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» Politics & Economics » Let's Talk Politics


Thread: Will Gulf States and Others Eliminate $ for Oil?


Permlink Replies: 48 - Last Post: Nov 5, 2009 2:25 AM by: Mustaf_Asay
United

Posts: 554
From: Edmonton
Registered: 10/27/04
Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 5, 2009 11:04 PM
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I would think that if this is a serious topic among these nations, then the usa will soon be going to war or threatening to cut off the gulf leaders' protection from their own people. This is a serious matter for the united states because their lifeline is oil, and they are decades away from being nondependent of oil.Wonder how long before something is done covertly to make these leaders think twice?

SYDNEY (Reuters) - Britain's The Independent newspaper Tuesday reported that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in the trading of oil.

The U.S. dollar eased after the report, written by Middle East correspondent Robert Fisk and monitored on The Independent's Web site. It cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong.

Fisk said the proposal was for trade in crude oil to move over nine years to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.

"Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars," said the report. It added that France had also been involved in the talks.

Most Gulf Arab states have pegged their currencies to the dollar.

The Independent said U.S. authorities were aware that the meetings had taken place but had not discovered the details and were "sure to fight this international cabal."

The issue of shifting oil trade away from the U.S. dollar has been raised occasionally in recent years, but analysts and experts say it is unlikely to occur any time soon.

"I don't think we will see much concrete actions coming out of such discussions because even when the dollar is weak, it doesn't mean that commodities are undervalued," said David Moore, commodities analyst at the Commonwealth Bank of Australia.

"In fact, when the dollar weakens, commodities prices tend to increase by a higher ratio."

Iran began settling most of its crude oil exports in non-dollar currencies, primarily the euro, several years ago, but the actual price for its oil is still set in dollar terms.

The U.S. dollar dipped in the wake of the report, with analysts cautious about reading too much into it, particularly given the nine-year timeframe.

The euro edged up to $1.4691 from $1.4662 before the news broke, while the dollar eased to 89.00 yen from 89.40.

"This looks to be a very long-term thing with a few hurdles to cross," said Jonathan Cavenagh, currency analyst at Westpac in Sydney. "Foremost, China needs to be more flexible with its currency."

"Still, this is U.S. dollar negative news which is moving markets and shows that central banks not just in Asia are looking to diversify away from the US dollar," he added.

(Reporting by Wayne Cole; Editing by Mark Bendeich and Dayan Candappa)



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irfanhussain

Posts: 243
Registered: 7/5/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 7, 2009 2:31 AM   in response to: United in response to: United
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**** ASSALAMU ALAI KUM ****

I also heard the same in News ....
That is going to happen but it will take time ... Arabs need to be careful
as America wont be a Silent Spectator

Regards

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 7, 2009 2:56 AM   in response to: irfanhussain in response to: irfanhussain
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Wa alaikum'salam bro,

This is very big news. This means the unites states' incessant talk about becoming independent of Arab oil might not come to fruition if the Arabs move to become independent of american currency first. The americans can ill afford losing support of their currency around the world. There might just be another world war in the near future if this talk becomes serious.



SteveFormer


Posts: 113
Registered: 10/1/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 7, 2009 9:52 AM   in response to: irfanhussain in response to: irfanhussain
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It won't happen - SA & Gulf States need the USA to protect them from the Persians, and that's why the rich Arabs will keep the dollar strong. Otherwise, the Persians will install Ayatollah to supervise Makkah & Medinah.

OTT.

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 7, 2009 1:57 PM   in response to: SteveFormer in response to: SteveFormer
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Makkah and Medina will always be safe. That is not a worry to us Muslims. However, those rich Arabs in their castles should fear their own people before they think about anybody else, including the Persians. I would think a tyrant wants to keep power for himself and away from his people more than anything.Iran is not a threat. The more the media here trump up the "Persians" as being a world threat, the more i see history repeating itself yet again. "Fool me once, shame on you, fool me twice, shame on me".

Im assuming you are steve, the former owner of......what's that site called again?.......possesite, i believe?

How is Arizona this time of year?



SteveFormer


Posts: 113
Registered: 10/1/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 7, 2009 4:24 PM   in response to: United in response to: United
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I love you too.

irfanhussain

Posts: 243
Registered: 7/5/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 3:50 AM   in response to: SteveFormer in response to: SteveFormer
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**** ASSALAMU ALAI KUM ****

Anti Islamic Elements are bigger enemies than anything else .....

Regards

AmGI


Posts: 1,983
From: Kuwait
Registered: 6/27/03
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 4:06 PM   in response to: irfanhussain in response to: irfanhussain
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Yeah yeah yeah irfanhussain, we've all heard it before. Islam don't like competition.

TOUGH!



SteveFormer


Posts: 113
Registered: 10/1/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 4:17 PM   in response to: AmGI in response to: AmGI
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It's just that some people hate that their victims fight back.

