Putin's New "Protocols"

a reply to: stuthealien

Please explain how the petrodollar system works, and how the United States profits by it.

ok since world war 2 a contract was signed that all oil/petrol would be bought in dollars ,so every country converts to dollars (this is subject to an exchange rate) .

now fast foward to now ,,,you still have the world enslaved to buy in dollars an old system left behind from ww2.
now if you can imagine how much revenue has gone to the u.s.a since ww2 on zillions of barrels ,proberly a sum of money my brain can not comprehend ,yes its just skimming a percentage off the top but the amount of money since ww2 is most likely uncountable ,,,putin was leading the world in ridding the world of this system but now he is public enemy number one very convenient for the u.s.a

im willing to bet a transportation charge is also added so two ways to get revenue

a reply to: stuthealien

How does the United States profit by that system? Dollars are actually flowing away from the United States when they are exchanged! Look at Saudi Arabia and the Emirates. Have they been getting poorer since World War II, or richer? Which way does that mean the dollars are flowing?

a reply to: DJW001

you seem to be struggling here but it really is straight forward must be the way i explain things.
ok say usa buy oil at 45.00 dollar they add transport an resell for 50 dollars = 3 dollar profit on barrell
but to buy from the u.s.a they have to convert to dollars which costs more then 50 dollars because of exchange costings
so a 45 dollar barrel =55 dollars .

so if we work on 10 dollars profit for every barrel sold since world war 2 ,we have a incredible amount of money that the usa will fight to the death to keep

also all these countries need oil ,so because we have to use the dollar it makes it look like there is a demand for the dollar and vus you get a higher credit rating as a result of the fake dollar demand,when in reality we just wont the oil

a reply to: stuthealien

But most countries buy directly from the oil producers. The sales are denominated in dollars because, after WWII, the United States was the largest consumer of petroleum, and the dollar's exchange rate has historically been very stable. No-one would denominate a sale in, say, rubles, because the ruble is prone to wild variations in value. Russia's economy is currently in a free fall and the ruble is on its way to being worthless. Some petroleum exchanges are now being denominated in RMBs, the Chinese currency, because the Chinese are the second largest consumer of petroleum and the RMB is "pegged" to the US dollar, which means that its exchange rate is stable over the long term.

I suspect you do not understand how international trade works because you rely on zerohedge.com for information. They just make stuff up, you know.

a reply to: [post=19275480]DJW001[/post

i can see exactly how world trade works ,,,especially when the cards are stacked in the u.s.a's favour.
and your dollar is being proped up by the rest of the worlds demand for oil,,like the worlds paying welfare for the u.s.a
are you american by any chance????
i ask because you slate russia at any chance and seem to be pro-american by your stance ,,because if you are i would ask do you actually want free trade or do you wish the u.s.a to keep its oil monopoly???

oh ive never been to zerohedgefund in my life but you seem to know the name


you can take out putin ,but the message remains the same ,petrol dollar must go and this message is from london not russia

a reply to: stuthealien

i disagree completely and openly accuse the u.s.a of instigating this whole situation

Well care to provide something that might back the claim, because this all started many months before we saw the end results.

And it happened mainly because the president at the time decided to forget his promise of the EU agreement and decided to go with Russia.

Also you need to remember that Ukraine knows all about Russia and their economy, and didn't want to have to deal with that again. As the EU provides more trade partners than Russia can provide.

there is no way the usa is not involved covertly or otherwise

And there's no way Russia is not supplying arms to the separatists and lying to his own people about Russia's involvement in Ukraine. See that works both ways.

i agree russia is doing what ever it takes ,the same as the usa is obviously continuing to support its interests,none of this is as straight foward as its russia's fault and i cannot blame the usa for trying to cling to a highly profitable scam as the dollar is quite low on the world market even with the world buying dollars,but go it must.

a side note here :how is the us economy in the state its in when you do have the petroldollar supporting it and no national health service to pay for?

a reply to: stuthealien

What oil monopoly? The United States cannot even legally export crude oil!

www.cfr.org...

