve visited the state numerous times, and the impression is always the same—shocking poverty and decay. I’ve always thought of Louisiana as an under-developed state that has just been passed-by the 20th & 21st Centuries. To learn that economically, it’s a very wealthy state with huge economic production and growth from which residents are deriving little to no benefit SCREAMS exploitation. This is a clear lesson in the vital importance of taxes and how they are used.

 

I am a native Louisianaian. If the people would stop electing and re-electing corrupt politicians we could be such a better state. Louisiana is a fantastic state but corruption has ruined us.
I remember working at a hotel when I lived in New Orleans and met a man from there that had moved to Colorado. He told me prior to moving to Colorado he never left Louisiana and thought it was the best state ever. He then said “I got so use to seeing the clean interstates and meeting nice people in Colorado, I came back here to visit 3 years later. I looked around and realized this is a NASTY ass city with no opportunities I can’t believe I stayed here most of my life”. He was happy he left and at that moment I started a plan to leave. I’ve been gone for 4 years and never going back.
The world’s shortest book is entitled “A List of Honest Louisiana Politicians.”
This is why I moved to Texas 16 years ago. EVERY citizen in Louisiana needs to see this. Thank you so much for making this video.
This is absolutely amazing I live in Louisiana and I am one paycheck away from being homeless and corporations get away with murder this absolutely sickens me
“If the wealth of a nation is mostly dug out of the ground, it is a terrible place to live, because a gold mine can run with dying slaves and still produce great treasure.” -CGP_Grey [Rules for Rulers] Corollary: Great places to live are founded on the economic strength of happy productive citizens.
Great video. Another thing to keep in mind is Louisiana has some of the highest sales tax rates in the country, and they are high partly to make up for the lost property tax revenues. Sales taxes hit the poorest the hardest.
I cried watching this. I was born and raised here. I’ve watched my friends and family vote consistently for politicians who sell them out. They worship Industry and Big Oil, they think bending over & letting the big companies have their way is the only path to economic opportunity. I have such a deep connection to this land, such a love and appreciation for it, but I just can’t be here anymore. I can’t watch the thing I love and cherish be ripped apart and torn asunder so greedy politicians and corporations can glean every last drop of wealthy we have.
I’ve lived in Gonzales, Louisiana my entire life. I can count on one hand the times I’ve left the state longer than 48 hours in my 21 years. Honestly until seeing this video I’ve felt very optimistic about living in this state, and have always wanted to come back home anytime I leave. I grew up thinking we were one of the best states because the amount of plants ascension pairsh, and neighboring parishes have to then see/hear all of this. It’s a real slap in the face, and we all deserve better. If it wouldn’t for me honestly not having the means to leave, and how much I love my community I’d leave. The other states I’ve been too not every so I don’t know for sure the people aren’t as kind, nore hospitalitie as us in Louisiana are. My take on all of this is that we as citizens of this great state need to fight for our share of what WE ALL put in with taxes. Let’s not forget the men, and women working the plants who have some pretty dangerous jobs who are nothing but numbers. Finally how about all of us who don’t work in that industry? We have the Devine “privilege” of breathing, smelling, and for some living in such close proximity to them all. For that alone we deserve some sorta system related to Alaska where it’s citizens get a percentage of the revenue in OUR pockets, and more importantly that these multi billion, maybe trillion dollar companies pay AT LEAST a fair share of the property value/profits!!!!
Great video… I went to school in Louisiana, now living in Texas. I’ve always been amazed at the stark contrast in infrastructure… as soon as I cross the border from Texas into Louisiana, the roads are noticeably inferior. I’ve never been able to explain this, since both states have similar natural resources… this video makes sense. Thank you for doing this.
As an immigrant I feel this video resonating with the reasons we leave our counties, it’s not because we are land poor without the beautiful riches nature has to offer but because they are poorly managed and hoarded by a small corrupt few. Louisiana looks more beautiful, and I regret not going out during the reconstruction after Katrina and offering my little grain of sand when I had the chance.
And don’t forget Louisiana’s “cancer alley”, where the rates of cancer are significantly higher than the national average. This is so bad that it was used as a case study in one of my environmental courses for how bad out of control pollution can get.
I’m from western New York and this just stuns me. I thought the disparity and corruption is bad here but it doesn’t hold a candle to this. I hope the people of Louisiana get justice and a properly funded future!
it’s amazing that corporations can be exempt from property tax but that individual’s homes cannot.
My uncle served in the Air Force in Louisiania and absolutely loved that state, but he was shocked by the poverty and the rampant corruption.
This was an outstandingly professionally produced video.
