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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

#271

Post by lottin »

Ekaros wrote: post #222
giaour wrote: post #189

Earlier quoted context omitted.

> 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.

There is essentially loans of USD that happen on balance sheets that is paper between institutions outside of USA. So such trading and settlement is possible. But if there is block of actually getting this money in real dollars, that is rather pointless even more monopoly money.

What do you mean real dollars? Dollar deposits in bank accounts outside the US are as real as dollars deposited in US banks.

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

#272

Post by lottin »

bell-cot wrote: post #139
robertlagrant wrote: post #78

Earlier quoted context omitted.

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

Very Roughly: Countries don't buy oil (or anything else) with a suitcase or few stuffed with $100 bills.* Instead, they have a really big bank move US dollars through the international banking system electronically. Any really big bank that wants to keep its US-issued "Allowed to Handle US Dollars Electronically" License has got to follow a bunch of US-made rules. Which rules doubtless permit the US to make & enforce…

> US-issued "Allowed to Handle US Dollars Electronically" License

Source?

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

#273

Post by lizardactivist »

The world needs to get off the blood currency that is the U.S Dollar.

But I hope the U.S doesn't do to Ghana what they did to Libya, the last country to try something along those lines: forment revolt and overthrow the government, then literally sack the country and leave with billions in gold bars, and say they gave the country freedom and democracy.

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

#274

Post by jkepler »

delecti wrote: post #221
jkepler wrote: post #204

Earlier quoted context omitted.

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…

> Doesn't help that the US seems set on destroying the world's confidence in the US dollar Over the last 15 years, USD has increased in value against the Ghanaian Cedi by almost 16x. If we're trying to destroy confidence in USD, then Ghana sure makes it seem like we're doing an awful job. https://www.google.com/search?q=1+USD+to+GHS&oq=1+USD+to+GHS

You're correct that the Cedi has lost value compared with the US dollar while existing in a world where USD is one side if nearly every international business transaction.

However, look at the US dollar over longer durations against wheat [1], copper [2], gold[3], or Bitcoin [4]: the dollar buys significantly less than 10, 15, 40, or 100 years ago.

While the Cedi may be much weaker against the dollar, the dollar is loosing against real commodities/assets that can't simply be created by banker's fiat.

So, the dollar's the cleanest dirty shirt in the room. And Ghana just announced that they'd rather trade oil for a clean shirt (gold) rather than taking a dirty one.

[1] https://www.macrotrends.net/2534/wheat-prices-historical-cha...

[2] https://www.macrotrends.net/1476/copper-prices-historical-ch...

[3] https://goldprice.org/gold-price-charts/15-year-gold-price-h... / For 100 year chart, https://www.macrotrends.net/1333/historical-gold-prices-100-...

[4] https://www.xe.com/currencycharts/?from=USD&to=BTC&view=10Y

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

#275

Post by kobalsky »

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.

no one with savings in USD is glad that it inflated, but the reality is that other easily accesible currencies bit the dust harder.

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

#276

Post by bjornsing »

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…

> Ghana is shouting out loud I can’t get my hands on USD.

If you have gold but can’t get your hands on USD then something is very wrong, but I doubt that is the case.

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

#277

Post by immibis »

giaour wrote: post #202
jkepler wrote: post #187

Earlier quoted context omitted.

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' de…

> even though the international settlement system was meant to be apolitical “Apolitical” does not mean “usable by any party for any transaction.” SWIFT policy prohibits using its system in support of illegal activity [0], and the settlement system has been denied to sanctioned countries before [1]. [0]: https://www.swift.com/about-us/legal/compliance-0/fighting-i... [1]: https://www.aljazeera.com/economy/2018/11/5/w…

Illegal according to whom?

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

#278

Post by selectodude »

jkepler wrote: post #274
delecti wrote: post #221

Earlier quoted context omitted.

> Doesn't help that the US seems set on destroying the world's confidence in the US dollar Over the last 15 years, USD has increased in value against the Ghanaian Cedi by almost 16x. If we're trying to destroy confidence in USD, then Ghana sure makes it seem like we're doing an awful job. https://www.google.com/search?q=1+USD+to+GHS&oq=1+USD+to+GHS

You're correct that the Cedi has lost value compared with the US dollar while existing in a world where USD is one side if nearly every international business transaction. However, look at the US dollar over longer durations against wheat [1], copper [2], gold[3], or Bitcoin [4]: the dollar buys significantly less than 10, 15, 40, or 100 years ago. While the Cedi may be much weaker against the dollar, the dollar is l…

Of course the dollar has devalued. That's the whole idea. It's supposed to. At a modest rate of 2% inflation, $1 should be worth 50 cents after 35 years. That's literally how currency works.

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

#279

Post by selectodude »

immibis wrote: post #277
giaour wrote: post #202

Earlier quoted context omitted.

> even though the international settlement system was meant to be apolitical “Apolitical” does not mean “usable by any party for any transaction.” SWIFT policy prohibits using its system in support of illegal activity [0], and the settlement system has been denied to sanctioned countries before [1]. [0]: https://www.swift.com/about-us/legal/compliance-0/fighting-i... [1]: https://www.aljazeera.com/economy/2018/11/5/w…

Illegal according to whom?

Illegal according to the United States, who regulates the SWIFT system and is the issuer and owner of all US Dollars. This isn't complicated.

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

#280

Post by toast0 »

rayiner wrote: post #147
Hayvok wrote: post #121

Earlier quoted context omitted.

“Mono world order” is a fun euphemism for “boo hoo we’re not allowed to run around the planet conquering other people”. You’re free to “divest” as you put it… But you’re still expected to behave & play nicely with your neighbors.

“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.

Hey, Russia had their Afghanistan, the US had their Afghanistan, everyone else should try to learn from these two examples.
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