Iran president calls U.S. dollar 'worthless'

[The Green Bean]

Originally posted by: piasabird
So how much is Saudi Money Worth?

Wikipedia says it's pegged to the US dollar. Perhaps that one reason they don't want to change.

 

[rchiu]

Originally posted by: magomago
Rather than ask what it could do to the US, we should be wondering what could be done to reverse this. Well I thought about what could be done to stave off people from rushing away from the dollar and I realized that our answer isn't hidden in the mathematics of economics -- it lies elsewhere and should be obvious for many of us ~ fix our broken foreign policy.
That is ultimately the reason for switching off of dollar, because our foreign policy is so antagonistic towards 99% of the Middle East. Of course, its hard to say "we should promote democracy" when we have to buy oil from dictators (ie: Saudi Arabia and Iran...although SA is FARRRR worse in that regard. Despite the fact that power ultimately settles in the hand of Iran's Mullahs, people still have greater representation there. I suppose anything larger than 0 is better).

Despite the broken state of the Arab governments that we helped put in place to buy oil from, the single biggest issue would be the Palestinian crisis. We talk about the "magic solution" for the Mid East - and this really is a huge factor in it, although implenting a real solution is nowhere easy...but one that completely makes sense to do.

That, along with have real concrete efforts to continue to help push greater levels of democracy (remember, it doesn't have to be USA style for it to be democracy...and many small steps will worker better in the long run since it introduces reforms over time) would easily be the number one factor to stave off pessimistic speculation on the dollar ~ especially if OPEC countries are more amicable to sticking to it. And this is ultimately a much better solution than to threaten people...b/c acting like that will ultimately help in our downfall.

Heh, don't blame outside world for falling dollar. We have only ourselves to blame for this. If we didn't buy so many cheap stuff from China or drive SUV and be the #1 oil consumer in the world (by far), we would not have so much trade deficits. If we didn't vote for politicians who just spend and spend, we wouldn't have so much federal deficits. And if we as a consumer save a little more instead of putting all those debts on our credit card, we wouldn't hit all time low in national saving rate. All these factors affects US credit worthiness and impacts US dollar in a big way.

You really don't need to talk about foreign policies or what other countries can do for you. You should ask what you as a consumer, and as a US citizen can do about your own currency.

 

[dmcowen674]

Originally posted by: rchiu

Heh, don't blame outside world for falling dollar. We have only ourselves to blame for this.

If we didn't buy so many cheap stuff from China or drive SUV and be the #1 oil consumer in the world (by far), we would not have so much trade deficits.

If we didn't vote for politicians who just spend and spend, we wouldn't have so much federal deficits. And if we as a consumer save a little more instead of putting all those debts on our credit card, we wouldn't hit all time low in national saving rate.

All these factors affects US credit worthiness and impacts US dollar in a big way.

You really don't need to talk about foreign policies or what other countries can do for you.

You should ask what you as a consumer, and as a US citizen can do about your own currency.

Oh come on.

Always blame the bottom?

 

[StageLeft]

It's makes no real difference what currency oil is traded in, folks. This thing that's been around for quite a while called the "exchange rate" that makes that possible.

Economists don't agree with you. The reason is that these countries after selling the oil have cash reserves on hand in the currency they sold the oil with. As time goes on, these currencies look more like a big pile of toilet paper. If they don't want to hold onto US in the future, the dollar goes further down.

That is ultimately the reason for switching off of dollar, because our foreign policy is so antagonistic towards 99% of the Middle East.

It's part of the reason Iran/Venez are against it, but ultimately this is about money and the US's version of it is losing value hard and with a vengeance. It makes sense for OPEC to look at a worthwhile currency.

 

[GrGr]

Originally posted by: TastesLikeChicken
It's makes no real difference what currency oil is traded in, folks. This thing that's been around for quite a while called the "exchange rate" that makes that possible.

