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THE Petrodollar Thread (merged)

Discussions about the economic and financial ramifications of PEAK OIL

Re: Why the US is at War--The Petrodollar

Unread postby Specop_007 » Sun 04 Sep 2005, 04:11:21

$this->bbcode_second_pass_quote('I_Like_Plants', 'B')eautiful post. Very good explanation of the system, we hate the game of dodgeball but we are required to play, and we don't get to choose our side....

Not true.
You do get to choose your side. In fact, you've already chosen!
Do you live in America?
Do you use dollars?
Do you enjoy all that America has to offer?

You've chosen. This righteous "Oh not me" attitude it bullshit. If someone truly doesnt believe in or support what America is doing, then leave. Simple as that.

And just so people dont think Spec is the hypocrit, he has looked into moving because he's tired of Gestapo gun laws.
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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Sun 04 Sep 2005, 04:49:26

$this->bbcode_second_pass_quote('Specop_007', '')$this->bbcode_second_pass_quote('deconstructionist', '
')I will be the first to tell you that this war is bullshit, we should not be there, war in general is wrong, violence is wrong. But trust me the devaluation of currency as I described in Russia above will happen in the US as well if we don't defend the "petrodollar."


Specop loves hypocrits. They parade around, so bold, so daring, so proper and forward thinking.
Then they leave the stage and go on to do all those things they speak out against.

Specop wonders, you ARE living the American Dream with Euro's right? Nope, no dollars to your name correct?

i was born into this system and didn't realize how deep the rabit hole goes until i was too deep into it to just unplug. as much as i and others hate this war, we need it to sustain our way of life and i just don't think people realize that.

yes i am a hypocrite. anyone who criticizes the system as deeply and fundamentally as I do and still participates in it is a hypocrite. i think the statement of mine that you quoted is an outright admission of that hypocricy. but things are not quite so black and white when you live in the 1st person. i can't expect Specop to understand that.

i need to survive. i need to eat food. i cannot afford to buy land and provide for myself and my family. my wife and i have considered leaving this country but we are not willing to leave our family and friends and loved ones and go to europe or somewhere else. i also cannot predict the future nor was i telling anyone how to live--just stating my observations as to why the US is at war.

i am doing what i can to consume less and to leave a small footprint upon the earth (walking or biking, instead of driving when possible, will be investing in biodiesel transportation, i put my money in the local economy, don't ever shop at chain stores, i buy local food, etc). but i have little choice but to participate in the system to some extent. maybe you live on an intentional community somewhere and live a nice sustainable life in the 3rd person, but i live in the 1st person. and in the 1st person, one has responsibilities... there are different factors pulling on them in different directions, it is not always possible to act in ways which one believes to be absolutely morally correct. it would be nice if this were the case but unfortunately this thing called reality exists and we all must deal with it in the 1st person--except Specop.
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Re: Why the US is at War--The Petrodollar

Unread postby I_Like_Plants » Sun 04 Sep 2005, 04:55:55

I live here, was born here, and am not about to leave here. Rather than cut and run I will defend my country and my state from the immigrant invasion, and will hope and pray and WORK for my country to be self-sufficient so it does not need foreign wars. I pray for a modern day Henry Ford or Charles Lindburgh in office, and until then vote for the biggest right-wing mofos I can.

Where do you think you're going to go for more free gun laws? The US is the last hope for that freedom, unless you want to go to Africa or S. America where it's just a free for all, sure you're free to own a gun but there's nothing worth fighting for.

And in the comment about not getting to choose your side, I mean that I am a white American. That means, as you pointed out, I may admire Huga Chavez, but however much he's helping 'his' people, poor whites are not those people and I'd likely get the firing squad in his country no matter how much I admired him - I've got this white uniform on, you see.

The war sux and is stupid, but the situation with the petrodollar is a real one, I came to the conclusion the OP mentions 2 years ago, because oil is traded in petrodollars, we could experience a HARD step down if OPEC starts trading oil in say, Euros. Since my interest is in our downscaling being gradual and smooth, I have to be against this.

The OP's post is interesting in that, I didn't know the "petrodollar" was created that recently. Apparently it came into being in the early 70s which is pretty recent. The cabal running things on a world scale setting that up needs to hang, but meanwhile I'd rather see a gradual demand destruction and "swearing off of" foreign oil than a sudden dollar crash.