The United States does not profit from other countries using its currency in overseas transactions. Please educate yourself, just a little bit.

originally posted by: stuthealien
a reply to: [post=19275480]DJW001[/post

i can see exactly how world trade works ,,,especially when the cards are stacked in the u.s.a's favour.
and your dollar is being proped up by the rest of the worlds demand for oil,,like the worlds paying welfare for the u.s.a
are you american by any chance????
i ask because you slate russia at any chance and seem to be pro-american by your stance ,,because if you are i would ask do you actually want free trade or do you wish the u.s.a to keep its oil monopoly???

oh ive never been to zerohedgefund in my life but you seem to know the name

you can take out putin ,but the message remains the same ,petrol dollar must go and this message is from london not russia

Petrodollar thing is effectively over. Has been for a few decades when banks changed the way they transfer money do to the digital age. Banks now just keep currency on hand. They Don't pay exchange rates where people get this idea I dont know. Look a countries currency is set by investors not oil.When it comes to the decision of whether you should buy or sell dollars, it all boils down to how the economy is performing. A strong economy will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment. Investors always seek out the highest yield that is predictable or "safe." Investment from abroad creates a strong capital account and a result is a rise in the dollar.
The capital account is the net result of public and private international investments flowing in and out of a country. you must really stay off those anti US websites they make stuff up.

Now where the petro dollar does help the US is US investors don't have to figure out exchange rates and factor that in making the transactions much quicker. And in a stock market every second counts but if a country like say saudi Arabia stopped accepting the US dollar the exchange would go through in riyals. In the digital age transfer of funds between banks isn't as complicated as the 60s.

So in conclusion your call to stop the Petrodollar is funny being it's been done for decades. Now try to get the middle east to stop accepting dollars good luck with that. And now that the US has the largest stockpile of oil in the world will be controlling oil prices for a long time to come.

originally posted by: DJW001
a reply to: stuthealien

What oil monopoly? The United States cannot even legally export crude oil!

www.cfr.org...

The United States does not profit from other countries using its currency in overseas transactions. Please educate yourself, just a little bit.

Things have changed with fraking in the US it now sits on the largest oil reserve in the world. Exports are steadily increasing. However thus ban means exports must be refined first. This puts a strain on US refineries limiting the amount of exports. Currently THIS self Imposed restriction is costing the US billions. But congressman aren't the brightest people and this will go on for a while I'm sure.

People love the it's about oil excuse. But they don't understand the oil market is investment driven. By the way the largest petroleum producwr is Saudi Aramco - 12.5 million barrels per day. So who do you think controls oil prices?? For example Saudis are over supplying the market on purpose causing gas prices to fall. YOu ask why simple they want to secure the Asian market by making sure if Russia tries to go into Asia they will lose alot of money. China for example won't have to shop around and will continue to use current suppliers as the need increases. And number 2 right now r he Saudis need capital. They are currently in a conflict and they are investing huge amounts of money on military something they havnt done in the past. Expect major arms deals coming out of the saudis.

a reply to: dragonridr
your last 2 posts cleared up a lot of things for me.
thank you

originally posted by: autopat51
a reply to: dragonridr
your last 2 posts cleared up a lot of things for me.
thank you

You have to suspect someone motives when they start talking about oil. Last I looked the 1st US company wss 6 or 7th on the list even Russis Gazprom was 3rd. Has to make you wonder why they so quickly claimed the rights to the black sea.

I've concluded it's two reasons you have 1 group that thinks Rich people are trying to take over and see it that they would use oil and banking. The wouldn't use oil you use communications and transportation. But thats another thread and finally the general I hate Amarica cwowd.

a reply to: dragonridr

I know how employment law works, and I agree. There are many anecdotes about that. We also have a few issues with payments. But I read over and over how (as if it's like North Koreans scared of not-so-Lil' Kim) that secretly people don't support Putin. Most do. I've never heard of these people apparently too scared to say anything against him publicly, other than on TV like everyone else. In fact, typically, I am a rare voice against Putin.