Decibel ([info]decibel45) wrote,
@ 2006-02-01 13:52:00
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Entry tags:mlp

Something to think about...
Next time you're pondering reasons the world hates the US... http://askesis.livejournal.com/158146.html

In a nutshell, the US has managed to effectively mandate that all of the worlds oil sales take place in USD, even if it's between two countries that have 0 connection to the US.


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[info]moonwick
2006-02-01 08:43 pm UTC (link)
So, uh, speaking as the American that I am...

Cool beans. Go us.

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[info]dbaker
2006-02-01 08:52 pm UTC (link)
I think everyone would be better off if the author of that article spent more time pondering what they were writing to see if it made any sense.

For a long time, commodities markets have strived to establish trading on the basis of a stable, common currency rather than on the basis of other commodities. Additionally, there's no "tax" on the US dollar. If they're referring to valuation fluctuations such as the value of the dollar relative to the Japanese Yen, Euro, or GBP, and calling it a tax, then it brings the idea of an "ill-conceived notion" to a whole new level.

The US is free to change the management of the currency and if oil or the dollar were based on the price of gold, the price of that commodity is subject to change, too. Unless the world only has one currency, there will always have to be a conversion to another currency for the purchase of oil and there are lots of variables that can change the price on either side.

As far as the suggestion that the US's negative interest in Iran is related to them wanting to open a oil market that trades in euros -- oh my god -- I don't even know where to begin. I don't think MySQL/Livejournal can support a post that even covers 10% of the US's hostile history with Iran. In addition to seeking some economics and history classes, I think the author of that post should read about our invovlement in the country's government and this snafu and helping to kill them and then killing them some more.

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[info]iamsam4eva
2006-02-03 12:31 am UTC (link)
He should read this too.

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