And frankly my concern about the Iraq war is for our boys from Iowa and Kentucky and the rest of red-state America, I want to see them get home safe and ASAP, and I don't want to see the war gear up into a true war against world Islam - there's more than one way to beat 'em and one way is to not give 'em anything to push against. Right now we're giving them something to push against. I honestly don't care how many Iraquis are wasted, I care about our guys and I care about the Israeli control over the US ending.

This can all be accomplished by a people's movement back to the land and the values of the land, and oil demand destruction so wars for foreign oil are no longer necessary, massive US support of Israel no longer necessary, a freer, less indebted US populace getting back more to the Jacksonian ideal, and the US becoming a constitutional republic again, with citizens, not subjects as presently.

So if you have a problem with that, fcuk you that's your problem.
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Re: Why the US is at War--The Petrodollar

Unread postby Specop_007 » Sun 04 Sep 2005, 05:55:44

$this->bbcode_second_pass_quote('deconstructionist', '')$this->bbcode_second_pass_quote('Specop_007', '')$this->bbcode_second_pass_quote('deconstructionist', '
')I will be the first to tell you that this war is bullshit, we should not be there, war in general is wrong, violence is wrong. But trust me the devaluation of currency as I described in Russia above will happen in the US as well if we don't defend the "petrodollar."


Specop loves hypocrits. They parade around, so bold, so daring, so proper and forward thinking.
Then they leave the stage and go on to do all those things they speak out against.

Specop wonders, you ARE living the American Dream with Euro's right? Nope, no dollars to your name correct?

i was born into this system and didn't realize how deep the rabit hole goes until i was too deep into it to just unplug. as much as i and others hate this war, we need it to sustain our way of life and i just don't think people realize that.

yes i am a hypocrite. anyone who criticizes the system as deeply and fundamentally as I do and still participates in it is a hypocrite. i think the statement of mine that you quoted is an outright admission of that hypocricy. but things are not quite so black and white when you live in the 1st person. i can't expect Specop to understand that.

i need to survive. i need to eat food. i cannot afford to buy land and provide for myself and my family. my wife and i have considered leaving this country but we are not willing to leave our family and friends and loved ones and go to europe or somewhere else. i also cannot predict the future nor was i telling anyone how to live--just stating my observations as to why the US is at war.

i am doing what i can to consume less and to leave a small footprint upon the earth (walking or biking, instead of driving when possible, will be investing in biodiesel transportation, i put my money in the local economy, don't ever shop at chain stores, i buy local food, etc). but i have little choice but to participate in the system to some extent. maybe you live on an intentional community somewhere and live a nice sustainable life in the 3rd person, but i live in the 1st person. and in the 1st person, one has responsibilities... there are different factors pulling on them in different directions, it is not always possible to act in ways which one believes to be absolutely morally correct. it would be nice if this were the case but unfortunately this thing called reality exists and we all must deal with it in the 1st person--except Specop.


Specop thinks your a good man. Takes one of fortitude and spine to fess up like that.
Spec may not see eye to eye with you an anything, but damned if you dont have his respect nonetheless. 8)

On a side note....Your welcome here in 3rd person land with Spec any ole time. :P
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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Sun 04 Sep 2005, 12:04:27

$this->bbcode_second_pass_quote('I_Like_Plants', 'I') live here, was born here, and am not about to leave here. Rather than cut and run I will defend my country and my state from the immigrant invasion, and will hope and pray and WORK for my country to be self-sufficient so it does not need foreign wars. I pray for a modern day Henry Ford or Charles Lindburgh in office, and until then vote for the biggest right-wing mofos I can.

Where do you think you're going to go for more free gun laws? The US is the last hope for that freedom, unless you want to go to Africa or S. America where it's just a free for all, sure you're free to own a gun but there's nothing worth fighting for.

And in the comment about not getting to choose your side, I mean that I am a white American. That means, as you pointed out, I may admire Huga Chavez, but however much he's helping 'his' people, poor whites are not those people and I'd likely get the firing squad in his country no matter how much I admired him - I've got this white uniform on, you see.

The war sux and is stupid, but the situation with the petrodollar is a real one, I came to the conclusion the OP mentions 2 years ago, because oil is traded in petrodollars, we could experience a HARD step down if OPEC starts trading oil in say, Euros. Since my interest is in our downscaling being gradual and smooth, I have to be against this.

