The petro dollar, the real reason the US cares about oil

Discussion in 'Politics, Religion, Social Issues' started by Chew Toy McCoy, Jun 2, 2017.

  1. Chew Toy McCoy macrumors regular

    Chew Toy McCoy

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    #1
    I've been scratching my head forever why I should be concerned when oil prices drop or why we are killing so many people in oil rich countries. The answer: The petro dollar.



    It's unfortunate they used music off the license free conspiracy catalog but I guess it makes it more entertaining.



    The guy is in serious in need of a limiter plugin but it provides another explanation.

    I don't think this is a partisan issue. Those in power won't deny it. They won't even talk about it. The short version: Nixon took us off the gold standard and then in almost mob fashion the US government convinced all oil producing nations all oil must be bought with US dollars. This is largely responsible for US wealth and if the value of oil collapses so does the value of the US dollar.

    Is anybody disputing this?
     
  2. Dmunjal macrumors 65816

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  3. Chew Toy McCoy thread starter macrumors regular

    Chew Toy McCoy

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    #3
    Yeah. Awwwwwkward.
     
  4. jkcerda macrumors 6502

    jkcerda

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    #4
    Indeed it is but liberals still think we are killing muslims for humanitarian reasons and republicans think it's because of terrorist
     
  5. Zenithal macrumors 68040

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    #5
    Turkey's got quite a lot of nice natural resources. With the way things are going in that country, it isn't long before they experience some freedom.
     
  6. Stefan johansson macrumors 65816

    Stefan johansson

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    The reason for US to care about oil,is the American holy trinity.... Ford,General motors and AMC.
    When large companies use dummies to run large countries,it never ends well.
     
  7. Chew Toy McCoy thread starter macrumors regular

    Chew Toy McCoy

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    #7
    No offense, but holy **** did you miss the facts of this thread.

    The "Big 3" are an inconsequential relic at this point. Nobody. Let me repeat, nobody cares about the big 3 anymore.
     
  8. Stefan johansson macrumors 65816

    Stefan johansson

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    #8
    Maybe I missed some,but still,the American v8 still is a huge petrol consumer. In Norway,more Renault twizy are sold than all of the big three together. American industry have to quit using old technology and coal for making profit,it's about time for a change.
     
  9. smallcoffee macrumors 6502a

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    #9
    How about we say instead "all industries" instead of just complaining about the United States like everybody always does. People drive cars in France, and in Norway, and Japan, and China. In fact, why don't the Norwegians stop selling oil? They're contributing to the problem by selling it.
     
  10. Stefan johansson macrumors 65816

    Stefan johansson

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    #10
    The problem is,that America is stuck in old technology,comparing with Norway is stupid,because in Norway,50 percent of vehicles used for short person transportation is powered by electric motors,that get charged with power from hydrodynamic power plants. America is the only country that's stuck in building large cars with huge v8 or v10 engines,most other car companies is in fact moving to hybrids or electric vehicles. And when it comes to Norwegian oil industry,the oil production only generate about 40 percent of what the salmon breeding industry does.
     
  11. smallcoffee macrumors 6502a

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    #11
    I'm not comparing the United States to Norway. Norway is a tiny country without a lot of people, (and they love our American-made Teslas). I'm pointing out that Norway is contributing to the fossil fuel problem by selling oil. They should stop. If prices for gasoline rise, then it'll be more convincing for other people to use transportation other than cars.
     
  12. Desertrat macrumors newbie

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    #12
    In order to protect the buying power of the US dollar, we guaranteed Saudi Arabia's security if they would accept only US dollars for their oil sales. That gave us the label "petro-dollar". It also added to the use of the US dollar as the world's reserve currency, where dollars are bought to settle international trades.

    Ya gotta look back: Once Nixon closed the gold window, Congress began spending like drunken sailors,, "growing" LBJ's Great Society programs. That contributed greatly to the horrendous inflation during the Carter era. The only things that kept the dollar from going down the toilet were the reserve currency/petro-dollar factors of world currencies. Nowadays, of course, the currency wars are part of the globalization efforts to maintain export capabilities.

    Unfortunately for us, the Saudis are now doing deals in other than US dollars.

    Saddam Hussein threatened to sell Iraqi oil for other-than petro-dollars. He's dead. Khaddafi offered the same deal. He's dead. However, we're still pretty much in bed with the Saudis.
     
