Posted on 11/17/2007 3:16:53 AM PST by SkyPilot
The dollar could collapse if Opec officially admits considering changing the pricing of oil into alternative currencies such as the euro, the Saudi Arabian foreign minister has warned.
Prince Saud Al-Faisal was overheard ruling out a proposal from Iran and Venezuela to discuss pricing crude in a private meeting at the oil cartel's conference.
In an embarrassing blunder at the meeting in Riyadh, ministers' microphones were not cut off during a key closed meeting, and Prince Al-Faisal was heard saying: "My feeling is that the mere mention that the Opec countries are studying the issue of the dollar is itself going to have an impact that endangers the interests of the countries. "There will be journalists who will seize on this point and we don't want the dollar to collapse instead of doing something good for Opec."
After around 40 minutes press officials cut off the feed, which had been accidentally broadcast to the press room.
Prince Al-Faisal added: "This is not new. We have done this in the past: decide to study something without putting down on paper that we are going to study it so that we avoid any implication that will bring adverse effects on our countries' finances."
Iran and Venezuela have argued that the meeting's final communique should voice concern about the level of the dollar, which has recently fallen to new record lows against the euro. They are pushing for oil to be denominated against a basket of currencies.
The greenback also weakened slightly against the pound, although sterling's own recent weakness has pushed it down from $2.10 to $2.0457 during the week.
Nigerian finance minister Shamsuddeen Usman said that Opec could declare in the communique that: "While underlining our concern for the continued depreciation of the dollar and its adverse impact on our revenues, we instruct our finance ministers to study the issue exhaustively and advise us on ways to safeguard the purchasing power of our revenues, of our members' revenues."
Chancellor Alistair Darling will today urge his fellow finance ministers at a major G20 summit to increase investment in oil production and refinement.
Incoming!
The Curious Bush Recovery
lewrockwell.com | February 19, 2004 | Steven LaTulippe
Posted on 02/20/2004 7:02:29 PM EST by Destro
http://www.freerepublic.com/focus/f-news/1082373/posts
Beyond Hegemony
National Journal | Dec. 1, 2006 | Paul Starobin
Posted on 12/03/2006 8:08:57 PM EST by neverdem
http://www.freerepublic.com/focus/f-news/1747976/posts
Foreign investors flee US securities
The Financial Times | 10/16/07 | Michael Mackenzie
Posted on 10/17/2007 1:09:52 AM EDT by bruinbirdman
http://www.freerepublic.com/focus/f-news/1912312/posts
What’s The Damage?
Why Banks Are Only Starting to Uncover Their Subprime Losses
Yahoooooo! | November 4, 2007 | Gillian Tett & Paul Davies
Posted on 11/05/2007 9:17:03 AM EST by Diana in Wisconsin
http://www.freerepublic.com/focus/f-news/1921125/posts
Dollar falls to record low versus euro on China report in Asian trading
AP | November 7, 2007 | staff
Posted on 11/07/2007 7:26:23 AM EST by DeaconBenjamin
http://www.freerepublic.com/focus/f-news/1922164/posts
[snip] “Charts indicate that the euro still has plenty of room to go up” versus the dollar, said Mamoru Arai, a senior vice president of the foreign exchange division at Mizuho Corporate Bank. [end]
Rising Demand for Oil Provokes New Energy Crisis
New York Times | November 9, ,2007 | JAD MOUAWAD
Posted on 11/09/2007 9:45:54 AM EST by america4vr
http://www.freerepublic.com/focus/f-news/1923338/posts
Moscow — Off The Map?
(One of the few who are actually starting to get it!)
INA Today | January 18, 2005 | Toby Westerman
Posted on 01/17/2005 11:52:09 PM EST by TapTheSource
http://www.freerepublic.com/focus/f-news/1322883/posts
[snip] the U.S. miscalculates Moscow’s capabilities at its own national peril. Moscow not only is a leader in world affairs, but also supports every nation hostile to the U.S., but the Moscow elite is controlled by the very intelligence services which are supposed to serve the state - not dominate it. The Russian government, led by ex-KGB spymaster Vladimir Putin, consistently aids nations seeking to undermine the U.S. and democratic values from North Korea to Iran. Moscow is the prime weapons, technology, and training supplier for Communist China’s military build-up. [end]
Saudi Arabia is not our friend. (said completely devoid of emotion.) You may believe differently.
OPEC Has Already Turned to the Euro...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.
