Posted on 05/15/2005 5:14:47 AM PDT by RaceBannon
Putin: Why Not Price Oil in Euros? By Catherine Belton Moscow Times October 10, 2003
President Vladimir Putin said Thursday Russia could switch its trade in oil from dollars to euros, a move that could have far-reaching repercussions for the global balance of power -- potentially hurting the U.S. dollar and economy and providing a massive boost to the euro zone. "We do not rule out that it is possible. That would be interesting for our European partners," Putin said at a joint news conference with German Chancellor Gerhard Schroeder in the Urals town of Yekaterinburg, where the two leaders conducted two-day talks. "But this does not depend solely on us. We do not want to hurt prices on the market," he said. "Putin's putting a big card on the table," said Youssef Ibrahim, managing director of the Strategic Energy Investment Group in Dubai and a member of the U.S. Council on Foreign Relations, an influential body of leading world thinkers thought to help set the United States' foreign policy agenda. "In the context of what is happening worldwide, this statement is very important," he said.
Putin's words come in the wake of a protracted drive by the EU to attract more countries' trade and currency reserves into euros, in a bid to chip away at U.S. hegemony over the global economy and money supply. A move by Russia, as the world's second largest oil exporter, to trade oil in euros, could provoke a chain reaction among other oil producers currently mulling a switch and would further boost the euro's gradually growing share of global currency reserves. That would be a huge boon to the euro zone economy and potentially catastrophic for the United States. Dollar-based global oil trade now gives the United States carte blanche to print dollars without sparking inflation -- to fund huge expenses on wars, military build-ups, and consumer spending, as well as cut taxes and run up huge trade deficits.
In a way, we just did! :)
The Arabs would use the same curency as the country they took over, dont ya think?
4. I know of no other nation that can withstand a total collapse of the oil supply except for the United States.
Russia, easily.
What's the shape of that supply curve?
I have no clue where you got that number.
My knowledge tells me it is less than 1%.
Anyway, this article is bogus.
That's not how it works.
In order to purchase the oil, you need to purchase in dollars, not Euros.
That means currency exchange, and that is not done in thin air, there has to be that currency available to exchange.
THAT means that currency has to be physically present in some bank to be drawn upon.
In order for that to happen, the money has to be solvent, not just printed, and for that large enough of a currency to be the WORLD'S trading currency, the originating nation must be solvent, and the trading of this currency is one of the reasons it IS solvent.
To remove the Dollars from the trading cycle of the world, means that the economy of the entire country is at stake because there is no more world wide trading of Dollars to keep the money system fluid.
Not enough of the world buys our stuff anymore, so, trade wont doit, especially with the trade deficeits we have.
That is why thisis an issue.
One other thing, just imagine what investors in our bonds and stocks would do, knowing that our economy is going downhill due to the switch to the Euro? They will pull their money out as fast as they can. THAT will hasten the demise of our economy.
This is not just a game of what if: This was suggested in the mid-90's also.
Umm, no.
SOTU 2003
The United States will ask the U.N. Security Council to convene on February the 5th to consider the facts of Iraq's ongoing defiance of the world. Secretary of State Powell will present information and intelligence about Iraqi's -- Iraq's illegal weapons programs, its attempts to hide those weapons from inspectors and its links to terrorist groups.
We will consult, but let there be no misunderstanding: If Saddam Hussein does not fully disarm for the safety of our people, and for the peace of the world, we will lead a coalition to disarm him.
The first and foremost reason given for months. Do you not remember poor Colin Powell having to give that ridiculous speech at the UN? Complete with transfer truck labs and suggestions of underground 'garages' of WMDs? Freeing the Iraqi people was a somewhat excuse but nothing gets the peoples riled like threats of WMDs.
As for your nonsensical going to Iraq to 'free its people' I suggest you reread Adams' advice that is still, even more so, true today.
She well knows that by once enlisting under other banners than her own, were they even the banners of foreign independence, she would involve herself beyond the power of extrication, in all the wars of interest and intrigue, of individual avarice, envy, and ambition, which assume the colors and usurp the standard of freedom. The fundamental maxims of her policy would insensibly change from liberty to force....
She might become the dictatress of the world. She would be no longer the ruler of her own spirit....
Of course don't let such words and beliefs mislead you from your 'conservative' principles.
Thanks for the post. Have seen this argument elsewhere. Has some good information.
Which is where the counterfeiter comes in with his superdollars and saves the day by printing surplus fiat at 0% interest!
We did in fact, but not real terms. China is building bases along the route from ME in case we decide to interdict their oil. There are a lot of chess moves going on. EU rages about the US in Iraq in public but in private they are quite content for us to be there.
The lefty line is that we went to war to steal the oil out of the ground. That's not my premise at all.
We didn't go to war to free the people of Rwanda, or the people of Syria or the people of Belgian congo. We have no national interests in those countries.
But we do have a national interest in ensuring that oil is flowing. We didn't go to Iraq to steal their oil as the libs tell it.
But, among other reasons, we DID go to Iraq to turn on the spigots and increase the amount of oil in world markets in order to keep prices at a reasonable level and to stem the tide of money flowing into the magical kingdom of SA.
If you don't believe that, you're living in a fantasyland.
How can you be so confident that it might not be the next excuse? ;o)
What's a pop-up ad? ;o)
A pop-up ad is something I am afflicted with from time to time because of sites my husband visits. Usually I can get rid of them, but this one happened to surface ysterday, which struck me as odd given the nature of the story I am reading today.
Know of any locations of Chinese bases being built?
Pakistan and Indonesia
The United States was not attacked by Iraq however. After reading your entire statement, I realize you can't fit Adams statement of not 'spreading democracy' into any argument justifying Bush's invasion of Iraq. Bush is doing exactly what Adams warned against. I also realize you haven't apparently read any of the other Framers' opinions. But to be a Republican, all you need is to invoke the name and forget what they said, isn't it?
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