As someone who works in data, great job keeping this data driven and factual and not based on “Feelings”. Its very easy to follow your research and understand a cause and effect relation. I’m not from Louisiana but I’m from another “traditionally poor state” – Michigan and I think some of the problems you face are some of the same ones we also face. I hope your politicians can turn it around.
It wasn’t until I moved away from Louisiana that I realized how bad the situation was there. I love my people, but it is too hard for me to see them taken advantage like this and just roll over for it. All of this wealth rightfully belongs to the people of Louisiana, but they don’t even realize it. Honestly, once my mother passes away, I probably won’t ever return to the state. It’s too heartbreaking for me.
As a foreigner living in the US, I’ve always wondered why the “South” is always so poor. This explains so much. Thank you for explaining this.
So glad to know you exist and are fighting against these inequities with great skill, and showing some results! It gives me hope for the state where family and friends still live. I left Louisiana decades ago for college out of state. I saw how other states operated and never seriously considered returning. I sadly began to see Louisiana a a state operating much like a Central American kleptocracy, but embedded in the US. Even the most corrupt other states had nothing on Louisiana.
This is absolutely terrifying. I honestly wonder if Louisiana’s natural resource infrastructure and tax exemptions are part of the reason why school privatization was pushed so hard in New Orleans after Katrina hit.
I’m German, could care less and stumbled upon this video by accident – but my God did they do a good job in presenting this!!! One of the best visualizations and presentations I’ve ever come across and I work in white color automotive. Congratulations! Hope this had the wanted outcome and the situation has gotten better for the people …
I tend to be one of the last to support a tax increase, and being Louisiana, my initial thought was of corruption and levee funding being diverted. But this is a very solidly argued point that Louisiana went way too far in practically exempting industrial properties from property taxes. Then my next reaction was that there was no way the political fight would be won so I was pleasantly surprised to see the progress shown at the end. Congratulations to you guys for helping to create a significant improvement in public policy! Now I hope the money will be well-spent.
With those property tax exemptions, there’s also the point of them not paying for services and public right of ways that they need to operate. More dense development typically is the only property that returns more than it costs cities to maintain. This means not only are the urban poor subsidizing suburban development, but they’re subsidizing the giant corporations they work for. And they’re not even paid a fair living wage to begin with due to deregulation.
Let me just take a wild guess and say that practically everything has gotten worse and almost nothing has gotten better for Louisiana residents since this video was produced. Get out while (if) you still can. I’ve struggled here my whole life and I’ve finally had enough. I’m selling my possessions and moving away with whatever fits in my beat up 90’s car as soon as I can manage it, and I will never look back.
I’m from Mississippi, a genuinely poor state with poor natural resources and high corruption – not so much on the corporate-political level, but rather internally to our politics. Both sides of the government participate in these practices, and its no wonder that our state remains poor. Whenever I cross over into Louisiana, however, I’m always shocked at how destitute things are. Like this video states, there are so many reasons that Louisiana should be one of the richest states in the United States, and I’ve been aware of them for a long time. It’s baffled me for years that a state so strategically placed and rich in natural resources could possibly be on a level of poverty like Mississippi. Now I know why, and it breaks my heart to see a state that could be so prosperous falling to corruption and poverty that has no business being in it. Unlike Mississippi, there is no excuse for Louisiana to be at the bottom. I sincerely hope this changes.
You think those good ol’ boys on the state board might be getting some kick backs from all those tax exemptions they hand out so freely ?
Having lived in Alaska, where every citizen received a yearly dividend from investment of oil lease fees, this is sickening to hear. Louisiana should be one of the most flush states in the nation if it weren’t for trickle-down economics and tax breaks for the wealthy. The impact of these industries should be beneficial to the area not debilitating. The bottom line is that the people of the state of Louisiana are paying (or losing out on) the taxes that should be spread out to all the consumers. Good luck to all in Louisiana, I hope you finally get this corrected.
“No one will really understand politics until they understand that politicians are not trying to solve our problems. They are trying to solve their own problems – of which getting elected and re-elected are number one and number two. Whatever is number three is far behind.”
OMG, I had no idea how bad this was. I lived in New Orleans, Louisiana for 10 years. I actually left because of lack of opportunities, widespread poverty and lackluster healthcare system. I also knew that my life expectancy would go down drastically if I stayed. I did develop endocrine health issues during and and immediately after living there. It took 10 years to figure out what was wrong with me. My DNA may have been predisposed to these problems, but maybe they may never have come up if I never lived there.
This could also be useful to show to the decision makers in most other states if nothing else to show what not to do.

