Ghana plans to buy oil with gold instead of dollars

Post by delecti » Fri, Nov 25, 2022, 8:44 PM UTC

jkepler wrote: post #204

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…

Doesn't help that the US seems set on destroying the world's confidence in the US dollar: first the 2008 financial crises and monetary creation (I.e. devaluation) in response; then much more recently they hammered nails in the coffin of Breton Woods 2 (I.e. the post-1971 monetary status quo of floating fiat currencies) by confiscating the Afghan Central Bank's reserves (which included private individuals' deposits, a…

Post by themihai » Fri, Nov 25, 2022, 8:47 PM UTC

thaumasiotes wrote: post #174

themihai wrote: post #130

Earlier quoted context omitted.

>> The Fed decision wasn't important to energy costs anyway, though. Of course it was. Rate hiking makes the dollar more expensive for anyone buying dollars(to pay for the oil). Were they dealing with gold they would not have this issue. Not to mention if the buyer is a gold producer.

So what? Rates go up, dollars get more valuable, it's more expensive to buy dollars than it used to be, and each dollar buys more oil than before .

Post by gpsx » Fri, Nov 25, 2022, 8:53 PM UTC

gpsx wrote: post #146

peter-m80 wrote: post #26

Honest question: Can someone explain me why using gold instead of dollars to buy oil isn't the same as sell gold for dollars and use those dollars to buy oil?

I don't think it is different, apart from any issues with timing of the buying and selling and price changes in between. I think this is more a question that the government doesn't have the gold and buying it from the miners is how they will get it. I don't think they are giving the miners a bad deal, other than forcing them to accept Cedis. I believe the net effect is that fewer Cedis are put on the market for dolla…

Post by The_Colonel » Fri, Nov 25, 2022, 9:01 PM UTC

somenameforme wrote: post #224

oj2828 wrote: post #96

Earlier quoted context omitted.

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

They raised them to 20% for one month in the face of a nuclear economic strike. Their rates are down to 7.5% which are close to nominal for them. Remaining effects are a 3% GDP decline and a 12% inflation rate trending downward from a peak of 18% following the attack. The overall impact seems to be fading to zero relatively quickly, excepting a much stronger ruble. Future growth numbers will be interesting to follow.…

Post by trasz2 » Fri, Nov 25, 2022, 9:15 PM UTC

Hayvok wrote: post #162

rayiner wrote: post #147

Earlier quoted context omitted.

“Mono world order” is the appropriate term when the US can go around conquering other people in their perceived self interest (Iraq, Afghanistan) but says nobody else can.

If you want the real-politick answer then “yeah, absolutely”. What’s your point? But the U.S empire has been pretty amazing for a pretty amazing number of people across the globe, and it is shockingly easy to stay on the good side of U.S. foreign policy. Be reasonably democratic, don’t genocide undesirable elements of your population, don’t pick on other reasonably democratic countries, don’t threaten world trade and…