AmGI


Posts: 1,983
From: Kuwait
Registered: 6/27/03
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 4:52 PM   in response to: SteveFormer in response to: SteveFormer
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I often wonder it we'd (USA) just come marching up to the gates of Afghanistan, Iraq or Iran with a big ol' cross and 400,000 soldiers, sent an emmisary to the Muslims and said; "Convert or die", if that would have made a difference in their victim mentality?

That's what the Muslim empire did, maybe they'd understand warfare a little bit better that way?



iec


Posts: 3,190
From: SA
Registered: 4/13/02
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 5:11 PM   in response to: AmGI in response to: AmGI
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I think you had something strong to drink

SteveFormer


Posts: 113
Registered: 10/1/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 8:01 PM   in response to: AmGI in response to: AmGI
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That would put the God's fear in our enemies' hearts. It would also make it clear what the whole is all about.

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 10:24 PM   in response to: AmGI in response to: AmGI
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You do that. Please! Do that and see how united the Muslim Ummah will become. All your weapons wouldn't help you with the reaction you would get. Please encourage your leaders to do that. We need something like that.

And the Muslims didn't force anybody to convert. If that was the case, then you wouldn't see a single church or synagogue older than 100 years. The Ottomans controlled alot of land and the residents of many of those lands practised their faiths freely, and those lands still have synagogues and churches over 1000 years old. It would fit the description of a nation forcing people of another nation to convert. Thanks for trying so hard, though.



Message was edited by:
CurbStompinTomConnors

SteveFormer


Posts: 113
Registered: 10/1/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 8, 2009 10:36 PM   in response to: United in response to: United
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Judging by your emotional response, AmGI must've been onto something you're afraid of.

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 9, 2009 10:02 PM   in response to: SteveFormer in response to: SteveFormer
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Uh....ok.



irfanhussain

Posts: 243
Registered: 7/5/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 9, 2009 7:13 AM   in response to: AmGI in response to: AmGI
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***** ASSALAMU ALAI KUM ****

Do you actually know what we are dicussing here .... I doubt >>>>

Regards

AmGI


Posts: 1,983
From: Kuwait
Registered: 6/27/03
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 9, 2009 9:30 AM   in response to: irfanhussain in response to: irfanhussain
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Maybe you should rethink your statement there irfangussain?

Isn't it YOUR contention (and everyother Muslims) that the US simply attacked the Middle East for it's oil?

SO, stop and think about it for a minute, then try again with a comment.



yacketyyack

Posts: 2,505
Registered: 8/2/06
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 9, 2009 9:49 AM   in response to: AmGI in response to: AmGI
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What do you think the u.s. attacked Iraq for? I don't beleive and I don't think anyone else does either. Intelligence was wrong that many times about WMD. Get rid of Saddam? Since when did the u.s. or brits care so much about those nice Iraqis. They never did before. Myself, yes, I think oil, permanent bases, oil pipeline through afghan has a LOT to do with these so called war's on the mid east and afghan. Ok...tell us your version of why the u.s. attacked Iraq. Go ahead ole wise one lay it on us.  

AmGI


Posts: 1,983
From: Kuwait
Registered: 6/27/03
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 9, 2009 12:15 PM   in response to: yacketyyack in response to: yacketyyack
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I wrote an article on this topic and the conclusion of the Bush administrations determination of pre-emptive strike.

Of course the Mod's deleted it, or maybe it just didn't post.



yacketyyack

Posts: 2,505
Registered: 8/2/06
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 11, 2009 7:57 PM   in response to: AmGI in response to: AmGI
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Sureeeeeee  you did, okkkk. Whatever.  Maybee it just didn't post.

irfanhussain

Posts: 243
Registered: 7/5/09
Re: Gulf states and other countries thinking of eliminating US$ for oil?
Posted: Oct 12, 2009 5:56 AM   in response to: AmGI in response to: AmGI
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**** ASSALAMU ALAI KUM ****

I never declined , i believe US fought these wars to take control of Oil and it is for sure that US will make better use of Oil as ARABS are not able to do ... Arabs having such resource ... if they say " NO " to any country all the technology of the country will fall in a jiffy ... But they are not using their resource to create their dominance in world ... With such a massive resource US will guarantee its dominance on world for this whole century .... thats for sure ...

Yeah there can be other reasons like

Bringing Democracy in Afghanistan and Iraq ..
Finding WMD .... and So many

But for logical person it is very hard to believe

Regards

ahsano

Posts: 13
Registered: 8/10/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 12, 2009 12:21 PM   in response to: United in response to: United
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I wonder, are they really able to do that soon?

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 12, 2009 10:27 PM   in response to: ahsano in response to: ahsano
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No. They can't just do this whenever they want. The powers that be will do their best to keep this from happening, as the united states has arteries, and this is one of them. Cut that off and the beast dies a horrible death. You think they will sit by and do nothing, or will they do as they always have and attack and murder those who get in their way? I think they'll end up meeting their match soon, though, and get in to a war they can't win. Nevermind the beatings in Iraq and Afghanistan, they can't fight someone as big or bigger than them.

