The Dollar is backed by oil
The dollar is backed by us being the reserve currency of the world and our ridiculously mature and diverse economy.
I think the petrodollar theory is crap honestly. I've been hearing it for 20 years and longer. This oil market was an even smaller share of the world market trade at that time.
How long does it take to trade oil in Euros or yen or anything else? Seconds in the modern international commodities market. Russia news says every few years they are about to do it! The idea is a short term threat for that sitting US president, but there is no long term threat (more on that in a second).Russia could move to Euros or anything else now, today.
The real goal is that these actors would like to move to a novel currency that rides an international average and not a single economy. They wish to guard against speculation and wild flux in their ability to move in and out of their reserve currency, lest they see their banks break like the bank of england.
Does trading in Euros hurt the US?
Sure short term as people will move a small portion of their reserves to Euro. But the vast majority of their reserves will remain in which ever economy will hedge their own currency against risk.
Long term the petrodollar idea ignores the fact that there are gold, copper, natural gas, etc etc etc markets. Oil is hardly the only thing traded and no one is calling for the theory of the "wheatdollar"
What hurts the US dollar a lot more? Well when everyone holds your currency the risk is domestic.
If we devalue our dollar and just print off a ton to pay the debts, we will be debt free. But doing this all at once hurts those that hold our reserve currency.
On the other hand, we will never forfeit on a debt as we can increasingly pay debt with ease as our economy goes down. We have a (unfair?) built in buffer with this privileged position. That is entirely independent of oil.
People just can't accept that their government are essentially evil gangsters.
Sure I can.
As I mentioned, handouts to the likes of Halliburton, geopolitical strategy, etc. are all much more likely.
We went into a myriad of countries in South America that didn't and weren't expected to provide oil.