U.S. Dollar Falls After OPEC Chief Talks of Pricing Oil in Euros

[Lone_Star_Dem]

Source: CEP News

14:05 02/08 (CEP News) Montreal – The euro spiked a quarter-cent just after 1 p.m. EST after a weekly magazine reported OPEC was pondering a move to price oil in the European common currency.

OPEC Secretary General Abdalla El-Badri told the London-based Middle East Economic Digest that member countries are pressuring the cartel to abandon the floundering U.S. dollar.

“Maybe we can price the oil in the euro,” El-Badri said. “It can be done, but it will take time.”

The report says OPEC may switch to pricing oil in euros within a decade. Middle Eastern sentiment has been slowly turning away from the U.S. dollar in part because of a 21.8% rise in the euro against the U.S. currency over the past two years.

Officials from several Middle Eastern nations, including Qatar and Saudi Arabia, have openly pondered abandoning USD pegs. Iran already prices most of its oil in euros. Until now, the OPEC chief has remained silent.

Read more: http://www.economicnews.ca/login.php?page=reportsDetails&newsid=50186&prevview=&view=details&country=US&plimit=0&category=US%20Economic%20Reports

[CTyankee]

1. Oh god, I knew it! I could just see this coming!

Does anybody know what the effect will be on the U.S. economy?

[puerco-bellies]

8. Inflation.

I've posted this on discussions on energy trading/oil prices. The U.S. dollar's value is pinned to the cost of a barrel of oil. Oil drives the world's economy, and was traded in U.S. dollars. The dollar is losing value because of our trade imbalance, especially because now China and India are competing with the U.S. for oil. Since oil is in greater demand, oils intrinsic value is outstripping the dollars ability to buy it. Once oil is traded in Euro's the intrinsic value of the dollar will be lost.

A dollar soon won't buy any oil. Since we are deeply in dept, and no longer producing the worlds machines and consumer goods, the value of the dollar will only be tied to U.S. Treasuries.

It is very likely in the near future inflation will out pace interest on U.S. bonds and treasuries. That is like saying your currency is backed by an I.O.U. Would you take a check (read dollar here) drawn on a empty account? We have to, it's our currency. The rest of the world does not have to, and they will trade their vast dollar holdings (trade imbalance)for other currencies, or gold and silver. More dollars back in circulation, the less they are worth. In a word; Inflation.

[Javaman]

9. couple that with bendover benenke's interest cuts and BAM!

10 dollar bread, 15 dollar milk.

[Gman]

10. Bush & Cheney's destruction of the country will be complete

when this happens.

[307 MMS]

20. Moved

And they'll be living in Paraguay. Pitchforks and torches for everyone!

[KansDem]

21. "Pitchforks and torches for everyone!"

No way...they'll cost too much!

[tanyev]

35. Better stock up now.

[rainy]

2. Thanks for this post. Rumor has it that this is why we went to war

with Iraq, to keep them from switching from the dollar to the euro.

[louis-t]

7. Jeez, maybe stupidface will have his excuse now

to bomb the whole world into submission. Y'know cuz, like, "we're the worlds only superpower" and , like, "we should start acting like it." :eyes:

[Juneboarder]

16. LOL...

definitely a catalyst for Dubya. Anything to take over the world in the name of GWB and his "democracy".

[Amonester]

29. yeah but pooty-put won't play along...

stupidface has succeeded to resurect the cold war raygun ended...

stupidface is a miserable failure

[jwirr]

37. More like we are the worlds gun runners. Maybe we can base the

dollar on bombs.

[amandabeech]

39. Bombs (and other munitions) are big export items! n/t

[Juneboarder]

15. Oh yea...

What a great excuse for war, glad it comes up 5 years after we go to war. I bet in another 5 years we could think of another few good reasons we went to war. Hmm... I wonder, though, what the true reason was in 2003 and why the reasons keep changing.

[RainDog]

33. People have said this since 2002

this is nothing new. this is also tied to the issue of resource wars. before Iraq was invaded and occupied people who weren't bamboozled by big media knew this was the main reason the U.S. was attacking Iraq. Everything else was gravy. You've been here since 2003 and you're just now hearing this??

I've found, since 2000, that the U.S. has a media that is as full of lying b.s. as Pravda every was. I have followed story after story that appeared in the press of other nations that was ignored here until months or YEARS later.

some of them: coup to overthrow Chavez (Palast said it was coming in Jan. 02. Happened in April 02.
The rescue of Jessica the soldier. It was a propaganda piece. (Guardian U.K. Americans learned of this through their press at least 6 months later.
Torture in U.S. prisons... torture of INNOCENTS. Reported by int'l red cross for years and years and denied, denied... and look... it's true!
theft of 2000 election - the U.S. press has never adequately explained the voting fraud in Fl, or that a recount showed Gore took Fl. No outrage that the Supreme Court made a one-time ruling (their phrase) to put Bush in office.
Ohio voting scams in 2004. Threw the election to Bush boy.
Iran-Contra - first reported in Lebanese press. Never fully understood, apparently, by U.S. that our soldiers were asked to kill democratically elected leaders in Latin Am. nations and supported terrorist organizations is those countries who murdered nuns and priests and women and children... for the sake of "democracy."
American ties to Pinochet. Subsequent charges against Kissinger by Int'l Human Rights-abiding nations... he cannot go to 5, I think, nations for fear of arrest.
Zielikow (or however you spell his name), head of the 9-11 commission was a flunkie for the Bush League... and the press is just reporting this now?? they didn't know of it when ppl on this site, for instance, new about it before the investigation began?????

