Thread: US Engaging In Petrodollar Warfare?

Originally Posted by Woogs

I think most are surprised to see Obama behaving much as Bush did in the ME. He has, in effect, become Bush redux. Who would have thought that such a left leaning candidate would have upped the ante in our aggressive posture in the ME?

It strikes me that candidates, no matter what political stripe they are, change their tune once in office due to the reality of our oil-backed currency. It doesn't have to be that way, but they all choose the bully's way in conducting our foreign policy. The alternative would be to let the dollar float and find its true level of value. No president wants to face that ugly reality so they choose military action to prop up the dollar.

With the world's power structure shifting, this game cannot go on forever.

Top Ten Oil Exporting Countries

* Saudi Arabia (8.73 million barrels per day)
* Russia (6.67)
* Norway (2.91)
* Iran (2.55)
* Venezuela (2.36)
* United Arab Emirates (2.33)
* Kuwait (2.20)
* Nigeria (2.19)
* Mexico (1.80)
* Algeria (1.68


Read more at Suite101: Top Ten Oil Countries: Leading Oil Importers & Exporters | Suite101.com http://daniel-workman.suite101.com/t...#ixzz1eRiPPDpw


Top Ten Oil Importing Countries

* United States (11.8 million barrels per day)
* Japan (5.3)
* China (2.9)
* Germany (2.5)
* South Korea (2.1)
* France (2.0)
* Italy (1.7)
* Spain (1.6)
* India (1.5)
* Taiwan (1.0)

Originally Posted by Margot

Saudi Arabia is China's biggest oil supplier.

Yes, but that doesn't conflict with what I said. I said China was Iran's biggest customer, not that Iran supplied China with most of its oil.

Here is something about China and Iran bypassing the dollar for their oil trade.

http://www.zerohedge.com/news/china-...ian-oil-bourse

Originally Posted by Margot

Top Ten Oil Exporting Countries

* Saudi Arabia (8.73 million barrels per day)
* Russia (6.67)
* Norway (2.91)
* Iran (2.55)
* Venezuela (2.36)
* United Arab Emirates (2.33)
* Kuwait (2.20)
* Nigeria (2.19)
* Mexico (1.80)
* Algeria (1.68


Read more at Suite101: Top Ten Oil Countries: Leading Oil Importers & Exporters | Suite101.com http://daniel-workman.suite101.com/t...#ixzz1eRiPPDpw


Top Ten Oil Importing Countries

* United States (11.8 million barrels per day)
* Japan (5.3)
* China (2.9)
* Germany (2.5)
* South Korea (2.1)
* France (2.0)
* Italy (1.7)
* Spain (1.6)
* India (1.5)
* Taiwan (1.0)

Do you have a comment, Margot, along with the stats you posted? What does this have to do with the US Dollar being the currency of OPEC?

Originally Posted by Woogs

Yes, but that doesn't conflict with what I said. I said China was Iran's biggest customer, not that Iran supplied China with most of its oil.

Here is something about China and Iran bypassing the dollar for their oil trade.

http://www.zerohedge.com/news/china-...ian-oil-bourse

You are making too much of these bourses and the Petrol dollar as motivation for war.



From the FT:

Tehran and Beijing are in talks about using a barter system to exchange Iranian oil for Chinese goods and services, as US financial sanctions have blocked China from paying at least $20bn for oil imports.

The US sanctions against Iran, which make it extremely difficult to conduct dollar-denominated business, mean that China could owe the oil-rich nation as much as $30bn, according to people familiar with the problem.

They said the unpaid oil bills had built up over the past two years and the governments, which are in early-stage talks, were looking at how to “offset” the debt.

Some Iranian officials are growing increasingly angry about the inability of the country’s largest oil customers to pay cash, a problem that has contributed to a shortage of hard currency and has hindered the central bank from defending the Iranian rial, which has been sharply devalued over the past month.

China and India together buy about one-third of Iran’s oil, the country’s economic lifeblood. China’s oil imports from Iran have risen 49 per cent this year, according to Reuters.

Originally Posted by Margot

You are making too much of these bourses and the Petrol dollar as motivation for war.



