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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

#241

Post by giaour »

988747 wrote: post #213
giaour wrote: post #193

Earlier quoted context omitted.

> One option is SWIFT system. Which Russia got excluded in some capacity from. As such it is clear that system cannot be trusted. That is quite a leap. Russia was also excluded from the NY stock exchange due to the ongoing sanctions; does that mean we can no longer trust stocks bought and sold there?

Yes, it does at least for those of us who are not US citizens. You can never be sure that one day the US won't sanction your home country in the same way, for some weird reason. Of course for some countries the risk is greater than for others, but still, it's a good reason to avoid US financial markets.

All financial markets participate in sanctions, so taking this absolute stance would limit the negotiable instruments available to you to briefcases full of gold or cryptocurrency.

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

#242

Post by edgyquant »

happyjack wrote: post #239

It is really interesting that the folks running the show in the USA are able to export a lot of the problems with the $ to the rest of the world. Caribbean nations know this first hand, and have given in to the peg. I worked in oil, and now work in an industry where I sell parts worldwide. I'm not a trained economist, but deal with currency and transfer pricing with labor and goods. Couple things: what a lot of peopl…

>They may be seeing a three letter agency from the USA very soon

Yeah this shows how little your credibility is. Idiotic meme that was never true

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

#245

Post by happyjack »

rsync wrote: post #206
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.

"For people saying that this is a sign of the dollar dominance ending consider this ..." I think you are mistaken. The technical fungibility of dollars/gold/oil is irrelevant. The requirement to sell other assets to buy dollars in order to settle oil is not a minor detail - it's the whole point ... ... and it would, indeed, be a sign of an erosion of US currency and trade dominance ... which is why it's not going to…

You're indeed 100% right. I think a lot of HN programmer bros miss this point ... that being forced to settle in dollars is not a formality ... it's the whole point!

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

#246

Post by happyjack »

edgyquant wrote: post #242
happyjack wrote: post #239

It is really interesting that the folks running the show in the USA are able to export a lot of the problems with the $ to the rest of the world. Caribbean nations know this first hand, and have given in to the peg. I worked in oil, and now work in an industry where I sell parts worldwide. I'm not a trained economist, but deal with currency and transfer pricing with labor and goods. Couple things: what a lot of peopl…

>They may be seeing a three letter agency from the USA very soon Yeah this shows how little your credibility is. Idiotic meme that was never true

You realize that the CIA exist to keep international interests in line, and the FBI exists for domestic tranquility?

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

#247

Post by zizee »

edgyquant wrote: post #242
happyjack wrote: post #239

It is really interesting that the folks running the show in the USA are able to export a lot of the problems with the $ to the rest of the world. Caribbean nations know this first hand, and have given in to the peg. I worked in oil, and now work in an industry where I sell parts worldwide. I'm not a trained economist, but deal with currency and transfer pricing with labor and goods. Couple things: what a lot of peopl…

>They may be seeing a three letter agency from the USA very soon Yeah this shows how little your credibility is. Idiotic meme that was never true

You think that the USA has never employed it's three letter agencies to protect its interests?

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

#248

Post by ghostwriter »

miguelazo wrote: post #176
whatever1 wrote: post #158

Earlier quoted context omitted.

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.

People outside the US loved it. Recent moves by Japan, Switzerland and some others in the (quickly-losing-liquidity) Treasury Market suggest that era is coming to a close.

> People outside the US loved it.

Correction: foreign central banks guided by IMF subsidiaries loved it dearly, people - not that much, perhaps the opposite [1]

[1] https://youtu.be/p5Ac7ap_MAY?t=1769

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

#249

Post by happyjack »

zizee wrote: post #247
edgyquant wrote: post #242

Earlier quoted context omitted.

>They may be seeing a three letter agency from the USA very soon Yeah this shows how little your credibility is. Idiotic meme that was never true

You think that the USA has never employed it's three letter agencies to protect its interests?

I'm kind of confused by his comment. Isn't it common knowledge (and even admitted) that American three letter agencies protect their interests at almost full cost?

The fbi had plans to assassinate MLK, and the cia led how many revolutions.

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

#250

Post by zizee »

bagels wrote: post #237
onlyrealcuzzo wrote: post #183

Earlier quoted context omitted.

Why can't they get dollars? I was under the impression that you can buy dollars much easier than oil.

Buy them with what? The implication is that nobody wants to accept Ghana currency.

Typically exports are used to gather USD. It sounds like Ghana has gold. Presumably people want their gold? They could sell the gold for USD, then use that to purchase the oil.

But using the gold for currency does sound like it could be more efficient, cutting out the middleman.

Note: normally countries maitain a float of foreign reserves for this, and I'm guessing this stash of economic lubrication has run a business dry for Ghana and they don't have the luxury of rebuilding their reserves, and hoping to use gold as a more immediate solution.

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