Iran To Stop Selling Oil for Dollars - Page 5

Gladiator · 02-16-08, 08:05 AM

Dear American,

Counterfeiting by foreign agents is done secretly., and not an operation that lends itself to discovery. I have seen other references to counterfeiting through CIA approval, but this is often not done throught he top levels, except by a wink and a nod.

Goldenboy219 · 02-16-08, 11:39 AM

I could be wrong, but i believe the majority of money created in banks, not through authorizations from the fed.

Say i need $100k to buy a house, and i have good credit along with $100k of my own to put up/down. If approved, the bank will then issue me around $100k (after various fee's) due to a bank being a FDIC lender...

Thats where the majority of money is created, and with artificially low interest rates, thats how a majority of bad loans are conceived. Think about it this way. After a bank loans a person a large sum of money to make a "big purchase", and they default, whatever the bank receives less then the initial investment is an inflation of the dollar.

dixon76710 · 02-16-08, 03:17 PM

Quote:

Originally Posted by Gladiator

Dear Dixon,

I am having trouble following your posts, as to understand your position, from which yhou are debating. If you are able to summarize your positions, as they oppose my views, I would be interested in your summaries.

A constant exchange rate with the Euro is not the goal of the federal reserve. The exchange rate is set by the market. The value in exchange for Euros has declined because the market dictates that it must.

donsutherland1 · 07-06-08, 12:03 PM

Last autumn, both Iran and Venezuela, not solely for economic reasons, argued for a delinking of crude oil and the eroding U.S. dollar. That did not happen.

Nevertheless, in the absence of fiscal and monetary policy decisions that are conducive to strengthening the U.S. dollar, the United Arab Emirates, a member of the six-nation Gulf Cooperation Council (GCC) is seeking to have the GCC nations depeg their currencies to the U.S. dollar.

CNBC reported, "A newspaper in the United Arab Emirates...reported Sunday that the UAE is calling on all six Gulf Cooperation Council member states to 'rethink' their monetary policy amid soaring inflation in the oil-rich region." The account added, that the UAE "is lobbying neighboring countries to depeg their currencies from the U.S. dollar to curb inflation."

The depreciating dollar has helped amplify inflationary pressures among states that have pegged their currencies to the dollar, as a weaker dollar makes imports from states with currencies that are growing stronger with respect to the dollar more expensive.

For now and likely the foreseeable future, the U.S. dollar remains the world's reserve currency. But small developments along the lines of what the UAE is advocating and an emerging bear market in U.S. Treasury securities on account of their negative real yield could chip away at that position in the longer-run.