Reply to: Why OIL price is tied to the Dollar ?

[HairyArsedBloke]

It used to be priced in GBP but I can't find any useful link to explain when and why it changed to USD.

It's because the main markets for trading oil are in the US and are in USD. I don't think there is any fixed reason why it has to be in USD.

[BigTime]

It used to be priced in GBP but I can't find any useful link to explain when and why it changed to USD. I did come across this piece of sensationalism on the evil British. http://www.larouchepub.com/other/200...brit_game.html

[HairyArsedBloke]

Where is atw when you need him?

EUR seems to have been the next most popular after USD. I still think CHY will take a stronger and stronger position.

Wotz dat den? Swiss Yen?

[BrilloPad]

alien

Can any of you pundits then suggest which currency money should be kept in ? Surely not dollars ?

Where is atw when you need him?

EUR seems to have been the next most popular after USD. I still think CHY will take a stronger and stronger position.

[expat]

alien

Can any of you pundits then suggest which currency money should be kept in ? Surely not dollars ?

Are you looking for good sense, or speculation? The sensible answer is, the currency that you expect to spend in. As for speculation, some of you may have noticed that I have to work for a living. Obviously I do not know how to get rich quick.

[2uk]

alien

Can any of you pundits then suggest which currency money should be kept in ? Surely not dollars ?

[snaw]

Nothing to do with a 99-year lease signed in 1898, hen?

Why let that get in the way of a good old daily mail style rant?

[expat]

Just let them try taking Hong Kong, we'd send out the fleet.

Oh hang on, they've already done it, but they waited for Maggie to retire.

Nothing to do with a 99-year lease signed in 1898, then?

[Not So Wise]

I happen to recall a few months an article which stated that if China dumpedi ts dollar reserves it would be akin to an atomic bomb on the US economy - surely the Chinese must be in a position now - given the chaos on Wall St to do exactly that ?

Sure they are in a position to do that but it's not in their benefit to do so, quite simply because the Chinese own large chunks of corporate America, they are the second largest holder of U.S. Bonds and Treasury Notes and USA is the largest importer of Chinese goods in the world
So while they could tank the economy at any time, they would take a nearly as big hit themselves
But it has been known for a while the Chinese have been slowly but surely quietly offloading their dollar reserves at discounted prices, which on top of everything else weakened the dollar even more

[TimberWolf]

Remember China has already threatened to use (real) Nukes against the US should they decide to intervene with Chinas claim to Taiwan.

Just let them try taking Hong Kong, we'd send out the fleet.

Oh hang on, they've already done it, but they waited for Maggie to retire.

[AlfredJPruffock]

Because when a country starts trying to sell it's oil in anything but USD, America does one of following

*Invade (Iraq)
*Declare you a terrorist supporter and threaten to invade (Iran)
*Declare you a corrupt commy pig and start financially supporting your enemies (Venezuela)

And US will continue to do this and get away with it until the Saudi's turn against them, which will never happen because USA is their biggest supporter, even though Saudi Arabia makes Iran and North Korea combined look liberal and democratic and produces majority of islamic terrorists.

But on flip side, less than 7 years ago all LARGE transactions in banking instruments used to be always in USD, but that has been changing a lot recently, partially due to the weaking dollar but more because of the massive interfearance by the US Fed Reserve in transactions that had nothing to do with them beyond the payments being made in USD

Interesting points.

I happen to recall a few months an article which stated that if China dumpedi ts dollar reserves it would be akin to an atomic bomb on the US economy - surely the Chinese must be in a position now - given the chaos on Wall St to do exactly that ?

Remember China has already threatened to use (real) Nukes against the US should they decide to intervene with Chinas claim to Taiwan.

[Not So Wise]

Because when a country starts trying to sell it's oil in anything but USD, America does one of following

*Invade (Iraq)
*Declare you a terrorist supporter and threaten to invade (Iran)
*Declare you a corrupt commy pig and start financially supporting your enemies (Venezuela)

And US will continue to do this and get away with it until the Saudi's turn against them, which will never happen because USA is their biggest supporter, even though Saudi Arabia makes Iran and North Korea combined look liberal and democratic and produces majority of islamic terrorists.

But on flip side, less than 7 years ago all LARGE transactions in banking instruments used to be always in USD, but that has been changing a lot recently, partially due to the weaking dollar but more because of the massive interfearance by the US Fed Reserve in transactions that had nothing to do with them beyond the payments being made in USD

[EqualOpportunities]

I wonder if USD as the world reserve currency will end soon. What wil it be? Chinese currency presumably?

PS what is the Chinese currency anyway?

It is the Yuan Renminbi.

[Paddy]

The Dollar is dying as an oil trading currency. Iraq chose to use the Euro but was stopped by the US after the invasion. Iran has started selling their oil on the Iranian Borse; they will only trade in Euros and Yen, this is the real reason the US wants to attack Iran. Russian is trading it’s oil in Euros, Rubbles and Dollars but they are trying to ditch the Dollar. Russia has started on on-line Borse this week so anyone one can trade their oil online.

[HairyArsedBloke]

I wonder if USD as the world reserve currency will end soon. What wil it be? Chinese currency presumably?

PS what is the Chinese currency anyway?

1. Not likely
2. see above
3. No chance
4. Renminbi / Yuan ISO: CNY