The OP's post is interesting in that, I didn't know the "petrodollar" was created that recently. Apparently it came into being in the early 70s which is pretty recent. The cabal running things on a world scale setting that up needs to hang, but meanwhile I'd rather see a gradual demand destruction and "swearing off of" foreign oil than a sudden dollar crash.

And frankly my concern about the Iraq war is for our boys from Iowa and Kentucky and the rest of red-state America, I want to see them get home safe and ASAP, and I don't want to see the war gear up into a true war against world Islam - there's more than one way to beat 'em and one way is to not give 'em anything to push against. Right now we're giving them something to push against. I honestly don't care how many Iraquis are wasted, I care about our guys and I care about the Israeli control over the US ending.

This can all be accomplished by a people's movement back to the land and the values of the land, and oil demand destruction so wars for foreign oil are no longer necessary, massive US support of Israel no longer necessary, a freer, less indebted US populace getting back more to the Jacksonian ideal, and the US becoming a constitutional republic again, with citizens, not subjects as presently.

So if you have a problem with that, fcuk you that's your problem.

ironic to me that we agree on this issue, as i am the biggest left-wing-commie-pinko bastard you are likely to meet. i am non-violent. i detest guns. i value ALL human life equally--i don't believe white america has any greater right to a high standard of living than anyone else and i think it's just as great of a tragedy when an Iraqi soldier or civilian dies than when an american dies--be that american black, white, green or purple... life is life no matter what color the skin and it is all equally valuable.

i think this serves to illustrate that this issue transcends politics or social scripts. I_Like_Plants and I could probably argue tooth and nail for days until he got so fed up that he shot me--but we see eye to eye on why we are at war because we don't buy into the spoonfed bullshit you read in the news. we understand the real issues underneath.
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Re: Why the US is at War--The Petrodollar

Unread postby Kingcoal » Sun 04 Sep 2005, 12:28:22

Buying oil with Euros is easy. The price is denominated in dollars, so you simply take the dollar/Euro exchange rate and figure out how much you have to pay. At $72 per barrel, you'll need about 55 Euros to buy that barrel (at $1.30 per Euro.) Because of the cheap dollar, oil is expensive for Americans and not as expensive for countries with favorable exchange rates. Where is the harm in that? Where is the American conspiracy?

This issue has been debated ad infinitum on this site over the past year. Read up on those posts.
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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Sun 04 Sep 2005, 12:43:45

$this->bbcode_second_pass_quote('Kingcoal', 'B')uying oil with Euros is easy. The price is denominated in dollars, so you simply take the dollar/Euro exchange rate and figure out how much you have to pay. At $72 per barrel, you'll need about 55 Euros to buy that barrel (at $1.30 per Euro.) Because of the cheap dollar, oil is expensive for Americans and not as expensive for countries with favorable exchange rates. Where is the harm in that? Where is the American conspiracy?

This issue has been debated ad infinitum on this site over the past year. Read up on those posts.

because those Euros must be traded for dollars before the oil can be purchased...
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Re: Why the US is at War--The Petrodollar

Unread postby Kingcoal » Sun 04 Sep 2005, 13:12:02

$this->bbcode_second_pass_quote('deconstructionist', 'b')ecause those Euros must be traded for dollars before the oil can be purchased...


And... the Euros most be converted to dollar denominations. Suppose the exchange rate is $5 to Euro. How does that hurt anyone (other than US citizens who bear the brunt of the debt monetization produced inflation.)
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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Sun 04 Sep 2005, 13:58:18

the collapse of the dollar would hurt americans more than anyone else, no doubt. but as for how it hurts people other than americans--what's the death toll in iraq?
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Re: Why the US is at War--The Petrodollar

Unread postby alexis » Sun 04 Sep 2005, 14:58:38

$this->bbcode_second_pass_quote('Kingcoal', '')$this->bbcode_second_pass_quote('deconstructionist', 'b')ecause those Euros must be traded for dollars before the oil can be purchased...


And... the Euros most be converted to dollar denominations. Suppose the exchange rate is $5 to Euro. How does that hurt anyone (other than US citizens who bear the brunt of the debt monetization produced inflation.)


The anormal and constant demand for dollars maintains the exchange rate at an unaturaly high level. Thus, the USA is privileged by this high and permanent demand for their currency.
If the oil sellers were immediately using their USD or trading them, then it would not make much difference, but the oil sellers do keep USD to a certain extent.
The use of the USD is an advantage for the USD as long as the USD is seen as a reserve currency which status is linked to the status of oil money.

