CNBC has the article China will ‘compel’ Saudi Arabia to trade oil in yuan — and that’s going to affect the US dollar.

“I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” Carl Weinberg, chief economist and managing director at High Frequency Economics, told CNBC

Don’t worry, Trump will fix this. What do you think will happen if we try to do to China what we did to Libya when they wanted to only accept an Arab currency backed by gold for oil.

If you want to check out what I said about Libya, read the Foreign Policy Journal article Hillary Emails Reveal True Motive for Libya Intervention.

Another thing to consider is the explanation that Modern Money Theory gives about the policy flexibility a country like the USA has because it is sovereign in its own currency. If we get forced into trading in gold or someone else’s currency all this gets knocked into a cocked hat. Wouldn’t it be a shame to lose that policy flexibility before we ever got to use it? As MMT says, we will never run out of USA dollars to buy whatever we want that is for sale in USA dollars. The problem comes when there are things we want to buy that are not for sale in USA dollars. This is the real reason our politicians would be willing to go to war.

I have many posts on Modern Money Theeoty, but perhaps the easiest overview comes in Seven Deadly Innocent Frauds of Economic Policy.