what if OPEC leaves Dollar?
 

Dollar is getting a weak coin everyday, what if OPEC (Organization of the Petroleum Exporting Countries) leaves dollar and joins Euro as referrence currency? Chavez and other members are saying this everyday...
what happens?

The Saudi's won't let that happen.

why more and more we wont be the biggest consumers,they have no love for us .They fund terrorism, I think they would enjoy us going into the toilet.

There will all appears as terrorisKs

Why do you think we invaded Iraq - thats exactly what Saddam did - and you see the US response to him swapping to the Euro - Im surprised we havent invaded Qatar yet since they just announced they are switching to the Euro for oil purchases - and more countries in OPEC are definitely leaning that way - the only real hold out is Saudis - but I would think they will eventually bow to the rest of Opec

do you see the Saudis switching to the Euro soon?

what happened right after iraq switched to euro ? what was the first thing the states did after taking Baghdad?

shit will hit the fan, that's what will happen...

saudi arabia wasn't invaded after 9/11

even though all signs pointed to S.A.

this is their favor back to us for not throwing cruise missles

OPEC will not switch out of Dollars overnight for several reasons.

- Most of the OPEC are allies of the US esp the Saudis who control the world's largest oil reserves.
- OPEC countries hold a massive amount of USD. Switching out of the USD would cause a depreciation of the USD thus a depreciation of their own assets.
- US is the world's largest oil "customer".

Exactly why do you think we have these guys investing so much in our country. The Saudis have a hell of a lot of investment in USD and in the US. In return we have a hell of a lot of investment in Saudi Arabia and several of the other key OPEC member's countries.

The USD has been the most stable currency since WW2 which is why it was chosen to be used for defacto oil sales. The USD is taking a hit right now, but it will eventually be back once our economy comes back around.

Iran wants to talk shit because they think they can. If Iran tried to swap oil to EURO's we would be invading or at the very least placing a trade embargo on them.

Not that I support it, but it's what would happen, just look at Iraq for the example.

lets hope it does not happen

Bingo!!!!

Someone is in denial.. what if it DOES happen.. what would be the consequences? I would like to know as well.

Hey hey, how about a barrel of oil at 1.60050 Million Vietnamese Dong?

LOL

i dont think fucking with iran is goin to happen

too many other comuntries lost their oil contracts when the usa went into iraq
thus all the saber rattling

if the us were to invade iran..it will most likely start another global war

that was the purpose of the thread...
How would global Economy will react? How would dollar react?
Whats happens to OIL??

OPEC will not change from petro dollars - at least not in one hit sigurman. That causes severe damage and nobody is playing that game.

It may be they will elect to quit sole reliance in the dollar at some point and spread the risk, but that will not happen overnight. If the dollar improves, doubt OPEC have any motivation for change, but if it continues to be unstable - it raises the chance of change.

The usual US bs over "invasions" is just that - and pointless. The idea OPEC "hates" the US is too absurd - there are far bigger issues at stake.

Yep. And they might earn huge $, when new president will be elected and things would go better, no more HUGE deficit for spreading democracy ;D SO money they have accumulated with high barrel/dollar will have more value then.

If the dollar keeps tanking and the price of oil falls. However, if the Saudis are still able to offset the dollar's fall by flushing the money back into oil futures/petrospeculation then the Saudis can hang on for a while..... It won't be forever though.

europe wouldn't let that happen.

fact is, part of the reason the dollar is weak is because it is the currency oil is traded on and the euro couldn't take a hit like that.

if they do switch

Friday, November 23, 2007

100 Euro = 148.490 US Dollar

we will be paying 148.490 US Dollar per barrel .........

get the lube

now that's some crazee maths right there!

Problem is zabijaq, OPEC are not earning more dollars for oil. The 'real' price of oil is around $50-$60/barrel and the $97ish level is due to hedging and market speculation. It's almost assured that every time the dollar depreciates in value, the price of oil will increase, partly because investors are looking for a more stable investment area (or one where they are not going to lose billions).

Sure, the core underlying problem is debt and prob little chance of reducing that level of debt over a short timescale. Others have played their role in the debt problem - predatory banks, lack of fiscal control and people being encouraged to take mortgages which they could not maintain. Many of these mortgagees are prob 'innocent' and just wanted a home - many are paying their mortgages but on a depreciating asset. It's unfortunate that they will prob suffer more than anyone.

2008 is likely to be an awesome bad year in economic terms with ripples, not just in the US, but globally. The US economy is going to be under severe pressure with higher costs and increased credit crunch effects. All bad news and no signs whatsoever of a ray of hope.

o please its not about who they like the most, its all about the money... naive statement

:1orglaugh:1orglaugh:1orglaugh

I love GFY ...

How do so many people miss the point that in doing so, all the countries that have massive amounts of USD's and USD investments would be depreciating their assets beyond belief?

Sure... it's just the same as a bank terminating all relationships with a corp heading for insolvency. They prefer to cut their loses before losing even more.

The reality is it is not a corp but a country, and it's not just about money when shit hits the fan and any country will be supported to a basic level.

OPEC countries have no desire to lose money, nor do they have a desire to inflict damage globally because of the problems of one country. At the same time, they have been very tolerant of dollar fluctuations and some members obviously are considering change. That may come, at least initially, in the form of a dual petro-currency where there is not total reliance on the dollar - tho hard to see that happening in the near future, but they have learned a lesson from recent times and doubt that lesson will be forgotten.

Bottom line - sure there are trillions going to be lost, but that is nothing in relation to the current debts of the US - it's a matter of when ya decide to cut your losses, but suspect OPEC will stay with the US dollar, at least for the foreseeable future, and other OPEC members may go their own way on oil currencies.

I agree with you but I feel we are seeing a gradual change at the moment

Yea :disgust I could see Russia and China getting very angry considering their investments in Iran oil.

If these countries started selling their US assets I'd start to get very concerned. Asian countries sold over $50 billions worth of US bonds and other investments over a month ago which weakened the dollar, a few other countries have already discussed unpegging their currency from the dollar, and some OPEC countries have discussed selling oil in other currencies, I find this alarming.

I see the dollar declining against all major currencies for at least another 1 or 2 years, in the mean time it will be interesting to see what other countries are doing with their US investments.

Yea I see a slow and gradual change and the dollar will continue to devalue.

the dollar is a joke mane ... but I am guessing when Bush is gone it's going to climb again

Knock on wood my nigga!

I think most of the arab states would be shooting themselves in the foot since according to michael moore they have invested a lot of their money into dollars?