Collapse of the US Petrodollar Looming

[Robbien]

The announcement by President Putin of a Russian bourse trading oil and gas in Roubles threatens the stability of the US Dollar far more than Iran's bourse alone would do, and continues the slide in relations between the old Cold War foes.

In his annual State of the Nation address to both houses of parliament on 10 May 2006, Novosti reports President Putin said that work on making the Rouble an internationally convertible currency would be completed by 1 July 2006, six months ahead of schedule. To promote the currency, he announced that an oil and gas stock exchange will be created in Russia, that would trade in Roubles.

. . .

Russia's oil exports represent 15.2% of the world's export trade in oil, making it a much more significant player than Iran, with 5.8% of export volumes. Russia also produces 25.8% of the world's gas exports, while Iran is still only entering this market as an exporter.

GlobeAndMail.com is reporting that President Chavez of Venezuela is considering following Iran's move towards pricing oil in Euros. Venezuela has 5.4% of the export market, although since the bulk of his country's exports are of heavy oil to the US, where it needs special facilities to process it, it would be a very brave or foolhardy President that told the US to buy its oil in Euros, or else ... Nevertheless, you can see the attraction for any country wanting to apply some pressure on the world's superpower. And where Venezuela leads, Bolivia may not be far behind. You can see how this could quickly get out of control.

While the Iranians have been suffering numerous delays in implementing their bourse, Russia could have their oil market up and running almost as soon as their currency market is ready to take on the work load, which might only be a few months away.

http://www.uruknet.info/?p=m23430&l=i&size=1&hd=0

[Vexatious Ape]

1. Whats the worst

thing that could come out of all this?

[ChairmanAgnostic]

4. what do you think cheney was doing, insulting Russia? He wants to attack

them as well.
these guys have no sense of responsibility, just greed.

[Robbien]

6. The article does go into details

In order to counter the reduced demand for US Dollars, the standard control lever available to the Federal Reserve is to increase interest rates, over and above what it was going to be doing. This has the usual unwelcome consequences of dampening the US economy, and squeezing people with mortgages, which in turn leads to rising wages, falling house prices and a slump in the construction industry.

At the same time, lower demand for Dollars will weaken its conversion rate, making imports more expensive. With rising wages, fuel bills and debt-servicing feeding through into prices for home-produced goods, the stage is set for either an inflationary spiral or a recession. In the short term, the inflationary route always looks to be the less painful, but it can only lead eventually to a crisis of confidence in US Dollars, when traders abandon the paper and rush for the exit.

[HysteryDiagnosis]

2. Flash, pockets of Alqaida resistance thought to be hiding in

southern parts of the former Soviet Union. Military action considered highly likely, Moscow may need to be "freed" in order to rout the terrorists. Story at 11.

[cassiepriam]

7. Bingo, that's next. Iraqi pipelines are a bit slow these days....

time to move on.

[BrklynLiberal]

3. So all of Dimson's efforts in the Middle EAst were for naught?

[LaPera]

5. And with a housing bubble burst and China holding our debt, along with

the petro-money changing away from the dollar...It's only a matter of time before the rest of the world wants to put BushCo's superpower in it's place, and we will all be the ones paying the price...not the fucks stealing our treasury and everything else in sight.

I guess that's why Halliburton is building massive prisons all over the country.

[cassiepriam]

8. You got it. They will laugh all the way to bank, we will pay, big time.

After all, they have the $8 Trillion they stole from the US treasury.
What are we going to have??

[cliss]

9. Well, it appears that a race is going on.

Everybody wants to dump the dollar. But who will be first? We have Iran with its upcoming Bourse, Hugo Chavez just said he wants to start trading in Euros. Now Russia is planning to do so.

China said recently that it needs to "diversify its currency holdings = it needs to dump some dollars.

I'm placing my bets on the Red Dog, #9. He's bigger than the rest of them. He's got nice legs, a very antsy disposition. Besides, he was just bitten by the White Dog #13 who's about to stumble and fall out on the track.

Russia supplies a lot of oil and gas to Europe. Cheney just put out his tower last week when he visited Kazakhstan. Cheney is moving awfully close to Putin's home turf, and to boot he insulted Mr. Putin. Enough is enough.

Putin certainly does have the power to kick Dick square in the balls. I wonder if he'll do it?

[bemildred]

10. Well, that's the thing about pump and dump.

It matters a lot who gets to go first ...

[many a good man]

11. Two options

Either the world agrees on a new monetary system that is to our liking or WWIII breaks out with a vengeance in the oil fields of Eurasia. Who in their right mind would choose the latter?