T Nation

Petro-Euros


#1

Iran moves to ditch U.S. dollar

[i]WASHINGTON, Sept. 10 (UPI) -- Faced with U.S. economic sanctions and a weak dollar, Tehran is demanding foreign energy companies do business in yen and euros, despite increasingly desperate need for investment.

In a deal announced last week, Japan�??s Nippon Oil agreed to buy oil from Iran using yen instead of the traditional U.S. dollars. The agreement comes after years of Iranian efforts to shift its petroleum exports away from dollars and toward yen and euros.[/i]

Suck on that, Wall Street!


#2

Hell yea!!! Go fuck yourself Iran. You bunch of hillbilly, backward ass, woman beating motherfuckers. Please do not dishonor the dollar by doing business with it using your filthy hands.


#3

That's the spirit.


#4

Yea! We'll steal YOUR oil wells (you and those evil Brits) and sell YOUR oil but for yen or Euros, cause now its OUR oil!

Hahahaha!! Its true we're a bunch of fucking goatherds and tribes who thought oil was a fucking curse from Allah for not beating our women enough or murdering enough infidels. We're too goddamned stupid to develop oil fields ourselves but THANK YOU VERY MUCH you oil companies for developing wealth for us bandit chiefs and swarming mobs.

Signed,
The Wonderful People of Iran


#5

Oh come on, even I know that Iran is more than a country of goatherds. That's just stupid.


#6

Now only if they would stop counterfeiting it.


#7

The Iranians or the Fed?

The latter is doing far more damage you know?


#8

That is bad news for Europe.


#9

I'll remind you all that Saddam ditching the Dollar for the Euro was one of the main reasons the invasion of Iraq took place.


#10

When the oil fields were 'nationalized' (stolen), they should have blown them up, so the scum couldn't use 'em.


#11

Your reaching, agian.


#12

Yeah but you gotta admit, we didn't like that much because our dollar isn't really based on anything significant. At least oil is traded in dollars. If it was switched to Euros there would be no demand for dollars at all. That would wreak havoc over finacial markets by artificially increasing money supply.

Do you think our government might go to certain lengths to protect the dollar considering we have a central planning agency that already attempts to do this?


#13

I consider it a symbolic move. It's all symantecs. All the transactions being mostly paperless anyway adds just one more step of conversion. No big deal.


#14

I love you!


#15

Do you have any clue as to how the foriegn exchange markets work?


#16

Wouldn't that be better in a PM there, big guy? ;D


#17

Sorry, I am married...


#18

Oil is bought and sold using Anti-Virus software packages?


#19

Supply and demand just like every other market.

No one can predict markets. People trade because they want stuff. Enterprises are either able to fulfill those demands and remain profitable or they don't and are forced to liquidate so that an other enterprising opportunity might be made available for someone else--provided the business in question isn't being protected from competition.

What certain markets decide as a medium of exchange is immaterial to the market in general...but let's assume that the exchange is going to be carried out with something that has value.

1) People must have a demand for the exchange medium itself--the dollar in this case.

2) The exchange medium has to remain relatively stable in value or else people will lose trust in its desirability as an exchange medium.

What this means: It doesn't matter what is traded; oil could be exchanged with tobacco if people had a large enough demand for it and the value remained stable; i.e., people weren't inclined to quit smoking in large proportions.

I gather by your question you have no idea "how the foreign exchange markets work" either since you didn't offer anything but a question.

Do you understand supply and demand?


#20

The fact that Saddam was about to switch to the Euro is among many "coincidences" I'm baffled that people can so easily overlook.