Below is the link to a very interesting read that involves dollar denomination of oil. http://www.feasta.org/documents/papers/oil1.htm After reading economics for level 2 everything in world trade seemed to be a fair game but above article force me to think otherwise. I will really appreciate the comment on this article…
pretty obvious, 20 years of American hegemony is over. The world makes US eat it’s worthless currency and demands a fair value for their goods and recourses. EU and BRICs will rule from now going forward. Adjust your portfolio for appropriate investments:)
very insightful article. Do oil producing countries have the right to switch to EUR in exchange for oil without any intervention from OPEC?
Comment on the article: Looks like someone in the luny bin knows how to type. It’s not that the United States is getting weaker. Its more like severak of the screwed up countries around the world are becoming less screwed up. They had a long way to go and most of their progress has come as they have become more like us.
Interesting article. I am not yet ready for Feasta’s ‘transformed democracy.’ To be fair, I must admit I get skeptical when I see opinion that implies Hussein and Chavez were/are models of openness, forward thinking, and economic or personal freedom. To dig that out you have to ignore an awful lot of corruption, crime, palaces, and wealth… and once you look past all that you have to maintain that focus and ignore the lack of infrastructure, schools and hospitals. papasita Wrote: ------------------------------------------------------- > pretty obvious, 20 years of American hegemony is > over. The world makes US eat it’s worthless > currency and demands a fair value for their goods > and recourses. EU and BRICs will rule from now > going forward. Adjust your portfolio for > appropriate investments:) Hegemony implies some degree of consent, not force. Definition aside, your opinion is in fashion to passers by because it offers the sense that they are in line to “rule from now going forward.” Sounds nice, good luck with that. I am in economic kindergarten, so straighten me out here if I’m off. But if a freefall in the dollar materializes like you gleefully hope, that then reduces US demand for foreign goods and results in a renewed demand for domestic manufacturing. Is the world interested in that? …and anytime you are ready to try to make me eat my “worthless currency” feel free to stop on by.
As somebody in the thread pointed out, the economic framework of developed countries, capitalism, is finally taking roots in a lot of countries including BRIC. They are reaping fruits of it. While the transition is causing some pain in some sectors in US, in the long run, all of this globalization is going to help US if it can still compete by innovation and leadership. Of course, the society has to change to use the borrowed money to invest in growth and adding value just like a corporation rather than consuming it and destroying value. As for “Weakening” dollar does not really mean anything by itself. “Weakening” of dollar (or any currency) is an incorrect replacement of depreciation. As we have learnt in Level I and Level II, it is just a correction for mismatches in inflation, interest rates, economic growth rates. Also remmeber the PPF (Production potential frontier), as the world has opened its markets and loosened some of the protectionist laws, PPF is being allowed countries to use the production advantages. This is all good as the world in general will produce goods optimally. As for using another currency as world currency, people want stability in the common currency. While the temporary depreciation has caused people to discuss that EU may be used as world currency, I think US $ is still most stable in the long term. Just think about it. US has been an union for more than 200 years, EU is still a patchwork on union and has been there one for less than 50 years. As for BRIC, while they have used most of the know-how developed in the developed countries, mostly in US, they are still copies and US still holds a competitive advantage in innovation. For example, who do you think is going to make us move from oil to some other atlternative energy source that can replace. Most probably, it is going to be US. Just let the oil price keep rising and the world, I hope, will be relieved of oil and its dictators.
slouiscar Wrote: ------------------------------------------------------- > Interesting article. I am not yet ready for > Feasta’s ‘transformed democracy.’ To be fair, I > must admit I get skeptical when I see opinion that > implies Hussein and Chavez were/are models of > openness, forward thinking, and economic or > personal freedom. To dig that out you have to > ignore an awful lot of corruption, crime, palaces, > and wealth… and once you look past all that you > have to maintain that focus and ignore the lack of > infrastructure, schools and hospitals. > > papasita Wrote: > -------------------------------------------------- > ----- > > pretty obvious, 20 years of American hegemony > is > > over. The world makes US eat it’s worthless > > currency and demands a fair value for their > goods > > and recourses. EU and BRICs will rule from now > > going forward. Adjust your portfolio for > > appropriate investments:) > > > Hegemony implies some degree of consent, not > force. Definition aside, your opinion is in > fashion to passers by because it offers the sense > that they are in line to “rule from now going > forward.” Sounds nice, good luck with that. > > I am in economic kindergarten, so straighten me > out here if I’m off. But if a freefall in the > dollar materializes like you gleefully hope, that > then reduces US demand for foreign goods and > results in a renewed demand for domestic > manufacturing. Is the world interested in that? > > …and anytime you are ready to try to make me eat > my “worthless currency” feel free to stop on by. slouiscar 1 - papasita 0
^well played slouiscar, sometimes I gotta envy you.