  13. Stefan johansson macrumors 65816

    Stefan johansson

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    Yes,and a good start would be if rich countries with low fuel taxes raise them to same levels as in north Europe,which is 65-80 percent total taxes (VAT,energy taxes,environment fees). This would probably rise fuel prices in some us states by 400-500 percent.
     
  14. smallcoffee macrumors 6502a

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    Well why do that when Norway could just stop selling oil? Then it doesn't matter how much you raise prices because there won't be any.
     
  15. Stefan johansson macrumors 65816

    Stefan johansson

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    #15
    Higher taxes makes the consumers choose less energy craving power plants,vehicles and other energy using equipment,and that will,if taxes are high enough,make petrol engines obsolete,lets say a petrol price at 500 USD/gallon,would you use petrol engines then?
     
  16. Huntn macrumors G5

    Huntn

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    #16
    What humanitarian reasons?
     
  17. Chew Toy McCoy thread starter macrumors regular

    Chew Toy McCoy

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    #17
    You are still completely missing the point of the thread. Oil is what is keeping the value of the US dollar. Why would US car manufactures contribute to lowering the value of the US dollar by making driving gas fueled cars extremely cost prohibitive? That would be idiotic. Other countries have nothing to lose. The US must first pick it's next US dollar value scam.
     
  18. jkcerda macrumors 6502

    jkcerda

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    #18
    Kaddfy killing "civilians"
    Assad killing "civilians".

    What do terrorist in the M-E look like? Civilians
     
  19. Huntn macrumors G5

    Huntn

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    #19
    So you are saying civilians are terrorists? :rolleyes:
     
  20. A.Goldberg macrumors 68000

    A.Goldberg

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    #20
    You do realize AMC has not existed decades... 29 years to be exact. Chrysler/Dodge/Jeep are currently subsidiaries of FCA- Fiat Chrysler Automobiles. Fiat of course is Italian but the headquarters is in London for tax purposes. Before that is was Diamler Chrysler, Diamler of course is German. FCA has incredibly little influence in the automotive market these days.

    First of electric/hybrid cars aren't necessarily "better for the environment" when you consider the environmental impact of mining the elements and building batteries. Really the most eco-friendly choice is to continue driving an old car, as the energy it takes to build new vehicles is tremendous.

    If you haven't looked at cars lately, most American cars are 4 cylinder, including most crossover SUVs. Some may be 6-cylinder in higher trims or larger SUVs. There are very few V8 cars these days (pretty much limited to sports cars) and only really exist in trucks and truck based SUVs (which aren't exactly a common choice anymore). Even a lot of pickups are using 6cyl engines now. V10 engines are very, very uncommon.

    Actually I'd say Japan is the most behind in terms of engine technology. While the Europeans and Americans have utilized smalller engines supplemented with Turbo or superchargers. Toyota/Lexus, Honda/Nissan, and Nissan/Infiniti are way behind in that regard.
     
  21. cube, Jun 3, 2017
    Last edited: Jun 3, 2017

    cube macrumors G5

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    #21
    Hybrids have smaller batteries that pure electric vehicles, and the utilities might not be very green.

    Like with planes, buying new cars can help getting rid of the oldest ones.
     
  22. Dmunjal macrumors 65816

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    #22
    Electric cars are better for the environment over the life of the car compared to ICE or even hybrids. And they get cleaner every year as the grid gets cleaner.

    http://www.ucsusa.org/clean-vehicles/electric-vehicles/life-cycle-ev-emissions
     
  23. cube, Jun 3, 2017
    Last edited: Jun 3, 2017

    cube macrumors G5

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    #23
    But they are not practical for many people yet, and other countries have more dirty grids.

    Also, if it's a plug-in hybrid it could be well used in pure electric mode most of the time depending on the case.
     
  24. Dmunjal macrumors 65816

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    I agree. But for many, BEVs work. GM, Tesla, and Nissan will all have 200+ mile BEVs at $35K this year.

    By 2020, I believe BEVs will be cheaper than ICE vehicles due to battery costs declining so quickly.
     
  25. cube macrumors G5

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    #25
    But some believe PHEV will be the dominant class overall.

    "Mild hybrids" have barely arrived and it seems it is already considered dirty tech.
     

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