Oil Skyrocketing? No! USD Plummetting!

so just Why is the USD plummeting in relation to oil?


one reason is that OPEC is pegged to the USD
and most every OPEC country is experiencing 10% or greater inflation...

but the USA Treasury/Labor Depts say core inflation & CPI is under 3%
for the last 8 years of the administrations claims & accounting.


the dollar is becoming more worthless because the Federal Reserve has lowered rates to 2% making something of a American version of the Japan 'Carry Trade'... the bailed out investment banks are using the Federal Funds funny money tomake hedge profits on long oil...
instead of making their balance sheets stronger with domestic lending, etc


the USA is pretty much alone in the series of rate cuts, (making money less valuable as a result) as many in the EU are no longer following the US central banks lead.... they are keeping their economies rates steady.


several of the Gulf States Cooperation are in a 6 month process of 'de-pegging' from the USD as of last weeks announcement -> Qatar and UAE Abu Dhabi, are dropping the USD and will be accepting a basket of other currencies as payment for product...Saudi Arabia is at least one year away from a similar 'de-peg'...i think that information finally sank in, and that's why OPEC oil jumped $10.00 barrel [unexpectedly?]



the iraq invasion
the contrived Housing & Credit bubbles
the series of fed rate decreases
the bailout of the banker elites at the expense of taxpayers

have all combined to make the USD worth about 70 cents in relative terms
~and it is expected to decrease to somewhere near 55-65 cents over time~
which translates to a further 10-20% devaluation of the USD overseas


domestically, the US mint(s) have ceased minting the walking liberty silver coin... or at least ceased selling these 1 oz silver coins to their perferred list of distributers across the nation.
I remember when one could go into any bank and exchange your paper bills for intrinstically valuable US coins.
but since then, the coins we use have litttle valuable metals in them, and any minted coins are sold to dealers so they can profit from distribution...
is that soviet, fascist, mutated capitalism or what ??

Originally posted by mOOmOO
I see bargains US companies, and I'm snapping up cheap shares ready to expload then sell them, take my money out of the US oh and I don't pay any US taxes

and on top of that I am shorting a bag load, more profits at the long holders expense

Tax free profits for me

Lubly bargins!




[edit on 8-6-2008 by mOOmOO]

yes, and they wonder why some of us didn't want the social security money going into the stock market.....

the speculators took control of the housing market too.....lovely end result, wouldn't ya say?


[edit on 8-6-2008 by dawnstar]

Originally posted by dawnstar

Originally posted by mOOmOO
I see bargains US companies, and I'm snapping up cheap shares ready to expload then sell them, take my money out of the US oh and I don't pay any US taxes

and on top of that I am shorting a bag load, more profits at the long holders expense

Tax free profits for me

Lubly bargins!




[edit on 8-6-2008 by mOOmOO]

yes, and they wonder why some of us didn't want the social security money going into the stock market.....

the speculators took control of the housing market too.....lovely end result, wouldn't ya say?


[edit on 8-6-2008 by dawnstar]

I see a great time to buy cheap houses too! Great time for us outside of America Great bargains!


Your loss is OUR gain Thanks!


And not forgetting I can profit on the currency markets


Perhaps you should invest wisely and look beyond "American". You should also value your HOUSE as not your BANK, you made a mistake of buying it for PROFIT, you should have bought it to LIVE IN. Everybody says buy a house its a great investment, wrong, its a place to live in, not your bank or "investments" for profit.




[edit on 8-6-2008 by mOOmOO]

Oy VEY! why compare the Dollar to the Euro again? we Americans are not going to europe to spend them! get out of the cave already! we use dollars nothing more. Why not compare the peso to the dollar? we are closer to mexico and gas is cheaper in mexico and our dollar is valued in the entire american continent. when you compare any monetary value to the Euro it's always less. No one can compare with the Euro anymore..not just the dollar.