Nevertheless, this use of USD can be a huge drawback if it switches to other currencies. The reason is that almost each and every country has big USD reserves to buy oil and oil sellers keep their USD because of its status of reserve currency and exclusive oil money.
If this status change, countries won't need USD to trade oil and will progressively reduce their USD stock. A huge inflow of USD will arrive on the currency market, the offer for USD will greatly exceed demand which will collapse the USD.

The use of the USD for oil and the status associated with this use has made the US able to maintain a relatively high exchange rate while creating huge sums of USD. The worldwide stock of USD has reached huge proportions and must be considered as an advance made to the US to be repaid later. Of course, no government will want to see these USD coming back on the currency market because it would crash the USD and the borrowed US hegemony.
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Re: Why the US is at War--The Petrodollar

Unread postby sklump » Sun 04 Sep 2005, 20:42:50

As proud as you are of your currency, which has truly been dominant for the last half-century, nevertheless, it might be prudent to keep a hedge fund of, say, 10000 Euros somewhere nice and handy and dry.

You choose your side, but it's pretty clear to me that those with much more liquidity than any of us are building their lifeboats in Euros. When the moment is ripe, they will leave you holding a bag of worthless paper, like a shopping cart full of 1923 German marks printed on one side. At that point you will not be able to buy anything with them but more worthless currency.

Precious metals may be a hedge too, but opinion is varied.

Best of luck to all of us in these weirdhead times.
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Re: Why the US is at War--The Petrodollar

Unread postby I_Like_Plants » Mon 05 Sep 2005, 04:07:51

Decon we'd probably get along fine! Heck it may not be obvious but I'm the first to think us whities should be willing to bring our "standard of living' WAYY down, I put the quotes since the idea of standard of living as it's measured is such a joke ..... someone who has a working small farm and shoots squirrels for dinner at times and poops in an outhouse but is a part of a stable community, is always fed OK and knows they will be fed OK, is considered to have a shit standard of living, while some urban hampster running in the wheel like crazy, making huge payments on a car and spending 2 hours a day commuting and has the microwave, vcr, dvd player, bigscreen, etc etc etc yadda yadda and never knows if their job will be there when they go to work is considered to have a good standard of living, which makes NO sense.

How did whites live say, 200 years ago? The vast majority of us were hardworking mofos. Look at the Amish, no slackers there. We really need to look at that example, or the example of Karala in India, as our example.

This endless hampster-wheel-running and making the 3rd world run one too to make all this STUFF, heck the creation of the 3rd world in the first place, this is all sick and wrong.
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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Mon 05 Sep 2005, 04:57:35

$this->bbcode_second_pass_quote('I_Like_Plants', 'D')econ we'd probably get along fine! Heck it may not be obvious but I'm the first to think us whities should be willing to bring our "standard of living' WAYY down, I put the quotes since the idea of standard of living as it's measured is such a joke ..... someone who has a working small farm and shoots squirrels for dinner at times and poops in an outhouse but is a part of a stable community, is always fed OK and knows they will be fed OK, is considered to have a shit standard of living, while some urban hampster running in the wheel like crazy, making huge payments on a car and spending 2 hours a day commuting and has the microwave, vcr, dvd player, bigscreen, etc etc etc yadda yadda and never knows if their job will be there when they go to work is considered to have a good standard of living, which makes NO sense.

How did whites live say, 200 years ago? The vast majority of us were hardworking mofos. Look at the Amish, no slackers there. We really need to look at that example, or the example of Karala in India, as our example.

This endless hampster-wheel-running and making the 3rd world run one too to make all this STUFF, heck the creation of the 3rd world in the first place, this is all sick and wrong.

right on brothah! i'm sure we'd have a blast smashing imperialism together!

most EVERYONE in a now industrialized nation lived a lot harder 200 years ago than they did now. 200 years ago, the ruling class owned slaves in public. today the process is dumbed down a bit for the common folk... we americans may enjoy an excellent standard of living but that doesn't mean the quality of our lives is good... give me a hoe, a squirrel gun, an outhouse, and a stable community where i can contribute, eat and be cared for--i am THERE!
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Re: Why the US is at War--The Petrodollar

Unread postby eastbay » Mon 05 Sep 2005, 05:07:45

Interestingly, various polls suggest somewhere around 40 to 50% of Americans think it was and still is a sweet idea to continue the military occupation of Iraq and Afghanistan going indefinitely.

