According to news outlets such as Reuters and AAP, the National Iranian Oil Company will cease selling oil denominated in US Dollars.
Iran will now sell oil in various currencies, predominantly Euros and Yen. Iran has been selling oil to Japan denominated in Yen since September this year.
Key OPEC members will be discussing a move away from the US Dollar and will announce the results at its next meeting.
Is the saber rattling aimed at Iran really about its vague nuclear ambitions or has it more to do with the US losing its grip on Dollar hegemony.
Countries such as Iraq, Iran and Venezuela are paying the price of non-compliance.
Its more than the oil industry. With the fall of the dollar many companies are considering switching to Euros. For those of us working abroad and paid in USD'S are seeing a big cut in our salaries. I am not sure what it would take to stop this fall but something needs to be done. I know my company is considering the switch now. Not Yank bashing, reality!
And for Gnirren's 'yank bashing' = thread removal quip; may I ask him to just do some casual reading. You'll see that most of those types of threads don't get removed.
When a poster or two goes mental and calls for assinations and/or blames the problems of the entire world on Jews/Muslims/Christians and expresses a desire to see said group eradicated, well, it does tend to draw the mods' ire, in my opinion.
JetBlast member 2005. JetBlast member 2006. Banned 2007
Join Date: Apr 2006
Location: The US of A - sort of
Posts: 313
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It's Iran trying to stick it to the US.
[sensible comment] Not really. I can't see them trashing their economy just for spite. The switch from USD to somthig else is an open statement the they have no faith in the future of the Dollar
[/sensible comment]
[bush bashing]
...and why would they when you look at what the current administration has don to it for the past eight years?
[/bush bashing]
anyhoo doesn't this thread pick up where the now removed Iran thread left off? Seems to me it's only a matter of time before this one goes too, and of course it's not yank bashing. Yet. Eh ;-)
Iran doesn't want USD - so what? That puts them in the same category as two of the other experts on international finance, the first being Giselle Bundchen and the second is some moronic rapper whose name isn't important enough to remember for longer than it takes to read the news article.
The Chinese, however, who are NOT noted for financial stupidity, have no problem at all accepting US Dollars. Despite hysterical media reports to the contrary, the USD is not going down the tubes and doomed, right now it is simply a less attractive currency to invest in because USD denominated financial instruments presently have lower rates of return than Euro or Sterling financial instruments.
Bernanke is keeping the interest rates down right now (which reduces the return on USD financial instruments) to stabilize the economy, which is presently going through a chicken-little ("the sky is falling!") episode with problems in sub-prime mortgages - which were stinkers even before they were combined into stock offerings.
As soon as the current problems clear up (and they will), the value of the USD is going to soar. If it increases by 30%, the vast Chinese hoard of USD has just gained 30% in value - just because they had a bunch of them to sit on - so now who's stupid?
As far as oil is concerned, in 2009 or 2010, look for a car called the Chevrolet Volt. (You can Google it now.) GM says it will get about 535 mpg . . . that's five hundred thirty five miles per gallon . . . and it will sell for the price of a Honda Accord. If it gets half that, I'll be pleased. GM, which can make a HUGE number of cars if it wants to, is not the only player in the hybrid/ultra-high mileage game either, so I think that in the next ten years we are going to see the demand for gasoline plummet - and take prices down right along with it. If no one wants any, "peak oil" becomes a paper tiger.
People have been cackling over the imminent demise of the USA for many years. Somehow we always manage to disappoint them, and come roaring back with a vengeance - this time will be no different.
Footnote - here's an example of the kind of nonsense reactions to the sub-prime problem: Some years ago *I* formulated a program which allowed UK buyers to purchase vacation homes in Florida and repay the loans in Sterling. Abbey National adopted MY program, ran it for some years, sold it to First National, who sold it to General Electric as "British Mortgages in America". They had a portfolio of almost 3,000 loans and had eleven defaults - that is an astonishingly low loss ratio. In October, GE pulled the plug on it with five hours notice - seems they were collateralizing the loans and no one would buy the packages any more out of general fear of CMOs - these were the BEST quality with the lowest loss ratios in the business, but no one would touch them! End of cash flow, end of game.
Want some good financial advice? Buy Dollar denominated assets while they are cheap - they'll be going up significantly in the next year or so - where else can you earn 25 to 30% a year just from currency fluctuations?
Best Regards,
Echo Mike
(who also knows a bit about other things than airplanes!)
Location: South of the North Pole, north of the South Pole...
Posts: 303
Rollingthunder wrote:
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Most of the oil America imports comes from us (Canada).
That remark surprised me, but since I still occasionally play the lotto numbers he gave me once, I thought I'd do some research.