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 13, 2009 9:32 PM   in response to: United in response to: United
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I thought this was a topic about the possible outcome of Oil being traded and priced in another currency other than the greenback. I think that this would be a great thing. As an American, oil no longer being priced and traded with the greenback would do a couple of good things. First and foremost the dollar would lose its value. It would not be completely worthless but its value would drop. This would allow U.S. companies to no longer outsource jobs, because the goods and services being performed in other countries would no longer be cheaper than having them produced in the U.S. The reason for China's and India's emergence as economic powers is that those countries are cheaper for labor. The American corporate slugs even send jobs to Mexico. Once it costs as less to pay an American, the jobs being outsourced will no longer need to be. So while the purchasing power of the greenback will drop abroad, Americans will gain jobs. In the end, the only thing preventing the U.S. from being a completely self reliant country is the need for Oil. America can produce its own food, technology, transportation, shelter, etc. You name it we can do it. The one thing we do need help with is energy. The value of the greenback only really matters here at home.

This brings me to point two. Once Oil is priced and traded in another currency other than the greenback, the price of Oil will go up and the American public will demand a cheaper, alternative energy source. This will open up a new market and America has the resources to create that market. Once this market is chugging along, OPEC and all the losers who thought it would be a good idea to price Oil in another currency will lose their market because the alternative energy market will take over. The developing countries that are a part of OPEC will lose their only real source of revenue.

If you live in an OPEC country and they eliminate $ for Oil, I pray for you.

cyberers

Posts: 1,667
Registered: 1/23/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 14, 2009 11:03 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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You have some good ideas in your post. But, I wonder how well they will work as to being self sufficient.  That would be very hard for any one country to do.  If the u.s. or any country stop's dealing with other country's, I think they will end up like Russia did. It work's in theory but practical , could end up like a third world country. Not just standard of living at home..But what about all the puppet's they got paid off in places like the mid east , afghan, etc..? Where would they get the money to keep giving them? Israel will not think it very nice when they don't get free billion's of $$ yearly. Thing's may get complicated.

Cheers..

cyberers.



jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 9:10 PM   in response to: cyberers in response to: cyberers
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How well would they working as to be self sufficient? The U.S. basically is self sufficient. We produce every essential product we need and don't need it from everywhere else. Don't confuse dollar store junk made in China with food, technology based assets, transportation, building materials, etc. The non essential junk is what is imported. Imported products are only produced abroad because they are cheaper to do so not because they have to be. At the end of the day can the U.S. feed itself without outside help? Yes. Does it have plenty of access to potable water without outside help? Yes. Can the U.S. provide health care and shelter for all of its inhabitants without outside help? Yes. Can the U.S. produce the materials for the aforementioned needs without outside help? Yes. Can the U.S educate itself without outside help? Yes. Does the U.S. have a transportation network to keep the three above needs going? Yes. Ending up like the Soviet Union, which I think is what you mean is ridiculous. The U.S. can put bread on the shelves, has a strong presence in every industry in the world and provides the hope and opportunity for everyone of its citizens to better themselves. That could not be said of the former Soviet Union and that is why it is just Russia once again.The end of the U.S. propping up those regimes in the Middle East is a given. We would have no need to help them. As I stated, the U.S. would have no need for Oil so keeping a stable environment in those areas of the world would no longer be needed. Instead of being given aid they would be given a cold shoulder. Combine that lack of aid with the dry up of their real only source of income, i.e. oil, those countries will be in for a world of hurt. Since most of those countries cannot provide all the things that I stated above. Israel on the other hand will never stop being supported by the U.S. and even if greenbacks don't go as far as the used to they would still help quite a bit. Egypt on the other hand, which receives as much aid from the U.S. as Israel would not recover.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 14, 2009 12:36 PM   in response to: jonnyonthespot in response to: jonnyonthespot
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I don’t think self sufficiency would be possible for the USA which has 4.6% of world’s population but consumes 33% of world’s resources, (& 25% of the world’s oil), and is the biggest deficit spender -- it saves nothing and borrows everything. It spends more than it produces and to rectify the imbalance the standard of living would need to fall dramatically. It cannot continue to borrow from China forever to keep up with it’s artificial living standards.

There are nations of course that can be completely self sufficient, such as Australia which has everything in abundance; oil, natural gas, iron ore, bauxite, coal, uranium, gold, diamonds etc and although it has the ability to manufacture everything it needs, may find it more mutually beneficial by forming partnerships with densely populated nations like China & India by trading raw materials and food in exchange for factory manpower, especially when nuclear fission, solar, wind and tidal power replaces oil as the main energy source.

I give it 20 years at most for the Asian industrial powerhouses to surpass the USA, -- presently the world‘s biggest mortgagee, to the extent that it will take many generations of Americans to repay the trillions of it’s debt. The present internal political divisions are so intense that we may even see the fracturing and separation of Northern and Southern states into different nations, similar to the break-up of the old Soviet Union or Roman & British Empires.

