GoFuckYourself.com - Adult Webmaster Forum - View Single Post - How high does gas how to go before the government has to subsidize it at the pump?

cognitos · 06-11-2008, 08:04 PM

If you sell something that everyone wants, then the price will go up. Simple economics.

The biggest threat to the US consumer is not the market price of oil -- but the currency used to purchase it. If Iran were to change all of it's oil sales to the Euro, which they may well do -- then the devaluation of the USD would be quite large. If Venezuela were to do the same, it would be good night Vienna for the greenback. The only reason the dollar is kept at it's artificially high level is because there is such demand for it for petro chemical transactions. Iran made $70Bn in oil sales from March 07 to March 08. Venezuela's sales wer in the region of $100Bn. Remove the need for about $170Bn USD from the global money markets, and you will start to see super-inflation in the US, coupled with a devaluation of the USD. The cost of a gallon of oil would go up even further. As more countries needed more USD to buy oil, they would change to the Euro which would compound the problem creating even further devaluation and higher inflation.

Much of the above explains why American governments are so keen to have the governments of Iran and Venezuela removed. The last straw for Saddam in Iraq was his decision to change oil exports to the Euro. It is better to have total chaos and endless war in Baghdad, Tehran, Caracas than to lose the petro dollar.

06-11-2008, 08:04 PM
cognitos Confirmed User Join Date: Jun 2006 Posts: 99	If you sell something that everyone wants, then the price will go up. Simple economics. The biggest threat to the US consumer is not the market price of oil -- but the currency used to purchase it. If Iran were to change all of it's oil sales to the Euro, which they may well do -- then the devaluation of the USD would be quite large. If Venezuela were to do the same, it would be good night Vienna for the greenback. The only reason the dollar is kept at it's artificially high level is because there is such demand for it for petro chemical transactions. Iran made $70Bn in oil sales from March 07 to March 08. Venezuela's sales wer in the region of $100Bn. Remove the need for about $170Bn USD from the global money markets, and you will start to see super-inflation in the US, coupled with a devaluation of the USD. The cost of a gallon of oil would go up even further. As more countries needed more USD to buy oil, they would change to the Euro which would compound the problem creating even further devaluation and higher inflation. Much of the above explains why American governments are so keen to have the governments of Iran and Venezuela removed. The last straw for Saddam in Iraq was his decision to change oil exports to the Euro. It is better to have total chaos and endless war in Baghdad, Tehran, Caracas than to lose the petro dollar.