Sneak Attack on US Dollar

[crazychickensc12 84]

Just came across this interesting piece, our trade partners across the pond (Middle East, China, France, Russia) want to stop using the US dollar to set the value for oil trades!!

Story Time

Hmm Just noticed the Collapse of the American Dollar thread perhaps someone could merge these for me as it is related! Thanks!

[SomeRandomAmerican 5]

Doesn't seem likely, according to the article it seems that this Fisk character is a bit off his rocker these days.

[John Kirby 1]

I don't see this happening anytime soon. And why would several prominent countries from around the world conspire against the American dollar?

[Hard_Justice 0]

Originally posted by: John Kirby

I don't see this happening anytime soon. And why would several prominent countries from around the world conspire against the American dollar?quote>

Because America is the big boy on  the block and they would like to take us down a notch or two.

[GMT 389]

Originally posted by: Hard_Justice

Originally posted by: John Kirby

I don't see this happening anytime soon. And why would several prominent countries from around the world conspire against the American dollar?quote>

Because America is the big boy on  the block and they would like to take us down a notch or two.

quote>

yeah, sure, tear down america, it's tha haunted state from hell... big B-S here!

what about it's just because the dollar is getting weaker and weaker!? It's by far no longer THE currency on earth that it used to be say 25 years back. Same for the US economy. It's by far no longer THE big economy on earth.

So why still adjusting to something that lost / is losing it's supremacy? Out of consuetude?

At least that's the point in the whole story. Why calculating the oil price (after all probably the most precious good on earth) with a currency that is no longer number 1?

I know this is something many americans can't cope with, but I guess they better get used to it cuz things are changing ever since and atm it looks like america is losing more and more of it's once so bright supremacy... and even better: don't feel offended by it.

[masochist 111]

But the Dollar hasn't been the most valuable currency for as long as I can remember (it's always been the Pound so far as I know). Don't know why they'd change now when they didn't care back then (at least, based solely on that reason).

[Shadow Assassin 336]

But the Dollar hasn't been the most valuable currency for as long as I can remember (it's always been the Pound so far as I know). Don't know why they'd change now when they didn't care back then (at least, based solely on that reason).quote>

Except there probably was a reason why the GBP hasn't been used for oil stock trades... My bet's actually on the Euro replacing the dollar, since well... it's the next most-traded currency, and unlike the dollar, it actually has the backing of many different nations.

They definitely won't use the Australian dollar, except on an investment basis, though - it's a high-risk, high-reward currency.

[JanYpe 17]

A "sneak attack" by countries "conspiring" against the US, does that sound a little jumpy or what? Maybe they couldn't find a way to run this under its initial title: "Oh god the sky is falling we're all going to get it RUN!"

It's not really a surprise that the rest of the world might not want to be beholden to the US, or that there isn't a whole lot of brand loyalty when it comes to global finance, now is it.

[GMT 389]

yes, no matter how you put it, it's fact that the us-dollar is losing ground in the worldwide market and other currencies, especially the euro, are becoming more and more important and that's why there's this idea for the oil-prize to skip from usd to whatever, from a world-economic point of view, more important currency.

No anti-us-conspiracy, no economic terrorism, no nothing. Just an idea to adjust a current system to a more practicalbe (and up-to-date) one.

... just like The Economist once started to use the BigMac-Index to compare the worldwide economic situations in respective countries, cuz it's practicable for McDonalds is resident all over the world and a BigMac is a BigMac, be it the US or Nigeria.

[duack 14]

Well I doubt this is the first time anyone's got this idea. what doesn't make sense is why would they want to change it now that the US dollar is weak and petrol is relatively cheap? It would make more sense if the USD became really strong, as that would have pissed people off and they would want a weaker currency to trade oil with.

But if the change is real, the biggest problem would be that oil production is regulated by OPEC, and as such you need a single currency to trade oil with. So if the USD is replaced, by what currency?

[krbe 193]

You can trade oil in any currency you wish, a basket of currencies, or maybe something completely else. The US has attacked it's own currency for years, so naturally you're starting to become a bit shaky when the currency and the country are trembling at the same time.

[A Nonny Moose 8,261]

So?  Not an attack.  Just a little truth.  We should all go back to hard metal.  Gold, Carbon )Crystalline form).

Trash currencies of the world, go away, please!

[yamaneko 2]

What really makes me wonder is how so many of us Americans are upset that the dollar may no longer be the pre-eminent currency. The United States sunk trillions of dollars and expended tens of thousands of lives on a policy of containing the Soviet Union and China to bring this about. We spent sixty years proclaiming to all and sundry that we wanted a united, prosperous and democratic Europe and Pacific Rim. We got what we wanted. Almost every nation west of Belarus is a free-market democracy with a social safety net. Japan, South Korea, Taiwan, Malaysia, Indonesia and the Phillipines are now free-market democracies, though the strength of each nation's social safety net varies. The convenience of one European currency is obvious on a continent where nations can be driven across in a matter of hours, so the Euro was born. (Germany's intense fear of inflation forced Eurozone nations to keep debt and deficit down, giving the euro extra strength.) Japan's 57 years of boring governance, large population and habit of paying off debts made the yen respectable. So, the natural result of Western and American policy are a strong euro, a strong yen and a strong pound. From there, the natural tendency would be to diversify into a basket of currencies.

[Hard_Justice 0]

Originally posted by: GMT

Originally posted by: Hard_Justice

Originally posted by: John Kirby

I don't see this happening anytime soon. And why would several prominent countries from around the world conspire against the American dollar?quote>

Because America is the big boy on  the block and they would like to take us down a notch or two.

quote>

yeah, sure, tear down america, it's tha haunted state from hell... big B-S here!

what about it's just because the dollar is getting weaker and weaker!? It's by far no longer THE currency on earth that it used to be say 25 years back. Same for the US economy. It's by far no longer THE big economy on earth.

So why still adjusting to something that lost / is losing it's supremacy? Out of consuetude?

At least that's the point in the whole story. Why calculating the oil price (after all probably the most precious good on earth) with a currency that is no longer number 1?

I know this is something many americans can't cope with, but I guess they better get used to it cuz things are changing ever since and atm it looks like america is losing more and more of it's once so bright supremacy... and even better: don't feel offended by it.

quote>

Don't get where you think I was tearing down America.  Heck I am an American.  At least I have enough respect for our Country to spell it properly with a capital "A".  I am just speaking the truth.  We are the only big boy on the block and Iran, China and North Korea are dyeing to become the big boy on the block.  Why do you think they are messing around with this nuclear junk?  If they can lower the value of our dollar more then what it is then that would really hurt our economy and if our economy is bad we are in a weaker state.

[sneakeypete 16]

Hahaha, Iran and NK are certainly trying to assert dominance, but hardly trying to become "the big boy on the block". they're simply not big enough in the first place.

[Patricius Maximus 236]

Originally posted by: crazychickensc12

Just came across this interesting piece, our trade partners across the pond (Middle East, China, France, Russia) want to stop using the US dollar to set the value for oil trades!!

quote>

Smart move. The dollar will inevitably be destroyed as a medium of exchange by the massive devaluing instigated by the Fed.

[A Nonny Moose 8,261]

Originally posted by: sneakeypete

Hahaha, Iran and NK are certainly trying to assert dominance, but hardly trying to become "the big boy on the block". they're simply not big enough in the first place.quote>

Watch it!  History bites!  Remember the Persian Empire?  I am sure the Iranians and Iraqis do.

[hamsterTK 93]

I suspect that other big country a little to the east probably would take issue, though...