Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (71351)	11/19/2007 3:09:05 PM
From: sea_biscuit	Read Replies (1) of 116555

" Some OPEC members have said they will consider increasing transactions in euros. The dollar has fallen almost 15 percent against the euro in the past 12 months." My Comment: The key word in that sentence is "increase". There is the smoking gun I have been waiting for a long time. Oil transactions are already taking place in Euros. That is proof that oil does not have to be priced in Euros to trade in Euros. This of course is perfectly logical since gold is priced in dollars but trades in every major currency, but for some reason oil conspiracy advocates have been demanding proof. There it is. It is no smoking gun, nor does it "prove" your case in any way, shape or form. If anything, it shows what happens to the US dollar if oil is priced in any other currency! The comparison with gold does not make sense since no country has set aside money(at least, not yet!) to buy gold whereas all oil-consuming countries have set up reserves to hold the money to buy oil in the coming weeks, months and years.

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