Spot on Beau! Years ago in the Army we had training on Soviet disinformation/misinformation tactics and you laid it out beautifully. Thank you!
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)
With all Louisiana’s wealth in natural resources and industry, WHY DO WE STAY SO POOR?
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.
“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.”
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:
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
Commentsthis 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 itYou 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”