Fifth currency- How about the iTulip Universal Currency Unit?

[raja]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

1 Silver ozt .999 = 1 iTulip Universal Currency Unit?

Can iTulip develop its own unit of exchange?

Let's heard what you suggest and what would you be willing to trade for it?

I propose an agricultural-based ICU:

5 ears of corn = 1 egg
50 eggs = 1 chicken
15 chickens = 1 goat or sheep
7 goats or sheep = 1 cow

100% inflation-proof - cannot be devalued by government

I have to admit to some self-interest here . . . if this ICU were adopted I'd already be a rich man ;)

[GRG55]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

If the gulf region is just a price taker, why does the US feel the need to be the dominant military power in the region? Why would China need to become the dominant military power?...

renewable: To answer this question properly will require you read some history. I would suggest you start with Daniel Yergin's "The Prize: The Epic Quest for Oil, Money and Power", published in 1990 [it won a Pulitzer Prize]. It will put in context much of what is going on in the Arab world today.

...I don't know if the situation today is the same as the 70s. Maybe the peak cheap oil theory shifts the relative balance of power to who has the oil reserves - and also increases the incentive to hoard existing reserves:

As I said, if we keep on the current path, the outcome you describe could well be the result. However, I remain confident that we won't stay on this path much longer; the current financial and economic turmoil will be the catalyst for the substantial energy policy change that is long overdue. Any power over oil markets that OPEC may secure in future will probably prove just as fleeting as those brief days of glory in the 1970s.

And, unlike most knee-jerk, anti-Americans, of which there is no apparent shortage in this world at present, I am also equally certain that it will be the USA, not Europe, that will lead this transformation. Unfortunately it's going to be a very long and very rough road to get there...

[renewable]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

renewable: To answer this question properly will require you read some history. I would suggest you start with Daniel Yergin's "The Prize: The Epic Quest for Oil, Money and Power", published in 1990 [it won a Pulitzer Prize]. It will put in context much of what is going on in the Arab world today.

I was asking if you could answer it - there appears to be a contradiction between your assertion that the gulf is a price taker and the importance of military occupation of the region.

I'm not particularly nationalistic on who will solve the globe's problems - hopefully it will be a global attempt. It will be interesting to see if we are quick enough.

[Jay]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

In that case it makes Jay the logical nominee as Comptroller of the Currency...;)

Sweet, I won't print, I promise....

[GRG55]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

I was asking if you could answer it - there appears to be a contradiction between your assertion that the gulf is a price taker and the importance of military occupation of the region.

I'm not particularly nationalistic on who will solve the globe's problems - hopefully it will be a global attempt. It will be interesting to see if we are quick enough.

There is no possible way I can write a proper answer to your question in this space. It would be like trying to answer the question "Why did WWII occur?" in an iTulip posting. Not possible; I am sorry.

However, I do not see the contradiction you do. Remove the military and the single largest regional source of crude oil to the world becomes much less certain. None of these nations trust any of the others [the attitudes that caused Saddam to annex Kuwait have not, and will not, go away] and the Sunni ruling Arabs on the west side of the Gulf, many with substantial Shia populations including the Eastern Province of Saudi Arabia, fear belligerence and political interference from Iran. It's the military presence that "keeps the peace", props up the vulnerable Ruling Families in the interests of "stability", ensures the oil supply and keeps the price down...

See also: http://www.itulip.com/forums/showthr...Iran#post78448

[renewable]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

There is no possible way I can write a proper answer to your question in this space. It would be like trying to answer the question "Why did WWII occur?" in an iTulip posting. Not possible; I am sorry.

Hmmm.... Anyway - I've ordered the book - It will be interesting to see if it will change my current disposition towards the petrodollar warfare theory.

It's the military presence that ensures the supply and keeps the price down...

Quite.

[Adeptus]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

Why re-invent the wheel? I say if we can't beat them, then we might as well join them. Check out this ICU. :p

[renewable]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

Why re-invent the wheel? I say if we can't beat them, then we might as well join them. Check out this ICU. :p

That's classic - just bought one - stupid premium over spot, but worth it for comedy value

[Chris Coles]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

And, unlike most knee-jerk, anti-Americans, of which there is no apparent shortage in this world at present,

While I appreciate the dig in the ribs from my earlier post, which in truth was indeed tongue in cheek, I would not want to be seen as anti American. Yes, I am deeply critical of some aspects, but overall, the USA has much going for it.

As for the long term? The weakness in your argument is that Europe is not entirely centred upon a damaged banking system. yes, in part it is a global problem, but there are marked differences between the best and the worst and Europe may in the end come up trumps. But only time will tell the full story.

[GRG55]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

While I appreciate the dig in the ribs from my earlier post, which in truth was indeed tongue in cheek, I would not want to be seen as anti American. Yes, I am deeply critical of some aspects, but overall, the USA has much going for it.

As for the long term? The weakness in your argument is that Europe is not entirely centred upon a damaged banking system. yes, in part it is a global problem, but there are marked differences between the best and the worst and Europe may in the end come up trumps. But only time will tell the full story.

Chris: My characterization was absolutely not meant at you, or any of the other thoughtful members on iTulip. When I read much of the "End of the American Empire" stuff that now circulates in the media, I often think that, yes, this may be the end of this American Empire, but I'm not so sure we can confidently declare the end of the American Empire...;)

I too am critical of much of what has, and is, transpiring in the USA. But bad as it is in the USA, I am of the view that Europe is in even more dire straits [and Trichet, among others, remains in denial]. As you say, time will tell...

[Chris Coles]

Re: Fifth currency- How about the iTulip Universal Currency Unit?

Chris: My characterization was absolutely not meant at you, or any of the other thoughtful members on iTulip. When I read much of the "End of the American Empire" stuff that now circulates in the media, I often think that, yes, this may be the end of this American Empire, but I'm not so sure we can confidently declare the end of the American Empire...;)

I too am critical of much of what has, and is, transpiring in the USA. But bad as it is in the USA, I am of the view that Europe is in even more dire straits [and Trichet, among others, remains in denial]. As you say, time will tell...

No problem GRG, just wanted to nail it down. My point about Europe is that the Germans were rightly proud of their success under the constraints of a very strong Mark. They remain a very successful industrial nation. They have absorbed East Germany without dropping the ball. Stumble a little, yes, but not too bad considering the challenge they took on. I too am considerably concerned about the dampening hand of an overpaid bureaucracy and their antipathy towards the new comer, rather favouring the large conglomerates. But something tells me that, with the largest trading concentration, they do have a potential that cannot be disregarded.