But no doubt this stupid old chestnut about oil no longer being traded in dollars (pssst. It's not actually traded in real dollars, but merely assigned a dollar-equivalent value. Nor do countries hoard dollars to buy oil. They hoard dollars and other relatively solid currencies to help stabilize their own currencies.) will continue to be a favorite doom & gloom prediction of some here in P&N, which increasingly seems to stand for Paranoids & Nutcases.

Heh, you think that if the US actually had to pay it's energy bill it wouldn't have an impact on the US economy?

Oil has roughly the same relative value to precious metals as it did 20 years ago. Oil does not have the same relative value to the US dollar it had 20 years ago. The US dollar is inflating into oblivion. But all is well, don't worry

 

[TastesLikeChicken]

Originally posted by: Skoorb

It's makes no real difference what currency oil is traded in, folks. This thing that's been around for quite a while called the "exchange rate" that makes that possible.

Economists don't agree with you. The reason is that these countries after selling the oil have cash reserves on hand in the currency they sold the oil with. As time goes on, these currencies look more like a big pile of toilet paper. If they don't want to hold onto US in the future, the dollar goes further down.

Economists don't agree with me? Bullshit. What you mean is that a few alarmist economists don't agree while many others do. Petrodollars have been a hotly disputed subject for years and a darling of the conspiracy theorists, economic chicken littles, and those seemingly desiring to see the downfall of the US as well. This subject has been going round and round before many of you in here claiming we are doomed for 3rd world status were even born.

Besides that, Iran can start their own oil "bourse" and switch to Euro if they like but oil will still be traded in dollars. The people pumping it out of the ground aren't the ones who truly determine that oil is priced in dollars. It's the traders on the oil market who do that. And until THEY decide that oil will be traded based on another currency, it's not going to change.

 

[SSSnail]

Originally posted by: Skoorb
Haha!

Edit: Oh wait, I live here. Sh*t.

I thought the same thing, then I thought to myself "I could move".

 

[SSSnail]

Some of you are saying that a weak US dollar that would allows companies to come back to hire US labor (at what value?), like it's a good thing. Just ask any sweatshop workers in any third world countries.

THINK!!! Who will that benefits? You? The workers? Or the overlords?

Just in case you can't figure out, at that point in time, your dollar will truly be worthless.

 

[Siddhartha]

Originally posted by: SSSnail
Some of you are saying that a weak US dollar that would allows companies to come back to hire US labor (at what value?), like it's a good thing. Just ask any sweatshop workers in any third world countries.

THINK!!! Who will that benefits? You? The workers? Or the overlords?

Just in case you can't figure out, at that point in time, your dollar will truly be worthless.

Yes, the US worker will still be competing against sweat shop labor in other countries. The weaker dollar will make that sweat shop labor much more expensive.

Who benefits? corporation stock owners.

 

[magomago]

Originally posted by: rchiu
Heh, don't blame outside world for falling dollar. We have only ourselves to blame for this. If we didn't buy so many cheap stuff from China or drive SUV and be the #1 oil consumer in the world (by far), we would not have so much trade deficits. If we didn't vote for politicians who just spend and spend, we wouldn't have so much federal deficits. And if we as a consumer save a little more instead of putting all those debts on our credit card, we wouldn't hit all time low in national saving rate. All these factors affects US credit worthiness and impacts US dollar in a big way.

You really don't need to talk about foreign policies or what other countries can do for you. You should ask what you as a consumer, and as a US citizen can do about your own currency.

Money and politics are intertwined at the core....you can't separate them:x

 

[maddogchen]

1 US dollar = 9308 Iranian Rials. Nine thousand....geez....thats a lot of toilet paper for one dollar. :laugh:

 

[JEDI]

Originally posted by: Nebor
In case Aminajad hasn't been paying attention, threatening to switch away from US currency is a great way to get invaded.

at least it gives us the chance to see how the F22 Raptors do in real combat instead of the silly 150-1 kill ratio in mock fights.

 

[JEDIYoda]

Originally posted by: TastesLikeChicken
It's makes no real difference what currency oil is traded in, folks. This thing that's been around for quite a while called the "exchange rate" that makes that possible.

