What is Digg?Sponsored by Travelzoo
Take Advantage of Ridiculously Low Holiday Airfares view!
travelzoo.com - Flights $52 and up for Thanksgiving, Christmas & New Year. But move on it now.
189 Comments
- Pile, on 10/12/2007, -14/+101This is what happens when the U.S. alienates the rest of the world.
- MrDiggle, on 10/12/2007, -19/+82This is a big reason why we invaded Iraq and are banging our war drum at Iran.
- Aldur, on 10/12/2007, -7/+59Dollar hegemony might me coming to an end
http://www.house.gov/paul/congrec/congrec2006/cr021506.htm - loudribs, on 10/12/2007, -12/+58dollar hegemony is pretty much at an end as is american hegemony in general...this is a very different world to 5 years ago.
- Groovemaster, on 10/12/2007, -22/+66"I know, those people did not deserve to be free of a dictator that practiced genocide.."
They definitely didn't deserve what America's done to their country.
Do you honestly believe the Iraqis have it better now than they did before the US invaded *cough* sorry... "liberated" them? - littlebylittle, on 10/12/2007, -12/+48Time for Cheney to "resign" too. Man oh man have these clowns f*cked up our country.
- InetRoadkill, on 10/12/2007, -7/+40It wasn't supposed to cost $354 billion. BTW, your numbers are out of date. Bushco has requested another $100 billion to continue the war bringing the total to $454 billion.
It's true that Iraq's push for OPEC to use the euro vs. the dollar was part of the reason for the Iraq invasion. Having a puppet government under US control right smack in the middle of the middle eastern oil fields was the other. The human rights angle was just a smoke screen to make the war look noble. - n8to, on 10/12/2007, -3/+34@ skyshock21
I think you're joking about Iran's lack of importance in the world energy market. You're right - they're not as big as Saudi Arabia when it comes to oil, but then again, third place is nothing to laugh at
http://en.wikipedia.org/wiki/Image:World_Oil_Reserves_2005.png
Oh, and they're second in the world for proven reserves of Natural Gas
http://www.infoplease.com/ipa/A0872966.html
So we're not doing anything to curb our demand for oil and gas, and we're certainly not doing anything to make nice with the suppliers... What's going to happen here? - SteelChicken, on 10/12/2007, -9/+38good for them.
I am a Patriotic American, and I hate Bush and everything hes done to ruin our image and economy in the world. Having a single Hyperpower with no checks and balances is a BAD idea. We need another country or bloc (like the EU) to balance out the US's dominance in economic matters. This is good for *everyone*.
Balance of power is good... - o2o2o2o2, on 10/12/2007, -6/+34Actually YES!, YES!, YES, and YES!!!!!
Iran switches to the euro, the euro value will start to rise and the rest of the oil world will see this. Oil around the world is currently based on the us dollar. Then other countries will also convert to the euro so they can make even more money than if they sold it by the us dollar. Well........ You dont keep euros in us banks....... thus all the money the world has in oil will shift from us banks to european banks.
Worse: With all the money gone from oil, us banks cant cover thier debt, thus banks fail. And then it all becomes a crap sandwich from there........
So why did we invade iraq? Because Sadam was starting to sell oil for euros and this would collapse the us economy. We invaded iraq to save the us economy.
Iran is too big to deal with, we will proubably just nuke em. - br0ck, on 10/12/2007, -15/+40So the US spent $351,400,000,000 so far just to make sure they keep using dollars instead of Euros? Couldn't we have just given them $1,000,000 and asked them not to pretty please not switch?
- glock22ownr, on 10/12/2007, -4/+28This isn't really surprising or shocking news... somehow I get the feeling that Iran does not like the US... but I do agree with loudribs this is a very different world.
- funk49, on 10/12/2007, -3/+22Queue up the bombs...this is pretext for war. Saddam was pushing the same thing when they dropped a bomb on him in the middle of the night. It's estimated by financial and economic experts that if the world's oil market switched from $USD to Euros, the $USD would lose 20-30% right off the top, virtually overnight. The dollar is already weak as it is, so this wouldn't help matters.
