Russia to trade oil in rubles - a new threat to the dollar

Originally posted by XphilesPhan



The problem is russia has never had a major export, other than weapons and military equipment.

[edit on 25-5-2006 by XphilesPhan]

You are so Ignorant that you are speaking BS
Today Russia is the world's 1 exporter of natural gas (a quater of european gas comes from Russia)

Today Russia is world's no2 (after Saudi Arabia) exporter of Petrolium
there are many other items where Russia leads in export ....(just google )but I think that these two are enough to put a threat to the US dollar

Originally posted by dr_strangecraft

It comes from a fundamental misunderstanding of how securities markets operate.

The currency of record in a commodities auction is nothing more than a footnote. All foreigners will have to set up an account with a local bank, and that bank will convert their money into the national currency so the person can buy or sell commodities.

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You are underestimating the value of what currency oil contracts are quoted in. Oil sir, is the most important component of our energy mix, without it, the industrial revolution would not have transpired (coal was not enough) to the extent that it did and we would probably not be here having this discussion right now.

Lets look at a major Russian oil importer, the European union; an importer increasingly dependent on Russian oil as the north sea is in freefall production decline leaving even the uk in need of importing oil.

Now, if I was the EU, and I needed gas, and Russia told me it will only accept payment in rubles, well, I have to start selling my goods and services to them and ask for payment in rubles. Once I get those rubles, I'm NOT going to turn around and convert them into euros because well, I need to buy gas and my economy would collapse without this cornerstone of energy. Effectively, a new but not so new concept comes in existence, the petroruble.

The united states, which has no oil to sell and imports most of it's needs and whos dollar is no longer needed on every oil trade; and only forced the hand of oil exporting nations after we went off the gold standard in the 70's, will see a drop in demand for us dollars, effectively, importing back the inflation that Russian oil carried.

Importing back that inflation being a key difference due to the fact that the us economy had much stronger fundamentals and has been a reserve currency since brenton woods (then being on the gold, not oil standard), managed to retain this status.

I don't believe the ruble will become a reserve currency due to the half baked free market policies of Putin but it will go up in value. It might not crush the dollar but will take it's respective value away from the dollar never the less.
Then again, there is a boatload of debt underwriting the dollar so anything can happen...

You sir have confused generic securities markets with money markets.

thank you for that reply , i wish i had seen it sooner

dr. strangecraft effectively brushed off a significant development

and that is the potential for other country's in positions of leverage to weaken the hold of the petro dollar and cause a increase (albeit delayed) in consumer prices WITHOUT being attacked.

peope in the united states (and i am one of them) are very ignorant when it comes to world affairs and think their standard of living is guaranteed to go on forever caue that's the way they always remembered it and if there was a threat it would be on the news. sadly both are false, because the last would be surpressed , other wise it would be too obvious and believed by sheeple that we used another (excuse) to get into war(oil dollars) , when we have a better excuse (false flag) that gets war support, to carry out a SUPRA NATIONAL AGENDA

i will concede that the oil was a part of the plan, but not the entire reason which is guided by a supra national agenda, althoug it operates at the national level as well as politicians play their "role's"

[edit on 5-9-2007 by cpdaman]