According to this website, Canada was indeed the N° 1 supplier to the USA, at the rate of 1,777,000 barrels of crude oil or 2,330,000 barrels of all petroleum products, per day, during the period of Jan-Sep 2006. That probably explains why the Canadian $ is on a par with or worth more today than the US $.
However, using the term "most of the oil America imports...comes from Canada" is over-exagerrated. At best under any measures, it's still less than 20% of total US oil (or all petroleum product) imports.
Still, Canada's ahead of Saudi Arabia, Mexico, Venezuela, Nigeria and even Algeria. Before Iraq comes into play. Iran doesn't even appear on the top 15 charts...?!
Does this mean that the USA already quietly invaded all those countries... so why bother with Iran?!
The Anglo-Persian Oil Company (APOC) was founded in 1908 following the discovery of a large oil field in Masjed Soleiman, Iran. It was the first company using the oil reserves of the Middle East. APOC was renamed Anglo-Iranian Oil Company (AIOC) in 1935 and eventually became the British Petroleum Company (BP) in 1954,
William Knox D'Arcy negotiated an oil concession with the Shah Mozzafar al-Din Shah Qajar of Persia in 1901 giving away control of Iranian oil reserves to Britain for 60 years. However, within a few years D'Arcy was almost bankrupted by the cost of exploration and so to raise capital he sold a large portion of the stock to the Burmah Oil Company Ltd. who created the Anglo-Persian Oil Company (APOC) as a subsidiary and also sold shares to the public.
Volume production of Persian oil products eventually started in 1913 from a refinery built at Abadan. The British government, at the impetus of a middle-aged Winston Churchill, First Lord of the Admiralty, partly nationalized the company in 1913 in order to secure British-controlled oil supplies for its ships. APOC took a 50% share in a new Turkish Petroleum Company organised in 1912 by Calouste Gulbenkian to explore and develop oil resources in the Ottoman Empire. After a hiatus caused by World War I it reformed and struck an immense gusher at Kirkuk, Iraq in 1927, renaming itself the Iraq Petroleum Company.
Location: South of the North Pole, north of the South Pole...
Posts: 303
Quote:
Ah you're one funny dude Airship. Back to Yank bashing I see.
What is your problemcon-pilot, everything becomes "yank-bashing" to you apparently?!
You've a major oil supplier on your northern border. A source of cheap immigrant labour for "cleaning up after y'all" to the south. All without a shot being fired. Thousands of miles of oceans separate you on both sides from anyone with a Kalashnikov in their hands (unless it's one supplied by your own arms-dealers "under the 2nd amendment") that is.
Well, I'm literally sick and tired of living under this worldwide 21st century capitalist hegemony or whatever else you like to call it all. I'd like to go find me a Bengal tiger in the Sunderbans and endeavour to establish a symbiotic relationship. Unfortunetly, I won't be able to take any nuclear weapons with me to the mangroves. Otherwise, tigers would be a factor to be reckoned with, instead of what they are. But maybe, just maybe, someone might yet be able to develop some awful bird-flu virus that will wipe-out 90% of humanity - I'm just guessing that it already exists, and someone just poisonned his favourite cat...?!
Hardly. The US economy has become the driving force behind the global economy. My comments wrt greenback hegemony are in no way intended to lay blame on your government or the citizens of your fine country. There are certain economic imperatives that your country must satisfy in order for growth to continue both domestically and internationally. One imperative is the continuation of dollar hegemony. Without huge demand for greenbacks, the US current account deficit will become unmanageable. This is not your fault, its not Bush’s fault. It is, however, very real. And it is a huge driving force behind US foreign policy. Any country that employs trade mechanisms that undermine the demand for US dollars will be dealt with diplomatically, economically or militarily.
Iran is treading a very fine line. Iraq crossed it.
It’s not about nuclear weapons. It has nothing to do with the fact that the US imports its oil from Canada and Mexico.
Well, I'm literally sick and tired of living under this worldwide 21st century capitalist hegemony or whatever else you like to call it all. I'd like to go find me a Bengal tiger in the Sunderbans and endeavour to establish a symbiotic relationship. Unfortunetly, I won't be able to take any nuclear weapons with me to the mangroves. Otherwise, tigers would be a factor to be reckoned with, instead of what they are. But maybe, just maybe, someone might yet be able to develop some awful bird-flu virus that will wipe-out 90% of humanity - I'm just guessing that it already exists, and someone just poisonned his favourite cat...?!
Well, everyone has an opinion. At least you are predictable.
Sorry, but this is one of my pet peeves. Please look up the definition of literally. Bugs me almost as much a near miss to describe a two aircraft coming close to one another.