It would be interesting to see what would happen if the $USD lost 20% of it's value in a very short time. If Iran is pushing this, I doubt you'll see the Saudis go along (sunni vs. shiite issues.) - sirloin, on 10/12/2007, -4/+20I hate bush
and yeah i think he has caused many deaths
he is an evil man
but i would fight any country that came into america to remove him for me.
people dont always want to be saved from their leaders. - VolatileWhimsy, on 10/12/2007, -2/+17"Analysts said Tehran had been steadily shifting its foreign-held assets out of dollars since 2003"
Since 2003... - sfacets, on 10/12/2007, -10/+24Exactly: This is what Iraq wanted to do - and lo and behold! Weapons of mass destruction... Looks like we are leading up to a repeat. Unfortunately the excuse this time seems to lack imagination - they are merely going to use the same one.
- inactive, on 10/12/2007, -6/+20shortly before the 2003 invasion, iraq was dealing oil in euros - in addtion to dollars - and reported profits from the practice. it was rumoured that other oil countries may copy the example. shortly after the invasion iraq went back to requiring dollars exclusively. countries having to keep reserves of dollars for oil transactions means immense profit for the usa. long story but in a simplistic example, usa can just print dollars and import cheaply from the japanese who need oil and eventually see those dollars invested back. saudi arabia, one of the most strict blood-line based monarchies in the world is tolerated (e.g. they don't even allow the existence of movie theaters), but require dollars for oil transactions. iran and venezuela openly advocate additional use of euros. while europe is reluctant to support those wars, uk 'happens' to not be using the euro.
- The_Wallbanger, on 10/12/2007, -6/+19@ Volitile Whimsy: I'm sure Iraqi citizens are very excited to know that their wetlands are in better condition. It probably has something to do with the impossible logistics of getting car bombs into the swamp.
- inactive, on 10/12/2007, -6/+18This may be a more devastating attack than a nuclear bomb, but only if other oil states and traders follow their lead. I doubt the Saudis will, or Canada. But if they do it will hit us harder than you might imagine.
- sfacets, on 10/12/2007, -7/+19@Metman : No you duck, you invaded it because it wanted to base it's economy on the Euro. Read a little.
- Metman, on 10/12/2007, -4/+15"You've been ***** Canada over on "free trade" so why shouldn't Canada switch to Euros?"
Show me.
Why is it then we lose 212 million a year in trade deficit to Canada? - otheruser, on 10/12/2007, -5/+15Volatile, here's an article on the dailykos on the effectiveness of the school system.
http://www.dailykos.com/storyonly/2006/12/16/202913/13
Quick summary:
"But today, across the country, campuses are being shuttered, students and teachers driven from their classrooms and parents left to worry that a generation of traumatized children will go without education.
Teachers tell of students kidnapped on their way to school, mortar rounds landing on or near campuses and educators shot in front of children.
This month insurgents distributed pamphlets at campuses, some sealed inside an envelope with an AK-47 bullet. "
It's nothing to be proud about. - littlebylittle, on 10/12/2007, -6/+16"So the US spent $351,400,000,000 so far just to make sure they keep using dollars instead of Euros?"
Apparently yes.
Cheney is such a good puppet master isn't he? It's time for him to "resign" too. - The_Wallbanger, on 10/12/2007, -4/+14We've known this about this dimension of the Iraq War for years. Read about it here:
http://www.projectcensored.org/publications/2004/19.html - jambox, on 10/12/2007, -7/+17@volatilewhimsy
Ah, we meet again! I don't think Iran would be playing hardball on the nuclear issue or indeed being so beastly to Israel if the US hadn't invaded Iraq.
Now weigh it up. You don't even need to consider the tens/hundreds of thousands or Iraqis killed to know that Iraq was a terrible move. - zydeco, on 10/12/2007, -3/+12There's a really good paper on this subject:
http://www.ratical.org/ratville/CAH/RRiraqWar.html
The summary is simple: if OPEC switched to the Euro, everyone would start cashing in their US Dollar reserves to build up cash reserves in Euro. If that happens, the American economy hits the wall. Hard.
It makes perfect sense when you read it (it's long and sticky, but worth it). - inactive, on 10/12/2007, -1/+10@Metman
I'd love to know how this could strengthen the dollar. If a country decides to trade oil in Euros instead of dollars, they trade the dollars they have in reserve for Euros. Simple really.