Looks like I upset few sensitive republicans:) ^But if a freefall in the dollar materializes like you gleefully hope, I wonder how did you miss that? please check historical US:Euro exchange rate. Or may be the fact that central banks around the world keep dumping US$ from their reserves … ^That then reduces US demand for foreign goods and results in a renewed demand for domestic manufacturing. “domestic manufacturing”? what exactly does that mean? please explain. I hope it is not housing:) You read too much theory, and it is just theory not real world. I hope by now you already confirmed that depreciation of US$ took place, now check if trade deficit reduced during the same period of time:) Talk about theory… ^Is the world interested in that? I don’t know and really don’t care. I made my own investments and it excludes US. My view is that we have a global economy and US is no longer the only engine.There are EU, BRICs, Emerging Frontier countries. More over, I believe if you take US out of equation, they will be able to sustain global growth.
] “domestic manufacturing”? what exactly does that mean? please explain.tain global growth. Lots of stuff. Start with airplanes. Boeing makes a nice airplane with their 777s and 787s. And with the exchange rate the way it is it seems like all airlines should choose Boeing over Airbus. Look, the GAO is making some stuff up to kill a contract for a high priced Euro tanker plane.
slouiscar Wrote: > …and anytime you are ready to try to make me eat > my “worthless currency” feel free to stop on by. I was merely referring to the article: “The dollars cost the US next to nothing to produce, so the fact that the world uses the currency in this way means that the US is importing vast quantities of goods and services virtually for free.”
be clear, papsmearsita, people on this forum who wouldn’t consider themselves republicans find people like you who take every opportunity to bash the US annoying. you made one correct statement on your post. “you don’t know and you don’t care”. it’s clearly the the kind of statement i want to hear from a guy trying to dole out investment advice. spare us.
^“people like you … every opportunity”?
give me a break. I could be a republican. I just think the author presented quite valid case. Name calling? That’s very mature:) I was summarizing the article. Did anyone ales read it besides me? cfasf1, Any comments on the article?
yep, not a republican, but find papasita annoying me at every opportunity, lecturing jdv and slouiscar is obnoxious and turning your horsesh!t into a political agenda is doubly so.
Black Swan, thank you brother. It seems you can’t forget real options. ? political agenda? did you confuse “political agenda” and “sex”. I talk about sex. Please read my posts:)
No I meant political, I hate peple that bring partisanship into frigging debates, and I was not thinking of the options as a matter of fact, I have been silent on various issues since then where I found your flippant demeanor to be innapropriate.
BS, keep sucking up to jdv and slouiscar:)
The Saudis are again saying the oil price is being driven by speculators. If so maybe we could get together and charter a supertanker and ask our friends the Saudis to fill-er-up for $50 a barrel. If $135 is some fake speculation price i’m sure our friends the Saudis would only ask the “true” price for their oil. It seems futures problems in the curriculum depicted a future price that was largley driven by the spot price with adjustments made for storage and the time value of money. I don’t remember a mechanism where the futures prices was driving the spot price.
papasita Wrote: ------------------------------------------------------- > BS, keep sucking up to jdv and slouiscar:) I only show respect where its due
Black Swan Wrote: ------------------------------------------------------- > papasita Wrote: > -------------------------------------------------- > ----- > > BS, keep sucking up to jdv and slouiscar:) > > I only show respect where its due Wait! did it sound political to you? I can assure you that there is 0% political agenda in my sentence:) sister, look at how many people you disrespected nd diminished in NPV thread, and you talk about respect…