21 replies to this topic

[jjc]

you know some news are just put out intentionally to influence market (dollar sell off/market bounce etc)...This is not going to happen anytime soon

"This is not going to happen anytime soon"

or It will happen real soon and real fast....
such is the nature of these things.

[Rich]

If the US is forced to buy oil with some international currency then the dollar will collapse. We must solve our energy problem now or we are doomed. We need to build nuclear plants and develop renewable sources of energy as quickly as possible. We need to be selling energy instead of importing it. We need a kind of Manhatten-type project to focus our direction and resources on energy independence.

[jjc]

If the US is forced to buy oil with some international currency then the dollar will collapse. We must solve our energy problem now or we are doomed. We need to build nuclear plants and develop renewable sources of energy as quickly as possible. We need to be selling energy instead of importing it. We need a kind of Manhatten-type project to focus our direction and resources on energy independence.

It is a bigger problem then just oil. We need the USD to remain the world's reserve currency or we will be completely bankrupt. We need to borrow inorder to keep the engine
running so that we might some day be able to pay our bills...

It is true that the Treasury would like a weak dollar to boost our exports, however we can not afford to have the rest of the world shun our debt. Warsh's OPED on the opening
day of the G20 meeting layed out what the FED will do. Interest rates will go up pronto. I'm thinking whatch for a breakout in gold above 1020 and buy TBT.

http://online.wsj.co...l?mod=rss_Bonds

[cgnx]

This news could also be to influence a rally. Jawboning by foreign concerns sounds like fear if anything. The Greatest Financial minds are at work and the dollar will do what it does. To pick a direction based on this news is foolish. The chart looks bearish to me and TA is one of the few tools available to read direction. News has never been a good read on future direction. I don't see anything in the charts that tells me the dollar has bottomed. I smell fear. Time for the US to become competitive again? A lower dollar could be a boon to US manufacturing down the road. Perhaps their are unseen benefits?

[MaryAM]

Here is an idea - we stop selling West Texas Crude and Alaskan Crude overseas and START USING IT OURSELVES - SULFUR AND ALL. And let Saudi Arabia eat sand. Mary Anne

[Islander]

Running a reserve currency, no matter its make up, is not exactly easy.

Doing that within a group of "Great Powers", is less easy. It will not be a picnic, and the jockeying between powers will be something like the Euro, ECB and the 26 EU members of the monetary union: Few will be happy and violent swings predictable.

The purpose, of course, is not to harm the USD (though no one would mind very much), but to avoid the dollars obviously precarious future as a currency subject to debasement by a US government out of its mind.

As for fighting this action, there is no way to do that since pricing oil and commodities in an alternative unit is perfectly feasible and done all the time in sight drafts with bills of lading.

Things are changing, but not too fast or easy. Islander.

[nimblebear]

Here is an idea - we stop selling West Texas Crude and Alaskan Crude overseas and START USING IT OURSELVES - SULFUR AND ALL. And let Saudi Arabia eat sand.
Mary Anne

most of our oil is imported from canada - if its anyone choking, it will be the US on tar sands.

oi isn't the issue. Its the dollar, and our massive debts. the government is going to add yet another $23 trillion from the current fiasco alone, so the only way possible out of this debt is to devalue the currency, which they are doing at a highly rapid pace as we speak. They are printing it like mad. Dont be deceived by dropping prices in many goods. this is the precursor to the dollars death spiral. There is simply so much capacity to produce STUFF out there, and we have 26 million people out of a job who need a job. and the rest of the many are simply holding onto what little they have. so companies are doing the only thing possible to survive- cut prices. and other countires are finding ways to cut their prices. but the currency is quickly devaluing as well.

Sure home prices for example are dropping too, but you used to be able to get a home loan with a LTV of 95%, and now its 80% or better, and so your buying power just dropped 75%. Do the math sometime. Someone who used to be able to get a $600,000 home for $30,000 down payment, can now only afford a loan for a home that is $150,000.

So yeah home prices are dropping but they havent dropped nearly enough to keep home selling at the rates they were 1 year ago, let alone 3years ago. Credit is so much tighter than it was, and people just dont at all remember how it was and the hge massive bubble we created, by both cheap money and incredibly lose standards.

This isn't just a new normal. This is a massive downshift in societal's demand versus ability to pay and get credit. The dollar HAS to devalue immensely, for this economy to have any chance of survival in the next 5 years, and eventually you will see massive inflation in many things you really need.

Anyone getting out of the dollar or figuring out ways to pay/trade in other currencies is simply hedging against the inevitable.

[Lysis]

I would buy the dollar on this "news" from the standpoint of "the bad news is out", but that's just me. Do your own due diligence.

I am with you. The US won't let them get away with this in the short term, they will make the buck got to at least 92 cents, this will hurt Russia and the mid East countries in the short term harder than the US would be hurt by it as oil dives to the mid 30's.

So, how, prey tell, does the US plan on doing this?

Raising rates? Can't. Increases lending costs at a time when the economy is trying to turn around.

Start a war? Isn't Obama and his party essentially anti-war?

Jawbone diplomacy (please, please, please buy our debt)? Sounds like that's starting to fail.

We Americans are essentially stuck in a runaway car with welded doors and windows headed towards devaluation-town.

[goldswinger]

[/quote]

So, how, prey tell, does the US plan on doing this?

[/quote]
Can't tell you how, but just watch it!

We are now completing the C wave down of the ABC pattern after wave 1 up.

Chart link below.

http://quotes.ino.co...s=NYBOT_DX&v=d1

GS.

[Not Too Swift]

Although I complained about John Mauldin recently, I do think he is right about this oil in other currencies question. He says it is a red herring. It doesn't matter what currency you buy oil in. You can immediately move between currencies anytime you like, before or after the sale. This is why oil has gone up much more in dollars than it has in euros.