The more countries that decide to do this, the more dollars flood the market, the less they become worth. Economics 101, as you Americans would say. - CorpT, on 10/12/2007, -5/+14This is digg. Why would you need a flame retardant suit for bashing America? It's practically the motto around here.
- Metman, on 10/12/2007, -1/+8No *****.
I was reading the comments here thinking the two years I spent sleeping.. erm studying economics was actually well spent.
If this is a gradual change over the course of the next ten years, there are actually many benefits to this including reducing dollar to oil volitility. In addition, I think there are many here who do not realize that the US is the third largest oil producer in the world. - n8f8, on 10/12/2007, -2/+9They should be using a basket of currencies anyway.
- goatswii, on 10/12/2007, -4/+11Good luck with this one. Users here know as much about economics and Donald Trump does about crafting a passable comb-over.
- artman, on 10/12/2007, -2/+9The History of Oil - Go to Details on the right and click on the fourth thumbnail (at 22 min. 50 sec.).
http://video.google.com/videoplay?docid=7374585792978336967&q=the+history+of+oil
No more magic checkbook. If Venezuela follows suit, this country is in for a Hell of a recession. Or worse.
/and there's never been a better explanation for the predicament the USA & UK has been in...
- inactive, on 10/12/2007, -10/+16You've been ***** Canada over on "free trade" so why shouldn't Canada switch to Euros?
- 4degrees, on 10/12/2007, -6/+12yes, it is the song i am singing right now.
- schnuck, on 10/12/2007, -3/+9"Just like most of you have said, their leader is a moron and does not reflect the views of the country..."
welcome to america! - inactive, on 10/12/2007, -0/+6Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second. Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the Bank for International Settlements said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling. The BIS, the central bank for the developed world’s central banks, is customarily cautious in its language. However, it noted: “While the data are not comprehensive, they do appear to indicate a modest shift over the quarter in the US dollar share of reporting banks’ liabilities to oil exporting countries.” The review shows that Qatar and Iran, whose foreign exchange policy has sparked widespread market speculation, cut their dollar holdings by $2.4bn and $4bn respectively. Such shifts may be modest compared with the total assets held, but they provide a crucial indication on future thinking. Currency switches are likely to be progressive, subtle and discreet, as untoward attention could hit the dollar, lowering the value of depositors’ remaining dollar-denominated assets. The last time oil-exporting countries cut their exposure to the dollar – in late 2003 – it pushed the euro to an all-time high against the dollar. Eighteen months ago, the exposure to the dollar of oil producing countries was above 70 per cent. BIS data is the best guide financial markets have to the currency investment trends of oil producers, which otherwise do not provide figures. The rise in oil prices since 2002 means oil producing countries have amassed a current account surplus of about $500bn, according to the IMF. This is 2½ times the current account surplus of China. Overall, Opec’s dollar deposits fell by $5.3bn, while euro and yen-denominated deposits rose $2.8bn and $3.8bn, respectively. Placements of dollars by Russians rose by $5bn, but most of their $16bn additional deposits were denominated in euros.
- blackjack75, on 10/12/2007, -0/+5Oh lord, now Americans even start hating Canada?
I want my 1995 world back. (Ok, not for windows 95). - physphd, on 10/12/2007, -0/+5@Koala
That is precisely the opposite of how it works. Since oil will be increasingly traded in Euros, US dollars will be sold off in an increasing amounts to buy them. A decreased demand for US dollars negatively impacts the exchange rate and the purchasing power of the dollar. There is no realistic scenario here that strengthens the dollar.
The most obvious negative implications are that our already crippling national debt will increase substantially (since those are debts owed to foreign countries and the dollar's power has fallen relative to those currencies which will increasingly be Euro-pegged) creating the temptation for an increase in the money supply which is, essentially, pure inflation (not worrying about other components of M.) This is a scenario that has played out a number times in other countries in the last several decades. - paulmdx, on 10/12/2007, -1/+6Considering a big proportion of UK petrol prices are tax, I would doubt it.