Originally posted by jedimiller
Oy VEY! why compare the Dollar to the Euro again? we Americans are not going to europe to spend them! get out of the cave already! we use dollars nothing more. Why not compare the peso to the dollar? we are closer to mexico and gas is cheaper in mexico and our dollar is valued in the entire american continent. when you compare any monetary value to the Euro it's always less. No one can compare with the Euro anymore..not just the dollar.

Cheap gas, go to Venezuela.

Why not dump the car and use public transport and or cycle /run to work.

My god, all we hear is American's are in poverty but they need petrol. You got your priorities arse about face.



[edit on 8-6-2008 by mOOmOO]

Actually the Euro is worth more than the dollar right now...

Originally posted by Kruel
Hmmm, nice connection Choronzon, I never looked at it this way. Makes sense though. I wonder what caused the devaluation of the dollar then? Perhaps something to do with the way America has been treating everyone else?

Now that was funny.

If only that were true, we'd just elect Obama and Bam! instant love.
Gas at 1.50
hardy har har, thanks for the laugh today.

Originally posted by Choronzon
I personally find it appalling that the US government is keeping us hoodwinked when it comes to the truth of the price of oil. The price of oil is not increasing as much as we are lead to believe that it is. The value of our national dollar is plummeting like a rock.

A good topic! The dollar is certainly in peril. Since I have not seen any lines at the pumps or stations closing early or rationing, I can only assume the high price is not caused by shortages. I've heard that gas at the pump in England is around $8.00 per gallon in US dollars.

As an interesting related item to this discussion; When I was a teen (early to mid 1960's) I could pull a quarter (90% silver in content) from my pocket and purchase a gallon of gas to put in my '56 Chevy. Today of course we're talking $4.00 for the same gallon of gas. My 90% silver quarter though is worth about $3.20 in today's dollar. In terms of "real money" defiined as silver and gold, inflation has not been so dramatic as in terms of paper money.

Speaking of paper money, which has no backing whatsoever, you must realize the only difference between say a $5 dollar bill and a $50 dollar bill is the arrangement of the ink on the paper. Hard money is "real money".

Im in a hurry right now so ill just post a few vid links explaining value of the USD and the problem ahead.

www.youtube.com...

www.youtube.com...


[edit on 8-6-2008 by mapper]

[edit on 8-6-2008 by mapper]

Originally posted by mOOmOO




I see a great time to buy cheap houses too! Great time for us outside of America

Great bargains!


Your loss is OUR gain

Thanks!


And not forgetting I can profit on the currency markets

Perhaps you should invest wisely and look beyond "American". You should also value your HOUSE as not your BANK, you made a mistake of buying it for PROFIT, you should have bought it to LIVE IN. Everybody says buy a house its a great investment, wrong, its a place to live in, not your bank or "investments" for profit.




[edit on 8-6-2008 by mOOmOO]

sorry, bought our house because our kittie liked it, nice big enclosed porch for her to lie in and soak up the sunbeams. did it at the wrong time really, too, just before the prices started falling. but, well, I would have considered this house to be worth about as much as we paid for it before the housing run, so it will probably hold most of it's value. It's the house down the street I am looking at investing into, a nice little fixer upper, who knows, maybe I'll snatch it if I can get it for what we got on hand...definately ain't worth taking a loan out for.
I'll tell yas now though, our world can't survive an oil bubble, so, maybe this isn't a good area to be speculating in?

ah.. **cough cough**

you're wrong...

well.. you're sought of wrong....

the US has been benifiting from artificially low petrol prices for a decades now, and now that your own supplies are finally dwindling, and your dollar is so poor (due completely to the stupid war) you are feeling the heat

but

i would like to point out that America still pays a lot less per litre than any other country...

a lot less...

so quit your bitchin and get on with it... It is not a government conspicacy.. yes.. it is partially the governments fault, the economy is faltering and they need to take responsibility for it (spending over a trillion dollars and getting no return is not good management)

but the fact remains that in the past decade production of oil and the location of new oil stocks has not kept up with demand, and as a result, gas is going to get more expensive....