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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (71351)	11/19/2007 12:26:52 AM
From: marginnayan	Read Replies (4) \| Respond to of 116555

Okay. But it is also possible many countries exporting commodities and/or goods may start asking for payments in Euros instead of US dollars (following the foot steps of OPEC). So that in itself may lead to lower demand for US dollars and create additional negative sentiment for US dollar.

To: mishedlo who wrote (71351)	11/19/2007 6:15:31 AM
From: paul61	Read Replies (1) \| Respond to of 116555

As I was saying -but it did not print. If WE get ready to buy oil and they do not accept US$ - then we have to buy say C$$'s = BUT what if Canada wants more US$'s because they KNOW the value of our money is going down? Or if NO-one wants our money and we have to pay in gold? If it does NOT matter why do the world's govts. want a strong US Dollar? Thanks for a thought provoking article. AND thanks to all for the comments. Paul

To: mishedlo who wrote (71351)	11/19/2007 3:09:05 PM
From: sea_biscuit	Read Replies (1) \| Respond to 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.