Euro/Dollar/Oil & Reasons for WAR?

[vortexring 0]

There is some interesting speculation regarding the reasons for the Iraq war and possibly Iran. This is apparantly due to the fact OPEC countries trading oil in Euro's instead of Dollars has MASSIVE implications for America:

http://www.globalresearch.ca/articles/CLA410A.html

(anyone make this a clicky please?)

The text is worryingly believable - but I wonder why the Iranian made no comment on this matter in his letter to US President?

'for it's Tommy this, an' Tommy that, an' "chuck 'im out, the brute!" But it's "saviour of 'is country" when the guns begin to shoot.'

[mnealtx 0]

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There is some interesting speculation regarding the reasons for the Iraq war and possibly Iran. This is apparantly due to the fact OPEC countries trading oil in Euro's instead of Dollars has MASSIVE implications for America:

http://www.globalresearch.ca/articles/CLA410A.html

(anyone make this a clicky please?)

The text is worryingly believable - but I wonder why the Iranian made no comment on this matter in his letter to US President?

When you make a post, there's a button labeled "url". Click it, paste the link and click it again.

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[nathaniel 0]

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I wonder why the Iranian made no comment on this matter in his letter to US President?

Perhaps because it's a poorly constructed fiction. Phrases like "monopoly currency" in economics are a bit like "monopole magnets" in physics. The concept is vacuous, but it makes for good science fiction.

My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski?

[vortexring 0]

Sorry - but there are monopole magnets!!
Air headed ideas make good science fiction?

'for it's Tommy this, an' Tommy that, an' "chuck 'im out, the brute!" But it's "saviour of 'is country" when the guns begin to shoot.'

[miked10270 0]

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... it's a poorly constructed fiction. Phrases like "monopoly currency" ...

"Monopoly Money" is a common and well understood term. Would you prefer: "The US treasury is printing Monopoly Money." or... "Since it's departure from the Gold Standard in 1973, the US Treasury has consistently overprinted money and artificially inflated the dollar supply, thus causing a massive national debt which it is in no position to honour, even in part, should there be a run on the US Dollar". It really amounts to exactly the same thing.

Let's face it. When it comes to printing worthless bits of paper which resemble money, the US Treasury under the current administration is the biggest counterfeiter in town. Right now, the US$ is rather like the Emperor in his "new clothes". The only thing supporting the Dollar is that it is the only currency in which oil is traded (if you want to buy oil, you must first buy Dollars). If the Iranian Oil Bourse DOES trade oil in Euros, then the worldwide demand for dollars will drop quite significantly (more so if Iran overproduces and manages to sell it). Thus the value of the Dollar will fall which'll trigger an inflationary cycle, all the more so if other countries (Venezuela?) also decide to trade their oil in Euros. In effect, the actual worth of the US$ in terms of the goods it'd buy would fall to around half it's current value!

So yeah... Any move by Iranians (or any other country) to trade oil in anything other than US$ IS a "Clear and present danger" to America!

Mike.

Taking the piss out of the FrenchAmericans since before it was fashionable.

Prenait la pisse hors du FrançaisCanadiens méridionaux puisqu'avant lui à la mode.

[SpeedRacer 1]

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The only thing supporting the Dollar is that it is the only currency in which oil is traded (if you want to buy oil, you must first buy Dollars)

It remains to be demonstrated to what extent this is true. Are there not other goods & services supporting our economy other than oil?

Of course, if it came to pass as you say & US$ were suddenly devalued, then suddenly other countries could buy American products dirt cheap.

Lesson here kiddies: (assuming miked is correct) If oil begins to be sold in Euros on a large scale, invest in companies that export products.

Speed Racer
--------------------------------------------------

[christelsabine 1]

...
Lesson here kiddies: (assuming miked is correct) If oil begins to be sold in Euros on a large scale, invest in companies that export products.

[crwtom 0]

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Sorry - but there are monopole magnets!!

huh?

T

*******************************************************************
Fear causes hesitation, and hesitation will cause your worst fears to come true

[kallend 2,180]

www.dropzone.com/cgi-bin/forum/gforum.cgi?post=1208101#1208101

...

The only sure way to survive a canopy collision is not to have one.

[billvon 3,132]

>Are there not other goods & services supporting our economy other than oil?

Yes, but there are far more goods and services that we want (and want to pay dollars for) than there are products people are willing to pay _us_ for. The term for that is "trade deficit." Thus a loss in value of the dollar somewhat benefits countries wanting to buy products from us, but harms us a _lot_ (because we need to spend much more money to get the same stuff from overseas.)

>If oil begins to be sold in Euros on a large scale, invest in companies that export products.

Might be a good strategy, but our trade imbalance limits those opportunities right now. A drop in value of the dollar, however, would widen those opportunities (eventually.)

[nathaniel 0]

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(if you want to buy oil, you must first buy Dollars)

And then all that oil-producing wealth is stuck in dollars forever. They couldn't just turn around and dump them if they wanted. Oh no. And certainly not perhaps to the next oil buyer... Am I right?

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Are there not other goods & services supporting our economy other than oil?

Only around $12 trillion worth. And forget that much of that is consumption that stays in dollars and recirculates, eg, domestic consumption.

Vs oil transactions that need only be denominated in dollars for the duration of the transaction.

Part of the conspiracy theory mike is repeating is that oil producers then put their dollars into US Govt bonds because their oil transactions were made in dollars. Linking the two like that is completely bogus.

Currency and gov't bonds are linked, just not like that. Oil transactions don't have a big enough effect to tip the scales on the currency like that. Probable depreciation is in our future irrespective of what other people use to denominate trade for oil.

My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski?

[miked10270 0]

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If oil begins to be sold in Euros on a large scale, invest in companies that export products.

Might be a good strategy...

If oil DOES begin to be sold in dollars, then the wise investment would be in precious metals as a hedge against inflation. The good thing about Gold is that it still adheres to The Gold Standard.

Of course, another possible strategy would be to invest in American "Defence" industries... Since we're pretty sure of what happens to countries (without atomic weapons) who move away from the US Dollar!

Mike.

Taking the piss out of the FrenchAmericans since before it was fashionable.

Prenait la pisse hors du FrançaisCanadiens méridionaux puisqu'avant lui à la mode.

[warpedskydiver 0]

Quote

Quote

If oil begins to be sold in Euros on a large scale, invest in companies that export products.

Might be a good strategy...

If oil DOES begin to be sold in dollars, then the wise investment would be in precious metals as a hedge against inflation. The good thing about Gold is that it still adheres to The Gold Standard.

Of course, another possible strategy would be to invest in American "Defence" industries... Since we're pretty sure of what happens to countries (without atomic weapons) who move away from the US Dollar!

Mike.

there is only one form of gold you are allowed to posses without risk of confiscation...interesting huh?