But how does bitcoin actually work? (2017)

The math behind cryptocurrencies.
Help fund future projects: https://www.patreon.com/3blue1brown
An equally valuable form of support is to simply share some of the videos.
Special thanks to these supporters: http://3b1b.co/btc-thanks
This video was also funded with help from Protocol Labs: https://protocol.ai/join/

Some people have asked if this channel accepts contributions in cryptocurrency form. As a matter of fact, it does:
http://3b1b.co/crypto
ENS: 3b1b.eth

2^256 video: https://youtu.be/S9JGmA5_unY

Music by Vincent Rubinetti: https://soundcloud.com/vincerubinetti…

Here are a few other resources I’d recommend:

Original Bitcoin paper: https://bitcoin.org/bitcoin.pdf

Block explorer: https://blockexplorer.com/

Blog post by Michael Nielsen: http://3b1b.co/crypto
(This is particularly good for understanding the details of what transactions look like, which is something this video did not cover)

Video by CuriousInventor: https://youtu.be/Lx9zgZCMqXE

Video by Anders Brownworth: https://youtu.be/_160oMzblY8

Ethereum white paper: https://goo.gl/XXZddT

 

Other Videos by video creator

 

Comments

this was awesome! I was having trouble on understanding the nodes vs. miners as well as the random number / difficulty adjustment but this totally cleared it up!
It’s an extremely information dense lecture. You have to watch portions of it again and again to grasp the underlying concepts. But once you’ve finished it, you feel so damn confident.
5 years later and I still comeback to this Blockchain explanation to check if my understanding, love it
You have no idea how much I’ve tried to find an article or video actually explaining how cryptocurrencies work. Everyone else just goes around with analogies. They probably don’t understand fully themselves. Thanks man.

 

This is the clearest video I’ve ever seen, and I still don’t get it.
10:00 “The history of transactions is the currency” interesting Edit: 17:30 I love how I now know what a block chain is, and it wasn’t as mind blowing as people on the internet made it seem. And I’m pretty sure blockchains are done in introductory coding courses. (Though not as complex). Edit 2: 18:25 so THAT’S why mining is profitable. I get it now. That circles back to the claim made ~10 mins in. Edit 3: 21:15 So, bitcoin ‘authority’, in essence, is computing power, and bitcoin ‘identity’ is the a blockchain made by the original owner? Great video. As you can see I am still shaky on complete understanding, BUT this was the only useful explaination of Bitcoin and crypto I’ve seen so far (for me). So I am greatful. and maybe this will lead me to understanding others.
Prior to watching this I didn’t really understand the link between mining and validating the transactions. Its quite interesting how the system can self-adjust to make sure that mining\validating is always profitable, and therefore even if there is a big crash in mining profitability it should just result in a slowdown of transactions until the system balances. I guess the issue is that there is a big problem if the coin is used for real large scale commerce\business that rely on guaranteed volume. If a large enough proportion of bitcoin transactions were for real vital goods and services, then a crash in mining profitability could drive he value to zero since the value would be much more tied to the amount of volume the system can handle. Lack of trust could continually inflate it, which would then continually make it harder to restore validation capacity. Volatility is an issue for real world business even if the overall trend is continually upwards. If I am correct, then it would suggest that bitcoin will remain a speculation asset and a store of value rather than a replacement for sovereign currencies?
at around 20:30, theyre discussing how it isnt viable for Alice to try to commit fraud because she cant out-compute the other miners on the network all by herself. could someone explain what would happen if a group of miners (that formed the majority of the network) decide to commit fraud together?
>>  It’s 100% possible. And in fact, the top 4 miners of bitcoin have more than 50% of the network’s total hashing power. However, if you have 50% of the total mining network’s computation, you’re probably better off using it to make ~$2.2 Million a day with honest mining than you to defraud a single individual.

 

>> the specific name for this scenario is a “50% attack”