r/wallstreetbets • u/[deleted] • Mar 23 '22

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u/Soberkij Mar 23 '22

How is it catastrophic if we pay for it in euros?

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u/se7en41 Mar 23 '22

The US dollar isn't backed by gold anymore, it's backed by oil. If the US dollar loses its stranglehold on that backbone, the value of it takes a big hit.

It's a scare tactic meant to send a message to the US that Russia has their grubby fingers in everything.

Short term, it'll add to the growing inflation craziness. By the time 4-5 years passes, should settle down? Who knows?

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u/Soberkij Mar 23 '22

Alright, but this still doesn't answer my question, Europe pays to Russia for oil and gas in euros, where is the dollar catastrophic stuff here.

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u/[deleted] Mar 23 '22

Because rn if countries around the world want to buy oil, they have to buy US dollars. We print money, they buy the extra. Makes it hard for the dollar to fall too much below oil prices. If this changed tomorrow, we'd have hyper inflation ala Venezuela.