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This is not good news for the US dollar. They plan on using a barter system of some sort to exchange oil for chinese goods. Sanctions prohibit using US dollars to purchase oil from Iran. So now we either lift sanctions or hope nobody else jumps with Iran or the dollar reserves will no longer be needed. What will they actually use for trade? China has been hoarding gold like maniacs since '09. This is not looking good.
Recall Sadaam tried to sell oil in dinars and look what happened to them. Libya tried to start an oil bourse selling oil in african dinar and look what happened. Is Iran up next? This could start WWIII IMO. If countries shunned the dollar as the fiat currency the US is up sheet creek. Get your horses and whaling skiffs ready.
This is not good news for the US dollar. They plan on using a barter system of some sort to exchange oil for chinese goods. Sanctions prohibit using US dollars to purchase oil from Iran. So now we either lift sanctions or hope nobody else jumps with Iran or the dollar reserves will no longer be needed. What will they actually use for trade? China has been hoarding gold like maniacs since '09. This is not looking good.
Recall Sadaam tried to sell oil in dinars and look what happened to them. Libya tried to start an oil bourse selling oil in african dinar and look what happened. Is Iran up next? This could start WWIII IMO. If countries shunned the dollar as the fiat currency the US is up sheet creek. Get your horses and whaling skiffs ready.
Germany just basically put up half the bailout for greece and the euro is teetering on collapse. What if say Russia and India said hey we'll trade gold for oil too and stops buying up dollars to hold in reserve to purchase oil? Now of course OPEC would have to go in but if Iran gets a nuke, which they appear close to, they would hold a heavy trump card in the region thats for sure.
This is not good news for the US dollar. They plan on using a barter system of some sort to exchange oil for chinese goods. Sanctions prohibit using US dollars to purchase oil from Iran. So now we either lift sanctions or hope nobody else jumps with Iran or the dollar reserves will no longer be needed. What will they actually use for trade?
The Euro.
The Rubble.
The Yuan.
Take your pick.
Quote:
Originally Posted by KUchief25
Recall Sadaam tried to sell oil in dinars and look what happened to them.
Euros.
Iraq was selling oil in Euros.
Quote:
Originally Posted by KUchief25
Germany just basically put up half the bailout for greece and the euro is teetering on collapse.
The Euro is not teetering on collapse.
Greece is 11 Million people with a GDP of $350 Billion and they borrowed $100 Billion and are have extremely difficulty making payments on principal and interest.
$100 Billion is 0.625% of the EU GDP.
So you're going to throw yourself off of a 35-story building because you lost half a penny?
Apparently you would.
Get it together.
Quote:
Originally Posted by KUchief25
What if say Russia and India said hey we'll trade gold for oil too and stops buying up dollars to hold in reserve to purchase oil?
You're a day late and $0.9938 short (Greece has your other 0.0072 cents and they'll give it to you shortly as soon as they sell some Gyros).
Russia has already gotten rid of 100% of US Dollars. Russia holds only Gold, Euros and Rubles.
Russia sells all of its oil in Euros and has done so for about 8 years now. That is one reason why $1 will never be worth more than 1 Euro for the rest of your natural life.
Quote:
Originally Posted by KUchief25
Now of course OPEC would have to go in
Not necessarily. OPEC member States have been pressuring Saudi Arabia for years to either go Euro, go Basket Currency, or allow individual member States to choose on their own.
The world is sick of the U S can anybody blame them ? Even our freinds the Brits and French are pushing for a new reserve currency. Our days are numbered and their could be several choices, a basket of currencies, SDR's issued by the IMF, a new currency called the bancor which was shown by Putin during a G20 meeting, the Euro. Who knows ?
I just wonder if the U S will start to war monger against China now?, we are already beating the drums against Iran. Keep in mind if war breaks out to defend USD as the reserve currency we will be fighting both the Russians and China. Who would be are allies the Brits? the French?
Waging war to defend an unsupported currency is even dumber that waging war to protect, British and Arabian, feudal investors in the oil industry.
A radical solution would be to cancel our external debt (sorry suckers) and use our own resources to convert our electric power industry (get out of the road envirofreaks) to nuclear and produce our own oil fuels from our coal resources. Of course China et al would not sell us anything so we would have to recreate our own electronics and textile industries. This would not be a bad thing. We would also have to stop our overseas military escapades. This would be a good thing as the newly revitalized industrial economy could absorb the military contracting as well as the retired soldiers. That would be another good thing.
We nop longer own the casino so it is time to move our game.
The USA and Americans just need to get used to not being as important.
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