Iraq and the petro-dollar

Discussion in 'Politics, Religion, Social Issues' started by diamond geezer, Aug 8, 2005.

  1. diamond geezer macrumors regular

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    Jan 26, 2004
    #1
    An interesting article

    link

     
  2. miloblithe macrumors 68020

    miloblithe

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    #2
    That is really depressing, and scary. Invading Iran is going to be a very very big mess.
     
  3. skunk macrumors G4

    skunk

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    #3
    Interesting times...
     
  4. anonymous161 macrumors 6502

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    #4
    Oil is the new gold.
    I would be more impressed if our gov't was taking the money its devoting to terrorizing other people and focused it on developing an alternative fuel for the future beyond oil. Then you could put the dollar back on top as the dominate energy currency. I guess that would make too much sense.
     
  5. Desertrat macrumors newbie

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    Terlingua, Texas
    #5
    Guys like Bill Bonner of "The Daily Reckoning" and others of the contrarian-investor philosophy have been talking about petro-euros for a couple of years, already. What with "consumeritis" and federal deficits, one can readily see why other countries might want to be paid in euros for their oil instead of dollars.

    Trouble is, you can find some pretty astute people who don't believe that euro supremacy is a long-term deal. They expect more of a state of parity within a few years.

    And then you have articles like this one, where the numbers indicate the US isn't all that bad off, from the standpoint of a strong economy:

    http://www.fullermoney.com/content/2005-08-05/walkaroundthewroldeconomyrichardfisher.pdf

    To a great extent we've brought energy woes onto ourselves. Via environmental regulations, we're not drilling into formations with oil and gas. We're out of the refinery consturction business, and our present capacity is overloaded. I strongly agree that environmental protection is a Good Thing, but the morality-problem is that our imported oil comes at the expense of somebody else's environmental degradation. TANSTAAFL.

    'Rat
     
  6. zimv20 macrumors 601

    zimv20

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    toronto
    #6
    how about we look at our demand, too? when did conservation become such a dirty word -- when the iran hostages were returned?
     
  7. Ugg macrumors 68000

    Ugg

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    #7
    The Euro is still proving itself but I've no doubt that its long term viability is secured as long as they maintain a fiscally conservative economic policy. Something the US seems to have little grasp of. Why should non-American buyers and sellers of oil be penalized for American currency fluctuations and why should they support America's inability to spend within its means?

    An economy with a zero savings rate and a bubble about to burst housing market is not strong. Fortress America also only increases the cost of doing business in the US. Couple that with astronomical health care costs and the long term viability of the US economy is dire indeed. Oh, that's right, we're also the largest consumer of oil, with no end in sight to our wasteful ways.

    When was the last oil refinery proposal on the boards? It sounds to me more like the oil companies realize all too well that any increased capacity would only lower their profits.

    bush light in Florida got his way when it came to drilling off the coast, yet Montana and other less important areas in the US are being overrun by drillers. I call BS on your environmental assessment. That may have held true in the 80s but now it's politics at its worst.
     
  8. diamond geezer thread starter macrumors regular

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    Jan 26, 2004
    #8
    You don't keep your military complex running and making money by investing in alternative energies.

    How many ex politicians leave "public service" and join solar energy companies?
     
  9. skunk macrumors G4

    skunk

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    #9
    More to the point, how many execs in solar energy companies become politicians?
     
  10. Desertrat macrumors newbie

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    Terlingua, Texas
    #10
    As far as electricity, I saw a recent article which said that (IIRC) in Washington, some 450 megs of wind generators had recently been completed. As mentioned before, there are over 500 units northeast of Ft. Stockton, Texas, although I've not seen data on the output of the individual units.

    Even if everybody who didn't actually need a large vehicle went to some equivalent of a Prius, we'd still need a lot of crude oil. It's that half of the barrel that is used for all that other stuff, remember? We'd import less refined product, of course. Plastics in one form or another is a major export item.

    A helluva lot of money is being spent on "alternative energy", whether automotive or for electricity. At some point "more money" is sorta like the old joke that if one woman can have a baby in nine months, nine women oughta be able to have a baby in one month.

    As far as oil companies, I see that Exxon has a P/E of 12.1:1, or an 8% profit rate. The historical average of all stocks is around 14:1 to 15:1, so this temporary "high" is nothing extraordinary. It's just another indicator that commodities are what to buy, for now and the next several years.

    'Rat
     

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