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Ghana plans to buy oil with gold instead of dollars

aljazeera.com

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Re: Ghana plans to buy oil with gold instead of dollars

#91

Post by edwnj »

dmitriid wrote: post #80
edwnj wrote: post #29

Earlier quoted context omitted.

As for what happens next: de-globalisation I predict we'll see blocks forming up again, something like: - West (US+EU) - East (China+Russia) - India (India, Sri Lanka, Himalayan States, South China states) - Middle (Middle East+North Africa) - Latam (Central + South American States) One wild card IMO would be the rise of the Indian sphere of influence. I'll leave some room for India's remarkable ability to snatch def…

> East (China+Russia) People that keep bunching Russia with China are deluding themselves that Russia is anywhere on China's radar except as a source of cheap resources (gas, oil, wood)

Russia is a UUUUGE strategic geopolitical ally for China.

In a de-globilised world split into spheres of influence, Russia would be a foothold into Europe.

Cheap resources cant be discounted, China has duck all for resources. It imports everything (raw nat resources) and its current source Australia is not an ally.

Re: Ghana plans to buy oil with gold instead of dollars

#92

Post by UltraViolence »

kaladin_1 wrote: post #3

Interesting the pressure is increasing. More and more countries questioning why they need to base their foreign transaction on the US Dollar. Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. Also, some of these Nations can no longer determine what benefit it is to them is using the US Dollar as their reserve currency and trading currency…

Saudi Arabia isn't going off the USD. That would seriously undermine their relation with the U.S. and could even have them branded an antagonistic nation.

The dominance of the USD is EXTREMELY important to the U.S. and I can assure you that Washington is even willing to wage war over it.

But I believe the ball has already started rolling with Bitcoin and Russia's demand for payment in Rubles.

Re: Ghana plans to buy oil with gold instead of dollars

#94

Post by danielschonfeld »

norswap wrote: post #63
kaladin_1 wrote: post #3

Interesting the pressure is increasing. More and more countries questioning why they need to base their foreign transaction on the US Dollar. Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. Also, some of these Nations can no longer determine what benefit it is to them is using the US Dollar as their reserve currency and trading currency…

> Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. This is completely backwards. The problem right now is that the dollar is too strong , meaning expensive wrt other currencies. In this context, inflation of the USD supply, leading to devaluation of the USD would actually help other countries that are suffering from the strong dollar. I'…

And there in lies the rub. To keep countries placated we need to create more debt, a metric ton of more debt and hence more broad currency. But doing so at the moment is political suicide as is proven by the left's efforts (deficit spending blah blah etc).

Triffin paradox predicted in the 60s at it's full glory.

It's also worth noting that at the moment both the Fed and the Treasury (obv) are mandated to be operating with an inward looking view only. Meaning we run a global reserve currency with no 'department' in charge of the global part.

Re: Ghana plans to buy oil with gold instead of dollars

#95

Post by andsoitis »

tremarley wrote: post #56
fendy3002 wrote: post #23

Earlier quoted context omitted.

I wonder if they can use it? As a noob I see that crypto value is very volatile and don't have intrinsic value, unlike gold that somehow is accepted universally as valuable.

It has intrinsic value as it requires work to mine it. It is impossible to generate more whenever you want. You can spend bitcoin in every country, it's valuable everywhere.

> It has intrinsic value as it requires work to mine it.

All work isn’t equally valuable. Some work is worth nothing.

> It is impossible to generate more whenever you want.

Value and wealth do not only arise from scarcity.

Re: Ghana plans to buy oil with gold instead of dollars

#96

Post by oj2828 »

UltraViolence wrote: post #86

We'll see the dominance of the USD erode in the next three decades is my prediction. Look at how successful Putin was in demanding payment for Russian oil in Rubles. It has propped up the Ruble enormously and its predicted collapse hasn't occurred. In fact it has rallied. I assure you that other nations have taken note and will take similar steps in the future. Other commodities may well be priced in local currencies…

Russia had to raise interest rates to 20% to achieve the recent appreciation. Russia is giving up economic growth for the foreseeable future to prop up its currency. I doubt many countries are eyeing a similar move

Re: Ghana plans to buy oil with gold instead of dollars

#97

Post by Zigurd »

kaladin_1 wrote: post #3

Interesting the pressure is increasing. More and more countries questioning why they need to base their foreign transaction on the US Dollar. Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. Also, some of these Nations can no longer determine what benefit it is to them is using the US Dollar as their reserve currency and trading currency…

The reason US$ denominate most trade is that without what is broadly referred to as "The West" global trade would not move. Trade would not be protected by a web of alliances among developed nations. If that goes away, ships would not be insured. Uninsured ships would be lost to pirates and rogue nations. Prices would jump sharply. Supply chains would have to go back to warehousing enough supply to withstand disruptions. Warehoused parts would become stranded assets when products change. Growth would be choked off.

This is not an excuse for imperialism and crony capitalism that exploits developing nations. Especially in how multinational oil companies corrupt entire nations. Working toward the end of fossil fuels will hasten them losing their power. But the lesson of this year is that those dull bureaucratic things like NATO and the EU are what keeps fascistic autocrats contained and gives aggressor nations the thrashing they deserve.

Even the Tories are realizing they got played by Putin's plan to divide the nations that could hold him back.

Re: Ghana plans to buy oil with gold instead of dollars

#99

Post by luciusdomitius »

kaladin_1 wrote: post #3

Interesting the pressure is increasing. More and more countries questioning why they need to base their foreign transaction on the US Dollar. Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. Also, some of these Nations can no longer determine what benefit it is to them is using the US Dollar as their reserve currency and trading currency…

The petrodollar is a really weird thing. According to its critics, it is a global monopoly on violence and pure extortion, to its implementors - merely a conspiracy theory. Please, before you clinge to the conspiracy theory label, check how many great people such as de Gaulle have whined against it and what is Privilege l'exorbitant in French political science.

In reality, global trade is not in USD purely because it is backed by carriers and they can invade anyone, but because this navy also protects shipping lanes and offers international rule of law. Remember when the US took a break in the gulf of Aden and it took us Europeans (+Russia and token help from US!!) years to agree and secure it. So, things are not black and white.

Anyway, this system is collapsing from within and will be replacing. The success of the S.Arabia pivot is going to merely decide if it happens in 10 or 20 years time. Btw does anyone know how did the MBS-Xi meating go?

Re: Ghana plans to buy oil with gold instead of dollars

#100

Post by pirate787 »

UltraViolence wrote: post #92
kaladin_1 wrote: post #3

Interesting the pressure is increasing. More and more countries questioning why they need to base their foreign transaction on the US Dollar. Could this mounting unrest be as a result of the seeming inability of the US Federal bank in checking inflation of the US Dollar. Also, some of these Nations can no longer determine what benefit it is to them is using the US Dollar as their reserve currency and trading currency…

Saudi Arabia isn't going off the USD. That would seriously undermine their relation with the U.S. and could even have them branded an antagonistic nation. The dominance of the USD is EXTREMELY important to the U.S. and I can assure you that Washington is even willing to wage war over it. But I believe the ball has already started rolling with Bitcoin and Russia's demand for payment in Rubles.

LOL Bitcoin is a joke, its down 65% against the dollar this year
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