Posted on 02/08/2008 10:32:45 AM PST by Sleeping Freeper
Shown as "Breaking News" nothing follows.
This will not happen, they would be sealing their own fate.
NEW YORK (Reuters) - The dollar fell against the euro on Friday after a magazine report said OPEC may adopt the euro and abandon the dollar when pricing oil.
The article quoted the secretary general of the producer group as saying such a switch would “take time.”
The euro rose sharply to a session high of $1.4547 from $1.4500, where it was shortly before the report. It then settled back at $1.4515, up 0.2 percent on the day.
(Reporting by Kevin Plumberg, Editing by Chizu Nomiyama)
More than ever, MORE - THAN - EVER, we need to develop our own sources of fuel and get OFF the OPEC teat.
Ain’t gonna happen.
I wouldn’t call that a sharp drop.
CNN has been talking about this all day. Not anything new or breaking.
http://www.reuters.com/article/companyNewsAndPR/idUSN0841955620080208
http://www.bloomberg.com/apps/news?pid=20601103&sid=ad7wDu7G4iUc&refer=us
http://www.forbes.com/markets/feeds/afx/2008/02/07/afx4630956.html
The commodities appear to have taken a sharp step upward, but the dollar appears to be where it was yesterday and last year.
Well, I guess I won’t be frolicking on the Riviera this March.
I’m pretty ignorant about this sort of thing. Why do you say it’s not going to happen?
You’re right, but it will never happen with the three major contenders left for President.
Scrappleface? Newsweak? The Onion?
It would be essentially an act of war. The Iranians have been trying to set up a petro-oil market for about three years now. They know if they had customers, they would be bombed.
Whoever might be interested in this already knows the Butter and Cheese (and Eggs) Exchange has made this problem a non-possibility since 1983.
I don’t think this is much of trouble...
A low dollar will come handy for the export of american goods.
Oil is quite heterogeneously traded - US, Europe and Japan feed from different areas - it’s only practical to have the mainly european businesses done in euro.
a shame - i just cartered a yacht there.
The what...?
“This could be a problem if it happens...”
It’s bound to. George Bush and his tax “cuts” have deflated the dollar in the real world of oil, commodities and land prices. Govt. inflation indexes don’t reflect these realities.
George Bush will do okay though. There are still those who think “tax cuts” will “grow us out of the deficit”, though they never explain what they’ll do about the debt theretofore incurred.
Republican financial flim-flam
:I don’t think this is much of trouble...
A low dollar will come handy for the export of american goods.”
It’s terrible trouble. The fact that recorded inflation is so low despite massive deficits is due in most part because we export dollars. The world soaks up Bush’s dollars financed by China like a commodity. If the world doesn’t use the dollar as the primary reserve and such no more Bush tax cut games. In fact, it will just bite us sooner than planned.
Bush fears his scam will collapse this year, hence the “stimulus” to delay it.
Given the Iran&Russia have refused to accept dollars for their oil, I would say THAT, and NOT tiny tax cuts, are the source of the lapse in demand for the dollar.
IOW, The world doesn't need the dollar anymore, it (OPEC) prefers the euro.
One of the reasons I won’t mind if the ‘rats “win” in November. Let them take the blame for the coming train wreck.
“..MORE - THAN - EVER, we need to develop our own sources of fuel..?
And offend the environmentalists? This will not happen in today’s political atmosphere.
Well I know that - wether a gradual change towards the euro (likely) as a oil trade currency and reserve currency is poison for the US economy or just a normal developement depends much on time and volumes - this is not going to happen over night. At last europe and the world wouldn’t be well consulted to put the brakes on world economy.
In fact I am quite positively surprised how this maniac monetary policy is working out.
Cheers to the ever lasting american big money conspiracy - goldman for ever !
(I got some gold and defensive value stocks in case these guys f’up)
If you want to get "legal" about it, you must go back to the long-dead 1944 Bretton Woods agreement. Part of that agreement was that our dollars were redeemable in gold bullion. Nixon unilaterally repudiated that part of the agreement in 71, invalidating the entire deal.
Didn't at the same exact time OPEC agree to price oil ONLY in dollars?
The Dollar is backed by the full faith and credit of the United States. What country so guarantees the Euro?
This is such a non-isssue.
It is utterly relevant what oil is pegged at. They can put it in pesos for all anyone cares as long as it can be bought and sold.
The effort to pretend that their is something magical abut the currency pegging is more pscho economic voodoo trying to get people to buy into the recession scare so vitally necessary to bring dems to power this fall.
