Oil and US$

[risktaker]

aljazeera and any retard who reads their crap can go fuck themselves.

Quote from greddy:

http://www.aljazeera.com/cgi-bin/review/article_full_story.asp?service_ID=9752

Is there any truth to this?

 

[SethArb]

this "news" is not only appearing on that site

by the way ...

 

[risktaker]

I agree. Ultimately dollars or euros are converted into whatever currency the seller of oil wants so it makes no difference from that of today. It might save Iran some transaction costs since I doubt they like holding dollars.

Quote from Babak:

Why does anyone think that the currency a commodity is quoted at means anything?



I've heard this silly conspiracy theory over and over again but it makes no sense.

 

[Sam123]

Today’s markets are efficient enough for people to not dump one currency for another all because one oil producer decides to base their oil trading on a different currency. The oil markets will align themselves, but each will be priced at different currencies. So what? Saddam would have done that anyway.

Incidentally, contrary to the wishful thinking behind the article, a weaker dollar will make U.S. equities rise because they are priced in dollars. American’s will save more and consume less. A weaker dollar makes America’s goods and services more competitive in the global marketplace, which is bad for the Euro Zone’s economy. And the world’s “reserve currency” is becoming a basket of currencies.

 

[drsteph]

Quote from Sam123:


And the world’s “reserve currency” is becoming a basket of currencies.

Which has interesting (not positive) implications for gold as an aside.

 

[EBenson]

Quote from Sam123:

Today’s markets are efficient enough for people to not dump one currency for another all because one oil producer decides to base their oil trading on a different currency. The oil markets will align themselves, but each will be priced at different currencies. So what? Saddam would have done that anyway.

Incidentally, contrary to the wishful thinking behind the article, a weaker dollar will make U.S. equities rise because they are priced in dollars. American’s will save more and consume less. A weaker dollar makes America’s goods and services more competitive in the global marketplace, which is bad for the Euro Zone’s economy. And the world’s “reserve currency” is becoming a basket of currencies.

which of America's goods will become more competetive...? like US made cars/trucks for example...?...haha...or electronics...lol...or some other...which one exactly?
services...yea sure the whole world just does nothing and waits for the great american companies to come and "service" it...haha .
the US has an enormous trade defficit since years which is growing every year...not without a reason - american made stuff is getting less competetive by the year and it shows.
instead of exporting "stuff" and services the US exports debt - treasuries etc
----
care to explain why Germany hit an all time export record this year...strong euro hmmmm?

 

[chewbacca]

Quote from Babak:

Why does anyone think that the currency a commodity is quoted at means anything?



I've heard this silly conspiracy theory over and over again but it makes no sense.

I disagree, if everyone in the world had to buy their oil using Mexican Pesos, then wouldn't that currency remain artificially inflated relative to all other currencies?

 

[aPismoClam]

Quote from maxpi:

Saddam priced his oil in Euros, some think that is how he got where he is today.

pricing anything in euros is throwing money away.

 

[Sam123]

Quote from EBenson:

which of America's goods will become more competetive...? like US made cars/trucks for example...?...haha...or electronics...lol...or some other...which one exactly?
services...yea sure the whole world just does nothing and waits for the great american companies to come and "service" it...haha .

Which of America’s goods will become more competitive if the dollar falls? All goods and services, of course. And don’t pretend that economies are based on just cars and stereos. Incidentally, as for electronics, America has a near monopoly on business-to-business products foreign companies must buy in order to make the cell phones and stereos they export back to us, for example.

Quote from EBenson:

the US has an enormous trade defficit since years which is growing every year...not without a reason - american made stuff is getting less competetive by the year and it shows.
instead of exporting "stuff" and services the US exports debt - treasuries etc

To fairly look at our trade deficit, you have to look at it as a percentage of GDP. Yes, it’s at a historical high, but not an unstoppable runaway train by any means. We have been importing more and exporting more. And since we are exporting more year-by-year, American-made stuff is NOT losing its competitive edge in the global marketplace. The widening deficit has a lot to do with America’s enormous appetite for cheap Chinese low/mid tech goods, which eclipse our exports of agricultural and high tech tools to China.

Quote from EBenson:

----
care to explain why Germany hit an all time export record this year...strong euro hmmmm?

No, Germany’s export record has nothing to do with the dollar vs. the Euro. It has everything to do with a country finally wising up to their ridiculous and pathetic backward ball-and-chain socialist policies that made Germany the costliest place to do business. Germany is wising up, allowing German companies to restructure and become more efficient and more competitive in the global marketplace; hence their export record.

 

[CanadianBacon]

I would check the sources of this. It seems to be coming from religious organizations. I wonder what their motives would be???

Isn't the transaction by europeans of us$ oil a wash?
Sell Euro buy US$ oil sell oil for euros.
I am not a currency trader and it has been awile since i have taken econ so if I am wrong please fill us in