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Re: Russia to STOP pricing Oil in $
in related news (at least to me)...Originally posted by Mega View Post
Euro surpasses 1.50-dollar mark for first time
4 hours ago
WASHINGTON, Feb 26, 2008 (AFP) — The euro broke the 1.50-dollar mark for the first time ever Tuesday in the wake of lackluster US economic reports that renewed fears the American economy could be falling into a recession. -
Re: Russia to STOP pricing Oil in $
Anyone want to comment on Greenspan telling the Gulfies that they could reduce their inflation if they dropped the dollar peg?Comment
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Re: Russia to STOP pricing Oil in $
It is interesting how few people picked up the fact that Saddam Hosein had made rumblings about switching to Euros for oil before he was deposed.
Personally, I have always believed that this was one of the central motivations behind the war. There were a few stories about it here and there back in 2003-4. But in all honesty, I have not done the research to fully support this theory.
I do not think anything along these lines will happen in the near term, but it does demonstrate that major economic powers are getting nervous about the dollar and are looking for ways to decrease their exposure. This will get very interesting, as China could well have us by the Bonars.
Cowards die many times before their deaths; the valiant never taste of death but once.Comment
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Re: Russia to STOP pricing Oil in $
blasts from the past: Saddam lays foundation for nascent euro fan club - The Financial Times - November, 1 2000Originally posted by Basil View Post
Oil prices rise on Iraqi threat - Reuters - October 27, 2000The unloved euro has found an unlikely friend in Saddam Hussein, the Iraqi leader.
Late on Monday the United Nations agreed to Iraqi demands that it be paid for its oil in euros, as part of Mr Saddam's long-running campaign to undermine the global hegemony of the US dollar. Iraq had threatened to stop selling oil if the UN failed to agree to its demand by today.
Dealers in the foreign ex-change market have tended to view Iraq's vendetta against the dollar, a symbol of America's dominance, as an amusing sideshow.
"The euro's fan club is growing by the day," said Michael Lewis, a senior economist at Deutsche Bank in London. "It'll be Kim Jong-il next," he added, referring to the North Korean leader, another ideological foe of the US, despite signs of a thaw in relations. But the effect on the euro is not to be sneezed at.
[..]
On Monday speculation that Iraq planned to convert the account helped the euro climb more than a cent to above Dollars 0.85 for the first time in two weeks.
"It is just hilarious that Saddam Hussein appeared to have been almost as helpful to the euro as G7 intervention," said one senior foreign exchange analyst.
But the significance of the Iraqi move, says Jim O'Neill, head of currency research at Goldman Sachs, goes beyond simply raising the demand for euros on the market. "If others follow this will be very important," he said.
In what one Iraqi source described as a political move, Iraq demanded to be paid for its exported oil in the European currency and not U.S. dollars.
"It appears to be a genuine threat but I'd be surprised if we're looking at a protracted suspension," said Lawrence Eagles, head of commodity research at London brokerage GNI Ltd.
A move by Iraq to suddenly cut off oil exports would cause prices to soar just before the U.S. presidential election, which could influence voters at the polling booth.
[..]
The White House said it was not in Iraq's interest to cut oil exports, adding it made no difference if Iraq was paid in euros or dollars.
"I don't think it matters," White House National Security Council spokesman P.J. Crowley said. "The fact is that whether it's euros or dollars, we have control of his [Iraqi President Sadddam Hussein's] pocketbook, so that we make sure that the revenue from the oil-for-food program is used for food and medicine and not for tanks."
The U.S. Energy Department said the administration was ready to respond if Iraq stopped shipping oil to the United States.
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Re: Russia to STOP pricing Oil in $
Looks like his plan is beginning to bear fruit.Originally posted by babbittd View PostComment
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Re: Russia to STOP pricing Oil in $
dropping the dollar peg is not per se bad for the dollar, as in lowering demand for dollars. it does help solve the terrible inflation problem in the mid east. greenspan is worried about inflation as that is corrosive to mid east economies... it will eventually lead to political backlash against the pro-usa regimes there. that's all he cares about.Originally posted by WDCRob View PostComment
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Re: Russia to STOP pricing Oil in $
That was a remarkable piece of original thinking on his part, wasn't it...:rolleyes:Originally posted by WDCRob View PostComment
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Re: Russia to STOP pricing Oil in $
really. the guy's a ******* genius. "drop the peg"! sez greenspami.Originally posted by GRG55 View Post
Sultan bin Abdul Aziz Al Saud sez, slapping his forehead: "gee, why didn't i think of that"?
and to Prince Bandar bin Sultan he whispers: "blow me".
or something to that effect.Comment
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