From the FT:

Tehran and Beijing are in talks about using a barter system to exchange Iranian oil for Chinese goods and services, as US financial sanctions have blocked China from paying at least $20bn for oil imports.

The US sanctions against Iran, which make it extremely difficult to conduct dollar-denominated business, mean that China could owe the oil-rich nation as much as $30bn, according to people familiar with the problem.

They said the unpaid oil bills had built up over the past two years and the governments, which are in early-stage talks, were looking at how to “offset” the debt.

Some Iranian officials are growing increasingly angry about the inability of the country’s largest oil customers to pay cash, a problem that has contributed to a shortage of hard currency and has hindered the central bank from defending the Iranian rial, which has been sharply devalued over the past month.

China and India together buy about one-third of Iran’s oil, the country’s economic lifeblood. China’s oil imports from Iran have risen 49 per cent this year, according to Reuters.

And I would say you're not seeing the whole picture. Look at Iraq and Libya if you don't think we will go to war to protect our dollar. It's detailed in the OP.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From 7-24-2011

Iran is currently China's third largest supplier of crude oil, providing China with nearly one million barrels per day." Still, the perceived provocation to Uncle Sam should China go ahead and slap America in the face by accepting the existence of the Kish exchange, would echo around the world. Which is why many don't think much if anything will happen. Until today, that is: according to the FT, China has decided to commence an barter system in which Iranian oil is exchanged directly for Chinese exports. The net result: not only a slap for the US Dollar, but implicitly for all fiat intermediaries, as Iran and China are about to prove that when it comes to exchanging hard resources for critical Chinese goods and services, the world's so called reserve currency is completely irrelevant. The implications of this are momentous, especially for US debt, whose indomitability is only predicated upon the continued acceptance of the currency it backs as a global reserve. If China is now openly admitting to the world that it does not need US monetary intermediation, and by implication, the "debt" backing said intermediation, what then? And who will follow China next?

http://www.zerohedge.com/news/china-...ian-oil-bourse

Originally Posted by Woogs

Sad doesn't even begin to describe it. America seems to be telling the world, "Play by our rules or else!!"

Very dangerous.

America is a super power. Its what we do...

Originally Posted by BestViewedWithCable

America is a super power. Its what we do...

Are you fine with that?

The fact is that other countries are finding ways around the dollar's dominance. No matter what strong arm tactics we use, the game is about up.

Originally Posted by Woogs

Are you fine with that?

The fact is that other countries are finding ways around the dollar's dominance. No matter what strong arm tactics we use, the game is about up.

Yeah, for the most part Im down with that, Im an American.

If you wanna blame someone, blame Obama. Hes the one who started an illegal war in Libya to kill its leader for oil....

Unfortunately, we've engaged in this sort of thing for a long time.

It's just one of many reasons we need to get away from foreign oil and pay down our debts.

Originally Posted by Woogs

And I would say you're not seeing the whole picture. Look at Iraq and Libya if you don't think we will go to war to protect our dollar. It's detailed in the OP.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Iran is currently China's third largest supplier of crude oil, providing China with nearly one million barrels per day." Still, the perceived provocation to Uncle Sam should China go ahead and slap America in the face by accepting the existence of the Kish exchange, would echo around the world. Which is why many don't think much if anything will happen.

Until today, that is: according to the FT, China has decided to commence an barter system in which Iranian oil is exchanged directly for Chinese exports. The net result: not only a slap for the US Dollar, but implicitly for all fiat intermediaries, as Iran and China are about to prove that when it comes to exchanging hard resources for critical Chinese goods and services, the world's so called reserve currency is completely irrelevant. The implications of this are momentous, especially for US debt, whose indomitability is only predicated upon the continued acceptance of the currency it backs as a global reserve.

If China is now openly admitting to the world that it does not need US monetary intermediation, and by implication, the "debt" backing said intermediation, what then? And who will follow China next?

http://www.zerohedge.com/news/china-...ian-oil-bourse

I realize that it is detailed in the OP..

http://www.gulf-times.com/site/topic...7&parent_id=56


“Only two of the world’s oil exporters don’t have a dollar-pegged currency: Norway and Canada. Kuwait has already moved to a basket of currencies.”


Bloom said that there was no reason why Qatar could not do the same as China which uses a basket but does not disclose what the basket contains.