Who benefits from high oil prices?

[surada]

No...not at all.
American oil (WTI) is sold for dollars...but the USA isn't exactly Europe.

The rest of OPEC uses Euros as a medium of exchange... because otherwise it strengthens the dollar too much making American goods too expensive. The conversion rate might seem automatic by the international banking industry...but the exchange with the Middle East is in Euros.

You might not remember when Bush (basically all of America) was in a trade war with the EU and using currencies as the proxy for this. But Bush Jr knew where the bones were buried in the middle east.

Now the former presidents meeting informally with Saudis and etc....not really a well known and highly publicized event but take it for a fact. Politicians are liars and self serving.

How could Bush know where the bones were buried in the ME? You mean Papa Bush? Dubya didn't know anything about the ME.

 

[Toddsterpatriot]

and?

And they can buy in Euros if they want.

 

[rupol2000]

..but the USA isn't exactly Europe

I would say that this is not Europe at all.

The rest of OPEC uses Euros as a medium of exchange

Where did you get this?

 

[pknopp]

There wasn't a glut of oil back then.. The glut came after the ppb went up and US oil invested in rigs, exploration and drilling.

We had full tankers with nowhere to go.

 

[rupol2000]

where the bones were buried in the ME

What are you talking about?

 

[surada]

We had full tankers with nowhere to go.

The US? I know 1/2 of Iran's tanker fleet was parked for crude storage.

 

[surada]

What are you talking about?

I don't know what he meant by that.

 

[rupol2000]

I don't know what he meant by that.

What should Bush know about Saudi trade? Are these some secret deals?

 

[pknopp]

The US? I know 1/2 of Iran's tanker fleet was parked for crude storage.

The world.

 

[surada]

What should Bush know about Saudi trade? Are these some secret deals?

Wasn't my claim.

 

[rupol2000]

Wasn't my claim.

I mean this: "How could Bush know where the bones were buried in the ME?"
Is this not about Saudi Arabia?
What should Bush know about?

 

[JohnDB]

"is" or "was"? Europe refused dollar as reserve currency since the end of Brettonwood system

Still is...
There is no other commodity usable as a reserve currency other than precious metals...but those are usually too volatile to use as a reserve deposit.

Before the invention of the Euro the BPS was used a lot as the international medium of exchange. But that's going back a bunch of years.

 

[JohnDB]

How could Bush know where the bones were buried in the ME? You mean Papa Bush? Dubya didn't know anything about the ME.

Daddy told him....you know the former CIA chief turned Reagan's VP....

If only I could invent such stories.

 

[rupol2000]

Still is...

Where did you get this information?

 

[rupol2000]

Still is...

Let's clarify. During the Bretton Woods system, European currencies were directly backed by the dollar, just as currencies were backed by gold before. Are you saying that now the euro cannot be printed if Europe has no dollars to cover?

 

[JohnDB]

Where did you get this information?

I invest in oil... actually midstream currently but this isn't exactly secret information.

And because I invest in commodities I have to know these things or else I can lose my butt. I'm trying to think....

Maybe try Investopedia. They might have some of this. Some of this I just lived through. (I'm a crusty grumpy old man)

 

[JohnDB]

Let's clarify. During the Bretton Woods system, European currencies were directly backed by the dollar, just as currencies were backed by gold before. Are you saying that now the euro cannot be printed if Europe has no dollars to cover?

No...the Euro is a currency of its own and controlled by a central banking system...and largely supported by the strength of the German Mark and the German economy... especially since the UK had Brexit...
Countries like Greece which has borrowed without restraint and can't pay back what they have borrowed from the central bank is killing the currency. But all the countries in the Euro zone have done a bunch of that.

 

[rupol2000]

No...the Euro is a currency of its own and controlled by a central banking system...and largely supported by the strength of the German Mark and the German economy... especially since the UK had Brexit...
Countries like Greece which has borrowed without restraint and can't pay back what they have borrowed from the central bank is killing the currency. But all the countries in the Euro zone have done a bunch of that.

Then what reserve currency are you talking about? The reserve currency is that currency which is cover the local currency. The reserve currency inflow determines the monetary base of the dependent currency. In other words, it is the same as gold in the gold standard for fractional reserve. This is now only true for dependent export economies.

 

[JohnDB]

Then what reserve currency are you talking about? The reserve currency is that currency which is cover the local currency. The reserve currency inflow determines the monetary base of the dependent currency. In other words, it is the same as gold in the gold standard for fractional reserve. This is now only true for dependent export economies.

Look at Investopedia... maybe Wikipedia.

 

[rupol2000]

Look at Investopedia... maybe Wikipedia.

I think that you are making frivolous assumptions. It is better to look at financial information on financial resources, and not on "pedias", especially if your money is at stake.
The dollar has not been a reserve currency for Europe since the inception of the European monetary system, which is why it was created to overthrow the power of the United States.