Maybe it's because I live in the San Francisco Bay Area, but I have yet to meet any of them. Seriously. Where are they anyhow? Friends and people I know from all points on the political spectrum, liberal, conservative, socialist and racial nationalists alike all are of a common opinion that this Stupid Oil War is a total waste.

War supporters certainly don't appear around this forum (too much)either. Maybe a poll on this topic right here would have interesting results.
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Re: Why the US is at War--The Petrodollar

Unread postby I_Like_Plants » Mon 05 Sep 2005, 06:16:32

There's a HUGE number of what can only be called Christian Zionists in the US. In fact, as far as I can tell, with the exception of a few offshoots of Christianity, to be a Christian is to be a Zionist and this is what you're raised with and so you don't even question it. I would say that's why.
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Re: Why the US is at War--The Petrodollar

Unread postby Doly » Mon 05 Sep 2005, 11:59:47

What the hell do you call a Christian Zionist?
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Re: Why the US is at War--The Petrodollar

Unread postby julianj » Mon 05 Sep 2005, 13:16:07

Doly: George or Dick, I think.

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Re: Why the US is at War--The Petrodollar

Unread postby deconstructionist » Mon 05 Sep 2005, 14:01:39

$this->bbcode_second_pass_quote('eastbay', 'I')nterestingly, various polls suggest somewhere around 40 to 50% of Americans think it was and still is a sweet idea to continue the military occupation of Iraq and Afghanistan going indefinitely.

Maybe it's because I live in the San Francisco Bay Area, but I have yet to meet any of them. Seriously. Where are they anyhow? Friends and people I know from all points on the political spectrum, liberal, conservative, socialist and racial nationalists alike all are of a common opinion that this Stupid Oil War is a total waste.

War supporters certainly don't appear around this forum (too much)either. Maybe a poll on this topic right here would have interesting results.

yeah i think those poll numbers sound a bit fishy. but then again i'm on the coast too--there are a lot of people in the heartland who i'm sure i would have a tough time relating to. however, my point is that even people like me--non-violent, anti-war, anti-capitalist... i have a lot to lose--this war is somehow mind-bogglingly protecting my interests. it's just not so simple as "the war is wrong" or "the war is right." we may not support the war--but unless you're living on an intentional community and are totally self-sustaining, the war does support us...
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Re: Why the US is at War--The Petrodollar

Unread postby julianj » Mon 05 Sep 2005, 18:19:05

Deconstructionist: I think you are utterly mistaken.

The war in Iraq has cost the US many times what it would have cost to buy oil on the open market, and will quite possibly bankrupt the US. Not to mention the many other negative consequences. The terrible costs, physical, moral, political and economic outweigh any "benefits" there might have been. Please have the courage of your convictions! One of the other negative costs is allowing China and Iran to position themselves ready to dump the dollar....

which segues nicely back on topic:

Does anybody know a US bookstore that ships cheaply to the UK? I've been following Clark's writing with great interest and I want this book but the amazon.com postage seemed a bit steep?

Plus, aren't any of you going to put a user review on amazon, the poor little book hasn't got any and its feeling lonely :)
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Re: Why the US is at War--The Petrodollar

Unread postby eastbay » Mon 05 Sep 2005, 22:55:56

however, my point is that even people like me--non-violent, anti-war, anti-capitalist... i have a lot to lose--this war is somehow mind-bogglingly protecting my interests. it's just not so simple as "the war is wrong" or "the war is right." we may not support the war--but unless you're living on an intentional community and are totally self-sustaining, the war does support us...

Deconstructionist,

First, I enjoy reading your postings here. But I think you're reading the tarot cards wrong here. If the Stupid Oil War was actually securing a steady supply of inexpensive oil for the USA, then I would agree with you about the success of this madness. But it isn't. The cost has blossomed into a blooming insanity which needs to end, like yesterday.

The Iraqi patriots have grown in number and sophistication and will never accept any government stuffed down their throats at gunpoint by the USA. The current Iraqi government controls their desks within the safety of the Green Zone. The US controls the Green Zone itself and the patriots control most of the rest of Iraq, unless a line of US military is driving by.

Oil lines are blown up daily. The oil supply is unpredictable. As the US economy contracts in the coming months, the national will to keep this madness going will wane and then the US will wish it had Saddam back in power again.
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