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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: kingfisher who wrote (155536)	8/16/2011 1:26:42 PM
From: ChanceIs	1 Recommendation Read Replies (2) \| Respond to of 206183

>>>Do you foresee a time when Saudi Arabia and other middle east countries will give up on fiat money and barter oil for.....<<< Absolutely. As you pointed out it has already started. A few other instances: 1) Saddam was doing it (oil for whatever barter) post GWI. That may be why "W" invaded. 2) Check me, but I think that Iran launched an oil bourse maybe six months ago. 3) I think that SDRs have already been called into existence. SDRs are "Special Drawing Rights." I don't understand them well. They might be issued by the Bank of International Settlements, or maybe the World Bank. I am of the opinion that an SDR is similar to a basket of the leading currencies - ergo a currency unto itself. 4) It might be done in gold, but that is difficult to handle - is not liquid. Some who take gold for oil will be likely to "hoard" the gold afterwards instead of keeping it in "circulation." 5) I think that you will see a lot of transactions in rubles, and renminbi (Yuans?). Maybe Deutshe-marks. Swiss francs would be a good choice, but they are exceedingly volatile right now - through no fault of their own. (IOW right now, Swiss francs are not a store of value or unit of account - see below.) Certainly not Euros. ;-) What is money? It is: 1) a means of exchange, 2) a unit of account, and 3) a store of value. It isn't clear to me that if you have those three things, then you have money - but I think that it is necessarily true. See Ron Paul interrogating Ben Bernanke WRT gold. How many nuclear fuels rods can Iran accept in exchange for oil? After a while it gets to be the case that they don't have more immediate domestic needs and go searching for a mechanism to buy condos in Miami.