11–20 of 26 posts
This piece is rather poorly reasoned. It matters very little what currency oil is priced in...oil is re-priced constantly (as is the dollar), and the dollar can readily and immediately be exchanged with euro or yen or most anything else in massive global forex markets. I can just as easily price oil in euros or in ounces of gold....it is the supply and demand for oil, and the supply and demand for dollars, that matte…
This piece is rather poorly reasoned. It matters very little what currency oil is priced in...oil is re-priced constantly (as is the dollar), and the dollar can readily and immediately be exchanged with euro or yen or most anything else in massive global forex markets. I can just as easily price oil in euros or in ounces of gold....it is the supply and demand for oil, and the supply and demand for dollars, that matte…
you're ignoring that demand for dollars is hugely tied to oil.
The important element to the oil-dollar story is the idea of the Gulf States opting to leave the American sphere and the sense of American decline.
The FED is walking a tightrope with the rest of the world right now, but it should be more afraid of it's own citizens. I know 29% inflation over 10 years is chafing MY hide and it's all due to the FED's policies.
That's just ridiculous. Internet, software, airplanes, medical equipment, computers, entertainment, the list goes on.
"At this point the US is the undisputed leader in almost nothing except military tech." That's just ridiculous. Internet, software, airplanes, medical equipment, computers, entertainment, the list goes on.
Earlier quoted context omitted.
you're ignoring that demand for dollars is hugely tied to oil.
It is a keystroke to change from euro to dollars to buy oil and another keystroke for the seller to exchange those dollars for another currency. The fact that oil is priced in one currency has almost no impact on the underlying supply and demand. The important element to the oil-dollar story is the idea of the Gulf States opting to leave the American sphere and the sense of American decline.
Excerpt: "Brazil has shown interest in collaborating in non-dollar oil payments, along with India."
http://www.businessweek.com/globalbiz/content/oct2009/gb2009...
Also, Saddam Hussein was threatening to take payments for oil in euros...
This piece is rather poorly reasoned. It matters very little what currency oil is priced in...oil is re-priced constantly (as is the dollar), and the dollar can readily and immediately be exchanged with euro or yen or most anything else in massive global forex markets. I can just as easily price oil in euros or in ounces of gold....it is the supply and demand for oil, and the supply and demand for dollars, that matte…
If my ISP accepted pictures of my cat rather than insisting on pictures of president Jackson it would make a big difference to me.
This piece is rather poorly reasoned. It matters very little what currency oil is priced in...oil is re-priced constantly (as is the dollar), and the dollar can readily and immediately be exchanged with euro or yen or most anything else in massive global forex markets. I can just as easily price oil in euros or in ounces of gold....it is the supply and demand for oil, and the supply and demand for dollars, that matte…
Except that if oil is priced in dollars and you have a dollar printing factory then oil is effectively free to you. If my ISP accepted pictures of my cat rather than insisting on pictures of president Jackson it would make a big difference to me.
That's not exactly how it works (although that edge helps keep our oil cheap). The more money that is in circulation (printed) the less value to each person that holds it. Imagine a game of Monopoly where everybody had as much money as the Bank; nobody would have much spending power. When this happens in the real world, such as the 90's in Argentina, in Zimbabwe, and elsewhere throughout history, it's called hyperinflation. The U.S. has uniquely been able to get away with excessive printing because of the dollar hegemony, a good credit rating - "backed by the full faith and credit of the U.S. governement" - from having a stable government, and dominating the world economy. But we're not invincible... even Rome fell.
Earlier quoted context omitted.
you're ignoring that demand for dollars is hugely tied to oil.
It is a keystroke to change from euro to dollars to buy oil and another keystroke for the seller to exchange those dollars for another currency. The fact that oil is priced in one currency has almost no impact on the underlying supply and demand. The important element to the oil-dollar story is the idea of the Gulf States opting to leave the American sphere and the sense of American decline.