India to pay gold instead of dollars for Iranian oil. Oil and gold markets stunned

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The US government should not look outward to Iran, China and other countries how they try to devaluate the dollar but look inward, to themselves...who is responsible for this mess.

btw..can you imagine the amount of gold can be taken by the US government when the US forces take over Iran, maybe enough to pay for the Iran invasion.....and for Syria maybe too?

Once this starts, its not going to be pretty - at all.

Sure hope you have your preps ready. Now you can go back to your herp pro / con America derp.

reply to post by theBigToe

Mmmmmm wonder what electioneering spectacualr Obama is gonna pull to win a few more votes?

reply to post by cuchullainuk777


Hes the only reasonable candidate. Hes the only one not far left and not far right. Hes a center head.

reply to post by longtermproject


Agree. I have made this same point in other threads that it was a brand new weapon (even though the conceptual knowledge and R&D that Nazi Germany was well aware of from whom the project was taken over by the allies (mainly US/UK)). If not the US, surely the Nazi Germany would have used it to win a psychological war (atleast in Europe). It was a blind leading another blind (Hitler teaming up with Imperial Japan) and Yes the US did test the weapon in the deserts of Nevada and realized its immense destructive power (death and destruction and psychological). It was necessary back in time to end the War but to also stop future aggression from the fraction of the Japanese commanders who simply refused to accept defeat (even without nuke) and were hell bent on waging their own secret conflicts/war without going through the Japanese emperor. The decision was based on the then WWII intelligence. Surely the emperor was being played upto certain extent by their military before the official surrender.

Either way you look at it, If the Nuke wouldn't have been used, who the hell knows when WWIII would have kicked off back in time since nobody would have been aware of the deadly consequences of future conflicts. How and why do you think the balance of power was placed into the hands of USSR back in time? USSR obtained the technology by espionage and internal help from the engineers (whom many not all at that point in time felt that such power should not belong to a single nation). Surely many sold the information for money but majority of the poindexters felt that it was a very very terrible weapon and should not be left alone in the hands of a single country. The balance of power has to be achieved to avoid future large scale wars such as WWII.

I'm just too damn tired of posting the links to support my view points but I'm sure the on/off line libraries would have the supporting documents/articles.

Peace.

UAE, China Agree to Drop Dollar, Trade UAE Oil for Yuan

Wow, we might be seeing the collapse of the dollar as we speak.

silverdoctors.blogspot.com...

Originally posted by Deetermined

Originally posted by tarifa37

There isnt enough gold (that has already been mined) on earth to pay for oil long term.

Isn't that the truth?

We're already selling 4 oz. of gold for every 1 oz. in existence.

Using gold as a monetary base is unmanageable and too hard to track, therefore leaving inflationary rates to fluctuate out of control.

Is what you are telling that the unbacked dollar print trick and the digital trillion dollar trick is applied on gold? Is the federal reserve selling gold that isn't really there but just on a piece of paper for the customer to believe in?

Wouldn't surprise me if the same trick is used with international oil trade.....and other stuff. What a scam, and nobody has the authority to stop this trickery.

And I was thought that fairytales is a world of make-belief....


Well, I hope that the euro will not follow down the drain with the US-dollar and I feel very sorry for the hardworking american people. A very famous dutch soccer player once said, 'every loss has its advantage'....maybe the time is near that I can afford myself a true american product....a Gibson Les Paul Custom.

Originally posted by MidnightTide
UAE, China Agree to Drop Dollar, Trade UAE Oil for Yuan
Wow, we might be seeing the collapse of the dollar as we speak.
silverdoctors.blogspot.com...

Yes it is a valid theory. However most bloggers if not all do get paid to blog these days. I've seen tonnes of them blogging while commuting to work in various cities. Its a part time job and supporting income. I wouldn't take it too seriously from all the blogspots that are out on the net. Its a Monkey do what Monkey see world when it comes to MSM. Some of the MSM reporting is pathetic and its taken straight off the blogspots and forums like ATS. Its redigression of information/opinions/theories when becomes a news story on MSM, everyone jumps the half a$$ truth bandwagon. Trust me majority and most of us will never know what the real game plan is of any country beyond the local policies (foreign policies).

Originally posted by majesticgent
So we're going back to the gold standard I see. Realizing that Fiat money is still based on something, which was oil, in the Greenback's case. So now that countries are buying oil with gold the Greenback will lose most of it's intrinsic value.

Now something else will have to replace oil to value the Greenback, or else the value of the currency will come crumbling down sooner than expected.

Oil could be replaced by food/water/guns to back the greenback. If you want any of life's absolute necessities, once the gold oil runs out, give us your guns for food/water. Monsanto, Floride, chemtrails, etc... If at that stage, good luck collecting rain water for drinking, they'll just use HARP to starve your ass to give in. It will be a New NWO world currency. Countries will get pissed and nuke, that's what all this DUMBs are being built, anticipate nuke retaliation, wipe out all low,middle class. Any rich/smart survivors will have to give in.

reply to post by theBigToe


hes an egg head

reply to post by 1947flxible


This is bad because the USD requires upstream demand for it to be worth anything. If it's not being traded on the open market for needed raw materials such as crude it will collapse. This is very dangerous what India has done which could create a domino effect in the dollars for oil global trade dynamic arena. I guess they don't want their nukes anymore.

