StreetScooby

We'll have a temporary blip in interest rates that will be correcting by the Federal Reserve absorbing the excess dollars. It won't cause any long lasting problems. The problems will come about if there is no longer a free flow of oil in a free market system. That's the real issue being discussed in this thread. If there is a continued and sustained movement away from US govt bonds, then we're going to be in big trouble. We are all engines of karma

Interesting article. You realize this guy is advocating a return to the gold standard? And, there's not a lot of gold to go around in the world, anymore. I agree with some of his points. US govt bonds, etc. are the benchmark securities for the world. Why? We are the most powerful militarily, and as long as we pay on the notes, then people (mainly govts and large corps) will feel comfortable converting whatever currency they have into US securities. That's the real power being discussed here. No financially savvy institution keeps US Dollars tucked away under their bed. They keep US securities tucked away under their bed, because they get a rate of return from those securities. Right now, it does appear that we've been printing extra money for some time, thus the inflation concerns being expressed at the Fed. There is also a movement underfoot by several govts to decrease their exposure to US govt bonds (e.g., China). I do understand the laws of supply and demand. My point here is it's not so much the demand for US Dollars as it is the demand for US securities that's going to be driving the shape of our world. We are all engines of karma

That's the issue here. Just because someone writes an article saying something doesn't make it a fact. Saying that we're striving for an oil-based currency is not much different than saying we should have a gold-based currency. It's simply not the case. The Euro-based oil trading system argument is crock. We have a thriving FX (foreign exchange) market on this planet. It doesn't matter what currency you trade things in. As I have elaborated in prior posts to this thread, the issue being discussed here involves the free flow of oil in a free market economy. America's standard of living relies upon that. We are all engines of karma

I did respond in detail. See above. We are all engines of karma

For this thread, your reply is a bit off topic. While worthy of disucssion, this particular thread is proving difficult enough to make progress in without introducing your observation for discussion in this thread. We are all engines of karma

We are a capitalistic society, in case you haven't noticed. It's why we have the standard of living that we do. We are all engines of karma

I don't disagree with your statement. We are all engines of karma

This is the best you can do? By continuing to say kallend knows more than StreetScooby, and kallen won't share it? You're as bad as Richard Nixon. All of your arguments are negative arguments. Clearly, it's the best you can do. You made no counter argument to my statement regarding the depth of the world's financial markets (at least in the democratic countries). I guess you're unable to do that. We are all engines of karma

It's not about the oil, as it sits in the ground. The issue is the free flow of oil, in a free market. Our nation's standard of living depends greatly on that. If we wanted to flat out own the oil, we could. You are discounting the free market system that is well established in the upstream area. Not only do middle men make profit, everyone in the chain makes profit. They have to. Otherwise, they couldn't run their business and hope to feed their kids. Do you know how capital intensive the oil business is? Upstream costs are huge, as are downstream costs. Refining margins (downstream) are single digits, thanks in part to our Congress. Upstream processing takes a decade or more to bring a newly discovered field on line. So, how are you defining profits? It's not revenue. So, do you expect these people to give it away? You expect some Iraqi to walk out of the wood work and run a port facility so that it operates continuosly? As I pointed out to kallend, the other poster was a student according to his profile at the time I read it. The data presented by kallend have already been discounted elsewhere by financial instutions that know much more about the markets than I do. To throw random data around is just that, throwing random data around. I chose not to take that data seriously because it's already been debunked. We are all engines of karma

How so? Where am I wrong? We are all engines of karma

He is a student. Read his profile. Your replies are simplistic, and there is no analysis required to reach that conclusion. kallend, I keep expecting more from you, and clearly that's my issue. Guess my expectations are too high. We are all engines of karma

Ah, right. I should have replied to kallend, but I see I ended up replying to you. We are all engines of karma

Aren't we having a debate in another thread? The fact you've started another thread... does that mean I've won? I thought it was supposed to be harder than that. And, I expected to learn something. Oh well, guess that's what you get when you have high expectations. We are all engines of karma

What authority was being appealed to? I have never done that. Still have my "Question Authority" button in my sock drawer. I read your link. That's old news, and it's wrong. You and your kindred spirits should spend some time in the real world. Our financial markets are MUCH deeper than that. So, I'm still missing your point. I think you're throwing data out to just stir the pot. Maybe that's the best you can do. www.weather.com My point is - it's NOT about the oil. If it was about the oil, we'd own the oil. QED. We are all engines of karma

You're the professor, the one who supposedly has the communication skills. I personally think you didn't clearly communicate your point. I'll give you another try - exactly what was your point? We are all engines of karma

So, based upon your reply, we have a long way to go. And you're right, we shouldn't blow it, especially by giving it away. Bottom line, the world is not a nice place full of rational people. I'm not sure you realize that. I agree with you here. But, there's room for us to wiggle here, at least for the next several hundred years, if we have to. It's just a question of will. We are all engines of karma

I'll say it again... Did you read it this time? We are all engines of karma

What's your point, right here and now? BTW, if you're using the Romans as a basis for comparison we have at least another 700 years to go, and probably more. We have lots of room to increase whatever "nastiness" the world perceives in us. I personally think we should start exploring that space. We are all engines of karma

You're still a student. The world markets are much deeper than your reply connotes. Even if oil started to trade in Euros, the FX rates would change appropriately. Do you have any idea why the US Govt Bond is the benchmark for riskless securites? Because we have more aircraft carriers, etc., than anyone. The only thing that can possibly change that is an aggressive invasion from outer space. And even then, US Govt Bonds would still be the benchmark for the rest of our lives. We are all engines of karma

If it was about the oil, we would own the oil. QED. We are all engines of karma

Nice! We are all engines of karma

BC Bud is too intense. We are all engines of karma

Isn't that Al Gore's movie? We are all engines of karma

Then again, you're Canadian. We are all engines of karma

Just turn the AAD off. We are all engines of karma