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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

#181

Post by ars »

whatever1 wrote: post #158
gtirloni wrote: post #143

Earlier quoted context omitted.

Are you advocating for printing more USD? edit: not sure why I'm being downvoted for asking a relevant question

People outside the US love it, so no issue with devaluing the USD if we print an extra couple of trillions. The main issue is that the global supply chain cannot literally serve richer American consumers, so the cost of supply increases and everyone (in the US and out) faces inflation pressure.

If we devalue the USD all that will happen is the price of oil, as denominated in USD, will go up. You don't actually accomplish anything.

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

#182

Post by SuoDuanDao »

snovv_crash wrote: post #149
SuoDuanDao wrote: post #122

Earlier quoted context omitted.

Somewhere in my comment history I made the prediction "It will be possible to buy large amounts of oil without USD by 2024" - so I think I've got a decent track record on this subject. I'm much less confident in these predictions than that one, but I'll predict Saudi Arabia won't go off the USD because they depend on US military support in a pretty warlike part of the world and the CFA will be replaced by 2027 as cur…

CFA? What are you referring to here, not the financial certification institution I'm guessing?

had to google it too: https://en.wikipedia.org/wiki/West_African_CFA_franc

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

#183

Post by onlyrealcuzzo »

danielschonfeld wrote: post #135
jonnybgood wrote: post #98

This has nothing to do with USD dominance as many are suggesting. Ghana is running out of USD reserves and has to resort to buying with gold. Nothing suggests they wouldn’t use USD if they had it.

It has everything to do with USD dominance. Ghana is shouting out loud I can’t get my hands on USD. They’re echoing what the global market in general has been pricing. Now true, having your product be a hot commodity everybody wants is good for business but there’s only so much of that before your competitor starts offering a more readily available product. Pepper that with some morally objectionable stances the US h…

Why can't they get dollars?

I was under the impression that you can buy dollars much easier than oil.

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

#184

Post by codehalo »

ars wrote: post #180
danielschonfeld wrote: post #135

Earlier quoted context omitted.

It has everything to do with USD dominance. Ghana is shouting out loud I can’t get my hands on USD. They’re echoing what the global market in general has been pricing. Now true, having your product be a hot commodity everybody wants is good for business but there’s only so much of that before your competitor starts offering a more readily available product. Pepper that with some morally objectionable stances the US h…

> Ghana is shouting out loud I can’t get my hands on USD. That doesn't make sense - just take some gold, and buy USD. Is there some physical shortage of paper or something?

[flagged]

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

#185

Post by chewz »

simple-thoughts wrote: post #67

For people saying that this is a sign of the dollar dominance ending consider this. Gold is valued in dollars. Oil is valued in dollars. Any gold for oil exchange will be decided by the going dollar rate of each. Counter parties and middlemen assisting this trade will be hedging their positions with dollar settled derivatives traded on deep and liquid dollar markets.

Exactly... People confuse eurodollar market with dollars...

What Ghana is doing is a symptom of global liquidity crisis not a dollar crisis... Ghana cannot print dollars... It is short dollars and would rather have more then less of dollars. So this situation makes dollar more wanted not less.

Michaell Howell is an expert on Global Liquidity and does good job at explaing it.

https://hiddenforces.io/podcasts/global-liquidity-matters-no...

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

#187

Post by jkepler »

factorialboy wrote: post #178
jonnybgood wrote: post #98

This has nothing to do with USD dominance as many are suggesting. Ghana is running out of USD reserves and has to resort to buying with gold. Nothing suggests they wouldn’t use USD if they had it.

It has everything to do with USD dominance. Countries have resources thus commodities. Commodities have value. Real value. Trade in local currencies can be backed by these commodities. Necessity will force countries to find USD alternatives.

Add to this that the US Federal government has conducted numerous hot wars to protect USD dominance. Remember when Saddam Hussain and then Kadafi in Libya each started selling dollars for euros? War. https://bitcoinmagazine.com/markets/petrodollar-deep-dive-wi...

But now the US is even destroying confidence in the dollar, through its confiscation of the Afgan central bank reserves (which included private citizens' deposit accounts) and distributing the money to families of Sept 11th victims; or freezing the Russian central bank reserves, even though the international settlement system was meant to be apolitical.

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

#189

Post by giaour »

twoclicksnorth wrote: post #156
robertlagrant wrote: post #78

Earlier quoted context omitted.

Why would the US be able to stop them buying oil using their dollars?

al transactions in usd are settled in US. even if trade happens in other places. hence they have the ability.

> al transactions in usd are settled in US.

Do you mean this in some metaphysical sense? Because you can exchange USD for gods or services outside the US without the US government getting involved.

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

#190

Post by colechristensen »

jacooper wrote: post #171
danielschonfeld wrote: post #94

Earlier quoted context omitted.

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…

And this the entire problem. The dollar shouldn't be a global currency.

Why? The eurozone can’t hold itself together, China is a house of cards with bad planned economy failures, the uk isn’t worth mentioning any more, and everywhere else either has unstable economies or economies based on volatile or limited lifetime commodities.

The dollar is the global reserve currency because the US has centuries of reasonable behavior and military and natural resources that guarantee long term stability. There isn’t a better option unless you’re playing temporary political games or if your macroeconomic situation is so bad you can’t play the game normally.

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