- GruntboyX, on 10/12/2007, -4/+9From the article, it appears IRAN is reacting to their inability to conduct them selves because the US is closing their ability to trade dollars. I imagine the EU will do the same with the Euro if the international pressure about their nuclear weapons program persists.
But....this is like the golden egg i am sure the EU has been looking for to increase the value of their currency. Should prove interesting. - jambox, on 10/12/2007, -1/+6Luck for the US that they control the WTO, teh World Bank and the IMF, then.
But it could still happen.
Looks like you'll be cosying up even closer to those lovely Sauds and Russians! - dBLiSS, on 10/12/2007, -4/+9@Sirloin
It is true. It may have been bad under Sadam but it was safer then it is now, and it was their government. People throughout history have always revolted against governments once the get so bad. At least they had consistent electricity and clean water under Sadam. - 4degrees, on 10/12/2007, -18/+23good move. to hell with us damn Americans. lessons are often hard learned.
(let me put on my flame retardant suit now) - GruntboyX, on 10/12/2007, -1/+6@ Aldur
After reading your hyper link i just want to go and smash my computer throw my ipod away and run to the country and become a farmer. At least if my country denigrates around me, I can still eat. Thank God i don't owe anyone any money. No credit cards, No car loans, No house. Just rent. I am officially depressed....I think i am going to start illegally harboring gold and stockpiling guns. The end is near...... - CedEx, on 10/12/2007, -2/+6Of course they care. Read up on "Currency Devaluation". Basically, as the currency shifts to Euros from USD, the USD value is going to drop due to lower demand. Lower demand, means USD aren't as valued around the world, meaning to buy the same products as before is going to take the US to spend more USD.
If products are getting more expensive, Americans will have to pay more, to pay more, they have to earn more. However, earning power doesn't grow as fast as the devaluation occurs.
Extrapolate all this, and you get a very very bad economic future. This is magnified greatly when devaluation occurs suddenly, as could happen if everyone decided to switch from USD to Euros for trading in oil.
This is why the US is so concerned about the currency for oil. - Metman, on 10/12/2007, -0/+4Did anyone notice the monetary trends while Europe transitioned to the Euro? Without going into extreme detail, nearly everything in Europe is traded by Euro - including oil. This was done when? Now go look at the historical trend of the US dollar during that time period. I do not think any more research beyond that will be necessary unless you really want to delve into the global economy and how it works. I doubt our dollar will get stronger (due to many other factors), but it greatly lessening due to the Euro in this situation is unfounded (at least historically speaking) especially as it has a monetary impact on OPEC as well. There are several sites designed for exchange trading that can explain why some of the situations in some of the comments here are inaccurate. I encourage anyone who is uncertain or confused on how monetary trading (including by commodity) works to go do some reading on the subject.
I would also like to point out this has happened in the past with other commodities over the past 200+ years. Historically speaking the loss of industry and manufacturing have had a much larger impact on the value of the dollar, especially in recent years.
It appears my election to take two years of economics may have actually been worth the boredom. - CoreBurn, on 10/12/2007, -0/+4Maybe if we didn't rely on our gas guzzling montrosities so much and maybe put some real effort into alternative forms of energy & public transportation we wouldn't need their damn oil so bad in the first place!
- jambox, on 10/12/2007, -1/+5he isn't a moron, his strategy of playing super-hardball with the US has been extremely successful so far. Not saying I like him, I think his words on Israel have been reprehensible, but at least so far it's just words. Oh, and this economic hammer blow.
Perhaps the pitiful US foregin policy bods will realise there's more than one way to skin a cat. - inactive, on 10/12/2007, -2/+6>"does any American financial organization care which currency it trades in?"
OooooK... imagine that you are some big shot oil baron in the middle east (or energy trader here)... your palace is filled with hundreds of millions of US$... next morning you wake up and realize that all that PAPER you have is worth about as much as your toilet paper in your bathroom... beacause?
THER IS NO FUC&*NG GOLD BEHIND THE FUC&*NG US $ TO BACK UP ITS VALUE!!!
on the other hand Euro does... - inactive, on 10/12/2007, -1/+5
I love the smell of "yellow cake uranium" from Nigeria in the morning
:) -
Show 51 - 100 of 189 discussions
© Digg Inc. 2009
— Content created and posted by Digg users is 