The sad reality is that such silly mind games do work. People do follow herd like foolish reactions to meaningless utterances— no offense to all the gold fans out there.
Maybe I am one of those NEOOO-COOONS that Ron Paul warned us about. ;)
Well if OPEC decides to ditch the dollar, we can blame the Dems for not letting us drill in ANWR and the Gulf of Mexico and restart some nuclear power plants.
[There are still those who think “tax cuts” will “grow us out of the deficit”, though they never explain what they’ll do about the debt theretofore incurred.
Republican financial flim-flam]
My lord you are ignorant. The value of the dollar is first a function of the amount of money in circulation, tax cuts don’t affect that. Following your logic, by taxing everyone 100% we’d have a strong dollar (in reality, it would collapse).
The deficit is meaningless. What is meaningful is the percentage of GDP devoted to the government (which as a whole other than defense is a giant sinkhole). Keep your eye on the ball, not meaningless paper deficit numbers.
It’s not a non-issue. If the currency in which oil has to be paid is dollars, that means nations buying oil from OPEC have to buy and reserve dollars (thereby STRENGTHENING the dollar). If OPEC pulls the plug on the dollar, all of these nations will have to exchange (read: sell) their dollars for Euros or clamshells or whatever currency OPEC wants to be paid in, thereby WEAKENING the dollar.
The issue is not that suddenly oil can’t be bought. The issue is that the dollar is already under enough pressure that we don’t need OPEC to - pardon the expression - throw an enormous amount of fuel on the fire. As the dollar weakens, it takes MORE of them to buy that barrel of oil in whatever currency it’s quoted in because the dollars buy less and less of the Euro or whatever.
This is part of Bush and Co’s plan to create the Amero. They have to devalue the dollar first then they try to tell us it’s in our best interest to join with Canada and Mexico. They follow that up with Mexico being willing to give us preferential access to their vast oil fields if we join our currency with theirs.
“The deficit is meaningless.”
Well, ok. Then let’s stop all taxes!
What does this even mean? If I present the US Treasury with $1, they promise to do what? Hand me a dollar back? That's some guaranty. I don't know why everyone's so worried.
It’s all Bush’s fault. Yep.
"Didn't at the same exact time OPEC agree to price oil ONLY in dollars?"
44 or 71?
What does that mean, “backed by the full faith and credit?”
Does it mean we have “faith-backed money?”
LOL.
If I was in charge and not an American, I would already have done this...
Actually, our 9 TRILLION dollar debt is an accumulation or our yearly deficits.
We are livin' large, and passing the tab onto generations unborn, a terribly immoral act.
When the economy finally implodes, (as ever other massively debt-based economy in the history of mankind has), our grand children will rightfully piss on our graves and tear down our monuments.
Switching from the dollar to the Euro when the Euro is at an all-time high and the dollar is at a long-term low sounds like a really stupid policy. Go for a basket of currency and diversify, okay, but go for the Euro? Be careful what you wish for . . . .
Tax cuts would grow us out of the deficit if Washington didn't continue to increase spending faster than the growth. Duh.
If the U.S. Government does’nt wake up thing here will be looking like the Wiemar Republic just before the Second World war. When it took a box of Deutch Marks to buy a loaf of bread.
I don’t think OPEC will actually switch to the Euro, but again if they do— more power to them.
I really do not care.
Higher or lower dollar does not mean the US or its economy has improved or declined. All the metaphors of up and down are actually meaningless and deliberately used to incite panics. There are benefits and costs to higher dollar values and benefits and costs associated with lower dollar values. Individuals who seek to make money on speculations simply exclude the corresponding benefit or cost side to their analysis in order to create the false impression that currency valuations favor their interpretation.
The US economy is nearly twice the size as the European economy, so the imagination that the Euro is going to symbolically annihilate our economy is laughable. What all of these analysts must understand is that because the US economy is the Gulliver among lilliputian nonsense that even if they do succeed in inciting this foolish panics— they will only be hurting individuals dependent on the US economy which includes literally billions of people.
A sniffle in the US economy becomes a tsunami of pain in the rest of the World that desperately needs US consumer consumption to float their small economies. This silly oil switch talk is partly guided by the impending collapse of oil prices which may be accelerated by the slowing of the US economy.
The anti american zealots everywhere fantasize about blackmailing us into various policy statures because they will stick it to us with “dollar dumps” and such.
To all the fools: Do it!
Dump your dollars. I triple dare you.
This game has been going on for decades with no clear winners except— oh yes America.
America is King. Get used to it.
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