Why the World Doesn’t Need Dollars for Oil Anymore

Economies’ rise and fall have always been closely tied to access to abundant energy. In fact, the correlation between GDP and energy consumption per capita is so close, it is the same thing. This relationship makes sense. Energy allows humans to outsource their labor to focus on more productive tasks, and today, our oil-based global industry that transports and creates and is the materials for everything we use today is what has allowed us to create so much wealth and prosperity and access to cheap necessities worldwide. It makes sense then that if you can somehow tie your value to the value of oil, which is the predominant energy source today, that would benefit you. And in fact, the U.S. tying the dollar’s value to oil gave the United States one of the greatest advantages in history, maintaining control over the global reserve currency. Timecodes 0:00 The Correlation between GDP and Energy Consumption 1:47 The Tie between the value of oil and the U.S. dollar 2:07 The O