Like the illusion of Wall Street, with its vast and powerful investment banks, now shuttered, China too is an illusion perpetuated by the Globalists that gave us the 15,000 mile Caesar salad, poisoned cat food and lead based paint on babies' pacifiers. Like the illusion that money would come from thin air to always push housing prices higher, China has spent a generation pursuing its illusion. Pursuing an unattainable dream to be like the West, while 6000 years of its carefully shepherded top soil blows into the sea.
Posted: Mon May 23, 2005 2:58 am Post subject: Falling Dollar vs Rising Oil Prices
Theoretically tell me if this is right:
Say the U.S. dollar falls 50% compared to other currencies, due to say the housing market collapse, bank collapse, foreigners selling our debt, etc.
Say then that the price of a Barrel of Oil which is tagged to the U.S. dollar goes up 50% to $75.
Wouldn't the U.S. be the only country affected by the rising oil price in this scenario?? Basically gas prices would stay unchanged all over the world except in the U.S. right?
So the U.S. would be affected more by the rising price of oil than any other country in the world, especially if the dollar collapsed, right?
Joined: May 02, 2005 Posts: 3542 Location: On the ball
Posted: Mon May 23, 2005 3:47 am Post subject:
If it were so, it would certainly reduce consumption in the US without equivalent impact on the rest of the world. Unfortunately there are far too many other factors to consider.
Reduction of US consumption to half what it is today without radically impacting world markets would be an awesome achievment, in my view. Getting there from here, however, looks next to impossible, except through "demand destruction".
Maybe a substantial increase in oil use tax would do the job? I just don't know, macro economics are just to complex for my "widdle bitty brain" to envelop. In fact, most economists and analysts seem equally confused, so I guess I am in good company. _________________ "It's still all about energy!"
If I'm not mistaken, most central banks are heavily invested in Dollars. Our crash will directly affect their currencies. Ultimately, the crash will be felt hardest here, especially with the hedging of the other major players.
Hell, the rest of the world may just take the dollar out of the equation. Iran is planning to link their price per barrel to Euros very soon. _________________ remember-we don't inherit the earth from our parents, we lease it from our children
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