GoldMoney Alert
February 18, 2004
|
US Imports of Crude oil
|
|||||
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
|
Year
|
Quantity (thousands of barrels)
|
Value (thousands of US dollars)
|
Unit price (US dollars)
|
Average daily US$ per € exchange rate
|
Unit price (euros)
|
|
2001 |
3,471,066
|
74,292,894
|
21.40
|
0.8952
|
23.91
|
|
2002
|
3,418,021
|
77,283,329
|
22.61
|
0.9454
|
23.92
|
|
2003
|
3,673,596
|
99,094,675
|
26.97
|
1.1321
|
23.82
|
We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
The US is the Saudi’s meal ticket; in addition, among what Ariel Sharon once called, those 3000 corrupt princes, there are those who finance al-Qaeda; at minimum, the House of Saud pays for all these mosques around the US, CAIR, and of course, flight lessons. But they aren’t ready to dominate the world, they can’t even dominate the Middle East. They can’t be trusted with a burned out match. They are indeed our enemy, but they are also a sitting duck, and we have a near-monopsony relationship due to our level of consumption. Furthermore, they don’t make *anything* — as P.J. O’Rourke wrote, “the best thing we have going for us at the gas pump is the no-account, bone-idle, useless bums sitting on 65 per cent of the world’s oil... [T]he total nonpetrochemical exports of the Arab world do not equal Finland’s.”
They can’t eat sand, and no one there knows how to work.
Crank up them derricks off the coast of California, drill more in the Gulf of Mexico and Alaska and lets get that low polluting coal out of the ground above the Grand Canyon.
And build refineries.
Like a dropsical man calling out for water, water, our deluded citizens are clamoring for more banks, more banks. The American mind is now in that state of fever which the world has so often seen in the history of other nations. We are under the bank bubble, as England was under the South Sea bubble, France under the Mississippi bubble, and as every nation is liable to be, under whatever bubble, design or delusion may puff up in moments when off their guard.
~~Thomas Jefferson to Charles Yancey, 1816
Private fortunes, in the present state of our circulation, are at the mercy of those selfcreated money-lenders, and are prostrated by the floods of nominal money with which their avarice deluges us. He who lent his money to the public or to an individual, before the institution of the United States Bank, twenty years ago, when wheat was well sold at a dollar the bushel, and receives now his nominal sum when it sells at two dollars, is cheated of half his fortune; and by whom? By the banks, which, since that, have thrown into circulation ten dollars of their nominal money where there was one at that time.
~~Thomas Jefferson to John W. Eppes, 1813
The crisis of the abuses of banking is arrived. The banks have pronounced their own sentence of death. Between two and three hundred millions of dollars of their promissory notes are in the hands of the people, for solid produce and property sold, and they formally declare they will not pay them. This is an act of bankruptcy, of course, and will be so pronounced by any court before which it shall be brought. But cui bono? The laws can only uncover their insolvency, by opening to its suitors their empty vaults. Thus by the dupery of our citizens, and tame acquiescence of our legislators, the nation is plundered of two or three hundred millions of dollars, treble the amount of debt contracted in the Revolutionary war, and which, instead of redeeming our liberty, has been expended on sumptuous houses, carriages, and dinners. A fearful tax! if equalized on all; but overwhelming and convulsive by its partial fall. Everything predicted by the enemies of banks, in the beginning, is now coming to pass. We are to be ruined now by the deluge of bank paper, as we were formerly by the old Continental paper. It is cruel that such revolutions in private fortunes should be at the mercy of avaricious adventurers, who, instead of employing their capital, if any they have, in manufactures, commerce, and other useful pursuits, make it an instrument to burthen all the interchanges of property with their swindling profits, profits which are the price of no useful industry of theirs. Prudent men must be on their guard in this game of Robin's alive, and take care that the spark does not extinguish in their hands. I am an enemy to all banks discounting bills or notes for anything but coin. But our whole country is so fascinated by this Jack-lantern wealth, that they will not stop short of its total and fatal explosion.
~~Thomas Jefferson to Dr. Thomas Cooper, 1814
Our boy Greenspan is a member of the Council on Foreign Relations.
Go out and look at the CFR membership roles....you then see why our government has become so globalist.
I understand, and I agree with your technical points. However I trade short as well as long. I was in a crude short for all of 24 hours last week (called it on FR last Saturday) and caught $6. Had it been 72 hours I would have caught nothing. Markets are always fractal. Time frames are relative. Sterling and Aussie got hit last week, and the dollar made a short-term "W". I will look to cash in on a 2-6 week upmove and then look for resumption of trend. So far the Euro hasn't faltered, and any move to the daily 21ema should be a mega buy.
