US government near to debt limit

[zapjb]

Cold turkey on oil?! Nope not with #1 & #2 both oil whores!

[Rat Faced]

That's why they won't let it happen.

Didn't another oil producer already try to trade in Euros.

A Mr S Hussein I believe Although Iran will be a harder nut to crack.

The US worry is that other states will follow suit and the US will face inflationary pressures on fuel because the price will be determined by the US exchange rate to other currencies (although this could also work in the US's favour, it does take an element of control away). On the plus side such a move might be the final push needed to make US go cold turkey on oil.

Iraq moved to Euro's in 2000...

Iran is talking about it in 2005-06.... hmm, guess who the next bad guy in the Middle East is, makes you think.

This time though, the Russians are also talking to the Germans about it and..

Last year, in a little noticed Opec speech to a Spanish Finance Ministry conference, Javad Yarjani, a senior Iranian oil diplomat, said: 'It is quite possible that as bilateral trade increases between the Middle East and the European Union, it could be feasible to price oil in euros. This would foster further ties between these trading blocs by increasing commercial exchange, and by helping attract much-needed European investment in the Middle East.'

.... Iranian, but speaking for OPEC.

No wonder Bush is shitting himself over Iran and fauns over Saudi atm... Iraq by itself was limited due to "Oil for Food".

The oil-dollar nexus is one of the foundations of the world economy that inevitably filters through to geopolitics. Recycling so-called petrodollars, the proceeds of these high oil prices, has helped the United States run its colossal trade deficits. But the past year has seen the quiet emergence of the 'petroeuro'.

Effectively, the normal standards of economics have not applied to the US, because of the international role of the dollar. Some $3 trillion (£1,880 billion) are in circulation around the world helping the US to run virtually permanent trade deficits. Two-thirds of world trade is dollar-denominated. Two-thirds of central banks' official foreign exchange reserves are also dollar-denominated.

Dollarisation of the oil markets is one of the key drivers for this, alongside, in recent years, the performance of the US economy. The majority of countries that require oil imports require dollars to pay for their fuel. Oil exporters similarly hold, as their currency reserve, billions in the currency in which they are paid. Investing these petrodollars straight back into the US economy is possible at zero currency risk.

So the US can carry on printing money - effectively IOUs - to fund tax cuts, increased military spending, and consumer spending on imports without fear of inflation or that these loans will be called in. As keeper of the global currency there is always the last-ditch resort to devaluation, which forces other countries' exporters to pay for US economic distress. It's probably the nearest thing to a 'free lunch' in global economics.

Oil pricing is just the background to a wider issue. The Bank of China and the Russian Central Bank are both rumoured to be waiting for the best moment to increase the holdings of euros. Only 5 per cent of Chinese reserves are held in euros, but more than 20 per cent of its trade is with Europe. Middle Eastern states hold $700bn of US assets, but comparatively little in Europe.

Always knew that Saudi owned America

[Busyman]

A Mr S Hussein I believe Although Iran will be a harder nut to crack.

The US worry is that other states will follow suit and the US will face inflationary pressures on fuel because the price will be determined by the US exchange rate to other currencies (although this could also work in the US's favour, it does take an element of control away). On the plus side such a move might be the final push needed to make US go cold turkey on oil.

Iraq moved to Euro's in 2000...

Iran is talking about it in 2005-06.... hmm, guess who the next bad guy in the Middle East is, makes you think.

This time though, the Russians are also talking to the Germans about it and..

Last year, in a little noticed Opec speech to a Spanish Finance Ministry conference, Javad Yarjani, a senior Iranian oil diplomat, said: 'It is quite possible that as bilateral trade increases between the Middle East and the European Union, it could be feasible to price oil in euros. This would foster further ties between these trading blocs by increasing commercial exchange, and by helping attract much-needed European investment in the Middle East.'

.... Iranian, but speaking for OPEC.

No wonder Bush is shitting himself over Iran and fauns over Saudi atm... Iraq by itself was limited due to "Oil for Food".

The oil-dollar nexus is one of the foundations of the world economy that inevitably filters through to geopolitics. Recycling so-called petrodollars, the proceeds of these high oil prices, has helped the United States run its colossal trade deficits. But the past year has seen the quiet emergence of the 'petroeuro'.

