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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

#251

Post by themihai »

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

Indeed, right? Funny fact: Wikileaks is blocked my ISP (in Europe).

https://en.m.wikipedia.org/wiki/1954_Guatemalan_coup_d%27éta...

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

#252

Post by themihai »

happyjack wrote: post #249
zizee wrote: post #247

Earlier quoted context omitted.

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.

Some people still live in denial. I can surely see CIA paying a visit to Ghana's officials.

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

#253

Post by danielschonfeld »

onlyrealcuzzo wrote: post #183
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…

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

Because the world has an anemic shortage of dollars.

The reason for that is post 2008 banks have become much more risk averse (seeing what happened to Lehman et al) and they are mostly the conduit through which broad currency is generated. That mechanism is mostly broken unless you’re an ultra rich company like Apple or Google.

So today to make a bank create USD for you you’d be required to have the best of the best collateral namely sovereign bonds. As it stands the US hasn’t taken even close to enough debt and thus issued Treasuries to even come close to the shortage in dollars that banks’ risk aversion has created since 2008.

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

#254

Post by The_Colonel »

somenameforme wrote: post #230
The_Colonel wrote: post #227

Earlier quoted context omitted.

> Remaining effects are a 3% GDP decline It's 3.9% (which rounds up to 4%, not to 3%) this year and 5.6% next year. This forecast is based on figures kindly provided by Russian authorities, which in times of war have strong incentives to be creative.

The Russian central bank expects a rate of 3-3.5%, the Ministry of Economic Development expects a decline of 2.9%. [1] Your numbers may be dated, as the expected figures keep improving. Some time back they were expecting double digit declines. [1] - https://tradingeconomics.com/russia/gdp-growth-annual

The 3.9%, 5.6% decline comes from OECD's November report, so hardly outdated.

I don't think there's much reason to trust Russian Central Bank which has strong incentives (read: orders) to enhance the numbers.

https://www.oecd.org/economic-outlook/november-2022/

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

#255

Post by danielschonfeld »

gtirloni wrote: post #143
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…

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

Generally speaking yes. If from your question I deduce that you’re worried about how much we already “printed” then do some googling over why the common citing of growth of M2 chart is interpreted wrong.

Spoiler - we didn’t print nearly as much as you think we did. And we generally haven’t even scratched the surface of how much more a normal growth of the currency since 2008 was needed.

The question that needs to be asked is more political and societal than monetary. Does the US want to lead the world by resuming at marketing a more true and secular beacon of hope and freedom or does it want to become isolationist and toe the line of each dog to its own. If we choose the former the question than arises if that’s even still possible and if we ever were true to it or were we just lucky enough to enjoy the arbitrage of developing countries not having developed yet.

I personally don’t have all the answers but it seems to me that combined with our questionable moral standing in the last 22 years and our secular stagnation the latter is the path we’re choosing to follow.

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

#256

Post by bilbo0s »

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…

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

This is sad precisely because it's so true. I wish poor countries were free to make trades on terms that were more fair. But that's not the world we live in.

In any case, I applaud Ghana for trying.

I really do wish them luck, but I'd advise them to ready their internal security services. (I suspect there will be a lot of unrest there in the very near future.) And I'd also advise beefing up the quality of their healthcare facilities. Because I think they may see a rise in cancer diagnoses among leaders in their steward classes over the next few years.

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

#257

Post by jkepler »

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…

> China? They do too much contract manufacturing for America, and no one wants yen or a currency from a dictatorship.

Yen is Japanese currency; yuan is China's money.

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

#258

Post by enkid »

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…

If people's confidence was destroyed, it wouldn't be in high demand.

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

#259

Post by enkid »

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…

Wouldn't any attempt to alleviate demand make inflation worse, when it already at levels not seen in decades?

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

#260

Post by [deleted] »

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?

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