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warcy

Gold at all-time high

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8 hours ago, warcy said:

Why must people buy oil using US dollar? Can't they just buy using the currency of the seller? eg. Saudi Arabian money

 

What do you mean by world reserve currency?

Hahah go ask Saddam Hussein how that worked out for him

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11 hours ago, warcy said:

Why must people buy oil using US dollar? Can't they just buy using the currency of the seller? eg. Saudi Arabian money

 

What do you mean by world reserve currency?

In the early 70s Henry Kissinger went to Saudi Arabia and made a deal: in exchange for US protection, Saudi Arabia, and by extension all its oil cartel neighbors, would sell their oil only in dollars.

 

It has worked quite well for both sides, since the Gulf feudal regimes are still in place, and the dollar is still the currency of reference.

 

Those who tried to sell their oil in other currencies are either not here anymore, Saddam and Gaddafi, or under tremendous pressure, like Iran or Venezuela.

 

The US is acting exactly like the mafia, on a much larger scale, using protection racket to keep under its control vast areas of the world.

 

The dollar is the world reserve currency because, beyond oil, many other commodities, starting with gold, are bought and sold using dollars.

 

Think that even Alibaba, a Chinese corporation selling Chinese products, charges its customers in USD, not in Yuans.

 

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13 hours ago, warcy said:

Why must people buy oil using US dollar? Can't they just buy using the currency of the seller? eg. Saudi Arabian money

 

What do you mean by world reserve currency?

Here is an interesting article with lots of data regarding gold and the currencies... 

 

https://www.voimagold.com/insight/gold-price-crosses-2-067-us-dollar-devalues-by-99-against-gold-in-100-years

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6 hours ago, Brunolem said:

In the early 70s Henry Kissinger went to Saudi Arabia and made a deal: in exchange for US protection, Saudi Arabia, and by extension all its oil cartel neighbors, would sell their oil only in dollars.

 

It has worked quite well for both sides, since the Gulf feudal regimes are still in place, and the dollar is still the currency of reference.

 

Those who tried to sell their oil in other currencies are either not here anymore, Saddam and Gaddafi, or under tremendous pressure, like Iran or Venezuela.

 

The US is acting exactly like the mafia, on a much larger scale, using protection racket to keep under its control vast areas of the world.

 

The dollar is the world reserve currency because, beyond oil, many other commodities, starting with gold, are bought and sold using dollars.

 

Think that even Alibaba, a Chinese corporation selling Chinese products, charges its customers in USD, not in Yuans.

 

It's really quite interesting because in the last 5 years Russia and China have been working towards a trade agreement that will exclude the US dollar. This could have huge ramifications regarding their reserve currency status. These uncertainties tend to make people very nervous and that is probably another driver for gold. 

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4 hours ago, AverageBloke said:

It's really quite interesting because in the last 5 years Russia and China have been working towards a trade agreement that will exclude the US dollar. This could have huge ramifications regarding their reserve currency status. These uncertainties tend to make people very nervous and that is probably another driver for gold. 

 

I thought Russia has huge amount of oil, why do people need to buy from the Arab countries?

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12 hours ago, warcy said:

 

I thought Russia has huge amount of oil, why do people need to buy from the Arab countries?

Oil buyers want to be as diversified as possible, so as not be dependent on one or two countries for their energy supplies.

 

So they buy from both Russia and the Middle East, and a few others...

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