...just to mention a few ways in which the U.S. press sucks the... popsicle of govt. lies for the self-interest of others, not you, John Q. Public.

throughout history nations have gone to war to pillage another's resources, so the act itself is also nothing new. I wish the majority of Americans would get out of their short pants and understand that we are no angels of mercy in this world when we want something.

[dipsydoodle]

26. Rumour must be illfounded

Saddam had switched to selling the oil in Euros years earlier and at the time it cost him a huge bundle. Then he made massive windfalls as the Euro increased in value aginst the US$.

[Mojorabbit]

3. I don't think

it will be a decade before it happens.

[bdamomma]

4. Cheney won't be too happy about this, who will he bomb next

OPEC?

[ayeshahaqqiqa]

5. They're only saying ten years

so that they can unload their dollars while they still have some value. And when they do, they'll switch.

[ixion]

6. here it comes, folks...

get ready to be a banana republic.

[apnu]

11. we already are (nt)

[ixion]

12. we ain't seen nothing yet, as the expression goes

wait until the infrastructure really starts to decay, and when the results of OPEC trading in Euros have their effect. You'll see a much bigger banana, I'm afraid.

[apnu]

19. Yeah, that's the thing that keeps me up at night worrying for my son. (nt)

[reggie the dog]

22. if you think

snow removal is too slow today, or that the roads are in bad shape you aint seen nothing yet. Look at Romania today, or southeastern Kentucky, and you see the future of the USA.

[Yavapai]

23. Yep! Our new flag, cira July 2008

http://good-times.webshots.com/photo/2355535830101410511ywsZNo>

[paparush]

13. B52's and B17's to begin fueling shortly...

Fearless Leader will not stand for this public insult to his manhood.

Memo from C. Rice - Secretary of Stuff

     Idea- Carrier Landing Photo Op!  Show POTUS in a strong light, a fearless leader.

Memo from K. Rove - Fartblossom in Hiding

   CR, We already did that..

Memo from C. Rice - Secretary of New Ideas

    Hmmmm..How about a large wooden badger!

[lovuian]

14. I think the war with Iran is coming sooner than we think

its a War about the NWO

I saw Dubai bought Queen Elizabeths property

there is a new group of power brokers


England & US get a load at the new world order OPEC

[Juneboarder]

17. And just when we were getting comfortable... :)

[Dover]

18. "It took two world wars and more than 50 years for the dollar to become the dominant currency"

“It took two world wars and more than 50 years for the dollar to become the dominant currency. Now we are seeing another strong currency coming into the (frame), which is the euro,” El-Badri said.


Hmmm...interesting statement.

[Deny and Shred]

24. Yes, very interesting. Good thing we're the only superpower.

A historical view of the US economic 20th Century dominance - the other industrialized nations were carpet-bombed, we weren't. We had a couple decade head start. All you hear from US politicians is American spirit, divine providence, innovation. I wish corporations retooled their US plants with all these tax cuts since 1980. Many just moved those plants overseas, and their bank accounts offshore. If foreign governments start dumping US treasuries big time, the dollar is in trouble.
Europe keeps infighting, what if they actually pull together? As the wealth divide in America soars, Europe actually educates, and cares for their workers. 10, 20 years from now, where will our comparitive workforces be? It won't be enough to blame it on Dems, or on Bush, or whoever else presides in the meantime.
President Raygun overspent so we could be 'the only superpower.' Now we spend all our $$$ on operations in Iraq, not even upgrades. Can anyone say Spanish Armada?
I heard John Murtha (D-PA) on NPR this afternoon. The most realistic assessment of the US military state of affairs I've heard in a long time. It made me remember that the truth is encouraging to hear, even if the truth behind the material presented is not. Here's the link to the transcript.


http://www.csis.org/media/csis/events/080207_ts_murtha.pdf

[and-justice-for-all]

25. Are you ready? Here comes the pain. nt

[LynnTheDem]

27. The very OPPOSITE of george bush & his band of neocons plans per PNAC.

Nobody but NOBODY can fuck up like gorge w. bush.

Except, of course, the deeply stupid fuck-ups who still support the stupid fucker.

[ConcernedCanuk]

28. "U.S. Dollar Falls" - get used to it - OH - how is that "Super Power" thing working out?

.
.
.

good on y'all.

learn who to vote for!

[melody]

32. Yes, and while innocent millions are suffering you can keep on gloating

What a nasty post -- and I'm afraid you're going to see how reliant Canada has come to be on its neighbor's prosperity.

We voted for the right person -- THEY didn't let it count. Don't smirk so much. Trust me, Canada is in their crosshairs,
too.

[HuffleClaw]

30. please please please do it

i see no reason why it wouldn't be a good thing

[Bigmack]

31. Euro is $1.448... Dollar is actually up! (?) nt

[Lone_Star_Dem]

34. It had dropped due to the BoE rate cut and speculation the ECB would follow.

But they balanced out on Friday. I don't expect there'd be any sustained drop in the dollar until/if OPEC began to follow through on this. Which I really hope they're don't.

[maryallen]

36. Did the Bushies really think that ...

they could start an illegal, unnecessary war in the MIddle East WITHOUT SUFFERING ANY CONSEQUENCES?

Unbelievably stupid ...

[tabasco]

38. $2.31 for a dozen eggs in West Virginia.

Chickens have apparently already switched to euros.