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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

#131

Post by KptMarchewa »

dmitriid wrote: post #85
ur-whale wrote: post #18

Earlier quoted context omitted.

Apologies, but your reading of the situation is shallow. What do you think led Vlad to invade? The US has been mounting a proxy war against Russia in Ukraine for the past 20 years, one they're ready - barring political upheaval in the US - to fight down to the last European.

> What do you think led Vlad to invade? Any combination of (in no particular order): - paranoia - phantom empire pains - complete and utter failure to produce anything of note on ideological level except "we're a great empire that is surrounded strictly by enemies". - waning economy with no means, desire, or knowledge to maintain or support it > The US has been mounting a proxy war against Russia in Ukraine for the p…

>- complete and utter failure to produce anything of note on ideological level except "we're a great empire that is surrounded strictly by enemies".

You forgot one thing: WW2 victory cult.

Americans who claim that their country overtly glorifies the military would be shocked how insanely militaristic and jingoistic russia is.

https://www.youtube.com/watch?v=3WdGX3-e97s

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

#132

Post by UltraViolence »

nirimda wrote: post #103
UltraViolence wrote: post #86

We'll see the dominance of the USD erode in the next three decades is my prediction. Look at how successful Putin was in demanding payment for Russian oil in Rubles. It has propped up the Ruble enormously and its predicted collapse hasn't occurred. In fact it has rallied. I assure you that other nations have taken note and will take similar steps in the future. Other commodities may well be priced in local currencies…

Most countries and business want to do something with their earnings. If you get paid in rubles for your oil, then you can only buy things denominated in rubles. If your general trade is collapsing, this isn't such a bad thing - you need to make an increasing proportion of your consumption. But if you retain an economy that wants to do general trade, you will probably want something other countries accept. So althoug…

AFAIK you can still exchange Rubles for USD or EUR, so buying stuff shouldn't be too much trouble.

The problem Russia has is that it can't buy anything from the West no matter how much money it's willing to pay because of trade sanctions.

The sanctions will eventually be lifted since Russia will almost certainly demand this for stopping the war.

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

#133

Post by thisiscorrect »

KptMarchewa wrote: post #110
thisiscorrect wrote: post #57

Earlier quoted context omitted.

I agree with the general premise of your comment, that this is a small sign of the deglobalization which is _already_ under way. But, what are the UUUGE tailwinds benefiting India? India, even more so than China, seems likely to "get old before it gets rich." Its TFR is already below replacement and falling rapidly.

China's official TFR figures are massively engineered: https://www.project-syndicate.org/commentary/chinese-populat... India ones are still over replaceability.

https://www.google.com/search?q=india+total+fertility+rate tells me India's is 2.18, below the modern replacement TFR rate of 2.3 [1].

[1] https://en.wikipedia.org/wiki/Total_fertility_rate#Replaceme...

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

#134

Post by KptMarchewa »

0x445442 wrote: post #115
KptMarchewa wrote: post #104

Earlier quoted context omitted.

US can confiscate your dollar reserves if you keep those dollars in the US, just as they can confiscate your gold reserves if you keep them in the Fort Knox. >sovereign actions Nice euphemism for genocidal, imperialist war.

> Nice euphemism for genocidal, imperialist war. You’re referring to the U.S. right?

>You’re referring to the U.S. right?

You must claim to be very sarcastic!

No, I'm refering to only country in XXI century that literally decided to annex other country's territory - two times. All that while losing war, and deciding to unleash hell on civilians they claim to be "their kin".

At least we can cheer our hearts looking at fields littered with dead russian soldiers and see that there are countries of the world that won't leave those who need help alone.

https://twitter.com/PaulJawin/status/1596033997334872064

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

#135

Post by danielschonfeld »

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 has taken over the past 22 years and suddenly your ultra safe and liquid commodity while still good and desirable for this present crisis might not be as desirable for the post crisis era. Where one crack starts many others can possibly form.

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

#137

Post by UltraViolence »

luciusdomitius wrote: post #128
UltraViolence wrote: post #92

Earlier quoted context omitted.

Saudi Arabia isn't going off the USD. That would seriously undermine their relation with the U.S. and could even have them branded an antagonistic nation. The dominance of the USD is EXTREMELY important to the U.S. and I can assure you that Washington is even willing to wage war over it. But I believe the ball has already started rolling with Bitcoin and Russia's demand for payment in Rubles.

S. Arabia was already labeled a pariah nation by the senile old man. Just before they refused to increase production. So, no leverage there.

Ol' Joe can't completely pull his hands off Saudi Arabia. Same with Turkiye.

Both are too important to the strategic and economic well-being of the U.S. to cut loose.

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

#138

Post by KptMarchewa »

thisiscorrect wrote: post #133
KptMarchewa wrote: post #110

Earlier quoted context omitted.

China's official TFR figures are massively engineered: https://www.project-syndicate.org/commentary/chinese-populat... India ones are still over replaceability.

https://www.google.com/search?q=india+total+fertility+rate tells me India's is 2.18, below the modern replacement TFR rate of 2.3 [1]. [1] https://en.wikipedia.org/wiki/Total_fertility_rate#Replaceme...

India child mortality rate is low enough that it's closer to developed countries rate of 2.1, rather than global rate which you cite.

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

#139

Post by bell-cot »

robertlagrant wrote: post #78
elzbardico wrote: post #46

Earlier quoted context omitted.

Decoupling from the western financial system and having a higher level of resilience from sanctions. You never know if the US will decide tomorrow you're not behaving as expected under the internal rules-based order.

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 a very long blacklist, of various countries / organizations / people who the US doesn't want banks to work with.

(That said, I see no reason to suspect that Ghana has any interest in "Decoupling from the western financial system", as elzbardico put it. Though obviously the subjects of oil, gold, dollars, etc. are pushing a whole lotta people's emotional buttons in this item.)

*Yes, there are exceptions - usually involving sanctions-busting by folks who don't care about drawing hostile attention from the US.

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