Effectively, the normal standards of economics have not applied to the US, because of the international role of the dollar. Some $3 trillion (£1,880 billion) are in circulation around the world helping the US to run virtually permanent trade deficits. Two-thirds of world trade is dollar-denominated. Two-thirds of central banks' official foreign exchange reserves are also dollar-denominated.

Dollarisation of the oil markets is one of the key drivers for this, alongside, in recent years, the performance of the US economy. The majority of countries that require oil imports require dollars to pay for their fuel. Oil exporters similarly hold, as their currency reserve, billions in the currency in which they are paid. Investing these petrodollars straight back into the US economy is possible at zero currency risk.

So the US can carry on printing money - effectively IOUs - to fund tax cuts, increased military spending, and consumer spending on imports without fear of inflation or that these loans will be called in. As keeper of the global currency there is always the last-ditch resort to devaluation, which forces other countries' exporters to pay for US economic distress. It's probably the nearest thing to a 'free lunch' in global economics.

Oil pricing is just the background to a wider issue. The Bank of China and the Russian Central Bank are both rumoured to be waiting for the best moment to increase the holdings of euros. Only 5 per cent of Chinese reserves are held in euros, but more than 20 per cent of its trade is with Europe. Middle Eastern states hold $700bn of US assets, but comparatively little in Europe.

Always knew that Saudi owned America

Good info, Rat.

You know what, I almost hope Iran does go to the Euro and force a change in America.

Iran and Iraq are different animals in the who's more dangerous department, however.

I felt Saddam should have been left alone. Can't say the same about Iran.

If Bush was smart, he'd have let them play each other out possibly.

I'm not getting an E85 Flex-Fuel vehicle yet.
For America to switch to something else, the product needs to be non-oil based and have AT LEAST THE SAME FUEL ECONOMY.

Perhaps Americans jumped on board quick enough, the price would drop. Who knows? Greedy executives might see the chance to gouge even more.
If they were smart they'd see that the volume would outweigh them overcharging "per barrel".

[vidcc]

I'm not getting an E85 Flex-Fuel vehicle yet.
For America to switch to something else, the product needs to be non-oil based and have AT LEAST THE SAME FUEL ECONOMY.

Is it possible to have worse fuel economy than our present engines

[twisterX]

car makers are just so stupid for making hybrids. It still uses oil and electricity. Just less. Why not move onto a new thing such as hydrogen and fuel cells.

[Busyman]

car makers are just so stupid for making hybrids. It still uses oil and electricity. Just less. Why not move onto a new thing such as hydrogen and fuel cells.

They are already doing it.

I watched where a guy put a cup at the exhaust and drank the water.

Folks are just moving slow, trying to milk any new technology advancement they can.

Hybrids are not stupid. A car that gets 60mpg versus 20 has better fuel economy.

[Busyman]

I'm not getting an E85 Flex-Fuel vehicle yet.
For America to switch to something else, the product needs to be non-oil based and have AT LEAST THE SAME FUEL ECONOMY.

Is it possible to have worse fuel economy than our present engines

Of course. It seems the only purpose of ethanol is to NOT use oil.

[zapjb]

The prez & the legislative & judicial branches of the US government need to declare for the security of the nation. That all patents enabling current vehicles to get vastly more MPG are null & void. And declare that they be used on new cars & retrofitted on old cars. That would cut oil consumption at least by half.

[j2k4]

The prez & the legislative & judicial branches of the US government need to declare for the security of the nation. That all patents enabling current vehicles to get vastly more MPG are null & void. And declare that they be used on new cars & retrofitted on old cars. That would cut oil consumption at least by half.

What would be the sense?

The current fear is that political pressures and global economics will push the price of all petroleum products to the point they are not widely affordable.

The impact is strictly economic; the various effects stem from that singular fact, correct?

Now, if you impose all the strictures you've outlined, you will create an even greater financial hardship on individuals and businesses, as well as depressing the general economy.

On the other hand, the prospect of profit will provide sufficient impetus for entrepeneurial-types to develop alternatives, and the changeover will be quite a bit easier to manage for everyone.

It won't happen over night, and that is something you should be thankful for.

[zapjb]

The prez & the legislative & judicial branches of the US government need to declare for the security of the nation. That all patents enabling current vehicles to get vastly more MPG are null & void. And declare that they be used on new cars & retrofitted on old cars. That would cut oil consumption at least by half.

What would be the sense?.....