Posted on 12/24/2006 4:38:20 AM PST by Flavius
Venezuela has expressed interest in an Iranian move which seeks to ask buyers to pay for oil in euro rather than US dollars.
The oil-rich nation said it planned to see if a similar scheme could be introduced to its crude exports.
Iran, which is the world's fourth-biggest oil producer, has already asked customers to pay for its oil in euro because of the current weakness of the dollar.
Although the dollar is the currency in which oil is usually traded, it has been falling in value against the euro.
Venezuela and Iran, which have strained political relations with Washington, are both members of the oil producers' cartel, Opec.
That is absolutely downright scary. It will suck up billions of dollars annually as a hidden tax going to Chavez's regime.
You heard it first on Dec. 24, 2006. wait and see.
They'll regret it later.
absolutely...which of the muzzie brethren will come to the aid of the a-hole chavez????
none...he is not one of them!!!
There are so many factors I believe are going on here that it is scary.
First, I truly believe that Iran, and now possibly Chavez are doing this, not so much because of the devaluation of the dollar (after all, the price just goes up), but because they want to FORCE a devaluation of the dollar. Economic warfare.
But I will also say that "our" Fed isn't doing much to slow the slide of the value either. With constant printing of more worthless (or getting there) paper money, on top of the huge and escalating debt, our dollar isn't helping itself out.
I believe we have built ourselves into an economic corner. We need more paper money to keep the economy rolling, but that same additional cash (not to mention debt incurred) is literally killing us. It is a very real picture of consumers in the US. And unfortunately, like many consumers, Bankruptcy is a very real threat. How can we continue to run into debt and not expect a fall at some point?
What are you referring to when you talk about the Fed printing money? Apparently, only 10% of money even exists as currency , so that's not the problem. Doesn't treasury control US bond issuance? I guess the fed regulates ratios of banks issuance of credit to deposits ratios. Do you know what you are talking about?
Axis of evil.
First, I truly believe that Iran, and now possibly Chavez are doing this, not so much because of the devaluation of the dollar (after all, the price just goes up), but because they want to FORCE a devaluation of the dollar. Economic warfare.
There is an old saying that, "The only way to win at poker is to Make Change". That is precicely what is going on here...taking advantage of the "spread".
Drive up the Euro, that should make France really happy. :)
New around here, are ya?
We should nationalize Citgo.
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