Some commentary on the Petrodollars.
Between 1973 and 1981, Opec spent just 52 per cent of its oil revenues on imports. Today, with larger populations and undeveloped infrastructure, Opec member countries are attempting to spend productively at home rather than save abroad.
What of the remaining $125bn? An amazingly small proportion has gone into US Treasuries – just $10bn, according to official figures. However, other data suggest something in the order of another $25bn has been spent on US equities, corporate bonds and government agency debt.