BigB

Posts: 799
Registered: 4/29/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 14, 2009 1:56 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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Indeed.  But they stick their head in the sand and think al is a-ok.



jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 9:16 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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That is a very nice fantasy but lets analyze Mustaf. You say that based upon the consumption levels the U.S. cannot be self sufficient? Again, the products and services that are produced in China are only done so because it is cheaper. Because the dollar is worth so much. Once the dollar value drops when Oil is no longer traded in dollars, those products and services will no longer need to be produced in China. Instead they will be produced in the U.S. As it was 25 years ago. Once the United States relies on an alternative energy other than oil we wont need it. However, the U.S. still produces 40% of its current consumption. The U.S. has plenty of gas, coal and iron ore to support its own needs. In fact, most of the known coal reserves are in the U.S.. Diamonds and Gold are a luxury not needed for self sufficiency. Bauxite is the only thing the U.S. would lack in your description and that would solve itself. The U.S. would just come up with something else for its day to day use. Does anyone use aluminum foil anymore so do we really need a large supply of Bauxite? Self sufficiency for the U.S. is possible. The have saying the Asian countries will surpass the U.S. for 40 years now. The Japanese were supposed to do it the 1980s. When is it exactly supposed to happen? However, I am confused. On the one hand you say Australia can be self sufficient but in the next sentences you say Australia can trade material for goods and services. That contradicts self sufficiency. Are you sure you understand self sufficiency? If you actually believe the U.S. will break up into northern or southern states you don't understand the U.S. dynamic. E Pluribus Unum.

SteveFormer


Posts: 113
Registered: 10/1/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 10:43 PM   in response to: jonnyonthespot in response to: jonnyonthespot
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We can absolutely be self-sufficient - we're blessed with great agriculture and plenty of natural resources, but most of all, we have the most educated and enterprising population no other country in the world has.

iec


Posts: 3,190
From: SA
Registered: 4/13/02
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 16, 2009 12:53 AM   in response to: SteveFormer in response to: SteveFormer
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You are olso blessed with an ailing economy,a dead currency,More Americans fall behind on debts: Equifax

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 21, 2009 7:46 PM   in response to: SteveFormer in response to: SteveFormer
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>>most of all, we have the most educated and enterprising population no other country in the world has.<<

Shouldn’t that be “we ONCE had ----”


So this is untrue then?:-

High school graduation rates have slipped to the bottom half of the industrialized world. College participation has fallen from first to 16th. As demand grows for scientists and engineers, the U.S. ranks 35th out of 40 nations in math and 29th in science, according to the 2006 Program for International Student Assessment (PISA).

What went wrong? Forty years ago, America educated more citizens to higher levels than any other nation.

Today, the U.S. is the only industrialized nation whose next generation is on pace to be more poorly educated than the last -- a shocking blow to the American Dream.

http://www.huffingtonpost.com/linda-darlinghammond/a-test-for-our-nation_b_328957.html

regards.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 16, 2009 3:27 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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Well Jonny, there are lots of “USA can do’s ” in your post such as “can provide medical coverage needs“, but unfortunately corruption rules over there and if you cannot afford medical insurance you are left on the wayside. Do you think that the medical Insurance and The Pharmaceutical Conglomerates will ever release their stranglehold over the people? Nations like Australia and the Scandinavians provide much more humane treatment for their people. A $200,000 operation costs you nothing in Australia but in USA you would need to sell your house. As for requiring bauxite, will your planes be able to take off if made from iron, or will they be made from wood and paper like in WW1? Aluminum is vital in today’s world for it‘s lightness and tensile strength.

>>On the one hand you say Australia can be self sufficient but in the next sentences you say Australia can trade material for goods and services. That contradicts self sufficiency. Are you sure you understand self sufficiency?<<


Of course we can be completely self reliant and are able to manufacture ANYTHING we need by ourselves, but why would we establish work-houses to make minor articles such as flip-flops and clothing when as an extremely rich nation we can be better occupied going sailing or playing golf? WE don’t need the third world --- THEY need us for our natural resources, and if they wish to sell us labor in exchange that‘s a good deal --- more leisure time for us!

I myself own several factories in China manufacturing non-essential products that Aussies are not prepared for earning small wages to produce., but we can pull the plug anytime we wish to do so.

WE do not need to borrow to keep up our standard of living like the USA is doing. WE were unaffected by the recent recession (why would we be when we don’t owe anyone anything?) and if you read the financial news, Australia is the first nation in the world to surge forward again today.

>>If you actually believe the U.S. will break up into northern or southern states you don't understand the U.S. dynamic<<

Tell that to the Southerners who are currently giving your POTUS a hard time LOL.

Maybe you can make Rush Limbaugh the President of Texas with Michelle Malkin as vice-President ---- hahaha!

