Americas, Do You Want Your 27.8 TRILLION?

Forum posts

• 6 August 2006, 05:49

  No, America cannot tolerate this influx of dollars!!! The visiblity of this action will make the worthless dollar worth even less.

  The high price of oil is what is keeping the U.S. afloat right now. The high price of oil causes all other nations to bleed dollars which in turn causes (forces) them to buy more dollars with their productivity allowing the U.S. to print more dollars without any productivity and allows the dollar to retain parity with it’s previous sister dollars. (That is, the newly printed dollars do not cause inflation in the U.S. system as long as the price of oil is kept high.) Therefore, the U.S. survives to the next stage of cirsis.

  Any additional influx of dollars will simply destroy the system. Destroy as in a permanent destruction.

  Please feel free to ask questions via replies and I will try to elaborate further.

  • 6 August 2006, 17:21

    Ok Phaedra, please elaborate.

    The gold eagle says $50.00 and the silver eagle says $1.00. We are almost 9 trillion in debt. The Chinese and Japanese are keeping us afloat, Bush and Gonzales said the Constitution is outdated and just a piece of paper.

    Alan Greenspan on Gold and Economic Freedom says, "Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one".

    Fiat money with its In God We Trust and backed by bullets should be able to pay off our almost 9 trillion debt. Dump the federal reserve and go back to the gold standard and a new banking system that the Constitution called for.

    The Euro is fiat and it will go down too. If someone wants to sell oil in Euros they will get blown off the map.

    First I heard N. Korea is printing counterfeit monies and now I hear Iran is printing bogus bucks with plates left over from when the Shah was in power.

    A ton of gold is a 1’3" cube. Where are these cubes?

    Our new colorful money should say silver certificate and be backed by same. Nickels and pennies are worth more as scrap than purchasing power. Before 1964 you could buy 4 loaves of bread or 4 gallons of gas with that silver certificate, that silver will still buy the same today. What’s next, the dollar store adding another zero. I think the Phillipine Peso or Pisa is only worth a few cents American so they smuggle it out of the country for its scrap value.

    I don’t understand 27.8 trillion let alone someone who is a billionaire. Fine we have millionaires and they probably deserve it. Once I reach $1,500.00 I owe it to taxes and the energies.

    My guess is the banksters and the petrol, chemical, pharmaceutical companies and going to kill most of us off and then go back to the gold standard.

    Hugo Chavez says oil should be selling for less than $40,00 a barrel.

    My friends think Islam wants our women to wear burkas. Good luck, we have girls gone wild. I think I just read where Italy or France want to open private beaches for Muslim women so they can go enjoy the sun in bathing suits.

    I don’t know Phaedra, please elaborate and confuse me more.

  • 15 November 2007, 05:19

    I am not the original poster nor am I the first reply-person.

    But here is part of the "why high oil prices are keeping the U.S. afloat" explanation.

    Much of the oil that is extracted from the Near East is sold in dollars. A small amount is being sold in Euros and Yen by the Iranians; this amount, for the sake of argument and in reality can be ignored.

    Each of the countries that are purchasing the oil buy contracts on either the London or the New York Petroleum Exchanges. These exchanges require their payments in dollars. This is the first and most important point.

    Secondly, when I say "countries" in the above paragraph, I mean any large user within those countries that are buyers of oil. These users, such as a power plant, for example, must pay in dollars for the oil that they purchase. Again, this is done on the two exchanges that I mentioned above.

    Subordinate to the second point above is that the Arabs states extracting the oil in particular and OPEC in general (by default) have agreed to sell their oil in dollars (as have the other 70 or so oil producing countries who are not part of OPEC.) The current pay band for a barrel of OPEC oil is between $28 and $36. This is what OPEC gets plus a small amount of premium. The rest is put into the account of the oil companies that are extracting the oil, like ExxonMobil, shell, ConocoPhillips, etc.

    A fact to keep in mind is that OPEC member states (as well as the other 70 oil producing countries) are getting a portion of the $95 that a barrel of oil is current price; perhaps, they are getting $40 to $45 per barrel. The oil companies also share in this price as they have agreements with the OPEC states (and other states where they operate.) The remainder is going to the brokers, that is, the exchange members. The buyers of the oil also pay a commission on the exchange to the brokers; and brokers may sell to other brokers who have more buyers than the first broker.

    (The picture can be complex and while I would like to give a fuller picture, I do not want to make it so complex as to make it not understandable.)

    In order for these users to make the purchase they must posses dollars. For example, let us say, that "China Electric" needs to buy oil for their power plant to service the needs of "China Village" — they need to have dollars in their hands to make the purchase. But the users of this power (in "China Village") pay their bills in the Yuan. What happens is that "China Power" will take their Yuans and approach the Chinese government and buy some Notes that are denominated in dollars. (They can, however, come to the U.S. Treasury auctions and purchases U.S. notes; but for the sake of this argument, let us just assume they go to their government .) In this case, the Chinese government comes to these auctions and purchases the notes and adds to the ledger entries the amount of dollars they are holding.

    So, if the oil to the end user was priced at $30 per barrel, (in the above case), the Chinese government would have to have only a third of the dollars reserves (in U.S. notes, for example,) than if the oil were to be at $90.

    Each of the purchasing countries of oil likes to keep a set of dollars in the mix of currencies that it holds so as to meet their country’s need for, say, three months into the future. Therefore, if the price of oil is high then the country (like China, or India, or Togo,) would have to hold more dollars per unit of time per barrel.

    In this way, the U.S. can print more dollars and "sell" it to other countries. Which causes the balance of "goods" of that country against the U.S. "goods". And since we are not producing as much as the other guys, we can make the oil price very high to accomplish the same thing.

    My explanation may not be perfect, but, please do give it a read and ask questions of me or of the other poster who also has the desire to explain the "oil frame work."