Well, guess we have to invade Venezuela too now...
Venezuela has backed a proposal to sell oil in euros instead of U.S. dollars, Energy and Mines Minister Rafael Ramirez said on Thursday.
In an interview with state television, Ramirez said "Iran has an initiative that we support. They are going to start to do oil transactions in euros."
The remarks came ahead of a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Venezuela's capital on the same day.
Ramirez, who is also the president of the state oil company PDVSA, said "If a market in euros is created, with the euro as a reference, we could send our supplies so they are sold under this (currency)."
Responding to Ramirez's remarks, Edmund Daukoru, president of OPEC, said some member countries had raised the possibility but added that they had not formally tabled the proposal to the bloc.
The idea of selling oil in euros was first floated in 2004. Iran, a member of the OPEC, also supports the proposal
June 02, 2006
Venezuela supports proposal to sell oil in euros
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Big deal. Euros are far less stable than dollars, so Venezuela and Iran are cutting their own throats with this stupid idea. Who needs to invade countries hell-bent on destroying themselves? Give them a few years and they'll be BEGGING for American currency.
This is a VERY bid deal. The petrodollar is how America ensures economic dominance in the world. It's also how America keeps it's economy afloat since we now produce very few real goods.
This won't happen though since Iran is scared sh!tless about being invaded.
I am no economist but something doesn’t make sense to me. We are mad at China for keeping the value of their money low because in so doing, their products become less expensive and more competitive on the global market place. Right?
So low currency must make a country globally competitive and thus prosperous.
Our dollar has been held at an unnaturally high value due to its high demand as a global currency and as a result we have a phenomenal trade deficit that threatens our long-term viability.
Lets connect the dots here, low dollar = good, high dollar = bad, oil trading in dollars = high dollar, therefore oil trading in dollars is bad for us.
Perhaps we should embrace the trading of oil in euros, in the end it will mean American products and services are more competitive in the global market place.
here's some problems with low dollar that I see to offset any benefits:
low dollar = i'm f'd living in europe getting paid in dollars
low dollar = imports expensive, americans addicted to imports = soaring inflation especially at walmart, toyota, best buy, etc
low dollar = foreign buyout of american assets
low dollar = worldwide recession as american consumers stop buying foreign goods. why do you think china is doing everything it can to keep the dollar strong against their currency?
low dollar = soaring imported oil costs = surefire US recession
low dollar = soaring commodity prices = runaway inflation
The lower class blossoms and the middle class disappear, leaving the producers (employers) in the fox holes. The lower class takes their anger out on the producers in the banana republic by electing commies.
Get ready; it’s about to happen in Mexico.
Remember this when you see a bunch of illegal’s on TV in downtown LA demanding amnesty!
Viva Chavez! Viva Amnesty. Because Keith is getting paid in Dollars I'm hoping for it to drop to hurt him. I hope Keith lives in a flop house with all the other illegals in the UK.
Sadaam Hussain tried this... didn't work very well...
I've now had two "working girls" ask me if I'm interested in buying a house cause they are getting into real estate.
Shows you they are all whores....
Hey PanicEarly!
Here, here! I Second that motion!
Let's end US imperialism!
A republic, not an empire!
The thinker said I am no economist but something doesn’t make sense to me. We are mad at China for keeping the value of their money low because in so doing, their products become less expensive and more competitive on the global market place. Right?
You forget one simple fact, outside of airliners, soybeans, and CPU chips, we don't manufacture much in America. If we had to live off of exports, we would starve! Yes a lower dollar will help boost exports, but if only we have stuff to sell.
Perhaps we can export RE agents -- talk about weapons of mass destruction...
Having the world use our dollar as the exchange medium is how we tax the world using inflation.
This a very big deal and Keith is right there is chance we might invade or do a regime change in Venezuela. Sadam was considering a simlar move before we took him out of power in Iraq.
-TJ
See: http://tinyurl.com/jp32t
http://globethistle.blogspot.com/2006/03/iob-part-i-weekend-before-bourse.html
t, outside of airliners, soybeans, and CPU chips, we don't manufacture much in America.
This is total BS. US is by far the biggest manufacturer in the world. In fact, our manufacturing output has been growing strongly (yeah, despite all that China-bashing).