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 20, 2009 11:07 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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You know nothing if you think corruption rules in the USA.I think you may watch too many movies. And yes the corporate entities will lose their stranglehold on the medical industry. The people will demand it change. Evolution. There is plenty of bauxite to fit our needs. We have plenty of planes and plenty of recycled material to fit our needs. Boeing would not need to export any planes, engines, technology. etc.. Self sufficiency.

Well if you don't think self sufficiency is pertinent then why are you trying to have a discourse with me? The point of my posts was to answer the question of what happen if Oil as no longer traded in dollars and this is what, I explained, would happen. Somehow in trying to defeat my argument, you assert that self sufficiency is wrong and you good ole boys down under don't happen to want it so you can have more leisure time. Cool.

If you own factories in China, then I have been to the moon.

Well, you Aussies do have to borrow. Your trade deficit is in the negative which means you buy more than you can sell. Check the balance. You might have a bigger minimum balance than you think.

Have you ever had a Mint Julip? Doubt it. Rush Limbaugh can't even buy a football team so Governor of anywhere is quite out of the question.

Again

E Pluribus Unum

United

Posts: 554
From: Edmonton
Registered: 10/27/04
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 14, 2009 10:32 PM   in response to: jonnyonthespot in response to: jonnyonthespot
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You make valid points Jonny but, the fact remains, america relies on oil to keep control of various parts of the world. Those spots they control have given them the ability to obtain resources you otherwise wouldn't be able to get in the united states. An intricate web of resource reliance has been created and is so sensitive to change at any point that, if one part of the web fails, the whole will be damaged. I personally wish north america would drastically tone down its consumption because we(i live in Canada btw),along with the other advanced nations, consume over 90% of the worlds goods and services. This is disgusting and must be stopped. It's safe to say we contribute to world suffering with our overindulgence. It is not right and i hope someone takes the lead.

In this case, there are plenty of other nations that would gladly trade valuable goods for oil. OPEC nations won't have to worry until the oils stops flowing. The united states has no significant natural resource to trade with. This is why it invades countries that do have it.



jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 9:19 PM   in response to: United in response to: United
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I never denied the facts such as the U.S. relies on oil to keep control of various parts of the world. However, I now disagree with your "fact". It is the opposite. The U.S. tries to control certain parts of the world because it relies on Oil. There is a difference and the day the U.S. no longer relies on oil, those parts of the world will have no need to be controlled. I completely agree with you that the U.S. in particular and North America in general consumes way to much. When you no longer can be tricked to go down the rabbit hole, the party at the table seems much more amusing. How to get around this is tough. The human conscience is my answer. The U.S. did not invade Afghanistan for natural resources. Iraq and Vietnam is up for debate and before Vietnam any war fought by the U.S. was done for liberty and nothing else.

yacketyyack

Posts: 2,505
Registered: 8/2/06
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 3:31 PM   in response to: jonnyonthespot in response to: jonnyonthespot
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Where would the u.s. get the money to continue paying off the puppet leader's in other countrys? The amount get's bigger and bigger all the time. Now, they are paying off Pakistan(one of the contition's they gave the money) is that Pakistan help them fight the taliban. Very expensive project..considering the u.s. probally borrowed the money from China, they must pay that back with interest.

Front page IOL new's...

Obama signs 7.5 billion dollar Pakistan aid package into law.


jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 15, 2009 9:22 PM   in response to: yacketyyack in response to: yacketyyack
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That just sounds like vomit but I guess that fits with your name. The U.S. wouldn't need the money to pay off puppet leaders once the U.S. is no longer foreign oil dependent because those countries would not need to be controlled. Let them rot. Also who cares about paying back the Chinese. Nobody cared when Castro robbed the United States and nationalized all the industries in Cuba thus stealing them from the rightful owners. In fact, most everyone now thinks the U.S. should stop being angry at Cuba and lift the embargo. If Cuba can do it, then so can the U.S.. There will be a World War 3 before the Chinese see any of that money. Sending money to Pakistan is useless. I would never step foot in Pakistan. They are truly barbaric and need to be left to their own devices.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 16, 2009 10:41 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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OK, lets put your statement under analysis. You trade with China and in return for their goods you pay them in Treasury Bonds (which in reality are worthless because the US dollar which were once based on it’s value in Gold held in Fort Knox --- but no longer is, because all the gold that was once held there has been transferred by Jewish bankers to the Rothschild vaults of the Bank of London (701.8 million ounces!!)
and is currently held there as security for loans borrowed to keep the US economy functional & with only 24 million ounces of low-quality high-copper-content melted-down gold coins remaining in Fort Knox.


Foolish move by Lyndon Johnson in 1967 to mortgage and send your Gold Reserves from Fort Knox to London per J.P. Morgan and now the Jews got it all huh?


Therefore currently the USA is only basically functioning on the value of what it owes to China. If the US defaults on the Federal Bonds held by China, the US dollar value will be worth less than 5 cents --- and your wages will not be enough to buy a pack of chicken nuggets.

