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Petrodollar -- in danger? Iran officially begins taking Rials.. and soon Euros and Rubles

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GrGr

Diamond Member
Sep 25, 2003
3,204
0
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Iraq should start trading it's oil in euros too. You know it makes business sense.

Wouldn't that it be ironic if the Al-Qaida Sunni fighters, currently on US taxpayer welfare, started to demand their salary in euros? :p

The US is simply milking the dollar for all it's worth until a point comes when they simply declare bankrupcy and start all over with the amero. But the amero switch can't happen without a thunderous crash any way you slice it. The Gulf nations are plannig to create their own currency by 2010. When that happens the dollar is dead as a petrodollar, which means as the world reserve currency.



 

ranmaniac

Golden Member
May 14, 2001
1,939
0
76
Venezuela is also taking Euros, not sure if they'll dump the dollar completely since they still export to the US.
 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
Originally posted by: GrGr
Iraq should start trading it's oil in euros too. You know it makes business sense.

Wouldn't that it be ironic if the Al-Qaida Sunni fighters, currently on US taxpayer welfare, started to demand their salary in euros? :p

The US is simply milking the dollar for all it's worth until a point comes when they simply declare bankrupcy and start all over with the amero. But the amero switch can't happen without a thunderous crash any way you slice it. The Gulf nations are plannig to create their own currency by 2010. When that happens the dollar is dead as a petrodollar, which means as the world reserve currency.
This is in the back of my mind all the time. I don't want to believe it and neither does anyone else for that matter. Just have to wait and see.
 

Rainsford

Lifer
Apr 25, 2001
17,515
0
0
Originally posted by: ranmaniac
Venezuela is also taking Euros, not sure if they'll dump the dollar completely since they still export to the US.
Hehe, Iran and Venezuela are trying to "dump the dollar". Well OBVIOUSLY it must be for financial reasons, I can't think of any other reason those two countries in particular would want to try to stick it to the US.
 

jpeyton

Moderator in SFF, Notebooks, Pre-Built/Barebones
Moderator
Aug 23, 2003
25,375
141
116
Thank God. There's no sense in selling your product for a currency that drops day after day. The Yen, the Won, the Euro, nearly every major currency is gaining on the US Dollar right now and that isn't stopping anytime soon.

I was bidding on an eBay item from a Canadian seller today, and noticed (to my shock) that their Canadian Dollar is still worth more than ours.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price. You guys are hilarious.
 

Rainsford

Lifer
Apr 25, 2001
17,515
0
0
Originally posted by: LegendKiller
What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price. You guys are hilarious.
Like I said, I think the political science folks are the ones to look to for answers rather than the economists.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: Rainsford
Originally posted by: LegendKiller
What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price. You guys are hilarious.
Like I said, I think the political science folks are the ones to look to for answers rather than the economists.
They wonder why they should never be allowed to run the central banks. They can't even figure out a fucking futures contract.

But they can sure bitch about "inflation taxes" and "petro dollars". lol.

They're no worse than idiots proclaiming nuclear power to be evil to the exclusion of all safety mechanisms and technological advancement. yet they are somehow "experts" enough to make that proclamation.
 

Rainsford

Lifer
Apr 25, 2001
17,515
0
0
Originally posted by: LegendKiller
Originally posted by: Rainsford
Originally posted by: LegendKiller
What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price. You guys are hilarious.
Like I said, I think the political science folks are the ones to look to for answers rather than the economists.
They wonder why they should never be allowed to run the central banks. They can't even figure out a fucking futures contract.

But they can sure bitch about "inflation taxes" and "petro dollars". lol.

They're no worse than idiots proclaiming nuclear power to be evil to the exclusion of all safety mechanisms and technological advancement. yet they are somehow "experts" enough to make that proclamation.
I am sure as hell not a financial expert, which is why I try to learn as much as I can by LISTENING to the financial experts. I know that in the field where I AM an expert, the amateurs are almost never right and almost always annoy the crap out of me...I can't imagine finance (or any other field, for that matter) is much different from mine.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: Rainsford
Originally posted by: LegendKiller
Originally posted by: Rainsford
Originally posted by: LegendKiller
What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price. You guys are hilarious.
Like I said, I think the political science folks are the ones to look to for answers rather than the economists.
They wonder why they should never be allowed to run the central banks. They can't even figure out a fucking futures contract.

But they can sure bitch about "inflation taxes" and "petro dollars". lol.

They're no worse than idiots proclaiming nuclear power to be evil to the exclusion of all safety mechanisms and technological advancement. yet they are somehow "experts" enough to make that proclamation.
I am sure as hell not a financial expert, which is why I try to learn as much as I can by LISTENING to the financial experts. I know that in the field where I AM an expert, the amateurs are almost never right and almost always annoy the crap out of me...I can't imagine finance (or any other field, for that matter) is much different from mine.
lol. There's nothing like being told what you should think by people who can't even figure out the simplistic things you deal with on a day to day basis. Instead of asking questions, they make proclamations, which is quite laughable.
 

Jhhnn

No Lifer
Nov 11, 1999
62,146
14,355
136
From LK-

What do they care about the dollar? They can automatically hedge exposure to the dollar using futures/forward contracts that lock in their price.
Sure they can- and that costs money, as does the process of converting the buyer's currency into dollars, also the process of converting dollars back into the currency the seller needs to buy what they want on the open market.

Why put up with all those fees if you're spending in Euros? If the seller takes payment from the buyer in the same currency the seller will ultimately spend, the savings and safety are obvious... for both parties.

Not to mention that in an unstable currency situation, it's smart to get diversified wrt reserves- it's an investment, after all, on a national level...

 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
I wonder what would happen if OPEC and other decided to no longer take the U.S. dollar for Oil. What would happen to our economy if the U.S. dollar lost its world reserve currency status?
 

yllus

Elite Member & Lifer
Aug 20, 2000
20,576
431
126
Originally posted by: PC Surgeon
I wonder what would happen if OPEC and other decided to no longer take the U.S. dollar for Oil. What would happen to our economy if the U.S. dollar lost its world reserve currency status?
Denominated in the dollar != accepting the dollar

There's a minimally valid argument to be made for the U.S. greenback being dropped as the foreign reserve currency of choice, as its stability - that is, its natural resistance to fluctuation - was very attractive for that role. If you didn't catch the point behind that statement, here it is again: Going up and down is not a big deal - it happens with any nation's currency. Going up and down too fast is something the world might take issue with.

What would happen if oil-producing nations stopped accepting payment from the U.S. in exchange for oil? Why, I think that might be a little bit of an issue.

What would happen if the U.S. dollar was no longer the currency of choice for foreign reserves? Well, if all of the world decided to trade the U.S. for something else at once, that would cause a global panic and untold repurcussions. Of course, this is not anywhere near happening today or anytime soon.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
2
0
Originally posted by: PC Surgeon
I wonder what would happen if OPEC and other decided to no longer take the U.S. dollar for Oil. What would happen to our economy if the U.S. dollar lost its world reserve currency status?
That's kind of irrelevant, really. The US makes dollars and uses dollars. if Iran say "sorry, no dollars", we'd just buy in whatever currency they will accept by finding somebody who will trade in dollars. I work for dollars and so do you and most people in the US, so to have dollars still represents the power to get something done.
 

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