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scott
good article. thanks for posting it 😉
[ https://www.welovecostarica.com/members/3191.cfm ]
no seriously
you make a good point regarding gas prices in the US.
and my question if i may ask
1. do you think the dollar will be eliminated as the world currency for oil??
2. what effects do you think this would have in the US lets say in a 6 month window if this indeed occurred?
thanks
smekuly
I always assume that the market – any market – can go higher than anyone can imagine… And, I also assume that the market – any market – can go lower than anyone can imagine…
Having said that, it’s been my experience that it’s often an unimaginable (by the general public) and totally unforeseeable (by the general public) catalyst that tends to cause major market moves as will probably be the case here.
Some experts believe that the Iraq “war” was a “petrodollar” war and others believe that Iran is next on the table ..
“There is a history of challenges to the trade of international oil with only US Dollars. The Shah of Iran flirted with the idea before being deposed. Saddam Hussein in Iraq began selling some oil in euros before being removed by the US by George W. Bush. Currently Qaddafi of Libya is battling for his life for what could partially be his attempts at creating an Africa Gold Currency. Ahmadinejad could be next in line.”
From: Don’t Get It Twisted, We Are Already At War With Iran [ http://www.thefinancialmarketnews.com/don%E2%80%99t-get-it-twisted-we-are-already-at-war-with-iran ]
1. I believe the US dollar is doomed and has to be phased out but I would not be be so bold as to give a time frame …
2. Whether the US dollar remains “the world currency for oil” or not, I believe we’re in for some extremely serious and deadly problems ….
In a recent article, the Former Comptroller General spoke of a: “Sudden And Very Painful” Economic Collapse Is Coming.
“Here’s the bottom line. If you take the total liabilities of the United States – public debt, unfunded pensions, retiree health care, under funding with regard to social security, with regard to medicare, a range of commitments and contingencies – as of September 30 2010 we would have had to have had $61.6 trillion dollars in the bank in order to be able to defease those obligations.” Walker explained.
Regarding fixing the problem long term , Walker urged, “let me give you the bumper sticker, it’s ‘Limited government, individual liberty, fiscal responsibility’”.
Dr. Ron Paul summed it up quite nicely:
I consistently find it both amusing and discouraging that these soliloquies by U.S. senators and congressmen are mostly played out to an empty chamber, and strictly for publicity with the folks back home. There is a reason the camera never strays to see who’s listening – they’re not there! (except for, in this example, a short-haired spectacled woman grabbing some papers and leaving, a stenographer, and 7 officers of the chamber). Tax dollars in action.:(:x
PHARG[quote=”Scott”]Having said that, it’s been my experience that it’s often an unimaginable (by the general public) and totally unforeseeable (by the general public) catalyst that tends to cause major market moves as will probably be the case here.[/quote]
Truer words were never spoken. Not only the oil producers but the futures players play games with the market to enrich themselves at others expense.
[quote=”Scott”]Some experts believe that the Iraq “war” was a “petrodollar” war and others believe that Iran is next on the table .. [/quote]
I think the Iraq War was an act of revenge against Hussein for the assassination plot against GHW Bush more than anything else. The idea of nation building in an area (both Afghanistan and Iraq) that will revert to what it was when we leave was the height of stupidity. Pray God we do not elect another idiot to the White House.
[quote=”Scott”]”There is a history of challenges to the trade of international oil with only US Dollars. The Shah of Iran flirted with the idea before being deposed. Saddam Hussein in Iraq began selling some oil in euros before being removed by the US by George W. Bush. Currently Qaddafi of Libya is battling for his life for what could partially be his attempts at creating an Africa Gold Currency. Ahmadinejad could be next in line.”[/quote]
Gold was the common denominator up until 1972. The wrong decision was taken for the right reasons. Rather than freeing the dollar the increase in inflation from 1935 to 1972 should have been calculated and the price of gold set accordingly and let float with inflation (or deflation). The value of U.S. holdings would be worth $1.4 trillion rather than the current $490+ billion. Gold would still be the exchange medium rather than the dollar. In any case the dollar is on it’s way out.
[quote=”Scott”]From: Don’t Get It Twisted, We Are Already At War With Iran [/quote]
I will get to the link as I have time but I disagree with the thinking of the author that a collapse is inevitable.
There are corrective measures that the U.S. congress can take to reverse the entire recession and minimize recessions in the future.Since 1913 there are five decisions made by congress that have led to this recession and George W, Bush was guilty of pushing three of them to devastating effect.
1 ~ 1913 – The Federal Reserve should never have existed. The Federal Reserve answers to no one. Not congress nor the president nor anyone else. They simply report their proposed actions to congress. The fact that the U.S. financial decisions are made by a coterie of bankers is insane. The creation of a national bank under the Department of the Treasury would have been proper. Congressional oversight would have been complete.
2 ~ 1972 – Removing the dollar from the gold standard.
3 ~ 1981 & 2001 – Instituting supply side economics. History proves that it is the middle class that drives the economy and supply side has proved to be a failure when you look at debt to GDP history.
4 ~ 1981 & 2001 – Government oversight is required to accomplish only two things and nothing more.
A ~ Removal of crooked decision makers from their positions as decision makers and
B ~ assuring that no business entity becomes too big to fail. No business should be so large that it affects the industry within which it exists.5 ~ 2001 & 2003 – War should never be waged without raising taxes to pay for it. It is inherently expensive and GW Bush did it for the first time in history, not once but twice.
If those who run for public office were required to prove that they have a working knowledge of economic history the above decisions would never have been made and government regulation of commerce would be held to a minimum.
The very idea that one nation or one economy should affect the economies of the entire planet is one born of stupidity.
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