China to overtake US with world’s highest CO2 emissions this year- IEA
Thomson Financial delivered by Newstex via CNN | November 09, 2007 | Fergus Naughton
Posted on 11/09/2007 6:51:49 AM EST by thackney
http://www.freerepublic.com/focus/f-news/1923255/posts
China risks backlash on currency policy: Paulson
Reuters | 11/08/07 | Glenn Somerville
Posted on 11/10/2007 12:54:17 AM EST by TigerLikesRooster
http://www.freerepublic.com/focus/f-news/1923704/posts
A Pearl Harbor without War [Dollar Crisis]
Spiegel | November 13, 2007 | By Gabor Steingart in Washington, D.C.
Posted on 11/13/2007 7:57:55 PM EST by DeaconBenjamin
http://www.freerepublic.com/focus/f-news/1925355/posts
Duncan Hunter Speaks To Nevada About Chinese Threat
News Which Cannot Lose, Elko Daily Free Press
11-13-07 | Elko Daily Free Press
Posted on 11/14/2007 7:55:46 PM EST by WalterSkinner
http://www.freerepublic.com/focus/f-bloggers/1925890/posts
Trade jitters, anti-China sentiment rouse voters
Reuters | 11/14/07 | Andrea Hopkins
Posted on 11/14/2007 7:59:55 PM EST by TigerLikesRooster
http://www.freerepublic.com/focus/f-news/1925894/posts
US, China working on biofuel pact
AP | 11/17/07 | JOE McDONALD
Posted on 11/16/2007 8:23:35 PM EST by steelboy
http://www.freerepublic.com/focus/f-news/1926997/posts
Deadly side to China’s inflation
The Australian | 14 Nov 2007 | Rowan Callick
Posted on 11/16/2007 11:58:50 PM EST by BGHater
http://www.freerepublic.com/focus/f-news/1927071/posts
Excellent point, which is why you should at least buy I-Bonds. I take a portion of Andrew Tobias’s advice and buy a small rental property if you can manage it. A duplex works well, if you can manage the tenants.
Without inflation, sure.
from nearly four years ago, just by *coincidence* during a presidential election campaign, gosh, what were the odds?
US Dollar plunge could lead to full-blown financial crisis
The Straits Times | 01.17.04 | William Choong
Posted on 01/18/2004 3:45:18 PM EST by Beck_isright
http://www.freerepublic.com/focus/f-news/1060474/posts
“In a paper presented earlier this month, three analysts - including former US treasury secretary Robert Rubin - argued that Washington’s twin deficits could amount to what some have termed a ‘full-blown, Third World-style financial crisis’. Mr Paul Krugman, a prominent economist who foresaw the 1997 Asian financial crisis, drew the conclusion as early as last October. In a New York Times column, he said the US economy was approaching a ‘Wile E. Coyote’ moment - when the coyote in the famous Road Runner cartoon runs off a cliff, only to realise at the last minute - too late - that it is about to plunge to the bottom. ‘What will the plunge look like? It will certainly involve a sharp fall in the dollar and sharp rise in interest rates,’ he wrote. ‘In the worst-case scenario, the government’s access to borrowing will be cut off, creating a cash crisis that throws the nation into chaos.’”
The dollar’s in decline. Great news!
The Times (London) | November 23, 2007 | Gerard Baker
Posted on 11/22/2007 9:59:12 PM EST by PotatoHeadMick
http://www.freerepublic.com/focus/f-news/1929462/posts
Too bad we didn't stop wasting energy ten years ago.
And when Anwar runs out, where do we drill?
And when that runs out, where?
And after we've sucked all the oil out of planet earth and pillaged all natural places, then you'll talk about conservation?
Too bad we didn't end immigration forty-two years ago.
Because we'd now have half as many people and twice as much oil for everybody.
This sounds like more tinfoil you know they have already denied the The North American Super Highway! /S
We at least need to start raising interest rates to stop dollar deflation. We probably can’t slow down the housing market much more than it already is. With interest rates so low we gave it some time for a soft landing. The stock market will go down at first but Wall street can tolerate it. Consumers would enjoy more buying power with all the influx of foreign goods into this country. That will translate into adequate profits for Wal-Mart and other retail outlets.
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