But no doubt this stupid old chestnut about oil no longer being traded in dollars (pssst. It's not actually traded in real dollars, but merely assigned a dollar-equivalent value. Nor do countries hoard dollars to buy oil. They hoard dollars and other relatively solid currencies to help stabilize their own currencies.) will continue to be a favorite doom & gloom prediction of some here in P&N, which increasingly seems to stand for Paranoids & Nutcases.

I like that....rofl

 

[SoundTheSurrender]

Originally posted by: JEDI

Originally posted by: Nebor
In case Aminajad hasn't been paying attention, threatening to switch away from US currency is a great way to get invaded.

at least it gives us the chance to see how the F22 Raptors do in real combat instead of the silly 150-1 kill ratio in mock fights.

It'd be great but we wouldn't have any oil to move our vehicles over there.

 

[Nebor]

Originally posted by: SoundTheSurrender

Originally posted by: JEDI

Originally posted by: Nebor
In case Aminajad hasn't been paying attention, threatening to switch away from US currency is a great way to get invaded.

at least it gives us the chance to see how the F22 Raptors do in real combat instead of the silly 150-1 kill ratio in mock fights.

It'd be great but we wouldn't have any oil to move our vehicles over there.

IIRC the F22 Raptor is solar powered.

 

[Taejin]

Originally posted by: 1prophet
<a target=_blank class=ftalternatingbarlinklarge href="http://www.msnbc.msn.com/id/21870271/">Iran president calls U.S. dollar 'worthless'
OPEC members consider converting cash reserves into non-dollar currency</a>

RIYADH, Saudi Arabia - Iranian President Mahmoud Ahmadinejad said Sunday that OPEC?s members have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a ?worthless piece of paper.?

His comments at the end of a rare summit of OPEC heads of state exposed fissures within the 12-member cartel ? especially after U.S. ally Saudi Arabia was reluctant to mention concerns about the falling dollar in the summit?s final declaration.

The hardline Iranian leader?s comments also highlighted the growing challenge that Saudi Arabia, the world?s largest oil producer, faces from Iran and its ally Venezuela within the Organization of Petroleum Exporting Countries.

?They get our oil and give us a worthless piece of paper,? Ahmadinejad told reporters after the close of the summit in the Saudi capital of Riyadh. He blamed U.S. President George W. Bush?s policies for the decline of the dollar and its negative effect on other countries.

?All participating leaders showed an interest in changing their hard currency reserves to a credible hard currency,? Ahmadinejad said. ?Some said producing countries should designate a single hard currency aside from the U.S. dollar ... to form the basis of our oil trade.?

Oil is priced in U.S. dollars on the world market, and the currency?s depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves.

Saudi Arabia?s King Abdullah had tried to direct the focus of the summit toward the question of the effect of the oil industry on the environment, but he continuously faced challenges from Ahmadinejad and Venezuelan President Hugo Chavez.

So what could this do to the US aside from rising prices, especially now with the current lending crisis?

This is the same idiot disputing the Holocaust? Why are you even taking him seriously?

 

[1prophet]

Originally posted by: Taejin

Originally posted by: 1prophet
<a target=_blank class=ftalternatingbarlinklarge href="http://www.msnbc.msn.com/id/21870271/">Iran president calls U.S. dollar 'worthless'
OPEC members consider converting cash reserves into non-dollar currency</a>

RIYADH, Saudi Arabia - Iranian President Mahmoud Ahmadinejad said Sunday that OPEC?s members have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a ?worthless piece of paper.?

His comments at the end of a rare summit of OPEC heads of state exposed fissures within the 12-member cartel ? especially after U.S. ally Saudi Arabia was reluctant to mention concerns about the falling dollar in the summit?s final declaration.

The hardline Iranian leader?s comments also highlighted the growing challenge that Saudi Arabia, the world?s largest oil producer, faces from Iran and its ally Venezuela within the Organization of Petroleum Exporting Countries.

