Crude Oil Is About $60 A Barrel
09-20-2004, 09:38 PM
#1
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Crude Oil Is About $60 A Barrel
Every single country in the world must buy oil in american dollars. That means when Japan wants to buy oil, they must exchange money with the US. Since the US dollar is worth less than most money currencies, the US profits 3 billion dollars a day from other countries just from them buying oil and the dollar being cheap. The two main guys who were trying to change oil to be sold in euros are saddaam and this dude named Hugo Chavez. Hugo is the president of Venezuela, he just recently survived a recall funded by the US of A.
09-20-2004, 10:47 PM
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Thanks for the economics lesson but what are you trying to accomplish here?
FYI: The dollar's isn't worth less then most currencies... if it wasn't for the Euro (thanks to the EU) and GBP, the dollar would be the most powerful form of currency. It's one of the only forms of currency that you can still use almost anywhere. You can even use them casually in certain parts of the EU... people would laugh at you in the states for substituting greenbacks.
FYI: The dollar's isn't worth less then most currencies... if it wasn't for the Euro (thanks to the EU) and GBP, the dollar would be the most powerful form of currency. It's one of the only forms of currency that you can still use almost anywhere. You can even use them casually in certain parts of the EU... people would laugh at you in the states for substituting greenbacks.
09-21-2004, 08:05 AM
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Originally Posted by Salty
FYI: The dollar's isn't worth less then most currencies...
So Salty, since you know so much about international exchange rates and the value of the dollar, maybe you can name one currency the US dollar has NOT lost value in relative comparison over the last 4 years.
its harder than you think
09-21-2004, 09:04 AM
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Let me get this straight...the USdollar has been weakening, oil is denominated in US$'s, therefore in other currencies (Euro, Yen, etc.), the price should be improving because of the relative strengthening against the dollar. And you're complaining about this?!? I don't get it...
$40 US/bbl.
= 32.60 Euro at today's exchange rate
= 41.2 Euro at October 2002 exchange rate
Our currency weakening means pricing in Euro's is improving if you hold the cost per bbl constant.
On a side note, the weakening of the dollar seemed fairly emminent to me when Bush started talking of war in Iraq without the UN. I bought some Euro denominated bonds.
$40 US/bbl.
= 32.60 Euro at today's exchange rate
= 41.2 Euro at October 2002 exchange rate
Our currency weakening means pricing in Euro's is improving if you hold the cost per bbl constant.
On a side note, the weakening of the dollar seemed fairly emminent to me when Bush started talking of war in Iraq without the UN. I bought some Euro denominated bonds.
09-21-2004, 09:48 AM
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Originally Posted by psoper
So Salty, since you know so much about international exchange rates and the value of the dollar, maybe you can name one currency the US dollar has NOT lost value in relative comparison over the last 4 years.
its harder than you think
its harder than you think
Why must you always challenge me with petty arguments? Wasn't very hard at all... the first two forms of currency I looked up denied your claim. One was the Mexican Peso and the other was the Japanese Yen... both major markets btw.
I compared historical figures from September 21, 2000 till September 20, 2004 (4 years ago today like you asked)
MXN in 2000= 9.440 pesos for every dollar.
2004= 11.458 pesos for every dollar.
JPY in 2000= 106.5 yen for every dollar.
2004= 109.87 yen for every dollar.
My source was x-rates.com and rate sheets from my local office rates log. Although my rate logs show different numbers in the thousandths area you can be damn sure that they were accurate because of foreign real estate investment. I mainly deal with the bond market and non-foreign real estate investment as a broker.
You don't have to be a super genius to know that the dollar is (and has always been) a worthy contender. If it wasn't for the European Union, the dollar would dwarf another 11 types of currencies which is reason #120234 why the EU formed the Euro. This also explains why Great Britain didn't want anything to do with the EU... they have always had the solid GBP (British pound which has only gained a .12 difference over the dollar in the last 4 years).
09-21-2004, 11:25 AM
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Originally Posted by Salty
Why must you always challenge me with petty arguments?
Mexico and Japan, good work, OK so it wasn't as hard as I had insinuated, but its also worth noting how many have gone the other way.
Thanks for keeping the discussion meaningful.
09-21-2004, 03:44 PM
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Originally Posted by psoper
because I like to make sure you're doing a little work and really having the knowledge to back your claims, that's all.
Do you give your dentist pop quizzes on root canals too?
Last edited by Salty; 09-21-2004 at 03:46 PM.
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