Previously, when the price of oil went up, money made by producing countries found its way back into the US economy through investments. This had the effect of keeping US interest rates lower.
But not now.
The petro dollars are staying put, paying off debt or funding their own growth. There's also a fear of US investments.
We may find our interests rates higher then we thought they would be.
Below is an excellent read on the topic:
http://www.morganstanley.com/GEFdata/di ... ml#anchor0
PeakOil is You
New oil dollars not going back to the US
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New oil dollars not going back to the US
by bruin » Tue 29 Nov 2005, 20:52:12
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bruin - Lignite
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Re: New oil dollars not going back to the US
by CB00097 » Wed 30 Nov 2005, 14:20:02
Interesting article....good find.
Matthew.
Matthew.
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CB00097 - Wood
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Re: New oil dollars not going back to the US
by nth » Thu 01 Dec 2005, 15:41:47
This is not bad news at all.
This is very good news.
Middle East is starting to diversify and with this growth many good things are happening to US as a result.
Financial point of view:
US gains more export. Many businesses are profiting from the Middle East boom. The biggest of course is Boeing, so is GE, construction firms, etc.
Security point of view:
With business opportunities prevalent in the Middle East, US will be more secure.
This is very good news.
Middle East is starting to diversify and with this growth many good things are happening to US as a result.
Financial point of view:
US gains more export. Many businesses are profiting from the Middle East boom. The biggest of course is Boeing, so is GE, construction firms, etc.
Security point of view:
With business opportunities prevalent in the Middle East, US will be more secure.
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nth - Heavy Crude
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Re: New oil dollars not going back to the US
by the_red_pill » Thu 01 Dec 2005, 16:21:19
$this->bbcode_second_pass_quote('', '
')This is not bad news at all.
This is very good news.
')This is not bad news at all.
This is very good news.
Bush and his neocon cronies will see this as very bad news. The whole reason we are at war in Iraq was to put in a puppet government that will sell oil to the US in US dollars. Petrodollar recycling has kept the US afloat for many years and now the dollar is being threatened by the euro and actions such as this.
What this made lead to is more US intervention in middle east countries.
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the_red_pill - Peat
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Re: New oil dollars not going back to the US
by nth » Fri 02 Dec 2005, 17:20:54
$this->bbcode_second_pass_quote('the_red_pill', '')$this->bbcode_second_pass_quote('', '
')This is not bad news at all.
This is very good news.
')This is not bad news at all.
This is very good news.
Bush and his neocon cronies will see this as very bad news. The whole reason we are at war in Iraq was to put in a puppet government that will sell oil to the US in US dollars. Petrodollar recycling has kept the US afloat for many years and now the dollar is being threatened by the euro and actions such as this.
What this made lead to is more US intervention in middle east countries.
Huh?
The last I looked, the neocons are making out like bandits!
They all have their wealth more than double since Bush became President.
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nth - Heavy Crude
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