No oil bought and sold in dollars, no nukes. It's a real simple equation to understand.

The United States just lost its world currency status. This is monumental, the world is abandoning the dollar as we speak. It's happening right before our eyes. Wow...So the UAE is going to trade with other countries now with their own currency and gold. This means the U.S. just lost its superpower status and the world is going on without us.

reply to post by maybejustmaybe


Racist much?

Originally posted by Gorman91
There was no oil reason to go into Iraq.

The Iraq war was nation building. Nothing more.

I can't argue with the vast majority of what you have written, but your assertion that Saddam trading oil in Euros had nothing to do with the invasion rather begs the question why Iraq now trades oil in US dollars.

I feel your analysis would be even stronger if you incorporated the economic dimension of reserve currency status.

Why does any nation want its currency to be the world reserve currency?

This article in the Wall Street Journal states

The dollar's status as a reserve currency gives the U.S. enormous advantages, and it should be protected ferociously by our public officials.

It means we don't have to repay our debts in foreign currency and that our borrowing costs are cheaper.

To the extent that the rest of the world follows a dollar standard, it also gives us far greater global sway.

China and the Dollar

This article in Bloomberg, while cautioning not to over-estimate net benefit to GDP of reserve currency status goes on to list more significant advantages

In 2007 and 2008, MGI estimates, the net financial benefit to the U.S. was between about $40 billion and $70 billion—or 0.3% to 0.5% of U.S. gross domestic product.

And in the year to June 2009, when the dollar appreciated by about 10% due to its safe-haven role, the cost-benefit turned even less positive: We estimate a range between a net benefit of $25 billion and a net cost of $5 billion.

There are two main benefits to the U.S. as issuer of the main reserve currency.

First is interest from seigniorage—the profit made on issuing additional currency to non residents who hold U.S. notes and coins—estimated at $10 billion a year.

Second is the fact that the U.S. is able to raise capital more cheaply because of very large purchases of U.S. Treasury securities by foreign governments and government agencies.

We estimate that these purchases have reduced the U.S. borrowing rate by 50 to 60 basis points over the past few years and are worth about $90 billion to the U.S.

Dollar as Reserve Currency: Mixed Signals

Thus article by the Wall Street Journal takes a more down to earth view point and states that US companies enjoy a number of advantages from the US dollar being the reserve currency

They don't have to incur the cost of changing foreign-currency earnings into dollars.

They don't have to purchase forward contracts and options to protect against financial losses due to changes in the exchange rate.

This will all change in the brave new world that is coming. American companies will have to cope with some of the same exchange-rate risks and exposures as their foreign competitors.

Why the Dollar's Reign Is Near an End

reply to post by hp1229


Oh, I give you that it is just a blog, and none of us know what the inner dealings are - but I will say the petrol dollar reign will end sooner or later, and that is about the only thing keeping the US afloat at the moment.

I can not believe I am seeing this in my lifetime! Perhaps many will be angered because I am actually happy that the dollar will no longer be the WORLD CURRENCY for OIL, and our country will be strangled out of OPEC and be forced into an alternative energy option (which will no longer be a choice, but a necessity).

This is a Solution, not a problem.
And I'm glad that India is the forerunner of this change.

reply to post by 1947flxible


If the US dollar does lose its reserve status, not only will the US lose a number of advantages, logically a lot of US dollars currently sitting as reserves in foreign central banks and currently being used in international trade transactions will no longer be needed and will flow back to the US looking for something to buy

This will presumably have a number of effects

(1) An increase in the US domestic money supply will cause inflation of a greater or lesser magnitude.

(2) Foreign holders of US dollars will buy up US assets, meaning more of the US is foreign owned and controlled.

(3) Selling of US dollars by foreign holders of dollars to purchase foreign currency will reduce the value of the US dollar in comparison to other currencies. This will help US exports and make imports more expensive (a positive effect) but will also reduce the USA's power in the world.

(4) The US government will find it much more difficult to sell its bonds, meaning the US government will need to raise the interest rate it offers on its borrowing. This will result in US banks raising their lending rates, resulting in increased cost of capital for firms and domestic borrowers (including house purchasers), at least somewhat offsetting the advantage for exporters due to the drop in the dollar's value.

So the upshot of the dollar losing its status as reserve currency is on the whole significantly negative.

- More expensive borrowing costs for the US government, US consumers and US business.
- Increased inflation.
- Reduced international purchasing power of the US dollar.
- Sale of US domestic companies to foreign buyers.

On the positive side, a weaker dollar will reduce foreign imports and increase US exports. This advantage however will be negated in part or entirely by increased borrowing costs and hence cost of production for US domestic producers.

Well, it looks like America is going to be attacking India next. India already has nukes, so our Gov. can't use the proverbial "India is trying to procure nukes to blow up the world". Any bets on whether a civil war will start? Could Alkida or the Taliban be training suicide bombers behind their borders? Our Gov. will not allow this kind of behavior to take place. They will find an excuse to punish them for their deeds. I guarantee it. Maybe I should put a thread together on how it’s going to happen. Any thoughts…