"Big deal. Euros are far less stable than dollars, so Venezuela and Iran are cutting their own throats with this stupid idea."
Actually, the Euro has held its value against Asian currencies and Gold better than the dollar has over the past two years.
A weak dollar policy would hurt our country, as most corporations aren't equipped to take advantage of its one benefit: increased export sales. We manufacture most of our goods overseas or in South America. When our Dollar falls, it gets more expensive to manufacture elsewhere, so prices have to go up, offsetting the products' new competitive advantage and hurting domestic sales.
"In fact, our manufacturing output has been growing strongly (yeah, despite all that China-bashing)."
So why have we lost/outsourced three million manufacturing jobs since '98?
http://www.nemw.org/mfgempchangechart.pdf
And it looks like the changes for manufacturing are all negative in this chart?
http://www.nemw.org/empsector_change.htm
These are the sugar-coated numbers from the BLS. Ask any machine tool dealer and you'll get a feel for the real picture -- it ain't pretty.
It does not matter which currency is used by a specific buyer and seller, dollars or euro's. All the traders have to do is do an offsetting transactions in the Forex market to adjust any differences.
Any change in dollar to euro pricing factors will occur in the Forex markets and ripple into any commodity.
America should just take over the world and be done with it !!!
I think if we whack George W. out all of a sudden, all of the problems would disapear. Seeing him six feet under would make thigs seem well, better. And the VP, fuck him. Just tie him to a pile a bricks and throw him in the East river. If I was Iran I would contract the Gambino crew or any other mob family. A big time contract and kill of a U.S. president and or VP would bring them back into the forefront.
But your right, if Chavez has his way and they go to Euros instead of dollars. Well, you can kiss America's dominance goodbye. I say we kidnap the prez and sell him to the venezuelans!
any chance iran sends a hitman over here to take out the pres? what would stop them?
It's meaningless. Dollars and Euros are freely convertible. No one has to buy in dollars even if the price is quoted in dollars. They can buy in whatever currency they want.
Japan and China have trillions in US assets, why? Because they need currency to buy oil? No, they have many times the amount needed for that. They hold our assets, b/c they want to, I guess. They think the return is good, who knows.
But oil in Euros is meaningless.
So why have we lost/outsourced three million manufacturing jobs since '98?
Our productivity has increased and we also manufacture more advanced stuff. Basicallly, we don't need so many low-skilled factory workers anymore.
Less workers but more output.
http://charts.nam.org/charts.show.php?dataset=8&startdate=1986-06-02&enddate=2006-06-02&do=show
To anon " Friday, June 02, 2006 9:37:42 PM":
Threat against the president or VP of the US is a federal crime and - by law - the secret service has to investigate every threat. Your IP address and your identity will be found out. I hope you get a long sentence. You certainly deserve it.
Anonymous said...
I think if we whack George W. out all of a sudden, all of the problems would disapear. Seeing him six feet under would make thigs seem well, better. And the VP, fuck him. Just tie him to a pile a bricks and throw him in the East river. If I was Iran I would contract the Gambino crew or any other mob family. A big time contract and kill of a U.S. president and or VP would bring them back into the forefront.
Here's the scoop on manufacturing jobs, by President Reagan's former Ass't Treasury Secretary, Paul Craig Roberts. A quote, 'some sectors of US manufacturing have more in common with a country undergoing saturation bombing during wartime, than with a healthy economy.'
http://www.counterpunch.org/roberts02112006.html
And because of the wage differential, the US dollar would have to devalue by oh, 90 percent or so, to make equivalent US manufactured goods competitive with China.
Tell a friend.
ben.cota@gmail.com
Here is the statistics:
People working in manufacturing in the US:
in 2000: 17,1 million
in 2004: 14,2 million
Manufacturing production has grown strongly:
Manufacturing output:
(1997=100)
2006=113
US manufacturing exports:
(1997 = $500 billion)
2005: $904 billion
http://www.nam.org/s_nam/bin.asp?CID=202325&DID=233605&DOC=FILE.PDF
http://www.nemw.org/mfgfact.htm
So why has our manufacturing exports grown 90% in 8 years?
Despite all China-bashing our manufacturing business and exports (and productivity) are still growing strongly.
Your site is on top of my favourites - Great work I like it.
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