Skip to comments.Will OPEC Dump the Dollar? [Our Arab Oil Giants "friends"]
Posted on 11/22/2007 9:14:37 AM PST by PRePublic
Will OPEC Dump the Dollar?
Iran is pushing OPEC to shift away from pricing oil in dollars and instead to a basket of currencies that could include the euro. ...
(Excerpt) Read more at businessweek.com ...
iran refuses to rule out oil as weapon http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=2&article_id=86871
Who on earth ever thought of the Saudis as anything but business partners? Or, in the case of Israel, not even that.
This is why we need to stop being stupid and start drilling our own oil. If we get into an all out war someday and need more oil, we can just go take it. Where is the will to survive that this country use to have? Where are our leaders that actually believe in this country? Seems to me all we have left today are the power hungry Clintons.
He enjoys his private visits with Saudi diplomats?
Millions in under the table campaign donations?
Perhaps those rumored secret accounts in Dubai are real?
How many of the high jackers were Saudis?
Maybe Alex Jones is correct about 9-11 being an 'inside job?'
Haaaah ! Heaven Forbid! Just rumors. Dirty political mud slinging. Nothing to see here. Time to move on.
I thought we were dealing w/the Saudis before President Bush?? The dollar is collapsing so they want to be paid in something more stable, no surprise.
Happy Thanksgiving to Our Troops
Why would the Saudis want to be paid in collapsing dollars?
"Come to Vladimir, my European sheep, er, friends!"
You think the stock market has been jittery lately? Just wait until OPEC demands payment in EUROS. Then you are really going to see the market tank.
Put yourself in their shoes. All the oil is bought in dollars...so they get billions of dollars per week. To buy ANY other currency...you get raked over the coals...so you are really stuck...you have to buy with dollars only...so where do you shop? Think about that for a second. The Saudis and the rest of these guys are mad as heck for a good reason...they have to buy US services, US products, US expertise...etc. If they would really like to chat with the French....well...its a 25 percent difference on standard pricing.
The Europeans? They are stuck having to buy cheap dollars for their oil...which makes them really happy currently about “cheap” oil...compared to what a US consumer is paying. But selling stuff to the US? It just won’t work....too much cost.
Chinese unhappy? Yep. They get paid for all those US products...in dollars. They can shop the dollars for oil...but thats about all they can do. They can’t readily European products because the cost difference is so lousy.
Yes, there are people upset by the slumping dollar...but think about why they are upset. Maybe this situation isn’t as bad as people think.
Let the Euros (and Koreans) defend themselves. It’s not 1952, they are plenty rich enough to pay for the military they need.
The exchange rate is adjusted every hour of every day. What species of currency they use at any time is immaterial.
When the shiite hits the fan, they’ll all want dollars. All these guys have Swiss accounts for a getaway. Do you think they are denominated in Euros?
I hope so.
I hate to say this but I see only two alternatives to World War; kill Chavez, and drill here.
Here's how I (very childishly, I suppose) understand it.
A driller (Saudi, Chavez .. whatever) needs x amount to pay the workers and have some profit.
( the cost of drilling, equipment, etc. is not in this equation now)
So, a figure is fixed to pump the oil and pay the people (shippers etc.)
So what happens? .. Does a memo come down, "Yo, Achmed ... the Americans think you should be getting x+$5 instead of x ... they "figured this out" a year ago"
Achmed says, "Cool"
And oil is now x+$5 ... until the next memo comes down?
I think any currency goes through cycles. Eventually, we will need to employ the tools available to stop the dollar slide. The last time this happened, and it was worse, James Earl Carter was at the helm. The correction was a true struggle as well.
So, accordingly, any nation can exchange any amount of any currency into any other currency every hour, with no loss to any side at all? Is that how it really works?