?They get our oil and give us a worthless piece of paper,? Ahmadinejad told reporters after the close of the summit in the Saudi capital of Riyadh. He blamed U.S. President George W. Bush?s policies for the decline of the dollar and its negative effect on other countries.

?All participating leaders showed an interest in changing their hard currency reserves to a credible hard currency,? Ahmadinejad said. ?Some said producing countries should designate a single hard currency aside from the U.S. dollar ... to form the basis of our oil trade.?

Oil is priced in U.S. dollars on the world market, and the currency?s depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves.

Saudi Arabia?s King Abdullah had tried to direct the focus of the summit toward the question of the effect of the oil industry on the environment, but he continuously faced challenges from Ahmadinejad and Venezuelan President Hugo Chavez.

So what could this do to the US aside from rising prices, especially now with the current lending crisis?

This is the same idiot disputing the Holocaust? Why are you even taking him seriously?

If it wasn't for the current energy, economic and foreign policy of the US he wouldn't be relevent in the affairs of the world.

 

[TastesLikeChicken]

Originally posted by: 1prophet

Originally posted by: Taejin

Originally posted by: 1prophet
<a target=_blank class=ftalternatingbarlinklarge href="http://www.msnbc.msn.com/id/21870271/">Iran president calls U.S. dollar 'worthless'
OPEC members consider converting cash reserves into non-dollar currency</a>

RIYADH, Saudi Arabia - Iranian President Mahmoud Ahmadinejad said Sunday that OPEC?s members have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a ?worthless piece of paper.?

His comments at the end of a rare summit of OPEC heads of state exposed fissures within the 12-member cartel ? especially after U.S. ally Saudi Arabia was reluctant to mention concerns about the falling dollar in the summit?s final declaration.

The hardline Iranian leader?s comments also highlighted the growing challenge that Saudi Arabia, the world?s largest oil producer, faces from Iran and its ally Venezuela within the Organization of Petroleum Exporting Countries.

?They get our oil and give us a worthless piece of paper,? Ahmadinejad told reporters after the close of the summit in the Saudi capital of Riyadh. He blamed U.S. President George W. Bush?s policies for the decline of the dollar and its negative effect on other countries.

?All participating leaders showed an interest in changing their hard currency reserves to a credible hard currency,? Ahmadinejad said. ?Some said producing countries should designate a single hard currency aside from the U.S. dollar ... to form the basis of our oil trade.?

Oil is priced in U.S. dollars on the world market, and the currency?s depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves.

Saudi Arabia?s King Abdullah had tried to direct the focus of the summit toward the question of the effect of the oil industry on the environment, but he continuously faced challenges from Ahmadinejad and Venezuelan President Hugo Chavez.

So what could this do to the US aside from rising prices, especially now with the current lending crisis?

This is the same idiot disputing the Holocaust? Why are you even taking him seriously?

If it wasn't for the current energy, economic and foreign policy of the US he wouldn't be relevent in the affairs of the world.

He may not even be relevant in Iran anymore:

http://news.bbc.co.uk/2/hi/middle_east/7106335.stm

Seemingly even the mullahs have had enough of his idiocy.

 

[JS80]

The only way to stop the devaluation of the dollar is to either stop global economic growth or drastically increase US growth. We are an established economy; the world economy is catching up to us, of course their currencies are becoming more expensive.

 

[SSSnail]

Originally posted by: JS80
The only way to stop the devaluation of the dollar is to either stop global economic growth or drastically increase US growth. We are an established economy; the world economy is catching up to us, of course their currencies are becoming more expensive.

That's quite funny. So explain the Euros, Pounds (or sterlings), Canadian Dollars, etc...

Lift your blindfolds, you may see something.

 

[tvarad]

The flip side of the dollar slide coin.

"EADS says weak dollar threatens Airbus"

 

[KingTech]

There is an obvious reason that Iranian president said that the American Dollar is worthless because a conflict is going on between Iran and America over nuclear issues.I don't think that American Dollar is worthless.