One important thing to remember is that dependence on fossil fuels HUGELY benefits the US. Currently, all oil transactions are conducted in US dollars. Thats the reason we can afford to go TRILLIONS of dollars into debt without flinching. Undermining that arrangement is in China's best interest
Lower oil demand is very bad for Putin.
The book ("This Time is Different') is very dull and very important
The dollar is a reserve and transaction currency. A common (if incorrect) belief is that reserve currency status is needed for borrowing. This wrong. The UK, Sweden, the Euro area, Japan, Switzerland, etc. borrow in their own currencies. See the book by Eichengreen.
I get it, but borrowing isnt what im talking about.
You wrote "Thats the reason we can afford to go TRILLIONS of dollars into debt without flinching"
Ah, i thought that might be what you were referring to. Still, not my point, but interesting distraction. Yes, US will still be able to issue debt, but no one will be compelled to buy it.
However, their are "problems". China's government opposes reserve currency status for their currency. China does not appear to have the deep financial markets the US has. In addition, China is not a democracy. Some folks argue that the world will not accept a reserve currency issued by such a state.
Nevermind that its currency is "pegged" to a basket of other currencies.
China's currency is not the reserve currency of the world and may or may not be the reserve currency of the world in the future. Based on GDP and international trade, China is highly qualified.
No, but china wouldnt have to buy dollars to buy oil if it relied less heavily on it.
It unclear how much Japan (or more relevantly China) would benefit from using their own
Using their own currency to buy oil? If oil is irrelevant, the question is meaningless.
We live in an era where oil is quite important. Around 1/3 of the world's energy comes from oil. The US is a bit above average in using oil (more so in natural gas). China is below average in using oil. China has relatively little natural gas.
Reading through your profile. You're just an instigator, arent you? Muting you're account now. Good luck, bro.
China is also very interested in undermining U.S. economic hegemony. We arent friends, afterall.
No one (including institutions) is ever compelled to buy debt. However, many countries (the UK , Japan, Switzerland, etc.) find buyers for their debt even though their currencies are not the reserve currency.
No one is compelled to by debt....money IS debt. To buy oil, Japan MUST by US dollars.