just in in-tray, about non-usd denominated oil trade idea
i wonder what the point of this is supposed to be, political grandstanding aside. every OPEC member that does not wish to hold dollars, can use its dollars to buy other currencies at any time after all.
of course, if international oil trading were base currency-wise denominated in e.g. the rouble instead of the dollar, the US (and every other oil importer) would have to first buy roubles before buying oil. the effect on fx markets would be exactly the same if oil exporters were to convert the dollars they currently receive intoroubles.
what currency the oil trade is denominated in is ultimately a question of convenience, and Hugo Chavez' ideas on that will make little difference.
... to which i responded
"not entirely grandstanding
the vast majority of usd denominated trade clears through new york
and for the politically sensitive nations, entities, and individuals, they may wish for less rather than more engagement with the usa, and there for the usd
there are enough instances, just under the radar, of usa courts being used by foreigners and domestics alike, to put hold/clop payments cleared through the usa, making full use of the no longer functional usa laws
i.e. party a delivers to party b using party c ship; creditor party d decides to make use of usa law and nyc clearing channel to put hold on party b's payment to parties a and c, jamming up the works just for the leverage of the mess, fully understanding that a legal fight would be long and dragged out; party a and c puts pressure on party b, and gets scared to death themselves; party b capitulates without a fight, pays party d out of other monies, whether or not party d deserves such or not
and instances where any tom dick and harry, including uncle tom usa, can make claim of anti-terrorism, anti-proliferation, anti-whatever, and jam up nations and companies on some black or blue or red lists, and jam up anyone dealing with such, directly or indirectly, via lock on nyc clearing function for usd
some trades now clear via hkd in hk, because the people of the world are fed up
so, off with hegemon, down with usd, give them to me, and power to the people
platinum is individuality, silver sovereignty, and gold freedom" |
