Quote:
Originally Posted by RawAlex
The biggest issue is that too many things are transacted in US dollars. Much of the issue of rising oil prices has as much to do with the US dollar going into the shitter as anything else. Oil futures are actually a weird sort of hedge against further currency drops at this point.
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The possibility of a change from "petro-dollars" to another currency base is more than serious - and suspect that's why there is an element of moderation among OPEC member counties - and, least at the moment they officially claim that is not a subject for discussion. The effect on the US economy would be a disaster within a year (some equate it to being equivalent to the status of Agentina at the time of it's worst economic scenario) and it sure causes major financial ripples internationally.
At the same time, (can't remember which countries) - a few have actually constructed their "oil exchange" buildings (at substantial cost) - and these are currently sitting empty. So, kinda makes you wonder what the "real thinking" of OPEC really is.... If the dollar keeps sliding, only a gutty guess, but can see that could become more of a possibility.