China does not need to have a war with the USA as war will cost them more than the trillions owed to it by the USA and so is prepared to forfeit the debt for ascendancy. In other words, China has you by the short and curlies & if you default you are gonners because who is going to trust lending money to a bankrupt in order for him to conduct a war with his last debtor because he refused to pay him back?

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 20, 2009 11:24 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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You live on this website don't you. Sorry it took me a few days to reply these, but I do have a life.

Ok. Let's keep your argument going. The U.S. buys goods from China with Treasury bonds, which in reality are worthless and China then buys material from Australia with same said worthless Treasury bonds. Awesome got it.

Believe what you want about U.S. gold. Do you believe you can drink ocean water and the moon is made of cheese as well?

Whether or not China forfeits the debt or not is irrelevant. They will never get the money and any punitive measure would only result in the lock out of the U.S. market. The Chinese don't want this. Better to sit back and take the interest payment. How could China have the U.S. by the short and curlies? That would mean we are in bed together. The junk they produce will be produced somewhere else as soon as the wage scale and GDP of BRIC countries changes. As soon as green technologies take off. The U.S. will be the producer and this topic will be irrelevant. To stay on subject, the quicker the U.S. frees itself from the yoke of Oil, the better off many people will be. First and foremost the U.S. would no longer need to be the policeman of the world and the power of Oil and carbon would disintegrate. The earth would benefit immensely. Unfortunately, in current energy producing countries, this will have negative effects.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 21, 2009 1:02 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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>>The U.S. buys goods from China with Treasury bonds, which in reality are worthless and China then buys material from Australia with same said worthless Treasury bonds. Awesome got it.<<

WRONG! We do not trade with China in US Treasury bonds. Quite enveloped in self importance aren’t you? WE exchange our raw materials & energy for products that we can well manufacture by ourselves but can’t be bothered to produce due to small profitability margins.

As for the US dollar, a year or so ago 1 $ US was worth 65cents AUD, it is now almost parity and by end of the year is estimated to overtake the US dollar, & be exchanging at rate US $1.10 = 1 Aussie dollar, so why would I trade with China in US dollars? That’s of course if the trend remains consistent and the US $ doesn’t go further down the gurgler, which is well on the cards.

You are the ‘self appointed’ policeman of the world purely to protect oil interests. How come you don’t ever get involved in problem places that have no oil? When you become independent of oil, you will need Uranium and guess which nation possesses 60% of the world’s easily process-able Uranium?

By the time you revert to manufacturing minor products, India and Indonesia will join China in the better ability to churn out these items and in order to earn any money exporting your produce you will also need to get used to living on wages currently earned by the workers in such nations -- about 60 bucks a month!

Dream on.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 21, 2009 1:07 AM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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Connection: A year ago 1 Aussie dollar = 65 cents US

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 21, 2009 12:25 PM   in response to: jonnyonthespot in response to: jonnyonthespot
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This is how it works: We sell wool to China, it turns it into clothing & we buy some of it (still leaving us with a massive surplus). China also sells these to the world making huge profits, but that of course includes the USA (which borrows the money from China to pay for it hahaha!)

We sell China iron ore (of which we have mountains of). China turns it into toasters, electric jugs etc --- sells some of these to us (leaving us with a surplus), sells the main to the rest of the world making a large profit (including the USA --- which borrows the money from China to pay for it.)

We sell bauxite to China -- who turns it into aluminum & sells it to the world in the form of saucepans, cans etc and sells some to USA to make aircraft, --- lending the USA the money to pay for it.

To power their factories we sell China the required coal & natural gas --- again a purely surplus trade for us.

In other words whatever we do in the partnership we come out with a massive surplus, so our nation runs at a surplus --- the USA runs at a continuous deficit, --- small wonder you are in financial troubles trying to conduct wars that you can‘t afford to protect the oil supplies you have become dependent upon!

China is about to soon flood the world with lightweight vehicles powered by electrics and hydrogen fuel-cells --- the USA is building bigger cars & more 2-ton 4-wheel-drive petrol guzzling vehicles, (promoted by the oil conglomerates & to be mostly occupied by 1 or 2 passengers). Not very bright is it?

In Australia our public transport busses are being converted to be powered by hydrogen fuel-cells.
Because in the US the system is based on massive oil consumption, you are desperate to keep it flowing, which requires conducting constant wars. You are caught in this spiral because of mismanagement and being governed by mo rons.

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 24, 2009 11:50 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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Did you take your economics classes in a Mardrasa or out in the bush? What you don't understand is that you sell nothing to China that hasn't already been purchased. The economic chain starts in the market. The U.S requires a product and pays someone in China to build it. Normally dollar store junk. In order to deliver the goods, China must buy the materials from you and build what is requested. You produce said materials for the Chinese. If the U.S. or some other market does not request something, China does not need to purchase anything from you. The only reason China is making the goods is that the middle class of China can be paid for by pennies on the dollar. These Chinese products are paid for in U.S. dollars. The Chinese companies thus have a surplus of cash in U.S. dollars and the U.S. government buys the Greenbacks back with U.S. Treasuries and pays the Chinese a dividend on that loan. The U.S. government does this because it runs at a deficit or that it spends more than it collects in taxes. The U.S. government can't just print all the money. The deficit difference must be paid for from somewhere. Like a company. You cant just simply print it all.

