Crude priced in Eurodollars? - Discuss

Quote from Sam Mcgee:

It's not just a matter of pride whether oil is priced in American Dollars or Euros. The United States has enjoyed the benefits of an interest free loan for trillions of dollars for decades since their currency is used by almost every country for international trade. If oil is priced in Euro's instead of Dollars this would trigger demand for repayment of the loan that the United States has all over the world.
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Please explain this. I have seen people write about this but I have never gotten a straight answer to my question.

What demand for repayment is that?

We print a bunch of dollars and so do the North Koreans. presumably there are a lot of 20 dollars bills in vaults.

What can they do with them. It just paper. They can trade them in for some other currency or oil or gold. Presumably the dollar would go down some more.

Then the people who have our bonds will get paid back with less valuable dollars.

Doesn't that mean the we got to consume like crazy on their dime and their labor?

If the dollar goes down too far the horrible result could be that we bring back jobs to our country.
 
Quote from billpritjr:

I would like to get some discussion going into why Crude priced in Euros, instead of the current US Dollar, is "bad" for the US Economy.

Discuss
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Eurodollars are an int rate derevative you muppet
 
Quote from niceneasy:

U.S. has its foot on Iraq & Iran's throat. Their economy still dwarfs China's and the European Union. Their military force dwarfs all. If someone tried to repeg oil to another currency - they would be on the "axis of evil" and aconvenient george bushian reason would be dreamt up to blow them off the map imo.
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I think you will find the the Eurozone is very close to matching the US economy in many ways.
 
Quote from billpritjr:

I would like to get some discussion going into why Crude priced in Euros, instead of the current US Dollar, is "bad" for the US Economy.
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If oil is priced in USA dollars then if USA citizens are cold they can print dollars and trade them for fuel oil.

If oil is priced in euro then to buy oil we need euro. The USA does not create euro. To obtain euro we must sell something probably to Europeans in exchange for euro. The USA shows a trade imbalance. The USA does not sell as much to the world as it imports.

If the USA does not have euros and it gets cold, some people in the USA might freeze. Freezing people can become angry, restless and desperate for any change. Cold people may riot, become interested in communism, fascism, KKK, Nazi, or some extreme guy such as Hitler may appear and people actually listen to him. History books are full of precedents.

Quality of our life is likely better if we have abundant food, clothing, shelter and heat. Lack of basic necessities can lead to revolution, riots, wars, and oh yes sometimes the political leadership gets guillotined.
 
i like cold better than hot, winter better than summer

Quote from Hook N. Sinker:

If oil is priced in USA dollars then if USA citizens are cold they can print dollars and trade them for fuel oil.

If oil is priced in euro then to buy oil we need euro. The USA does not create euro. To obtain euro we must sell something probably to Europeans in exchange for euro. The USA shows a trade imbalance. The USA does not sell as much to the world as it imports.

If the USA does not have euros and it gets cold, some people in the USA might freeze. Freezing people can become angry, restless and desperate for any change. Cold people may riot, become interested in communism, fascism, KKK, Nazi, or some extreme guy such as Hitler may appear and people actually listen to him. History books are full of precedents.

Quality of our life is likely better if we have abundant food, clothing, shelter and heat. Lack of basic necessities can lead to revolution, riots, wars, and oh yes sometimes the political leadership gets guillotined.
More...
 
Quote from nazzdack:

There could come about a scenario whereby Germany would want to restore the deutschmark currency because they believe that they're primarily responsible for the strength of the euro and resent subsidizing the "lesser" European countries that also use the euro eventually leading to a splintering of the EEU.
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http://www.euro-area.org/blog/?p=102

A good read, even if it is still in the realm of fantasy land at the moment.
 
Quote from Bogan7:

Eurodollars are an int rate derevative you muppet
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LOL..you beat me to it. How can you have a "discussion" with someone when they dont even know what product they are discussing...LOL..this place is laugh a minute.
 
Quote from Sam Mcgee:

It's not just a matter of pride whether oil is priced in American Dollars or Euros. The United States has enjoyed the benefits of an interest free loan for trillions of dollars for decades since their currency is used by almost every country for international trade. If oil is priced in Euro's instead of Dollars this would trigger demand for repayment of the loan that the United States has all over the world.

Strange coincidence that the Iraq started pricing their oil in Euros in 2000 and the Iraq war started in 2001. Iran is planning to sell in Euros, what will happen to them? Is Iran's nuclear program the real threat?
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It always seemed to me this was probably a much bigger influence on the decision to go to war than many credited it for.

http://www.feasta.org/documents/papers/oil1.htm

Says it quite well. It certainly seems like the beginning of the end of an empire. Oil is the only thread holding it together imho.
 
Quote from BlowFish:

It always seemed to me this was probably a much bigger influence on the decision to go to war than many credited it for.

http://www.feasta.org/documents/papers/oil1.htm

Says it quite well. It certainly seems like the beginning of the end of an empire. Oil is the only thread holding it together imho.
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I'll say it again: the petrodollar market is a drop in the bucket out of the dollar currency market. It does not matter if some petrodollars go to eurodollars in terms of significantly effecting the dollar.

Some of this article is right, but here's where it starts falling apart:

"There is though one major obstacle to this happening: oil. Oil is not just by far the most important commodity traded internationally, it is the lifeblood of all modern industrialised economies. If you don't have oil, you have to buy it. And if you want to buy oil on the international markets, you usually have to have dollars. "

Again, the dollar is not going to fall just because of petrodollars. There are much, much larger forces pushing down the dollar...
 
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