The Price of Oil

[AlfredJPruffock]

However the biggest issue here is the fact that it doesnt matter what currency oil is traded in ...

Au contraire MM it really does matter to the US that the petrodollar remains the de facto trading currency.

Big time.

[Mailman]

Actually no it doesnt. What matters is where the profits from those oil trades is invested.

Mailman

[AlfredJPruffock]

Actually no it doesnt. What matters is where the profits from those oil trades is invested.

Mailman

Well let me put in his way MM, were you to somehow change the petrodollar standard to an alternative,you would find yourself on the wrong end of a B52 payload quicker than you could say Democracy and Freedom.

Let me control the money of a country and I care not who is in power.

Rothschild

[Mailman]

Again...it makes no difference what you use to buy your oil with.

What makes a REAL difference is where the funds from the profits from oil sales is invested. Perhaps if Iran managed to coerce every country in the world to stop investing in America then they may find themselves on the receiving end of a few B52's.

Having said that though, I guess it does make for a nice juicy conspiracy to continue to believe the rubbish about changing the currency of oil trading

Mailman

[sunnysan]

Mm

Surely having to buy oil in dollars would mean that countries have to hold bigger dollar reserves therefore increasing demand for the dollar, thereby increasing its value.

If that is true then , yes it does matter what currency is used to buy oil.

[AlfredJPruffock]

Surely having to buy oil in dollars would mean that countries have to hold bigger dollar reserves therefore increasing demand for the dollar, thereby increasing its value.

If that is true then , yes it does matter what currency is used to buy oil.

Not according to MM as it seems to just be a conspiracy theory.

Mark you MM advocates that WMDs from Iraq were transferred to Syria, so much for conspiracy theorys !

[expat]

Surely having to buy oil in dollars would mean that countries have to hold bigger dollar reserves therefore increasing demand for the dollar, thereby increasing its value.

If that is true then , yes it does matter what currency is used to buy oil.

Exactly. When you hold dollars to buy and sell oil with, you are already investing in the Us economy.

[Mailman]

Surely having to buy oil in dollars would mean that countries have to hold bigger dollar reserves therefore increasing demand for the dollar, thereby increasing its value.

If that is true then , yes it does matter what currency is used to buy oil.

Sounds like a reasonable assumption to make. However you did use the correct word in your last bit there, IF.

If True, however more likely its not true since a number of leading economists have already pointed out the dollar v euro "debate" is already baseless (but it does make for a nice conspiracy ).

Again, it doesnt matter what is used to buy oil but where those profits are invested. I think the problem with this statement is that its so simple that Alfred cant understand it (since it goes against everything he loves so dearly).

Mailman

[AlfredJPruffock]

Sounds like a reasonable assumption to make. However you did use the correct word in your last bit there, IF.

If True, however more likely its not true since a number of leading economists have already pointed out the dollar v euro "debate" is already baseless (but it does make for a nice conspiracy ).

Again, it doesnt matter what is used to buy oil but where those profits are invested. I think the problem with this statement is that its so simple that Alfred cant understand it (since it goes against everything he loves so dearly).

Mailman

MM curious as to which leading economists ascertain that the debate is baseless,especially with regards to US dollar reserves ?

[Mailman]

Info from internal economic papers, which I trust any day over anything ever posted on the net as being "fact"

The currency that oil is purchased in makes no difference since you will get the same amount of oil regardless of whether you want to use ringits, pounds, tolars, sea shells etc.

Also to say that the dollar is backed by oil is another ignorant idea. Yes if you were talking about gold (since you can front up and ask for the value of the money you have in gold). However if you front up and ask for the value of your money in oil you will most likely get looked at like you were a gimp

I know, you WANT to continue to believe in the myth that is the iran oil burse. Please do because it distracts you from find the truth on far more important issues, like whether the moon landings were in fact staged!

Mailman