Moving on, Yamimbi is relative to the U.S. dollar and when the Chinese buy your materials they pay you in Yamimbi and when you buy their goods you pay them back in Yamimbi. The Yamimbi value is based on the Greenback. The value of the Yamimbi starts at the U.S. dollar, thus you are paid in the value of U.S. Treasury Securities. The Australian economic situation, however, is much better than the U.S.'s position. Both are negative though. Check the numbers. Australia has a trade deficit Not as bad as the U.S.'s but still not in your favor. In fact, if the U.S. and China traded nothing between each other, the Chinese would actually have a trade deficit with the rest of the world. The U.S. would probably not have as many Wal Marts and Dollar Generals.

Who owns the largest amount and nearly 30% of the proven coal reserves?

While I agree the U.S. runs at a constant deficit. My point is that the U.S. does not need to. We can be self sufficient. This may be the catalyst. Stop trading Oil in Greenbacks, forcing the U.S. to abandon the Oil market. It would no longer be cheap enough to use. The Oil would then lose a large market. We could then be self sufficient. The commodity we cant produce enough of at home is the hold back.

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 25, 2009 3:16 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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You are not just madly printing ‘Fiat’ money unbacked? You better read these then, as you are behind the times:

In the last 12 months the US government has spent $2 trillion more than it took in and printed over $1 trillion. Before this the record deficit was about $0.5 trillion and most of that was borrowed not printed. With this much printing, fewer people are willing to lock their wealth in US dollar debt. When the government can not borrow as much, it will print more.
In each of the previous American economic collapses there has been too much paper money for the amount of gold and people lost confidence in the paper. Today the US paper money dwarfs the US gold. In 1895 the government could be saved with $65 million in gold, today all the US obligations are more like $65 trillion, a million times higher.
With nothing to support this huge number of dollars, it seems hyperinflation will be coming soon. In hyperinflation the currency is dropping in value, so people don't want to hold it, so they spend it fast. With less people holding the money, the amount the government prints has a bigger impact. The government can't sell bonds and so prints more money, which makes people want it even less. Soon the printing spirals out of control.

http://pair.offshore.ai/38yearcycle/

So, better you get an audit on the Fed. & soon!


China alarmed:
http://www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html


How it USED to work, --- and today’s mess:
http://en.wikipedia.org/wiki/Gold_standard

FYI -- we now bypass the US $ and trade directly Yuan/AU$ exchange rate. The Chinese are reluctant to do deals based in US$ payments as they fear devaluation at settlement, and prefer payment in the rising AU$. There is no problem with credit period, as the longer the settlement time the greater the profit margin trading in AU$.

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 25, 2009 9:28 AM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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When interest rates rise and the money becomes tighter any argument you have regarding the value of the Greenback will be irrelevant. Any discussion on the trade between Australia and China is linked directly to the U.S. market. Without a market, Australia and China have no economy.

Are you unable to read? As I said, the U.S. can't print it all and that is why China's cash reserves are borrowed back. I never said the U.S. doesn't print money. I said THE U.S. CANT PRINT ALL OF IT. Now I see you neither understand modern economics nor are you able to read. I disregard your last post because it has no relevance to the discussion at hand and now I think your only purpose on this website is to instigate argument vs fruitful discourse. Maybe you forgot to take your ritalin?

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Oct 25, 2009 11:53 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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I see that you are the typical arrogant American who thinks the USA is the centre of the universe, and that’s exactly why you are detested everywhere.

Like the typical American, it’s also apparent that you are unable to conduct dialogue without resorting to personal insults, which does not say much for your manners or upbringing.

>>trade between Australia and China is linked directly to the U.S. market. Without a market, Australia and China have no economy<<

Absolute rubbish. There is a whole world out there as a market --- India, Asia, Europe, South America etc etc. You are deluding yourself believing that if the world goes green that the USA will again predominate by churning out renewable energy products? Well we are beating you to it as my family’s company already has factories in China manufacturing solar panels by the thousands ready to supply the world‘s needs, and has a joint venture with a Chinese company producing electric-powered vehicles. We provide the materials and finance and they supply the required labor.

You refer to yourself as ‘on the spot’, well here’s news for you --- we are already ‘on the spot‘, and if we weren’t forward in our operational thinking my family’s company would not be one of the most successful in Australia. Of course it is very helpful being a part Chinese family with contacts in China and with relatives living there, and a nephew holding a high Chinese Government position. Don’t be fooled by my ID which is a play on words. One of my sons also owns a re-insurance company based in Hong Kong but has ceased to insure US businesses for obvious reasons.

You need to accept the reality that your attempt at empire-building has failed! With IED’s so easy to manufacture, no peoples in today’s world will tolerate colonial empires ever again. Your foolish Afghanistan venture is going to bleed you dry, and don’t be surprised if the body-bag count will be much greater than it was in Iraq.

jonnyonthespot

Posts: 10
Registered: 10/13/09
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Nov 4, 2009 11:11 PM   in response to: Mustaf_Asay in response to: Mustaf_Asay
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Yes you are right we are detested everywhere. That is why so may people want to come to the United States according to a gallup poll. Nearly 38% of the 700 million replied the U.S. as their destination if they switched countries.

What would you know about a dialogue and where have I insulted? You are the one unable to discuss what I put forth. Instead, your inability to discuss my points has forced you to resort to America bashing. Since you can't stay on topic, your personal attacks about my manners and upbringing only further proves my point that you can't stay on topic. As for manners, how does it feel to live in a country whose foundation was built around being a penal colony. Here is an insult for you. Are you a descendent of a beggar, thief or murderer?

Yes I agree, there are emerging markets all over the world. But again look at the numbers. If China and the U.S. did not trade anything between them, the Chinese would have a trade deficit with the rest of the world. Without China buying your resources to produce products for the U.S. you would not be selling as much. And Australia has a trade deficit with the U.S. and China, so that means you buy more than you sell. The only rubbish here is your assertions that are not fact based. The idea that China is producing a fleet of electric cars ready to flood the market is great. My question is, will I be able to buy one at the Dollar General with all the other "durable" Chinese products and does the warranty on my toaster cover the car as well?

I could care less about your personal life or how you are a long lost relative of the Ming dynasty or something. The fact that you spend a good portion of your day on this website and will probably reply to me in less than 24 hours is a testament to how you spend your time. I go away for a week and you are still here waiting for an avatar to strike up a conversation with you. Don't get me wrong the banter is good, but I have lost your point, what is it again?


IEDs and body bags are part of being in the military. The Servicemen and Woman of our armed forces accept that they may die when deployed. It is their job. Once the people join they have signed that contract. Now as for the possibility that they are serving for an unjust cause, that is a whole different debate. You seem to cheering about their deaths, go ahead. But ask a good portion of 80 year old men in the world, including the Chinese, Western Europe, North Africa and even you Paul Hogan and see what they say about GI Joe.


I reiterate that it is possible for the U.S. to become self sufficient and is actually in our best interest. If Oil is no longer traded in Dollars, this would present an opportunity for an outcome like self sufficiency for the U.S..

Mustaf_Asay


Posts: 743
From: International World Citizen
Registered: 10/7/07
Re: Will Gulf States and Others Eliminate $ for Oil?
Posted: Nov 5, 2009 2:25 AM   in response to: jonnyonthespot in response to: jonnyonthespot
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>>Here is an insult for you. Are you a descendent of a beggar, thief or murderer?<<

LOL, hilarious. Answer: none of the above. My ancestors were Germans who arrived 200 years ago and operated the first post office in the nation, and have since became amongst the top 20 richest Australian families of today.

And yes, I do check in every day as being retired & with my children running the family companies, I can well afford to spend time browsing the Internet; mostly to while away time whilst deep-sea fishing and waiting for a marlin to strike, or simply whilst sailing about the islands.

>>Without China buying your resources to produce products for the U.S. you would not be selling as much.<<

Only partly true as you need to borrow the money from China to buy their stuff so how beneficial is that? So you claim that you will not pay them back the trillions owing. How long will that arrangement last before people wise up? I agree with you that if the world switches to trading in Euros, gold or some other currency (being considered right now) and the US dollar loses value, it will be more sensible to manufacture products locally. However then you will have to get used to living within your means. That means a severe drop in standard of living for average Americans will it not?

No I don’t cheer when US soldiers ( who are mostly volunteers because of lack of jobs) get killed just so that wealthy owners of Armament industries can further enrich themselves. Neither do I wish for the US economy to completely go belly-up because if it does the properties we already own in the USA will become valueless. We are counting on it resurging in about 5 years time when alternate energy --- (calculated as the time-frame needed for production of efficient hydrogen cells) is utilized as the main energy source.

Being good managers we don’t believe in putting all our eggs in the one basket and always insure ourselves not to get caught by any unforeseen events by diversifying our investments world-wide.

Not only were we not adversely affected during the Great Depression, but it was a period when we created most of our wealth by buying up properties when others were jumping off tall buildings.

The reason we were not wiped out in the Depression is that we never invested in Stocks & Shares but concentrated only in Real Estate and consequently grandfather became known as the ‘Bricks & Mortar Mogul’.

Our company is now awaiting further collapse of Real Estate values in the USA before buying up more swathes of properties there at rock-bottom prices, same as we astutely did in Australia and the UK in 1929-30 crash, when others had over-extended their credit.

That might sound calloused, but good business means taking advantage of other people‘s stupidity.


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